Quiz Review 5; Business - Business Law

When you, as agent, are certain that the seller will not accept a specific offer from the buyer, you should never:

In order to be enforceable, a contract for the sale of real estate must:

Mr. Smith bought a property for $72,000 with a $20,000 cash down payment and a $52,000 loan. The loan did not require interest and did not require any payments for one year. One year later, he sold the property for double its purchase price. Each dollar of his original cash investment is now equal to:

4

A man bought the contents of a store for $9,300. He sold the goods for 1/3 more than they cost him. He lost 15% of the selling price in bad debts. His entire profit on this investment was:

5

All of the following are common ways of measuring land, except:

6

In reference to the listing agreement, the "hold harmless" clause protects the agent from liability for:

7

Jones bought a house for $125,000. He obtained a loan for 88% of the purchase price payable $1,549 per month at 12% interest. Before he made his first payment he sold the house for $139,750. His equity at the time of the sale was:

8

The general purpose of local building codes is to accomplish which of the following:

9

The instrument used to transfer title to personal property is the:

10

A person who owns an undivided interest, in common, in a parcel of real property, together with a separate interest, in space, in a residential, industrial, or commercial building on such real property, is said to have an interest in a:

11

What would be the value of a four-plex rental property if each unit rented for $206.25 per month; vacancies were 5% of gross rents; operating expenses were $4,140 per year, and the net earnings represented an 8% return on the investment:

12

The term that describes the action by which a local building authority permits an inconsistency to the construction, systems or standards within applicable building codes is best known as:

13

Who is usually responsible for assuring the availability of paved streets, utilities, curbs, and gutters in new subdivisions:

14

A seller under a real estate purchase agreement agrees to pay in full a street bond affecting the property. The original amount of the lien was $1,800 payable in 10 equal payments plus interest of 6% per annum. January 1 is the due date of each bond payment. Two payments have been made and payments are current. If the transaction closes on April 1, what will be the approximate amount charged to the seller's account to pay the bond balance in full:

15

Which of the following is not an example of police power:

16

A city's master plan would include:

17

A lessee renting a business office often attaches certain items to the real property. These items may, prior to the expiration of the lease, be removed provided no substantial damage to the property results. Of the following, which best exemplifies such items:

18

Daniel has purchased an 18-unit apartment building. If he reports his income on a cash basis, he can deduct all of the following on his next income tax return, except:

19

California's disclosure requirements for energy conservation include a provision that buyers of newly-built homes must receive a disclosure concerning:

20

Each of the following terms refers to types of soil conditions except:

21

A real estate broker sent all of his title business to Wonderful Title Co. In appreciation of the business, the title company paid the broker $10 for each transaction. According to the Real Estate Settlement Procedures Act, "RESPA," this practice is:

22

The purchaser of a sale-leaseback transaction would be least concerned with:

23

Morgan wanted to obtain a 60-day option so that he could purchase a parcel of real property for $18,000. However, he wanted to pay only $1 for it. If this option were drawn and duly signed by the parties, it would be:

24

When the circumstances are such that an award of money damages would not provide an adequate remedy for default in a contract, a suit for specific performance could be successfully brought by all of the following except:

25

Ms. Wilson made an offer to purchase real property. However, she died of a heart attack before the listing broker could notify her of an unqualified, signed acceptance by the seller. Based on these facts, which of the following is true:

26

Under current federal income tax laws, which of the following are tax-deductible items for an owner-occupied single-family dwelling:

27

All of the following statements regarding options are true, except:

28

Jones listed his home with ABC Realty for $30,000. He agreed to carry a note secured by a trust deed for $30,000 with 9% interest. The note was to be payable over a 20-year period. Alex, a salesman with ABC Realty, received an offer on these exact terms. However, before the offer was submitted to the seller, Clair, another salesperson in the office, brought in an offer for $28,000 cash. Which of the following is true:

29

Leland purchased and took title to a residential property on 10th Street in Modesto. One week later, he employed Broker Wilder to sell the property. The listing was completed and signed. Being uncertain as to the correct address of the property, it was described in the listing as "James R. Leland's residential property on 10th Street in Modesto, California." Regarding the effect of this description on the listing, which of the following is true:

30

The total positive balances due to all beneficiaries of a broker's trust fund account must at all times equal the account's:

31

Broker Stein entered into an oral listing agreement with the seller of real property, without a subsequent written verification. The payment of a commission to Broker Stein under these circumstances would be:

32

In the parts of California where wood-destroying pests are found, a structural pest control report is required:

33

In a condominium complex a sidewalk would be:

34

According to the Real Estate Settlement Procedures Act, there are certain services which may be charged for, since they are settlement connected costs. The buyer or seller can be charged for all of the following except:

35

When a lender makes a loan regulated by the Real Estate Settlement Procedures Act, the loan applicant must be provided with which of the following:

36

An appraiser would most likely use a "depth table" when confronted with a valuation problem involving:

37

In practice, the services of a broker on behalf of her principal are defined as all of the following, except:

38

The consideration that is required for a valid contract could be:

39

Which of the following would be least likely to appear as a debit on a buyer's closing statement:

40

A broker used the following clause in his exclusive listing contract, "In consideration of the execution of the foregoing, the undersigned broker agrees to use diligence in procuring a purchaser." This clause:

41

In appraising real property, a separate valuation for the site is considered least important:

42

A veteran purchased a home and financed it with the aid of a Cal-Vet loan. Twenty years later, he made the final payment on the loan. Which of the documents listed below was least likely used in such a transaction:

43

The Irwins made an offer to purchase the Greys' property. As part of the offer, the Irwins agreed to take title "subject to" an existing VA loan which the Greys obtained when they purchased the property in the approximate amount of $39,000. If the Greys sell to the Irwins under these conditions, which of the following is true concerning liability for a loss suffered by the government after a foreclosure on the VA loan:

44

When an escrow is closed on the purchase of a home, the closing statements usually reveal that the seller has paid certain items in arrears or in advance as they relate to ownership of that home. These items are usually prorated or adjusted. All of the following would be included in these prorated items except:

45

Is there anything wrong with using a street address (i.e., 123 Starling Way) in the legal documents pertaining to a real estate sale transaction:

46

The factor which usually has the greatest influence on mortgage interest rates is the:

47

On August 1, 1991, Wilson agreed to purchase Hansen's home. Both parties agreed that possession would be transferred on September 30, 1992, and that the property taxes on the property would be prorated as of the date of possession. On November 1, 1991, Hansen paid the property taxes for the tax year 1991-1992. According to the closing escrow statement, which of the following would be true:

48

In the closing statements prepared by the escrow agent, the total of the debit and credit columns on the seller's closing statement, in comparison to the balances on the buyer's closing statement:

49

If the owner of a property thinks that his property has been over-assessed by the county assessor, he would contact the:

50

The type of depreciation that would be the most difficult to cure would be:

51

When a lender "calls" a loan, he:

52

Which of the following must be given by the seller of a condominium to the buyer:

53

Should a tight money policy be implemented by the Federal Reserve System (the Fed), the net effect would be the increasing of:

54

The decline of mortgage interest rates would occur when:

55

Of the following costs and fees involved in purchasing real property, which is considered a finance charge under the Federal Truth-in-Lending Law and must be included on the disclosure statement:

56

Which of the following would most likely provide an investor with the best hedge against inflation:

57

When title to real property is voluntarily transferred without receipt of monetary consideration, this is generally considered to be a(n):

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Quiz Review 5; Business - Business Law

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