181. A builder has new homes for sale. Upon the sale of one unit where there is a blanket mortgage on the land, what title would the buyer receive?

A. Grant deed

B. Quitclaim deed

C. Partial conveyance

D. Warranty deed

Answer: A. Grant deed

182. A real estate broker negotiates the sale of a home on behalf of the seller in which the buyer obtains a new first trust deed and the seller carries back a second trust dee for part of the purchase price. The broker recommends to the seller that they execute and record a “Request for Notice of Default.” This would be done for the benefit of the:

A. Beneficiary of the first trust deed

B. Beneficiary of the second trust deed

C. Trustee of the first trust deed

D. Trustee of the second trust deed

Answer: B. Beneficiary of the second trust deed

183. On any loan that is subject to the Federal Truth In-Lending Act, the lender must disclose the annual percentage rate on the loan. The annual percentage rate (APR) is the:

A. Dollar cost of the financing for one year

B. Cost of the credit, including interest and other financing fees, expressed as an annual rate

C. Nominal interest rate

D. Amount of the discount expressed as an annual rate

Answer: B. Cost of the credit, including interest and other financing fees, expressed as an annual rate

184. Which of the following factors would tend to make real estate values unstable in a residential neighborhood?

A. An increasing amount of average-priced homes are being constructed in a neighborhood with a number of high-priced homes.

B. Local zoning requirements that prohibit the construction of additional family units.

C. The residents of a neighborhood are of the same ethnic background and religious beliefs.

D. The subdivider demands that all homes have a minimum number of square feet and value.

Answer: A. An increasing amount of average-priced homes are being constructed in a neighborhood with a number of high-priced homes.

185. Misuse of the term “Realtor” is:

A. A violation of the California Real Estate Law

B. A felony offense

C. Unethical but not illegal

D. Only unethical in California

Answer: A. A violation of the California Real Estate Law

186. When the Real Estate Commissioner wishes to proceed against a licensee for a suspected violation, the Commissioner must first serve the licensee with:

A. A complaint

B. A demurrer

C. A statement of issues

D. An accusation

Answer: D. An accusation

187. A broker shows a prospective buyer a home. The buyer makes an offer which the seller accepts. The broker, buyer and seller then go to the Reliable Escrow Company where the buyer makes out a personal check for a $1000 deposit payable to Reliable Escrow Company and hands it to the escrow officer. Which is correct?

A. The broker has to keep a record of the check in his record of all trust funds received and paid out.

B. The broker has to keep a record of the check in his record of all trust funds received and not placed in the trust account.

C. The broker has to keep a record of the check in his separate record for each beneficiary or transaction.

D. The broker does not have to keep a record of the check.

Answer: D. The broker does not have to keep a record of the check.

188. A disclosure form must be given to the purchaser of any property that is subject to a lien created under the Mello-Roos Community Facilities Act. The party that is responsible for the delivery of his statement is the:

A. Seller

B. Escrow agent

C. Broker

D. Title company

Answer: A. Seller

189. A developer who owned a large parcel of land wanted to subdivide the parcel and sell individual lots to potential builders of single-family residences. In order to finance the cost of streets, sidewalks, and gutters for a new subdivision, intending to pass these costs to the purchasers, the subdivider would use:

A. Land Sales Contracts

B. Mello-Roos municipal bonds

C. First and second trust deeds

D. Improvement bonds

Answer: B. Mello-Roos municipal bonds

190. A disclosure statement regarding an earthquake hazard must contain which of the following?

A. Location of power lines, flood zones and other hazards.

B. Whether the property is or is not in an official earthquake fault zone.

C. The location of all emergency services.

D. All of the above.

Answer: B. Whether the property is or is not in an official earthquake fault zone.