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Tom Felde Practice Final Examination Crash Course

2. Which of the following would be appurtenant = to land?

A. Anything acquired by legal r= ight that is to be used = with the land for its benefi= t B. A right of way over another owner's adjoining land

C. Stock in a mutual water company

•D. All of the above

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Tom Felde Practice Final Examination Crash Course

= 3. Which of the following is classified as personal property?

A. A dwelling

• B. A mortgage

C. An easement

D. Riparian rights

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Tom Felde Practice Final Examination Crash Course

= 4. An appraiser using the cost m= ethod may use the unit cost per square foot or cost per cubic foot in his <= span style=3D'font-family:"Times New Roman";mso-ascii-font-family:"Times New Ro= man"'> computations. On a unit basis:

A. A small house would cost les= s than a large house

B. A large house would cost mor= e than a small house

C. A small house would cost mor= e than a large house

D. The cost of a small house and= a large house would be the same

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Tom Felde Practice Final Examination Crash Course

= 5. All of the following would ha= ve an effect on the final estimate of value when making an appraisal <= span style=3D'font-family:"Times New Roman";mso-ascii-font-family:"Times New Ro= man"'> of an old family residence ex= cept:

A. Purpose of the appraisal = ;

B. Suitability of the residence= to the site

C. Physical condition of the building

•D. Original cost of the residence

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Tom Felde Practice Final Examination Crash Course

6. The process of expressing anticipated future benefits of ownership in dollars and discounting them to a present worth at a rate which is attracting purchase capital to similar investments is called:

A. Projection

B. Yield evaluation =

C. Equity Manipulation

•D. Capitalization

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Tom Felde Practice Final Examination Crash Course

= 7. To alienate title to property means to:

A. Secure an ALTA policy of tit= le insurance

B. Cloud the title

C. Record a homestead

•D. Convey title

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Tom Felde Practice Final Examination Crash Course

= 8. Most of the junior loans tha= t are available today are secured through:

A. Savings and loan association= s

•B. Private investors

C. Commercial banks =

D. Mortgage bankers

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Tom Felde Practice Final Examination Crash Course

9. The main benefit for the len= der under FHA financing over conventional financing is the:<= /span>

•A. Mortgage insurance

B. Higher yield

C. Ease of sale in the secondary money market

D. Higher loan to value ratio&#= 13;

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Tom Felde Practice Final Examination Crash Course

10. Mrs.= King borrowed money using a fully-amortized loan to finance the remodeling of her real property. If equal monthly payments include both principal and <= /span>= interes= t, the amount of the payment on the principal <= span style=3D'mso-tab-count:1;width:8.6%'> will:

A. Incre= ase at a constant amount

B. Decline while the amount credited to interest increases

C. Cause= the amount credited to interest to remain constan= t

•D. Increase while the amount cr= edited to interest decreases

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Tom Felde Practice Final Examination Crash Course

<= span style=3D'font-family:"Times New Roman";mso-ascii-font-family:"Times New Ro= man"'>11. When appraising a house buil= t in 1930, the appraiser would use which of the following to = <= span style=3D'font-family:"Times New Roman";mso-ascii-font-family:"Times New Ro= man"'> estimate the cost new:

A. A national cost index adjuste= d to 1930

B. Actual cost of construction = in 1930

•C. Current replacement or reproduction cost <= /div> D. Current cost adjusted by the= 1930 cost of living index

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Tom Felde Practice Final Examination Crash Course

12. If the Federal Reserve wants = to increase the amount of money available to member banks to <= /span>= ease a tight money market it = could:

A. Raise the discount rate to its member banks

•B. Lower the minimum reserves required by its member banks

C. Raise the minimum reserves required by its member banks

D. Sell government bonds

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Tom Felde Practice Final Examination Crash Course

13. When a real estate broker sp= eaks of "tax shelter" he could be referring to:

A. Depreciation allowance on in= come property

B. An installment sale of property

C. A tax deferred exchange =

•D. Any of the above

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Tom Felde Practice Final Examination Crash Course

14. A standard title insurance policy insures against:

•A. A recorded deed in the chain of title that was not = properly delivered

B. Claims of persons in possess= ion of the property

C. Easements by prescription = ;

D. Losses sustained on improved property only

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Tom Felde Practice Final Examination Crash Course

15. Under which of the following circumstances <= span style=3D'font-family:"Times New Roman";mso-ascii-font-family:"Times New Ro= man"'> would a deed be void?

A. Grantor uses a name that is = not his true name

•B. The grantee is a fictitious person

C. The spelling of the name of = the grantor in the body of the deed differs from that in the signature&#= 13;D. The grantee is sufficiently described in the deed but he is not named therein

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Tom Felde Practice Final Examination Crash Course

16. When a document is signed by officers acting on behalf of their corporation= , a seal is attached which:

A. Makes it eligible for recording

B. Shows that consideration has = been paid

•C. Implies authority of person signing

D. All of the above

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Tom Felde Practice Final Examination Crash Course

17. The person who most likely wo= uld make use of the legal remedy known as "Unlawful Detainer&quo= t; = would be a:

A. Trustor

B. Holder of a note in default&#= 13;

•C. Lessor

D. Grantor

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Tom Felde Practice Final Examination Crash Course

18. Carlson borrowed $60,000 to finance the = purchase of his home. The trend of gradual economic inflation will aff= ect the outstanding balance of the loan to the:

A. Benefit of the beneficiary&#= 13;

B. Benefit of the trustee

•C. Benefit of the trustor

D. Disadvantage of the benefici= ary and the trustor

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Tom Felde Practice Final Examination Crash Course

19. In respect to your understanding of an = appurtenant easement, all o= f the following are true except:

•A. It is a burden on the servient tenement and a = benefit to the dominant tenement

B. It is capable of being transferred

•C. It must involve adjoining properties

D. The dominant and servient te= nement cannot be under the same ownership

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Tom Felde Practice Final Examination Crash Course

20. Which of the following parties would hold a less-<= span style=3D'font-family:"Times New Roman";mso-ascii-font-family:"Times New Ro= man"'> than-freehold estate?

•A. A lessee

B. A dominant tenement

C. A beneficiary

D. A mortgagee

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Tom Felde Practice Final Examination Crash Course

21. Which of the following would constitute an "estate" in real property?

A. An easement

•B. A lease

C. A mortgage

D. All of the above =

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Tom Felde Practice Final Examination Crash Course

22. Which of the following state agencies is empowered to prevent acts of discrimination in housing accommodations in California because of race, color, religion, natio= nal origin or ancestry?

A. Real Estate Commission <= /span>

B. Labor Commission <= /div>

•C. Department of Fair Employment and Housing =

D. Division of Housing

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Tom Felde Practice Final Examination Crash Course

23. Rezoning often involves ridding the area of nonconforming use. The means utilized may <= span style=3D'position:absolute;top:29.25%;left:5.99%;width:88.2%;height:6.0%'>= involve all of the followin= g, except:

A. Prohibition against rebuilding

B. Prohibition against expanding=

•C. Retroactive zoning ordinances

D. Amortization provisions terminating use within a reasonable time

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Tom Felde Practice Final Examination Crash Course

24. In the event there is no provision in the escrow instructions with regard to a termination date, the parties to the escrow have:

A. 30 days

B. 60 days

•C. A reasonable time

D. As long as either desires

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Tom Felde Practice Final Examination Crash Course

25. A valid bill of sale need not contain:

A. The name of the buyer

•B. An acknowledgment

C. A description of the property=

D. Signature of seller

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Tom Felde Practice Final Examination Crash Course

26. When a purchase money deed of trust is used to = obtain a loan from an institutional lender, the trustor:

A. Holds the deed to trust =

B. Receives a note for the amou= nt borrowed

•C. Signs a note for the amount borrowed

D. Loans the funds

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Tom Felde Practice Final Examination Crash Course

27. The maximum amount of income which rental = property can be expected to produce is known as:

A. Effective gross income <= /span>

•B. Gross scheduled income

C. Net operating income

D. None of the above

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Tom Felde Practice Final Examination Crash Course

28. A deed of trust and note given to a seller to = finance the purchase of vaca= nt land on which the buyer intends to place a short-term construction <= span style=3D'font-family:"Times New Roman";mso-ascii-font-family:"Times New Ro= man"'> loan would most likely cont= ain:

A. An alienation clause

B. An "or more" clause=

•C. A subordination clause =

D. A prepayment penalty clause&= #13;

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Tom Felde Practice Final Examination Crash Course

29. Smith purchased a home from Brown which had a conventional loan secured b= y a trust deed on the property. Sm= ith wanted to assume the loan. The = beneficiary agreed to the assumption and a substitution of liability. If this should happen:

•A. Brown is relieved from all liability

B. Brown is primarily liable, S= mith secondarily liable

C. The assumption has no effect= on Brown's liability

D. Smith is primarily liable but Brown is a surety

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Tom Felde Practice Final Examination Crash Course

30. The Subdivision Map Act requires:

•A. Delivery of a copy of the Real Estate <= span style=3D'position:absolute;top:31.25%;left:11.42%;width:97.75%;height:6.0%= '> Commissioner's Public Report= to all prospective purchasers

B. The subdivider to prepare a tentative map and file it with the city or county

C. Insertion of release clauses = in all blanket mortgages covering subdivision property D. Submission of proposed sales contracts for subdivision lots that a local governing agency had approved

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Tom Felde Practice Final Examination Crash Course

31. The one unity in a joint tenancy holding that is also present in a tenancy-in-common holding is:

•A. Equal right of possession

B. Right of survivorship

C. Equal interests of all owners=

D. Tenant in possession can be charged rent for the use of the land

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Tom Felde Practice Final Examination Crash Course

32. When subdivides develop subdivisions, they place certain restrictions o= n each of the lots. Of these, experience has shown= which of the following is least likely to be enforced:

A. Minimum size for each lot= 3;

B. Minimum limits on the amount= of dollars allowed for improvements on each lot

C. Minimum limits on the square footage of each home •D. Limitations on the number of stories or total = = height of structures<= /span>

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Tom Felde Practice Final Examination Crash Course

33. Which of the following is a personal property = <= span style=3D'font-family:"Times New Roman";mso-ascii-font-family:"Times New Ro= man"'> interest:

A. Growing trees in a natural forest

B. Mineral rights

•C. Leasehold estates

D. Improvements constructed on = the land

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Tom Felde Practice Final Examination Crash Course

34. Which of the following statements concerning tax <= span style=3D'font-family:"Times New Roman";mso-ascii-font-family:"Times New Ro= man"'> liens on real property is n= ot correct:

•A. If real property is sold for delinquent taxes at a public auction the buyer rec= eives title free and clear of any trust deed lien

B. The real property tax lien is superior to any liens against the property as a result of contracts C. In the standard trust deed f= orm, the beneficiary is usually given the power to foreclose his lien if the = buyer doesn't pay his proper= ty taxes •D. T= he lien for real property taxes is on a parity with = liens for special assessment= s, regardless of the time of creation of the liens

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Tom Felde Practice Final Examination Crash Course

35. In a deed of trust, the part= y that loans the money is called the:

A. Trustor

B. Trustee

•C. Beneficiary

D. Mortgagor

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Tom Felde Practice Final Examination Crash Course

36. An easement:

A. Is a possessory interest in = the dominant tenement

B. Can be terminated with a mer= ger of the dominant and servient tenement

C. Can be created only by a deed=

D. Can be distinguished from a license because a license is a non-possessory interest

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Tom Felde Practice Final Examination Crash Course

37. A "real estate appraisal" is an estimate of value:

A. Based upon replacement costs=

•B. Based upon analysis of fact as of a specific date = ;

C. Derived from income data cov= ering at least the preceding six months D. Derived from average tax assessments covering the past five years

<= span style=3D'visibility:hidden'>•

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Tom Felde Practice Final Examination Crash Course

38. Effective gross income is the:

A. Spendable income after taxes=

B. Gross income minus allowable expenses and payments of principal and interest

C. Gross income minus an allowa= nce for vacancies

D. Gross income minus allowable expenses and depreciation

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Tom Felde Practice Final Examination Crash Course

39. Every lease contains an implied covenant of "quiet enjoyment and possession". This covenant <= /span>= directly relates to:=

A. A title that is free of all encumbrances <= /div>

B. Tenant's possession free of disturbances by the landlord or another who has paramount title

C. Nuisances inflicted by adjoining neighbors

D. Liability for damages due to tenant's negligence =

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Tom Felde Practice Final Examination Crash Course

40. The event for income tax purposes, where money is paid to an owner of real property that is taken as a result of condemnation proceedings, is <= span style=3D'font-family:"Times New Roman";mso-ascii-font-family:"Times New Ro= man"'> known as:

A. A tax free exchange

• B. Involuntary conversion

C. Subrogation

D. Economic obsolescence

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Tom Felde Practice Final Examination Crash Course

41. During a period of time in which unemployment = = is declining and the gross national product is increasing:

• A. = The value of single family residences would tend = to increase in value

B. New home sales would tend to increase

C. Demand for existing housing would increase

• D. All of the above would be true

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Tom Felde Practice Final Examination Crash Course

<= span style=3D'font-family:"Times New Roman";mso-ascii-font-family:"Times New Ro= man"'>42. An owner of commercial prope= rty entered into separate open listing contracts with a number of = different real estate brokers. Under these = circumstances, each broker w= ill:

• A. Have an opportunity to earn a full commission if he or she is the procuring cause

B. Equally share the commission if any one of the brokers sells the property&#= 13;= C. Earn a full commission if the owner sells the = property herself = D. Have the right to exercise an option to purchase = the property at the listed price

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Tom Felde Practice Final Examination Crash Course

<= span style=3D'font-family:"Times New Roman";mso-ascii-font-family:"Times New Ro= man"'>43. Irons, a 15 year old emancip= ated minor, entered into a <= /span>listing contract with a broker to sell real property that he owned. When the broker finds a = buyer and both parties have = signed a purchase contract, the broker should obtain proof of the emancipation to satisfy the demands of the:

A. Escrow holder

• B. Title company

C. Buyer

D. Buyer's broker

<= span style=3D'visibility:hidden'>•

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Tom Felde Practice Final Examination Crash Course

44. The relationship of the escr= ow holder to the parties in the sale and purchase of real property is that of = = an:

A. Advocate

B. Independent contractor

C. Employee

•D. Agent

<= span style=3D'visibility:hidden'>•

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Tom Felde Practice Final Examination Crash Course

= 45. A se= ller of a home suffered damages due to <= span style=3D'mso-tab-count:1;width:7.23%'> misrepresentations made by t= he broker with whom the seller had been dealing with. In the lawsuit filed against= the broker by the seller, the broker contended that = he was = not liable since the listing contract had been an oral an= d not a written agreement as required under the statute= of frauds. Under these circumstances= the court would likely rule that:

•A. Since the contract was not in writing , the statute of frauds w= ould relieve the broker of any liability B. The br= oker would not be liable for any damages if escrow had closed before damages had been established

C. The br= oker is liable and the statute of frauds is not the issue

D. The bro= ker is only liable if the misrepresentations had been given in written form.

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Tom Felde Practice Final Examination Crash Course

46. A real estate broker is liable to a buyer if he:

•A. Executes a contract in the name of the seller after <= /span>= proper authorization by a po= wer of attorney

B. Acts in excess of the author= ity given him by the seller

C. Turns buyer's deposit over to seller and thereafter contract fails without agent's fault D. Innocently makes a misrepresentation based upon information received from seller

<= span style=3D'visibility:hidden'>•

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Tom Felde Practice Final Examination Crash Course

47. Two of the most important things for a borrower = to be advised about under the "Truth in Lending" law = <= span style=3D'font-family:"Times New Roman";mso-ascii-font-family:"Times New Ro= man"'>are:

A. Disclosure and discount rate=

•B. Finance charge and annual percentage rate =

C. Carrying charge and advertising

D. Installment payments and cancellation rights

<= span style=3D'visibility:hidden'>•

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Tom Felde Practice Final Examination Crash Course

48. A note on which interest only is paid during its <= span style=3D'font-family:"Times New Roman";mso-ascii-font-family:"Times New Ro= man"'> term is called:

•A. A straight note

B. An amortized note =

C. An installment note

D. A level payment note<= /div>

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Tom Felde Practice Final Examination Crash Course

49. One of the distinguishing economic = characteristics of real pro= perty is that it is:

•A. Immovable

B. A long term investment

C. Very costly

D. Likely to increase in value&= #13;

<= span style=3D'visibility:hidden'>•

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Tom Felde Practice Final Examination Crash Course

50. The primary justification for zoning ordinances is that they:

•A. Promote conformity in the outward appearances <= /span> of structures B. Limit the supply of specific businesses within a zoned area

C. Promote the general health, = safety and welfare of the community

D. Increase the tax base of the = local governing body

<= span style=3D'visibility:hidden'>•

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Tom Felde Practice Final Examination Crash Course

51. Which of the following types= of depreciation is usually the most difficult to cure:

A. Functional obsolescence =

B. Physical depreciation

•C. Economic obsolescence

D. Physical deterioration <= /span>

<= span style=3D'visibility:hidden'>•

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Tom Felde Practice Final Examination Crash Course

52. A broker who holds an option on real property = and who intends to sell the property to another after exercising the option, should inform the <= span style=3D'font-family:"Times New Roman";mso-ascii-font-family:"Times New Ro= man"'> purchaser that the broker is acting as:

A. An optionor

B. A beneficiary

C. A mortgagor

• D. A principal

<= span style=3D'visibility:hidden'>•

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Tom Felde Practice Final Examination Crash Course

53. Which of the following would not be classified <= span style=3D'font-family:"Times New Roman";mso-ascii-font-family:"Times New Ro= man"'>as obsolescence?

A. Outdated fixtures

B. Declining neighborhood

•C. Wear and tear

D. Misplaced improvements <= /span>

<= span style=3D'visibility:hidden'>•

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Tom Felde Practice Final Examination Crash Course

54. After a "Notice of Default" has been recorded in a foreclosure, the trustee must wait three months = before:

A. Reinstating the loan

B. Taking possession of the property

C. Deeding the title to the beneficiary

D. Advertising a "Notice of Sale"

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Tom Felde Practice Final Examination Crash Course

55. A contract for the sale of community real <= span style=3D'font-family:"Times New Roman";mso-ascii-font-family:"Times New Ro= man"'> property signed by the wife= only is:

A. Valid

•B. Voidable

C. Illegal

D. Void

<= span style=3D'visibility:hidden'>•

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Tom Felde Practice Final Examination Crash Course

56. Land, which is subject to an easement, is said to be:

A. Appurtenant thereto

B. Encroached upon

•C. Encumbered

D. Restricted

<= span style=3D'visibility:hidden'>•

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Tom Felde Practice Final Examination Crash Course

57. The personal, revocable and unassignable permission or authority to d= o one or more acts on the land of another without possessing any <= span style=3D'font-family:"Times New Roman";mso-ascii-font-family:"Times New Ro= man"'> interest therein, is a defi= nition of:

• A. A license

B. An easement

C. An encumbrance

D. An option

<= span style=3D'visibility:hidden'>•

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Tom Felde Practice Final Examination Crash Course

58. Mortgage interest rates usually decrease when:=

•A. The supply of mortgage money increases = substantially

B. Inflationary trends are on the up-swing

C. Businesses are expanding and making large capital expenditures D. The Federal Reserve Board increases the reserve requirements for member banks

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Tom Felde Practice Final Examination Crash Course

59. Market value of improved real property is least <= span style=3D'font-family:"Times New Roman";mso-ascii-font-family:"Times New Ro= man"'> affected by:<= /div>

•A. Original cost of materials

B. An open market

C. Exchange value

D. Objective value <= /div>

<= span style=3D'visibility:hidden'>•

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Tom Felde Practice Final Examination Crash Course

60. A builder purchased a tract = of land, convincing the seller to finance part of the purchase price with a = note and deed of trust, which contained a subordination = clause= . That clause could:

•A. Create additional liens agai= nst the property without the consent of the buyer

B. Resul= t in future liens placed on the property by the buyer t= o have priority

C. Ensur= e that the first trust deed always has priority over all other loans •D. Render invalid any construction loan placed against the property

<= span style=3D'font-size:93%;visibility:hidden'>•

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Tom Felde Practice Final Examination Crash Course

61. Which of the following is not required to obtain <= span style=3D'font-family:"Times New Roman";mso-ascii-font-family:"Times New Ro= man"'>an easement by prescription:

•A. A use of the property hostile and adverse to the true owner's title

•B. A public confrontation with the owner before <= /span> witnesses =

C. A claim of right <= /div>

D. Open, notorious and uninterr= upted use for 5 years

<= span style=3D'visibility:hidden'>•

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Tom Felde Practice Final Examination Crash Course

62. A form that is usually prepared to allow a real estate licensee to act as an= agent for all principal parties to the transaction involved is:

A. An agreement of sale

• B. An exchange agreement

C. A loan broker's statement

D. A real property securities statement

<= span style=3D'visibility:hidden'>•

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Tom Felde Practice Final Examination Crash Course

63. A "seasoned" loan would best be described a= s a <= span style=3D'font-family:"Times New Roman";mso-ascii-font-family:"Times New Ro= man"'> loan:

A. That is delinquent for all f= our quarters of the year

•B. On which payments have been made on time each = month over a good length of time

C. Where the borrower receives = cash instead of credit extended by the seller of the property D. That is being offered for sa= le by a Real Property Securities Dealer

<= span style=3D'visibility:hidden'>•

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Tom Felde Practice Final Examination Crash Course

64. In order to secure an FHA home loan a new buyer = would normally do all of the following except:

•A. Find a lender who will be willing to grant him the = loan

•B. Apply to the nearest office of the FHA for an = appraisal =

C. Agree to pay for mortgage insurance protection

D. Buy a home which meets the F= HA requirements and restrictions

<= span style=3D'visibility:hidden'>•

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Tom Felde Practice Final Examination Crash Course

65. If the Federal Reserve Bank feels that there is an = inflationary trend developin= g in the United States they can do which of the following:

•A. Adjust the amount of reserves required for its = member banks

B. Increase the discount rate= 3;

C. Enter into the government bo= nd market in a selling capacity

D. All of the above

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Tom Felde Practice Final Examination Crash Course

66. Which of the following zoning symbols would identify property which coul= d be used for multi- family apartments:

A. C-3

B. A-4

• C. R-4

D. M-4

<= span style=3D'visibility:hidden'>•

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Tom Felde Practice Final Examination Crash Course

67. The maximum amount of income which rental property can be expected to produce is known as:

A. Effective gross income <= /span>

•B. Gross scheduled income

C. Net operating income

D. None of the above

<= span style=3D'visibility:hidden'>•

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Tom Felde Practice Final Examination Crash Course

68. A trust deed is usually considered in "default&q= uot; if which of the following occur:

A. Illegal use of the property&= #13;

B. Failure to maintain the improvements adequately

C. Delinquency in the scheduled payments on the accompanying note

D. Any of the above =

<= span style=3D'visibility:hidden'>•

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Tom Felde Practice Final Examination Crash Course

69. The prospective buyer of a business would be <= /span>= most interested in:<= /span>

A. Gross sales

•B. Net profit

C. Turnover

D. Accounts payable =

<= span style=3D'visibility:hidden'>•

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Tom Felde Practice Final Examination Crash Course

70. The end result of most profit and loss statements = is to ascertain:

A. New worth

B. Total assets

C. Total liability

•D. Net income

<= span style=3D'visibility:hidden'>•

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Tom Felde Practice Final Examination Crash Course

71. It is sometimes difficult to determine the ownership rights of personal property because personal property can:

A. Become real property

B. Be hypothecated

C. Be alienated

•D. Be all of the above

<= span style=3D'visibility:hidden'>•

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Tom Felde Practice Final Examination Crash Course

7= 2. Broker Jones holds a listing= which stipulates that the broker is authorized to accept a deposit from the b= uyer on behalf of the seller provided the deposit is in the = form of a cashier's check made payable to the seller. The broker procures= a buyer who signs an offer and gives the broker a perso= nal check in the amount of $1,000, payable to the escrow company. Under these circumstance= s the broker should:

A. Depos= it the $1,000 check with the escrow company

B. Place= the deposit in his trust account

C. Advis= e the principal that the offer is being made with a check p= ayable to the escrow company, prior to presenting the offer

D. Refus= e to accept the deposit since it was not made payable= to the seller

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Tom Felde Practice Final Examination Crash Course

73. Under the California Veterans Home and Farm = Purchase Act of 1974, the purchaser acquires possession through a:

A. Grant deed

B. Warranty Deed

•C. Land contract

D. Special state deed

<= span style=3D'visibility:hidden'>•

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Tom Felde Practice Final Examination Crash Course

74. The original amount of a stra= ight note that calls for interest payments of $60 per month based on = a rate of 8% per annum is:<= /span>

A. $4,000

B. $7,500

•C. $9,000

D. $12,000

<= span style=3D'visibility:hidden'>•

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Tom Felde Practice Final Examination Crash Course

75. An appraiser intends that the estimate of value as disclosed in his appraisal r= eport on a property be valid:

•A. As of the date of the appraisal only

B. For a period of three months = after the
app= raisal date •C. Fo= r a period of six months after the
appraisal date

D. For a period of one year aft= er the appraisal date

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Tom Felde Practice Final Examination Crash Course

76. Title to real property being purchased under the California Veteran's Farm and Home purchase <= /span>= plan is held by the:=

A. Vendee

B. Trustee

C. Veteran's Administration =

•D. Department of Veterans Affairs

<= span style=3D'visibility:hidden'>•

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Tom Felde Practice Final Examination Crash Course

77. Which of the following would be regarded as <= span style=3D'font-family:"Times New Roman";mso-ascii-font-family:"Times New Ro= man"'> functional obsolescence:

A. Termite-infested walls <= /span>

B. Inharmonious use of the adja= cent property

C. Decline of the neighborhood&#= 13;

D. Massive cornices on an apart= ment building

<= span style=3D'visibility:hidden'>•

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Tom Felde Practice Final Examination Crash Course

78. The cost approach to value would have limited = usefulness when appraising = which of the following properties:

A. A new residence in an R-1 zone

•B. An old structure with many functional deficiencies

C. A projected industrial development

D. All of the above =

<= span style=3D'visibility:hidden'>•

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Tom Felde Practice Final Examination Crash Course

79. When an owner grants a utility company the right to string wires over property, it creates:

A. A specific lien <= /div>

B. A profit a pendre =

•C. An encumbrance

D. A declaration of restriction=

<= span style=3D'visibility:hidden'>•

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Tom Felde Practice Final Examination Crash Course

80. A person delegated in an instrument to act legally for another in his stead is = which of the following?

A. A fiduciary

B. A principal

•C. An attorney-in-fact

D. A trustee

<= span style=3D'visibility:hidden'>•

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Tom Felde Practice Final Examination Crash Course

81. Escrow companies normally ba= se their prorations on an escrow year of:

A. 350 days

B. 355 days

•C. 360 days

D. 365 days

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Tom Felde Practice Final Examination Crash Course

82. A declaration by a person who is adverse to <= span style=3D'font-family:"Times New Roman";mso-ascii-font-family:"Times New Ro= man"'> taking an oath is known as:=

A. An acknowledgment

•B. An affirmation

C. An affidavit

D. A verification

<= span style=3D'visibility:hidden'>•

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Tom Felde Practice Final Examination Crash Course

83. A li= censed real estate broker accepts a listing from an owner who inf= ormed the broker that the entire plumbing system was in bad condition and some sections of the system were actually missing= . In order to sell the home without added expense, the broker and owner decided to advertise and sell the = home "as is" without disclosing the plumbing condition. A buyer purchased the home "as is" and did not become aware of the faulty plumbing system until after escrow had closed. If the buyers decided to take legal action for this loss, the cou= rts would most likely hold who responsible?

A. Broker only

B. Seller only

•C. Broker and seller

D. Neith= er broker nor seller since the "as is" condition was a disclaimer

<= span style=3D'font-size:93%;visibility:hidden'>•

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Tom Felde Practice Final Examination Crash Course

84. When = a real estate licensee refers to a "tax free" exchang= e, it is generally meant that there will be:

• A. Deferred taxes

B. No taxes

C. An even exchange =

D. No gain

<= span style=3D'font-size:93%;visibility:hidden'>•

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Tom Felde Practice Final Examination Crash Course

85. A valid deed must contain:

A. A date

B. Evidence of recordation <= /span>

•C. A granting clause

D. The signature of the grantee=

<= span style=3D'visibility:hidden'>•

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Tom Felde Practice Final Examination Crash Course

86. The legal purpose for the creation and existence = of zoning restrictions is:<= /span>

•A. To keep all types of commercial property out of residential neighborhoods= 3;

•B. The preservation or protection of public health, safety, morals or general welfare

C. To keep the land uses in eve= ry area as closely similar as possible D. To make available to the pub= lic sufficient amounts of recreational areas

<= span style=3D'visibility:hidden'>•

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Tom Felde Practice Final Examination Crash Course

87. A balloon note is also known as:

A. A fully-amortized loan <= /span>

B. A static loan

C. A self-liquidating loan <= /span>

•D. A partially-amortized loan

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Tom Felde Practice Final Examination Crash Course

88. When a borrower defaults und= er a note secured by a deed of trust, the trustor is allowed a specific= period of time to redeem the property. During the redemption period, the right = of possession is held by the:

A. Escrow agent

B. Trustee

•C. Trustor

D. Beneficiary

<= span style=3D'visibility:hidden'>•

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Tom Felde Practice Final Examination Crash Course

89. What is the youngest age at which a single <= span style=3D'font-family:"Times New Roman";mso-ascii-font-family:"Times New Ro= man"'> person, without court or guardianship proceedings, is legally entitled to enter into an = enforceable real estate con= tract?

A. 16 years

•B. 18 years

C. 19 years

D. 21 years

<= span style=3D'visibility:hidden'>•

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Tom Felde Practice Final Examination Crash Course

90. Which of the following documents is the primary = one used in the purchase of= a home under the California Veterans Farm and Home Purchase <= span style=3D'font-family:"Times New Roman";mso-ascii-font-family:"Times New Ro= man"'> Plan:

A. A deed of trust <= /div>

•B. A real property purchase contract

C. A mortgage

D. Any of the above =

<= span style=3D'visibility:hidden'>•

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Tom Felde Practice Final Examination Crash Course

91. A parcel of land that is 1,780’ x 1,780’ contains <= span style=3D'font-family:"Times New Roman";mso-ascii-font-family:"Times New Ro= man"'> most nearly:<= /div>

A. 27 acres

B. 54 acres

C. 65 acres

•D. 73 acres

<= span style=3D'visibility:hidden'>•

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Tom Felde Practice Final Examination Crash Course

92. A licensed real estate agent may refuse to show a home that was available for = sale to a person of a minority race provided the:

•A. Owners had given specific instructions against showing it to minorities B. Licen= see felt the home was not suited to the needs = of the prospective purchasers •C. Licensee was able to ascertai= n that the prospective purchaser was not able to qualify financially accordi= ng to the terms specified in the listing

D. Owner= s were out of town and had left instructions that th= e home was not be shown to anyone during <= span style=3D'mso-tab-count:1;width:7.39%'> this period of time

<= span style=3D'font-size:93%;visibility:hidden'>•

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Tom Felde Practice Final Examination Crash Course

93. The term "indefinite period of time or duration" most generally relates to which of the following:

A. Mortgages

•B. Fee simple absolute

C. Less-than-freehold estate = ;

D. Life estate

<= span style=3D'visibility:hidden'>•

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Tom Felde Practice Final Examination Crash Course

94. Which of the following factors would tend to <= /span> make real estate values unst= able in a residential neighborhood?

•A. An increasing amoun= t of average price homes are
being constructed in a neighborhood with a number
of high priced homes

B. Local zoning restrictions limit or prohibit the constru= ction of multiple family units •C. The resident of a neighborho= od are of the same ethnic background and religious beliefs = D. The subdivider demands that all homes to be constru= cted by those purchasing lots be a
minimum number of square feet and value

<= span style=3D'font-size:86%;visibility:hidden'>•

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Tom Felde Practice Final Examination Crash Course

95. The Archers encountered financial difficulties and decided to sell their home in which they had a substantial equity. = They listed the property with Broker Taylor for $60,000, but to= ld Taylor that they must sell quickly and would take less if necessary. Broker = Taylor located a prospective buyer and suggested to the buy= er that they make an offer for only $50,000 since the sellers= were in a rush to sell. The buyer's of= fer of $50,000 was presented and accepted by the sellers. Under these circumstances, Taylor's action was:

A. Not unethical since the Archer's willingly accepted the offer as presented = ;

B. Uneth= ical, but not a violation of his fiduciary relationship to the Archers

C. A vio= lation of this fiduciary relationship to the Archers because he disclosed important and confidential information without the seller's consent =

D. Not a violation of his fiduciary relationship to the Archers since they told him to sell the home as quickly as possible and he accompli= shed this task

<= span style=3D'font-size:71%;visibility:hidden'>•

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Tom Felde Practice Final Examination Crash Course

96. The type of real estate loan= in which the interest rate will fluctuate based on a change in money = market conditions is known = as:

A. An interim loan <= /div>

•B. A variable rate mortgage

C. A graduated payment mortgage&= #13;

D. A reverse annuity loan <= /span>

<= span style=3D'visibility:hidden'>•

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Tom Felde Practice Final Examination Crash Course

97. Under the Federal F= air Housing Law, if persons of a minority race contact a real estate office an= d ask any= one of the sales staff about the = availability of homes in a certain price bracket, and indicate their = intere= st in inspecting the homes, the salesperson is requir= ed to:

• A. Show them the same number of homes that
would be shown to any other prospect &= #13;

B. Show the prospects at least = six homes in that
price bracket C. Inquire of the prospects if = they are interested in
homes located in a Caucasian neighborhood D. Show them an equal number of= homes in
both Caucasian and minority race neighborhoods

<= span style=3D'font-size:93%;visibility:hidden'>•

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Tom Felde Practice Final Examination Crash Course

98. An advantage of the installment sale method of = reporting gain from the sal= e of property is that:

A. The entire gain is received in one year B. The gain is distributed over a number of years at the same tax rate

C. The gain is distributed over a number of years

D. There is no tax in the first year that payments are <= /span> received

<= span style=3D'visibility:hidden'>•

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Tom Felde Practice Final Examination Crash Course

100

99. Which of the following parti= es would normally pay points on a Cal-Vet loan?

A. Buyer

B. Seller

•C. Department of Veteran's Affairs

D. No one

<= span style=3D'visibility:hidden'>•

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Tom Felde Practice Final Examination Crash Course

101

100. The government's control over land use,
plan= ning and zoning are an important example of:

A. Eminent domain

•B. Police power

C. Deed restrictions =

D. All of the above =

<= span style=3D'visibility:hidden'>•

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Tom Felde Practice Final Examination Crash Course

102

101. If the tenants are delinquent in their rent under a <= /span> written lease, the landlord = can have them evicted by:

•A. Serving them with a 3-day notice to pay
or quit

B. Filing a notice of default= 3;

C. Giving them 30 days notice= 3;

D. Court proceedings

<= span style=3D'visibility:hidden'>•

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Tom Felde Practice Final Examination Crash Course

103

102. The interest rate on a straight note in the amount
of $27,000 that calls for interest payments
of $573.75 each quarter would most nearly be:

A. 6.6%

B. 7.2%

•C. 8.6%

D. 9.2%

<= span style=3D'visibility:hidden'>•

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Tom Felde Practice Final Examination Crash Course

104

103. In 1920, restrictions were imposed on a subdivision that limited the conveyance or lease of the property to persons of the Caucasian race. These restrictions were to expire in 1998. Presently these restrictions are:

A. Enforceable

• B. Unenforceable

C. Covered by title insurance

D. Valid unless all property owners agree to eliminate them=

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Tom Felde Practice Final Examination Crash Course

105

104. A grantor gave his deed to a friend with written instructions that the deed "is to be returned to
the grantor upon demand or, in the event of
gr= antor's death, the deed is to be delivered to
gra= ntor's son". If the son were to rec= eive a deed
un= der these circumstances, there could be a
qu= estion of proper:

A. Recordation

B. Acknowledgment

•C. Delivery

D. Verification

<= span style=3D'visibility:hidden'>•

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Tom Felde Practice Final Examination Crash Course

106

105. Adams sold his home to Brooks, who did not record his deed but took up residency there. Adams then sold the same pro= perty to Carr, who examined the county recorder's files but did not look at the property. Carr received a deed from Adams and recorded it. Concerning title to that = property, which of the foll= owing is true:

A. Title vests with Carr

B. The priority of recordation prevails

C. Carr has recourse against Br= ooks for failure to = record

D. Brooks remains the owner = ;

<= span style=3D'visibility:hidden'>•

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Tom Felde Practice Final Examination Crash Course

107

106. When three parties hold title to real property as
jo= int tenants:

A. Their ownership interests can= be unequal

•B. There is only one title to the whole property

C. If one co-owner dies, his hei= rs become
tenants in common with the surviving
co-owners •D. Each co-owner has a separate title to his
undivided interest

<= span style=3D'visibility:hidden'>•

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Tom Felde Practice Final Examination Crash Course

108

107. Most buyers receive which of the following
po= licies of title insurance:

A. An extended coverage policy&= #13;

B. An ALTA policy

•C. A standard policy

D. A certificate of title <= /span>

<= span style=3D'visibility:hidden'>•

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Tom Felde Practice Final Examination Crash Course

109

108. A copy of a structural pest control inspection
re= port prepared pursuant to the Business and
Pro= fessions Code must be delivered to the buyer:

A. When there is visible eviden= ce of infestation

B. When it is a condition of the purchase
contract or a requirement imposed as a
condition of the financing

C. After the seller has reviewe= d the report and
given is permission

D. In every instance, whether requested or not

<= span style=3D'visibility:hidden'>•

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Tom Felde Practice Final Examination Crash Course

110

109. A "sellers' market" is considered to exist under
wh= ich of the following conditions?

•A. The number of sellers far exceed the
number of prospective buyers

B. Fewer properties are availabl= e for sale
in contrast to an ever increasing number
of qualified buyers

C. Competition between sellers = is on the increase

D. The multiple listing service= is receiving a
greater number of new listings but fewer sales

<= span style=3D'visibility:hidden'>•

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Tom Felde Practice Final Examination Crash Course

111

110. A commercial bank agreed to = loan Davis $90,000
for a one year term provided Davis agree to
maintain a savings account with the bank
in the amount of $9,000 during the term of
the loan. This provision is known as:<= /div>

•A. Compensating balances

B. Risk management

C. Mortgage insurance

D. A security deposit

<= span style=3D'visibility:hidden'>•

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Tom Felde Practice Final Examination Crash Course

112

111. A percolation test is often conducted in a new
pr= oposed subdivision to ascertain the:

•A. Ability of the soil to absorb water

B. Width and depth requirements= of footings

C. Quantity and quality of well water

D. Approximate size of the water storage tank
needed to service a given size house or farm
building

<= span style=3D'visibility:hidden'>•

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Tom Felde Practice Final Examination Crash Course

113

112. Broker Thompson who held an exclusive authorization <= span style=3D'mso-tab-count:1;width:9.74%'> and right to sell listing, received an offer on the property
under the exact terms and price of the listing. Before
Thompson could present the offer, a cooperating broker
gave Thompson another offer which was for the same
price but with a slightly lower down payment. Under
these circumstances, broker Thompson should:

•A. Present both offers to the s= eller at the same time

B. Presen= t the offers to the seller in the order received

C. Refus= e to submit the cooperating broker's offer and
submit the offer that meets the exact terms of the
listing D. Hold = the cooperating broker's offer and suggest to
her buyer that they increase their offered price= 3;

<= span style=3D'font-size:86%;visibility:hidden'>•

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Tom Felde Practice Final Examination Crash Course

114

113. If an owner has riparian rig= hts, it means the party has rights to the taking and use of water from:

•A. A river, stream or other watercourse

B. Underground accumulations = ;

C. A bay of the ocean or lake= 3;

D. All of the above =

<= span style=3D'visibility:hidden'>•

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Tom Felde Practice Final Examination Crash Course

115

114. A joint tenancy holding in real property can legally be created by the execution of a deed by:

A.A husband and wife to themse= lves as joint tenants

B.All existing joint tenants to themselves and others as joint tenants C.All existing tenants in comm= on to themselves as joint tenants

•D.Any of the above ways

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Tom Felde Practice Final Examination Crash Course

116

115.A real estate licensee must disclose his or her

<= /div>

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1
2	1. In real estat= e the word tenancy means: A. Two or more people joined in an enterprise B. A mode of holding ownership C. A tenacious person D. A device
3	2. Which of the following would be appurtenant to land? A. Anything acquired by legal right that is to be used with the la= nd for its benefit B. A right of way over another owner's adjoining land C. Stock in a mutual water company D. All of the above
4	3. Which of the following is classified as personal property? A. A dwelling B. A mortgage C. An easement D. Riparian rights
5	4. An appraiser = using the cost method may use the unit cost per square foot or cost per cubic = foot in his computations. On a unit = basis: A. A small house would cost less than a large house B. A large house would cost more than a small house C. A small house would cost more than a large house D. The cost of a small house and a large house would be the same
6	5. All of the fo= llowing would have an effect on the final estimate of value when making an appra= isal of an old family residence except: A. Purpose of the appraisal B. Suitability of the residence to the site C. Physical condition of the building D. Original cost of the residence
7	6. The process of expressing anticipated future benefits of ownership in dollars and discounting them to a present worth at a rate which is attracting purc= hase capital to similar investments is called: A. Projection B. Yield evaluation C. Equity Manipulation D. Capitalization
8	7. To alienate t= itle to property means to: A. Secure an ALTA policy of title insurance B. Cloud the title C. Record a homestead D. Convey title
9	8. Most of the j= unior loans that are available today are secured through: A. Savings and loan associations B. Private investors C. Commercial banks D. Mortgage bankers
10	9. The main ben= efit for the lender under FHA financing over conventional financing is the: A. Mortgage insurance B. Higher yield C. Ease of sale in the secondary money market D. Higher loan to value ratio
11	10. Mrs. King b= orrowed money using a fully-amortized loan to finance the remodeling of her real property. If equal monthly paym= ents include both principal and interest, the amount of the payment on the principal will: A. Increase at a constant amount B. Decline while the amount credited to interest increases C. Cause the amount credited to interest to remain constant D. Increase while the amount credited to interest decreases
12	11. When apprai= sing a house built in 1930, the appraiser would use which of the following to estimate the cost new: A. A national cost index adjusted to 1930 B. Actual cost of construction in 1930 C. Current replacement or reproduction cost D. Current cost adjusted by the 1930 cost of living index
13	12. If the Fede= ral Reserve wants to increase the amount of money available to member banks = to ease a tight money market it could: A. Raise the discount rate to its member banks B. Lower the minimum reserves required by its member banks C. Raise the minimum reserves required by its member banks D. Sell government bonds
14	13. When a real= estate broker speaks of "tax shelter" he could be referring to: A. Depreciation allowance on income property B. An installment sale of property C. A tax deferred exchange D. Any of the above
15	14. A standard = title insurance policy insures against: A. A recorded deed in the chain of title that was not properly delivered B. Claims of persons in possession of the property C. Easements by prescription D. Losses sustained on improved property only
16	15. Under which= of the following circumstances would a deed be void? A. Grantor uses a name that is not his true name B. The grantee is a fictitious person C. The spelling of the name of the grantor in the body of the deed differs from that in the signature D. The grantee is sufficiently described in the deed but he is not named therein
17	16. When a docu= ment is signed by officers acting on behalf of their corporation, a seal is atta= ched which: A. Makes it eligible for recording B. Shows that consideration has been paid C. Implies authority of person signing D. All of the above
18	17. The person = who most likely would make use of the legal remedy known as "Unlawful Detainer" would be a: A. Trustor B. Holder of a note in default C. Lessor D. Grantor
19	18. Carlson bor= rowed $60,000 to finance the purchase of his home. The trend of gradual economic inflation will affect the outstandi= ng balance of the loan to the: A. Benefit of the beneficiary B. Benefit of the trustee C. Benefit of the trustor D. Disadvantage of the beneficiary and the trustor
20	19. In respect = to your understanding of an appurtenant easement, all of the following are true except: A. It is a burden on the servient tenement and a benefit to the dominant tenement B. It is capable of being transferred C. It must involve adjoining properties D. The dominant and servient tenement cannot be under the same ownership
21	20. Which of the following parties would hold a less- than-freehold estate? A. A lessee B. A dominant tenement C. A beneficiary D. A mortgagee
22	21. Which of the following would constitute an "estate" in real property? A. An easement B. A lease C. A mortgage D. All of the above
23	22. Which of the following state agencies is empowered to prevent acts of discrimination = in housing accommodations in California because of race, color, religion, national origin or ancestry? A. Real Estate Commission B. Labor Commission C. Department of Fair Employment and Housing D. Division of Housing
24	23. Rezoning of= ten involves ridding the area of nonconforming use. The means utilized may involve all o= f the following, except: A. Prohibition against rebuilding B. Prohibition against expanding C. Retroactive zoning ordinances D. Amortization provisions terminating use within a reasonable time=
25	24. In the even= t there is no provision in the escrow instructions with regard to a termination date, the parties to the escrow have: A. 30 days B. 60 days C. A reasonable time D. As long as either desires
26	25. A valid bil= l of sale need not contain: A. The name of the buyer B. An acknowledgment C. A description of the property D. Signature of seller
27	26. When a purc= hase money deed of trust is used to obtain a loan from an institutional lende= r, the trustor: A. Holds the deed to trust B. Receives a note for the amount borrowed C. Signs a note for the amount borrowed D. Loans the funds
28	27. The maximum= amount of income which rental property can be expected to produce is known as:<= /a> A. Effective gross income B. Gross scheduled income C. Net operating income D. None of the above
29	28. A deed of t= rust and note given to a seller to finance the purchase of vacant land on which t= he buyer intends to place a short-term construction loan would most likely contain: A. An alienation clause B. An "or more" clause C. A subordination clause D. A prepayment penalty clause
30	29. Smith purch= ased a home from Brown which had a conventional loan secured by a trust deed on= the property. Smith wanted to assum= e the loan. The beneficiary agreed to= the assumption and a substitution of liability. If this should happen: A. Brown is relieved from all liability B. Brown is primarily liable, Smith secondarily liable C. The assumption has no effect on Brown's liability D. Smith is primarily liable but Brown is a surety
31	30. The Subdivi= sion Map Act requires: A. Delivery of a copy of the Real Estate Commissioner's Public Repo= rt to all prospective purchasers B. The subdivider to prepare a tentative map and file it with the = city or county C. Insertion of release clauses in all blanket mortgages covering subdivision property D. Submission of proposed sales contracts for subdivision lots that= a local governing agency had approved
32	31. The one uni= ty in a joint tenancy holding that is also present in a tenancy-in-common holding is: A. Equal right of possession B. Right of survivorship C. Equal interests of all owners D. Tenant in possession can be charged rent for the use of the land=
33	32. When subdiv= ides develop subdivisions, they place certain restrictions on each of the lots. Of these, experience has = shown which of the following is least likely to be enforced: A. Minimum size for each lot B. Minimum limits on the amount of dollars allowed for improvement= s on each lot C. Minimum limits on the square footage of each home D. Limitations on the number of stories or total height of structur= es
34	33. Which of the following is a personal property interest: A. Growing trees in a natural forest B. Mineral rights C. Leasehold estates D. Improvements constructed on the land
35	34. Which of the following statements concerning tax liens on real property is not correc= t: A. If real property is sold for delinquent taxes at a public auction the buyer receives title free and clear of any trust deed lien B. The real property tax lien is superior to any liens against the property as a result of contracts C. In the standard trust deed form, the beneficiary is usually giv= en the power to foreclose his lien if the buyer doesn't pay his proper= ty taxes D. The lien for real property taxes is on a parity with liens for special assessments, regardless of the time of creation of the lien= s
36	35. In a deed o= f trust, the party that loans the money is called the: A. Trustor B. Trustee C. Beneficiary D. Mortgagor
37	36. An easement= : A. Is a possessory interest in the dominant tenement B. Can be terminated with a merger of the dominant and servient tenement C. Can be created only by a deed D. Can be distinguished from a license because a license is a non-possessory interest
38	37. A "rea= l estate appraisal" is an estimate of value: A. Based upon replacement costs B. Based upon analysis of fact as of a specific date C. Derived from income data covering at least the preceding six mo= nths D. Derived from average tax assessments covering the past five year= s
39	38. Effective g= ross income is the: A. Spendable income after taxes B. Gross income minus allowable expenses and payments of principal= and interest C. Gross income minus an allowance for vacancies D. Gross income minus allowable expenses and depreciation
40	39. Every lease contains an implied covenant of "quiet enjoyment and possession". This covenant directly relates to: A. A title that is free of all encumbrances B. Tenant's possession free of disturbances by the landlord or ano= ther who has paramount title C. Nuisances inflicted by adjoining neighbors D. Liability for damages due to tenant's negligence
41	40. The event f= or income tax purposes, where money is paid to an owner of real property th= at is taken as a result of condemnation proceedings, is known as: A. A tax free exchange B. Involuntary conversion C. Subrogation D. Economic obsolescence
42	41. During a pe= riod of time in which unemployment is declining and the gross national product is increasing: A. The value of single family residences would tend to increase in value B. New home sales would tend to increase C. Demand for existing housing would increase D. All of the above would be true
43	42. An owner of commercial property entered into separate open listing contracts with a number of different real estate brokers. Under these circumstances, each broker will: A. Have an opportunity to earn a full commission if he or she is t= he procuring cause B. Equally share the commission if any one of the brokers sells the property C. Earn a full commission if the owner sells the property herself<= /li> D. Have the right to exercise an option to purchase the property at the listed price
44	43. Irons, a 15= year old emancipated minor, entered into a listing contract with a broker to sell real property that he owned. When the broker finds a buyer and both parties have signed a purc= hase contract, the broker should obtain proof of the emancipation to satisfy= the demands of the: A. Escrow holder B. Title company C. Buyer D. Buyer's broker
45	44. The relatio= nship of the escrow holder to the parties in the sale and purchase of real proper= ty is that of an: A. Advocate B. Independent contractor C. Employee D. Agent
46	45. A seller of= a home suffered damages due to misrepresentations made by the broker with whom = the seller had been dealing with. I= n the lawsuit filed against the broker by the seller, the broker contended tha= t he was not liable since the listing contract had been an oral and not a wri= tten agreement as required under the statute of frauds. Under these circumstances the court = would likely rule that: A. Since the contract was not in writing , the statute of frauds wou= ld relieve the broker of any liability B. The broker would not be liable for any damages if escrow had clos= ed before damages had been established C. The broker is liable and the statute of frauds is not the issue D. The broker is only liable if the misrepresentations had been give= n in written form.
47	46. A real esta= te broker is liable to a buyer if he: A. Executes a contract in the name of the seller after proper authorization by a power of attorney B. Acts in excess of the authority given him by the seller C. Turns buyer's deposit over to seller and thereafter contract fa= ils without agent's fault D. Innocently makes a misrepresentation based upon information rece= ived from seller
48	47. Two of the = most important things for a borrower to be advised about under the "Truth= in Lending" law are: A. Disclosure and discount rate B. Finance charge and annual percentage rate C. Carrying charge and advertising D. Installment payments and cancellation rights
49	48. A note on w= hich interest only is paid during its term is called: A. A straight note B. An amortized note C. An installment note D. A level payment note
50	49. One of the distinguishing economic characteristics of real property is that it is:<= /a> A. Immovable B. A long term investment C. Very costly D. Likely to increase in value
51	50. The primary justification for zoning ordinances is that they: A. Promote conformity in the outward appearances of structures B. Limit the supply of specific businesses within a zoned area C. Promote the general health, safety and welfare of the community= D. Increase the tax base of the local governing body
52	51. Which of the following types of depreciation is usually the most difficult to cure: A. Functional obsolescence B. Physical depreciation C. Economic obsolescence D. Physical deterioration
53	52. A broker wh= o holds an option on real property and who intends to sell the property to anoth= er after exercising the option, should inform the purchaser that the broke= r is acting as: A. An optionor B. A beneficiary C. A mortgagor D. A principal
54	53. Which of the following would not be classified as obsolescence? A. Outdated fixtures B. Declining neighborhood C. Wear and tear D. Misplaced improvements
55	54. After a "Notice of Default" has been recorded in a foreclosure, the trustee must wait three months before: A. Reinstating the loan B. Taking possession of the property C. Deeding the title to the beneficiary D. Advertising a "Notice of Sale"
56	55. A contract = for the sale of community real property signed by the wife only is: A. Valid B. Voidable C. Illegal D. Void
57	56. Land, which= is subject to an easement, is said to be: A. Appurtenant thereto B. Encroached upon C. Encumbered D. Restricted
58	57. The persona= l, revocable and unassignable permission or authority to do one or more act= s on the land of another without possessing any interest therein, is a definition of: A. A license B. An easement C. An encumbrance D. An option
59	58. Mortgage in= terest rates usually decrease when: A. The supply of mortgage money increases substantially B. Inflationary trends are on the up-swing C. Businesses are expanding and making large capital expenditures<= /li> D. The Federal Reserve Board increases the reserve requirements for member banks
60	59. Market valu= e of improved real property is least affected by: A. Original cost of materials B. An open market C. Exchange value D. Objective value
61	60. A builder p= urchased a tract of land, convincing the seller to finance part of the purchase p= rice with a note and deed of trust, which contained a subordination clause.<= span style=3D'mso-spacerun:yes'> That clause could: A. Create additional liens against the property without the consen= t of the buyer B. Result in future liens placed on the property by the buyer to h= ave priority C. Ensure that the first trust deed always has priority over all o= ther loans D. Render invalid any construction loan placed against the propert= y
62	61. Which of the following is not required to obtain an easement by prescription: A. A use of the property hostile and adverse to the true owner's ti= tle B. A public confrontation with the owner before witnesses C. A claim of right D. Open, notorious and uninterrupted use for 5 years
63	62. A form that= is usually prepared to allow a real estate licensee to act as an agent for = all principal parties to the transaction involved is: A. An agreement of sale B. An exchange agreement C. A loan broker's statement D. A real property securities statement
64	63. A "seasoned" loan would best be described as a loan:<= /div> A. That is delinquent for all four quarters of the year B. On which payments have been made on time each month over a good length of time C. Where the borrower receives cash instead of credit extended by = the seller of the property D. That is being offered for sale by a Real Property Securities Dea= ler
65	64. In order to= secure an FHA home loan a new buyer would normally do all of the following exce= pt: A. Find a lender who will be willing to grant him the loan B. Apply to the nearest office of the FHA for an appraisal C. Agree to pay for mortgage insurance protection D. Buy a home which meets the FHA requirements and restrictions
66	65. If the Fede= ral Reserve Bank feels that there is an inflationary trend developing in the United States they can do which of the following: A. Adjust the amount of reserves required for its member banks B. Increase the discount rate C. Enter into the government bond market in a selling capacity D. All of the above
67	66. Which of the following zoning symbols would identify property which could be used for multi- family apartments: A. C-3 B. A-4 C. R-4 D. M-4
68	67. The maximum= amount of income which rental property can be expected to produce is known as:<= /a> A. Effective gross income B. Gross scheduled income C. Net operating income D. None of the above
69	68. A trust dee= d is usually considered in "default" if which of the following occu= r: A. Illegal use of the property B. Failure to maintain the improvements adequately C. Delinquency in the scheduled payments on the accompanying note<= /li> D. Any of the above
70	69. The prospec= tive buyer of a business would be most interested in: A. Gross sales B. Net profit C. Turnover D. Accounts payable
71	70. The end res= ult of most profit and loss statements is to ascertain: A. New worth B. Total assets C. Total liability D. Net income
72	71. It is somet= imes difficult to determine the ownership rights of personal property because personal property can: A. Become real property B. Be hypothecated C. Be alienated D. Be all of the above
73	72. Broker Jone= s holds a listing which stipulates that the broker is authorized to accept a dep= osit from the buyer on behalf of the seller provided the deposit is in the fo= rm of a cashier's check made payable to the seller. The broker procures a buyer who sign= s an offer and gives the broker a personal check in the amount of $1,000, pay= able to the escrow company. Under th= ese circumstances the broker should: A. Deposit the $1,000 check with the escrow company B. Place the deposit in his trust account C. Advise the principal that the offer is being made with a check payable to the escrow company, prior to presenting the offer D. Refuse to accept the deposit since it was not made payable to t= he seller
74	73. Under the California Veterans Home and Farm Purchase Act of 1974, the purchaser acquires possession through a: A. Grant deed B. Warranty Deed C. Land contract D. Special state deed
75	74. The origina= l amount of a straight note that calls for interest payments of $60 per month bas= ed on a rate of 8% per annum is: A. $4,000 B. $7,500 C. $9,000 D. $12,000
76	75. An appraiser intends that the estimate of value as disclosed in his appraisal report = on a property be valid: A. As of the date of the appraisal only B. For a period of three months after the appraisal date C. For a period of six months after the appraisal date D. For a period of one year after the appraisal date
77	76. Title to re= al property being purchased under the California Veteran's Farm and Home purchase plan is held by the: A. Vendee B. Trustee C. Veteran's Administration D. Department of Veterans Affairs
78	77. Which of the following would be regarded as functional obsolescence: A. Termite-infested walls B. Inharmonious use of the adjacent property C. Decline of the neighborhood D. Massive cornices on an apartment building
79	78. The cost ap= proach to value would have limited usefulness when appraising which of the following properties: A. A new residence in an R-1 zone B. An old structure with many functional deficiencies C. A projected industrial development D. All of the above
80	79. When an own= er grants a utility company the right to string wires over property, it creates: A. A specific lien B. A profit a pendre C. An encumbrance D. A declaration of restriction
81	80. A person de= legated in an instrument to act legally for another in his stead is which of the following? A. A fiduciary B. A principal C. An attorney-in-fact D. A trustee
82	81. Escrow comp= anies normally base their prorations on an escrow year of: A. 350 days B. 355 days C. 360 days D. 365 days
83	82. A declarati= on by a person who is adverse to taking an oath is known as: A. An acknowledgment B. An affirmation C. An affidavit D. A verification
84	83. A licensed = real estate broker accepts a listing from an owner who informed the broker th= at the entire plumbing system was in bad condition and some sections of the system were actually missing. In order to sell the home without added expense, the broker and owner decid= ed to advertise and sell the home "as is" without disclosing the plumbing condition. A buyer purc= hased the home "as is" and did not become aware of the faulty plumb= ing system until after escrow had closed. If the buyers decided to take legal action for this loss, the cou= rts would most likely hold who responsible? A. Broker only B. Seller only C. Broker and seller D. Neither broker nor seller since the "as is" condition = was a disclaimer
85	84. When a real= estate licensee refers to a "tax free" exchange, it is generally meant that there will be: A. Deferred taxes B. No taxes C. An even exchange D. No gain
86	85. A valid dee= d must contain: A. A date B. Evidence of recordation C. A granting clause D. The signature of the grantee
87	86. The legal p= urpose for the creation and existence of zoning restrictions is: A. To keep all types of commercial property out of residential neighborhoods B. The preservation or protection of public health, safety, morals= or general welfare C. To keep the land uses in every area as closely similar as possi= ble D. To make available to the public sufficient amounts of recreation= al areas
88	87. A balloon n= ote is also known as: A. A fully-amortized loan B. A static loan C. A self-liquidating loan D. A partially-amortized loan
89	88. When a borr= ower defaults under a note secured by a deed of trust, the trustor is allowed= a specific period of time to redeem the property. During the redemption period, the ri= ght of possession is held by the: A. Escrow agent B. Trustee C. Trustor D. Beneficiary
90	89. What is the youngest age at which a single person, without court or guardianship proceedings, is legally entitled to enter into an enforceable real esta= te contract? A. 16 years B. 18 years C. 19 years D. 21 years
91	90. Which of the following documents is the primary one used in the purchase of a home un= der the California Veterans Farm and Home Purchase Plan: A. A deed of trust B. A real property purchase contract C. A mortgage D. Any of the above
92	91. A parcel of= land that is 1,780’ x 1,780’ contains most nearly: A. 27 acres B. 54 acres C. 65 acres D. 73 acres
93	92. A licensed = real estate agent may refuse to show a home that was available for sale to a person of a minority race provided the: A. Owners had given specific instructions against showing it to minorities B. Licensee felt the home was not suited to the needs of the prospective purchasers C. Licensee was able to ascertain that the prospective purchaser w= as not able to qualify financially according to the terms specified in= the listing D. Owners were out of town and had left instructions that the home= was not be shown to anyone during this period of time
94	93. The term "indefinite period of time or duration" most generally relates= to which of the following: A. Mortgages B. Fee simple absolute C. Less-than-freehold estate D. Life estate
95	94. Which of the following factors would tend to make real estate values unstable in a residential neighborhood? A. An increasing amount of average price homes are being constructed i= n a neighborhood with a number of high priced homes B. Local zoning restrictions limit or prohibit the construction of multiple family units C. The resident of a neighborhood are of the same ethnic background and religious beliefs D. The subdivider demands that all homes to be constructed by those purchasing lots be a minimum number of s= quare feet and value
96	95. The Archers encountered financial difficulties and decided to sell their home in wh= ich they had a substantial equity. They listed the property with Broker Tayl= or for $60,000, but told Taylor that they must sell quickly and would take = less if necessary. Broker Taylor loc= ated a prospective buyer and suggested to the buyer that they make an offer for only $50,000 since the sellers were in a rush to sell. The buyer's offer of $50,000 was pre= sented and accepted by the sellers. Und= er these circumstances, Taylor's action was: A. Not unethical since the Archer's willingly accepted the offer as presented B. Unethical, but not a violation of his fiduciary relationship to t= he Archers C. A violation of this fiduciary relationship to the Archers because= he disclosed important and confidential information without the seller's consent D. Not a violation of his fiduciary relationship to the Archers since they told him to sell the home as quickly as possible and he accomplished this task
97	96. The type of= real estate loan in which the interest rate will fluctuate based on a change = in money market conditions is known as: A. An interim loan B. A variable rate mortgage C. A graduated payment mortgage D. A reverse annuity loan
98	97. Under the F= ederal Fair Housing Law, if persons of a minority race contact a real estate of= fice and ask any one of the sales staff about the availability of homes in a certain price bracket, and indicate their interest in inspecting the hom= es, the salesperson is required to: A. Show them the same number of homes that would be shown to any other prospect B. Show the prospects at least six homes in that price bracket C. Inquire of the prospects if they are interested in homes located in a Caucasian neighborhood D. Show them an equal number of homes in both Caucasian and minority race neighborhoods
99	98. An advantag= e of the installment sale method of reporting gain from the sale of property is t= hat: A. The entire gain is received in one year B. The gain is distributed over a number of years at the same tax = rate C. The gain is distributed over a number of years D. There is no tax in the first year that payments are received
100	99. Which of t= he following parties would normally pay points on a Cal-Vet loan? A. Buyer B. Seller C. Department of Veteran's Affairs D. No one
101	100. The gover= nment's control over land use, planning and zoning are an important example of: A. Eminent domain B. Police power C. Deed restrictions D. All of the above
102	101. If the te= nants are delinquent in their rent under a written lease, the landlord can have them evicted by: A. Serving them with a 3-day notice to pay or quit B. Filing a notice of default C. Giving them 30 days notice D. Court proceedings
103	102. The inter= est rate on a straight note in the amount of $27,000 that calls for interest payments of $573.75 each quarter would most nearly be: A. 6.6% B. 7.2% C. 8.6% D. 9.2%
104	103. In 1920, restrictions were imposed on a subdivision that limited the conveyance or lease of the property to persons of the Caucasian race. These restrictions were to expire in= 1998. Presently these restrictions are: A. Enforceable B. Unenforceable C. Covered by title insurance D. Valid unless all property owners agree to eliminate them
105	104. A grantor= gave his deed to a friend with written instructions that the deed "is to= be returned to the grantor upon demand or, in the event of grantor's death, the deed is to be delivered to grantor's son". If the s= on were to receive a deed under these circumstances, there could be a question of proper: A. Recordation B. Acknowledgment C. Delivery D. Verification
106	105. Adams sol= d his home to Brooks, who did not record his deed but took up residency there. Adams then sold the same property to Carr, who examined the county recorder's files but did not = look at the property. Carr received a= deed from Adams and recorded it. Concerning title to that property, which of the following is true= : A. Title vests with Carr B. The priority of recordation prevails C. Carr has recourse against Brooks for failure to record D. Brooks remains the owner
107	106. When three parties hold title to real property as joint tenants: A. Their ownership interests can be unequal B. There is only one title to the whole property C. If one co-owner dies, his heirs become tenants in common with the surviving co-owners D. Each co-owner has a separate title to his undivided interest
108	107. Most buye= rs receive which of the following policies of title insurance: A. An extended coverage policy B. An ALTA policy C. A standard policy D. A certificate of title
109	108. A copy of= a structural pest control inspection report prepared pursuant to the Business and Professions Code must be delivered to the buyer: A. When there is visible evidence of infestation B. When it is a condition of the purchase contract or a requirement imposed as a condition of the financing C. After the seller has reviewed the report and given is permission D. In every instance, whether requested or not
110	109. A "s= ellers' market" is considered to exist under which of the following conditions? A. The number of sellers far exceed the number of prospective buyers B. Fewer properties are available for sale in contrast to an ever increasing number of qualified buyers C. Competition between sellers is on the increase D. The multiple listing service is receiving a greater number of new listings but fewer sales
111	110. A commerc= ial bank agreed to loan Davis $90,000 for a one year term provided Davis agree to maintain a savings account with the bank in the amount of $9,000 during the term of the loan. This provision is known as: A. Compensating balances B. Risk management C. Mortgage insurance D. A security deposit
112	111. A percola= tion test is often conducted in a new proposed subdivision to ascertain the: A. Ability of the soil to absorb water B. Width and depth requirements of footings C. Quantity and quality of well water D. Approximate size of the water storage tank needed to service a given size house or farm building
113	112. Broker Th= ompson who held an exclusive authorization and right to sell listing, received = an offer on the property under the exact terms and price of the listing. Before Thompson could present the offer, a cooperating broker gave Thompson another offer which was for the same price but with a slightly lower down payment. Under these circumstances, broker Thompson should: A. Present both offers to the seller at the same time B. Present the offers to the seller in the order received C. Refuse to submit the cooperating broker's offer and submit the offer that meets the exact terms of the listing D. Hold the cooperating broker's offer and suggest to her buyer that they increase their offered price
114	113. If an own= er has riparian rights, it means the party has rights to the taking and use of water from: A. A river, stream or other watercourse B. Underground accumulations C. A bay of the ocean or lake D. All of the above
115	114. A joint t= enancy holding in real property can legally be created by the execution of a de= ed by: A. A husband and wife to themselves as joint tenants B. All existing joint tenants to themselves and others as joint tenants C. All existing tenants in common to themselves as joint tenants D. Any of the above ways
116	115. A real es= tate licensee must disclose his or her license status in newspaper advertisem= ents when representing a client. In = order to avoid a "blind ad" the licensee may use which of the follow= ing abbreviations: A. "Agt." B. "Bro." C. Neither "Agt" or "Bro" D. Either "Agt" or "Bro"
117	116. If a ques= tion of priority was raised between two trust deeds that had been executed again= st the same property and assuming neither contained a subordination clause, the trust deed that would have priority would be the one that had been:<= /a> A. Executed and delivered first B. Used to secure a construction loan C. Used to purchase the property D. Recorded first
118	117. In the sa= le of real property in which the buyer assumed an existing loan, the closing statement would show the loan as: A. A debit to the buyer B. A credit to the buyer C. A credit to the seller D. None of the above
119	118. A promiss= ory note that calls for a fixed amount to be paid each month towards the principal, plus accrued interest with a balloon payment due at the end of 5 years, is known as a: A. Fully amortized note B. Straight Note C. Fixed payment note D. Partially amortized note
120	119. Contracts= entered into by a person during a period of time in which the person develops mental health problems would become statutorily void when the person: A. Visits a psychiatrist twice a week, stays at home and cannot hold down employment B. Voluntarily commits himself or herself to a mental institution<= /li> C. Is committed to a mental institution against his or her wishes<= /li> D. Is legally adjudged insane and for whom a conservatory has been appointed by the court following a conservatory hearing
121	120. A real es= tate licensee who fails to disclose a material fact to a prospective buyer while acting as the agent of the seller could be subject to: A. Disciplinary action by the Real Estate Commissioner B. Criminal action C. Civil action by the injured party D. All of the above
122	121. When ther= e is a valid contractual assignment of a lease, the assignee who acquires the leasehold interest becomes a: A. Guarantor B. Tenant C. Landlord D. Sublessee
123	122. When a bu= yer enters into a real property sales contract (sometimes known as an installment sale contract) the buyer usually receives: A. A right of possession B. A freehold estate C. An estate of inheritance D. All of the above
124	123. Evans rec= eived a valuable parcel of real estate in an inheritance from a deceased uncle at age 15. Within the year he deed= ed the property to a nonprofit religious group with whom he had become deeply committed. The religious group recorded the deed and constructed a building on the property. Shortly after reaching the age of 18, Evans became disenchanted with the organization and decided to reclaim t= he property as his own. Under these circumstances: A. His claim would be barred since his original deed to the group = had been duly recorded B. The original deed was void since he was a minor at the time of = the grant C. The religious group must reimburse Evans for the value of the l= and but will retain legal ownership of the property D. Evans cannot disaffirm the grant once he has reached age 18
125	124. A prospec= tive buyer, who was not a real estate licensee nor had any "ties" w= ith the seller's broker, wished to purchase a large parcel of land and made an offer on the property at a price of $600 per acre. The seller accepted the offer and escrow was opened. During the escrow period the seller discovered that the buyer had already entered into an agreement to resell the acreage= at a price of $2,000 per acre to an unknown buyer. Under these circumstan= ces the original seller's recourse is to: A. Rescind the contract B. Refuse to close the escrow and sue for damages C. Void the contract based on misrepresentation D. Do nothing
126	125. A license= d real estate broker who owned a large real estate firm operating under the nam= e of ABC Realty Company, listed a property for a total price of $40,000. The broker and many of his salesperso= ns were all principals in an investment company operating under the name of Realty Income Investment Company. The investment company decided to purchase the property so the broker presen= ted an all cash offer to the owner for the full price but did not disclose to the seller who the purchasers were. The seller accepted the offer and opened escrow. Under these circumstances:= A. The broker's actions were perfectly legal since he offered the fu= ll cash price B. The broker's offer would be legal provided he added to the escrow instructions the fact that the purchasing firm was composed of broke= rs and salespersons C. The broker acted properly provided he had agreed to waive any commission D. The broker’s action was improper because he did no reveal the true identity of the purchaser
127	126. Which of = the following liens would have first priority A. 1911 Street Improvement Act Assessment Bond B. Recorded First Deed of Trust C. Recorded Declaration of Homestead D. Whichever of the above was recorded first
128	127. A minor c= annot hire a real estate broker under an exclusive authorization and right to = sell contract because a minor: A. Is legally incapable B. Cannot negotiate and enter into a real estate property transaction without the approval of the court C. Can disaffirm the contract at his or her discretion D. Is incapable of making an adult decision
129	128. Upon paym= ent of a fee, certified copies of inspection reports issued by any licensed structural pest control operator, may be obtained from the Structural P= est Control Board by: A. Seller only B. Buyer only C. Seller and buyers only D. Anyone
130	129. To an app= raiser, a definition of value is: A. The relationship of a desirous person to the thing desired B. The ability of one commodity to command other commodities in exchange C. The present worth of all rights to future benefits arising out = of ownership of property D. All of the above
131	130. An acre i= s to be divided into four equal lots. If the lots are parallel to each other, rectangular, and 200 feet dee= p, the width of each lot would most nearly be: A. 15 feet B. 55 feet C. 200 feet D. 218 feet
132	131. An enforc= eable listing contract for the sale of real property must be: A. In writing B. Acknowledged C. Recorded D. All of the above
133	132. When a ti= tle company issues an ALTA policy, it customarily extends the risks normally insured against under the Standard policy to included all of the follow= ing except? A. Rights of parties in possession B. Unrecorded physical easements C. Effects of zoning D. Unrecorded mechanic's liens
134	133. Fisk owns= a lot. He also owns a right-of-way easement over the property of his neighbor, Smith. This easement is appurtenant to Fisk'= s lot. Fisk sells his lot to Jones without specific mention of the easement in the deed. The easement: A. Remains with Fisk as an encumbered interest B. Passes to Jones C. Terminates unless it is a covenant with the land D. Reverts to Smith
135	134. A license= e was attempting to list homes for sale by cautioning owners that minority groups were moving into the area and it would decrease property values, the qual= ity of the schools would suffer and that crime rates would increase. Under these circumstances: A. There has been no violation of the Realtor's Code of Ethics B. The Real Estate Commissioner cannot discipline the licensee because he has no jurisdiction even t= hough the licensee is acting unethically<= /li> C. The Real Estate Commissioner can discipline the licensee D. If the facts are true, he cannot be disciplined
136	135. The most practical method of imposing restrictions on a new large subdivision is = to: A. Publish the restrictions in a newspaper of general circulation B. Include the restrictions as covenants in all the deeds C. Record the restrictions in the manner provided by law and make reference to them in each deed D. Post the restrictions on the property
137	136. A commerc= ial acre is defined as an acre of land: A. In a shopping center in a rural area B. In an industrial development C. In a new subdivision zoned for commercial use D. Less the streets and alleys
138	137. Which of = the following represents a gross misrepresentation by an agent? A. The representation is an obvious falsehood B. The representation is made with the knowledge of a falsehood C. The representation caused the aggrieved party to enter into the contract D. All of the above
139	138. A broker = took a listing for 90 days and during the listing term, the owner is declared mentally incompetent. At that point, the listing: A. Is binding B. May be enforced through a suit for specific performance C. Is enforceable if the broker produces a buyer “ready, willing and able” to buy D. Is void
140	139. Broker Jo= nes, who is not a member of any trade organization, has been using a new advertis= ing slogan: “A new breed of Realtor.” This practice is: A. Grounds for revocation or suspension of her real estate license B. Permissible, providing the word “realtor” is not capitalized C. Acceptable as long as she is not licensed in more than one state D. A violation of the Fair Housing Laws
141	140. Once real property becomes known as a “tax defaulted property” following the fiscal year in which the real property taxes were unpaid and had become delinquent, the owner-occupant: A. Must pay rent to the state B. Must vacate the property C. May remain in undistributed possession D. If free of liability for taxes accruing thereafter
142	141. A tract d= eveloper learns that a large national cosmetics manufacturer is moving one of its plants near an area in which he is building a large number of new homes = and condominiums. Since a great numb= er of the employees of the cosmetic firm will be women, he decides to gear his sales promotion towards this group. He tells his advertising agency to aim all of their ads to reflect a prefer= ence for female buyers. Realizing he= can't discriminate towards any one racial group, he advises his sales agent to= be sure to set up a quota for Caucasian, black, Chicano, and Asian buyers.<= span style=3D'mso-spacerun:yes'> Once the quota has been reached they should discourage any further sales to that racial group by adjusting the prices. If the developer follows= this plan, he violates: A. No fair housing laws B. The fair housing laws based on his ad campaign but not the quota system C. The fair housing laws based on his racial quota system but not the ad campaign D. The fair housing laws in both his ad campaign and racial quota system
143	142. A broker = is required to keep his principal informed of all material facts. A broker who holds a listing from the seller must disclose which of the following facts when presenting an off= er: A. The purchaser is not of the Caucasian race B. A cooperating broker will be presenting a higher offer the following day C. The buyer's lender is insisting on an impound account D. None of the above
144	143. Which of the following items would most likely appear as a credit= on the seller's closing statement? A. Prepaid taxes B. An assumed loan C. Title insurance premium D. Delinquent assessment lien
145	144. An assess= ment bond was levied against a property for street improvements just prior to= the date the property taxes became a lien. Under these circumstances: A. The property taxes have priority over the assessment B. The assessment has priority over the property taxes C. The assessment and the property taxes are on a parity with each other D. The assessment has the same priority as a mechanic's lien
146	145. All of the following are personal property except: A. Trade fixtures B. Easements C. Trust deeds D. Mortgages
147	146. Which of = the following would best describe the sudden tearing away of land by the act= ion of water? A. Alluvium B. Avulsion C. Accretion D. Erosion
148	147. The repla= cement cost approach is more difficult to apply to older properties than to new= er properties because: A. Historic costs are difficult to obtain B. Land prices are difficult to determine on older properties C. Depreciation schedules are difficult to determine on older properties D. Zoning and building codes are subject to change
149	148. Which of = the following appraisal reports would be the most comprehensive and complete= ? A. Narrative B. Certificate C. Letter D. Printed form
150	149. When appl= ying the market data approach in the appraisal of a single family residence, the appraiser would use the value of comparable properties based on the day the: A. Purchase agreement had been signed B. Escrow closed C. Deed was recorded D. Lender issued their commitment
151	150. One of the essential requirements for a transaction to qualify as a tax free exchan= ge is that the properties being exchanged: A. Be residential properties B. Have the same assessed value C. Have the same equity D. Be like for like
152