California: Real Estate Principles Practice Exam 1
1. 1 of 50 - Which form of payment is most common for a property manager?
A. A percentage of income.
B. A salary.
C. A flat fee.
D. All of the Above: A. A percentage of income.
2. 2 of 50 - Which of the following is exempt from the Natural Hazards
Disclosure?
A. A special flood area. B.
A geological hazard.
C. A wildland high fire severity area.
D. A seismic hazard zone.: B. A geological hazard.
3. 3 of 50 - Shakeel and Shaheen have sold their home, made an offer on Derek
and Kamisha's home, and the offer was accepted. All the details of the sale
have been worked out, agreed upon and signatures obtained. Now, Shakeel
and Shaheen must obtain a loan for the property. What is the best term to
describe their position in the transaction's timeline?
A. In Contract
B. Chain of Title
C. Abstract and Opinion
D. Both B and C: A. In Contract
4. 4 of 50 - Ted and Lisa are selling their home and have signed a listing
agreement. Client or customer? Steven visits Ted and Lisa's open house,
and he is interested in purchasing their home. What happens next? Is
Steven a client or customer?
A. Ted and Lisa are customers, and Steven is a client. The listing agent
must disclose to Steven that Ted and Lisa are customers.
B. Ted and Lisa are clients, as is Steven. The listing agent must disclose
to Steven that Ted and Lisa are also clients.
C. Ted and Lisa are customers, and Steven is a client. The listing agent
must disclose to Steven that he/she represents Ted and Lisa and explain
customer relationships
, California: Real Estate Principles Practice Exam 1
D. Ted and Lisa are clients, and Steven is a customer. The listing agent
must disclose to Steven that he/she represents Ted and Lisa and explain
customer relationships.: D. Ted and Lisa are clients, and Steven is a customer.
The listing agent must disclose to Steven that he/she represents Ted and Lisa and
explain customer relationships.
5. 5 of 50 - In early common law, transfers of land were only made when:
A. The transfer of land from husband to wife, upon the husband's death.
B. The transfer of land from father to child, upon the father's death.
C. The transfer of land from father to son, upon the father's death.
D. Both A and B: C. The transfer of land from father to son, upon the father's death.
6. 6 of 50 - What are the parts of a mortgage loan? What purpose does each
part serve?
A. A Pledge and Collateral. A Pledge is a promise to pay; and Collateral
allows a lender the right to foreclose if the borrower does not pay.
B. A Promissory Note, a Deed of Trust, and Collateral. A Promissory Note
is an I.O.U. to pay; a Deed of Trust secures the interest in a borrower's real
property; and Collateral allows a lender the right to foreclose if the borrower
does not pay.
C. A Pledge and Collateral. A Pledge allows a lender the right to foreclose
if the borrower does not pay; and Collateral is a promise to pay.
D. None of the Above.: A. A Pledge and Collateral. A Pledge is a promise to
pay; and Collateral allows a lender the right to foreclose if the borrower does not
pay.
7. 7 of 50 - Jack is leasing a home from Justin for a year. He has decided to
lease until he gets a good feel for the area and knows where he wants to buy.
In this relationship, who has the reversionary right and who has the
possessory right ?
A. Jack has the possessory right and Justin the reversionary right.
B. Jack has the reversionary right and Justin the possessory right.
C. Jack and Justin both have the possessory right.
D. Jack and Justin both share the reversionary right.: A. Jack has the
possessory right and Justin the reversionary right.
, California: Real Estate Principles Practice Exam 1
8. 8 of 50 - Which of the following is not a characteristic of the California
mortgage market?
A. California has a large amount of the country's biggest commercial and
savings banks.
B. California has a high population; therefore more people means more
homes are needed.
C. Mortgages are used instead of Deeds of Trust, which allows borrowers
greater flexibility and protection.
D. California has a very active secondary mortgage market.: C. Mortgages
are used instead of Deeds of Trust, which allows borrowers greater flexibility and
protection.
9. 9 of 50 - Bob leased an apartment for three years from the Steiners. He was
never late on his rent in those three years, kept the apartment immaculate,
and never caused a moment of trouble. He has recently purchased his first
home and moved out of the apartment. As expected, Bob gave the Steiners
sixty days' notice he would be moving and left the apartment in perfect
condition. It has been 45 days since he moved out and he's been watching for
his security deposit refund to purchase a new sofa. When should he expect
his security deposit refunded?
A. If there had been no damage or cleaning required, which seemed highly
likely in Bob's case, the landlord should have refunded his security deposit
within 21 days of Bob's vacating the property.
B. If there had been no damage or cleaning required, which seemed highly
unlikely in Bob's case, the landlord should have refunded his security deposit
within 30 days of Bob's vacating the property.
C. If there had been no damage or cleaning required, which seemed highly
unlikely in Bob's case, the landlord should have refunded his security deposit
within 14 days of Bob's vacating the property.
D. None of the Above.: A. If there had been no damage or cleaning required,
which seemed highly likely in Bob's case, the landlord should have refunded his
security deposit within 21 days of Bob's vacating the property.
10. 10 of 50 - Chip is a veteran who fought in Desert Storm. He has just retired
from the military. He has been told he qualifies for a property tax exemption
1. 1 of 50 - Which form of payment is most common for a property manager?
A. A percentage of income.
B. A salary.
C. A flat fee.
D. All of the Above: A. A percentage of income.
2. 2 of 50 - Which of the following is exempt from the Natural Hazards
Disclosure?
A. A special flood area. B.
A geological hazard.
C. A wildland high fire severity area.
D. A seismic hazard zone.: B. A geological hazard.
3. 3 of 50 - Shakeel and Shaheen have sold their home, made an offer on Derek
and Kamisha's home, and the offer was accepted. All the details of the sale
have been worked out, agreed upon and signatures obtained. Now, Shakeel
and Shaheen must obtain a loan for the property. What is the best term to
describe their position in the transaction's timeline?
A. In Contract
B. Chain of Title
C. Abstract and Opinion
D. Both B and C: A. In Contract
4. 4 of 50 - Ted and Lisa are selling their home and have signed a listing
agreement. Client or customer? Steven visits Ted and Lisa's open house,
and he is interested in purchasing their home. What happens next? Is
Steven a client or customer?
A. Ted and Lisa are customers, and Steven is a client. The listing agent
must disclose to Steven that Ted and Lisa are customers.
B. Ted and Lisa are clients, as is Steven. The listing agent must disclose
to Steven that Ted and Lisa are also clients.
C. Ted and Lisa are customers, and Steven is a client. The listing agent
must disclose to Steven that he/she represents Ted and Lisa and explain
customer relationships
, California: Real Estate Principles Practice Exam 1
D. Ted and Lisa are clients, and Steven is a customer. The listing agent
must disclose to Steven that he/she represents Ted and Lisa and explain
customer relationships.: D. Ted and Lisa are clients, and Steven is a customer.
The listing agent must disclose to Steven that he/she represents Ted and Lisa and
explain customer relationships.
5. 5 of 50 - In early common law, transfers of land were only made when:
A. The transfer of land from husband to wife, upon the husband's death.
B. The transfer of land from father to child, upon the father's death.
C. The transfer of land from father to son, upon the father's death.
D. Both A and B: C. The transfer of land from father to son, upon the father's death.
6. 6 of 50 - What are the parts of a mortgage loan? What purpose does each
part serve?
A. A Pledge and Collateral. A Pledge is a promise to pay; and Collateral
allows a lender the right to foreclose if the borrower does not pay.
B. A Promissory Note, a Deed of Trust, and Collateral. A Promissory Note
is an I.O.U. to pay; a Deed of Trust secures the interest in a borrower's real
property; and Collateral allows a lender the right to foreclose if the borrower
does not pay.
C. A Pledge and Collateral. A Pledge allows a lender the right to foreclose
if the borrower does not pay; and Collateral is a promise to pay.
D. None of the Above.: A. A Pledge and Collateral. A Pledge is a promise to
pay; and Collateral allows a lender the right to foreclose if the borrower does not
pay.
7. 7 of 50 - Jack is leasing a home from Justin for a year. He has decided to
lease until he gets a good feel for the area and knows where he wants to buy.
In this relationship, who has the reversionary right and who has the
possessory right ?
A. Jack has the possessory right and Justin the reversionary right.
B. Jack has the reversionary right and Justin the possessory right.
C. Jack and Justin both have the possessory right.
D. Jack and Justin both share the reversionary right.: A. Jack has the
possessory right and Justin the reversionary right.
, California: Real Estate Principles Practice Exam 1
8. 8 of 50 - Which of the following is not a characteristic of the California
mortgage market?
A. California has a large amount of the country's biggest commercial and
savings banks.
B. California has a high population; therefore more people means more
homes are needed.
C. Mortgages are used instead of Deeds of Trust, which allows borrowers
greater flexibility and protection.
D. California has a very active secondary mortgage market.: C. Mortgages
are used instead of Deeds of Trust, which allows borrowers greater flexibility and
protection.
9. 9 of 50 - Bob leased an apartment for three years from the Steiners. He was
never late on his rent in those three years, kept the apartment immaculate,
and never caused a moment of trouble. He has recently purchased his first
home and moved out of the apartment. As expected, Bob gave the Steiners
sixty days' notice he would be moving and left the apartment in perfect
condition. It has been 45 days since he moved out and he's been watching for
his security deposit refund to purchase a new sofa. When should he expect
his security deposit refunded?
A. If there had been no damage or cleaning required, which seemed highly
likely in Bob's case, the landlord should have refunded his security deposit
within 21 days of Bob's vacating the property.
B. If there had been no damage or cleaning required, which seemed highly
unlikely in Bob's case, the landlord should have refunded his security deposit
within 30 days of Bob's vacating the property.
C. If there had been no damage or cleaning required, which seemed highly
unlikely in Bob's case, the landlord should have refunded his security deposit
within 14 days of Bob's vacating the property.
D. None of the Above.: A. If there had been no damage or cleaning required,
which seemed highly likely in Bob's case, the landlord should have refunded his
security deposit within 21 days of Bob's vacating the property.
10. 10 of 50 - Chip is a veteran who fought in Desert Storm. He has just retired
from the military. He has been told he qualifies for a property tax exemption
