California Real Estate Practice Exam – All Questions

Browse all practice questions for the California Real Estate Practice Exam. Search by topic, open any question and review its full explanation, then test yourself in the practice quiz.

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Understanding Adverse Possession in California Real Estate All of the following are methods to establish title by adverse possession, except: Understanding the CPM Designation in Real Estate Management What designation would a member of the Institute of Real Estate Management carry? Understanding the Goals of the Fair Housing ActThe goal of the Fair Housing Act is for the purpose of:Boost Your California Real Estate Knowledge with Key Lot Size ConceptsWhen lot size increases in depth, the value of:Boosting Your Property's Tax Basis: What You Need to KnowA homeowner wants to increase the tax basis of their property. Which of the following would not be acceptable?Calculating Carpet Expenses for Apartment OwnersAn apartment owner desires to carpet his units. The area to be covered is 60% of the total 15,000 sq. ft. living space in the building. If the total cost of the carpet (including installation) is $14 per sq. yd., what will be the owner's total expenditure?Calculating Loss in Value: Understanding the Impact of Rent DecreasesAn investor who owned a 16-unit apartment complex has experienced a decrease in monthly rent due to a newly installed freeway. By applying an 11% "cap rate," what is the resulting loss in value if monthly rent decreased by $320?Calculating Property Taxes in California: A Step-by-Step GuideIf the taxes on a newly acquired property amount to 1.25% of the purchase price, what will the first installment (6 months) bill be for a home costing $125,500?Calculating Property Value: A Deep Dive into Real Estate PrinciplesA home built in 1959 cost $14,500. The home is 32' x 48' and the attached garage is 18' x 20'. In 1983, the cost per square foot factors were $75 (house) and $15 (garage). If the improvement depreciated at 2% per year and the land value of the lot had risen to $25,000, what was the value of the property in 1983?Calculating the Maximum Purchase Price for Real Estate in CaliforniaYou wish to purchase 2 acres of property for which you will pay up to $1.13 per square foot. What would the maximum purchase price be?Decoding Joint Tenancy in California Real EstateA brother and sister own a property as joint tenants. The sister marries and then deeds one-half of her interest to her new husband. Which of the following is a true statement?Demystifying Escrow: What You Need to Know for California Real EstateIf not specified in escrow, what is the number of days normally allowed to close an escrow?Essential Insights for Navigating California Real Estate TransactionsWhen a broker sells six notes and trust deeds taken back by a developer of a new subdivision, he must give to each prospective purchaser a:Estimating Accrued Depreciation: Key Methods to KnowAll of the following are methods for estimating accrued depreciation, except the:Finding Chattel Liens: Where to Look for Critical Legal RecordsWhere should you look for records regarding chattel liens?Fundamentals of Planning Commissions in California Real EstateRelative to requirements for establishing "planning commissions," what is mandatory?Getting a Liquor License in California: What You Need to KnowA married woman purchased a business with separate funds, and subsequently decided to obtain a liquor license. She:Getting Ahead in California Real Estate ManagementTo be effective, good property management should begin:Helping Buyers with Limited Cash: A Smart Sales StrategyIf a salesperson discovers buyers with limited cash are interested in a property but unable to meet cash to new loan requirements, what should the salesperson do?How Demand Shapes Productivity in California Real EstateProductivity is a direct function of:How FHA Programs Enhance Home QualityFHA programs have caused the "quality" of homes to be improved because the FHA:How Interest Rates Impact Capitalization Rates in Real EstateWhen interest rates on real property loans increase, capitalization rates on income properties tend to:How Leasebacks Maximize Liquidity in Real Estate InvestmentsWhich of the following would provide the greatest amount of liquidity to an investment in real property?How to Calculate Building Coverage for Your California Real Estate ExamA building has two separate sections, each with internal dimensions of 25' width by 80' depth. The dividing center wall, running from front to back, is 12" thick, and all exterior walls are 6" thick. How much land does the building cover?How to Calculate Wire Needed for Fencing in Real EstateA section of land is to be enclosed with a double strand of wire. If a rod equals one pound of wire, how many pounds of wire will be required?How Understanding Encroachments Can Save You Legal Hassles in CaliforniaIn the event there is an encroachment on another's property, legal action must commence within:How would an appraiser classify severe foundation deterioration in a building?An investigation reveals serious deterioration of the foundation and supporting beams in a building. How would an appraiser classify this type of defect?Is Increasing Commission at Sale Legal in CA Real Estate?If a broker asks the seller to increase the commission at the time of the sale, and the seller agrees to do so, this would be:Know the Difference: Is It a Subdivision or Not?Which one of the following is not classified as a subdivision?Making the Switch: What a Broker Needs to Know About Becoming a SalespersonA licensed real estate broker desires to work as a salesperson. She should:Mastering Apartment Operating Expenses for California's Real Estate ExamThe highest annual operating expense of an apartment normally would be assigned to:Mastering Area Calculations: A Key to California Real Estate SuccessA parcel of land 500 ft. x 300 ft. is bisected into two equal sized rectangles by a row of eucalyptus trees. How many acres are there in each portion?Mastering California County Taxes and Their DeadlinesIf an out-of-state resident were to ask when the first installment of the county taxes becomes due, you should answer:Mastering California Real Estate: A Guide to Evaluating Land ValueIf land was selling for $10,000 per acre, what would the following parcel sell for? The SE¼ of the SE¼ of the SE¼ of Sec. 4 and the S½ of the SW¼ of the SW¼ of Sec. 3 and the N½ of the NE ¼ of the NE¼ of the NE¼ of Sec. 9 and the N½ of the N½ of the NW¼ of the NW¼ of Sec. 10.Mastering Capitalization in Real Estate AppraisalCapitalization is a process by which an appraiser:Mastering Capitalization Rates: The Key to Accurate Property ValuationWhy is selecting an accurate capitalization rate crucial in the income approach to appraisal?Mastering Closing Prorations in California Real Estate TransactionsIf a seller has paid the first half of an annual tax bill of $1,200, and a fire insurance policy with a three-year premium of $900 is assumed by the buyer, what is the net buyer proration for closing on Mar. 1?Mastering Cost Estimation in California Real Estate AppraisalsAppraisers use which of the following methods for estimating costs?Mastering Depreciation Calculations in California Real EstateWith the straight-line method of depreciation, how do you calculate the depreciation per year for an improvement value of $120,000 over 35 years?Mastering Depreciation on Apartment Investments in CaliforniaAn investor in an eight-year-old apartment building will be allowed by the IRS to calculate depreciation by which of the following methods?Mastering FHA Loan Payments: Everything You Need to KnowUnder an FHA program, monthly payments made (principal + interest) on a home loan must be:Mastering Involuntary Conversion in California Real EstateA taxable gain realized when property is destroyed or taken through condemnation is known as:Mastering Lumber Measurements: A Key Skill in Real EstateA piece of lumber that is 2" x 12" x 24 ft. contains how many board feet?Mastering Profit Calculations in Real Estate InvestingAn investor purchased a property for 10% less than the listed price, then resold it for the previously listed price. What was the percentage profit?Mastering Real Estate Math: A Closer Look at Original Land PricesAn investor group sold a parcel of land for $217,500, which was 45% more than they paid for it. What was the original price they paid per acre for the property described as N½ of the NW¼ of the SE¼ of Section 13 plus the W½ of the NE¼ of Section 13?Mastering Sale-Leasebacks: What You Need to KnowThe least important factor in a "sale-lease back" is:Mastering Secured Transactions in California Real EstateWhen purchasing a "business opportunity" and using personal property acquired to secure a loan, which of the following is necessary to "perfect" the transaction?Mastering Tax-Free Exchanges in California Real EstateSHE owns a single-family residence, and HE owns a rental property. If both intend to use their newly acquired properties for rental income after a trade, which statement is true?Mastering the 4-3-2-1 Rule for Real Estate Appraisal in CaliforniaThe 4-3-2-1 Rule is particularly useful for appraising what?Mastering the Cap Rate: Your Guide to California Real Estate InvestmentsAn investor purchased a $140,000 four-unit apartment building. For a "Cap Rate" of 10%, what would the owner have to get monthly from each of the two-bedroom units?Mastering the Capitalization Rate in California Real EstateWhen analyzing a real estate investment, which of the following is used to measure the annual return on property investment?Mastering the Comparison Approach for Amenity PropertiesWhich appraisal method is most desirable for assessing so-called amenity properties?Mastering the Cost Approach in California Real Estate ValuationWhen using the cost approach to determine the value of land and improvements of a property, an appraiser would use:Mastering the Straight-Line Depreciation Method for Your California Real Estate ExamIn a straight-line schedule of depreciation, how are the years treated?Mastering Trust Deeds: What You Need to Know for California Real EstateA real estate broker who negotiated a real property loan must record the trust deed:Maximizing Allowable Depreciation on Real Estate InvestmentsIf each of the following properties was purchased for $150,000, which would make provision for the most dollars of allowable depreciation?Maximizing Real Estate Returns in a Tight Money MarketDuring a tight money market, a real estate broker would maximize return by directing efforts into:Maximizing Your Equity Yield: Smart Borrowing StrategiesBorrowing against a property with a loan interest rate less than the "equity yield" on the property:Navigating Blanket Encumbrances in California Real EstateFor a "blanket encumbrance," why does the typical release clause require the debtor to pay more to the lender than each released property is worth?Navigating Blanket Loans: Understanding the Release ScheduleIn order to maintain a "release schedule," the beneficiary of a blanket loan usually charges a higher proportionate payment amount to release each lot for what reason?Navigating California's Security Interest LandscapeOn which of the following types of business collateral would one file with the secretary of state (Sacramento) to perfect a security transaction?Navigating Conflicts Between Local Zoning and Deed Restrictions in California Real EstateWhat happens when there are conflicts between local zoning restrictions and private restrictions contained within the deed?Navigating Corporate Deeds: What You Need to KnowA corporation deed signed by its president and secretary is adequate to pass marketable title if:Navigating FHA Loans: What Homebuyers Should KnowA buyer purchasing a home financed by a new FHA loan should do all of the following, except:Navigating Financing Costs in California Residential Real EstateIn residential real estate lending, when lenders "soften" their requirements to allow less than qualified buyers to "qualify," what happens to the overall financing costs?Navigating Grant Deeds: Understanding Title Changes in California Real EstateWhich of the following could be used with a purchaser without the immediate involvement of a title change?Navigating Leasehold Interests in California Real EstateYou own the business you run and lease the building in which you operate. You hold a (an):Navigating Non-Licensee Subdividers in California Real EstateWhich statement about a non-licensee subdivider is incorrect?Navigating the Appraisal Techniques for California Real EstateValue is the present worth of future benefits, arising out of ownership, to typical users and investors. To which appraisal technique does this definition of value relate?Navigating the California Recovery Fund: What You Need to KnowA person holding a judgment against a real estate broker seeking relief from the Recovery Fund could obtain a maximum of:Navigating the Impacts of Rent Increases on Vacancy RatesIf the rent of commercial property increased well above the maintenance or servicing costs, the resulting situation would:No Prepayment Penalties: Understanding Cal-Vet LoansWhich loans do not have prepayment penalty provisions?Starting Right: The Essential First Step for Land DevelopersA land developer should initially:The 4-3-2-1 Rule: Unlocking Real Estate Appraisals with ConfidenceWhat is the 4-3-2-1 Rule used for in real estate appraising?The Basics of Market Demand and Supply in Real EstateIf the "demand" for homes goes up and the "supply":The Best Way to Assess the Value of Older Properties in California Real EstateThe most feasible approach for determining the value of a property built many years ago is:The Consequences of Breaching Conditions vs. Covenants in Real EstateWhat outcome could result from the breach of a condition compared to the breach of a covenant?The Diminishing Returns Principle in California Real EstateThe principle which states that increasing improvements beyond a certain point do not yield proportional increases in value is known as:The Essence of Real Estate: Why Location is KeyThe most important economic characteristic of property is:The Essentials of Lease Agreements and Property OwnershipWho owns the property in a lease agreement?The Fate of Lease Options When Assigned: What You Need to KnowWhat happens to an option in a lease when the lease is assigned?The Impact of Deeding Interest in Joint Tenancy: What You Need to KnowWhat happens to a joint tenancy when one joint tenant deeds their interest to another party?The Impact of Dollar Value Decrease on Real Estate PricesWhat influences the price increase of real property when the value of the dollar decreases?The Importance of Ethical Standards in California Real Estate LicensingNo real estate salesperson may be licensed in the employ of a corporation real estate broker licensee, or perform acts for which a real estate license is required on behalf of the corporation if:The Importance of Flashing in Building ConstructionSheet metal used to protect a building from water seepage is called:The Importance of Legal Description in Real Estate TransactionsIf a deposit receipt does NOT contain a legal description of the property to be purchased, it would be:The Importance of Recording Order in Trust DeedsWhat is required for a trust deed to take priority over other recorded instruments?The Importance of Trust Deeds in California Real EstateThe trust deed (and note) that normally takes priority is the one that is:The Importance of Trust in California Real Estate TransactionsThe wording "all monies paid on the property are to be held in trust until a release is obtained from the blanket encumbrance" is required to protect which party?The Intricacies of General Liens and Abstracts of JudgmentWhat type of lien is created when an abstract of judgment is recorded?The Intricacies of Real Property Instruments You Must KnowAll of the following instruments are used to convey an interest in real property, except:The Legalities of Commission Changes in Real Estate TransactionsIf a broker incurred more expenses than anticipated when trying to sell a property, can they legally ask for an increased commission at the time of sale?The Real Cost of Kickbacks: Understanding RESPA ViolationsWhat is the punishment for violating the "kickback" provisions of R.E.S.P.A.?The Surprising Truth About General Partners in Limited PartnershipsWhat is the liability status of a general partner in a limited partnership?Understand the Role of a Deed in Real Estate TransactionsWhich document is used to convey real property from a seller to a buyer?Understanding "Demise" in Real Estate: What You Need to KnowDemise deals with:Understanding "Highest and Best Use" in California Real EstateWhich of the following would most likely appear in an appraiser's definition of "highest and best use"?Understanding "Highest and Best Use" in California Real EstateThe term "highest and best use," as the fundamental concept of value, is best defined as:Understanding "On-Sale" Liquor Licenses in CaliforniaWhich of the following does NOT qualify for an "on-sale" liquor license?Understanding Accession: How Land Ownership Changes with NatureAn owner acquires title to additional land on his river-front property when the river shifts its course. This is acquiring by:Understanding Accrued Depreciation in Property AppraisalWhich of the following appraisal methods requires a computation for "accrued depreciation"?Understanding Accrued Depreciation in Real Estate: A Guide for Future AppraisersIf an appraiser wishes to measure the extent of accrued depreciation, he would rely upon which one of the following methods of calculation?Understanding Acre Measurements for Industrial PropertiesSites for industrial buildings are usually gauged by the:Understanding Agency Relationships in California Real EstateMr. "O" intentionally causes Mr. "G" to believe that a real estate broker is his agent. In fact, the broker is not Mr. "O's" agent. However, under the above conditions, the agency relationship is:Understanding Agency Relationships in California Real EstateHow is the agency of a real estate broker best created?Understanding Agency Relationships in California Real EstateWhich of the following is NOT essential to the creation of an "agency" relationship?Understanding Agreements in Deeds: What You Need to KnowAn "agreement in a deed" best matches which of the following?Understanding Air Space in Condominium Ownership in CaliforniaCondominium ownership is an undivided interest in common areas with all other project owners, plus separate interest in the "air space" of a particular unit. Air space is:Understanding Appraisal Fees in California Real EstateAppraisal fees:Understanding Appraisal Methods for Accurate Real Estate ValuationAn appraiser's final step in estimating value is to correlate the three indications of value obtained through the cost, income, and market data approaches. The final estimate of value is obtained by:Understanding Appraisal Methods for New StructuresAn appraiser would use which method to estimate the cost of a new structure?Understanding Appraisal Methods for Unimproved Real PropertyAll of the following are methods for appraising unimproved real property, except the:Understanding Appraisals for Historic Homes: What You Need to KnowFor an appraisal being conducted on a residence built in 1910, which of the following would an appraiser use?Understanding Appraisals: The Heart of Real Estate ValuationAn appraisal is best described as a(n):Understanding Appurtenant Easements in California Real EstateAn appurtenant easement need NOT be mentioned in a deed since it:Understanding Area Measurements in Real Estate: Which One is Largest?Which represents the largest area?Understanding Auctioneer Liability in California Real Estate TransactionsAn auctioneer who sells a business on which a Notice of Sale was properly recorded and published:Understanding Balloon Payments in Construction MortgagesA “balloon payment” in a construction mortgage agreement refers to:Understanding Bearing Walls and Their Unique CharacteristicsA bearing wall in a building:Understanding Binding Offers in Real Estate: A Case StudyAn owner offered his home to a buyer for $100,000 cash. The buyer paid the owner $100 cash to keep the offer open for two weeks. The owner accepted the $100. Ten days later, the owner notified the buyer that he was withdrawing his home from the sale. The next day the buyer tendered $100,000 cash to the owner. Under these conditions:Understanding Blanket Encumbrances in California Real EstateIn a subdivision, which of the following would NOT be a blanket encumbrance?Understanding Blanket Encumbrances in Real EstateWhich of the following defines a blanket encumbrance?Understanding Blanket Loans: What Happens When You Pay Off More?What is the result of having more paid off (than proportionate) to release each lot sold in a blanket loan?Understanding Blanket Trust Deeds in California Real EstateRegarding a "Blanket Trust Deed," which of the following statements is correct?Understanding Blight Protection in California NeighborhoodsWhich provides the least protection against blighting in any given area?Understanding Blind Ads in California Real EstateWhich of the following defines a "blind ad"?Understanding Blockbusting in Real Estate: What You Need to KnowWhich of the following is NOT considered acceptable conduct when a real estate licensee solicits a listing by stating that "non-whites" would be moving into the neighborhood?Understanding Board Feet: A Key Concept for California Real Estate ProfessionalsA piece of lumber 4" x 4" x 6' is how many board feet?Understanding Broker Commission Entitlements in California Real EstateA broker is entitled to one-half of the commission plus all his costs when which of the following occurs?Understanding Broker Commissions on Second Trust Deeds in CaliforniaA borrower negotiates a $4,500 loan secured by a 2nd trust deed through a broker. The loan was to be for a term of 2 years. What is the maximum commission the broker can charge for services?Understanding Broker Responsibilities in California Real EstateIf a broker agrees to manage a client's investment portfolio ($85,000) of 1st trust deeds and guarantees a return of 11% on the investments, he:Understanding Broker Trust Account Responsibilities in California Real EstateA broker has received a $5,000 personal check as deposit on an offer. Since the sellers are not home, the broker deposits the buyer's check into his broker trust account. The buyer thereafter rescinds the offer and demands the return of the deposit. The broker should:Understanding Broker's Commission in Real Estate TransactionsWhen does a broker's commission typically become non-contingent?Understanding Broker's Loan Statements: Protecting the BeneficiaryA broker's loan statement protects the:Understanding Business License Taxes for Real Estate Brokerages in CaliforniaA tax that the city could levy against a real estate brokerage firm, based on its gross receipts, would be:Understanding Business Structures and Personal Asset Protection in California Real EstateWhich business structure leaves personal assets of principals available to creditors for satisfaction?Understanding Buyer Payments in Mortgage CalculationsWhat is the appropriate buyer's payment for a mortgage tracker if the insurance is $804 and taxes $2700 per year?Understanding Buyer Rights in California Real Estate TransactionsUnder a real property sales contract, Buyer "A" makes a $2,000 down payment to Seller "B." "A" then moves to Florida without making further payments or notifying "B." Which of the following would be true?Understanding Buyer Rights in Real Estate Sales ContractsUnder a real property sales contract, buyer is considered to be a(n):Understanding Buyer Terminology in Real Estate: The Role of a ClientIn the real estate business, the buyer is commonly referred to as a(n):Understanding Cal-Vet Financing and Its Life Insurance RequirementUnder which of the following types of financing is a buyer required to purchase term life insurance?Understanding California Real Estate Regulations on Yield GuaranteesWhat must a broker do if he guarantees a yield on an investment?Understanding California's 60-Day Notice for Tenants in Manufactured Home ParksRegarding termination of estates in manufactured home parks, a tenant who has a tenancy in a manufactured home that cannot be legally moved without a permit, may not have the tenancy terminated without written notice of not less than:Understanding California's 1911 Street Improvement Act Bonds: Tax Implications You Need to KnowAssume the streets in a subdivision were financed through the issuance of 1911 Street Improvement Act Bonds. When he prepares his income tax return, the:Understanding California's Housing Discrimination LawsCalifornia law opposes discrimination in public housing accommodations based on race, color, religion, national origin, or ancestry. Which of the following cases would violate this law?Understanding California's Property Tax Lien DateOn which date do California real property taxes become a lien on the subject property?Understanding California's Real Property Securities RegulationsA principal gives a broker $50,000 with which to purchase 2nd notes and trust deeds. The broker guarantees an 18% return on the investment. What must the broker do to legally sell these real property securities?Understanding California's Real Property Tax Sale ProcessIn situations whereby real property taxes are not paid, the Tax Collector will affect a "Sold to the State" on which of the following dates?Understanding California's Sales Tax: What Real Estate Students Need to KnowCalifornia State sales tax applies to:Understanding California's Secondary Money Market: A Real Estate PerspectiveThe secondary money market refers to:Understanding Cap Rates: A Guide for California Real Estate InvestorsWhich percentage represents a reasonable cap rate for attributing income?Understanding Capital Gains and Tax Effects in Real Estate TransactionsAdam purchased a residence for $180,000 and made $20,750 in capital improvements. He sold the house for $200,000 and moved into an apartment on a 3-year lease. What kind of tax effect would this sale have?Understanding Capital Gains Exclusion for Homeowners in CaliforniaA single owner who resides in a home for two of the last five years is entitled to a capital gains exclusion of:Understanding Capital Gains Exclusion for Married Couples in CaliforniaWhat is a capital gains exclusion amount for a married couple who have lived in their home for two out of the last five years?Understanding Capital Gains Tax Exemption for HomeownersHow many years must Mr. and Mrs. Yearsley have resided on the premises to qualify for the capital gains tax exemption?Understanding Capital Gains Tax on Home Sales in CaliforniaA 60-year-old man has been living in a home he bought 9 years ago, for which he paid $90,000. He recently sold the home for $120,000, incurring $9,600 selling expenses and brokerage fees. What capital gains taxes will he owe?Understanding Capital Gains Tax on Your California Home SaleA single buyer purchased a new residence for $210,000, lived on the property for 3 years, then sold the property for $400,000. How much of his profit is subject to capital gains taxation?Understanding Capital Improvements in Real Estate AppraisalProvision for the recapture of capital improvements is made in which of the following during an income evaluation approach to appraisal?Understanding Capital Outlays in California Real Estate EvaluationsIn the course of evaluating apartment property net income, an appraiser would regard an annual payment for a street paving assessment as a(n):Understanding Capital Turnover in Real Estate InvestmentsCompared with other commodities, capital turnover in real estate investments is:Understanding Capitalization Rates in California Real EstateNo provision is made for which of the following elements in the calculation of a capitalization rate during an appraisal of income property?Understanding Capitalization Rates in Real Estate ValuationWhich of the following is not typically included in the calculation of a capitalization rate for appraising income property?Understanding Capitalization Rates in Real Estate: A Guide for Your ExamHow would the capitalization rates compare between two buildings leased to different tenants, one being a retail store owner and the other a federal government agency?Understanding Capitalization Rates: Fire Stations vs. Appliance StoresWhich type of capitalization rate would a fire station building probably have compared to a small appliance sales and repair store?Understanding Chattel Real in California Real EstateA loan (trust deed) held by an individual is:Understanding Clauses in Real Property Sales ContractsA clause in a real property sales contract for newly subdivided land prohibits the purchaser from prepaying principal during the first 12 months. If the buyer wishes to pay off the contract within this period, the clause:Understanding Collateral in Loan AgreementsWhat does Mr. Traveler obtain when using a $10,000 note and T.D. as security for a $4,000 loan in a negotiated pledge agreement with Mr. Banks?Understanding Commissions in California Real EstateIn California, the salesperson's commission is paid by the:Understanding Conditions and Covenants in California Real EstateRegarding Conditions and Covenants, which are restrictions imposed upon grantees limiting property use, the enforcement of "conditions" would be considered:Understanding Condominium Ownership in California Real EstateRegarding condominium ownership, which answer is most correct? Owner has:Understanding Condominium Ownership: Common Misconceptions and FactsWhich of the following statements is NOT correct about condominiums?Understanding Constructive Eviction in California Real EstateWhich of the following would not be constructive eviction of a tenant (lessee) by a landlord?Understanding Constructive Eviction in California Real EstateA tenant is justified in abandoning a lease property if the landlord demonstrates constructive eviction. Which of the following acts would be considered constructive eviction?Understanding Constructive Eviction: A Landlord's MisstepWhich of the following actions by a landlord can result in constructive eviction?Understanding Contract Formation Essentials for California Real EstateWhich of the following is NOT necessary in the formation of a contract?Understanding Contracts in California Real Estate: A Focus on Sale ConditionsA contract of sale to an investor is conditioned upon the new prospective owner finding tenants for his building in advance. This agreement is:Understanding Contractual Limitations in California Real EstateA purchaser of a home could not complete a legal contract because of which of the following?Understanding Cooperative Apartment Projects in California Real EstateAn owner of a cooperative apartment project makes monthly payments which include principal, interest, taxes, and insurance. Which of the following statements is NOT correct?Understanding Corporate Listing Agreements in California Real EstateA corporation listed a property with a broker, and subsequently the entire slate of officers were killed in a plane crash. The listing is:Understanding Cost Estimation Methods in California Real EstateCost estimating methods currently used by builders, architects, and appraisers are:Understanding Costs in California Real Estate: What Every Student Should KnowPast expenditures for residential improvements are called:Understanding Covenants in California Real Estate DeedsAn "agreement in a deed" would best match up with:Understanding Curable Economic Obsolescence in Real EstateAn investor constructs an office building but soon discovers that he can only rent a small percentage of the office space. The electrical, plumbing, cooling, and heating systems are also found to be oversized. This scenario is an example of:Understanding Debits in California Real Estate TransactionsWhich of the following is considered a "debit" to the buyer?Understanding Deductible Expenses in California Real EstateAn investor has purchased an apartment building. She reports income on a cash basis and will be allowed deductions for all but which of the following?Understanding Deed Recording and Its Implications in California Real EstateWhen a deed is recorded:Understanding Deed Restrictions and Their Enforcement in California Real EstateDeed restrictions are enforced by:Understanding Deferred Payment Contracts in California Real EstateWhich of the following would NOT be considered a "deferred payment" form of contract?Understanding Deficiency Judgments in California Real EstateIn the event of a default on the first trust deed, which of the following is true?Understanding Depreciation in California Real EstateWhich type of depreciation is least likely to be affected by local factors?Understanding Depreciation in California Real Estate: What You Need to KnowWhich one of the following illustrates the most common type of depreciation?Understanding Depreciation in Property Appraisal for California Real EstateWhich method is used to calculate depreciation in the context of property appraisal?Understanding Depreciation in Real Estate: What You Need to KnowDepreciation is least affected by which of the following factors?Understanding Depreciation: Accountants vs. Appraisers in Real EstateAccountants and appraisers view depreciation of real property differently. Which statement is true?Understanding Depreciation: Calculating Adjusted Basis for California Real EstateMr. E purchased property for $150,000 (Improvement 80%: Land Ratio 20%). If he used the straight-line method of depreciation with 35 years remaining life, what would be the adjusted basis of the property after 10 years?Understanding Depreciation: Key Concepts for California Real Estate AppraisersWhen an appraiser evaluates real property, his concept of annual, or periodic, depreciation applies to which of the following?Understanding Depth Tables in California Real Estate AppraisalsWhat are depth tables used by appraisers for?Understanding Developer Restrictions in Subdivision Real EstateWhich of the following restrictions, set up by the developer of a subdivision (based on experience), would be the least likely to be enforced?Understanding Developer Restrictions on Signage in California Real EstateA developer of a subdivision included a clause in each purchase agreement prohibiting signs offering individual properties for sale until he had sold all the subdivision. Until the developer completes sales of all parcels, which of the following is true?Understanding Different Loan Types in California Real EstateWhich of the following statements is NOT correct?Understanding Diminishing Returns in Real Estate InvestmentWhen an investor purchases income property, he should be aware that certain expenditures for upkeep, replacement, and management are necessary to produce greater income. When the point is reached beyond which adding to improvements will not result in increased returns, this is an example of the principle of:Understanding Disclosure Obligations in California Real Estate TransactionsA salesperson purchased a property listed through his broker's office. Later the sellers complained to the Commissioner that the salesperson had neglected to inform them he was a licensee. Which of the following is correct?Understanding Documentary Tax Stamps in California Real Estate TransactionsWhat would be the documentary tax stamps for a property selling for $121,000, with a down payment of $10,000, an additional $5,000 down, and an existing VA first loan of $100,000 being taken over?Understanding Domicile: More Than Just a Home"Domicile" most frequently means:Understanding Duress in Contracts: What You Need to KnowIn contracting, if one of the parties enters the agreement under duress, the contract would be:Understanding Easements by Prescription in California Real EstateAll of the following are essential elements to claim an easement by prescription, EXCEPT:Understanding Easements in California Real Estate: What You Need to KnowRegarding easements, which of the following is NOT correct?Understanding Easements in Real EstateAn acquired right to use and enjoy that a person may have on land of another is known as a(n):Understanding Easements: The Crucial Link in Real EstateWhich of the following would be most like an easement appurtenant?Understanding Easements: Your Guide to Property RightsWhat is an easement?Understanding Economic Growth's Influence on Agricultural PropertiesWhich statement is NOT true regarding the impact of economic growth on agricultural properties?Understanding Economic Life in Real Estate: A Guide for BuyersIf a buyer plans to purchase an older building, he would give most careful consideration to the:Understanding Economic Obsolescence in California Real EstateWhich type of depreciation is considered most difficult to eliminate?Understanding Economic Obsolescence in California Real EstateWhich of the following relates to "economic obsolescence"?Understanding Economic Obsolescence in California Real EstateWhich of the following would be an example of economic obsolescence?Understanding Economic Obsolescence in California Real EstateWhich element causes economic obsolescence?Understanding Economic Obsolescence in California Real EstateEconomic obsolescence would be created by which of the following?Understanding Economic Obsolescence in California Real EstateBy definition, economic obsolescence would not apply to which of the following?Understanding Economic Obsolescence in California Real EstateA change in the flight patterns of an airport creates excessive noise over an apartment building, resulting in increased vacancies and loss of property value. This loss of value is called:Understanding Economic Obsolescence in Real EstateSome forms of depreciation are curable, some are not. Which of the following forms is not curable?Understanding Economic Obsolescence in Real EstateAn incompatible positioning of a residence on a parcel of land would be an example of?Understanding Economic Obsolescence: What You Need to Know for the California Real Estate ExamAll of the following would cause economic obsolescence, except:Understanding Eminent Domain: What You Need to KnowWhich of the following would NOT be included in an "eminent domain" situation?Understanding Encumbrances in California Real EstateWhich of the following is an encumbrance?Understanding Encumbrances in California Real EstateWhich of the following is an example of an encumbrance?Understanding Encumbrances: The Role of Lease Agreements in Real EstateIn the real estate market, which type of agreement is considered an encumbrance?Understanding Escalator Clauses in Lease AgreementsWhat happens if a lease contains an escalator clause and the cost of living index rises?Understanding Estate at Sufferance: What Every California Tenant Should KnowWhen a tenant who had rightfully come into possession of a property by means of a lease agreement retains possession after the expiration of said lease without permission of the owner, it is called a(n):Understanding Estate Planning Terms for California Real EstateWhich of these words does NOT belong with the others?Understanding Exclusive Listings in California Real EstateFor an exclusive listing, negotiations for a buyer should be conducted through the:Understanding Exclusive Rights in California Real Estate ListingsWhen you have an exclusive right to sell listing, the owner can lease the property for a maximum of:Understanding Exemptions in California Real Estate SalesInvolving the sale of a property, which of the following would be exempt from the "discrimination and unlawful acts" of the Health and Safety Code?Understanding Fair Housing Laws in Real Estate TransactionsIs a real estate broker in violation of the law by disclosing the race of a buyer to the seller upon request?Understanding Fair Housing Laws: The Role of HUDWhich agency is primarily responsible for the enforcement of fair housing laws?Understanding Fair Housing: Roots in the 13th AmendmentNational Fair Housing principles are founded on which of the following?Understanding Fair Housing: The Impact of Jones v. MayerWhat landmark case of the U.S. Supreme Court affected fair housing by prohibiting discrimination?Understanding Fair Housing: What You Need to Know for the California Real Estate ExamA broker suggested to his sales staff that they seek new listings in an area where minorities have recently begun to move into. He also suggested that they take listings only from white owners, since they would most likely be sellers due to the fact that the minorities are "moving in." Regarding two possible areas of concern, (1) instructions to his sales staff and (2) his discrimination regarding their seeking of listings from whites, the broker is in violation of the Fair Housing Act (guilty of discrimination) as follows:Understanding Fannie Mae's Role in the Secondary Money MarketThe primary activities of FNMA in the secondary money market involve:Understanding Federal Law Complaint DeadlinesComplaints involving violations of federal law must be filed within how many days of the violation?Understanding Fee Simple Estates in California Real EstateAn example of a fee simple estate is a:Understanding FHA and VA Loan Origination FeesOn FHA and VA loans, the lender is allowed to charge the borrower a fee as an initial service fee. This is generally referred to as:Understanding FHA Appraisal: Who's in Charge?Who generally initiates an FHA appraisal for a property?Understanding FHA Down Payment Calculations for California Real EstateFHA down payment requirements for a new loan on an appraised value of $87,500 are 3% on the first $25,000 and 5% on the remainder. What is the total loan amount?Understanding FHA Home Loan Requirements: A Key to Real Estate SuccessThe FHA, an agency of H.U.D., requires that home loans must meet certain factors known as:Understanding FHA Loan Calculations: A Practical GuideA property offered for sale for $88,000 has been appraised for a new FHA loan at an appraised value of $87,500. How large a loan can be obtained if the FHA down payment is 3% of the first $25,000 of the appraised value plus 5% of the remainder of $25,000?Understanding FHA Loans and Secondary Financing in California Real EstateWhen a buyer wishes to purchase a home with a down payment and an FHA insured loan, what should the broker advise regarding the 2nd note and trust deed?Understanding FHA Loans and Secondary Financing RestrictionsWhy might a Buyer be advised that an FHA loan does not allow for 2nd notes and trust deeds?Understanding FHA Loans and Their Key AbbreviationsWhich of the following abbreviations is associated with the FHA?Understanding FHA vs. VA Financing: What You Need to KnowWhich of the following properties could be purchased using FHA financing, but NOT VA financing? The purchase of:Understanding Fiduciary Relationships in California Real EstateWhich of the following would NOT be considered a "fiduciary" relationship?Understanding Financing Options for California Real EstateWhich of the following types of financing generally does NOT require any down payment?Understanding Financing Options for Residential Properties in CaliforniaAll of the following are used in the purchase of residential properties, except:Understanding Fixtures in California Real EstateWhen personal property becomes (by intent) a part of real property, it becomes a(n):Understanding Fixtures in Real Estate: What You Need to KnowIn real estate terms, what does the term "fixture" refer to?Understanding Footings: The Foundation of Your Construction KnowledgeWhat construction term refers to the bottom of a foundation?Understanding Franchise Sales in California Real EstateAn agent obtains a listing to sell a registered franchise from the owner. The sale will include both building and land. Before he begins servicing the listing, the agent must:Understanding Freehold Estates in California Real EstateWhich type of estate is a freehold estate?Understanding Front Footage Value in Real EstateWhat is the effect on front footage value when the depth of a lot increases?Understanding Functional Obsolescence in California Real EstateWhat kind of replacement would be classified as functional obsolescence?Understanding Functional Obsolescence in Real EstateWhat does an apartment with single garages facing competition from a nearby new unit with double garages illustrate?Understanding Functional Obsolescence in Real Estate AppraisalWhich issue would an appraiser be referring to when mentioning "functional obsolescence" in a single-family residence?Understanding Functional Utility in Real EstateFunctional utility in a building is most dependent upon:Understanding Furring in Construction: A Key Element for BuildersWhat are "furring" in construction?Understanding General Liens in California Real EstateWhich of the following would be considered a "general lien"?Understanding Government Property Disposal: The Auction Method ExplainedThe normal method of disposing of government property is by:Understanding Graduated Leases in California Real EstateThe U.S. Bureau of Labor Statistics publishes a cost of living index. If a lease contains an escalator clause, which requires periodic adjustments in relation to changes in the index, the lease is called a(n):Understanding Grant Deeds: A Key Element in Real Estate TransactionsWhich of the following represents an essential part of a valid grant deed?Understanding Gross Monthly Multipliers in Real Estate AppraisalsAn appraiser evaluated a building and reported that the $2,500 per month income was in line with other comparable properties in the area. Recent sales of some of those comparable properties brought $350,000. What monthly gross multiplier would the appraiser use in further evaluations?Understanding Highest and Best Use in Real Estate ValuationThe cost of an improved parcel of real property would probably be equal to its value in which of the following instances?Understanding Home Buying: Comfort, Safety, and Financial EnhancementFinancial enhancement, as compared to comfort and safety when purchasing a home, is generally considered:Understanding Home Orientation: Why Placement Matters in Real Estate"Placement of a Home" would best match up with which of the following?Understanding Home Placement: Your Guide to Plot PlansThe term "placement of a home on a lot" best matches which of the following?Understanding Homeownership Costs vs. Renting in CaliforniaWhen comparing a rental situation with the ownership of a home, which of the following does not represent a cost of home ownership?Understanding Homestead Declarations in California Real EstateAll of the following are correct concerning a valid homestead declaration, EXCEPT:Understanding Homestead Exemptions in California Real EstateA homestead offers NO protection against which of the following filed prior to the filing of the homestead?Understanding Housing Discrimination in CaliforniaWhich agency has jurisdiction over practices of unfair or discriminatory acts in housing matters?Understanding Income Capitalization in California Real EstateWhat translates the value difference when a total value $300,000 is capped at rate 9%?Understanding Income in Home Buying for Low-Income BuyersA buyer with a low income considers many factors when choosing a home. Which of the following is the most important?Understanding Indemnification in Insurance: A Key Concept for Future Real Estate ProfessionalsWhat does "indemnify" mean in the context of insurance?Understanding Indemnity in Fire Insurance for HomeownersIf a home were properly insured with fire insurance to indemnify the owner, he could expect to:Understanding Indirect Costs in Building ConstructionWhich cost in the construction of a building would be considered an indirect cost?Understanding Indirect Costs in Construction: A Deeper LookIn the construction of a building, there are several indirect costs involved, one of which is:Understanding Indirect Methods for Estimating Accrued Depreciation in Real EstateAccrued depreciation may be estimated by five general methods. Which of the following are considered indirect methods?Understanding Installment Sale Contracts in California Real EstateAn "installment sale" contract is which of the following?Understanding Interest Payments: A Real Estate EssentialOne month interest payment on a straight note amounts to $180. At 9% per annum interest rate, what is the face amount of the note?Understanding Joint Tenancy and the Right of Survivorship in California Real EstateMr. and Mrs. "Z" own property in joint tenancy. The "Zs" each have a son by a previous marriage. Mrs. "Z" dies and leaves by will 2/3 of her property to her son and the other 1/3 to Mr. "Z's" son. The sons:Understanding Jointly and Severally in Debt ObligationsWhich of the following phrases would best bind all parties to pay their debts?Understanding Joists in California Real Estate ConstructionThe series of parallel beams to which floorboards and ceiling laths are nailed, which are supported by large beams, girders, and bearing walls, are called:Understanding Junior Loans and Their Funding SourcesThe primary source of funds for junior loans is:Understanding Junior Loans and Their Funding SourcesWhich of the following entities are the primary sources of funds for junior loans?Understanding Just Compensation in California Real Estate"Just compensation" is a term used in condemnation proceedings. In determining the fair market value of a property, the court would use any of the following, except the:Understanding Key Concepts for California Real Estate BuyersThe prospective purchaser of real property would be most concerned with the:Understanding Land Measurements: What’s Smaller than a Section?Which of the following is smaller than a section?Understanding Land Projects in California: What You Need to KnowA land project consists of:Understanding Land Value in California Real EstateThe value of an investment is as follows: Total value = V(t) = $300,000; Income attributable to building = $21,600; Reasonable "cap rate" = 9%. What is the value of the land?Understanding Landlord Responsibilities in California Real EstateA landlord is required to keep all but which one of the following in good order?Understanding Lease Agreements in California Real EstateA property was leased to a lessee for a two-year period, with monthly lease payments to be $800. The lessor collected the first and last month payments. This agreement would most likely not include which of the following statements?Understanding Lease Types: Navigating the California Real Estate LandscapeWhen all expenses, including taxes and insurance, are paid by the lessee along with a new amount of "rent" as agreed upon to the landlord, this is referred to as a:Understanding Leaseback Transactions and Their Tax BenefitsAn owner of a business property sold the property and then "leased it back." Which of the following factors was most advantageous for the owner/lessee?Understanding Leasehold Estates: Who Holds The Key?Under a lease agreement, who holds the leasehold estate?Understanding Legal Closing in California Real Estate TransactionsAccording to California law, legal closing occurs at which of the following times?Understanding Lender Qualification for First-Time HomebuyersFirst time buyers are concerned as to how the lenders qualify prospective buyers regarding income. Lenders:Understanding Lenders: Who Prefers Larger Loans?A lender with vast funds for investment, who prefers larger loans without collection responsibilities, would most likely be a(n):Understanding Less-than-Freehold Estates: The Role of LesseesLess-than-freehold estates consist of estates owned by:Understanding Liability in Partnerships: A Key Concept for Your Real Estate ExamThree general partners borrowed money and agreed to be liable for the repayment either individually or collectively. They signed the security instrument:Understanding Liability in VA Loan ForeclosuresIn a foreclosure where a home purchase was made "subject to" an existing VA loan, who would be liable for VA losses?Understanding Licenses, Easements, and Property Rights in California Real EstateA personal, revocable, and unassignable permission of authority to do one or more acts on the land of another, without possessing any interest therein, is the definition of:Understanding Licensing for Trust Deed Sales in California Real EstateIf a broker decided to add to his real estate business and handle the sale of trust deeds, what other kind of license would he have to get?Understanding Licensing Requirements in Business PartnershipsTwo businessmen, an insurance broker and a real estate broker, wish to form a partnership. Which of the following statements is correct?Understanding Liens, Encumbrances, and Zoning in California Real EstateWhich of the following is NOT a lien?Understanding Liens: What You Need to Know for the California Real Estate ExamThe recording of which of the following creates a lien?Understanding Life Estates: Myths and RealitiesOf the following statements concerning a life estate, which is NOT true?Understanding Limited Partners’ Liability in California Real EstateFor a limited partnership, what determines the limited partners' liability?Understanding Listing Agreements: How to Calculate Their DurationThe term on a listing agreement is dated January 7, 2005, through April 5, 2005. This agreement would be for a term of:Understanding Loan Terms: Who Lends the Longest?Which of the following lenders tends to give the longest term on loans?Understanding Loan-to-Value and Interest Payments in Real EstateAn investor purchased a property, financing with a 75% loan-to-value ratio loan. Payments of interest only for the first 6 months was $6,000. Interest rate is 10%. What was the appraised value of the property?Understanding Loan-to-Value Ratio in California Real EstateIf a $52,500 loan was made on a property which was equivalent to 70% of the appraised value, what was the amount of the appraised value?Understanding Loan-to-Value Ratios in California Real EstateThe lower the loan-to-value ratio, the greater the:Understanding Long-Term Real Estate Loans: The Bank AdvantageWhich type of lender is known for offering long-term real estate loans, often up to 30 years?Understanding Manufactured Home Size Requirements in CaliforniaIn addition to being registered for a minimum of one year, manufactured homes sold by real estate agents must be at least _____________ in size.Understanding Manufactured Homes as Real Property in CaliforniaManufactured homes in California are considered real property under which condition?Understanding Manufactured Homes in California Real EstateCalifornia real estate law considers manufactured homes:Understanding Market Price in California Real Estate TransactionsMarket price is:Understanding Market Value in California Real EstateWhich of the following is NOT associated with market value?Understanding Material Changes in California Real EstateWhich of the following would be considered a material change that must be reported to the Real Estate Commissioner after the "final public report" has been issued?Understanding Mechanic's Liens in California Real EstateWhich of the following does NOT constitute completion for purposes of filing a mechanic's lien?Understanding Mechanic's Liens in California Real EstateWhich of the following would NOT be eligible for filing a mechanic's lien?Understanding Mechanic's Liens in California: What Every Handyman Needs to KnowAfter how many days does a handyman lose eligibility to file a mechanic's lien following the recording of a notice of completion?Understanding Mechanics' Liens in California Real EstateWhich type of lien allows a party to claim payment from property itself if they haven't been made whole?Understanding Metes and Bounds: The Key to Land DescriptionsWhich of the following is nearest to a synonym of "metes and bounds"?Understanding Monetary Policy: The Role of the Federal Reserve in Tight MoneyIn a period of tight money, the Federal Reserve Bank can increase the supply of money by:Understanding Monthly Impound Accounts for Fire Insurance PaymentsWhat is the monthly impound account payment for fire insurance for the following? Insured value = $100,000; Rate = $0.40 per $100; 3 yr. premium = 2.5 times annual rate.Understanding Moral Philosophy: A Dive into Ethics"Moral philosophy" best matches:Understanding Mortgage Insurance Premiums on VA LoansTo whom is the Mortgage Insurance Premium (MIP) on a VA loan paid?Understanding Mortgage Loan Disclosure Statements in California Real EstateA broker's loan statement is now called a:Understanding Negotiated Pledge Agreements in California Real EstateMr. Traveler requires $4,000 for a trip and possesses a $10,000 note and T.D. on the Mayor's farm. Mr. Banks agrees to loan the $4,000 in exchange for holding the $10,000 note and T.D. as security. This is an example of a:Understanding Neighborhood Boundaries in Real Estate AppraisalIn appraising a residential property, the appraiser must consider the forces currently influencing the neighborhood. Boundaries of such a neighborhood are best established by:Understanding Neighborhood Impact on Property AppraisalA lending institution hires an appraiser to evaluate a property for loan purposes. Which factor would have the greatest influence on her appraisal?Understanding Neighborhood Values: Factors That Keep Home Prices SteadyValue levels in a residential neighborhood are influenced more by social characteristics of its present and prospective occupants than by any other factor. What would maintain high values in a given neighborhood?Understanding Net Income in California Real Estate EvaluationsNet income is determined by an appraiser using which one of the following?Understanding Net Leases in California Real EstateA net lease may be said to have which of the following characteristics?Understanding Net Leases in Sale-Leaseback ArrangementsIf a lessor wanted a long-term, uncomplicated income from a sale-leaseback arrangement, the type of lease best fitting this requirement would be a:Understanding Net Returns: What Every Real Estate Investor Should KnowAn investor who receives a 9% gross return on a property, and had a 9% interest expense, realized a net return of:Understanding Nominal Interest Rates in California Real Estate TransactionsWhen a lender refers to a "nominal" interest rate, it means:Understanding Non-Specific Liens in California Real EstateWhich of the following is a non-specific (general) lien?Understanding Offers in California Real Estate TransactionsWhich of the following would be considered an offer in a real estate transaction?Understanding Open Listings: Who Gets Paid in Real Estate? An owner gives an "open listing" to many brokers, including "A" and "B." Broker A shows the home to a customer, but does not make a sale. Broker B later sells the home to the same customer. The seller is obligated to pay:Understanding Orientation in California Real EstateWhen a building is positioned on a lot in such a way that it reflects consideration of noise, sun, wind, privacy, and other factors, the act of positioning is called:Understanding Owner Financing in California Real EstateWhat is commonly referred to as in real estate when the seller is taking back a note and T.D. for the balance payable at 12% per annum?Understanding Owner's Equity in California Real EstateAn office building purchased for $200,000 with 25% down and 75% financed had $1,500 per month payments with 12% annual interest. Ten years later, the property sold for $400,000. What is the owner's equity at the sale (includes original investment)?Understanding Ownership in California Real Estate: A Key Concept for Your Success"The right of one or more persons to possess and use something to the exclusion of others" describes:Understanding Ownership in Real Estate: The Case of Abe, Bob, Chuck, and DarenAbe owned two parcels of land, "A" and "B." Abe sold lot "A" to Bob who, before escrow closed, had the escrow officer change the deed to read lot "B." Escrow closed, and documents were recorded. Bob then sold lot "B" to Chuck, who recorded his deed. Subsequently, Abe sold "B" to Daren, who recorded his deed. Who is the owner of lot "B"?Understanding Package Mortgages: The Who, What, and WhyIn which of the following would you use a "package mortgage"?Understanding Payoff Amounts and Interest Payments in California Real EstateWhat would be the final payoff amount if only interest payments were made on a trust deed note of $4,000 after 48 monthly payments at 12% interest?Understanding Penalties for Real Estate Syndicates in CaliforniaA real estate syndicate that fails to disclose a true statement of the condition of title and all encumbrances thereon faces which penalty?Understanding Penalty Payoffs in California Real Estate LoansWhich of the following is a "penalty payoff"?Understanding Percentage Returns in California Real Estate InvestmentsA $2,000 down payment was made on a property, which was purchased for $20,000. The gross return on the purchase price was 9%. The only expense in the transaction was a 7% interest charge. The percentage return on this investment would be:Understanding Percolation Tests: Essential for California Real EstateThe county building inspector would not approve a site ready for construction on a new residence until a "percolation" test had been approved. The latter deals with:Understanding Personal Asset Liability in General PartnershipsIn a general partnership, what happens to the personal assets of a partner when creditors demand repayment?Understanding Physical Deterioration in California HomesWhich type of home would have the greatest physical deterioration compared to its original replacement cost within the first 10 years?Understanding Physical Deterioration in California Real EstateThe ratio of "physical deterioration" of a single-family residence, compared to its original replacement cost, would be greater in the initial 10 years for which of the following?Understanding Planned Developments in California Real EstateBy definition, a planned development is where:Understanding Plot Plans for Real Estate SuccessA detailed plan that includes where a home will be placed on a lot is called a:Understanding Police Power in California Real EstateThe legal purpose of police power is to:Understanding Power of Attorney in California Real Estate TransactionsWhich of the following is NOT true if "A" has been given power of attorney for selling "B's" house?Understanding Prepaid Rent and Tax Reporting for California RealtyThe first and last months' rent payments were collected by the lessor, leasing a single family residence. The prepaid rents received would be reported on income tax:Understanding Price Dynamics in California Real EstateThe price of real property _______ as the value of the dollar decreases. The price of real property _______ as the value of the dollar increases.Understanding Proper Deed Delivery in California Real EstateWhich of the following would constitute a proper delivery of a deed?Understanding Property Appraisals for the California Real Estate ExamWhen appraising residential properties, an appraiser should carefully examine which of the following?Understanding Property Appreciation: What You Need to KnowA buyer recently purchased a property for $150,000. If the cost to sell the property would be 9% of sale price, how much must the property appreciate in value in order for the owner to sell and get his $150,000 out of the sale?Understanding Property Area Measurements in California Real EstateWhat is the area of the parcel described as follows: NW¼ of the SE¼ and the W½ of the NE¼ and the NE¼ of the NW¼ of Section 13; plus the SE¼ of the SW¼ and the SW¼ of the SE¼ of Section 14?Understanding Property Classifications: Real vs. Personal PropertyWhich of the following would complete this (true) statement? Property is:Understanding Property Ownership for Single Persons in CaliforniaTwo single persons desire to take and hold title to property, with the ability to later will their portions to whomever they desire. They should take title as:Understanding Property Ownership: Joint Tenancy and BeyondOne way to jointly hold title to real property is "joint tenancy." Another way would be:Understanding Property Ownership: The Metes and Bounds MethodWhich type of real estate ownership description speaks of property according to boundaries and measurements?Understanding Property Valuation Approaches for Real Estate SuccessWhich approach or approaches would an appraiser use to determine the value of a property?Understanding Property Valuation Methods for the California Real Estate ExamWhich method is NOT commonly used by appraisers to estimate the cost of a property?Understanding Property Value Protection in California SubdivisionsFor a buyer in a new subdivision, which of the following would provide the least amount of protection against loss in value in the subdivision?Understanding Property Values and Purchasing Power in California Real EstateIf the purchasing power of the dollar decreases, the price of property __________. If the purchasing power of the dollar increases, the price of property __________. In both cases, the value of the property __________.Understanding Property Values through Cap Rates and Net IncomeAn investor purchased an income property at $200,000, with a capitalization rate of 10%. If the net income increased by 10% (with NO additional expense), and the "cap" rate increases to 12%, the new value of the property would be:Understanding Proration in California Real Estate TransactionsTo divide equally or proportionately to time of use is to:Understanding Publicly Assisted Housing in California Real EstateWhich of the following would be considered publicly assisted housing?Understanding Quitclaim Deeds in California Real EstateA "quitclaim" deed implies that the:Understanding Re-Zoning: Keys to California Real Estate LawsWhich of the following is not a condition that may be required in re-zoning ordinances attempting to rid an area of nonconforming uses?Understanding Real Estate Investment through Capitalization RateAn investor is considering buying a vacant property and building a building on it which will cost $170,000. Rental income will be $2,700 per month, and annual expenses will be $8,200. What is the maximum he can pay for the land if he uses an 11% capitalization rate?Understanding Real Estate Options: What You Need to KnowAll the following statements about an option given to an optionee for a $1,000 consideration are true, except:Understanding Real Estate Options: What You Need to KnowWhich of the following actions by the Assignee (Mr. C) would result in the option being valid?Understanding Real Estate Reporting Requirements in CaliforniaUpon the sale of how many units or more must the subdivider and new purchaser report the change to the Commissioner?Understanding Real Estate Resale Notifications in CaliforniaThe resale of which of the following would NOT require a notice to the Department of Real Estate (DRE)?Understanding Real Estate Rights: Easements, Judgments, and TaxesWhich of the following is NOT closely related to the others?Understanding Real Estate Syndicate Ownership TypesA real estate syndicate ownership may take the form of:Understanding Real Estate Trends in Relation to Business CyclesA trend in real estate ______________ the recession trends of business, and when business starts a swing upward, real estate ______________.Understanding Real Estate Value: The Appraiser's PerspectiveWhich of the following would best define "Value" according to an appraiser?Understanding Real Property Securities in California Real EstateAll the following statements are incorrect, except:Understanding Real Property Security Endorsements in CaliforniaA real property security endorsement is valid for:Understanding Real Property: A Guide for California Real Estate StudentsWhich of the following is NOT real property?Understanding Rehabilitation in California Real EstateWhen a property is restored to satisfactory condition without changing style, form, or plan, this is known as what?Understanding Rehabilitation in Real Estate RenovationsIf a structure is repaired without changing the interior or exterior design, what is the process called?Understanding Release Clauses in Blanket Trust DeedsWhat's a release clause in the context of a Blanket Trust Deed?Understanding Remedies for Breach of Real Estate Sales ContractIf a buyer breaches a real estate sales contract, the seller may opt for which of the following actions?Understanding Remedies for Discrimination in California Real EstateAn owner has been found guilty of discrimination under the Health and Safety Code. What action can the aggrieved party take?Understanding Replacement Costs in California Real Estate AppraisalsIn the determination for replacement costs of a new property, an appraiser would use all of the following methods, except:Understanding Residence Basis in Federal Tax: Why Patios MatterFor federal income tax purposes, a taxpayer could increase the basis of their residence with which of the following?Understanding RESPA: Key Requirements for LendersAccording to R.E.S.P.A., when must a lender provide a Special Information Booklet and a "Good Faith Estimate" of closing costs for a federally related loan?Understanding Sale and Leaseback: What Matters Most to BuyersIn a sale and leaseback situation, which of the following concerns is least important for the buyer?Understanding Sale-Leaseback Transactions in California Real EstateIn a sale-leaseback transaction, who becomes the new lessee?Understanding Sale-Leaseback Transactions: What You Need to KnowA purchaser in a sale-leaseback transaction would be least concerned about:Understanding Secret Profit in Real Estate EthicsA broker had signed an agreement to locate property for his principal. Having found a property which suited his principal, which could be purchased for less than he was willing to pay, the broker bought the property himself. Later the broker sold the property to his principal at the higher price, keeping the difference for himself. This is considered:Understanding Seller ABLE's Real Estate Deal: A Step-by-Step BreakdownSeller "ABLE" recently sold a property for $141,450, which was 15% more than he paid for it. He held the property for two years, during which time his interest expenses were 10% of his purchase price (5% per year). Taxes were $80 per $1,000 of assessed valuation, and the property was assessed at 25% of the original purchase price. Seller's ownership resulted in a net:Understanding Seller Motivation in California Real EstateWhat primary factor should you assess to gauge a seller's motivation during listing?Understanding Seller Motivation: The Key to Successful Listings in California Real EstateRegulation "Z" requires that those who "extend credit" must make certain disclosures. When taking a listing, what is the most important question to ask?Understanding Seller's Costs in California Real Estate TransactionsA house sold for $120,000 with various fees and costs deducted from the seller's equity of $30,000. What percentage of their equity were the seller's costs?Understanding Senior Liens in California Real EstateWhich of the following would take the position of "senior" lien?Understanding Sewer System Responsibility in California CommunitiesWho is responsible for properly working sewer systems in a community?Understanding Short-Term Loans: Why Commercial Banks Are Your Go-To LendersWhich type of lender prefers short-term and interim loans, where buyer costs are typically higher?Understanding Soil Pipes in Plumbing and Public HealthA soil pipe is used in:Understanding Specific Liens: Key Concepts for California Real EstateWhich of the following groups represent ALL specific liens?Understanding Stock in a Mutual Water Company: A Key to California Real EstateStock in a mutual water company is classified as:Understanding Structural Issues in California Real EstateAn appraiser observes wide cracks in the corner of a basement, spreading up two walls. This was most likely caused by:Understanding Stud Requirements in California Real Estate ConstructionCode requirements for "studding" in single-family units is:Understanding Subletting: Navigating Leasehold Interests in California Real EstateBy what method does a tenant rent out his apartment if he has a leasehold interest in the apartment?Understanding Subordination Clauses in California Real Estate TransactionsA subordination clause written into a 1st trust deed would benefit the:Understanding Tax Basis in California Real Estate TransactionsIf a property for sale is listed at $120,000 and has an outstanding assessment bond of $1,200, what would be the basis for taxes at the time of sale?Understanding Tax Basis in Real Estate TransactionsA loan of $200,000 is placed on a fourplex which has a tax basis of $150,000. Which of the following applies?Understanding Tax Benefits of the 1911 Street Improvement Act for Property OwnersTax benefits regarding bonds issued under the 1911 Street Improvement Act allow property owners to:Understanding Tax Clearance Receipts in California Business SalesWhen a business is sold and taxes are verified as paid by the State Board of Equalization, what is issued to the buyer?Understanding Tax Deductions for Unimproved Land InvestmentFor which of the following could a deduction for income tax purposes be taken when unimproved land is held for investment?Understanding Tax Implications for California Real Estate BrokersA licensed real estate broker, buying and selling many properties for himself, may have his profits taxed as:Understanding Tax Proration in California Real Estate TransactionsSellers sold their residence and closed escrow on Oct. 15. Taxes on the property were $1,400 per year and had not been paid since payment of the last installment of the preceding tax year. What will their tax proration for this escrow be?Understanding Tenancies: The Ins and Outs for Aspiring California Real Estate AgentsA landlord does NOT have to file a notice to terminate when tenancy is:Understanding Tenancy in Real Estate: Your Guide to Ownership TypesIn real estate, the word "tenancy" means:Understanding Tenants in Common: The EssentialsFive people hold undivided interest as tenants in common. Which statement is always true?Understanding Tender in California Real Estate ContractsA buyer offers to perform on his purchase contract. This is known as a:Understanding Termination of Power of Attorney in California Real EstateA power-of-attorney is terminated by:Understanding the Acre in Industrial Real EstateWhat is the primary measure used to gauge the size of industrial building sites?Understanding the Actions of the Real Estate Commissioner in CaliforniaIf the Real Estate Commissioner finds a licensee using a fictitious name or bouncing a check to the DMV, what actions can they take?Understanding the Base of a Foundation in California Real EstateIn a single-family dwelling, the extended (spread out) part of the bottom of the exterior of the foundation is called the:Understanding the Basis of Real Property: Is Maintenance Really That Important?Which of the following would NOT affect the basis of real property?Understanding the Benefits of a General Partnership in California Real EstateOne advantage of operating as a general partnership is that:Understanding the Best Resource for Determining a Home's AgeThe best source for establishing the age of a home would be:Understanding the Broker's Loan Statement in California Real EstateIf a broker procures a loan for a principal for $89,000, the broker would provide which of the following documents?Understanding the Broker's Role in California Real Estate TransactionsA broker arranges the sale of a home with a purchase money trust deed (T.D.) from the lender. The broker is NOT required to see that the T.D. is recorded if the:Understanding the Bundle of Rights in California Real EstateWhat is included in the Bundle of Rights in real estate?Understanding the Bundle of Rights in California Real EstateThe expression "A Bundle of Rights" best describes the rights or interests which an owner has in what they own, including the rights to:Understanding the Concept of a Land Project in California Real EstateA "land project" is best defined as:Understanding the Concept of Rescinding in Real Estate TransactionsTo "rescind" is the same as to:Understanding the Cost Approach in California Real Estate AppraisalAn appraiser would have to be able to identify land values separately in which one of the following appraisal techniques?Understanding the Cost Approach in California Real Estate ValuationAs part of his determination of value by means of the cost approach, an appraiser would employ the market data approach to determine the:Understanding the Cost Approach in Real Estate AppraisalWhen appraising land and improvements separately using the cost approach, what method is utilized?Understanding the Cost Comparison of Two-Story vs. One-Story HomesHow does the cost of a two-story house generally compare to a one-story house of the same living space area?Understanding the Cost Dynamics of One-Story vs. Two-Story HousesIf other factors are equal, how are the costs of a two-story house and a one-story house related?Understanding the Cost Method for Appraising Amenity-Type PropertiesAmenity type properties are appraised most often by which of the following methods?Understanding the CRV Process in VA LoansWhich of the following would issue a CRV when asked to approve a new loan?Understanding the Declaration of Homestead in CaliforniaOn which of the following properties may one file a valid Declaration of Homestead?Understanding the Declaration of Restrictions in SubdivisionsWhat is the written instrument used to create land use restrictions for the benefit of the owners in a new subdivision?Understanding the Definition of a Manufactured Home Park in California Real EstateUnder real estate law, a manufactured home park is defined as:Understanding the Difference Between Easements and Licenses in Real EstateWhat is a key difference between an easement and a license?Understanding the Different Types of Appraisal Reports in California Real EstateOf the following types of appraisal reports, which would be the most detailed?Understanding the Due-on-Sale Clause in MortgagesWhat does a ‘due-on-sale’ clause in a mortgage require?Understanding the DUST in California Real EstateWhat valuable elements are represented by the acronym "DUST"?Understanding the Economics of Subdivision DevelopmentIn the development of a subdivision of single-family homes, which of the following would be the least economical?Understanding the Elements of a Valid Contract in California Real EstateAll valid contracts must contain the following elements or characteristics, except:Understanding the Essential Elements of Value in California Real EstateThe four essential elements of value are:Understanding the Essential Role of Zoning Laws in Real EstateWhat is the purpose of zoning laws?Understanding the Essentials of a Bill of Sale in California Real EstateWhich of the following is not necessary in a bill of sale?Understanding the Essentials of a Valid Lease Agreement in CaliforniaA valid lease need NOT contain:Understanding the FHA's Role in Home Quality ImprovementSelect the statement that correctly describes the FHA's role in home quality improvement.Understanding the Financial Efficiency of Office BuildingsThe appraiser's primary measure of the efficiency of an office building plan is:Understanding the First Step in the Appraisal ProcessThe initial step in the appraisal process is to:Understanding the Forces That Shape Property Value in CaliforniaWhich of the following would NOT be considered a major force influencing property value?Understanding the Four Unities of Market Value in California Real EstateWhich of the following represent the four unities of market value?Understanding the Goals of the Fair Housing ActThe Fair Housing Act aims to achieve all of the following EXCEPT:Understanding the Grantor Role in Real Estate TransactionsWho is the grantor in a real estate transaction?Understanding the Gross Income Appraisal Technique in California Real EstateWhich of the following would appraisers least likely use the "gross income" appraisal technique?Understanding the Gross Multiplier in California Real EstateThe Gross Multiplier is an arbitrary number employed by appraisers in the evaluation of certain types of income property. It is calculated in which of the following ways?Understanding the Gross Multiplier in Property AppraisalWhat does the use of a gross multiplier in property appraisal imply?Understanding the Gross Multiplier in Real Estate ValuationWhen real property is leased to various tenants, appraisers find it helpful to use a gross multiplier, which is founded upon:Understanding the Gross Rent Multiplier in Real Estate"Gross multiplier" is used to determine the value of certain types of income properties. It is determined by:Understanding the Impact of Moisture on Basement WallsIf a house shows wide cracks in the basement walls, this is typically due to:Understanding the Impact of Owner-Occupied Homes on Local EconomiesOwner-occupied homes in a residential area have an immediate effect on the local economy in which of the following ways?Understanding the Impact of Rising Interest Rates on Owner's EquityWhen interest rates increase but net income remains unchanged, the value of an owner's equity tends to:Understanding the Importance of a Clearance Receipt in Business TransactionsWhen a business has been sold, and the State Board of Equalization has verified that all required taxes are paid, what document is issued to the buyer?Understanding the Importance of a Preliminary Title Report in California Real EstateWhat is the primary purpose of a preliminary title report?Understanding the Importance of Feasibility Studies in Land DevelopmentBefore beginning a land development project, which analysis should be conducted first?Understanding the Importance of the Notice of Cessation in California Real EstateCessation for 30 days must accompany an owner's filing of:Understanding the Importance of the Notice of Default in California Real EstateA request for a "Notice of Default" on a first trust deed is for the benefit of the:Understanding the Income Approach in California Real Estate ValuationThe income approach to appraisal requires the selection of an accurate capitalization rate because:Understanding the Income Approach to Property ValuationIn the "income" approach to value, the recapture of capital invested in the improvements is provided for by:Understanding the Income Approach to Property ValuationThe income approach to valuation requires the measurement of, and the provision for, future depreciation. For this purpose, an appraiser would use all of the following methods, except:Understanding the Income Approach to Value Income PropertyWhich of the following describes a method to value income property based on the net income it produces?Understanding the Influence of Cap Rates on Property ValuationA property valued at $550,000 has a capitalization rate of 10%. The net income is $55,000. If the "cap rate" increased to 11%, what would be the adjusted value of the property?Understanding the Initial Steps in Responding to Code Violations in California Real EstateWhen a real estate licensee has been accused of a Code violation, what is the initial step for the Commissioner in initiating the hearing procedure?Understanding the Key Differences: Conventional Loans vs. FHA LoansA conventional loan would differ from an FHA loan in that the conventional loan would have:Understanding the Licensing Process for Selling Franchises in CaliforniaWhich department may issue a license for selling franchises under the Franchise Investment Law?Understanding the Licensing Requirements for Franchise Sales in CaliforniaIt is unlawful for any person to affect the sale of any franchise that is regulated by the Franchise Investment Law, unless such person has made an application to the Corporation Commissioner, and is licensed by the:Understanding the Manufactured Home Act and Disciplinary ActionsUnder the Manufactured Home Act, which of the following would NOT be grounds for disciplinary action?Understanding the Power of the Real Estate Commissioner in CaliforniaThe Real Estate Commissioner has the power to investigate, suspend, or revoke the license of a licensee if they have been found guilty of:Understanding the Principle of Change in Real Estate AppraisalIn the appraising of real estate, there are several "principles of value." Of the following, which most clearly describes the "Principle of Change"?Understanding the Principle of Regression in Real EstateWhich of the following most clearly describes the "Principle of Regression"?Understanding the Purpose of Real Estate Appraisals in CaliforniaAn appraiser must be careful to distinguish the fundamental purpose of the appraisal from which of the following?Understanding the Quality of Income in Real Estate AppraisalQuality of income is an important factor in making an appraisal. It is best expressed in which of the following statements?Understanding the Quantity Survey Method for Property AppraisalsWhich appraisal method is considered the most detailed and accurate?Understanding the Relationship Between Business and Real Estate CyclesWhen the business cycle is in the prosperity phase, the real estate cycle is in a phase of:Understanding the Replacement Cost Method in Real Estate AppraisalWhy is the replacement cost method of appraisal preferable for new buildings compared to old buildings?Understanding the Reproduction Cost Method in Real Estate AppraisalAn appraiser, when using the reproduction cost method on property which has been improved with fences, shrubs, trees, lawns, and sidewalks, should always:Understanding the Role of a "Dealer" in California Real EstateAccording to the IRS, who is considered a "dealer" in real property?Understanding the Role of a Corporation's Seal in Business TransactionsA corporation "seal" is evidence of:Understanding the Role of an Attorney-in-Fact in California Real EstateIf one person has the authority to act on matters for another, including the right to bind on contractual matters, that person is known as the:Understanding the Role of Assignment of Rents in Real Estate Loans"Assignment of rents" in a loan or trust deed:Understanding the Role of Fannie Mae in Home LoansWhat is the primary purpose of the Federal National Mortgage Association (FNMA)?Understanding the Role of FHA in Low-Cost Rental HousingWhich of the following is primarily responsible for the considerable increase in low cost rental housing for low income groups?Understanding the Role of Health Officers in Community Well-beingWhat should a health officer ensure concerning a community?Understanding the Role of Real Property Security in California Real EstateWhich of the following can contain the Real Estate Commissioner's recommendation for sales?Understanding the Role of Realtists in California Real EstateThe members of the National Association of Real Estate Brokers are called:Understanding the Salesperson-Client Relationship in California Real EstateAccording to the Real Estate Commissioner, the relationship between the salesperson and the client should ideally mirror which of these relationships?Understanding the Seller's Cost of Sale in California Real EstateA home sold for $150,000 on which the seller was to pay a 6% brokerage fee. Additional costs were: 2% prepayment penalty on an existing loan balance of $102,800, escrow fees of $210, and new loan discount fee of $534. The seller's cost of sale will be what percent of gross equity?Understanding the Sequence of Legal Proceedings in California Real EstateWhich of the following would come first?Understanding the Significance of Baselines in Land SurveyingBase lines run:Understanding the Statute of Frauds in Real Estate AgreementsAccording to the statute of frauds, which of the following agreements does NOT need to be in writing to be enforceable?Understanding the True Purpose Behind Real Estate AppraisalsWhen establishing value by "appraisal," it is necessary to recognize the difference between the function of the appraisal and:Understanding the Truth-in-Lending Law for California Real Estate StudentsThe Truth-in-Lending Law applies to which of the following?Understanding the Truth-in-Lending Law: What's Not Required to be Disclosed?What is NOT required to be disclosed under the Truth-in-Lending Law?Understanding the UCC: Debunking Misconceptions about Commercial LawThe Uniform Commercial Code revised, combined, and replaced many statutes and laws, including:Understanding Title Ownership in California Real EstateIf the manner of taking title is not indicated on a grant deed after the names of the two grantees, how would the courts rule?Understanding Townships and the Public Land Survey System in CaliforniaA plot of land that is 30 miles square contains how many townships?Understanding Trading on Equity in Real Estate InvestmentsAn investor needed cash for additional investments, and "took out" a loan against his property. His interest payment on this new loan was less than the net return he was realizing on the property. This is an example of:Understanding Trust Account Shortages in California Real EstateBroker A accepted a deposit from Buyer B with an offer on a property, and promptly deposited the Buyer's check into his Trust Account. Seller rejected the offer and Buyer demanded the deposit back—immediately. Broker wrote check to Buyer from Trust Account, but later learned that Buyer's original check had not cleared due to insufficient funds. Which of the following statements is correct?Understanding Trust Deeds and Calculating Payoffs in Real Estate TransactionsA real estate broker lends his own money to Buyer to aid in purchasing a home. The note is for $4,000, and will be secured by a trust deed on the purchased property. The note interest rate is 12% per year, with monthly payments of $40. Final payoff will be on the 48th monthly payment. Which of the following is true?Understanding Truth-in-Lending Law Exemptions for HomeownersUnder the Truth-in-Lending Law, which advertiser is exempt from detailed disclosure requirements?Understanding Truth-in-Lending Regulations: What Every Homeowner Should KnowAdvertising regulations of the Truth-in-Lending Law apply to all of the following, except:Understanding Turn-Key Projects in California Real EstateWhich of the following best describes a ‘turn-key’ project in real estate?Understanding Unearned Increment in Property AppraisalUnearned increment is considered in the appraisal of income producing property. What is the best example of unearned increment?Understanding Unearned Increment in Real Estate ValueIf the value of a property increases through no efforts, thinking, or planning on the part of the owner, what is such an increase called?Understanding Unlawful Detainer Actions in California Real EstateAn unlawful detainer action may be filed by a landlord in all but one of the following situations. Which is it?Understanding USPAP: Key Ethical Standards for AppraisersAn appraiser would NOT be in violation of the USPAP if he:Understanding VA and FHA Lending Criteria for California Real EstateWhich of the following lenders would NOT be approved (respectively) by VA or FHA?Understanding VA Loans: What to Do When Your Offer Exceeds Appraised ValueMr. Soldier wants to purchase a home on his VA entitlement. The asking price is $100,000. The VA "CRV" came back at $98,750. Which of the following statements is correct?Understanding VA Loans: What to Know for Your Real Estate JourneyA buyer has purchased a residence for $100,000 utilizing VA entitlement to finance the entire purchase price. The interest rate = 12%; combined monthly payments for 30 years will accumulate to be $370,300. What will be the initial month's principal payment?Understanding Voidable Real Estate Contracts in CaliforniaA real estate contract is voidable if the purchaser:Understanding Waivers in Real Estate: A Vital Concept for Your CareerA waiver is defined as a:Understanding What to Do with a $5,000 Deposit in California Real EstateBroker "U" receives a $5,000 deposit with an offer to purchase one of his personal listings priced at $100,000. The escrow is to close in one week, and the seller has agreed to pay a $5,000 commission for any sale. The seller instructs Broker "U" to place the deposit into escrow. What should Broker "U" do?Understanding Who Can Access a Broker's Trust Account in California Real EstateWho can make withdrawals from a broker's trust account?Understanding Wide Cracks in Basement Walls: Causes and ImplicationsIf an appraiser observes wide cracks in the walls of a basement, the probable cause is:Understanding Wills: Bequeathing, Bequests, and DevisesWhich of the following is NOT related to a "will"?Understanding Your First Monthly Payment in California Real EstateA buyer purchased a residence for $225,000, with 12% down, and the seller is taking back a note and T.D. for the balance, payable at 12% per annum. Monthly payments were to be $520 principal plus interest. Taxes are $2,700 per year and hazard insurance is $804 per year. What will be the buyer's 1st monthly payment plus monthly amounts for the impound account for taxes and insurance?Understanding Your Return on Real Estate InvestmentsAn investor put $10,000 down on a property purchased for $100,000. He received a 9% gross return on the purchase price and had a 9% interest expense on the loan amount as his only expense. What was the percentage return on his investment?Understanding Your Rights as a Trustor After a Default NotificationIf Notification of Default was filed on July 15 and publication of sale was started on Oct. 15, the right of the Trustor after Oct. 15 is:Understanding Your Role as a Salesperson Under a Broker in CaliforniaTo work as a salesperson under another broker, what must a licensed broker do?Understanding Zoning Violations in Real Estate TransactionsAfter moving into a home with a standard policy of title insurance, a buyer discovers that the roof eave is only two feet from the property line, while the zoning requirement is five feet minimum. How much can the buyer collect?Unlocking the Value of Vintage Homes: A Look at Appraisal MethodsIn determining today's value of a single-family residence built in 1930, an appraiser would most likely:Unpacking Adverse Possession: What You Really Need to KnowAll of the following are necessary for obtaining title to a property by "adverse possession," except:Unpacking Real Estate Inheritance Terms in CaliforniaWhich type of property term is related to inheritance rather than sales transactions?Valuing Unique Architecture: The Appraiser's ApproachIf an appraiser were called upon to evaluate a public building with unique and distinctive architecture, which method of valuation would he use?What Every Broker Should Do After a Property ShowingAfter a broker shows a client's property to a prospective buyer, the broker should:What Happens to Lease Options When Assigned?If an option exists in a lease, what generally happens if the lease is assigned to another party?What Happens to Partnerships When a Partner Passes Away?If a partner dies in a partnership, the surviving partner:What Happens to Real Estate Commissions After a Broker's Death?At the time of his death, Broker "A," a licensed real estate broker, had 18 listings. He left his estate to his son, "B," who is also a licensed real estate broker. If "B" wants to collect any commissions on the sales of the 18 listings, he must:What Happens When Property is Sold after a Book Sale in California?When a property is sold and not redeemed within 5 years after a "book sale" to the state, what happens?What the California Real Estate Commissioner handles and what isn’t in their laneWhat would the California Commissioner of Real Estate not handle?What to Do When a Seller Breaches an Exclusive Listing AgreementA broker obtained an exclusive listing to sell a piece of property. He spent much time, money, and energy. The seller refused to allow the broker to proceed under the agreement. The broker should:What to Do with Buyer Deposits in California Real Estate TransactionsWhat should a real estate broker do with a $10,000 deposit received from a buyer along with a purchase offer and instructions from the seller to place it into escrow?What You Need to Know About Down Payments and Loan Amounts in California Real EstateA 12% down payment on a residence of $225,000 results in what monthly amount being subjected to interest?What You Need to Know About Dual Agency in California Real EstateAn agent may represent both parties in a transaction, providing he:What You Need to Know About Real Property Security in CaliforniaAccording to California law, which of the following is NOT considered a real property security?What’s a “Walkup”? Understanding Real Estate Terms in CaliforniaIn real estate terms, what does a "walkup" refer to?When calculating net income for an office building, think about management expenses like a tenant acting as manager in lieu of rentWhen computing the net income of an office building, an appraiser would consider, as a management expense, which of the following?When Can a Real Estate Broker Skip Recording a Trust Deed?Under what circumstances would a real estate broker be excused from recording a trust deed?Who Regulates California Real Estate? Discover the Role of the CommissionerWho has the authority to promulgate reasonable rules and regulations in California Real Estate?Why a Pump and Well Are Considered Property ImprovementsOn a property, a pump and well would be considered:Why Accounts Receivable Can't Secure Your Loan: An Insight for California Store OwnersA clothing store owner could NOT use which of the following as security for a loan?Why Are Property Taxes Rising? Understanding Maintenance CostsWhat is one reason why property taxes in recent years have shown steady increases?Why Equity Assets Are Your Best Defense Against InflationThe best hedge against inflation would be:Why Heavy Bonded Indebtedness Attracts Large Investors in Real EstateIn an area with heavy bonded indebtedness and high property taxes, what might an appraiser conclude?Why Investment is Key in California Real Estate SalesWhen selling a reasonably priced, well-established home in a classy, suburban neighborhood, the broker would probably gain the most interest in:Why Lenders Love Anchor Tenants in Shopping Center FinancingThe lender would place the most emphasis on which of the following features when financing a new, large-scale shopping center?Why Real Estate Appraisers Are Essential for Federal Loan TransactionsWhich of the following may value real estate for a federally related loan transaction?Why Recording a Deed Matters in California Real EstateBy recording a deed with the County Recorder's Office, one:Why Secondary Mortgage Markets Matter to Lenders and InvestorsWho can benefit from secondary mortgage markets?Why Separate Trust Accounts are Essential for Real Estate BrokersThe primary reason for maintaining funds in a trust account separate from the broker's general account is to:Why Suburban Land is a Goldmine for DevelopersWhy is suburban land preferable to urban land for development purposes to a land developer?Zoning Regulations and Property Condemnation in California: What You Need to KnowWhen would zoning regulations be applicable in respect to property condemnation?

More practice questions

These questions are part of the practice quiz. Start practicing

Real estate brokers and salespeople are authorized to engage in listing and selling certain manufactured homes which have been registered with the Department of Housing and Community Development for a minimum of:
In determining local property taxes on a property:
Considering the "Interstate Land Sales Full Disclosure Act," which of the following is NOT true?
A valid appraisal practice requires an appraiser to avoid:
What should a buyer do if they find undisclosed issues with a property after purchase?

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