221. Blank, special, restrictive, and qualified are all terms used to specify types of:

A. Liens

B. Leases

C. Contracts

D. Endorsements

Answer: D. Endorsements

222. The phrase in a loan contract that specifies “all due and payable upon the happening of a certain event” would be classified as:

A. An exculpatory clause

B. An escalator clause

C. A release clause

D. An acceleration clause

Answer: D. An acceleration clause

223. When a property is sold during a tight money market and the existing loan contains an alienation clause, which of the following is most likely to occur?

A. Buyer will assume the loan on existing terms

B. Seller would refinance the property before the sale

C. Buyer will take title “subject to” the loan

D. Buyer will secure new financing

Answer: D. Buyer will secure new financing

224. Which of the following would be considered a quiet title action?

A. Purchasing property through a dummy buyer

B. An action to remove a noisy tenant

C. A foreclosure action

D. Court action to remove a cloud on the title

Answer: D. Court action to remove a cloud on the title

225. The government’s control over land use, planning and zoning are an important example of:

A. Eminent domain

B. Police power

C. Deed restrictions

D. All of the above

Answer: B. Police power

226. Which of the following acts by a real estate broker would not be a violation of the real estate law?

A. Taking a net listing

B. Failure to put a definite termination date in an exclusive listing

C. Failure to give a copy of the contract to the person who signed it at the time they sign

D. Taking an option on a property and collecting a commission on that option

Answer: A

227. A corporation is prohibited from holding title to real property in California with anyone as a joint tenant because:

A. It is a violation of the Securities Act

B. Of its perpetual existence

C. It is difficult to list all stockholders in the deed

D. A corporation cannot hold title to real property

Answer: B. Of its perpetual existence

228. Charles died intestate and left a $60,000 estate but no heirs. His estate would:

A. Revert to the state

B. Escheat to the county

C. Be held for five years by the state and then revert to the county

D. Be given to a charitable organization

Answer: A. Revert to the state

229. When land gradually builds up as a result of the action of water, it is known as:

A. Avulsion

B. Reliction

C. Erosion

D. Accretion

Answer: D. Accretion

230. A first trust deed can usually be distinguished from a second trust deed by the:

A. Heading of the recorded document

B. Information contained in the note

C. Recorder’s margin notation

D. Time and date of recordation

Answer: D. Time and date of recordation