Get a monthly subscription for just $24.99! Visit www.RealtyKeyCA.com for more exclusive offers! After subscribing, please email us at [email protected] to activate your access. This step is essential for us to set up your subscription account on our website. To set up your account, please include: Your email Your preferred username for our site Your chosen password (Optional) Proof of payment for your subscription We typically create accounts within minutes, but please allow up to 24 hours. Thank you! —James You will download an instruction file from this website with steps to access our online guides, which can be viewed on computers, tablets, and phones. Please note that the guides are view-only and cannot be downloaded. We have helped countless customers successfully pass. Buyer Josephine had just signed a contract on a house when she discovered that seller's agent Franklin knew that this house was 3500 square feet, but he listed it at 3900 square feet. Which essential contract element has been compromised? Consent Consideration Legal purpose Offer and acceptance An acre of land costs $15,000. Jerry would like to purchase four acres. How much will this cost? $100,000 $15,000 $3,750 $60,000 Janice's life tenant, Jacob, is currently living on her property. Once Jacob dies, Janice has made arrangements that the property will go to the School for the Gifted. What interest does the School for the Gifted currently have? Ownership Possession Remainder Reversionary ______ is the legal concept of property ownership. Certificate of occupancy Deed Title Will Burt is an unrepresented buyer of Sima's home. Sima's listing agent is Aubrey. Who's the client in this transaction? Burt Burt and Aubrey Burt and Sima Sima Assume you're entering into an agreement with a client to help him look for a property to call his own. What type of contract will you use to identify your agency relationship's terms? Buyer agency agreement Option agreement Purchase contract Sales contract A(n) ________ is a set of guidelines for ethical conduct. Code of ethics Contract Option Rule book Shawn has agreed to pay $275,000 for his new home, with a $30,000 earnest money deposit. His bank is loaning him 80% of the appraised value of $350,000. In addition, the settlement costs he's required to pay amount to 6% of the purchase price. If you wanted to calculate how much additional money Shawn needs to bring to closing, which of these would be a good place to start? Calculate 5% of $295,000. Calculate the difference between purchase price and settlement costs. Calculate the loan amount that Shawn will receive from the bank. Figure out why Trish's agent doesn't renegotiate the purchase price based on the appraised value. Which of the following is an example of a limited agent? Attorney Escrow officer Facilitator Transactional broker. Who's responsible for conducting the closing meeting? The broker The buyer The closing agent The seller What's a brownfield? An abandoned or unused commercial or industrial site with suspected contaminants A partially restored residential area A special use landfill A wild space saved from development Which of the following actions does the secondary mortgage market commonly take? Issues loans to consumers. Purchases loans from lending institutions. Regulates lending institutions. Sets interest rates. What is the legal effect on the purchase agreement if an attached contingency is rejected or not met? The agreement has to be renegotiated. The contract is voidable. The party who failed to meet the contingency must pay a fine. The party who rejected the contingency must offer an alternative. What type of agency exists because of the actions and behavior of the parties? Action agency Behavioral agency Express agency Implied agency As part of the license application, prospective appraisers must submit ________. A fingerprint card An employment bond Performance reviews Physical exam results Along with your two siblings, you have a one-third interest in your childhood home. You've all decided to put the house on the market and you'll serve as the listing agent. What must you disclose to parties to the sale? Nothing, since you own less than 50% That the house is an estate with its owner in a nursing home That you have a financial interest in the house That your siblings will take much less than the list price A subdivision that includes space for offices, shopping centers, movie theaters, and apartment buildings is an example of a _________________. Converted-use development Cooperative Mixed-use development Planned unit development Shawn specializes in the sale of retail stores and shopping centers. What types of properties are these? Commercial Industrial Residential Special purpose Which of the following items go into the seller's credit column and the buyer's debit column? Credits Debits Prepaids Prorations Which of the following are addressed by the Subdivided Land Act? Development requirements Financing requirements Labor requirements Reporting requirements Which term refers to the ordinances/regulations that protect the community and control property development within subdivisions? Environmental impact statement Plat book Subdivision plat Subdivision regulations Which of the following statements about restrictive covenants is true? They are permanent and follow the land forever. They are temporary and have a specific time limit. They may run with the land forever, or they may have a time limit. They must last at least 30 years. Donna rents an apartment in a building that's being converted to condominiums. By law, the owner of the building must give Donna ________. 10 days' notice before evicting her The option to buy her unit or continue as a tenant for a specified period of time The option to buy the unit at a reduced price The option to continue renting the unit at a reduced rate Marvin purchased the right to use a resort unit for two weeks every year, although he doesn't own the property itself. What kind of timeshare is this? Divided timeshare Right-to-use timeshare Timeshare estate Timeshare in perpetuity Which option best defines voluntary alienation? A person dies without a will. A property is taken from a property owner due to failure to pay real property taxes. A property owner intentionally transfers property to another. Someone takes possession of another's property by adding a previous claim to their own. In how many states is undisclosed dual agency legal? 18 38 All 50 Zero What is a lifetime cap, as it relates to an adjustable rate mortgage? The number of percentage points that are added to the index to determine the rate The value that limits the amount that interest can adjust at the mortgage's first interest rate adjustment The value that limits the amount the rate can adjust at subsequent adjustment dates The value that limits the amount the rate can adjust over the life of the loan Which document is provided to borrowers no fewer than three days prior to closing and provides details about the costs of the transaction? Closing Disclosure Escrow Closing Notice Loan Estimate Mortgage Servicing Transfer Disclosure What is typically used to prove there are no encroachments on the property? Abstract of title Chain of title Deed Survey Which of the following is a right included with real property? Contamination Encroachment Exclusion Hazardous acts Sue, the seller, and Carl, the buyer, are preparing to close on their transaction. Who is responsible for reviewing the settlement statement before closing? Carl only Sue and Carl Sue only Sue's and Carl's attorneys How do predatory lenders take advantage of consumers? Making loans to consumers who can't afford them Not selling their loans on the secondary market Selling their loans on the secondary market Underwriting loans Dominique purchased a timeshare that conveys the right to occupy the property for two weeks each year, continuing for 20 years. However, the timeshare does not convey ownership. This is an example of a ______ timeshare. Estate for life Fee simple ownership Renewable Right-to-use Only brokers may do which of the following? Conduct brokerage activities Hold open houses Receive compensation directly form buyers or sellers Work directly with buyers and sellers Which essential element of a deed contains the words, "does hereby bargain, grant, deed, and convey?" Acknowledgment Conveyance Delivery and acceptance Recording What does procuring cause refer to? A condition that must be met in order for a contract to be legally binding An uninterrupted series of events that results in a successful transaction Compensation for loss, damage, or injury caused Failure to perform an act agreed upon by all parties If Elizabeth is a property manager, she is acting as what of type of agent? Dual General Special/specific Unlicensed Which of these describes a deed? Abstract of title Ownership document Promissory note Recording fee What happens to a joint tenant's share of property when the joint tenant dies? The joint tenant's interest goes to the remaining joint tenants. If only one joint tenant is left, that joint tenant owns the property in severalty. The property must be sold, with the proceeds from the joint tenant's share distributed to heirs. The tenancy remains, but the joint tenant's interest passes to heirs. The tenancy terminates, and the joint tenant's share goes to the state. Which of the following statements about covenants is true? A bargain and sale deed will always come with covenants of warranty. Every conveyance comes with a fully warrantied title. The full covenant and warranty deed contains the strongest and broadest form of guarantee of title. The "full covenant" typically means three covenants are included. Which of the following opinions can a real estate licensee provide? An opinion regarding the appraisal value of a property An opinion regarding the effect of breaking an existing agreement to accept a new offer An opinion regarding the listing price An opinion regarding whether a roof needs to be replaced A dwelling is in untenantable if it substantially lacks A heating unit Transfer of all of a tenant's rights under a lease is An Assignment If a landlord wants to increase the rent on a unit that is regulated by the Tenant Protection Act of 2019, what's the maximum allowed as an annual increase? 5% plus the cost of living Malcolm loves his apartment, even though he's rarely there. His job in international development has him on the road for months at a time. He doesn't have to worry about missing out on his lease renewal though, because he has a(n) _____________ Periodic Estate Eric's residential tenant hasn't paid rent for more than three months, and so Eric went to court to start eviction proceedings. He's now been granted the right to remove the tenant. This is a(n) _________________ eviction. Actual A security deposit on furnished residential property can be no more than 3 month's rent A retail business has a percentage lease based on 5% of gross income of up to $25,000 per month and 2 1/2% of gross income above that amount. The minimum to be paid is $1,000 per month. For a month in which the business has a gross income of $47,000, what will be the rent payment? $1,800 The owner of 417 Main, an office building, receives a guaranteed monthly income from her tenants and pays no expenses. She has A Net Lease Which of these landlords had filed an unlawful detainer suit? Chet tried to kick his tenant out, but he would not leave, so he's started eviction proceedings. A landlord has a right of entry In an Emergency Buyer Penelope adores the house at 212 Maple Street, but two weeks after making her offer, she's discovered it's got some issues that weren't identified on the state-required seller disclosure form. She still wants to buy the house. Since the seller appears to have lied on the disclosure form, what can Penelope do? Ask the seller to make the repairs needed, or ask for a credit to cover the cost of those repairs. Because the seller lied on the disclosure forms, the purchase contract is invalidated, so Penelope must make a new offer. Complete the transaction, then sue the seller for fraud. Reduce the amount of her offer Jose, who is 16, entered into a contract to sell a condo he owned. Because Jose is a minor, ______. Either Jose or the buyer may void the contract due to Jose's minority It makes no difference; if he signed the agreement, he must abide by it Only Jose may void the contract The contract is void Which of these is a system that many states use to determine lien priority? First in time, first in right Government payments come last Largest lien has first priority Mortgage liens before judgment liens What's the definition of a land contract? Buyers purchase a piece of undeveloped land. Land owners divide their land into parcels. Property owners lease their land to someone else, who develops the property. Sellers provide funds or credit to buyers in order to close the transaction. Where is a complaint against a licensee filed? On the Real Estate Commission's Web site. With a co-worker of the licensee With the licensee themselves With the supervising brokerage Which of the following is true about condominium ownership? A condo is a multi-family dwelling. A condo is a single-family dwelling. It involves proprietary leases. There is a large yard to maintain. What's a subordination agreement? It's a document that's produced by the court during bankruptcy trials that states the order of payment for creditors. It's an agreement that a previous lender signed allowing a later lender to take over the primary, or first, loan position. It's an agreement that borrowers sign to determine the order or priority for lien holders against their property. It's an agreement the lender signs saying it will provide title to the property to the borrower when the loan is paid off. Which act gives companies the right to sue a competitor for making deceptive ad claims? The Gramm-Bliley Act The Lanham Act The Privacy Act The Truth in Advertising Act What's a benchmark? A permanent reference point for marking datums The beginning point for lot and block surveys The beginning point for metes and bounds surveys The beginning point for rectangular surveys You have clients who are interested in purchasing a property in a floodplain. As their agent, what do you want to ensure they are aware of? That resale will be difficult because the home is in a floodplain. The client will not need flood insurance. The house most definitely has the potential for some kind of flood damage in the next 100 years. Their lender may require flood insurance, which may affect the affordability of the home. What type of ground lease allows a tenant to buy out the lease? Conceivable Irretrievable Redeemable Retrievable Lenders will require which type of fund for taxes and insurance? Balloon fund Emergency fund Mortgage fund Reserve fund In order for you to earn compensation for brokerage activities, you must be employed as the agent of the client. How is this employment accomplished? The client must be a buyer. The client must make an express agreement to pay a commission to your broker. You must be employed by a broker. You must express an interest in representing the client. A broker's price opinion is generally written by ______. A buyer An appraiser A real estate broker for a buyer A real estate broker for a lender In states without full disclosure requirements, whose responsibility is it to review disclosures, ask questions, and obtain a home inspection? Buyer Licensee representing the buyer Licensee representing the seller Seller A good way for real estate licensees to prevent problems at the closing is to ____________. Check up on the other party in the transaction so they don't forget anything Communicate frequently with your client and make sure they know what to do Show up early Work only with a known, trusted settlement officer Whose responsibility is it to keep track of all buyer contingency deadlines and ensure they're not missed? The buyer The buyer and the buyer's agent The seller The seller and the seller's agent Which term refers to a permitted deviation from current zoning restrictions that allows an owner to use land for a purpose that's otherwise prohibited, and requires the owner to prove the zoning creates an unnecessary hardship? Moratorium Property variance Special use permit Use variance Assigning a lower-density use zone to an area that previously allowed higher density and that may reduce property values is known as ______. `Bulk zoning Density-reduction zoning Downzoning Reduction zoning Mortgage lenders will ___________ Not use the FICO score, only their personal judgment Only use the FICO score to determine creditworthiness of the applicant Sometimes extend credit, even when a FICO score is low Weigh poor credit from the past the most heavily, even if FICO scores have improved The location of wetlands and springs at a development site is part of ______. Development cost Development impact TDR Topography Which loan type is a fixed-rate mortgage where the monthly payments increase over time, according to a set schedule? Blanket Growing equity Negative amortization Pledged account Octogenarians Gertie and Frank met in Sunset Living, a skilled nursing center for people with advanced Alzheimer's disease, where they're both residents. They fell in love and get hitched, signing a marriage certificate. This is an example of a(n) ______ contract. Executory Implied Invalid Valid What's a foreclosure? A property sale that occurs in less than one week A sale that fails to receive a high enough bid at auction and then falls to the bank's ownership The forced sale of a property due to the borrower defaulting on the mortgage loan The sale of a property when the market value of the home is less than what is owed, plus closing costs _______ can be defined as everything that's not real property. Land property Personal property Private property Real estate Which of the following items must be included in the security instrument used for a real estate transaction? Borrower credit report Legal description of the property Lender disclosures Title insurance abstract Which of the following statements best describes a mortgage broker? An institution that focuses on commercial lending An institution that specializes in taking in savings deposits then lends money out as loans and mortgages A person who works for a specific lender and can offer products from that particular institution A person who works with multiple lenders to find the product that works best for the client