California Real Estate Test 3
This is a timed quiz. You will be given 60 seconds per question. Are you ready?
A right to later buy a property at an undetermined price given to a tenant that does not compel the owner to sell is an example of a(n):
This is the only the answer selection which meets all the requirements set forth in the question. Options and contracts both obligate the seller and stipulate an agreed to price. A right of first refusal is a pre-emptive right to buy a property if the owner decides to sell.
A resident manager in an apartment building is required to have a contractor’s license for any repairs exceeding:
A resident manager who performs, orders, or oversees maintenance or repair projects costing $500 or more are subject to contractor licensing requirements issued by the California Department of Consumer Affairs Contractors State Licensing Board (CSLB).
Which of the following is not disclosed in the seller’s Transfer Disclosure Statement (TDS)?
The statutory Transfer Disclosure Statement (TDS) only comments on conditions within the property itself. However, criminal activity occurring near the property is a material fact which must be separately disclosed.
An abandonment can be noticed and carried out when a tenant stops paying rent and:
The abandonment of real property requires having no intent to continue meeting the obligations of a lease or occupying the property
Freddie, an unlicensed employee of a real estate broker, hands out door hangers and makes telephone solicitations seeking buyers and sellers. Under the real estate law, these activities are:
An employing broker is liable for any wrongful act conducted by their employee.
Both a seller and a buyer ask the broker to give them the trust funds deposited by the buyer. How is the broker to respond?
This is a terminology question. An interpleader action is a legal process asking the court to resolve the dispute between the principals.
A sublease:
A sublease is less than a complete transfer of a leasehold interest subject to the terms of the master lease. The original lessee retains certain obligations and acts in a capacity similar to the lessor in relation to the sublessee.
The Transfer Disclosure Statement (TDS) form is required on:
Many disclosure laws target one-to-four unit residential properties as a protected class of real estate. As the Transfer Disclosure Statement (TDS) form is completed by a seller regarding known facts, it is not required in the instance of a foreclosure. Further, commercial property transactions require the disclosure of property defects affecting value, but the statutory TDS form is not required
The act of restricting a person from seeking to buy a residential property in a community and redirecting them to other housing is known as:
This is a Fair Housing question. Envision a sales agent “steering” the potential buyer away from neighborhoods the buyer might wish to see.
_____________activities refer to the concerted and continuing efforts taken by an agent to meet the objectives of their client under their employment agreement.
Due diligence is a positive effort to work for the client’s best interest. A conflict of interest imposes a bias that makes it difficult to work solely for the client’s best interest.
A surrender occurs due to the cancellation of the lease agreement by:
When the tenant relinquishes possession by mutual agreement with the owner, it is referred to as surrender. Alternatively, if the tenant relinquishes possession with no intent of returning and without the agreement of the owner, it is called abandonment.
Which of the following conditions would not cause a building to be declared uninhabitable?
This question is phrased in the negative. Answer selections A, C and D render the rental property uninhabitable. The electrical wiring (a significantly longer answer and more detailed answer selection), does not trigger the inhabitable defense since it is safe and functional even though it does not meet current building codes.
When a real estate license expires, how long is the agent’s grace period in which they may reinstate their license?
A grace period lasts two years in which a licensee by process of a late-renewal may reinstate their license
Sexual discrimination in housing is outlawed in sales and rentals under the:
Gender is among the protected groups described in the Civil Rights Act of 1968
The total positive balances due to all beneficiaries of a broker’s trust account need to at all times equal the account’s:
Just as with a personal checkbook, a trust account needs to balance.
The covenant of quiet enjoyment most directly relates to:
Standard rental agreements contain a covenant obligating the lessor (landlord) to allow a tenant to live free of harassment and benefit from the quiet enjoyment of their property.
The Real Estate Commissioner may discipline a broker for committing which of the following violations of Fair Housing law?
All of the listed activities are violations which are subject to disciplinary action.
A seller’s broker earns their commission:
The key word in the question is “earned.” When the buyer who is ready, willing, and able has been found, the commission is earned. Another question might ask “when” the commission is generally received, which is the close of escrow.
A public walkway within a condominium community:
Can you visualize exceptions that would make answer selections A and B incorrect? For instance, some walkways may be narrower than five feet or made of asphalt. Answer choice D cannot be correct, as the homeowners’ association (HOA) within a condominium community is responsible for the maintenance of common areas and facilities. Thus, C is the best option as public walkways always exist in a common area in an HOA community.
If a seller refuses to fill out their section of the Transfer Disclosure Statement (TDS), the seller’s agent is advised to:
This is the best answer choice. However, as a matter of best practice, the seller’s agent is to explain to the seller their obligation to accurately complete their portion of the Transfer Disclosure Statement (TDS).
An unlicensed assistant in a real estate office cannot:
This question provides a good source of information about the activities that can be performed by unlicensed assistants that can be used in future questions on this topic.
Which of the following is an example of personal property?
Only trade fixtures belong to the tenant as personal property and are to be removed by the tenant on the termination of the lease.
If a tenant moves in and pays one month’s rent prior to receiving a written copy of a verbally agreed-on two-year lease, the tenant has a(n):
Due to the fact the tenant moved in and began paying rent, these activities signifying periodic tenancy take precedence over the verbal lease agreement.
Title VIII, also known as the Federal Fair Housing Act, refers to the:
The Unruh Act is California specific. The Civil Rights Act of 1964 is in reference to voting rights legislation. Thus, the correct answer is A. Civil Rights Act of 1968. Notice the Civil Rights Act of 1968 has been addressed in several previous questions, which may be helpful when answering this question.