State: California | Category: Real Estate | All tests in this Category:
Practice Test 1 Practice Test 21. Which of the following contracts must be in writing under the Statute of Frauds?
The Statute of Frauds requires real estate sales contracts to be in writing to be enforceable.
2. In California, earnings from a spouse’s separate property during marriage are considered:
Income from a spouse’s separate property generally remains separate property.
3. Which of the following is primarily a residential mortgage lender in the U.S.?
Savings and loan associations (S&Ls) historically focus on residential mortgages, whereas commercial banks have broader lending portfolios.
4. Private mortgage insurance (PMI) protects the lender against:
PMI provides financial protection to lenders if a borrower defaults on a mortgage with a low down payment.
5. Which adjustment is made when a comparable property is smaller than the subject?
If a comparable is smaller than the subject, its price is increased to make it comparable to the subject property.
6. In California, the maximum ad valorem property tax rate for general purposes is generally:
California law caps the general property tax rate at 1% of the property's assessed value under Proposition 13.
7. If a tenant damages a rental unit beyond normal wear and tear, the landlord may:
A landlord can charge the tenant for repairs if the damage exceeds normal wear and tear. Immediate eviction or termination without notice is not typically allowed unless specified in the lease or by law.
8. Required continuing education for license renewal must include:
CE courses ensure that licensees stay updated on ethical practices, agency law, and proper handling of client funds.
9. Which deed contains no express or implied warranties?
A quitclaim deed transfers whatever interest the grantor has without warranties of title.
10. If a landlord fails to repair a leaking roof, forcing the tenant to move out, the tenant may claim:
Constructive eviction occurs when the landlord's failure to maintain the property renders it uninhabitable, forcing the tenant to vacate.
11. Which of the following best describes a fee simple absolute estate?
A fee simple absolute estate represents the highest and most complete ownership interest in real property.
12. Which is a risk of pocket listings (withholding a listing from MLS)?
Limiting exposure via pocket listing can violate an agent’s duty to act in the seller’s best interest.
13. Using a 1031 exchange, the replacement property must be identified within:
IRS rules for 1031 exchanges require the replacement property to be identified within 45 days of selling the original property.
14. An easement by necessity is usually created when:
Easement by necessity arises when land would be landlocked without access across another property.
15. In dual agency, a broker’s first obligation is to:
Under dual agency, broker must remain neutral, keep confidentiality, and fairly represent both parties. (general principle)
16. A ceiling fan permanently installed in a home is classified as:
A permanently installed ceiling fan is considered a fixture, thus part of real property.
17. A general plan in California must address:
A general plan provides a long-term framework for community growth, including land use, housing, transportation, safety, and environmental protection.
18. A junior mortgage is usually:
A junior mortgage is secondary to the primary mortgage and is repaid after the first lien in case of default.
19. Which of the following best describes a dominant tenement?
A dominant tenement is the parcel that benefits from an easement over another property.
20. Which adjustment is made when a comparable has fewer bathrooms than the subject?
Since the comparable is inferior (fewer bathrooms), value is added to it to equate it to the subject property's features.
21. A property’s highest and best use is defined as:
Highest and best use refers to the use that is legally permissible, physically possible, financially feasible, and most productive, producing the maximum value for the property.