Mixed Deck — All CA REAL ESTATE Topics Flashcards

Under California law, how much notice must a landlord typically give a month-to-month tenant before increasing rent?

Answer: 30 days

California requires at least 30 days' written notice for rent increases of 10% or less, and 90 days for increases over 10%.

Which appraisal approach estimates value by calculating the cost to replace or reproduce a building minus depreciation, plus land value?

Answer: Cost approach

The cost approach estimates value by adding land value to the depreciated cost of improvements.

Which term describes the right of the state to take ownership of property when a person dies without heirs and without a will?

Answer: Escheat

Escheat is the government power by which the state takes title to property when the owner dies intestate with no heirs.

When you ask prospective buyers if they prefer June 1, July 1, or August 1 for possession, what type of closing technique are you using

Answer: positive choice

A positive choice closing technique offers the buyer a choice between two or more desirable options, assuming they have already decided to purchase. By asking about preferred possession dates (June 1, July 1, or August 1), the agent bypasses the 'if you buy' question and moves directly to 'when you buy.' This subtly encourages the buyer to commit by focusing on a minor detail of the transaction, making the purchase seem like a foregone conclusion.

A real estate agent who discourages buyers from purchasing in certain neighborhoods based on the racial composition of those neighborhoods is guilty of:

Answer: Steering

Steering is the illegal practice of directing buyers toward or away from certain neighborhoods based on the protected characteristics of current residents.

A property has a net operating income of $24,000 per year. Using a 8% cap rate, what is the estimated value?

Answer: $300,000

Value = NOI ÷ Cap Rate = $24,000 ÷ 0.08 = $300,000.

Under California real estate law, a listing agent owes which duties to the seller?

Answer: Loyalty, disclosure, confidentiality, diligence, and accounting

A listing agent owes the seller fiduciary duties including loyalty, disclosure, confidentiality, diligence, and accounting.

What is 'spot zoning'?

Answer: Rezoning a small parcel inconsistently with surrounding uses

Spot zoning occurs when a small parcel is rezoned differently from its surroundings, which is often challenged as arbitrary.

What is the purpose of a CAM (Common Area Maintenance) charge in a commercial lease?

Answer: To recover costs for maintaining shared areas like parking lots and lobbies

CAM charges reimburse landlords for the costs of maintaining and operating common areas shared by all tenants.

When comparing properties in the sales comparison approach, adjustments are made to which property?

Answer: The comparable sale only

In the sales comparison approach, adjustments are made to the comparable sale to reflect differences from the subject property.

In California, what is the primary method used by appraisers to value single-family homes?

Answer: Sales comparison approach

The sales comparison approach is preferred for residential properties because it uses recent comparable sales data.

A buyer qualifies for a maximum monthly payment of $2,200 (PITI). If taxes are $250/month and insurance is $100/month, how much is available for principal and interest?

Answer: $1,850

$2,200 − $250 − $100 = $1,850 available for principal and interest.

A monthly mortgage payment is $1,850. If the annual interest rate is 7% and the loan balance is $250,000, how much of the first payment goes toward interest?

Answer: $1,458.33

$250,000 × 0.07 ÷ 12 = $1,458.33 interest for the first month's payment.

Which of the following real estate advertising practices violates fair housing laws?

Answer: Using photographs that exclusively depict people of one race

Fair housing law prohibits advertising that indicates a preference or limitation based on race or other protected classes, including the exclusive use of images depicting only one racial group.

Property managers can be protected against receiving no fees when managing a vacant property they are unable to rent by a

Answer: minimum fee

A minimum fee clause in a property management agreement protects the property manager by guaranteeing a base payment even if the property remains vacant and unrented. This ensures the manager is compensated for their time and effort in marketing and attempting to lease the property, regardless of whether a tenant is secured. Without such a clause, the manager might receive no income for their work on a vacant unit.

What government power allows the state to take private property for public use after paying just compensation?

Answer: Eminent domain

Eminent domain is the power of government to take private property for public use with payment of just compensation.

A lot is described as being 1/4 of a section. How many acres does it contain?

Answer: 160 acres

A section = 640 acres; 1/4 of a section = 640 ÷ 4 = 160 acres.

The California Real Estate Commissioner is appointed by whom?

Answer: The Governor of California

The California Real Estate Commissioner is appointed by the Governor to head the California Department of Real Estate.

In California, a landlord must provide how much notice to terminate a month-to-month tenancy for a tenant who has lived there for more than one year?

Answer: 60 days

California requires 60 days' written notice to terminate a month-to-month tenancy for tenants who have resided in the unit for more than one year.

Which of the following is a property manager's responsibility under California law?

Answer: Maintaining the property in a habitable condition

California's implied warranty of habitability requires landlords and their agents to maintain properties in safe, livable condition.