First Tuesday Real Estate Online Practice Exam

These questions are part of the practice quiz. Start practicing

• If a broker fails to disclose dual agency, they may face:
• What is a security deposit?
• Who is primarily responsible for ensuring Agency Law Disclosure obligations are met in a real estate transaction?
• Which statement accurately describes typical Closing Disclosure contents?
• All assurances to pay a broker fee must be in writing and signed by the person who agreed to pay the fee, according to which legal doctrine?
• If a contingency is not satisfied, the person authorized in writing or benefiting from the contingency may:
• Under an exclusive right-to-sell listing, the broker earns a commission when:
• What is the primary difference between a mortgage and a deed of trust?
• What is the purpose of paying discount points in a loan?
• Name two common environmental concerns in real estate transactions and how they are typically addressed.
• On the date of the seller's breach, the buyer's damages accrue interest at 10% on amounts recovered for which expenditures?
• Which of the following best protects the broker if a buyer, introduced by the broker, buys after listing expires?
• Which statement describes an easement that benefits a parcel of land?
• Which term describes a person who purchases property in good faith without knowledge of a preexisting enforceable purchase agreement?
• Offers made by buyers in real estate purchase agreements become what type of contract when accepted?
• What is an adjustable-rate mortgage (ARM), and how does it differ from a fixed-rate mortgage?
• Which item would typically NOT be excluded from coverage in a title insurance policy?
• What constitutes fraud in real estate transactions, and what remedies are available?
• If one spouse sells community real estate without the consent of the other, the non-consenting spouse has ______ from the recording of the transaction to file an action to set the transaction aside.
• Which unities are required to create a joint tenancy?
• Which statement accurately describes how a buyer may deliver notice to exercise an option, assuming no method is specified in the agreement?
• Which of the following describes how brokers enforce ethical and legal compliance among agents?
• If a home inspection reveals unknown defects, the buyer may do which of the following?
• A _____ returns the buyer and seller to their respective positions prior to entering into the purchase agreement, as though they had never agreed to the transaction.
• Any defect in an arbitrator's award resulting from error of fact or law, no matter how flagrant, is neither reviewable nor correctable, unless the arbitrator:
• Which statement best defines a fixture in real estate?
• What is the difference between judicial foreclosure and non-judicial foreclosure?
• A preliminary title report (prelim) is best described as
• Carryback disclosures are required for which financing methods?
• A buyer's broker representing an EP investor needs to the seller-in-foreclosure a written EP disclosure statement confirming the buyer's broker representing the EP investor is:
• What is a material fact in real estate, and who must disclose it?
• The minimum retention period for all agent activity records during a listing is:
• The amount of the broker fee implicitly related to:
• An Annual Property Operating Data Sheet includes data based exclusively on income and expenses actually incurred in the preceding year. What term is used to describe this data?
• A safety clause allows the broker to earn a fee when:
• What does the Annual Percentage Rate (APR) represent, and why is it important when comparing loans?
• A buyer's cost sheet should include:
• Before using an income and expense data worksheet, an agent should obtain authorization from:
• To begin an analysis of income property, the seller's agent may produce which items?
• After a reasonably diligent visual inspection of a one-to-four unit residential property, the seller's agent should note on the Transfer Disclosure Statement which of the following?
• A contingency included for the mutual benefit of both parties can be waived by:
• Which condition ensures both parties have legal capacity to contract?
• A buyer whose seller breaches their purchase agreement is entitled to recover expenses incurred after the breach if the expenditures are the natural result of the seller's breach; these damages are called:
• Mediation is an informal, confidential and non-binding form of dispute resolution.
• Which statement best define net operating income (NOI)?
• Brokerage events that trigger a seller's agent to prepare a seller's net sheet typically include:
• An offer is considered revoked when:
• Rejection occurs when the buyer declines or the seller refuses an offer.
• The buyer's maximum offer price is influenced by:
• The existence of an oral or written contingency provision in a purchase agreement renders the agreement:
• When a purchase agreement requires a Structural Pest Control (SPC) report, how soon should the SPC report be delivered to the buyer?
• Which is NOT an element required to prove adverse possession?
• Define net operating income (NOI) and capitalization rate (cap rate) and explain their relationship.
• Which deed is typically the least protective for the grantee?
• Under the statute of frauds, which element is often required for real estate contracts?
• Which statement correctly describes record notice and constructive notice?
• Not a fiduciary duty?
• The CLTA standard policy is purchased by which parties in typical California transactions?
• Which of the following is a hallmark of an exchange transaction?
• In real estate practice, an offer becomes a bilateral contract upon which event?
• When a contract is assigned to a third party, which statement is true?
• When a TDS is delivered after the seller has entered into a purchase agreement, what may the buyer do?
• Which statement describes the process for challenging an arbitrator's award in court?
• What type of insurance is typically required by lenders to protect the property?
• In an EP transaction, the seller-in-foreclosure must be provided with a written EP disclosure confirming the buyer's broker representing the EP investor is a licensed real estate broker.
• What does a standard title insurance policy cover, and what are typical exclusions or exceptions?
• The relationship established on entering into a listing agreement that specifies the scope of activities and authorizes the broker to carry them out is:
• Dual agency in real estate is described as?
• APOD is primarily used to evaluate a property's:
• A fixture is generally considered to be what in real estate?
• If a home inspection reveals undisclosed defects, which option reflects the correct remedy for the buyer?
• Earnest money: What is the primary purpose of placing earnest money in escrow?
• Which instrument would likely allow non-judicial foreclosure by power of sale?
• In a typical closing, what is the purpose of earnest money?
• The hallmarks of an exchange transaction include:
• In a residential closing, what is the purpose of the closing disclosure?
• Which environmental hazards on a property pose a direct health threat to occupants?
• Which form allows each owner to hold an undivided interest that passes to heirs upon death?
• Agency disputes arise during the _______ in the representation of a client.
• What term describes an unsuspecting buyer who acquires property without actual knowledge or recorded notice of a preexisting enforceable purchase agreement held by another buyer regarding the same property?
• Which statements best describe how a land survey resolves boundary disputes and the difference between metes-and-bounds and lot-and-block descriptions?
• Who must keep a copy of the lead-based paint disclosure for at least three years after close?
• The Agency Law Disclosure form must be presented to all parties by a broker or their agent in which transactions?
• Which of the following is an encumbrance of title?
• Which elements are required to prove adverse possession?
• Annual increases in HOA special assessments are limited to what percent of the prior year's budgeted expenses?
• Which ownership form is characterized by survivorship and is commonly contrasted with tenancy in common?
• Which type of listing does not require an expiration date?
• A seller's agent is to advise their seller in times of weak or weakening pricing power to:
• A withdrawal-from-sale clause entitles the broker to full listing fee if, during the listing, the owner's conduct causes the property to be:
• In selling real estate, what term describes the agent representing the seller?
• Who purchases the CLTA standard policy in a California closing?
• Lead-based paint disclosures apply to homes built before which year?
• Neither the seller nor any agent is liable for the erroneous preparation of a Natural Hazard Disclosure Statement delivered to a buyer when which conditions apply?
• Lifeguard signage is required for condominium and apartment projects to indicate the availability of lifeguard services.
• Power of sale is typically associated with which instrument?
• A seller's agent has an affirmative duty to voluntarily disclose information to a potential buyer regarding a prior occupant.
• In a unilateral contract, which event triggers the promisor's obligation?
• Purchase agreement variations for one-to-four unit residential sales transactions include purchase agreements for which of the following?
• When a broker gives tax advice, the best practice is to involve the client's other advisors in the final decision.
• An Annual Property Operating Data sheet (APOD) is typically used to present operating information and includes:
• In a dual agency in a one-to-four unit residential sale, brokers may not pass on information from one party to the other relating to:
• What is the timing for delivering an SPC report under a purchase agreement that requires one?
• Of all the various broker fee arrangements, which leaves the broker with the least assurance the fee will be paid at close of escrow?
• Which document is primarily used to disclose environmental hazards to buyers in real estate transactions?
• If a buyer directly asks about deaths on a property, the agent should:
• All records of an agent's activities on behalf of a client during the listing period need to be retained by the broker for how long?
• A finder providing referral services for a fee may:
• When both the buyer and seller sign a written agreement to pay a broker's fee, who are considered third-party beneficiaries?
• Which document is used to disclose hazards to buyers that is separate from the Transfer Disclosure Statement?
• True or false: A real estate agent is obligated to disclose known material facts about a property when directly questioned by a purchaser.
• An escrow officer has which obligation to report suspicious facts detected before close of escrow?
• What is the Closing Disclosure, and which law requires its use for most residential transactions?
• Who typically has rights to harvest emblements after a lease ends?
• If a seller breaches a listing that does not contain a termination-of-agency clause, the broker's remedy is to:
• List the typical steps in a residential closing from offer acceptance to recording.
• Condominium and apartment projects are required to post signs indicating what?
• What distinguishes a latent defect from a patent defect, and why is this distinction important in disclosures?
• If a contingency is not satisfied, what may the authorized party do?
• Which of the following is NOT typically required to form a legally enforceable real estate contract?
• Disclosures of known material defects are typically disclosed by whom?
• Under an exclusive right-to-sell listing, the broker earns a fee when:
• How long must the seller retain the lead-based paint disclosure after escrow closes?
• What is zoning, and how do zoning ordinances regulate property use?
• Which statement about a title insurance policy's coverage and exclusions is true?
• In a buyer's listing agreement, broker fee provisions may include which of the following types of fees?
• Who must present the Agency Law Disclosure form to all parties in a transaction?
• What does the implied covenant of quiet enjoyment guarantee?
• Encumbrances of title include which of the following?
• Which statement best describes a fixed-rate mortgage in terms of payment amounts over time?
• Lead-based paint disclosure applies to homes built before which year?
• If a buyer breaches and there is no liquidated damages clause, the seller's recoverable damages include which category?
• Who typically prepares the Annual Property Operating Data (APOD)?
• What is a contingency clause, and why is it important in a real estate contract?
• A seller's broker does not have a contractual right to collect a fee from a breaching buyer when the broker lacks which of the following?
• When hiring a home inspector, which qualifications should you look for?
• Notice of any environmental hazard must be delivered to a buyer in writing on which documents?
• Under ordinary circumstances, defects in an arbitrator's award are not reviewable or correctable; which option could still allow a remedy?
• Earnest money shows serious intent; what fiduciary duty does the broker owe to the buyer in handling it?
• A Statement of Account for trust funds should include:
• What term describes a broker or agent having a bias that hinders fiduciary duties?
• Which statement describes protected classes under federal fair housing laws?
• Which term describes an informal, confidential and non-binding form of dispute resolution designed to help the parties reach an accord without litigation while allowing judicial intervention?
• Addenda attached to a purchase agreement serve to
• A standardized inspection report form used by SPC companies typically includes which of the following?
• A contingency included for the mutual benefit of both the buyer and seller can be waived by:
• A withdrawal-from-sale clause is designed to compensate the broker if the seller's actions:
• Which statement describes novation?
• Addenda attached to a purchase agreement include which of the following?
• Before a buyer or seller may consider canceling a transaction, the other person needs to have:
• The maximum price a prospective buyer can offer is determined by:
• The duty on an agent to disclose the extent of their knowledge on a transaction's tax aspects when it is a material fact is an example of which duty?
• To form a contract in real estate, the agreement must include:
• In real estate jargon, which party is sometimes referred to as a selling agent?
• What is title insurance and why is it typically purchased?
• A seller's broker does not have a contractual right to collect a fee from a breaching buyer when the broker lacks which of the following?
• Which appraisal approach is most appropriate for valuing an investment property based on its income stream?
• Without a liquidated damages provision in the purchase agreement, the seller is entitled to recover:
• In traditional agency relationships, a cooperating broker is defined as a subagent with affirmative duties owed to which party?
• Which statement best describes a bilateral contract?
• Which practice is recommended when the broker provides tax advice?
• Under an arbitration clause, the arbitrator's award is binding and final unless it is subject to judicial review.
• Which statement best describes how brokers supervise and police the conduct of their agents?
• What is a quitclaim deed primarily used for, and what does it guarantee the grantee?
• After a reasonably diligent visual inspection, the Transfer Disclosure Statement should note which of the following?
• A form of payment which is uncollectable, unredeemable and with no present value is:
• Which remedy specifically compels performance in a real estate breach?
• When a buyer and seller both agree in writing to the payment of a broker fee, who are considered third-party beneficiaries?
• When the notice of the seller-in-foreclosure's cancellation rights are properly contained in the EP agreement, the seller's cancellation period ends:
• Which describes an easement in gross?
• Recoverable money losses the seller may incur as transactional expenditures include which of the following?
• Which acronym stands for the law requiring the Closing Disclosure?
• Which transaction type exempts the seller, but not the seller's agent, from preparing and delivering the statutory TDS?
• A seller's counter to an unacceptable purchase agreement offer may be written up by the seller's agent and submitted to the buyer using:
• What type of deed guarantees the grantor has good title and will defend against claims arising from the period of ownership?
• A ______ retroactively extinguishes all known claims on disputes the parties have between themselves.
• If a tenant assigns a lease, what rights and liabilities remain with the original tenant?
• What describes earnest money in a real estate contract?
• A seller's agent on a one-to-four residential property owes an affirmative duty to a prospective buyer to gather information regarding which of the following?
• HOA annual special assessment increases are limited to what percent of prior year's budgeted expenses?
• What term describes the obligation to act in a client's best interest, including confidentiality and loyalty?
• What is the function of a preliminary title report in a real estate transaction?
• What is the purpose of a title commitment in the closing process?
• The HOA must provide documents requested by an owner within how many days after the postmark of the written request?
• What is a typical characteristic of an open listing?
• Who may employ a real estate sales agent?
• Who are the primary users of contingency provisions in purchase agreements?
• For Sale signs posted outside of a mobilehome can be of a(n) _____ design and need to face the street, but cannot extend into the street.
• Which statute requires certain contracts to be in writing to be enforceable, and what is its general purpose?
• What document reflects the status of title commitments and endorsements?
• A seller's net sheet includes sections regarding which of the following?
• The seller may incur recoverable transactional expenditures such as which items?
• What is the difference between a promissory note and a mortgage?
• In a judicial foreclosure or trustee's sale, which party is exempt from preparing and delivering the statutory TDS?
• Which rights are typically included in the legal bundle of rights associated with real property?
• Which document contains contingency provisions?
• What are CC&Rs, and what powers do homeowner associations typically have over property owners?
• What is an encroachment?
• How is a seller credit or debit for property taxes prorated at closing computed?
• Failure to provide the Agency Law Disclosure prior to listing results in:
• What term describes the seller's performance that must occur before the buyer's obligation to deposit closing funds?
• A finder providing referral services for a fee may be paid by which of the following?
• The legal basis for a broker's recovery against a seller for intentional interference with the payment of a fee is a:
• Which statement about trust funds statements is true?
• In adjusting equities between co-owners, the owner with the larger amount of equity will receive which form of consideration?
• What is it called when a seller's agent deletes terms from a signed purchase agreement by crossing out or covering them with white-out?
• When must the carryback disclosure be signed by both buyer and seller?
• Regarding information about a prior occupant, which statement is correct?
• Name and briefly describe the three primary real estate appraisal approaches.
• A buyer who recovers money losses is entitled to recover interest at the legal rate of 10%, commencing on the date of the seller's breach, on amounts recovered for:
• An equity purchase (EP) transaction takes place when an owner-occupied, one-to-four residential property in foreclosure is acquired for _____ purposes by an EP investor.
• Which form of concurrent ownership includes the right of survivorship?
• Which closing document is used to calculate prorates and adjustments related to HOA assessments?
• Natural Hazard Disclosure is mandated on the sale of which types of property?
• Which form of property ownership creates a right of survivorship between co-owners?
• Which remedy returns the parties to the pre-agreement positions?
• The closing documents needed by escrow and the buyer regarding the HOA status to calculate prorates and adjustments include which document?
• A lot-and-block description references what type of document?
• What is disclosed in a typical agency disclosure form, and why is it important?
• The enlarged ownership interest of a surviving joint tenant is documented by recording an affidavit declaring the death of the other joint tenant. Who may sign this affidavit according to common practice?
• A buyer's cost sheet typically includes:
• In a deed of trust arrangement, who holds the title in trust?