Real Estate Practice Test – Flashcards
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Commission's Regulation 2770
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Which regulation or section(s) apply to the use of the Internet for advertising in California?
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Penny failed to indicate in the advertisement her license status.
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Penny, a California licensee, has been advertising on the Internet. She specializes in the sale of upscale homes in the Hollywood Hills area. Penny has been violating the Business and Professions Code, Sections 10235.5 and 10140.6. What has she done?
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Part 2, Sections 11000 to 11200 of the Business and Professions Code
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Which portion of the California Business and Professions Code consists of the Subdivided Lands Law?
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It is not permissible for Gerard to solicit California residents. He must hold a California real estate license in addition to his Nevada license.
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Gerard, a Nevada real estate licensee, has been advertising his services online to California citizens. He sells resort property outside Las Vegas and believes the California market could be very lucrative. Is it permissible for Gerard to advertise in this manner? Why or why not?
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The CalBRE website
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As an examinee, or a new licensee, where is the best, most accurate source for current California Bureau of Real Estate information?
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Yes, as long as the products or services do not include any actions for which a California real estate license is required.
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Is it permissible to advertise real estate associated services or products in California without a California real estate license
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Dismiss the findings if the charges are not sustained at the hearing. Reduce the proposed penalty and make an official decision.
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1 of 10 - The law judge has just issued a decision based upon the findings in a formal hearing of a real estate salesperson for various ethical violations. What is the role of the California Real Estate Commissioner at this point in the proceeding?
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Submit a proper application within 2 years of her license expiration. Providing evidence of the completion of current required continuing education. Pay the appropriate late renewal fee.
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2 of 10 - Jan failed to renew her license prior to its expiration. In order to renew her license now Jan must:
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Secret Profit
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3 of 10 - Bill the broker received a very high offer on a piece of property from a buyer. Bill makes a low offer through a "dummy" purchaser, or an accomplice who is not a buyer at all. Bill then sells the property to the buyer for the higher price, with the difference being profit. What's the violation?
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Susan may sell her property herself without obtaining a real estate license. Although she will be compensated for the sale of her home, she is not representing another person.
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4 of 10 - Susan is thinking of putting her home up for sale but doesn't want to use a real estate agent. What are her options?
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The Four-Year Salesperson License
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5 of 10 - Sam has successfully completed the Real Estate Principles course, the Real Estate Practices course, an additional college level course, and passed the salesperson licensing examination. Which license is available to Sam?
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To protect the public.
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6 of 10 - The main purpose of the California Bureau of Real Estate (CalBRE):
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Sections 10176 and 10177 of the Business and Professions Code.
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7 of 10 - Katrina had her license suspended for making false promises to clients. She had a habit of telling clients what they wanted to hear and never being able to state the facts. Of course, she could never follow through with her statements and several complaints were filed. Which guidelines constitute most suspensions?
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Hannah would need the appointment of the Governor of California. Her primary duty as Commissioner would be to enforce the laws in a manner in which maximum protection for real estate consumers is achieved.
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8 of 10 - Hannah is a newly licensed California real estate salesperson. She has aspirations of one day being the California Real Estate Commissioner. How does she get there and what does she do once she's there?
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It is certainly not acceptable. Miranda is accepting compensation for representing another person in a real estate transaction and she does not hold a California real estate license.
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9 of 10 - Miranda helps her friend Lupe purchase a home. She researches the neighborhood, assists her with a mortgage -- she essentially acts as Lupe's real estate agent. There is only one issue, Miranda does not have a California license and Lupe has paid Miranda for her help. Is this acceptable?
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must immediately stop his licensed activity. His salespersons are all placed immediately in non-working status, and his branch office licenses are cancelled. He must then take all necessary steps to re-activate his license, his salespersons' licenses and the branch office licenses.
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10 of 10 - Sam, a broker, thought the postage meter stamp was sufficient evidence of a U.S. Postal Service postmark. He was wrong and his broker's license expired. What happened next?
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She did NOT receive an actual score this time in the mail. This means she finally passed the licensing exam, and her license application is included in the envelope.
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1 of 10 - Lydia feared she did not pass the California State Licensing Exam AGAIN. As she nervously opened the envelope that held the results, what was the first clue to the outcome of her reexamination?
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The programmable calculator
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2 of 10 - Miguel sits down, ready and prepared to take the examination. He neatly places his slide rule, programmable calculator, single piece of scratch paper, answer sheet, pencil and pocket-size electronic calculator on the desk and he is ready to begin. Although extremely prepared, which item of Miguel's is NOT permitted in the testing site?
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Sara's lifetime wasn't too long. The results are normally mailed out in five days. She could have also received her results online through the eLicensing system and through the Interactive Voice Response system.
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3 of 10 - Sara waited and waited and waited for what she thought was a lifetime. Finally, Thursday morning the results of her California real estate examination arrived. What was the maximum length of "the lifetime" Sara waited and could she have gotten her results by another method?
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They were guilty of subversion by using improperly obtained test questions to prepare for the examination. This is considered a dishonest practice. they had an unfair advantage over the other applicants taking the examination. It was basically old fashioned cheating, and was not tolerated.
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4 of 10 - Marta and Sean acquire notes from a previous California State Licensing Exam through a friend. This friend had previously taken the exam and managed to record the questions on his scratch piece of paper. Marta and Sean score passing grades on their exams, but are denied licenses. Why would they be denied a license?
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California Business and Professions Code Section 10153
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5 of 10 - Mikela wants to research and study the requirements for the California Real Estate Examination Test. Where can she find the exam's purpose and requirements?
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He does not have any options. Once a completed Salesperson Examination Application is submitted to the CalBRE, no changes of any kind may be made to the application.
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6 of 10 - John completes the Salesperson Examination Application and submits it to the California Bureau of Real Estate. Driving home from work, he realizes he used his old address and not his new one on the application. What should he do?
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File the Salesperson Examination Application (RE400A)along with the appropriate fee.
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8 of 10 - Lydia has decided to actually spend a considerable amount of time STUDYING for the exam this time, in hope of earning a passing score. Her application has expired in the two years of fruitless reexaminations. What does she need to do to reapply?
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Practice of Real Estate and Mandated Disclosures
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9 of 10 - Raj is stressed. He is getting ready to take the salesperson examination and doesn't know where to begin studying. Help Raj by telling him the examination topic(s) with the largest concentration of questions.
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She may re-take the examination as many times as it takes to earn a passing score, but her application will expire in January and she must reapply first.
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10 of 10 - Lydia applied for the salesperson examination in January 2014. She sat for the exam three times in 2014 and four times in 2015. Each time, Lydia did not receive a passing score. How many times may Lydia sit through the examination in 2016?
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All discrimination in selling or renting residential property based on race is prohibited under the provisions of the Civil Rights Act of 1866, Jones v. Mayer.
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1 of 10 - While waiting in the lobby of the Fair Real Estate Company's office, Samir and Rhadika overhear an agent tell clients, "You wouldn't be happy in THAT neighborhood. It's very "colorful," if you know what I mean." Which ruling by the Supreme Court dealt with this issue?
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Anti-discrimination laws and fair trade practices
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2 of 10 - John is trying to keep things straight while he studies. He's having a rough time distinguishing federal and state legislation. Help John with the primary focus of federal legislation.
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Steering
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3 of 10 - Agent Smith tells the Jacob family the Fernwood neighborhood is beautiful, attractive, and highly desirable. The next day, Agent Smith tells the Miller family that Fernwood is deteriorating, values are falling, and the school district is less than stellar. Name the form of illegal discrimination.
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Article 16 - Ethics and Agency Relationships
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4 of 10 - John is still studying for his California real estate license. Once again, he is having a difficult time keeping areas straight. Help John with the largest area of the NAR Code of Ethics Standards and Practices.
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They have been denied the full protection of the Equal Credit Opportunity Act (ECOA). The ECOA is a part of the Fair Financing Laws.
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5 of 10 - Martha and Liz have applied for a mortgage. They both have excellent credit and very successful careers and they are perfect on paper. Martha and Liz are partners and are expecting the birth of their first child together. They are denied a loan. What's the violation here?
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She may file suit within two years of the violation. She may seek a restraining order, actual damages, and punitive damages of up to $1,000.
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6 of 10 - Jane has filed her complaint of discrimination. She also wants to seek some sort of punitive damages. What are her options, if any?
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She must explain to the Richies that she cannot ethically remove a property from the market, after an offer has been made, to sidestep a purchase by a party. She must withdraw herself from the relationship with the Ritchies or from any situation where client discrimination occurs.
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7 of 10 - The Ritchie family has put their home on the market. The Sampsons make an offer on the Ritchies' home. Suddenly, the Ritchies decide not to sell their home. They explain to Sara, their agent, that the Sampsons "aren't quite right" for the neighborhood. What should Sara do?
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The Civil Rights Act of 1968 Title VIII
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8 of 10 - Miguel and Maria have found a wonderful condo to lease. They call the owner and express their interest. The owner tells the couple it is no longer available for lease. Two weeks later, Maria sees the "FOR LEASE" sign outside the condo. Which act or law has been violated by the owner?
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The Office of Fair Housing and Equal Opportunity (OFHEO)
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9 of 10 - Jane feels she has been discriminated against in her search for a new home. She's a single mother of two who works full time. Where does she go with a complaint?
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The Better Business Bureau®
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10 of 10 - John is studying for his California real estate license. He is studying federal law, state law, and local law. Now, he is trying to get a handle on something called "Professional Code." What source has no input on the topic John is currently studying?
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Tax laws often distinguish between real and personal property. An agreement for a sale of real property must be in writing and signed by the party to be charged. If the amount or value is $500 or more, an agreement for the sale of personal property must be in writing.
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1 of 10 - Melinda's mother recently passed away. She is thinking of selling her belongings in an estate sale. During her research, she came across real and personal property regulations and laws. Please help Melinda understand the legal difference(s) between real and personal property.
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No, he does not have a case. Since the microwave was not reclaimed during the period allowed by law.
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2 of 10 - Jeremy opened a coffeehouse in a space leased from Maria and Renaldo. A week before his lease expired, Jeremy moved to a new location without his commercial microwave which was attached to the counter. Eighteen days following notice of Jeremy's right to reclaim the microwave, Maria and Renaldo sold the microwave at auction. Jeremy is furious and threatening legal action. Does he have a suit?
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The property owner must be paid compensation for the property. The property must be for public good or use. The owner must have due process in the court system.
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3 of 10 - To take private property through eminent domain, three steps must be taken by the state or local government. What are they?
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Severance
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4 of 10 - The Percy family have purchased a heavily wooded property in Northern California. They are planning to build a guest house off the main house for entertaining. In the process, many trees will need to be cleared. The family is planning to sell the wood to the neighbors as firewood. Which process applies?
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Avulsion
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5 of 10 - A violent storm comes in from the ocean, hitting the beachfront properties with destructive force. When the Meyers return to their home, they find the beach has disappeared from their property. Which term describes the damage?
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Each parcel of land has its own nonhomogeneous characteristics. No two properties are the same.
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6 of 10 - Which of the following is not considered one of the five economic characteristics of land?
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Alluvial Right
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7 of 10 - Which of the following is not a water right?
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Livery of Seisin
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8 of 10 - Jonathan decides to sell his home and transfer all of his property ownership rights to the new buyer. This bundling and selling of rights is known as:
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Cooperative
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9 of 10 - John lives in an apartment and each month pays his rental payments. He is also considered a stockholder in his building and owns property. In what type of apartment does John live?
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Method of Attachment Adaptability Intent
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10 of 10 - Gary and Paul have wooden shutters installed throughout their home. A few years later, Paul is promoted by his employer and transferred to another city. Gary wants to take the wooden shutters to their new home. Paul insists they must remain with the home. Which of the five tests for real and personal property applies?
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Fee Simple Defeasible
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1 of 10 - Penelope is interested in buying a 150-year-old historical home in San Francisco. If Penelope decides to purchase the home, it must be on the condition the original architectural features are never removed from the home. Additionally, if Penelope buys the home and then sells it at some point, the same condition must be in the sales contract, and so on. What type of freehold estate is this historic home?
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Marketable Title
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2 of 10 - Ted and Jack are selling their home to Duncan and Gary. Upon the title search, the title company discovers Ted and Jack's home is free of any liens or problems and can be easily sold. Ted and Jack's property holds which type of title?
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Severalty
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3 of 10 - TBH, Inc. owns land for development adjacent to their corporate headquarters. TBH, Inc. is the sole owner of the property. The land will be developed as a shopping and restaurant area. Which form of ownership does this property fall under?
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Covenant
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4 of 10 - HEH, Inc. owns a large parcel of land which will be used for commercial development. Upon the sale of the property to HEH, Inc., the grantor in a written agreement established the lake may never be touched and the property may only be used for commercial purposes. Which type of private deed restriction is in place for HEH, Inc.'s property?
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The Garcias own the condo in freehold but rent it to Suzette in leasehold.
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5 of 10 - Suzette is leasing a condo from the Garcias. She has been renting the condo for over three years. She renews the lease each year and, because of her loyalty and exemplarily rental history, the Garcia's allow her to make any décor changes she wishes. Which of the following statements is true about the relationship between the Garcias and Suzette?
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Voluntary Tenancy
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6 of 10 - Which of the following is not considered one of the six distinct forms of ownership in California?
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Allodial System
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7 of 10 - All property in the United States falls under which system of land ownership?
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Fee Simple Absolute
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8 of 10 - The Moltasanto family has owned a vineyard in Sonoma for over one hundred years. They have owned all rights to the property since the first day of ownership. The property is always inherited by the oldest child after the death of the previous owner. Which type of estate is the Moltasanto family vineyard?
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they have an involuntary lien placed on their home for delinquent property taxes. The couple needs to pay the taxes, any interest and/or late fees, and have the lien removed.
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9 of 10 - Patrice and Michael are in the process of refinancing their townhouse. The mortgage company calls and gives the couple the news they have a lien on their home for non-payment of the previous year's property taxes. What type of lien is on their property? What do they need to do to remedy their situation?
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No, he came to the marriage with the vacation property, therefore it may remain a separate property. However, due to the commingling of the rental proceeds from the property in the joint account, she does have a right to half the proceeds.
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10 of 10 - Christine and Scott have been married for fifteen years. They have three children, a home, and a vacation home. The couple purchased their home together after their marriage, but Scott owned the vacation property prior to the union. Christine and Scott are now getting divorced. Christine wants half of their residence and half of the ownership of the vacation property. At times they have rented the vacation home and the proceeds have gone to their joint bank account. Does Christine have any legal right to the ownership of the vacation home?
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Unenforceable
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Victoria decides not to lease the condo from Sanchez. (They have an oral agreement.) She tells him she has changed her mind the day before she had agreed to move in. He has spent time and money getting the property ready for Victoria and is thinking of suing. Which type of contract applies to the situation?
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Written in testator's handwriting
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2 of 10 - Which of the following is not a requirement of a will?
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Accession
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3 of 10 - Which of the following elements is not necessary for a valid contract?
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Counteroffer
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4 of 10 - Jack is buying the Padillas' home. He makes his offer and in his terms states he wants all the window treatments, refrigerator, and microwave to be part of the sale. The Padillas accept his offer on the condition that the refrigerator is the only item that stays in the home. Which contract term applies?
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Contingency
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5 of 10 - The Ahmed family have signed a contract to buy the Miller family's home. However, the contract states the Ahmeds must first close on the sale of their current home within thirty days. If this closing does not occur, the contract is no longer binding for either party. Which contract term applies?
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The handwritten clause generally supersedes the preprinted clause.
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6 of 10 - Ginny, a licensee, uses a preprinted contract in Tim's purchase of a new loft apartment. There is a discrepancy in the contract between a preprinted clause and a handwritten addition. Which clause supersedes?
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Tacking On
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7 of 10 - Which of the following is not a method of involuntary alienation?
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By Accession and through Avulsion (It must be reclaimed within one year of the occurrence.)
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8 of 10 - Sania and her mother own property on a river. The water has carried part of their bank downstream to another property. They want their bank back and are prepared to have it returned. Which method of property transfer applies?
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The property will be transferred according to the Statute of Descent and Distribution.
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9 of 10 - Olive Maccones dies without a will. She has three sons and seven grandchildren. She owned a substantial amount of property. What happens to the property?
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Offer
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10 of 10 - Victoria, the lessee is negotiating to lease a condo from Sanchez, the lessor. They have agreed on the monthly lease payment, term of lease, security deposit, and so forth. Victoria plans to start moving in on the first day of next month. Which of the following applies to this situation?
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A deed must be recorded in order to be valid.
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1 of 10 - Which of the following statements in reference to a deed is untrue?
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Special Warranty
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2 of 10 - Chandra is selling her condo to Fabian. Chandra's deed explains the property has been clear since her ownership. However, she cannot guarantee that is the case prior to buying the condo. Which deed covers this situation?
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Attestation
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3 of 10 - The signature of a notary public is known as:
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Trust Deed
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4 of 10 - Which of the following deeds are not really deeds at all?
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Trustee's Deed
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5 of 10 - Maya, who lives in California, just purchased her first home at a foreclosure sale. She was given a deed at the sale. What type of deed was she given?
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The transfer of a rock, some dirt, or a branch of a tree (feoffment). Livery of Seisin, the actual delivery of possession of the property. A statement made in front of witnesses in sight of the land, and the new owner's entry onto that land.
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6 of 10 - Shamus McManus purchased property from Sir Ian Wainwright under early English common law. Which of the following were acceptable methods of property transfer?
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Covenant of Exceptions and Reservations
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7 of 10 - Jeffrey is selling his loft to Caroline. He is using a General Warranty Deed in the transfer of property. Which of the following covenants is not a requirement?
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Sheriff's deed
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8 of 10 - Which of the following is not a real estate deed used in an open-market conveyance transaction?
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Melinda is the Grantor. Trevion is the Grantee.
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9 of 10 - Melinda is selling her home to Trevion. The deed, conveying the property, will be a general warranty deed. Who is the Grantor? Who is the Grantee in the transaction?
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Yes, it is not necessary for a deed to be recorded. However, recording is advisable to protect the ownership interests of the grantee, establish priority, provide a record, and convey the transfer of title.
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10 of 10 - Chandra and Fabian have heard that it is unnecessary to record a deed. Is this accurate?
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they could not prove it was financially solvent and was unable to furnish a surety bond of at least $25,000, or more, based upon the yearly average trust obligations.
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1 of 10 - XYZ Escrow has been turned down in its application for an escrow license. What could be the reasoning behind the denial of the license to XYZ?
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The instructions are considered unilateral and apply only to the Van Horns; therefore they may be known only to the Van Horns, their agent and ABC Escrow.
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2 of 10 - The escrow instructions in the Van Horn - Simpson transaction are deemed unavailable to the Simpsons. If instructions are confidential, and ABC Escrow is a dual agency representing both parties, why are the instructions only known to the Van Horns, their real estate agent, and ABC Escrow?
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The Van Horns are the grantees; and ABC Escrow the third party. This transaction constitutes escrow.
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3 of 10 - The Van Horns deposit funds with ABC Escrow as a requirement for the purchase of their new home. Who is the grantee and the third party, and what is the type of transaction?
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ABC Escrow is the neutral party; the Van Horns are the buyers; the Simpsons are the sellers.
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4 of 10 - John and Jane Van Horn are buying their first home from the Simpson family. ABC Escrow will be the closing agent for both the Van Horns and Simpsons. Which of the three is considered the neutral party in this real estate transaction?
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There must be a binding contract between buyer (grantee) and the seller (grantor); and there must be a conditional delivery of transfer instruments and funds to a neutral third party.
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5 of 10 - The Escrow Act, found in the California Financial Code, establishes two essential mandates for escrow validity. What are these mandates?
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If the Snyder family requests the information from Dan, and he has disclosed any interest he may have in the escrow company, then it is not prohibited. If Dan has made his suggested escrow company a condition of the transaction, it is a prohibited activity.
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6 of 10 - Dan, a real estate agent, suggests an escrow holder to the Snyder family for their real estate transaction. Is this a prohibited activity in California?
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The process of dividing funds between parties is proration. It includes both expenses that are prepaid by the seller and paid after closing by the buyer.
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7 of 10 - At the close of escrow, ABC Escrow divides up funds proportionately between the Van Horns and Simpsons. What is the process and what expenses does it include?
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Johnel should not be negotiating the fee due ABC Escrow as part of escrow procedures. The buyer and seller negotiate between themselves who is responsible for paying the escrow holder's fee.
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8 of 10 - Johnel, of ABC Escrow, is beginning to work on the escrow procedures of the Van Horn - Simpson file. She prepares the instructions; orders the title search and report; requests new loan instructions and documents; negotiates the fee due ABC Escrow from the parties involved; and accepts the pest control report and other reports. Which of these procedures is prohibited?
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XYZ Escrow did not maintain the records and files of its clients. Due to poor record keeping, several escrow accounts at XYZ were overdrawn.
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9 of 10 - XYZ Escrow has gone out of business. They committed one of THE violations of all violations of escrow holder regulations. What is the violation?
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Both parties close the transaction with ABC Escrow, the dual agency, in which both parties are represented. ABC Escrow then changes to separate agency and also handles each parties separate paperwork.
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10 of 10 - The Van Horns (buyers) and the Simpsons (sellers) have closed escrow on their real estate transaction. Who handles the completion of the transaction and both parties' separate paperwork?
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Escalator Clause Lease
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1 of 10 - Renee is leasing her condo in San Francisco from Brad. For the first six months of the lease, her rent will be $1,200 per month. Every six months her rent will increase $100 per month based on the increases to Brad in taxes, insurance, and other operating costs. What type of lease has Renee signed?
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Michelle must give Luis a sixty-day written notice of the lease termination because he has lived in the property for more than one year.
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2 of 10 - Michelle owns a rental property in San Diego that she has rented to Luis for four years. The street on which the house is located is going through a major widening and most of the homes are going to be leveled for the project. Through eminent domain, Michelle must sell her home to the city for the construction. What is the required length of notice Luis must receive from Michelle in terminating the lease?
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Tenancy in Common
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3 of 10 - Which of the following is not a type of leasehold estates?
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Yes, Yolanda is correct. It is illegal for Mike to take such actions. The landlords may serve the tenants with a three-day notice of eviction.
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4 of 10 - Jeff and Ryan rent a house from Mike and Yolanda Reynolds. They are three months behind in their rent and neighbors have been complaining about the noise coming from the home. Mike and Yolanda have tried to work with Jeff and Ryan to help them get back on track with the tardy rent, but the guys are not cooperating. Mike and Yolanda have decided they have no choice but to start the eviction process. Mike wants to just go in and remove the possessions, shut off all the utilities, and change the locks. Yolanda believes Mike's idea may be illegal and thinks there are other options. Is she correct and, if so, what are the options?
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No, the maximum security deposit allowed in California for an unfurnished property is two months' rent. The correct amount would be $4,800, including the first month's rent. Additionally, security deposits cannot be labeled as nonrefundable.
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5 of 10 - Shanta is renting beachfront property in Malibu. The unfurnished bungalow has two bedrooms, one bathroom, and is right on the beach. Shanta's monthly rent is $1,600. Her landlord, Harold, is requiring a $6,400 nonrefundable security deposit. This amount includes her first month's rent. Is this an acceptable amount for a security deposit?
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he has a couple of options available to resolve this issue. He may spend up to one month's rent in repairs or abandon the premises. If he abandons the premises, Jonathan is relieved from paying additional rent and other conditions of the lease.
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6 of 10 - Jonathan rents a two bedroom house from Samantha and Gerald. The plumbing keeps backing up into the basement, leaving water and sewage on the basement floor. Jonathan has repeatedly reported this issue to Samantha and Gerald. He has made telephone calls and spoken to each landlord; he has also sent a written request with proof of delivery. It has been two months and not only has nothing been done, they have not even responded to his calls or requests. What are Jonathan's options, if any?
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Implied Right of Habitability
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7 of 10 - Dr. Mullins owns a home he leases to college students. The tenants have been complaining to Dr. Mullins of bats in the attic. At times, the bats have flown downstairs into the living areas of the home. Recently in the area, a man was bitten by a rabid bat. The students are worried and are unsure of their rights. Which guarantee covers the tenants' right that the property meets the minimum health and housing codes?
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California's Statute of Frauds requires a lease to be in writing if it has a term of more than one year, or has a term of less than one year, which expires more than one year after the agreement is reached.
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8 of 10 - What circumstances require a lease to be in writing?
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No, although it is an acceptable reason for the landlord to enter the units, they must give the tenant at least a 24-hour notice and enter between normal business hours.
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9 of 10 - Samir Shah is a landlord leasing apartments for residential use. He will be updating the lighting fixtures in his units during the month of January. He has been having his maintenance crew enter the units at will to make the changes. Several of the tenants have been surprised, frightened, and inconvenienced. Is it acceptable for Samir's employees to enter unannounced?
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Yes, the missing minimum requirement is the absence of a sufficient description of the property, such as an address and/or a legal description.
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10 of 10 - Max owns a townhouse in Sacramento. He is in the process of leasing it to Hannah. The contractual lease states Hannah Scott will be leasing Max Thomas' townhouse for two years beginning July 1. She will be paying $1,000 per month due by the first of each month. The lease clearly states Max will be the landlord of the townhouse and Hannah the tenant. Is there a minimum requirement for a California lease missing?
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Net Listing
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1 of 10 - Perry is listing his home with Extra Real Estate Company, a brokerage. He wants the listing as follows: He must receive $250,000 from the sale of the home, anything above that price is the broker's commission. Which type of listing agreement is Perry demanding?
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he could speak with the broker and possibly come to a mutual agreement that it is in both parties' best interest to cancel the listing.
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2 of 10 - Hassan is not happy with the listing agreement on his home through REE Realty Company. He has not been pleased with the showings without notice, the agents showing his home have been rude, and he doesn't feel the property has received the advertising or exposure promised when he signed the listing contract. What is his best option for terminating the listing with REE Realty Company?
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jose is the agent; Howard is the principal; they have an agency relationship; Jose is a special agent. Jose is the agent; Howard is the principal; they have a fiduciary relationship; Jose is a special agent.
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3 of 10 - Howard wants to purchase a vacation property. He decides to use the expertise of a real estate professional. One of his business associates recommends Jose. Howard explains to Jose that he wants Jose to only represent his purchasing interest, and a contract is signed. Who is the agent? Who is the principal? What is their relationship? What is Jose's role?
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Antitrust violations; fines of up to $10 million for corporations and up to $1 million for individuals and/or prison time
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4 of 10 - Price fixing, group boycotts, bid rigging, market allocation and division of markets by location or price are all examples of ________________ and are punishable by ___________________.
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Helpful Real Estate Company becomes the agent of RSS Real Estate Brokerage due to the appointment without the consent of the principal.
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5 of 10 - RSS Real Estate Brokerage is the listing broker for the Pratte property. RSS delegates some of the responsibility of the listing to Helpful Real Estate Company. The two brokers cooperate on listings frequently and have a good working relationship. Unfortunately, RSS failed to get the principal's (Pratte's) agreement to the delegation. What is the relationship between RSS Real Estate Brokerage and Helpful Real Estate Company?
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No, not only should the broker have deposited the earnest money within three business days of receipt of the funds, the money was to have been deposited into the broker's trust fund not the broker's account.
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6 of 10 - TBH Realty Company is handling the sale of the Lopez (seller) home to the Bright (buyer) family. The buyers give an earnest money deposit to the brokerage in the amount of $5,000. The money is then deposited into the broker's account at the bank on the seventh business day after receiving the funds. Has TBH Realty Company followed all trust account regulations with the earnest money?
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Commingling is the practice of mixing a client's money with the agent's personal funds. Conversion is the unlawful misappropriation and use of a client's funds by a licensee. Conversion is the more serious violation.
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7 of 10 - What is the difference between commingling and conversion? Which, if either, is considered a more serious violation?
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Ratification
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8 of 10 - Scott is trying to sell his home FSBO. The Bartells believe Scott's home could be their dream home, but they have been working with Melinda, a licensee, to find a new home. Melinda shows the Bartells the home, failing to disclose her status as an agent. They love Scott's home and want to buy it. Scott is not interested in any way, shape, or form in working with an agent. However, the Bartells have made an offer above his asking price and he can't refuse it over the Melinda issue. Which of the following describes the creation of this agency relationship?
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The fact that one party (the Marinos/sellers) or another party (the Snyders/buyers) pays a commission does not create an agency relationship.
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9 of 10 - The Marinos are selling their home to the Snyders. Tim is representing both the Marinos and the Snyders in the transaction. He had initially listed the Marinos' home and realized their home would be perfect for his buyer clients, the Snyders. After making all the necessary disclosures to both parties, he showed the Snyders the Marinos' home and they are buying it. The Marinos are paying commission on the transaction to Tim's broker, who in turn, will compensate Tim. Since the Marinos are paying Tim's commission, does this constitute an agency relationship, and, if so, what kind of an agency relationship?
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Yes, this is legal as long as hr does not violate the Federal Fair Housing Laws. These statements are considered "Puffing" in the real estate world. "Puffing" can be unethical if the statements are not true, but it is not illegal.
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10 of 10 - The Lemps have been looking at new homes for weeks and have not found anything worthy of an offer. Mikel, their agent, has invested a large amount of time in showing homes with no luck. Today, he calls Mr. Lemp and says, "I have found you the perfect home! The home is amazing! The yard is perfect and lush. The school district is the best in the state. This home and area are the most prestigious in the city!" Are these types of statements legal?
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PC 518, 519
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1 of 10 - Jason has approached Sam about purchasing an acre of property that adjoins Jason's backyard. Sam has explained to Jason on numerous occasions that he is not interested in selling. Jason has resorted to telling Sam if he doesn't sell the land, he'll contact the authorities and accuse him of dealing drugs out of his home. Which Penal Code Section addresses this crime?
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he could go to prison and/or be fined $10,000 for each illegal transaction.
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2 of 10 - Max, a licensee, accepts a bribe from ABC Title Company for referring clients. What is Max's possible punishment?
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The selection and preparation of a mortgage or deed by a broker, in which a fee was charged, constituted the unlawful practice of law.
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3 of 10 - The 1943 case People v. Sipper held what decision? The selection and preparation of a mortgage or deed by a broker, in which a fee was charged, constituted the unlawful practice of law.
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Hold interest in a real estate company or brokerage firm.
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4 of 10 - The Real Estate Commissioner has the authority to perform all of the following actions except:
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A fine up to a maximum of $50,000.
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5 of 10 - A corporation is found guilty of charging purchasers advanced fees for securing mortgage loans on homes they have listed. What is the punishment for the violation?
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In excess of $10,000
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6 of 10 - The Commissioner discovers in an audit commingling of trust accounts by a licensee. At what amount does the court issue a restraining order against the licensee?
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PC 639-639a
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7 of 10 - ABC Mortgage Company accepts a bribe from a licensee in exchange for approving mortgages for all of his clients. Which Penal Code Section addresses this crime?
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PC 470, 473
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6 of 10 - Greg, a licensee, fails to have his client sign off on the purchaser's counteroffer. Greg's client verbally approves the new terms, but Greg failed to obtain his signature. The deadline for signing the counteroffer is in one hour. Greg decides to sign his client's name. Which Penal Code Section addresses this crime, if it is a crime?
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Automobiles and other personal property valued over $950. Money, labor, real and personal property that exceeds a value of $950.
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8 of 10 - The designation "grand theft" is used in relation to the theft of:
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he is obligated to speak to the authorities and report what he has witnessed. If he is unsure a crime has been committed, he should obtain legal advice.
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9 of 10 - Jeremy, a licensee, witnesses Patti, another licensee, involved in behavior that is questionable. Jeremy learns Patti's client is also willfully involved in the indiscretions. What action, if any, should Jeremy take?
