Real Estate 101 Solved Exam Questions
Course Introduction
Real Estate 101 introduces students to the foundational principles and practices of the real estate industry. This course covers essential topics such as property ownership, real estate law, land use regulations, property valuation, financing, and the real estate transaction process. Students gain an understanding of the roles and responsibilities of real estate professionals, as well as practical insights into buying, selling, and managing various property types. Through case studies and real-world examples, the course prepares students for further study in the field and equips them with basic knowledge needed to navigate todays real estate market.
Recommended Textbook
California Real Estate Principles 9th Edition by Dennis J. McKenzie
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15 Chapters
624 Verified Questions
624 Flashcards
Source URL: https://quizplus.com/study-set/3880
Page 2
Chapter 1: Introduction to Real Estate
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45 Verified Questions
45 Flashcards
Source URL: https://quizplus.com/quiz/77312
Sample Questions
Q1) The legal term referred to as real property includes all of the following, except:
A) an unlimited use of the airspace above the property
B) that which is immovable according to law
C) the land beneath the surface to the center of the earth
D) determined by law to be a fixture
Answer: A
Q2) Which of the following is considered personal property?
A) a peach orchard
B) stock in a mutual water company
C) silver removed from the ground and sent to the smelter
D) easement
Answer: C
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Chapter 2: Part I: Legal Description, Method of Acquiring
Title , and Deeds
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69 Verified Questions
69 Flashcards
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Sample Questions
Q1) Interest in real property held by a tenant is called:
A) freehold estate
B) fee estate
C) rental estate
D) less-than-freehold estate
Answer: D
Q2) To have a valid joint tenancy, all the owner names must appear on the same document. This is known as the unity of:
A) time
B) title
C) interest
D) possession
Answer: B
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Page 4
Chapter 3: Encumbrances, Liens, and Homesteads
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40 Verified Questions
40 Flashcards
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Sample Questions
Q1) All of the following are acceptable ways to terminate an easement, except:
A) express release
B) abandonment
C) merger
D) if created by deed, it may be extinguished by non-use
Answer: D
Q2) A deeds to B and B takes possession but does not record the deed. A then tells a friend C about the deed to B. A then deeds the same property to C, who records the deed. Based on this information, title probably vests in:
A) A
B) B
C) C
D) both B and C
Answer: B
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Chapter 4: Real Estate Agency
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40 Verified Questions
40 Flashcards
Source URL: https://quizplus.com/quiz/77309
Sample Questions
Q1) A real estate broker, in order to influence a person to buy, states that the property will absolutely double in value in six months. The sale takes place and 6 months later the property has declined in value. This broker could be considered guilty of:
A) duress
B) acting in a legal manner
C) false promise
D) ostensible promise
Q2) An easement is valid for
A) ten years
B) three years
C) indefinitely
D) as long as you own the property
Q3) According to real estate licensing law, for supervising purposes, the relationship between a salesperson and a broker is:
A) fiduciary
B) independent contractor
C) employer-employee
D) ostensible
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6
Chapter 5: Real Estate Contracts and Mandated
Disclosures
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40 Verified Questions
40 Flashcards
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Sample Questions
Q1) Buyer makes a written bonafide offer to purchase, and seller signs the acceptance. A contract is first created:
A) when buyer receives proper communication of seller's acceptance
B) immediately upon seller's acceptance
C) when the buyer and seller sign escrow instructions
D) when the broker presents the offer to the seller
Q2) An owner gives ABC Realty an exclusive agency listing for 60 days. Thirty days later the owner finds a buyer and sells the property without the services of ABC Realty. The:
A) owner owes ABC Realty a commission
B) owner does not owe a commission
C) the sale is invalid
D) two of the answers are correct
Q3) A broker's commission is most likely earned when the broker:
A) secures acceptance of an offer
B) secures a substantial deposit with an offer
C) communicates acceptance to the offeror
D) communicates offer to seller
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Page 7
Chapter 6: Practical Real Estate Mathematics
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40 Verified Questions
40 Flashcards
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Sample Questions
Q1) Sellers should disclose defects in the property
A) verbally to the buyer
B) on the Transfer Disclosure Statement
C) any time prior to close of escrow
D) only to their agent
Q2) A person purchased a small condo for $320,000, putting $100,000 down and obtaining a new loan for the balance at 8.4% payable $1,800 per month amortized for 30 years. What will be the loan balance after one payment?
A) $218,200
B) $219,740
C) $221,000
D) $220,000
Q3) The law that states real estate contracts must in writing to be enforceable is called the statute of:
A) frauds
B) time
C) contracts
D) limitations
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Chapter 7: Introduction to Real Estate Finance
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34 Verified Questions
34 Flashcards
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Sample Questions
Q1) If a property had a net operating income of $24,000 and the investor wanted an 8% return, how much should he offer for the property?
A) $240,000
B) $250,000
C) $300,000
D) none of the above
Q2) In a trustee's sale, the proceeds of the sale were sufficient to pay the demands of the first and second trust deed holders, foreclosure costs, and provide a small cash surplus. What is the priority schedule for the distribution of the cash proceeds?
A) trustor; first trust deed; second trust deed; foreclosure costs
B) foreclosure costs; trustor; first trust deed; second trust deed
C) first trust deed; second trust deed; foreclosure costs; trustor
D) second trust deed; first trust deed; foreclosure costs; trustor
Q3) The loan-to-value ratio on a mortgage is defined as the:
A) loan amount as a percentage of sales price
B) loan amount as a percentage of assessed value
C) loan amount as a percentage of appraised value
D) monthly payments as a percentage of the face amount of the loan
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Chapter 8: Part I: Real Estate Lenders
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40 Verified Questions
40 Flashcards
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Sample Questions
Q1) A person who buys a note in good faith and obtains superior rights:
A) negotiable holder
B) investor holder
C) holder in due course
D) holder in present
Q2) Traditionally, the total monthly expenses should not exceed____ to ____of the borrower's gross monthly income.
A) 33%-38%
B) 33%-36%
C) 28%-30%
D) 25%-30%
Q3) Real Estate Investment Trusts (also known as REIT):
A) were created to encourage small investors to invest in real estate transactions with other small investors
B) operate in the second trust deed market
C) are usually a two year loan
D) invest in savings banks
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Chapter 9: Real Estate Appraisal
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40 Verified Questions
40 Flashcards
Source URL: https://quizplus.com/quiz/77304
Sample Questions
Q1) A secondary mortgage market is where:
A) existing lenders sell to other lenders and investors
B) a seller carries a junior trust deed
C) the supply of funds available for real estate loans is decreased
D) the Federal Reserve tightens mortgage interest rates
Q2) All things being equal, the higher the market gross rent multiplier compared to the subject property gross rent multiplier, the:
A) better the buy
B) lower the expenses
C) higher the vacancy
D) worse the buy
Q3) The essentials of value include all of the following, except:
A) age
B) utility
C) scarcity
D) demand
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Chapter 10: The Role of Escrow and Title Insurance Companies
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40 Verified Questions
40 Flashcards
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Sample Questions
Q1) Which of the following is a physical force that influences value?
A) rate of changes in population
B) income levels
C) size and shape of the parcel
D) zoning changes
Q2) Which of the following must be licensed to be an escrow holder?
A) a bank
B) an attorney
C) a trust company
D) an independent corporation
Q3) In a real estate transaction, who decides which escrow company to use?
A) The seller
B) The buyer
C) It is negotiated between the buyer and the seller
D) The real estate agent
Q4) The market approach would be given the most weight if appraising a:
A) new home
B) new apartment
C) five-year-old home
D) special purpose property
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Chapter 11: Landlord and Tenant Relations
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40 Verified Questions
40 Flashcards
Source URL: https://quizplus.com/quiz/77302
Sample Questions
Q1) Under the rental offset rules, which of the following is true? The tenant can do housing code repairs up to:
A) one month's rent, once per year
B) two months' rent, twice per year
C) one month's rent, twice per 12-month period
D) one month's rent, twice per year
Q2) The initials CPM stand for:
A) Certificate of Public Management
B) Certificate of Practical Management
C) Certified Property Manager
D) Certified Practical Manager
Q3) A tenant makes a verbal agreement, in front of several people, to lease a home for six months. Two months later the tenant notifies the landlord that he or she will be moving out next week. The lease agreement is:
A) not valid for lack of writing
B) binding although oral
C) invalid because it was for only 6 months
D) binding because it was a one-family residence
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Chapter 12: Land-Use Planning, Subdivisions, Fair Housing, and
Other Public Controls
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39 Verified Questions
39 Flashcards
Source URL: https://quizplus.com/quiz/77301
Sample Questions
Q1) Which of the following is not controlled by zoning regulations?
A) property use
B) height limits
C) deed restrictions
D) type of building
Q2) A lease on agricultural land cannot exceed:
A) 15 years
B) 37 years
C) 51 years
D) 99 years
Q3) Which of the following statements is not true in regard to the issuance of the preliminary public report on a subdivision project?
A) subdividers may take reservations for purchase pending the issuance of the final public report
B) preliminary public reports are ordinarily good for five years
C) it is canceled with the presentation of the final public report
D) it is good for only one year
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Page 14
Chapter 13: Introduction to Taxation
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39 Verified Questions
39 Flashcards
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Sample Questions
Q1) Ad valorem, is a Latin phrase that means:
A) according to value
B) buyer beware
C) and others
D) none of the above
Q2) The Subdivision Map Act is enforced by
A) the Real Estate Commissioner
B) Housing and Urban Development (HUD)
C) the local city or county
D) the Attorney General
Q3) Under certain conditions, a single homeowner may exempt up to how much in gains from the sale of a home?
A) $500,000
B) $300,000
C) $250,000
D) $125,000
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Chapter 14: Single-Family Homes and Mobile Homes
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39 Verified Questions
39 Flashcards
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Sample Questions
Q1) A property was valued at $500,000 for property tax purposes. According to Proposition 13, what would be the maximum value for property tax purposes in two years, assuming the owner did not make capital improvements?
A) $502,420
B) $504,010
C) $506,220
D) $520,200
Q2) A frequently used special assessment law is:
A) the Street Improvement Act of 1911
B) the Mello-Roos Community Facilities Act of 1982
C) Proposition 13
D) Proposition 60
Q3) Before purchasing a house, a person must decide whether to rent or buy. In considering the pros and cons, which would be considered an advantage of owning rather than renting?
A) tax deductions
B) possible appreciation
C) control
D) all of the above
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Page 16
Chapter 15: A Career in Real Estate
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39 Verified Questions
39 Flashcards
Source URL: https://quizplus.com/quiz/77298
Sample Questions
Q1) In California, the majority of the laws that regulate the real estate industry originate from:
A) Commissioner's Code of Ethics
B) legislation passed by the California Legislature
C) the Treaty of Guadalupe Hidalgo
D) the Business and Professions Code
Q2) Which of the following is a license issued by the California Real Estate Commissioner?
A) corporate real estate license
B) appraisal license
C) escrow license
D) two of the above are correct
Q3) Once an individual has been licensed by the Department of Real Estate, which of the following is considered a violation of law and/or regulation and may result in suspension or revocation of the license?
A) false promise
B) commingling of funds
C) secret profits
D) all of the above
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Page 17