REAL ESTATE ACTUAL FINAL EXAM COMPLETE REAL
EXAM QUESTIONS AND WELL ELABORATED ANSWERS
(100% CORRECT VERIFIED ANSWERS) LATEST UPDATES
|GUARANTEED PASS. (FULL REVISED EXAM)
The Ritchie family has put their home on the market. The Sampsons make an offer
on the Ritchies' home. Suddenly, the Ritchies decide not to sell their home. They
explain to Sara, their agent, that the Sampsons "aren't quite right" for the
neighborhood. What should Sara do? - ANSWER: Sara must explain to the Richies
that she cannot ethically remove a property from the market, after an offer has been
made, to sidestep a purchase by a party.
Sara must withdraw herself from the relationship with the Ritchies or from any
situation where client discrimination occurs.
John is studying for his California real estate license. He is studying federal law, state
law, and local law. Now, he is trying to get a handle on something called
"Professional Code." What source has no input on the topic John is currently
studying? - ANSWER: The Better Business Bureau®
Martha and Liz have applied for a mortgage. They both have excellent credit and
very successful careers and they are perfect on paper. Martha and Liz are partners
and are expecting the birth of their first child together. They are denied a loan.
What's the violation here? - ANSWER: Martha and Liz have been denied the full
protection of the Equal Credit Opportunity Act (ECOA). The ECOA is a part of the Fair
Financing Laws.
Jennifer is a single mother looking for a place to live. She sees an ad on Facebook by
a private owner which states "No young children because of pool". Would this be a
Fair Housing Violation? - ANSWER: Yes. Private owners cannot advertise against a
protected class.
While waiting in the lobby of the Fair Real Estate Company's office, Samir and
Rhadika overhear an agent tell clients, "You wouldn't be happy in THAT
neighborhood. It's very "colorful," if you know what I mean." Which ruling by the
Supreme Court dealt with this issue? - ANSWER: All discrimination and appearances
of discrimination in selling or renting residential property based on race and color is
prohibited under the provisions of the Civil Rights Act of 1866, Jones v. Mayer.
Jane feels she has been discriminated against in her search for a new home. She's a
single mother of two who works full time. Where does she go with a complaint? -
ANSWER: The Office of Fair Housing and Equal Opportunity (OFHEO)
,John is still studying for his California real estate license. Once again, he is having a
difficult time keeping areas straight. Help John with the largest area of the NAR Code
of Ethics Standards and Practices. - ANSWER: Article 16 - Ethics and Agency
Relationships
John is trying to keep things straight while he studies. He's having a rough time
distinguishing federal and state legislation. Help John with the primary focus of
federal legislation. - ANSWER: Anti-discrimination laws and fair trade practices
Jane has filed her complaint of discrimination. She also wants to seek some sort of
punitive damages. What are her options, if any? - ANSWER: Jane may file suit within
two years of the violation. She may seek a restraining order, actual damages, and
punitive damages of up to $1,000.
Agent Smith tells the Jacob family the Fernwood neighborhood is beautiful,
attractive, and highly desirable. The next day, Agent Smith tells the Miller family that
Fernwood is deteriorating, values are falling, and the school district is less than
stellar. Name the form of illegal discrimination. - ANSWER: Steering
Jonathan decides to sell his home and transfer all of his property ownership rights to
the new buyer. This bundling and selling of rights is known as: - ANSWER: Livery of
Seisin
John lives in an apartment and each month pays his rental payments. He is also
considered a stockholder in his building and owns property. In what type of
apartment does John live? - ANSWER: Cooperative
To take private property through eminent domain, three steps must be taken by the
state or local government. What are they? - ANSWER: The property owner must be
paid compensation for the property. The property must be for public good or use.
The owner must have due process in the court system.
The Percy family have purchased a heavily wooded property in Northern California.
They are planning to build a guest house off the main house for entertaining. In the
process, many trees will need to be cleared. The family is planning to sell the wood
to the neighbors as firewood. Which process applies? - ANSWER: Severance
Melinda's mother recently passed away. She is thinking of selling her belongings in
an estate sale. During her research, she came across real and personal property
regulations and laws. Please help Melinda understand the legal difference(s)
between real and personal property. - ANSWER: Tax laws often distinguish between
real and personal property.
An agreement for a sale of real property must be in writing and signed by the party
to be charged. If the amount or value is $500 or more, an agreement for the sale of
personal property must be in writing.
,Which of the following is not considered one of the five economic characteristics of
land? - ANSWER: Each parcel of land has its own nonhomogeneous characteristics.
No two properties are the same.
A violent storm comes in from the ocean, hitting the beachfront properties with
destructive force. When the Meyers return to their home, they find the beach has
disappeared from their property. Which term describes the damage? - ANSWER:
Avulsion
Jeremy opened a coffeehouse in a space leased from Maria and Renaldo. A week
before his lease expired, Jeremy moved to a new location without his commercial
microwave which was attached to the counter. Eighteen days following notice of
Jeremy's right to reclaim the microwave, Maria and Renaldo sold the microwave at
auction. Jeremy is furious and threatening legal action. Does he have a suit? -
ANSWER: No, Jeremy does not have a case. Since the microwave was not reclaimed
during the period allowed by law.
Gary and Paul have wooden shutters installed throughout their home. A few years
later, Paul is promoted by his employer and transferred to another city. Gary wants
to take the wooden shutters to their new home. Paul insists they must remain with
the home. Which of the five tests for real and personal property applies? - ANSWER:
Method of Attachment
Adaptability
Intent
Which of the following is not a water right? - ANSWER: Alluvial Right
Suzette is leasing a condo from the Garcias. She has been renting the condo for over
three years. She renews the lease each year and, because of her loyalty and
exemplarily rental history, the Garcia's allow her to make any décor changes she
wishes. Which of the following statements is true about the relationship between
the Garcias and Suzette? - ANSWER: The Garcias own the condo in freehold but rent
it to Suzette in leasehold.
Patrice and Michael are in the process of refinancing their townhouse. The mortgage
company calls and gives the couple the news they have a lien on their home for non-
payment of the previous year's property taxes. What type of lien is on their
property? What do they need to do to remedy their situation? - ANSWER: Patrice
and Michael have an involuntary lien placed on their home for delinquent property
taxes. The couple needs to pay the taxes, any interest and/or late fees, and have the
lien removed.
Which of the following is not considered one of the six distinct forms of ownership in
California? - ANSWER: Voluntary Tenancy
Christine and Scott have been married for fifteen years. They have three children, a
home, and a vacation home. The couple purchased their home together after their
, marriage, but Scott owned the vacation property prior to the union. Christine and
Scott are now getting divorced. Christine wants half of their residence and half of the
ownership of the vacation property. At times they have rented the vacation home
and the proceeds have gone to their joint bank account. Does Christine have any
legal right to the ownership of the vacation home? - ANSWER: No, Scott came to the
marriage with the vacation property, therefore it may remain a separate property.
However, due to the commingling of the rental proceeds from the property in the
joint account, she does have a right to half the proceeds.
Ted and Jack are selling their home to Duncan and Gary. Upon the title search, the
title company discovers Ted and Jack's home is free of any liens or problems and can
be easily sold. Ted and Jack's property holds which type of title? - ANSWER:
Marketable Title
HEH, Inc. owns a large parcel of land which will be used for commercial
development. Upon the sale of the property to HEH, Inc., the grantor in a written
agreement established the lake may never be touched and the property may only be
used for commercial purposes. Which type of private deed restriction is in place for
HEH, Inc.'s property? - ANSWER: Covenant
Penelope is interested in buying a 150-year-old historical home in San Francisco. If
Penelope decides to purchase the home, it must be on the condition the original
architectural features are never removed from the home. Additionally, if Penelope
buys the home and then sells it at some point, the same condition must be in the
sales contract, and so on. What type of freehold estate is this historic home? -
ANSWER: Fee Simple Defeasible
All property in the United States falls under which system of land ownership? -
ANSWER: Allodial System
TBH, Inc. owns land for development adjacent to their corporate headquarters. TBH,
Inc. is the sole owner of the property. The land will be developed as a shopping and
restaurant area. Which form of ownership does this property fall under? - ANSWER:
Severalty
The Moltasanto family has owned a vineyard in Sonoma for over one hundred years.
They have owned all rights to the property since the first day of ownership. The
property is always inherited by the oldest child after the death of the previous
owner. Which type of estate is the Moltasanto family vineyard? - ANSWER: Fee
Simple Absolute
The Ahmed family have signed a contract to buy the Miller family's home. However,
the contract states the Ahmeds must first close on the sale of their current home
within thirty days. If this closing does not occur, the contract is no longer binding for
either party. Which contract term applies? - ANSWER: Contingency