Revei: Real Estate Principles California Flashcards

Revei: Real Estate Principles (California) Flashcards

Real property is assessed:a. every ten years.b. each time it

is sold.c. at 100% of its selling price or market value, whichever is higher.d. both b and c are correct.

• both b and c are correct.

The Federal U.S. Fair Housing Act of 1968 that requires equal housing posters to be displayed at real estate offices

and at lending institutions is also generally known as the:a.

Federal Civil Rights Act of 1968.b. California Housing Financial Discrimination Act of 1977.c. Unruh Civil Rights Act (state law).d. none of the above.

• Federal Civil Rights Act of 1968.

An on-site residential manager:a. is a tenant of the

property.b. handles tenants' complaints.c. maintains the premises.d. all of the above.

• all of the above.

Escrows base monthly prorations on how many days?a.28b. 29c. 30d. 31

• 30

A zoning act that requires disclosure of a property's vicinity

to hazardous earthquake faults is known as the:a. San

Andreas State Earthquake Act.b. California Coastal Act.c.Alquist-Priolo Special Studies Zones Act.d. none of the above.

• Alquist-Priolo Special Studies Zones Act.

Depreciation for tax purposes is a yearly tax deduction on the taxpayer's income tax form. Which of the following is NOT acceptable for depreciation?a. Your office buildingb.Your apartment buildingc. Your shopping centerd. Your owner-occupied residence

• Your owner-occupied residence

Installment sales and exchanges have as their primary

purpose:a. tax postponement.b. passing property to heirs.c.

tax deduction.d. none of the above.

• tax postponement.

A contract that is binding and enforceable in a court of law

is said to be:a. proprietary.b. illusory.c. valid.d. all of the

above.

• valid.

Determining the present value of a property based upon its

anticipated future income and expenses is called the:a.

capitalization or income approach.b. replacement cost method.c. market data method.d. comparison approach.

• capitalization or income approach.

Who makes an offer on a property that is for sale?a.Seller's agentb. Offeree (Seller)c. Offeror (Buyer)d. All of the above

• Offeror (Buyer)

In a sale-leaseback, the original property owner:a. evicts

his or her tenant.b. loses money.c. becomes the lessee.d.none of the above.

• becomes the lessee.

CC&Rs refer to:a. conditions, control, and residuals.b.

covenants, communities, and residents.c. construction, conditions, and restrictions.d. covenants, conditions, and restrictions.

• covenants, conditions, and restrictions.

Misuse of the real estate appraisal report or coercion of the

appraiser are now:a. misdemeanors.b. federal felonies.c.

infractions.d. none of the above.

• federal felonies.

A counter offer:a. terminates the prior offer.b. is a new

offer.c. changes the terms of the prior offer.d. all of the above.

• all of the above.

Which of the following are NOT institutional lenders?a.Banksb. Private individualsc. Insurance companiesd.Mutual savings banks

• Private individuals

An ownership interest in real property that only exists for the life of any designated person or persons (often the

grantee) is called a(n):a. life estate.b. estate in waiting.c.

less-than-freehold estate.d. estate in remainder.

• life estate.

A broker who mixes personal funds with his or her

principal's funds is guilty of:a. false promise.b.

commingling.c. divided agency.d. conversion.

• commingling.

The difference between property taxes and special

assessments is that:a. special assessments are levied for

the cost of specific local improvements, while property tax revenue goes into the general fund.b. assessment liens can only be levied by local improvement districts.c.foreclosure of assessment liens can only be achieved in court foreclosure.d. assessment liens are always subordinate to property tax liens.

• special assessments are levied for the cost of specific

local improvements, while property tax revenue goes into the general fund.A person who is authorized by the Secretary of State to witness the acknowledgment of documents is known as

a(n):a. administrator.b. librarian.c. document doctor.d.

notary public.

• notary public.

The California Department of Veteran's Affairs loan

program is commonly known as the:a. CalVet Program.b.

FHA.c. California VFW Program.d. VA.

• CalVet Program.

The area of a rectangular lot that is 50 feet wide by 100

feet deep is:a. 2,500 sq. ft.b. 500 sq. ft.c. 5,000 sq. ft.d.

50,000 sq. ft.

• 5,000 sq. ft.

You are a landlord who discovers that one of your tenants is having new carpet installed in his apartment without your

consent. To protect yourself, you should file a(n):a. cease

and desist order.b. mechanic's lien.c. unlawful detainer action.d. notice of non-responsibility.

• notice of non-responsibility.

Which of the following is TRUE concerning negotiable instruments?a. They are easily transferable from one

person to another.b. Promissory notes are considered negotiable instruments.c. The most common example of a negotiable instrument is a personal check.d. All of the above.

• All of the above.

The seller must provide the buyer of a condominium with:a.

the CC&Rs.b. the bylaws.c. a copy of the most recent financial statement.d. all of the above.

• all of the above.

The market data method is the most common approach

for:a. houses.b. condos.c. vacant land.d. all of the above.

• all of the above.

When prices rise due to shortages of available properties, it

is known as a:a. buyer's market.b. seller's market.c.

lender's market.d. deflationary market.

• seller's market.

Owner A tells B that he will pay him $1,000 to paint his

house. B agrees. This is an example of a:a. unilateral

contract.b. bilateral contract.c. completed performance.d.warranty contract.

• bilateral contract.

Which of the following is FALSE concerning a grant deed?a. The key word is "grant."b. It is signed only by the grantee.c. It is considered executed when signed by the grantor.d. Grant deeds contain implied warranties.

• It is signed only by the grantee.

What is 395,340 square feet of area minus an area of 110 x 30 feet?a. 3,300 square feetb. 330,000 square feetc.392,040 square feetd. 398,640 square feet

• 392,040 square feet

What is the legal process of making an instrument an official part of the county records?a. Acknowledgmentb.Recordingc. Constructive noticed. All of the above

• Recording

The Real Estate Commissioner enforces provisions of

the:a. Civil Law.b. Commercial Law.c. Property Law.d. Real

Estate Law.

• Real Estate Law.

When a married couple (filing jointly) sells their residence after living in it for two of the last five years, they don't have

to pay capital gains for a profit of up to:a. $25,000.b.

$120,000.c. $500,000.d. $700,000.

• $500,000.

Income-producing property owners can deduct which of the following from their federal income taxes?a. Property taxesb. Prepayment penaltiesc. Depreciation of building improvementsd. All of the above

• All of the above

What must a potential listing agent do if a seller requires the agent to discriminate?a. Discriminateb. Charge a higher commissionc. Refuse the listingd. Make a citizen's arrest

• Refuse the listing

Which of the following is NOT a method to establish a real estate broker agency?a. Secret ballotb. Implied agreementc. Express agreementd. Estoppel

• Secret ballot

A month-to-month rental agreement is usually a:a. tenancy

for years.b. periodic tenancy.c. tenancy at will.d. tenancy at sufferance.

• periodic tenancy.

If the "exact" terms of the listing agreement are met, the

listing broker is entitled to a commission, even if the:a.

buyer is legally incompetent.b. broker is not licensed.c.