This is a timed quiz. You will be given 60 seconds per question. Are you ready?
A Natural Hazard Disclosure Statement (NHD) is required on all properties located in the areas specified in answer selections a, c and d. Lead-based paint is not a natural hazard and is provided on the sale of any residential property which was constructed pre-1978 using a Lead-Based Paint Disclosure.
The theory of estoppel holds the act of making a down payment, occupying and improving a property represents a mutual agreement to the sale
Earthquake fault zones are a quarter of a mile wide
Discrimination can occur among any protected group. Here’s an example of a question that can cause confusion simply by the structure of answer choice C. If the act is illegal (answer choice D), then it cannot be legal regardless of being classified as ethical or not.
A red flag is something that alerts an agent of a previously unknown potential physical problem with a property. The only answer selection that is consistent with this is an uneven floor.
Record keeping commences from when the listing was signed or when the sale was complete, i.e., the close of escrow.
A material fact is one that affects the value and desirability of a property. As such, the failure to disclose is a significant breach of the broker’s fiduciary duty to their client. If the failure to disclose rises to the level of fraud or deceit, the broker may be subject to civil or criminal penalties depending on the nature of the misconduct.
“As is” is a nebulous and frequently misunderstood statement in real estate practice. A Transfer Disclosure Statement (TDS) containing property information including known or suspected property defects affecting value is required to be delivered to a prospective buyer on the sale of a one-to-four unit residential property as soon as practicable on the commencement of negotiations.
Paying a portion of their commission to a buyer or seller in a transaction is allowable provided full disclosure is made to all parties. Each of the other answer selections is against the law.
A broker needs to pay into social security for an employee, but not for an independent contractor.
“Puffing” refers to exaggerating certain components of a property. Think of a bird that expands its chest to impress a potential mate.
Here’s an example of arriving at the correct answer by eliminating the wrong answers. Though the other answer selections moderately relate to a property, the existence of cracks in a hillside subdivision indicates there may be a problem with the soil under the property, which is best diagnosed by a soil engineer.
— Franchise sales is an important part of business brokerage, such as fast food restaurants and convenience stores.
This is a clear ethics violation. Kickbacks are never acceptable under any circumstance.
Once again, this is a licensing question. A broker’s license is required to assist property owners and buyers.
An unlawful detainer (UD) action is the court procedure to force a tenant to vacate the rental space they do not have the right to possess. A lessor (landlord) is the aggrieved person who initiates this process against an individual who holds no right to occupy a property, such as a holdover tenant.
An applicant needs to apply for a license within one year of passing an examination.
The maximum security deposit for an unfurnished rental unit is two months’ rent while the maximum for a furnished unit is three months’ rent. There is no specific dollar limit.
A license is a revocable right to use something, such as land. A license is appropriate This is a real estate licensing question. Recognize the need to have a license for most any activity involving a potential principal
This is the earthquake disclosure law
The Department of Fair Employment and Housing is the state agency empowered to enforce Fair Housing laws.
— Leverage is the use of debt financing of an investment to maximize the return per dollar of equity invested.
Most laws and regulations are designed to protect the public. Preventing fraud may be Most laws and regulations are designed to protect the public. Preventing fraud may be part of the goal, but the total reach of the Real Estate Law is far broader than that.
Discrimination is almost always wrong as it is against public policy and in conflict with Fair Housing laws. Senior citizen housing is one of the few exceptions.
