Which of the following is an example of a natural hazard

Aceable Agent: California Real Estate Practices - Practice

Assessment Flashcards Which of the following is an example of a natural hazard

that requires disclosure by the seller?A: annual snowfall

averagesB: proximity to a Mello-Roos districtC: proximity to

an earthquake fault lineD: average temperature

C: proximity to an earthquake fault line

Longtime Realtor Leo just started at a new brokerage and is excited to list properties as soon as possible.Unfortunately, there is a delay with getting new signs made for him, and he decides in the meantime to just use his old signs with his former broker's name. Is this ethical? Why or

why not?A: Yes, this is ethical; any "for sale" sign can be

placed outside of a listed property.B: Yes, this is ethical as

long as Leo's name is on the signs.C: No, this is unethical

because Leo did not get his former broker's permission.D:

No, this is unethical because it is not truthful advertising.

D: No, this is unethical because it is not truthful advertising.

As part of an appraisal, real estate appraiser Jolene needs to consider the property's highest and best use. Which of

the following does NOT need to be considered?A: size of

the lotB: zoning regulationsC: property sales historyD: deed restrictions

C: property sales history

An apartment building has a PGI of $480,000 and a vacancy rate of 5%. It generates $3,000 in other income annually. Calculate the EGI.A: $456,000B: $24,000C:

$459,000D: $507,000

C: $459,000

A buyer is worried the home they're buying in cash isn't worth what they're paying. How can they be sure the home is worth what they think it is (or if not, be able to get out of

the contract)?A: include an appraisal contingency in the

contractB: include a financing amendmentC: make the

contract a "subject to" agreementD: include an inspection

contingency in the contract

A: include an appraisal contingency in the contract

Which of these is a breach of contract legal remedy that requires the defaulting party to perform in accordance with the terms of the contract?A: specific performanceB: liquidated damagesC: rescissionD: novation

A: specific performance

When a worker controls how they accomplish their work, the worker is likely a(n):A: supervisorB: contract employeeC: independent contractorD: employee

C: independent contractor

Fernando is a listing agent. He receives an offer that he thinks his client will reject for being too low. What should

Fernando do?A: Fernando should still present the offer.

There are no exceptions to the "present all offers" rule.B:

Fernando should not present the offer. Even though he and his client have not explicitly talked about low offers,

Fernando can trust his intuition.C: Fernando should only

present the offer if there aren't any better options.D:

Fernando should present the offer unless his client has explicitly told him not to present offers below a certain price.

D: Fernando should present the offer unless his client has

explicitly told him not to present offers below a certain price.

Condoleezza loses a large portion of her property due to a sudden flood. Though she loses a portion of her land area, she does not lose title to her land. What term describes this sudden loss of land?A: accessionB: avulsionC: relictionD: accretion

B: avulsion

Even if the statute of limitations has not expired, a court may rule that a plaintiff has taken too long to make a claim against the other party. Under what legal concept would the court do this?A: the statute of fraudsB: accord and satisfactionC: the doctrine of lachesD: the parol evidence rule

C: the doctrine of laches

Agency agreement contracts are governed by:A: agency law and contract lawB: state law onlyC: contract law onlyD: agency law only

A: agency law and contract law

Generally speaking, when a market's supply increases, you should expect the price to do what?A: increaseB: Supply doesn't influence price.C: decreaseD: stay static

C: decrease

Agent Laura completed a CMA on a property her client was interested in making an offer on. What kind of value was Laura attempting to determine?A: market valueB: actual cash valueC: assessed valueD: appraised value

A: market value

What is a purchase contract in which the buyer pays the seller for the property in multiple installments for a predetermined length of time, and the seller holds the deed

and title until the property has been fully paid for called?A:

contract for deedB: lease-option agreementC: option to

purchase contractD: right of first refusal

A: contract for deed

Tom represents the buyer per their buyer-broker agreement. However, he earns his compensation from the

seller.Who is Tom in an agency relationship with?A: both

the buyer and the sellerB: the buyer onlyC: neither the

buyer nor the sellerD: the seller only

B: the buyer only

Enrique's lease term starts on November 1st and will expire on November 1st of the following year. He does not have to give his landlord notice to terminate the lease at the end of the term.What kind of leasehold estate does Enrique have?A: estate for yearsB: estate at willC: estate for

monthsD: periodic estate

A: estate for years

In the context of understanding contracts, what is the significance of the word "valuable" in the phrase "valuable

consideration"?A: It implies that the recipient got the better

of the deal.B: It is language that should be considered a

red flag in the agreement.C: It is rather meaningless since

it is assumed.D: It implies that the consideration given is

appropriate for what is being offered in exchange.

D: It implies that the consideration given is appropriate for

what is being offered in exchange.

Which form do sellers use to disclose their property's

location in a flood hazard area?A: Environmental Hazards

Disclosure Statement (EHD)B: Flood Area Disclosure

Statement (FAD)C: Natural Hazards Disclosure Statement

(NHD)D: Real Estate Flood Risk Statement (REFR)

C: Natural Hazards Disclosure Statement (NHD)

Which of these is a building's total possible gross income minus the vacancy costs?A: net operating incomeB: effective gross incomeC: potential gross incomeD: cap rate

B: effective gross income

Buyer Bert can't believe that Seller Sam has had a last-second change of heart about entering into an agreement to sell his home to Bert. Sam has offered to refund Bert's earnest money and even pay him something in acknowledgment of Bert's inconvenience and disappointment, but Bert's not having it. He wants Sam's house.Choose the remedy for breach of contract that Bert will most likely take.A: initiate rescissionB: accept compensatory damagesC: demand specific performanceD: settle for liquidated damages

C: demand specific performance

A building sold for $500,000 and has a net operating

income of $25,000. What is the cap rate of the sale?A:

5%B: 20%C: 2%D: 10%

A: 5%

Up until what time can a buyer rescind an offer?A:

anytimeB: neverC: until the delivery of the notice of

acceptanceD: until the offer has been signed by the other

party

C: until the delivery of the notice of acceptance

Who determines the listing price for a property?A: the

sellerB: the buyerC: the buyer's agentD: the listing agent

A: the seller

Which of these is an example of a latent defect?A: a large,

visible crack in the foundationB: visible mold growth in the

bathroomC: a broken light switchD: asbestos insulation that is completely hidden behind drywall

D: asbestos insulation that is completely hidden behind

drywall Broker Anderson just found out that his client is suing him for breach of contract because of the way their agency agreement was terminated.Which of these is the most likely

cause for the termination of the agency agreement?A:

mutual terminationB: the client revoking the contractC: the

broker renouncing the agreementD: extinction of subject

matter

C: the broker renouncing the agreement

When real estate costs more due to factors such as an increase in construction costs, fewer people are willing to buy. This decrease in willingness to buy is said to be a decrease in:A: demandB: supplyC: interest ratesD: money supply

A: demand

Marnie is worried about the condition of the older home she's buying. What's the best way for her to ensure the