What is the significance of the Code of Hammurabi?

It was an early example of codifying laws.

Which laws are written rules and regulations adopted by governmental agencies to enable the agencies to carry out regulatory duties?

Administrative laws b. Common laws

Which of the following statements is true regarding Alternative Dispute Resolution (ADR)?

ADR includes arbitration or mediation.

A real estate salesperson receives a complaint by a former client who is accusing her of misrepresentation of facts when purchasing a home. What could happen?

The real estate salesperson ignores the complaint, resulting in a default judgment.

Of the following, which would not be considered permanently attached and therefore is not real property?

A crop of wheat ready to be harvested

Which of the following statements is correct when determining whether property is personal or real?

If no agreement exists between the parties, the next step is to look at the method of attachment.

Mike leased commercial space from Jim, for his pizza business. Mike bought and attached a restaurant-sized pizza oven. He plans to take it to a new location upon expiration of the lease. What is the status of the oven at the end of the lease?

Since the oven is a trade fixture, Mike may remove it as long as he does not damage the space.

Which of the following is true of a legal description?

All of the above are true about legal descriptions

Which of the following would not be a type of legal description?

1375 Rose Road, Any City, County of Sutton, State of California

Personal property of a tenant farmer, even prior to harvest

Trade fixtures used in a trade or business are:

personal property of the tenant.

Landmarks and monuments are used to indicate a boundary of a parcel of land. Which of the following is a landmark?

Large oak tree growing out of an outcrop of rock

Real property interests can be categorized in a number of different ways. An estate with indefinite duration is classified as a freehold estate and one with a fixed or determinable duration is classified as a non-freehold estate. Which pair is correct?

Freehold estate – Perpetual estate

Which of the following is correct about the real property concept of a leasehold?

A leasehold is not an ownership interest, but it is an estate in land.

As defined most broadly, a lien is:

a financial interest in the real property of another.

In California, ad valorem taxes differ from special assessments in which of the following ways?

Ad valorem taxes are a percentage of the fair market value of real property based on its most recent sale or improvement and are collected annually.

An easement appurtenant differs from an easement in gross in that:

with an easement in gross, there is a servient tenement, but no dominant tenement.

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RE LEGAL MC

RE Legal Unit MC

Question	Answer
What is the significance of the Code of Hammurabi?	It was an early example of codifying laws.
Our laws are derived from four main sources: (1) constitutional law, (2) statutory law, (3) administrative law, and (4) common law. Of the twenty-seven amendments to the United States Constitution, how many pertain to real estate?	6
Which of the following is a federal law affecting the real estate industry?	All of the above
Which laws are written rules and regulations adopted by governmental agencies to enable the agencies to carry out regulatory duties?	Administrative laws b. Common laws
The two broad categories of law are ________ law and ___________ law. a. administrative / civil	civil / criminal
A crime is a violation of the federal or state criminal laws. What is the typical punishment for a crime?	All of the above
In the court structure of California, which court is ranked as the highest?	California Supreme Court
Of the following, which is a way to settle a dispute?	All of the above
Which of the following statements is true regarding Alternative Dispute Resolution (ADR)?	ADR includes arbitration or mediation.
Compensating the plaintiff through legal and/or equitable means is called a(n):	remedy.
Proposed legislation that undergoes debate and is voted on by the House of Representatives and the Senate is called a:	bill.
The __________ administers the Real Estate Law in California.	Bureau of Real Estate
Many areas of the law, such as agency law, property law, and tort law, are governed extensively by _________ law.	common
Discrimination in the purchasing or renting of real estate is regulated by __________ law.	fair housing
What is the intentional misrepresentation or concealment of a material fact to persuade someone to take action?	Fraud
If a licensee causes damage due to negligence, it is considered a(n):	unintentional tort.
What is one of the best defenses in a lawsuit?	Documentation
What is the process of bringing a lawsuit against someone?	Litigation
A real estate salesperson receives a complaint by a former client who is accusing her of misrepresentation of facts when purchasing a home. What could happen?	The real estate salesperson ignores the complaint, resulting in a default judgment.
Which of the following is a type of legal remedy?	All of the choices apply
Tom and Sarah have decided to sell their home. Which of the bundle of rights gives them the right to sell their property?	Right to transfer
What is the commonality of air rights, surface rights, and subsurface rights?	Land
Of the following, which would not be considered permanently attached and therefore is not real property?	A crop of wheat ready to be harvested
Which of the following statements is correct when determining whether property is personal or real?	If no agreement exists between the parties, the next step is to look at the method of attachment.
Mike leased commercial space from Jim, for his pizza business. Mike bought and attached a restaurant-sized pizza oven. He plans to take it to a new location upon expiration of the lease. What is the status of the oven at the end of the lease?	Since the oven is a trade fixture, Mike may remove it as long as he does not damage the space.
What is the commonality of “subterranean”, “percolating”, and “overlying land use”	Groundwater
Which doctrine allows landowners overlying percolating groundwater, such as an aquifer, to use the water on an equal basis?	Correlative rights
Which of the following is true of a legal description?	All of the above are true about legal descriptions
Which of the following would not be a type of legal description?	1375 Rose Road, Any City, County of Sutton, State of California
What type of legal description uses grids to determine the location of a specific tract of land?	Public Land Survey System
Martin purchased a parcel of land on which he intends to build a house. Which of the bundle of rights pertains to this activity?	Right of use
Which of the following is not included in the definition of real property?	Anything movable by law
What are emblements?	Personal property of a tenant farmer, even prior to harvest
Which is not one of the tests used to determine whether property is a fixture or personal property?	Time of the attachment
Trade fixtures used in a trade or business are:	personal property of the tenant.
According to California policy, what is the highest use of water?	Domestic purposes
The rights to natural resources, such as minerals, oil, and gas, are part of the:	subsurface rights.
What is the measurement of a tract of land with its boundaries, contents, and location relative to other property?	Survey
Landmarks and monuments are used to indicate a boundary of a parcel of land. Which of the following is a landmark?	Large oak tree growing out of an outcrop of rock
The following legal description was found in a deed: “Lot 17, Block 5, Citrus Acres, County ofOrange, State of California.” This is an example of a(n) __________ description.	recorded plat
Real property interests can be categorized in a number of different ways. An estate with indefinite duration is classified as a freehold estate and one with a fixed or determinable duration is classified as a non-freehold estate. Which pair is correct?	Freehold estate – Perpetual estate
Which of the following is correct about the real property concept of a leasehold?	A leasehold is not an ownership interest, but it is an estate in land.
Of the four types of leasehold estates, which one indicates that the tenant is considered a holdover tenant?	Tenancy at sufferance
As defined most broadly, a lien is:	a financial interest in the real property of another.
What is the commonality of trustor, trustee, and beneficiary?	Voluntary lien
In California, ad valorem taxes differ from special assessments in which of the following ways?	Ad valorem taxes are a percentage of the fair market value of real property based on its most recent sale or improvement and are collected annually.
An easement appurtenant differs from an easement in gross in that:	with an easement in gross, there is a servient tenement, but no dominant tenement.
The right to enter another’s land to harvest timber is known as:	profit-à-prendre
Which of the following could lead to loss of title, if not satisfied?	Condition
Which of the following is protected by an automatic homestead exemption, but not by a declared homestead?	Mobile home on leased land
George conveys land “to Alan for the life of Catherine, and then to Bill for life, and then to David.” What is Catherine’s interest after George makes this conveyance	Catherine has no interest.
What type of leasehold estate may be ended by the unilateral decision of either party and has no written agreement between the landlord and the tenant?	Tenancy at will
A security instrument is best defined as:	a document that is given by the borrower to hypothecate (pledge) the property to the lender as collateral for the loan.
Jack has sued Jill and obtained a money judgment against her. In order to obtain a lien on Jill’s property, what should Jack do?	Record an abstract of judgment in each county where Jill owns real property.
Which of the following is the best way to describe a property tax lien?	Specific, involuntary lien
Which transfer of ownership would not be excluded from property tax reappraisal?	Transfers between unrelated buyers and sellers
Of the following voluntary and involuntary liens, which would have priority? Work started on a project on June 15, a deed of trust to 1st Bank was recorded on June 18, and another deed of trust was recorded to 2nd Bank later in the day on June 18. A mecha	Mechanic’s lien recorded September 28
Bill wants to allow his friend Robert to use his land occasionally to do such things as hunt or fish. Nevertheless, Bill also wants to be able to revoke Robert’s use of the land at any time. What is the best way for him to accomplish this?	Bill should give Robert a license.
What is the name for the limitations usually imposed on property in newer subdivisions?	CC&Rs
A creditor with a recorded abstract of judgment can force the sale of a homestead property to satisfy a money judgment:	only if the equity exceeds the homestead exemption.
Which power of government is the basis for county and city zoning regulations and building codes?	Police power
In the Euclid v. Ambler Realty Co. decision, the U.S. Supreme Court:	found that zoning was a valid exercise of the police power.
Which of the following is true regarding zoning?	A zoning ordinance divides a city or county into different geographic zones.
Jeff wants to open a restaurant on a parcel he owns in the city where he lives. The zoning for his parcel states that the allowed uses are single-family residences, cemeteries, police and fire stations, religious assemblies, and duplexes. The conditional	cannot open a restaurant on this parcel unless he gets it re-zoned.
Kate has conducted farming on her property for more than 20 years. Because of the encroachment of new, smaller lots, the County changes the zoning on her parcel. The new zoning will not allow farming operations, but has a clause that existing farming oper	lawful without the payment of any monetary compensation.
The commonality of tentative, final, and parcel is that they are types of:	maps in the Subdivision Map Act.
Which of the following subdivisions would be regulated by the Subdivided Lands Law?	Subdivision with 5 or more new parcels
Which type of “taking” is referred to as a Lucas Wipeout?	Regulatory taking
A categorical exemption under CEQA:	is a provision entitling a project to an exemption by law at an early stage in the environmental review process.
A real estate developer is planning to build luxury condominiums next to a natural lake. Which law requires the developer to prepare an environmental impact report?	California Environmental Quality Act
Which is not one of the four powers of government that affects private ownership of real estate?	Replevin
Which of the following are among the mandatory elements of a general plan?	Land use, housing, and public safety
Bill has an auto parts business on property zoned commercial. The city’s zoning for commercial properties allows the sale of auto parts as a matter of right, but states that the city has authority to approve or deny the repair of automobiles on the same p	seek a conditional use permit.
Which of the following is true about a change in zoning that makes a use nonconforming?	The owner will be allowed to continue the use if it is not a nuisance.
Andy has a parcel with an elevation that is substantially lower than most of the neighboring properties. In order to have the same view as neighboring parcels, a house built on his parcel will have to be 18 feet higher than the height limit for the zoning	to obtain a variance
Which state law requires the preparation of a public report for all major subdivisions?	Subdivided Lands Law
In which court case did the property owner successfully challenge the restrictive conditions on development imposed by the public agency?	Nollan v. California Coastal Commission
A federal agency that wants to undertake an activity on federally-owned property in California:	must comply with the procedures under the National Environmental Policy Act.
The Comprehensive Environmental Response, Compensation, and Liability Act is also known as the Superfund because it:	consists of two trust funds used for cleaning up properties.
Patrick wants to operate a new use on a parcel in the California city where he owns property. The city planning department’s staff report for his project concludes that there will be no environmental impacts and no one appears at the city hearing to oppos	negative declaration.
What is the commonality of stakes, iron posts, and landmarks?	Boundary lines
If the boundary is a non-navigable waterway, where is the boundary line situated?	Thread of the waterway
Since party walls are support walls for units in common interest developments, an adjoining owner:	cannot remove a party wall without the consent of the other owner.
What is the name for trees whose trunks grow on a boundary line and are owned by the adjoining landowners?	Line trees
A house is situated on a corner lot in a very well-kept tract of homes. The owner never maintains the landscaping and throws refuse in the backyard that attracts flies. Legally, this home would be considered a(n):	nuisance.
Bob frequently crosses Pat’s property unlawfully when going to the Town Center. Based on this information, Bob:	is trespassing.
Who may stop a public nuisance?	Local government officials
Does an adjoining owner have the absolute right to cut encroaching roots and branches so that they end at his or her property line?	No, the encroaching roots and branches may be removed only if it will not damage the continued viability of the tree.
David has a large avocado tree planted in the corner of his backyard. It is planted five feet from the lot line and several branches extend into Donna’s backyard. In addition, one branch extends only 18 inches into Ted’s side yard. Who is legally entitled	David only
Sarah wants to install solar panels on her roof. There are several small redwoods planted in her neighbor’s yard, which may block sunlight from the solar panels when they grow. Which statement is correct?	Sarah should design the solar system with the neighbor’s trees in mind because they were planted first.
If the boundary is a road, where is the boundary line situated?	Center of the road
Who owns navigable non-tidal waters in California?	State of California
The commonality of party walls, division fences, and line trees is that they are considered:	common boundary improvements.
What is another term for a coterminous owner?	Adjoining landowner
What element does the agreed-boundary doctrine require?	All of the choices apply
Which of the following is not an uninvited interference with a person’s rights in real property?	License
What are the legal remedies to obtain relief from a private or public nuisance?	All of the choices apply
Intentionally dumping refuse on another person’s property is known as an:	indirect trespass.
Which of the following would be considered a tree encroachment?	Intrusive roots
Which statement is correct regarding a California landowner’s right to sunlight and air circulation or to a view over adjoining lands?	No landowner has an absolute right to sunlight and air circulation or to a view over adjoining lands.
Which of the following describes a person’s status on the deed, if the person obtains title to property in severalty?	An unmarried man
Which one of the following statements is true?	Tenancy in common is the default method of co-ownership in California.
Bob, Fred, and Jack own equal interests in a parcel of land as tenants in common. Without the consent of the others, Jack leased his 1/3 share to Tom. Which statement is correct?	Jack is entitled to all of the rent collected from Tom.
Henry and Wanda own property in joint tenancy. Unbeknownst to Wanda, Henry leaves “all my property” to Sheryl in his will. Once Henry dies, what happens to the property?	Wanda will own all of the property.
Kris, Pat, and Donna took title to a property as joint tenants. Kris sold her share to Sally, and then Pat died. Who owns the property now?	Donna owns 2/3 and Sally owns 1/3 as tenants in common.
How are a joint tenancy interest and a community property interest alike?	Ownership interests are equal
What is required for a couple to have community property rights?	Valid marriage
Which of the following business entities avoids double taxation and is operated by a single owner?	Sole Proprietorship
Which type of CID is characterized by fee ownership of the dwelling along with the lot underneath it?	Planned development
Which type of undivided interest ownership is usually for a set portion of time each year?	Timeshare ownership
Ownership in severalty would most likely involve:	sole ownership
Paul, Ted, and Donna purchase a parcel of real property. Because Paul contributed $10,000 to the purchase price while Ted and Donna each contributed $5,000 apiece, Paul holds a 50% share while Ted and Donna hold a 25% share apiece. Without knowing anythin	tenants in common
Which of the “four unities” is the only one that a joint tenancy and a tenancy in common both share?	Unity of possession
Charlotte and Vanessa, both unmarried, enter into a purchase of real estate as joint tenants. Which of the following events would convert that into a tenancy in common?	If either one conveys to herself as a tenant in common.
Angela, Bruce, and Caroline buy some property and hold title in joint tenancy. Without Angela’s or Caroline’s permission, Bruce sells his share to David. What is the status of David’s share after the sale?	David is a tenant in common as to the joint tenancy between Angela and Caroline.
While the parties are domiciled in California, all property acquired by either spouse from earnings, profits, or other income is presumed to be __________ property	community
Henry and Wanda are married and hold the property as husband and wife. Unbeknownst to Wanda, Henry leaves “all my property” to Sheryl in his will. When Henry dies, what will happen to the property?	Wanda and Sheryl will each own a ½ interest as tenants in common.
The formation, operation, and dissolution of partnerships, corporations, limited liability companies, and limited partnerships in the State of California is governed by the California	Corporations Code
The characteristic of perpetual succession pertains to a:	corporation.
Which type of CID is characterized by fee ownership of the dwelling unit with a tenant in common interest in a portion of real property?	Condominium
When transferring real property by deed, the correct order of the steps to create a valid deed are:	execution, delivery, and acceptance.
Which of the following is not required to create a valid deed in California?	Legal description
Each of these instruments is used by a third party to convey an interest in someone else’s property, except a:	quitclaim deed.
Which court proceeding establishes an individual’s right to ownership of real property against one or more adverse claimants?	Quiet title action
Carl has a valid will. His financial situation has changed and he decides to have a new will drafted reflecting those changes. Carl is not aware that there are defects in his new will and he tears up the old will because of his mistaken belief that his ne	The court can revive Carl’s former will under the doctrine of dependent revocation because he destroyed his old will under the mistaken belief that his new will was valid.
One important way that a trust differs from a will is that a trust:	does not have to go through the probate process in court.
When no relatives can be found to whom a deceased person has left property in a will or when the person has died without a will, which term is used to describe the transfer of the property to the State of California?	Escheat
The notion that land is too valuable to allow one person to own land without putting it to productive use is the rationale behind the concept of:	adverse possession.
With accretion and reliction, the landowner:	acquires title to the newly formed or exposed land.
If a deed that is valid is nevertheless not recorded, what are the possible negative consequences for the grantee?	An unscrupulous grantor might convey the property to another party.
Art wants to transfer his interest in the real property that he owns to Betty. The transaction is handled through a real estate broker and an escrow officer working for the title insurance company prepares the majority of paperwork. The escrow officer dra	Yes, because recording the deed at the conclusion of the transaction created a presumption that the deed was both delivered and accepted
Which deed has only two implied warranties of title?	Grant deed
Most real estate transactions in California use a grant deed rather than a general warranty deed because:	title insurance is almost universally used for real estate transactions in California.
Which of the following is not a recognized method of involuntary alienation in California?	Grant deed
Which will does not require two witnesses?	Holographic Will
What is the legal process to determine creditors’ claims and beneficiaries’ interests in an estate upon the owner’s death?	Probate
Under the per stirpes distribution provided for under California law, the children:	of a deceased person have the right to receive a portion of an estate by right of representation.
Which of the following could defeat an adverse possessor?	All of the choices apply
What is the commonality of accretion, erosion, and reliction?	Gradual changes to lan
Recording protects __________ against prior unrecorded interests	subsequent bona fide purchasers
The main purpose of the Real Estate Law is to:	do both (a) and (c).
Which of the following acts requires a real estate license?	All of the above
Charles is a construction worker who owns a home that he wishes to sell. By law, he must hire ______ to help him	no one
Which is not a type of license issued by the California Bureau of Real Estate?	Property Management License
A licensee who violates the Real Estate Law can be subject to:	all of the above.
Complaints filed against a licensee with CalBRE are investigated by the:	Enforcement and Audit Section.
Rose is a real estate salesperson who did not disclose a dual agency relationship.	preside over the hearing.
If a party later complains, an Administrative Law Judge will:	done none of the above.
Robert is handling several different transactions at once. He has six different homes being sold by six different people, and six separate buyers buying them. During the course of these transactions, he receives money from all the buyers and puts all the	No, he engaged in secret profits.
Andy is a real estate broker. Charles listed a rundown apartment building through Andy, asking one million dollars. Andy knew that Donna, a real estate investor, would readily pay twice that amount for the land alone due to its choice location. Andy had h	Both Bob and Sally may be disciplined.
Bob is a broker who employs Sally, a salesperson. Sally has made several careless and significant errors on the last four transactions she has handled. The various clients in all four transactions separately filed complaints against Sally with CalBRE. Wha	do both (a) and (c).
The Real Estate Commissioner appoints a __________ for consultative purposes on issues involving the Bureau of Real Estate.	Real Estate Advisory Commission
The payment of non-collectable court judgments against licensees who committed fraud, misrepresentation, deceit, or conversion of trust funds in a transaction, is assured by the:	Consumer Recovery Account.
Pat is an intern at a real estate brokerage while he studies for his license exam. Pat may perform all of the following tasks, except:	negotiate a month-to-month lease for a single-family home.
A(n) __________ cannot receive compensation for acts that require a real estate license.	unlicensed person
A real estate broker license allows the broker to:	all of the choices apply.
When a salesperson is discharged for a violation of any of the provisions of the Real Estate Law, the employing broker must immediately file a __________ with the Commissioner.	certified written statement of the facts
A person with a salesperson license who wishes to perform the acts requiring a real estate license must	be employed by an active broker.
An applicant for a real estate license who lives outside the state of California:	must meet the state’s licensing requirements.
A person with a real estate salesperson license has delinquent child support payments and is an obligor on the California Department of Child Support Services list. If the child support remains unpaid when the salesperson renews his or her license, what t	150-day Temporary License
A real estate licensee is accused of violating the law. After the hearing, an administrative law judge gave recommendations to the Commissioner for discipline. The Commissioner may:	all of the choices apply.
Statutory law agency is governed by:	statutes and rules created by legislative organizations.
Which of the following is one of the parties involved in an agency relationship?	All of the above
An agency relationship created by actual authority requires:	a written agreement
Which of the following is a type of agency relationship in real estate?	Broker/associate
In a broker/associate relationship, a licensed____________is employed by a licensed broker	both (a) and (b
How is an agency relationship created?	All of the above
Which of the following written agreements can create an agency relationship?	All of the above
Which of the following is not one of the fiduciary duties that an agent owes to his or her principal?	Misrepresentation
An agent who is unaware that he or she is presenting false statements is guilty of:	innocent misrepresentation.
Which of the following would terminate an agency relationship?	All of the above
Which of the following is a type of agency law?	Both common law agency and statutory law agency
A broker who represents only the buyer or seller in a real estate transaction is known as a __________ agent.	single
A statutory nonemployee is considered self-employed and receives compensation for the	number of sales closed and commissions earned.
In a broker/associate agency relationship, the agreement that specifies the supervision of licensees, duties, and compensation is the __________ agreement	employment
Under a __________ power of attorney, the agent has authorization to perform specific tasks.	special
When a person gains a benefit from a previously unauthorized act of an agent and does not deny the authority to act after learning about it, this constitutes an agency created by:	ratification
A statement of fact that is required by law is known as:	disclosure
When analyzing whether an agent relied on reasonable skill and competence in a real estate transaction, the courts use __________ to make this determination.	a standard of care
An agent that makes an exaggerated statement of opinion regarding a property that he or she is listing for sale is an example of	puffing.
In which way is an agency not terminated?	Incapacity of the listing salesperson
Arthur, who is African-American, wants to buy a house in a particular neighborhood in a California city. During the title search, a restrictive covenant in a deed recorded in the 1920s states that no person other than a member of the Caucasian race can bu	Arthur can safely ignore it and proceed with the purchase because under both federal and state law, the clause would be unenforceable.
Which court case upheld the 1866 Civil Rights Act and the 13th Amendment to the U.S. Constitution?	Jones v. Mayer
As a federal law, the 1866 Civil Rights Act was largely ignored until another law provided anti-discriminatory protection in education, housing, and employment. This law covers the financing, leasing, or selling of residential property. What is this feder	Title VIII of the Civil Rights Act of 1968
Bill, who is Hispanic, wants to buy a parcel of commercial land to open a restaurant in the city where he lives. He speaks to the seller on the telephone and the seller seems interested. When he and the seller meet on the premises, though, the seller reac	No, because the Fair Housing Act does not apply to sales of commercial property.
Assume that in the previous question, Bill were African-American and the seller refused to sell to him because of his race. Is there any federal law under which Bill would be able to bring a lawsuit alleging that he was the victim of unlawful discriminati	Yes, under the Civil Rights Act of 1866.
The First Avenue Church owns a small apartment building a few blocks from its church building. It has a policy that limits the lease of apartments in the building to members of the same First Avenue Church and affiliated churches. Assuming that someone is	The Church’s policy does not violate the Fair Housing Act because the Church does not discriminate on any other basis.
Paul listed a property located in an area where the ethnic makeup is changing from one racial group to another. Paul wants to emphasize this change by adding the word, “integrated”, into the property listing for an advertisement. Is this a violation of th	Yes, because the term can imply potential discrimination.
The Fair Employment and Housing Act would prohibit a property owner from refusing to rent to an otherwise eligible tenant based on:	that the person’s income comes from public assistance.
A property owner has sincerely held religious beliefs. She does not want to rent to an unmarried couple who want to live together in her apartment building. What must she do in order to avoid violating California’s fair housing laws?	Allow unmarried couples to cohabit in her building or sell the property and invest her money elsewhere
Which rule would not violate the Fair Employment and Housing Act, the Unruh Act, or the Fair Housing Act? A rule prohibiting occupancy in a particular housing development by persons under the age of:	62
Which federal law prohibits race discrimination in the sale of commercial real estate?	Civil Rights Act of 1866
Why did Congress rely on the Commerce Clause instead of the Fourteenth Amendment as the basis for the Fair Housing Act?	The Fourteenth Amendment has a state action requirement, which means it generally cannot be the basis for legislation against private acts of discrimination
The court case ______________ prohibits discrimination based on race by upholding the 1866 Civil Rights Act and the 13th Amendment to the U.S. Constitution, which prohibits slavery.	Jones v. Mayer
The Civil Rights Act of 1968 expanded protected classes to include not only race, but also:	color, national origin, religion, and sex
Which of the following, taken together, constitute the Fair Housing Act?	Civil Rights Act of 1968 and the Fair Housing Amendments Act
Which of the following is not a federal fair housing law?	Jones v. Mayer
Under the Fair Housing Act, lenders are prohibited from:	all of the choices apply.
Paula tells her rental agent, Tom, not to violate the fair housing laws. Tom nevertheless wrongfully discriminates against a prospective tenant because he is Hispanic. A court would likely determine that:	both Paula and Tom are liable for Tom’s act of discrimination.
A private entity that owns property that is specifically designed to provide products or services to the public, is a	public accommodation.
Discrimination on the basis of which of the following characteristics is prohibited by California’s Fair Employment and Housing Act, but not by the federal Fair Housing Act?	Sexual orientation
Four brokers decided to collaborate and refuse to show any of the properties listed by a new broker in the area in an effort to force the new broker out of business. This is an example of:	group boycotting.
Eric believes that an advertisement for the sale of a house in his neighborhood is deceptive. He is not interested in buying the property himself, but is concerned that a prospective buyer will be misled by the seller’s advertisement. Can he bring a lawsu	No, because Eric is not trying to buy the house in question, he cannot show that he has been harmed or lost money because of the advertisement.
In general, the Do Not Call rules do not apply to calls made:	if an established business relationship already exists
What type of email is excluded from the CAN-SPAM Act of 2003?	Transactional email message
Which act has the primary purpose of preventing banks and other creditors from discriminating when granting credit by requiring them to make extensions of credit equally available to all creditworthy applicants with fairness, impartiality, and without dis	ECOA
A few years ago, Bill became a victim of identity theft. Recently, Bill received a corrected credit clearance from Indent Credit Reporting Services. Indent accurately cleared Bill’s credit records of the harmful credit originating from the identity theft.	Fair Credit Reporting Act
Consumers can request and obtain a free credit report once every 12 months from each of the three nationwide consumer-credit reporting companies. This was made possible by the:	Fair and Accurate Credit Transactions Act
What is the commonality of finance charge, APR, payment schedule, and amount financed?	Truth in Lending Act
You are a business that provides loans to consumers seeking to finance the purchase of residential property. Which state statute most directly regulates your business?	The Housing Financial Discrimination Act
Broker Tom offers extensive sales training classes in his office. During a recent office session, he discussed a Federal act, which protects consumers from unfair closing practices. Tom, placed emphasis on kickback fees, fee splitting, referral fees and n	Real Estate Settlement Procedures Act
A broker can violate the antitrust laws relating to real estate, by participating in any of the following, except	tithing.
Which is not one of the three tests used by the Federal Trade Commission to determine if something constitutes an unfair business practice?	The practice causes an insignificant consumer injury
Which of the following is one of the Do Not Call Rules?	Licensees must identify themselves before making the solicitation.
The __________ establishes procedures for correcting mistakes on a person’s credit record and requires that a consumer’s record only be provided for legitimate business needs.	Fair Credit Reporting Act
The Fair and Accurate Credit Transactions Act of 2003 allows consumers to request and obtain a free credit report once every __________ from each of the three nationwide consumer credit reporting companies—Equifax®, Experian®, and TransUnion®.	12 months
The Truth in Lending Act is Title 1 of the:	Consumer Credit Protection Act of 1968.
Which of the following must be disclosed under TILA and is the relative cost of credit expressed as a yearly rate?	Annual percentage rate
A lender refuses to make loans to real property in a certain part of a city. Which of the following statutes has the lender likely violated?	The Holden Act
RESPA requires that borrowers receive disclosures at various times. Which of the following disclosures usually is not made at the time of the loan application?	Annual Escrow Loan Statement
Which of the following statements about RESPA is not true?	It only applies to FHA-insured loans.
Ted, Pat, and Molly are selling a property they own as tenants in common. They received a full price offer. Both Ted and Pat have signed the purchase offer, but Molly has not yet signed. How would this contract be classified?	Executory
Of the following, who legally would be considered competent to contract?	Divorced person who is under 18 years of age.
Once an offer has been communicated to the offeree, it does not stay open forever. Which is not a way to terminate an offer?	Capacity of either party
On April 20, Fred submits a written offer to buy Andrew’s house. The offer states that it will remain open until May 1. On April 28, the house is destroyed by fire. On April 29, Andrew, unaware of the fire, mailed a letter accepting the offer. Which of th	No contract was formed, because the offer was terminated by the fire.
On October 1, Kelly sends Bill a letter stating, “I offer to sell you my property for On April 20, Fred submits a written offer to buy Andrew’s house. The offer states that it will remain open until May 1. On April 28, the house is destroyed by fire. On A	Bill will not be able to compel Kelly to sell the house, nor can he receive damages, because there was no consideration for the statement that her offer was “irrevocable” for 14 days.
Fred induced his aunt, Nancy, who was completely dependent upon Fred for her daily needs, to enter into a contract to sell her house to Fred on highly favorable terms. Which of the following is a court likely to conclude about this transaction?	The contract is voidable by Nancy, because Fred used undue influence to make Nancy sign.
Tom and Pam have been negotiating a real property deal for some time. Each has rejected offers that the other has made through their respective brokers. Tom runs into Pam at a restaurant one day and says, “I think we can work out the terms of this deal ou	Tom and Pam have a binding contract assuming that all terms are set forth
Ron, a broker, has an exclusive agency listing with Sam, the owner of a parcel of real estate. Their listing agreement provides that Ron must find a ready, willing, and able buyer who will pay a minimum of $390,000 for Sam’s house. If he does so, Ron will	Ron could sue Sam for his 6%commission.
Broker Donna released Bob from a listing agreement with no further obligations to broker Donna. What type of release is this?	Unconditional.
Shortly after purchasing a home, Sam realized he paid more for the property than for what other comparable homes in the neighborhood were selling. He discovered later that the broker-owner of the property and the appraiser were related. He decided to sue	statute oflimitations.
Which is not an example of an express agreement?	Sally orders a pizza to be delivered.
Which of the following is not an element of a valid contract?	Unilateral agreement
Paul sends Gary a letter that states, “I offer to purchase your house for $290,000, closing to take place by December 31.” Gary writes back, “I accept your offer, but escrow must close before November 30.” Which of the following is true?	Gary’s letter is a counteroffer that Paul can accept or reject
Jim is in the market for a new house and visits a listed property owned by Alice. After his tour of the property, he sends her a written offer to buy for a few thousand dollars less than her listing price. Alice looks it over and decides that it is a reas	Alice’s mailed acceptance created a binding contract even though Jim never received it, according to the “mailbox rule.”
Voidable means:	valid unless set aside by one of the parties.
The parol-evidence rule refers to which of the following?	It is a rule that bars the introduction of most evidence regarding the oral negotiations of the parties that occurred prior to the execution of a written contract.
Jeff and Marian sign a real estate purchase agreement by which Jeff agrees to buy Marian’s house. The contract states that Jeff will deposit $1,000 into escrow upon execution of the agreement and that if the parties are unable to conclude the sale for any	A court would likely find that the $1,000 payment to Marian is a valid liquidated damages provision.
What document should an assignor use to be released entirely from any obligations or secondary liability?	Novation
What is the commonality of unilateral rescission, specific performance, and reformation?	Equitable remedies for breach of contract
The statute of limitations places a limit on the length of time a plaintiff has to file a lawsuit. What is the time limit to file an action on any written contract?	4 years
If an agent failed to give a property owner a copy of an exclusive listing at the time it was signed, this would:	subject the agent to disciplinary action.
Broker Mary enters into a listing to handle a sale for Sally for property that Sally has just inherited. One week after entering the listing, Sally contacts Mary and tells her, with some embarrassment, that she has changed her mind and is not ready to par	Yes, because it was a listing, even though it was so short
Seller Sam signed a 90-day exclusive authorization and right to sell listing agreement with broker, Pam. Thirty days later, Pam presented an offer from a buyer, which Sam accepted. Escrow was opened, but the buyer and seller could not agree on some termit	No deal, no commission clause
A safety clause is a:	provision allowing a real estate broker to receive a fee under certain conditions even if the listing has expired.
Which statement is incorrect regarding listing agreements?	The rate of real estate commissions is set by law.
Jack, a real estate broker, enters into an exclusive agency listing with Mike, who is selling his house. A few weeks later, Mike is at a party and mentions to another partygoer that he is selling his property, and suggests that they go by the property aft	No, because Mike found the eventual buyer of the property.
If a seller accepts the deposit receipt unconditionally, the deposit receipt:	does all of the above.
Buyer Pat presented an offer to Seller Sam for the purchase of Sam’s 10-year-old home in a quiet neighborhood. Pat gave Sam three days from the date of the offer to respond. Sam had another offer to consider, but finally accepted Pat’s offer four days lat	Pat has no obligation under his original offer.
A prospective buyer made an offer and gave the seller’s broker a $1,000 check as a deposit for the sale of a residence. Before the seller accepted the offer, the buyer contacted the broker and withdrew the offer. What should the broker do with the $1,000	Return it immediately
On October 1, Donna sends Bill a letter stating, “I offer to sell my property to you for $250,000. This offer shall remain irrevocable for 14 days.” On October 6, she receives a written offer from Sarah for this same property for $300,000. Donna immediate	Bill did not have an enforceable option because there was no consideration for the statement in Donna’s original letter that her offer was “irrevocable.”
The statute of frauds requires that contracts for the sale of real estate must:	be in writing.
A person holding only a salesperson’s license who inserts complicated clauses that require legal expertise to form contracts might well be committing:	the unauthorized practice of law.
The __________ declares that real estate contracts can be electronically written and signed.	Uniform Electronic Transactions Act
If a seller refused to accept a full-price offer that met all terms of an exclusive authorization and right to sell listing, which of the following legal actions would most likely result from this?	The broker could sue for his or her commission.
Steve, a broker, finds a buyer for a property and convinces the person to buy the property. The listing agreement expires before the sale is completed. However, the buyer whom Steve located eventually does complete the transaction and Steve was entitled t	Safety clause
What is one of the risks of a broker using a net listing?	It creates the potential for a conflict of interest if the offer for the property comes in at or just above the seller’s minimum sales price
What happens to an original offer if a counteroffer is made?	The person making the original offer is no longer bound by it.
Which function of the deposit receipt is described by a buyer and a seller agreeing to mediation by a neutral mediator?	Dispute resolution
Seller Fred listed a vacant lot with a broker at $115,400. Prospective buyer Dan submitted an offer of $115,000 that was to expire in three days. The next day, Fred made a counteroffer of $115,200. When Dan did not respond within the three-day period, Fre	no contract.
Oliver made Brad an attractive offer to sell property that Brad was interested in buying. Brad was uncertain whether to accept, so he paid Oliver $100 to keep his offer irrevocable for ten days. What is the arrangement between Brad and Oliver?	An option contract
A real estate agent’s failure to provide disclosure could lead to:	all of the above.
Larry is the licensee who took a listing for Sally’s home. He has Sally help him fill out the TDS. Sally fails to write down that the home suffered a crack in the wall during the last big earthquake, which Sally subsequently repaired. Larry brings the omi	Larry must convince Sally that she must make the disclosure or he will drop her as a client
Kate is showing a property in which a death occurred. What is her disclosure responsibility to the buyer?	It can be disclosed if the death occurred within 3 years prior to the buyer making an offer on the property.
The Real Estate Transfer Disclosure Statement (TDS) is a document that the seller must provide to any buyer of residential property (one-to-four units). Which transfer is not exempt from the disclosure requirement?	Transfers from co-owners to a third party buyer
Which of the following is NOT a required disclosure on the TDS?	A notice of abatement against the adjacent property
Three years ago, a tornado tore through the town where Pam’s home is. Luckily, Pam’s home was unscathed. Does Pam have to disclose the fact that there was a tornado within the past three years on the NHD?	Pam needs to disclose only certain natural hazards on the NHD, and a tornado is not one of them.
What is the requirement for disclosing mold?	Existence of mold must be disclosed on the TDS
Sandra wishes to sell her home, which is located four miles across town from a large, well-known military base. Is Sandra required to make a special disclosure?	No, because the base is four miles away.
Which document is not required by statute when transferring ownership in a CID?	A copy of the most recent pest control inspection and certification
Federal law requires that a new home seller (including a subdivider) disclose in every sales contract the type, thickness, and R-value of the insulation that has been or will be installed. What does R-value signify?	Resistance to heatloss
How should real estate licensees protect themselves when handling real estate transactions?	Document and disclose material facts
Don is a licensee who is helping Donna sell her home. He visually inspects her property and notices a musty odor (but no mold) in one bathroom. Donna cleans and uses an air freshener. Of the following statements, which is correct regarding Don’s responsib	Don is not required to do anything other than indicate on the TDS that there is a musty odor in one bathroom.
Who has the primary responsibility to notify the buyer and the seller, in writing, of the selling price of real property after completion of the sale?	Broker
Which of the following is/are NOT included on the TDS?	Megan’s Law
The following items are all included on the Natural Hazards Disclosure, except:	drought.
Flood hazard boundary maps identify the general flood hazards within a community. On the flood hazard boundary map, what is the name for the area that falls with a 100-year flood boundary?	Special flood zone area
Which of the six statutorily specified areas described in the Natural Hazard Disclosure Statement requires property owners to clear brush (30-foot clearance area) around dwellings?	Very high fire hazard severity zone
Gayle is a senior citizen who has lived in her neighborhood for over 40 years. Unfortunately, the neighborhood has deteriorated over the years. Gayle’s next-door neighbor uses his house to manufacture and sell methamphetamine drugs, which has resulted in	Yes, because the police activity and violence are facts that could reasonably be material to a potential buyer.
State law requires that all new and replacement __________ sold in California on or after July 1, 1991 must be braced, anchored, or strapped to resist falling or horizontal displacement due to earthquake motion.	water heaters
Alain is a French citizen who resides in California. He owns a home that he wishes to sell to his son, Francois, who was born here and is a U.S. citizen. He intends to sell the home to his son at fair market value, which is currently $785,000. Do Alain an	Yes, under FIRPTA, a portion of the sale will be diverted to the state and federal tax agencies.
Pam rents an apartment to Tom. The property is leased for the period from March1 through December 31. He has paid his rent on time and has not violated any provisions of the rental agreement. If she wishes to evict him at the beginning of August to get a	Pam cannot evict him as long as the rent is paid and he violates no terms of the lease.
Bob owns an apartment building in a city that has a rent control ordinance. The ordinance provides that when a unit becomes vacant, Bob must apply to the local Rent Control Board to increase the rent before re-renting the unit. The requirement that Bob ob	has been pre-empted since the adoption of the Costa-Hawkins Act.
A tenant notified the landlord with a phone call and a follow-up letter that the water heater was not working properly. After two weeks of silence from the landlord, the tenant sent an email restating the problem with the water heater. Before repairing th	an attorney
When does an owner have a right of entry onto the leased premises of a tenant?	If written notice is personally served on the tenant at least 24-hours prior to the entry.
Which of the following is correct as to assignments of leases?	Under an assignment, a lessee gives up all rights to use or possess the rented-property in the future.
Default pertains to the nonperformance of a duty or obligation in the contract without a legal excuse. A rental agreement describes what constitutes default on the part of the tenant and the landlord’s remedies for tenant’s default. Which is a type of eco	Non-payment of rent or assessments when due
John has been leasing Sally’s rental unit for a year. The term of the lease expires on March 31. Neither John nor Sally has given notice to extend the lease. If John is still living there on April 3 and refuses to leave, Sally:	can remove him by filing an unlawful detainer lawsuit
Pat has lived in a rental house with a month-to-month rental agreement for nearly two years. The landlord’s nephew is moving to town so the landlord is going to ask Pat to move and let the nephew live in the house. How much advance notice must the landlor	60 day
Sam is the owner of a rental unit. Rent is customarily due on the first of the month. On October 4, Amanda, one of his tenants, has still not paid October’s rent. What kind of notice should Sam give Amanda?	Three-day notice to pay rent or quit
According to the Mobile home Residency Law, which service cannot be charged to the residents by the mobile home park?	Incidentalcharges forwateringoflandscaping
A tenancy for one month that automatically renews unless notice is given, would NOT be a:	tenancy for years.
After giving proper notice, a tenant vacated the apartment. There was no unpaid rent or damage other than normal wear and tear. The security deposit:	must be returned within 21 days, with any deductions accounted for.
A property owner cannot refuse to rent to an otherwise eligible tenant due to:	ownership of water-filled furniture.
A property owner can evict a tenant if the tenant:	violates a specific provision of the rental agreement.
A(n) __________ lease involves the original lessor and a new tenant called a sublessee.	sandwich
If it appears that a tenant has deserted his or her leased property, the manager should follow state laws and issue a:	Notice of Belief of Abandonment.
James plans to move to Florida and is currently renting an apartment on a weekly basis. When James gives the landlord a notice of termination of tenancy, what is the minimum time for the advance notice?	Seven days
Of the following methods used to serve a notice of termination on a tenant, which is preferable?	Personally give the notice to the tenant.
A tenant defaulted on the rental agreement by not paying the rent when due and owner Pat must go through the eviction process to reclaim her property. What is the first thing Pat should do?	Serve the tenant with a Three-Day Notice to Pay Rent or Quit.
Linda is a resident of a mobilehome park. She is outspoken on various issues that have arisen with the park management over the years, such as how much landscaping should be done and noise from other units in the park. Linda is not behind in rent and she	unlawful because a lessor who manages a mobilehome park cannot give a tenant a notice of termination unless the tenant has violated a park rule, is behind on the rent, or has violated a term of the rental agreement.

Created by: julietmongia

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