QUESTION 1: A case involving questions of both federal and state law may be brought in:
a. state court only
b. federal court only
c. state or federal court
d. a special court that is reserved for cases with mixed federal and state issues
QUESTION 2: A change in a zoning ordinance that imposes requirements on one particular property that are different (either stricter or looser) from those that apply to surrounding properties is called:
a. a rezone, and is illegal
b. a rezone, and is legal
c. spot zoning, and is illegal
d. spot zoning, and is legal
QUESTION 3: A deed must be recorded:
a. by the grantor, in the county where the grantor lives
b. by the grantee, in the county where the grantor lives
c. in the county where the subject property is located
d. in the county where the grantee legally resides
QUESTION 4: A dispute resolution method where a neutral third party facilitates discussion between parties but does not impose a decision is:
a. arbitration
b. defenestration
c. mediation
d. negotiation
QUESTION 5: A federal income tax lien is a/an:
a. involuntary and general lien
b. involuntary and specific lien
c. voluntary and general lien
d. voluntary and specific lien
QUESTION 6: A government agency issues a determination of significance concerning a proposed project. This means that:
a. an environmental impact assessment must be completed
b. no environmental impact assessment is necessary, because the project must be modified before further action can be taken
c. an environmental impact assessment has already been completed, and it recommended significant modifications to the project
d. None of the above; developers, not government agencies, issue determinations of significance
QUESTION 7: A government takes title to a portion of a private citizen’s property, in order to widen a road. In return, the government pays the owner the fair market value of the land that was taken. This occurs through what type of legal action?
a. Condemnation
b. Dedication
c. Eminent domain
d. Escheat
QUESTION 8: A lis pendens is a:
a. delayed discovery motion
b. counterclaim
c. right of recovery
d. notice that a lawsuit has been filed that may affect a property’s title
QUESTION 9: A month-to-month tenancy is a type of:
a. periodic tenancy
b. term tenancy
c. tenancy at will
d. tenancy at sufferance
QUESTION 10: A person whose water rights are based on a water permit from the state is said to have:
a. appropriative rights
b. riparian rights
c. permissive rights
d. inalienable rights
QUESTION 11: A private restriction runs with the land. This means that:
a. future owners must follow the restriction only if it is mentioned in the deed
b. future owners must obey the restriction even if it’s not mentioned in the deed
c. future owners can remove the restriction by recording a release and satisfaction
d. future owners can ignore the restriction if a less-strict zoning law addresses the same issue
QUESTION 12: A real estate agent’s duty to inspect the listed property does not apply to:
a. a lease with an option to purchase
b. a manufactured home
c. a new home in a subdivision offered for sale for the first time
d. a residential four-plex
QUESTION 13: A real estate broker would be in violation of antitrust laws if she:
a. told her agents to charge an 8% commission
b. limited her agents to certain geographical areas of town
c. agreed with another broker to set commission splits at 50/50 for all transactions
d. told her agents to set commission splits of 50/50 for all in-house transactions
QUESTION 14: A secured creditor is one who:
a. has been paid in full
b. has a lien against a piece of property as security for the debt
c. has loaned the debtor money based on the debtor’s income and credit rating
d. will have to resort to suing the debtor for a money judgment should the debtor fail to repay the loan
QUESTION 15: A tenant who transfers an entire leasehold estate to another party is a/an:
a. sublessee
b. sublessor
c. assignee
d. assignor
QUESTION 16: A variance is an exception to an area’s zoning and would typically be used to allow:
a. an existing business to continue operation even though the area had recently been changed to single-family residential
b. a property owner with an oddly-shaped lot to build closer to the street than would normally be allowed
c. a group of developers to build an industrial park project in an agricultural zone
d. a hospital, cemetery, or other needed public service to operate in an area not zoned for that use
QUESTION 17: According to Max’s deed, Max has the right to drive across his neighbor’s property to access his own property. Max has a/an:
a. license
b. profit
c. easement
d. servient tenement
QUESTION 18: According to state law, which of the following is a duty owed by an agent to all parties, rather than only to a principal?
a. Disclosure of material facts
b. Integrity
c. Loyalty
d. Utmost care
QUESTION 19: According to the imputed knowledge rule:
a. the principal and agent are held liable only for what they actually know
b. if the principal or agent has information that should be communicated to the other, then each is considered to know that information, even if they don’t
c. the principal is liable for what the agent knows, but the agent is not liable for what the principal knows
d. the agent is liable for what the principal knows, but the principal is not liable for what the agent knows
QUESTION 20: After the tenant vacates a residential unit, the landlord must return the tenant’s security deposit within:
a. 7 days
b. 14 days
c. 21 days
d. 28 days
QUESTION 21: All of the following will terminate an escrow, except:
a. the transaction closes
b. one party breaches the escrow agreement
c. both parties agree to terminate the escrow
d. unilateral withdrawal by one party
QUESTION 22: All of the following may be used as sanctions by the Real Estate Commissioner in a disciplinary proceeding except:
a. a fine of up to $10,000
b. imprisonment for up to one year
c. permanent revocation of a real estate license
d. temporary suspension of a real estate license
QUESTION 23: Amy owns shares of stock in the corporation that holds title to the building she lives in, and she has a long-term lease on her unit. Amy lives in a/an:
a. community apartment complex (CAC)
b. condominium
c. cooperative
d. planned development
QUESTION 24: An activity or conduct that interferes with a property owner’s use and enjoyment of her property is considered to be a/an:
a. trespass
b. nuisance
c. easement
d. attractive nuisance
QUESTION 25: An agency relationship is a fiduciary relationship, which means that:
a. the agent occupies a special position of trust in regard to the principal
b. the agent owes special legal duties to the principal that he doesn’t owe to third parties
c. the agent’s duty to the principal is more important than the agent’s own interests
d. All of the above
QUESTION 26: An estate of potentially infinite duration is the:
a. fee simple determinable
b. fee simple absolute
c. freehold estate
d. life estate
QUESTION 27: Ana has a contract to buy Su Ling’s painting, which is by a famous artist. Su Ling changes her mind and refuses to sell the painting. If Ana sues Su Ling for breach of contract, the court may order Su Ling to fulfill the terms of the contract and sell the painting to Ana, as originally agreed. This remedy is called:
a. rescission
b. specific performance
c. liquidated damages
d. unjust enrichment
QUESTION 28: At a chamber of commerce dinner party, two brokers begin discussing other local real estate agents. Broker A comments that Jim, a local salesperson, is dishonest and that Broker A refuses to do business with him. Broker B nods and says, “That’s a good idea. Why should we send buyers to a dishonest agent?”
a. Although questionable, the brokers are not doing anything illegal since their motivation is to protect buyers
b. If the brokers put their agreement in writing, they will have violated antitrust laws
c. This conversation could be seen as an illegal conspiracy to restrain trade
d. None of the above.
QUESTION 29: Broker Delgado of Main Street Realty notices that her neighbor has listed his home for sale with Steamboat Realty. Broker Delgado knows that Steamboat Realty was recently disciplined by the Real Estate Commissioner for a trust account violation, and tells her neighbor that Main Street Realty could do a much better job of selling the neighbor’s home. Which of the following statements is true?
a. Broker Delgado has done nothing wrong because she has her neighbor’s best interests at heart
b. Broker Delgado has committed a tort called commercial obstruction of business
c. Broker Delgado has committed a tort called interference with contractual relations
d. None of the above
QUESTION 30: Broker Jones operates her brokerage business under the name Glorious Realty. She registered a fictitious business name statement for the name Glorious Realty; her real estate license is issued in her name, Tabitha Jones.
a. This is legal, because she took the necessary step of registering her fictitious business name
b. Broker Jones has violated the license law; her real estate license must be issued under the fictitious name
c. Broker Jones has done nothing wrong, because all she needs is a valid real estate license
d. This is legal, as long as Broker Jones uses the name Glorious Realty in all her advertising and business dealings
QUESTION 31: Broker Lisa misreads a city zoning map and, as a result, gives incorrect zoning information to a buyer. The buyer purchases the property based on what Lisa told him about the zoning. Lisa’s actions would be an example of:
a. actual fraud
b. constructive fraud
c. deceit
d. flagrant disobedience
QUESTION 32: CERCLA’s Superfund is designed to:
a. pay cleanup contractors when a potentially responsible party cannot be located or avoids financial liability
b. compensate contiguous property owners
c. pay every property buyer a small fee so they can satisfy the all appropriate inquiries requirement
d. offer financial subsidies to innocent landowners of contaminated property
QUESTION 33: California has abolished the fee simple:
a. defeasible
b. absolute
c. determinable
d. subject to a condition subsequent
QUESTION 34: Channeling prospective renters into specific neighborhoods based on race is an example of:
a. steering
b. blockbusting
c. panic selling
d. public accommodation
QUESTION 35: Claire sues John and is awarded a judgment for $10,000. Claire lives in Rockingham County, New Hampshire; John lives in Ocean County, New Jersey, where he owns property. To create a judgment lien, Claire must:
a. record a lis pendens in Rockingham County
b. record an abstract of judgment in Ocean County
c. record an abstract of judgment in Rockingham County
d. None of the above
QUESTION 36: Compared to the federal Fair Housing Act, California’s Fair Employment and Housing Act contains a:
a. narrower range of protected classes and fewer exemptions
b. wider range of protected classes and fewer exemptions
c. narrower range of protected classes and more exemptions
d. wider range of protected classes and more exemptions
QUESTION 37: Each of the following must be present before an antitrust violation will be found, except:
a. the existence of a monopoly
b. an unreasonable restraint of trade
c. a conspiracy
d. an impact on competition
QUESTION 38: In California, a successful adverse possession claim requires possession of the property for at least:
a. one year
b. three years
c. five years
d. ten years
QUESTION 39: In California, the sale of personal property is governed by the:
a. Uniform Commercial Code (UCC)
b. National Commercial Code (NCC)
c. California Code of Personal Property
d. Statute of Personalty
QUESTION 40: In California, the statute of limitations requires that a lawsuit over a written contract be brought within ____ years of the breach.
a. two
b. four
c. eight
d. ten
QUESTION 41: In California, which of the following is true?
a. Both civil and criminal verdicts must be unanimous
b. Both civil and criminal verdicts require three-fourths of the jurors to agree
c. Civil case verdicts must be unanimous; criminal case verdicts require three-fourths of the jurors to agree
d. Civil case verdicts require three-fourths of the jurors to agree; criminal case verdicts must be unanimous
QUESTION 42: In a civil case, which of the following is NOT a possible remedy?
a. Monetary damages
b. Injunction
c. Rescission
d. Imprisonment
QUESTION 43: Isabel wins a judgment for $100,000 in Kern County Superior Court. Which of the following describes the widest range of counties where she can record an abstract of judgment and create an enforceable lien?
a. Kern County against any property the defendant owns in Kern County
b. Any county in California where the defendant owns property
c. Any county in the U.S. where the defendant owns property
d. None of the above; the abstract of judgment should be recorded at the state capitol
QUESTION 44: Jeff wants to put his house on the market because he wants to move to Florida. His neighbor, Helen, is a real estate agent. She finds out about his plans and drops by with interested buyers. Jeff and Helen have no agreement whatsoever, but Jeff treats Helen as if she’s his agent, and never says otherwise to third parties. The potential buyers believe Helen is Jeff’s agent. Jeff has given Helen:
a. express authority
b. ostensible authority
c. practical authority
d. authority by necessity
QUESTION 45: Juan grants his house to his sister, Maria, for the rest of her life. Upon her death, the property will go to his son, Guillermo. Guillermo is the:
a. life tenant
b. measuring life
c. remainderman
d. reversioner
QUESTION 46: Maria and Alejandro are an unmarried couple who purchase a home together. The deed to their new home does not mention how the couple is taking title to the property. In this case, the default form of co-ownership will be:
a. community property
b. joint tenancy
c. tenancy in common
d. tenancy in partnership
QUESTION 47: Marsha lists her house with American Realty. Three weeks later, she finds a buyer herself. However, she still owes American Realty a commission. This is because the listing agreement was an:
a. exclusive agency listing
b. exclusive right to sell listing
c. open listing
d. oral listing
QUESTION 48: Melissa, Sonja, and Raziyah own property as joint tenants. Sonja decides to move and sells her interest to Carlos. Which of the following is true?
a. Melissa, Raziyah, and Carlos will own the property as tenants in common
b. Melissa, Raziyah, and Carlos will own the property as joint tenants
c. Melissa and Raziyah will own the property as joint tenants with respect to each other; Carlos will own the property as a tenant in common
d. Carlos only has a life estate; when Sonja dies, her reversionary interest will automatically pass to the remaining joint tenants
QUESTION 49: Mike, Lynn, and Donna own a house together as joint tenants. Donna mortgages her interest to finance her new business. Unexpectedly, she dies two weeks later. On Donna’s death, Mike and Lynn:
a. receive Donna’s interest with the lien intact
b. do not receive Donna’s interest; the lienholder is the new owner of Donna’s interest
c. receive Donna’s interest without the lien
d. become tenants in common
QUESTION 50: Ming, a real estate broker, always recommends Best Mortgage to her buyers, because if she sends enough customers their way, she earns “reward points” from the company that can add up to a free trip to Las Vegas. Which statement is true?
a. This arrangement violates federal law
b. This arrangement violates California law
c. This arrangement is legal, provided the broker has a good faith belief in the quality of the services provided by the mortgage company
d. Both A and B
QUESTION 51: On May 1, Jim sells his property to Carol, who does not record the deed until May 7. On May 2, Jim sells his property to Mario (who is unaware of the previous deed to Carol) and Mario promptly records his deed that day. Which deed has priority?
a. Carol’s deed, because Carol was the first to purchase the property
b. Carol’s deed, because the sale to Mario is invalid
c. Mario’s deed, because he was the first to record his deed
d. None of the above
QUESTION 52: Part of the Fifth Amendment to the U.S. Constitution states “…nor shall private property be taken for public use, without just compensation.” This is known as the:
a. Due Process Clause
b. Equal Protection Clause
c. Property Compensation Clause
d. Takings Clause
QUESTION 53: Rights that go along with ownership of a particular piece of property are known as:
a. covenants
b. appurtenances
c. personalty
d. undivided interests
QUESTION 54: Some areas of law are addressed:
a. by both state and federal law
b. primarily by state law
c. primarily by federal law
d. Any of the above may be correct
QUESTION 55: Suppose an agent has no express authority when she commits an act that benefits the principal, but the principal approves the act after the fact. This creates an agency by:
a. estoppel
b. express agreement
c. implication
d. ratification
QUESTION 56: The Americans with Disabilities Act requires property owners to:
a. rent a certain percentage of their units to the disabled (in residential properties with more than 4 units)
b. modify their policies and procedures to accommodate the disabled
c. remove unreasonable architectural, communication, and transportation barriers to disabled access
d. Both B and C
QUESTION 57: The Real Estate Settlement Procedures Act (RESPA) prohibits:
a. kickbacks
b. unearned fees
c. a seller requiring a buyer to use a particular title company
d. All of the above
QUESTION 58: The ______ method of land description identifies a parcel by establishing a starting point, and then giving directions that allow a surveyor to trace around the parcel’s boundaries.
a. government survey
b. metes and bounds
c. recorded map
d. plat map
QUESTION 59: The boundary line between Sam’s property and Rachel’s property is about one foot from the back of Rachel’s barn. Rachel stores several ladders, wooden pallets, and other farm equipment behind her barn, most of it resting on Sam’s property. This is an example of a/an:
a. public nuisance
b. encroachment
c. continuing trespass
d. Both B and C
QUESTION 60: The duty of _________ requires an agent to act ethically, to follow the rules, and to accept responsibility.
a. utmost care
b. integrity
c. honesty
d. loyalty
QUESTION 61: The federal Endangered Species Act protects:
a. endangered plants on all land in the U.S.; endangered animals only on federal land
b. endangered plants only on federal land; endangered animals on all land in the U.S.
c. both endangered plants and animals only on federal land
d. both endangered plants and animals on all land in the U.S.
QUESTION 62: The federal Fair Housing Act prohibits discrimination against people in all of the following categories except:
a. national origin
b. gender
c. handicap
d. sexual orientation
QUESTION 63: The federal Fair Housing Act provides exemptions for all of the following kinds of transactions except:
a. the sale or rental of a single-family home by a private owner
b. a room rental in an owner-occupied residence
c. any sale or rental where the owner is represented by a licensed real estate broker
d. the rental of noncommercial lodgings by a religious organization
QUESTION 64: The greatest estate that can exist in land is the:
a. fee simple subject to a condition subsequent
b. fee simple determinable
c. fee simple absolute
d. life estate
QUESTION 65: The listing agent must give a copy of the agency disclosure form to the seller:
a. before the seller signs the listing agreement
b. within three days of the seller signing the listing agreement
c. within five days of the seller signing the listing agreement
d. within seven days of the seller signing the listing agreement
QUESTION 66: The lobby, swimming pool, and parking lot of a condominium complex are likely to be considered:
a. limited interest fixtures
b. common elements
c. shared stock features
d. publicly owned amenities
QUESTION 67: The person named in a will to act as the personal representative of the testator’s estate is the:
a. devisee
b. legatee
c. executor
d. grantee
1 points
QUESTION 68: The right of survivorship always applies to:
a. community property
b. joint tenancy
c. ownership in severalty
d. tenancy in common
QUESTION 69: The sale or lease of a business, including the inventory, equipment, goodwill, and other assets, is the definition of a:
a. lease-option transaction
b. commercial property transaction
c. business opportunity
d. tenancy in partnership
QUESTION 70: The standard of proof in a civil case is:
a. beyond a reasonable doubt
b. a mere scintilla of evidence
c. a preponderance of the evidence
d. Both A and C
QUESTION 71: The state government’s power to adopt and enforce laws for the protection of the public health, safety, morals, and general welfare is called:
a. inverse condemnation
b. police power
c. enactment power
d. power of eminent domain
QUESTION 72: The statutory redemption period following a trustee’s sale is:
a. six months, if the sale proceeds were adequate to pay off the debt plus costs and interest
b. three months, if the sale proceeds were adequate to pay off the debt plus costs and interest
c. three months, if the sale proceeds were not adequate to pay off the debt plus costs and interest
d. There is no statutory redemption period for a nonjudicial foreclosure
QUESTION 73: There are three basic types of title insurance coverage: standard, extended, and homeowners. Unlike standard coverage, extended coverage and homeowner’s coverage offer protection against a/an:
a. deed with a forged signature
b. deed lacking a necessary spousal signature
c. deed signed by an incompetent grantor
d. adverse possession claim
QUESTION 74: This document gives one person the authority to sign a deed or other document on another person’s behalf:
a. lis pendens
b. power of sale
c. power of termination
d. power of attorney
QUESTION 75: To be recorded, a deed must be acknowledged. A deed is acknowledged when the:
a. grantee accepts the deed
b. grantee signs the deed
c. grantor declares before a notary public that his signature is voluntary
d. grantee declares before a notary public that her acceptance is voluntary
