Question 67: Which of the following would not be classified as a specific lien? 

• A. An attachment 
• B. Property tax lien 
• C. Judgment 
• D. Mechanic’s lien 
• Answer: C 

Question 68: A title plant is a: 

• A. Policy of title insurance 
• B. Clause in a grant deed 
• C. Collection of real estate records 
• D. Conventional lender 
• Answer: C 

Question 69: In a real estate transaction, who is not responsibile for agency disclosure? 

• A. Principal 
• B. Listing Broker 
• C. Selling Broker 
• D. Cooperating Broker 
• Answer: A 

Question 70: Enforcement of the State Housing Law is accomplished through the: 

• A. Local building inspectors 
• B. Real Estate Commissioner 
• C. Corporation’s Commissioner 
• D. State Contractor’s License Board 
• Answer: A 

Question 71: The stated policy of the Real Estate Commissioner is to create a “color-blind” industry which can help society obtain voluntary, equal opportunity in fair housing. What does this mean? 

• A. Maintain an attitude that is actually free from bias and color-blind to appearance 
• B. That race, creed or color is not a material fact in real estate transactions 
• C. Do unto others as you would have them do unto you 
• D. All of the above 
• Answer: D 

Question 72: State law requires that every city or county create a planning commission: 

• A. When funds have been appropriated by local government 
• B. Without exception 
• C. After a master plan has been approved 
• D. Membership of which must be comprised of at least three members of the City Council and the County Board of Supervisors 
• Answer: B 

Question 73: If there is a conflict between the signed escrow instructions and the signed deposit receipt, which of the following would be binding? 

• A. The escrow instructions 
• B. The deposit receipt 
• C. The broker’s oral instructions 
• D. The general policy of the escrow office 
• Answer: A 

Question 74: A person that is employed by another to act on his or her behalf may be considered: 

• A. An employee 
• B. An agent 
• C. An independent contractor 
• D. Any of the above 
• Answer: D 

Question 75: To hold real property as tenants in common, individuals must: 

• A. Be husband and wife 
• B. Hold equal interests 
• C. Arrange for possession 
• D. Hold undivided interests 
• Answer: D 

Question 76: The lease contract is considered: 

• A. Real property 
• B. Personal property 
• C. A freehold estate 
• D. None of the preceding 
• Answer: B 

Question 77: An estate of inheritance or a perpetual estate would be: 

• A. An estate for years 
• B. A fee simple estate 
• C. Less than freehold estate 
• D. A life estate 
• Answer: B 

Question 78: Which one is considered unlawful compensation? 

• A. Agent received compensation directly from seller 
• B. Agent received compensation for consulting service provided to his friend on searching property 
• C. Agent received direct compensation in a sales transaction from a broker with whom agent has no employment relationship 
• D. None of the above 
• Answer: C 

Question 79: When a listing is signed by a seller and a broker, a fiduciary relationship is created between the broker and the: 

• A. Seller 
• B. Buyer 
• C. Seller and buyer 
• D. General public 
• Answer: A 

Question 80: Broker finds a cooperating broker without noticing the principal, who does the cooperating broker owe fiduciary duties to? 

• A. Principal 
• B. The original broker 
• C. No one 
• D. None of the above 
• Answer: A 

Question 81: Which of the following represents a gross misrepresentation by an agent? 

• A. The representation is an obvious falsehood 
• B. The representation is made with the knowledge of it being a falsehood 
• C. The representation caused the aggrieved party to enter into the contract 
• D. All of the above 
• Answer: D 

Question 82: Most real estate contracts are in writing on preprinted forms. Some of the terms of these contracts must be written in and other parts are preprinted. In the interpretation of such contracts: 

• A. Printed parts take precedence over the written parts 
• B. The written parts and the printed parts are given equal consideration 
• C. The written parts take precedence over the printed parts 
• D. If any conflict exists between the written and the printed part, the contract is void 
• Answer: C 

Question 83: A cautious buyer paid $200 for a four-month option to purchase a property for $30,000. Under these circumstances, each of the following are true except: 

• A. Optionee has given adequate consideration 
• B. Optionee has created a legal interest in the property 
• C. Optionor’s temporary surrender of right to sell is “valuable” consideration 
• D. The agreement imposes no obligation on the optione to purchase the property 
• Answer: B 

Question 84: According to the provisions of both federal and state civil rights legislation, discrimination due to race, color, creed or national origin in housing is: 

• A. Unenforceable 
• B. Unlawful 
• C. Illegal 
• D. All of the above 
• Answer: D 

Question 85: Which of the following is generally demanded in every sale of real property in California? 

• A. A warranty deed 
• B. An abstract of title 
• C. A policy of title insurance 
• D. A trust deed 
• Answer: C 

Question 86: An appraiser in analyzing the data for his final estimate of value on a property would give least consideration to: 

• A. The assessed value of the property 
• B. The value of the land 
• C. Comparisons of other properties 
• D. Its highest and best use 
• Answer: A 

Question 87: Which of the following is not considered in determining whether an item of property is a fixture? 

• A. Method of attachment 
• B. Relationship of parties 
• C. Cost of item 
• D. The adaptability of item attached 
• Answer: C 

Question 88: The commission to be paid to a broker in a probate sale is set by the: 

• A. Executor 
• B. Administrator 
• C. Court 
• D. Estate manager 
• Answer: C 

Question 89: A formal declaration before a notary public or other qualified official by a person who has executed an instrument, that such execution is his or her act and deed is called: 

• A. An endorsement 
• B. An acknowledgment 
• C. A warranty 
• D. A guaranty of performance 
• Answer: B 

Question 90: If a loan ad is about negative amortizing, which of the folloiwng can be put on the advertisement? 

• A. pay zero now! 
• B. very low rate! 
• C. Get approved over the phone 
• D. I can help you finance your home 
• Answer: D 

Question 91: One of the chief advantages of the market data approach in the appraisal of real property is that: 

• A. It is the easiest method for a salesperson to learn and use 
• B. It is less time consuming 
• C. A great number of comparable properties are always available 
• D. Selling prices are always available at the county recorder’s office 
• Answer: A 

Question 92: In comparing the cost of reproduction of two buildings of the same square footage, a two-story house usually: 

• A. Costs more than a one-story house 
• B. Costs less than a one-story house 
• C. Costs the same as a one-story house 
• D. Can’t be compared with a one-story house 
• Answer: B 

Question 93: When appraising a single-family residence, which factor is least important to the value? 

• A. Location 
• B. Comparable price in the same neighborhood 
• C. Comparable rent 
• D. Living square footage of the property 
• Answer: C 

Question 94: Land which is subject to an easement is said to be: 

• A. Appurtenant thereto 
• B. Encroached upon 
• C. Encumbered 
• D. Restricted 
• Answer: C 

Question 95: Private restrictions on use can include: 

• A. Deed restrictions 
• B. Easements and rights of way 
• C. Leases and mortgage notes 
• D. All of the above 
• Answer: A 

Question 96: Under the law of Agency, a fiduciary relationship is created between the broker and the seller upon execution of the listing agreement. As far as the broker’s responsibility to third parties, the broker: 

• A. Must be fair and honest 
• B. Has no obligation 
• C. Need only disclose material facts when asked about them 
• D. Should disclose the lowest price the seller is willing to accept 
• Answer: A 

Question 97: A lease of real property for a fixed period of time at a set rate of rent creates: 

• A. A lien on the property 
• B. An estate for years 
• C. A freehold estate 
• D. An estate in co-tenancy 
• Answer: B 

Question 98: All of the following are personal property except: 

• A. Trade fixtures 
• B. Easements 
• C. Mortgages 
• D. Trust deeds 
• Answer: B 

Question 99: A valid deed vests title in the grantee when the deed is: 

• A. Signed 
• B. Acknowledged 
• C. Notarized 
• D. Delivered 
• Answer: D 

Question 100: A valid recorded homestead will not protect the homeowner against a foreclosure of: 

• A. A mortgage 
• B. A trust deed 
• C. A mechanic’s lien 
• D. Any of the above 
• Answer: D