111. An appraiser is using the Market Data Approach. If the comparable property has a good feature that is not present in the subject property, the value of that feature will be:

A. Identified in the report but given no consideration

B. Ignored since no two properties are alike

C. Subtracted from the sales price of the comparable

D. Added to the sales price of the subject property

Answer: C. Subtracted from the sales price of the comparable

112. Before an advance fee may be collected from a consumer, how many calendar days in advance must an advance fee agreement be submitted to the Department of Real Estate for review?

A. 5

B. 10

C. 15

D. 20

Answer: B. 10

113. When a title insurance policy is being issued, an on-site inspection would be least likely conducted when issuing:

A. An extended coverage policy on an apartment

B. An extended coverage policy on a home

C. A standard policy covering a home

D. An ALTA policy covering a home

Answer: C. A standard policy covering a home

114. One document which requires verification and recording for its validity is a:

A. Trust deed

B. Notice of Default

C. Judgment affecting real property

D. Mechanic’s Lien

Answer: D. Mechanic’s Lien

115. On home loans, the interest paid for the use of the money is almost always:

A. Discount interest

B. Compound interest

C. Simple interest

D. Annuity interest

Answer: C. Simple interest

116. Lenders know that the lower the loan-to-value ratio, the higher the:

A. Appraised value

B. Probability of default

C. Equity

D. Amount loaned

Answer: C. Equity

117. In the event that a property is sold by the owner, A broker must show he was the “procuring cause” of a sale to be entitled to a commission in all of the following types of listings EXCEPT:

A. An Exclusive Agency Listing

B. An Exclusive Authorization and Right to Sell Listing

C. An Open Listing

D. A Non-Exclusive Listing

Answer: B. An Exclusive Authorization and Right to Sell Listing

118. If a seller wanted to relieve herself of the primary liability for payment of a trust deed and note, she must find a buyer who is willing to:

A. Assume the trust deed and note liability

B. Sign a Release Agreement

C. Take title subject to the trust deed and note

D. Execute a Subordination Agreement

Answer: A. Assume the trust deed and note liability

119. Who will entitle a development project near the coastline area?

A. State Coast Commission

B. California Constitution

C. State Mining and Geology Administration

D. California Department of Transportation

Answer: A. State Coast Commission

120. When a title company issues a California Standard Policy of Title Insurance, the policyholder is insured against loss because of:

A. Unrecorded liens and encumbrances

B. The rights of parties in possession

C. Forgery in the chain of recorded title

D. A defect in the issuance of the policy

Answer: C. Forgery in the chain of recorded title