Core Exam Prep 2 Real Estate

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  • 1/150 Questions

    “As Is” is permitted when:

    • A buyer is fully informed about known defects before bind to contract
    • Only if buyer asks for a transfer disclosure
    • The property is finance through a private investor
    • Only if the property needs major repairs
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About This Quiz

The 'Core Exam Prep 2 Real Estate' quiz assesses knowledge in real estate law, focusing on joint tenancy, mortgages, and contractual disputes. It prepares learners for real estate licensure and enhances understanding of property rights and legal implications in real estate transactions.

Core Exam Prep 2 Real Estate - Quiz

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  • 2. 

    Which of the following may be attached to the land:

    • Trees

    • Buildings

    • Water rights

    • All of the above

    Correct Answer
    A. All of the above
    Explanation
    All of the options listed (trees, buildings, water rights) can be attached to the land. Trees can be considered attached to the land as they are rooted in the ground. Buildings are physically attached to the land as they are constructed on it. Water rights refer to the legal rights to use water from a specific source, which can also be attached to the land. Therefore, all of the options mentioned can be attached to the land.

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  • 3. 

    Consideration may be in the form of:

    • Trust deed

    • Promissory note

    • Cash

    • All of the above

    Correct Answer
    A. All of the above
    Explanation
    The correct answer is "All of the above" because consideration can be in the form of a trust deed, promissory note, or cash. Consideration refers to something of value that is exchanged between parties in a contract, and it can take various forms. In this case, all three options mentioned (trust deed, promissory note, and cash) can be considered as valid forms of consideration in a contract.

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  • 4. 

    A dual agency is permitted when:

    • Buyer and Seller agree to it

    • Buyer agrees to it

    • Seller agrees to it

    • By lenders approval

    Correct Answer
    A. Buyer and Seller agree to it
    Explanation
    A dual agency is permitted when both the buyer and the seller agree to it. This means that both parties are aware and consent to the same real estate agent or brokerage representing both sides of the transaction. This arrangement can be beneficial for the agent or brokerage as they can earn a higher commission, but it can also present potential conflicts of interest. Therefore, it is important for both the buyer and seller to fully understand and agree to the dual agency before proceeding with it.

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  • 5. 

    A contingency in a contract is:

    • Nature of the contingency

    • Duration of the contingency

    • Method how to remove the contingency

    • All of the above

    Correct Answer
    A. All of the above
    Explanation
    A contingency in a contract refers to an uncertain event or condition that may occur in the future, which could affect the terms and performance of the contract. The nature of the contingency refers to the specific event or condition that is uncertain, such as a natural disaster or a change in market conditions. The duration of the contingency refers to the period of time during which the event or condition may occur and impact the contract. The method to remove the contingency refers to the actions or steps that need to be taken to address and mitigate the impact of the contingency on the contract. Therefore, all of the above options are correct in describing different aspects of a contingency in a contract.

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  • 6. 

    Which of the following must be given to a buyer of a condominium unit?

    • Copy of the CC and R’s

    • Copy of the by laws

    • Copy of the most recent financial statement of the association

    • All of the above

    Correct Answer
    A. All of the above
    Explanation
    A buyer of a condominium unit must be given a copy of the CC and R's (Covenants, Conditions, and Restrictions), which outline the rules and regulations of the condominium association. They must also be given a copy of the bylaws, which specify how the association is governed. Additionally, the buyer must receive a copy of the most recent financial statement of the association, providing information about the financial health of the association. Therefore, all of the above documents must be given to the buyer of a condominium unit.

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  • 7. 

    Which of the following is misrepresentation?

    • Material to contrary

    • Information known by the broker that is false

    • False information to bind a buyer to a contract

    • All of the above

    Correct Answer
    A. All of the above
    Explanation
    The correct answer is "All of the above". This means that all of the options listed - material to contrary, information known by the broker that is false, and false information to bind a buyer to a contract - are examples of misrepresentation. Misrepresentation refers to providing false or misleading information that can deceive or mislead someone, leading to a misunderstanding or harm. In this case, all three options involve providing false information or withholding important information, which can be considered misrepresentation.

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  • 8. 

    A master plan shows:

    • Streets and freeways

    • Residential and commercial zoning

    • Safety

    • All of the above

    Correct Answer
    A. All of the above
    Explanation
    A master plan shows all of the above - streets and freeways, residential and commercial zoning, and safety. This means that a master plan includes the layout and design of streets and freeways, the allocation of areas for residential and commercial purposes, and considerations for safety measures. It is a comprehensive plan that encompasses all these aspects to guide the development and organization of a particular area or community.

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  • 9. 

    The construction industry is regulated by:

    • State housing law

    • Local building codes

    • Contractors license law

    • All of the above

    Correct Answer
    A. All of the above
    Explanation
    The construction industry is regulated by state housing law, local building codes, and contractors license law. State housing law establishes regulations and standards for housing construction and ensures the safety and quality of housing. Local building codes specify the requirements for construction projects within a specific jurisdiction, such as building materials, structural integrity, and fire safety. Contractors license law mandates that contractors obtain a license to ensure they meet certain qualifications and standards in their work. Therefore, all of these regulations play a role in regulating the construction industry.

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  • 10. 

    On August 5th, a buyer gave broker Gutierrez a personal check for $1,000 made  payable to the seller.  The buyer instructed broker Gutierrez that the check should be  held un-cashed until August 30th.  Broker Gutierrez must do following:

    • Not accept the deposit

    • Return the deposit to the buyer

    • The broker may accept the deposit and instruct the seller that the check has to be held until August 30th

    • Do not accept personal checks

    Correct Answer
    A. The broker may accept the deposit and instruct the seller that the check has to be held until August 30th
    Explanation
    The correct answer is that the broker may accept the deposit and instruct the seller that the check has to be held until August 30th. This is because the buyer specifically instructed the broker to hold the check until that date. By following the buyer's instructions, the broker is acting in accordance with the agreement between the buyer and seller.

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  • 11. 

    A commission to an agent may be in the form of:

    • Note

    • Trust deed

    • Cash

    • All of the above

    Correct Answer
    A. All of the above
    Explanation
    A commission to an agent can be given in different forms such as cash, trust deed, or a note. These forms of payment provide flexibility to both the agent and the party providing the commission. Cash is the most common form of payment as it is easily transferable and can be used immediately. Trust deeds and notes are more complex forms of payment that involve legal agreements and future payments. By offering all of these options, the party providing the commission can cater to the preferences and needs of the agent.

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  • 12. 

    Which of the following report is the most complete report?

    • Narrative report

    • Form report

    • Letter report

    • Neighborhood data

    Correct Answer
    A. Narrative report
    Explanation
    A narrative report is the most complete report because it provides a detailed and comprehensive account of events, experiences, or observations. It typically includes a clear introduction, body paragraphs that present information in a logical sequence, and a conclusion that summarizes the main points. This type of report allows for a thorough analysis and interpretation of data or information, providing a comprehensive understanding of the topic being discussed. In contrast, a form report is usually a standardized document that collects specific information, while a letter report is a more concise and focused report that is typically written in letter format. Neighborhood data is not a type of report, but rather refers to specific information about a particular area or community.

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  • 13. 

    Riparian rights is the right of owners who are located on borders of:

    • River and streams

    • Bays and arms of the sea

    • Subterranean cavities

    • All of the above

    Correct Answer
    A. River and streams
    Explanation
    Riparian rights refer to the legal rights and privileges that owners of land located along rivers and streams have. These rights include the use and access to the water for domestic, agricultural, and recreational purposes. Bays and arms of the sea, as well as subterranean cavities, are not included in riparian rights. Therefore, the correct answer is "River and streams."

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  • 14. 

    Property may be substituted by: 

    • Design

    • Earnings

    • Use

    • Any of the above

    Correct Answer
    A. Any of the above
    Explanation
    The term "property" can refer to various things depending on the context. It can refer to physical objects such as land or buildings (design), it can refer to the income or profits generated from a business or investment (earnings), or it can refer to the purpose or function of something (use). Therefore, property can be substituted by any of the above options depending on the specific situation or interpretation.

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  • 15. 

    Which of the following is not a valid reason for the seller to terminate an exclusive  listing?

    • The broker’s license was revoked

    • The seller declared bankruptcy

    • One of the seller’s relatives gets a real estate license and the seller wants her to have the listing

    • The broker was declared mentally incompetent after signing the listing

    Correct Answer
    A. One of the seller’s relatives gets a real estate license and the seller wants her to have the listing
    Explanation
    One of the seller's relatives getting a real estate license and the seller wanting her to have the listing is not a valid reason for the seller to terminate an exclusive listing. The validity of a reason for termination typically depends on factors such as legal issues, financial situations, or the broker's competence. However, the seller's personal preference for a specific relative to have the listing is not a valid reason that would justify terminating the exclusive listing agreement.

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  • 16. 

    A man owns six separate parcels of real property.  He wants to offer all of the parcels as  security for a mortgage loan.  The mortgage that he obtains will probably be: 

    • A mortgage

    • A trust deed

    • Blanket mortgage

    • Security mortgage

    Correct Answer
    A. Blanket mortgage
    Explanation
    A blanket mortgage is the most likely type of mortgage that the man will obtain because he wants to offer all six parcels of real property as security for the loan. A blanket mortgage allows multiple properties to be used as collateral for a single loan, providing flexibility for the borrower. This is different from a trust deed, which involves a third party holding the property as security, and a security mortgage, which is a general term that can refer to any mortgage secured by property.

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  • 17. 

    The owner of land owns riparian rights to water on, under, or adjacent to the land in  which of the following:

    • Oceans and bays

    • Rivers or streams

    • Underground caves with water

    • All of the above

    Correct Answer
    A. Rivers or streams
    Explanation
    The owner of land owns riparian rights to water on, under, or adjacent to the land in rivers or streams. Riparian rights refer to the legal rights of a landowner to use and access water from a river or stream that flows through or borders their property. These rights typically include the right to use the water for domestic purposes, irrigation, and livestock watering, as well as the right to maintain the natural flow of the water. The owner does not automatically have riparian rights to water in oceans and bays or underground caves with water.

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  • 18. 

    If the seller presented the hazard disclosure statement to the buyer, which of the  following is true: 

    • The seller is not obligated to disclose anything else other than the report

    • No other disclosure is needed

    • The buyer must agrees to the content disclose in the hazard disclosure statement

    • Seller and seller agent are obligated to disclose any material hazard for which they are aware

    Correct Answer
    A. Seller and seller agent are obligated to disclose any material hazard for which they are aware
    Explanation
    The correct answer is that the seller and seller agent are obligated to disclose any material hazard for which they are aware. This means that if the seller or seller agent knows about any potential hazards or risks associated with the property, they must disclose this information to the buyer. Simply presenting the hazard disclosure statement is not sufficient, and they cannot withhold any other relevant information. It is their responsibility to provide full disclosure to the buyer.

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  • 19. 

    Which of the following is a violation of Federal Housing Law according to periodic  tenancy?

    • Requiring first month rent in advance

    • Acquiring co-signers for unmarried persons only

    • Acquiring good credit rating

    • Acquiring references from previous landlords

    Correct Answer
    A. Acquiring co-signers for unmarried persons only
    Explanation
    Acquiring co-signers for unmarried persons only is a violation of Federal Housing Law according to periodic tenancy because it discriminates against unmarried individuals based on their marital status. Federal Housing Law prohibits discrimination in housing based on protected characteristics such as marital status. Therefore, requiring co-signers only for unmarried persons would be considered discriminatory and a violation of the law.

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  • 20. 

    The authority that prohibits an agent to do an act of fraud is found in:

    • Business and professions code

    • Listing agreement

    • Real estate office conduct

    • Based on advantage of an agent to sell the property

    Correct Answer
    A. Business and professions code
    Explanation
    The correct answer is the Business and Professions Code. This code serves as the authority that prohibits an agent from engaging in fraudulent activities. It outlines the rules and regulations that agents must adhere to in order to maintain ethical conduct in the real estate industry. By referencing this code, agents are able to understand their responsibilities and obligations when it comes to preventing fraud and acting in the best interest of their clients.

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  • 21. 

    Eminent Domain may be exercised by:

    • Cities

    • Public utilities

    • Public education

    • Any of the above

    Correct Answer
    A. Any of the above
    Explanation
    Eminent Domain may be exercised by any of the entities mentioned in the options, including cities, public utilities, and public education. Eminent Domain is the power of the government to take private property for public use, provided that just compensation is given to the property owner. This power can be exercised by various government entities, depending on the specific circumstances and needs of the public. Therefore, any of the options mentioned in the question could potentially exercise the power of Eminent Domain.

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  • 22. 

    A hispanic wants to be shown property in certain neighborhoods.  The real estate agent  should:

    • Show him properties as any other client

    • Show him properties only in areas he decides to

    • Provide information about the ethnicity of the neighborhood

    • Show properties in areas where Hispanic population is greater

    Correct Answer
    A. Show him properties as any other client
    Explanation
    The correct answer is to show him properties as any other client. This is the most fair and unbiased approach, treating the Hispanic client the same as any other client. It is important for real estate agents to provide equal service to all clients, regardless of their ethnicity or background.

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  • 23. 

    Buyer and seller decided to cancel the transaction.  The seller instructed the broker to  return the buyer’s deposit.  The broker should: 

    • Return the deposit and sue buyer for his commission

    • Return only half of the deposit to the buyer

    • Return the deposit as instructed

    • The agent may collect his commission in court from the seller

    Correct Answer
    A. Return the deposit as instructed
    Explanation
    The correct answer is to return the deposit as instructed. In this scenario, the buyer and seller have mutually agreed to cancel the transaction. As a result, the seller has instructed the broker to return the buyer's deposit. The broker's responsibility is to follow the seller's instructions and return the deposit accordingly. There is no mention of the broker suing the buyer for their commission or collecting the commission in court from the seller, so these options are not relevant in this situation.

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  • 24. 

    Deed covenants that limit the conveyance of properties to persons of the minority group,  these restrictions:

    • Have no effect on the conveyance covenant and are unenforceable

    • Are enforceable if buyers prefer to have them

    • Are valid only buyer and seller may cancel them

    • May be cancel by escrow

    Correct Answer
    A. Have no effect on the conveyance covenant and are unenforceable
    Explanation
    Deed covenants that limit the conveyance of properties to persons of the minority group have no effect on the conveyance covenant and are unenforceable. This means that these restrictions cannot be legally upheld and do not impact the ability to transfer the property to anyone, regardless of their minority status.

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  • 25. 

    John entered into a right to sell listing with Broker Otis.  John gave Otis $100 to  advertise the property.  The payment of the $100 to Otis must:

    • Deposit in the trust account and use for the purpose intended

    • Hold towards his commission

    • Not necessary to deposit in the trust account if it is less than $200

    • None of the above

    Correct Answer
    A. Deposit in the trust account and use for the purpose intended
    Explanation
    The correct answer is to deposit in the trust account and use for the purpose intended. This is because when John gave Otis $100 to advertise the property, it is considered as a payment that needs to be deposited in the trust account. The trust account is used to hold funds that belong to clients or customers and should be used only for the specific purpose intended, in this case, advertising the property.

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  • 26. 

    Broker Marshall sold to Sanders a property AS IS.  Marshall and seller knew about  problems with the plumbing.  Sanders after close of escrow discovered the problems  with the plumbing.  If the buyer wants to seek legal proceedings, he will be:

    • Successful because the duty to disclose material fact cannot be avoided by AS IS

    • Not successful because the property was sold AS IS

    • The buyer’s responsibility is to hire a professional home inspector

    • As Is provisions the buyer must accept the property on its present condition

    Correct Answer
    A. Successful because the duty to disclose material fact cannot be avoided by AS IS
    Explanation
    The correct answer is successful because the duty to disclose material fact cannot be avoided by AS IS. Even if a property is sold "AS IS," the seller still has a legal obligation to disclose any material defects or problems with the property. In this case, both the broker and the seller were aware of the plumbing problems and failed to disclose them to the buyer. Therefore, the buyer would have grounds to seek legal proceedings against them.

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  • 27. 

    Which of the following is a fiduciary relationship?

    • Buyer to seller

    • Landlord to tenant

    • Sellers to appraisal

    • Agent to principle

    Correct Answer
    A. Agent to principle
    Explanation
    A fiduciary relationship is a legal relationship in which one party (the agent) is entrusted with the responsibility to act in the best interests of another party (the principal). In this case, an agent is someone who is authorized to act on behalf of the principal and has a duty to act in the principal's best interests. Therefore, the correct answer is "Agent to principle".

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  • 28. 

    Hanson wants to buy a property and talks to Broker Cohen about that particular  property that he wants to buy.  Broker Cohen contacts the property owner and tells  him that Hanson wants to buy his property.  The owner tells the broker that the  property is not for sale.  Three months later, Hanson found out that the seller entered  into a purchasing contract with Hanson.  Under this circumstances broker Cohen:

    • Sue for his commission

    • Sue for his time and labor

    • Get pays a finders fee

    • Entitle to nothing

    Correct Answer
    A. Entitle to nothing
    Explanation
    Broker Cohen is not entitled to anything because the property owner explicitly stated that the property is not for sale. Even though Hanson later entered into a purchasing contract with the seller, it was not due to any efforts or involvement of the broker. Therefore, the broker cannot claim any commission, time and labor compensation, or finder's fee.

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  • 29. 

    Under the real estate law, if an agent is found guilty of discrimination, the real estate commissioner will:

    • Revoke or suspend the agent’s license

    • Cancel the license for 150 days

    • Suspend the license for 3 months

    • Suspend the license for 1 year

    Correct Answer
    A. Revoke or suspend the agent’s license
    Explanation
    Under real estate law, if an agent is found guilty of discrimination, the real estate commissioner has the authority to revoke or suspend the agent's license. This means that the agent's license to practice real estate can be completely taken away or temporarily suspended as a consequence of their discriminatory actions. This is a serious penalty that serves as a deterrent and ensures that agents adhere to fair housing laws and do not engage in discriminatory practices.

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  • 30. 

    Broker Hadley took a listing from Watanabe for 30 days.  Watanabe gave instructions  to Hadley that he could purchase the property himself.  After the 27th day, Hadley  decided to buy the property.  Broker Hadley present to the seller: 

    • His Interest on the property

    • The net amount to the seller

    • Commission disclosure

    • All of the above

    Correct Answer
    A. All of the above
    Explanation
    Since Hadley took a listing from Watanabe and had the option to purchase the property himself, he would need to disclose his interest in the property to the seller. Additionally, as the broker representing the seller, Hadley would need to disclose the net amount that the seller would receive from the sale, as well as any commission that Hadley would earn from the transaction. Therefore, all of the options listed (His Interest on the property, The net amount to the seller, Commission disclosure) would need to be presented by Hadley to the seller.

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  • 31. 

    The agent who will earn a commission is the one that:

    • Signed the purchase agreement

    • Communicated offer and acceptance from seller to buyer

    • Communicated the offer to the seller

    • Accepted a deposit first

    Correct Answer
    A. Communicated offer and acceptance from seller to buyer
    Explanation
    The agent who will earn a commission is the one that communicated the offer and acceptance from the seller to the buyer. This means that the agent played a crucial role in facilitating the agreement between the two parties, ensuring that both the seller and the buyer were in agreement with the terms of the offer. By effectively conveying this information, the agent demonstrated their value in the transaction and therefore is eligible to earn a commission.

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  • 32. 

    Followings will determine if an item is a fixture or not, except:

    • Intention

    • Agreement

    • Cost

    • Relationship

    Correct Answer
    A. Cost
    Explanation
    The cost of an item does not determine if it is a fixture or not. The determination of whether an item is a fixture or not is based on factors such as intention, agreement, and relationship. The cost of the item is not relevant in this determination.

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  • 33. 

    A sale of a property through probate, the commission will determine by:

    • Court ordered

    • Real estate commissioner

    • Board of directors

    • The administrator

    Correct Answer
    A. Court ordered
    Explanation
    In the sale of a property through probate, the commission is determined by a court order. This means that the court has the authority to decide the amount of commission that will be paid to the relevant parties involved in the sale. The court takes into consideration various factors such as the complexity of the case, the efforts put in by the parties, and any applicable laws or guidelines. The court order ensures a fair and equitable distribution of commission in accordance with the legal requirements and the specific circumstances of the probate sale.

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  • 34. 

    Broker Taylor listed a property for $55,000 with instruction from the seller that the  minimum down payment not to exceed 23%.  The broker then presented an offer with  all cash and the seller rejected the offer.  With this circumstance:

    • The seller can turn down the offer without liability and pay no commission because the offer did not meet the requirements in the listing

    • The broker is entitle to a full commission

    • The broker is entitle to a commission based on the appraised value

    • The broker is entitle only to a 23% of the appraised value

    Correct Answer
    A. The seller can turn down the offer without liability and pay no commission because the offer did not meet the requirements in the listing
    Explanation
    The correct answer is that the seller can turn down the offer without liability and pay no commission because the offer did not meet the requirements in the listing. This means that since the offer was all cash and did not meet the minimum down payment requirement of not exceeding 23%, the seller has the right to reject it without any consequences or obligation to pay commission to the broker.

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  • 35. 

    As to ethics, the best guidelines to determine if an action is ethnical will be found in  which of the following: 

    • The “Realtor’s Golden Rule.”

    • The Business and Professions Code.

    • The conduct of other real estate agents in your office.

    • What is in the best interest of the

    Correct Answer
    A. The Business and Professions Code.
    Explanation
    The Business and Professions Code is the best guideline to determine if an action is ethical because it provides a set of laws and regulations that govern professional conduct in various industries, including real estate. These laws and regulations are designed to ensure that professionals act in a manner that is fair, honest, and in the best interest of their clients. By following the guidelines outlined in the Business and Professions Code, real estate agents can make informed decisions and uphold ethical standards in their practice.

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  • 36. 

    Amezcua was asked to disclose her ethnicity in the loan application:

    • Sue the real estate broker

    • Refuse to disclose the portion of the loan application

    • Must fill in the entire application including the ethnicity disclosure

    • Do nothing

    Correct Answer
    A. Refuse to disclose the portion of the loan application
    Explanation
    The correct answer is "Refuse to disclose the portion of the loan application." This answer suggests that Amezcua should not disclose her ethnicity in the loan application. This could be because disclosing one's ethnicity should not be a requirement for a loan application, as it could potentially lead to discrimination or bias. By refusing to disclose this information, Amezcua is standing up for her rights and ensuring that she is not unfairly treated based on her ethnicity.

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  • 37. 

    When a broker is representing both buyer and seller on an exchange transaction and  doesn’t disclose his dual agency.   The remedy of the parties is:

    • No commission

    • Cancel the transaction

    • Sue for criminal and civil action

    • All of the above

    Correct Answer
    A. All of the above
    Explanation
    When a broker represents both the buyer and seller on an exchange transaction without disclosing their dual agency, it is considered a breach of fiduciary duty. In this situation, the remedy for the parties involved is to not pay any commission to the broker, cancel the transaction, and potentially pursue legal action by suing for criminal and civil charges. All of these options are available to the parties as a means to address the broker's failure to disclose the dual agency, protect their interests, and seek compensation for any damages incurred.

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  • 38. 

    When appraising an old residential property in regards to periodic tenancy:

    • Compare to rentals and comparables in the area

    • Determined by square footage

    • According to the type of neighborhood

    • Obtained from the assessor’s value

    Correct Answer
    A. Compare to rentals and comparables in the area
    Explanation
    When appraising an old residential property in regards to periodic tenancy, it is important to compare it to rentals and comparables in the area. This allows the appraiser to assess the property's value based on similar properties in the same location and rental market. By comparing to rentals and comparables in the area, the appraiser can determine a fair and accurate value for the property.

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  • 39. 

    A contract replaced entirely by a new one is known as:

    • Amendment

    • Replacement

    • Novation

    • Renew

    Correct Answer
    A. Novation
    Explanation
    Novation refers to the act of replacing an existing contract with a new one, where the rights and obligations of the parties involved are transferred to a new set of parties. This means that the original contract is entirely replaced by the new one, with no amendments or modifications made to the original terms. Therefore, the correct answer is Novation.

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  • 40. 

    A clause on a trust deed that agrees to be on a lower position is known as:

    • Acceleration clause

    • Subordination clause

    • Or more clause

    • Agreement clause

    Correct Answer
    A. Subordination clause
    Explanation
    A subordination clause is a clause in a trust deed that agrees to be on a lower position. This means that in the event of default or bankruptcy, the subordinated party will be paid after the higher-ranking parties have been paid. This clause is often included in loan agreements to protect the interests of the primary lenders and ensure that they are repaid before any subordinate creditors.

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  • 41. 

    An agency relationship is represented by: 

    • Oral agreement

    • Written agreement

    • Assignment

    • Commission agreement

    Correct Answer
    A. Written agreement
    Explanation
    A written agreement represents an agency relationship because it provides a clear record of the terms and conditions agreed upon between the principal (the person authorizing the agent to act on their behalf) and the agent (the person authorized to act on behalf of the principal). A written agreement helps to establish the rights, responsibilities, and obligations of both parties, ensuring clarity and minimizing misunderstandings. It also serves as evidence in case of any disputes or legal issues that may arise during the course of the agency relationship.

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  • 42. 

    The Federal Fair Housing Law declares a United States policy of: 

    • Eliminating prejudice throughout the United States.

    • Building houses for minority groups throughout the United States.

    • Guaranteeing separate but equal housing in all of the states.

    • Providing Fair Housing for persons throughout the United States.

    Correct Answer
    A. Providing Fair Housing for persons throughout the United States.
    Explanation
    The correct answer is "Providing Fair Housing for persons throughout the United States." The Federal Fair Housing Law aims to ensure equal access to housing for individuals in the United States, regardless of their race, color, religion, sex, national origin, familial status, or disability. This law prohibits discrimination in the sale, rental, and financing of housing, and promotes fair housing practices to eliminate prejudice and ensure equal opportunities for all individuals.

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  • 43. 

    Buyer and seller entered in a contract and the buyer asks the broker to move into the  property before closing of escrow, the broker must: 

    • Obtain written consent from the owner

    • Give the buyer a temporary lease

    • The agent may give the buyer oral permission

    • Obtain written consent from the buyer

    Correct Answer
    A. Obtain written consent from the owner
    Explanation
    The correct answer is to obtain written consent from the owner. In a situation where the buyer asks the broker to move into the property before closing of escrow, the broker must obtain written consent from the owner. This is important to ensure that all parties involved are aware and in agreement with the arrangement. Written consent provides a clear record of the agreement and helps to avoid any misunderstandings or disputes in the future.

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  • 44. 

    A broker must have in writing of any employments with which of the following:

    • Secretaries

    • Janitorial Employees

    • Real estate staff

    • All of the above

    Correct Answer
    A. All of the above
    Explanation
    A broker must have in writing the employment agreements with secretaries, janitorial employees, and real estate staff. This is important to ensure clarity and protection for both parties involved. Having written agreements helps to outline the terms and conditions of employment, including roles, responsibilities, compensation, and any other relevant details. It also serves as a legal document that can be referred to in case of any disputes or misunderstandings. Therefore, it is necessary for a broker to have written employment agreements with all of the mentioned categories of employees.

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  • 45. 

    What State agency would be a consumer contact in order to obtain a written report  disclosing the presence of wood destroying organisms?

    • Department of Real Estate

    • Department of Corporations

    • Department of Housing and Development

    • Structural Pest Control Board

    Correct Answer
    A. Structural Pest Control Board
    Explanation
    The correct answer is the Structural Pest Control Board. This agency would be the appropriate contact for obtaining a written report that discloses the presence of wood destroying organisms. The other options, such as the Department of Real Estate, Department of Corporations, and Department of Housing and Development, are not specifically related to pest control or wood destroying organisms.

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  • 46. 

    Which of the following policies covers all the risks?

    • Homeowners insurance

    • Extended policy

    • Standard policy

    • No policy covers everything

    Correct Answer
    A. No policy covers everything
    Explanation
    No policy covers everything means that none of the mentioned policies provide coverage for all risks. This implies that each policy has its limitations and exclusions, and there is no single policy that can protect against all possible risks. Therefore, individuals may need to consider multiple policies or additional coverage options to adequately protect themselves against various risks.

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  • 47. 

    When comparing real property to personal property:

    • Immovable by law

    • Movable

    • Personal exclusively

    • Transferable by a bill of sale

    Correct Answer
    A. Immovable by law
    Explanation
    Real property refers to land and any permanent structures attached to it, such as buildings or houses. It is considered immovable by law because it cannot be easily transferred or moved from one location to another. On the other hand, personal property refers to movable assets that can be physically transferred, such as vehicles, furniture, or jewelry. Therefore, the correct answer is "Immovable by law" as it distinguishes real property from personal property based on their transferability.

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  • 48. 

    A binding contract represents:

    • Offer and delivery

    • Offer and acceptance

    • Acceptance from buyer

    • Acceptance from seller to seller’s agent

    Correct Answer
    A. Offer and acceptance
    Explanation
    A binding contract represents the mutual agreement between two parties, where one party makes an offer and the other party accepts it. This implies that both parties have reached a consensus on the terms and conditions of the contract, creating a legally enforceable agreement. The offer and acceptance are essential elements of a binding contract, as they demonstrate the intention of the parties to be bound by the terms of the agreement.

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  • 49. 

    A brother and sister owned a property as joint tenants.  The brother died penniless and  left unsecure debts, the title to the sister is now:

    • Tenants in common

    • Free and clear of debts from the brother

    • Lien on the property from the debts from the brother

    • To pay only half of the brother’s debts

    Correct Answer
    A. Free and clear of debts from the brother
    Explanation
    When two individuals own a property as joint tenants, they each have an equal share and right to the property. In this scenario, the brother's death does not affect the sister's ownership of the property. Since the brother died penniless and left unsecured debts, those debts do not transfer to the sister. Therefore, the sister is now the sole owner of the property, free and clear of any debts from the brother.

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Quiz Review Timeline (Updated): Mar 21, 2023 +

Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.

  • Current Version
  • Mar 21, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • Dec 07, 2011
    Quiz Created by
    Slynch1783

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