California Real Estate Principles - Questions and Answers. Update 2022/2023

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California Real Estate Principles - Questions and Answers. Update 2022/2023 (1) 1. The Real Estate Law is found in the a. Licensing Code b. Business and Professions Code c. Health and Safety... Code d. Corporations Code - ✔✔Business and Professions Code (1) 2. The Real Estate Commissioner reports to the a. California Bureau of Real Estate b. governor c. Real Estate Advisory Commission d. legislature - ✔✔governor (1) 3. Salesperson Sam owns 25% of the outstanding shares of Rollo Realty, Inc., and broker Barbara Rollo owns the remaining shares. This division of ownership is? a. acceptable b. mandated c. discouraged d. prohibited - ✔✔acceptable (1) 4. Salesperson Sam is part owner of Rollo Realty, Inc. In the broker's absence, Sam frequently reviews the work of sales associates. This is? a. acceptable b. mandated c. discouraged d. prohibited - ✔✔prohibited (1) 5. A real estate business that is a partnership can have more than one office location, provided a. a broker partner obtains an additional license for each location b. all partners are real estate licensees c. there is a designated broker-officer d. there is at least one partner at each location - ✔✔a broker partner obtains an additional license for each location (1) 6. The sale or transfer of goods ordinarily held for sale in the course of business is governed in California by the? a. Business Opportunity Code b. Commercial Transfer Law c. Uniform Commercial Code d. Real Estate Law - ✔✔Uniform Commercial Code (1) 7. Todd, an officer of Ajax Corporation and not a real estate licensee, successfully negotiated the purchase of the Smith Widget Plant on behalf of Ajax. Todd received a commission on the sale in addition to his normal salary. Todd a. did not need a real estate license for the deal b. should have had a real estate license c. is exempt from licensing requirements d. None of these - ✔✔should have had a real estate license (1) 8. If a real estate license is NOT renewed before it expires, the licensee? a. is allowed to complete transactions in progress b. is allowed to finish transactions that are substantially complete c. must cease all real estate activities d. may act under authority of another agent's license for a period not to exceed 60 days - ✔✔must cease all real estate activities (1) 9. A real estate licensee can offer a mobile home for sale that is? a. in a manufacturing plant, ready for delivery b. transportable under an exemption from the vehicle code c. presold d. in a location where it can legally remain for one year - ✔✔in a location where it can legally remain for one year (1) 10. The Browns desperately want to move to Pine Bend, and they like the Smith House, which is listed by broker Bob. The Browns tell Bob they will make it worth his while if he can persuade the Smith's to accept the Brown offer on their house, and the Browns send an expensive food basket to Bob as a sign of their good faith. Bob neglects to mention this to the Smiths. This practice is a. acceptable b. mandated c. discouraged d. prohibited - ✔✔prohibited (1) 11. Broker Bob routinely places earnest money deposits in his personal account for overnight safekeeping. This practice is a. acceptable b. mandated c. discouraged d. prohibited - ✔✔prohibited (1) 12. Broker Luis has an exclusive listing agreement with the Pierces. The listing will terminate "when the parties agree". This practice is a. acceptable b. mandated c. discouraged d. prohibited - ✔✔prohibited (1) 13. When broker Bob exercised his option to buy Whiteacre, he presented to the owner of Whiteacre a written statement of his expected profit in the transaction. The seller agreed to proceed with the sale. This conduct is a. acceptable b. mandated c. discouraged d. prohibited - ✔✔mandated (1) 14. Maya is a broker-officer of XYZ Realty, Inc. She does not like the overly aggressive sales tactic's of XYZ's salespeople but has not reprimanded them because business is so good. Maya's conduct is a. acceptable b. mandated c. discouraged d. prohibited - ✔✔discouraged (1) 15. Broker Bob wants to help out his neighbor's son, Igor, who recently acquired a BA in history from Back East University. Broker Bob hires Igor to show property to prospective buyers. Because Igor has no real estate license, Bob handles all of the negotiating. This practice is a. acceptable b. mandated c. discouraged d. prohibited - ✔✔prohibited (1) 16. Salesperson Sally is selling the Martinez Mansion. An offer has been accepted, and the closing will take place in two weeks. While the owners are out of town, the buyer asks if the closing can be put off for one day. Sally agrees on behalf of the owners, for she is sure they will not object. Sally's conduct is a. acceptable b. mandated c. discouraged d. prohibited - ✔✔prohibited (1) 17. The Anderson house is for sale following the murder of Mrs. Anderson by Mr. Anderson in the breakfast room six months earlier. Salesperson Sam, showing an out-of-town prospect through the house, decides to keep information about the murder to himself. Sam's conduct is a. acceptable b. mandated c. discouraged d. prohibited - ✔✔prohibited (1) 18. Broker Luis is so busy that he never has the time to return the phone calls of his principals. He prefers to spend his time in the field making sales and acquiring new listings. This practice is a. acceptable b. mandated c. discouraged d. prohibited - ✔✔discouraged (1) 19. After attending a get-rich-quick real estate seminar, Kim wants to buy a house cheap. She tells broker Bob she will offer $50,000, with seller financing and no down payment, on the Henderson house. The Henderson house has an asking price of $125,000. Bob presents the offer with one of his own for $85,000, telling the Hendersons that the expected market conditions make their asking price unrealistic. His conduct is a. acceptable b. mandated c. discouraged d. prohibited - ✔✔prohibited (1) 20. Rudy opens his brokerage office and immediately places an ad in the local newspaper: List Your House with Me and I Will Pay You $500 at closing. This practice is a. acceptable b. mandated c. discouraged d. prohibited - ✔✔acceptable (2) 1. During the days of the Spanish rule, all land was owned by the a. missions b. government c. crown d. conquistadors - ✔✔crown (2) 2. The Treaty of Guadalupe Hidalgo ended a. the gold rush b. Spanish rule c. the war with Mexico d. the missions - ✔✔the war with Mexico (2) 3. Real Estate Law, which relies on court decisions as well as legislation, is based on a. Spanish civil law b. French civil law c. the right of appropriation d. English common law - ✔✔English common law (2) 4. Land disputes over the Spanish and Mexican land grants were settled by a. the Board of Land Commissioners b. the State of California c. the Spanish legal code d. taking all land for public use - ✔✔the Board of Land Commissioners (2) 5. In California, the term real estate is synonymous with a. land b. fixtures c. real property d. personal property - ✔✔real property (2) 6. Real property is NOT a. land b. real estate c. appurtenances to land d. movable - ✔✔movable (2) 7. The sale of the real property generally is governed by the laws of a. the state where the real property is located b. the state where the owner of the real property resides c. any of the states d. the federal government - ✔✔the state where the real property is located (2) 8. The sale of personal property generally is governed by the laws of a. the state where the personal property is located b. the state where the owner of the property resides c. any of the states d. the federal government - ✔✔the state where the owner of the property resides (2) 9. In California, the Uniform Commercial Code governs sales transactions involving a. real estate b. bulk sales of goods c. fixtures to real estate d. riparian rights - ✔✔bulk sales of goods (2) 10. For real estate to be conveyed, there must be an accurate a. fence line b. description c. soil chemical analysis d. water test - ✔✔description (2) 11. A subdivision map is a. rarely accurate b. good only to describe the entire subdivision c. never required d. a good reference for a legal description - ✔✔a good reference for a legal description (2) 12. The most useful method of describing a subdivision parcel is probably the a. lot and block system b. rectangular survey system c. metes and bounds system d. U.S. government survey system - ✔✔lot and block system (2) 13. The rectangular survey system is also called the a. U.S. government survey system b. province and township system c. subdivision system d. California system - ✔✔U.S. government survey system (2) 14. California has how many principal baselines a. 1 b. 2 c. 3 d. 4 - ✔✔3 (2) 15. A township consists of how many sections a. 12 b. 18 c. 4 d. 36 - ✔✔36 (2) 16. A section is a. 640 acres b. six square miles c. 5,000 feet by 5,000 feet d. three leagues - ✔✔640 acres (2) 17. Section 6 lies in what direction from section 1 of a township a. North b. South c. East d. West - ✔✔West (2) 18. Section 22 lies in what direction from section 17 of a township a. Northeast b. Northwest c. Southeast d. Southwest - ✔✔Southeast (2) 19. Land described as the South 1/2 of the N 1/2 of Section 18 contains how many acres? a. 80 b. 120 c. 160 d. 320 - ✔✔160 (2) 20. The point of beginning is used in a. the rectangular survey system b. the metes and bounds system c. the lot and block system d. all legal descriptions - ✔✔the metes and bounds system (3) 1. A fee simple estate and life estate are a. freehold estates b. fee simple estates c. leasehold estates d. estates of tenancy - ✔✔freehold estates (3) 2. The highest form of ownership is the a. life estate b. real estate syndicate c. fee simple absolute d. estate at will - ✔✔fee simple absolute (3) 3. Victor and Karen are not married but together own community property because they are a. brother and sister b. joint tenants c. registered domestic partners d. holders of a life estate - ✔✔registered domestic partners (3) 4. A fee simple estate that may be lost when some act is performed is a a. life estate b. fees simple absolute c. remainder d. fee simple on condition subsequent - ✔✔fee simple on condition subsequent (3) 5. A fee simple estate that has no conditions is a a. life estate b. remainder c. fee simple on condition subsequent d. fee simple absolute - ✔✔fee simple absolute (3) 6. If Greenacre is deeded by Lou to Mary for Mary's life, Mary has a. a life estate b. an estate in remainder c. an estate in reversion d. no interest - ✔✔a life estate (3) 7. If Greenacre is deeded by Lou to Mary for Mary's life, Lou has a. a life estate b. an estate in remainder c. an estate in reversion d. no interest - ✔✔an estate in reversion (3) 8. When Aunt Winifred died, she left a life estate in Whiteacre to her nephew George. When George dies, Whiteacre will go to George's daughter Elizabeth. Elizabeth is a a. reversioner b. remainderman c. holder of a life estate d. joint tenant with right of survivorship - ✔✔remainderman (3) 9. If Greenacre is deeded by Lou to Mary for the life of Nancy, Nancy has a a. a life estate b. an estate in remainder c. an estate in reversion d. no interest - ✔✔no interest (3) 10. The owner of a life estate can a. sell only the life estate b. never will the life estate c. sell the fee simple estate d. sell both the life estate and the fee simple estate - ✔✔sell only the life estate (3) 11. Joint tenants have unity of a. interest but no possession b. title but no interest c. possession and title only d. time, title, interest, and possession - ✔✔time, title, interest, and possession (3) 12. Barbara and Mark own Blackacre as joint tenants. Barbara's will specifies that on her death her interest in Blackacre is to go to her sister Jacquie. When Barbara dies a. Jacquie will be a tenant in common of Blackacre with Mark b. Jacquie will be a joint tenant of Blackacre with Mark c. Mark will be sole owner of Blackacre d. the probate court will have to sell Blackacre and distribute the proceeds to Mark and Jacquie - ✔✔Mark will be sole owner of Blackacre (3) 13. Three joint tenants share interest in a property. If one joint tenant's share is sold using the proper legal formalities, the new owner will then be a a. joint tenant with the other joint tenant's b. tenant in common with the other joint tenants c. tenant at sufferance d. remainderman - ✔✔tenant in common with the other joint tenants (3) 14. Community property is a. all property acquired by a spouse or registered domestic partner b. all property acquired by the husband during marriage c. the only form of ownership during marriage d. all property acquired by a spouse or registered domestic partner that is not separate property - ✔✔all property acquired by a spouse or registered domestic partner that is not separate property (3) 15. One of the forms of concurrent ownership is a. ownership in severalty b. tenancy in partnership c. sole proprietorship d. separate ownership - ✔✔tenancy in partnership (3) 16. A partner has a. an absolute right to use partnership property b. the right to assign partnership property c. the right to convey partnership property by will d. the right to possession of partnership property for partnership purposes - ✔✔the right to possession of partnership property for partnership purposes (3) 17. Absolute control, as well as absolute liability, belongs to a a. sole proprietor b. corporate shareholder c. limited partner d. trustee - ✔✔sole proprietor (3) 18. When doing business in California, a corporation chartered in California is a a. domestic corporation b. foreign corporation c. real estate investment trust d. general partnership - ✔✔domestic corporation (3) 19. Title to a spouse's marital property can be transferred upon death by use of a(n) a. oral will b. tenancy in common c. living trust [Show More]

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