DRE Salesperson Exam 2023 Questions and Answers(RATED A+)

How many baseline and meridian systems in CA? - ANSWER-3 A resident of Nebraska who owns property in CA dies while in Vermont. The probate procedures for this property are in? - ANSWER-CA In the order in which they are to occur, the three steps of agency discosure are? - ANSWER-disclose, elect, confirm The value of a residential property is best measured by which of the following groups of characteristics? - ANSWER-Demand, utility, scarcity, and transferability Collateralized loan - ANSWER-A loan secured by another loan, rather than a property Excess Land - ANSWER-Used for practical purposes such as storage Frank leased a property to Chester. Chester gave Mark an easement over the property. At the end of the lease term: - ANSWER-the easement may not extend beyond the term of Chester's lease In a newspaper advertisment, Annual percentage rate (APR) - ANSWER-May stand alone as financial info without providing any additional financial info When a lease is for a period greater than one year, the contract does not require the signature of - ANSWER-Does not requiree the signature of the owner, only the tenant A landlord is required to provide a copy of the written lease to the tenant within: - ANSWER-15 calendar days In an escrow statement, "recurring costs" refers to - ANSWER-Impound account items A subdivider needs to give a copy of the real estate commisionners public report to: - ANSWER-Anyone upon request Quiet title: - ANSWER-A court action to clear clouds on the title of a property. FHAs and mortgage - ANSWER-The FHA insures mortgages but DOES NOT fund them The existance of a military establishment that contains explosives needs to be disclosed if it is located within how miles of the property? - ANSWER-1 mile Option adjustable rate mortgatge (ARM) - ANSWER-has negative amortization, meaning that the monthly payments are less than the interest accruing Executor/Executrix - ANSWER-as a testator or person making a will, you are allowed to designate an executor or executrix as the representative to carry out your will when you die. If the Real Estate Commissioner feels the need to retract approval of a subdivision... - ANSWER-they issue a desist and refrain order Appraising a multi-million dollar home requires: - ANSWER-A certified residential license and a certified general license The calendar date that is of most concern to an appraiser is the date: - ANSWER-The date That the purchase contract was signed How long does an easement last when no termination or date length is stated? - ANSWER-Perpeuity Civil rights act of 1968 - ANSWER-Outlawed sexual discrimination in house sales and rentals How does a mortgage provide the most protection to an owner in property default - ANSWER-A mortgage requires judicial foreclosure and thus offers the greatest protection as the owner is provided a longer period of time to cure the default The rumsford act - ANSWER-Denies discrimination to one to four residential properties as well as vacant land designed for residential use (rumsford-racist) Escheat - ANSWER-The STATE GOV takes property upon an owners death if there is no will & no heirs exist. Usage of the Sales Comparison Approach - ANSWER-The most commonly used appraisal method to value RAW LAND since it neither has an improvement cost nor an income generated Mandatory disclosures and fees - ANSWER-They are mandatory and thus a lender cannot charge a borrower a separate fee for the preparation of these required mortgage forms Excess land* - ANSWER-Cannot be being used for practical purposes Avulsion - ANSWER-sudden removal of land by water. typically from a flood. A writ of execution is issued for a - ANSWER-Sheriff's sale A northeast 1/4 of a section contains - ANSWER-160 acres eminent domain - ANSWER-The power of the state to seize private property, and thus is an involuntary transfer Alienation - ANSWER-Refers to the transfer of an interest in a property If the lender accepts a deed in lieu of foreclosure, the lender... - ANSWER-Accepts any junior liens Assignment of Rents Clause - ANSWER-Allows the beneficiary (lender) to receive the rents tendered by tenants when the borrower is in default If a licensees name is on a list of obligors who have not complied with court ordered payment of child support, the licensees renewal application will... - ANSWER-renew as a temporary license, but the debt must be paid within 150 days Under real estate law, how is a real estate salesperson under contract - ANSWER-As an employee of the broker What will title insurance policies NOT insure against? - ANSWER-Zoning or regulation dispute appurtenance - ANSWER-Something that is installed in or sits on property. Ex) swimming pools and fences Trade Fixtures - ANSWER-personal property used in a business and can be removed by the lessee when the lease terminates. (different than an appurtenance because it is personal property) An unlicensed assistant can properly... - ANSWER-prepare a competitive market analysis for a prospect When is an easement terminated? - ANSWER-When the parcels are combined under one ownership Laches - ANSWER-An unreasonable delay in making assertion or claim Narrative appraisal report - ANSWER-The appraisal report provides the greatest degree of detail about a property? To calculate cap rate, the appraiser can use these methods... - ANSWER-Band of investment (weighted cap), summation (value of land + improvements), and market comparison approach Habendum Clause - ANSWER-Defines the nature of the estate being granted Subrogation - ANSWER-The substitution of one person for another in a legal matter Periodic Tenancy - ANSWER-A lease interest in land for an indefinite period involving payment of rent at fixed intervals, such as week to week, month to month, or year to year. The creation of agency does not require a _____ to be valid - ANSWER-a fee Failure to provide the agency law disclosure form: - ANSWER-puts the agent's fee at risk of loss. Return of an investor's investment is provided for through - ANSWER-Depreciation (as an income tax reduction, is the means by which investors have their investment refunded) Coercion - ANSWER-Forcing someone to comply. DOES NOT CREATE AN AGENCY RELATIONSHIP Debt to Income Ratio (DTI) - ANSWER-Sets the amount of debt a borrower can carry in relation to their income. Used to determine if a borrower qualifies for a loan What is an ex of a freehold estate - ANSWER-A life estate subornation of perjury - ANSWER-crime of persuading another person to commit perjury A deed does not need to be recorded to be considered valid - ANSWER- Residential use zoning is labeled w/ what letter - ANSWER-R (and the # corresponds to number of units) an express contract - ANSWER-A mutual agreement structured in writing or orally When two brokers make a verbal agreement to split a commission, the agreement is: - ANSWER-ENFORCABLE Joists - ANSWER-Horizontal wooden beams that support floors and ceilings Who handles the prosecution of a non licensee who performed activities that required a licensee - ANSWER-A local district attorney If apartments are converted into condominiums, an existing tenant needs to be given a period of ____ to either buy the condo or vacate - ANSWER-90 days from public report issuance How long does it take for a ficticious business name to expire - ANSWER-5 years from recordation Can an easement be revoked? - ANSWER-NOPE Tenant at Sufferance - ANSWER-A tenant who wrongfully remains in possession of the premises after a tenancy has expired. Also called holdover tenant. The unit of comparison when appraising land is... - ANSWER-Cost per square foot, cost per acre, and cost per front foot The transfer disclosure statement is not part of the purchase agreement - ANSWER- Joint tenants receives title clean of any obligations made by their partner who became deceased - ANSWER- Estoppel - ANSWER-A legal theory under which a person is barred from asserting or denying a fact because of the person's previous acts or words. obsolescence - ANSWER-situation in which older products and processes become out-of-date (obsolete) A resident manager in an apartment building is required to have a contractor's license for any repairs exceeding... - ANSWER-$500 Economic life - ANSWER-Represents the length of time that a building produces a reasonable return Who sets the interest rate on a FHA insured loan - ANSWER-the lender and the borrower via negotiation Subordination - ANSWER-A junior mortgage gaining priority through the subordination by a higher priority mortgage Does a valid contract need to be in writing - ANSWER-no How soon must a broker deposit a client check that is made out to the brokers trust fund account - ANSWER-3 days What must an appraiser do when they are hired to appraise a property owned by a corporation in which the appraiser owns a share? - ANSWER-Disclose their ownership interest in the property and accept the assignment One of the primary purposes of the Real Estate Settlement Procedures act. (RESPA) is to - ANSWER-Provide consumers with enough info to enable them to effectively shop for settlement services *land sales contract - ANSWER-the owner of land sells it by contract subject to the condition that the seller retains title to the land until the buyer pays the purchase price. NO LEGAL TITLE IS TRANSFERRED What happens when the market turns from a seller's market to a buyer's market - ANSWER-Prices fall When does the attorney general become involved in enforcing Federal Open Housing. Laws - ANSWER-When a conspiracy exists to undermine the laws A listing agreement can be described as.. - ANSWER-A promise for a promise, a bilateral contract, an executory contract A Turnkey Project - ANSWER-Construction of a property from groundbreaking to completion The real estate commissioner deals w/ what court? - ANSWER-The Superior court Senior citizen housing. minimum ages - ANSWER-55 or 62 decidous - ANSWER-trees that lose their leaves The license of an active salesperson working at a branch office is held at the - ANSWER-brokers primary place of business Vendor and vendee is most similar to.. - ANSWER-Seller and a buyer A Fee Simple Estate is defined as - ANSWER-the highest interest one can have in a property An easement over real property can be terminated by: - ANSWER-A release signed by the dominant tenant (the party that benefits from the easement) If a dispute arises during escrow and the buyer and seller cannot agree, the escrow agent may - ANSWER-File an interpleader action with the courts asking for judicial resolution A writ of execution is issued for a: - ANSWER-Sheriffs sale A capital. improvement to a real property will always: - ANSWER-Increase the book value of the property by the cost of the improvement A grant deed has been executed once it has been: - ANSWER-Signed by the grantor Brokers are required to have written employment contracts with: - ANSWER-Salespersons they employ. (not clerical staff or non licensed employees) A negative amortizing loan allows unpaid interest to be added to the principle balance. This is an example of: - ANSWER-Compounding interest Megan's Law - ANSWER-A public database of registered sex offenders The. FHA loan can be paid. by the: - ANSWER-Seller or the buyer The prosecution of a non-licensee who performed activities that require a license is handled by: - ANSWER-A local district attorney What is true of risk and cap rate - ANSWER-Increasing the risk of loss increases the cap rate What is the purpose of a license? - ANSWER-Is to grant the right to use property owned by another person What is presumed with recording a deed? - ANSWER-Delivery and acceptance Are TDS and other disclosures part of the purchase agreement? - ANSWER-Nope. Estoppel - ANSWER-A legal theory barring a person from later asserting or denying a condition based on the person's previous statements A listing broker can have any of the following agency relationships except: - ANSWER-A buyer's agent (As a listing agent, the broker cannot solely represent the buyer under a single agency) When should the seller give the buyer a copy of the structural pest control report after it is complete? - ANSWER-As soon as practicable The interest on an FHA loan is set by - ANSWER-Negotiation between the lender and the borrower The term realtor denoats - ANSWER-Membership in a real estate trade organization Lead Based Paint Disclosure - ANSWER-Applies to residential properties built prior to 1978 A lease is classified as - ANSWER-A personal property interest