California Legal Aspects of Real Estate
Final Exam Questions with Verified
Answers
If, after a reasonable period of having given a landlord notice, the landlord fails to
make needed repairs to make the premises habitable, the tenant can spend up to:
a. any amount as long as a judge approves
b. $50
c. one month's rent to make necessary repairs
d. one year's rent to fix everything wrong with the unit - ANSWER-c. one month's
rent to make necessary repairs
Multiple listing services may not exclude listings that are not:
a. open listings
b. net listings
c. options listings
d. exclusive right to sell listings - ANSWER-d. exclusive right to sell listings
In order to have a valid contract, a landlord must sign a lease but a tenant can sign
or:
a. move in
b. pay rent
c. do none of these
d. either move in or pay rent - ANSWER-c. do none of these
Newspaper advertisements and information on a multiple listing service are not
offers to sell but merely an:
a. offer to be bound by a future contract
b. order to respond, which, when responded to, creates a binding contract
c. option
d. invitation to negotiate - ANSWER-d. invitation to negotiate
Tenants cannot waive their rights under the landlord's:
a. duty of paying loan obligations
b. implied warranty of habitability
c. doctrine of extreme sensibility
d. right of reasonable appropriation - ANSWER-b. implied warranty of habitability
,The justification for prepayment penalties is to:
a. make up for the interest lost for lenders
b. offset the lender's capital investment in the loan
c. punish the borrower for being late
d. pay for additional collection costs for lenders - ANSWER-a. make up for the
interest lost for lenders
Courts will try to interpret contracts primarily based on:
a. what relatives of the principals say took place
b. market conditions in existence at the time the contract was entered into
c. the intent of the parties
d. the agent's representations to the principals - ANSWER-c. the intent of the parties
A three-day notice must be delivered to the tenant personally or left with a resident
over the age of 18, and a copy must mailed to the:
a. county courthouse
b. tenant's place of residence
c. landlord's place of business
d. county recorder's office - ANSWER-b. tenant's place of residence
The burden of proving the existence of an agency relationship is always on the:
a. principal
b. customer
c. person who seeks to benefit
d. agent - ANSWER-c. person who seeks to benefit
A process in which a neutral third party works with parties to a dispute to help them
reach a satisfactory solution is called:
a. mediation
b. arbitration
c. facilitation
d. legal action - ANSWER-a. mediation
The rationale behind having fictitious trust deeds is to:
a. save a place for a future real trust deed in the county records
b. increase the amount of paperwork at the county recorder's office
c. reduce recording costs
d. prevent fictional buyers from getting title to property - ANSWER-c. reduce
recording costs
, A reasonable period for a landlord to make repairs to make a property habitable is:
a. 1 year
b. however long it takes a landlord to get to it
c. 5 days if it is dangerous, such as a gas leak
c. 30 days - ANSWER-c. 30 days
Market allocation agreements are when real estate firms agree to:
a. form a multiple listing service
b. share advertising costs by sharing a huge ad in the newspaper
c. divide a geographical area to eliminate competition
d. be in competition with each other - ANSWER-c. divide a geographical area to
eliminate competition
An example of a violation of the Sherman Antitrust Act would be:
a. using open house signs that do not have the broker's name on them
b. newspaper advertising
c. group boycotting
d. being a member of a multiple listing service - ANSWER-c. group boycotting
A due-on-sale clause is also known as:
a. an alienation clause
b. an overall clause
c. a due-on-loan-payoff clause
d. an alternative payoff clause - ANSWER-a. an alienation clause
Construction loans are typically:
a. used to remodel older homes
b. long-term loans
c. short-term loans
d. constructed differently than balloon payment loans - ANSWER-c. short-term loans
Self-help evictions, such as removing doors and removing locks,:
Final Exam Questions with Verified
Answers
If, after a reasonable period of having given a landlord notice, the landlord fails to
make needed repairs to make the premises habitable, the tenant can spend up to:
a. any amount as long as a judge approves
b. $50
c. one month's rent to make necessary repairs
d. one year's rent to fix everything wrong with the unit - ANSWER-c. one month's
rent to make necessary repairs
Multiple listing services may not exclude listings that are not:
a. open listings
b. net listings
c. options listings
d. exclusive right to sell listings - ANSWER-d. exclusive right to sell listings
In order to have a valid contract, a landlord must sign a lease but a tenant can sign
or:
a. move in
b. pay rent
c. do none of these
d. either move in or pay rent - ANSWER-c. do none of these
Newspaper advertisements and information on a multiple listing service are not
offers to sell but merely an:
a. offer to be bound by a future contract
b. order to respond, which, when responded to, creates a binding contract
c. option
d. invitation to negotiate - ANSWER-d. invitation to negotiate
Tenants cannot waive their rights under the landlord's:
a. duty of paying loan obligations
b. implied warranty of habitability
c. doctrine of extreme sensibility
d. right of reasonable appropriation - ANSWER-b. implied warranty of habitability
,The justification for prepayment penalties is to:
a. make up for the interest lost for lenders
b. offset the lender's capital investment in the loan
c. punish the borrower for being late
d. pay for additional collection costs for lenders - ANSWER-a. make up for the
interest lost for lenders
Courts will try to interpret contracts primarily based on:
a. what relatives of the principals say took place
b. market conditions in existence at the time the contract was entered into
c. the intent of the parties
d. the agent's representations to the principals - ANSWER-c. the intent of the parties
A three-day notice must be delivered to the tenant personally or left with a resident
over the age of 18, and a copy must mailed to the:
a. county courthouse
b. tenant's place of residence
c. landlord's place of business
d. county recorder's office - ANSWER-b. tenant's place of residence
The burden of proving the existence of an agency relationship is always on the:
a. principal
b. customer
c. person who seeks to benefit
d. agent - ANSWER-c. person who seeks to benefit
A process in which a neutral third party works with parties to a dispute to help them
reach a satisfactory solution is called:
a. mediation
b. arbitration
c. facilitation
d. legal action - ANSWER-a. mediation
The rationale behind having fictitious trust deeds is to:
a. save a place for a future real trust deed in the county records
b. increase the amount of paperwork at the county recorder's office
c. reduce recording costs
d. prevent fictional buyers from getting title to property - ANSWER-c. reduce
recording costs
, A reasonable period for a landlord to make repairs to make a property habitable is:
a. 1 year
b. however long it takes a landlord to get to it
c. 5 days if it is dangerous, such as a gas leak
c. 30 days - ANSWER-c. 30 days
Market allocation agreements are when real estate firms agree to:
a. form a multiple listing service
b. share advertising costs by sharing a huge ad in the newspaper
c. divide a geographical area to eliminate competition
d. be in competition with each other - ANSWER-c. divide a geographical area to
eliminate competition
An example of a violation of the Sherman Antitrust Act would be:
a. using open house signs that do not have the broker's name on them
b. newspaper advertising
c. group boycotting
d. being a member of a multiple listing service - ANSWER-c. group boycotting
A due-on-sale clause is also known as:
a. an alienation clause
b. an overall clause
c. a due-on-loan-payoff clause
d. an alternative payoff clause - ANSWER-a. an alienation clause
Construction loans are typically:
a. used to remodel older homes
b. long-term loans
c. short-term loans
d. constructed differently than balloon payment loans - ANSWER-c. short-term loans
Self-help evictions, such as removing doors and removing locks,:
