A case involving questions of both federal and state law may be brought in:a.state court onlyb.federal court onlyc.state or federal courtd.a special court that is reserved for cases with mixed federal and state issues1 points QUESTION 2A change in a zoning ordinance that imposes requirements on one particular property that are different (either stricter or looser) from those that apply to surrounding properties is called:a.a rezone, and is illegalb.a rezone, and is legalc.spot zoning, and is illegald.spot zoning, and is legal1 points QUESTION 3A deed must be recorded:a.by the grantor, in the county where the grantor livesb.by the grantee, in the county where the grantor livesc.in the county where the subject property is locatedd.in the county where the grantee legally resides1 points QUESTION 4A dispute resolution method where a neutral third party facilitates discussion between parties but does not impose a decision is:a.arbitrationb.defenestrationc.mediationd.negotiation1 points QUESTION 5A federal income tax lien is a/an:a.involuntary and general lienb.involuntary and specific lienc.voluntary and general liend.voluntary and specific lien1 points QUESTION 6A government agency issues a determination of significance concerning a proposed project. This means that:a.an environmental impact assessment must be completedb.no environmental impact assessment is necessary, because the project must be modified before further action can be takenc.an environmental impact assessment has already been completed, and it recommended significant modifications to the projectd.None of the above; developers, not government agencies, issue determinations of significance1 points QUESTION 7A government takes title to a portion of a private citizen's property, in order to widen a road. In return, the government pays the owner the fair market value of the land that was taken. This occurs through what type of legal action?a.Condemnationb.Dedicationc.Eminent domaind.Escheat1 points QUESTION 8A lis pendens is a:a.delayed discovery motionb.counterclaimc.right of recoveryd.notice that a lawsuit has been filed that may affect a property's title1 points QUESTION 9A month-to-month tenancy is a type of:a.periodic tenancyb.term tenancyc.tenancy at willd.tenancy at sufferance1 points QUESTION 10A person whose water rights are based on a water permit from the state is said to have:a.appropriative rightsb.riparian rightsc.permissive rightsd.inalienable rights1 points QUESTION 11A private restriction runs with the land. This means that:a.future owners must follow the restriction only if it is mentioned in the deedb.future owners must obey the restriction even if it's not mentioned in the deedc.future owners can remove the restriction by recording a release and satisfactiond.future owners can ignore the restriction if a less-strict zoning law addresses the same issue1 points QUESTION 12A real estate agent's duty to inspect the listed property does not apply to:a.a lease with an option to purchaseb.a manufactured homec.a new home in a subdivision offered for sale for the first timed.a residential four-plex1 points QUESTION 13A real estate broker would be in violation of antitrust laws if she:a.told her agents to charge an 8% commissionb.limited her agents to certain geographical areas of townc.agreed with another broker to set commission splits at 50/50 for all transactionsd.told her agents to set commission splits of 50/50 for all in-house transactions1 points QUESTION 14A secured creditor is one who:a.has been paid in fullb.has a lien against a piece of property as security for the debtc.has loaned the debtor money based on the debtor's income and credit ratingd.will have to resort to suing the debtor for a money judgment should the debtor fail to repay the loan1 points QUESTION 15A tenant who transfers an entire leasehold estate to another party is a/an:a.sublesseeb.sublessorc.assigneed.assignor1 points QUESTION 16A variance is an exception to an area's zoning and would typically be used to allow:a.an existing business to continue operation even though the area had recently been changed to single-family residentialb.a property owner with an oddly-shaped lot to build closer to the street than would normally be allowedc.a group of developers to build an industrial park project in an agricultural zoned.a hospital, cemetery, or other needed public service to operate in an area not zoned for that use1 points QUESTION 17According to Max's deed, Max has the right to drive across his neighbor's property to access his own property. Max has a/an:a.licenseb.profitc.easementd.servient tenement1 points QUESTION 18According to state law, which of the following is a duty owed by an agent to all parties, rather than only to a principal?a.Disclosure of material factsb.Integrityc.Loyaltyd.Utmost care1 points QUESTION 19According to the imputed knowledge rule:a.the principal and agent are held liable only for what they actually knowb.if the principal or agent has information that should be communicated to the other, then each is considered to know that information, even if they don'tc.the principal is liable for what the agent knows, but the agent is not liable for what the principal knowsd.the agent is liable for what the principal knows, but the principal is not liable for what the agent knows1 points QUESTION 20After the tenant vacates a residential unit, the landlord must return the tenant's security deposit within:a.7 daysb.14 daysc.21 daysd.28 days1 points QUESTION 21All of the following will terminate an escrow, except:a.the transaction closesb.one party breaches the escrow agreementc.both parties agree to terminate the escrowd.unilateral withdrawal by one party1 points QUESTION 22All of the following may be used as sanctions by the Real Estate Commissioner in a disciplinary proceeding except:a.a fine of up to $10,000b.imprisonment for up to one yearc.permanent revocation of a real estate licensed.temporary suspension of a real estate license1 points QUESTION 23Amy owns shares of stock in the corporation that holds title to the building she lives in, and she has a long-term lease on her unit. Amy lives in a/an:a.community apartment complex (CAC)b.condominiumc.cooperatived.planned development1 points QUESTION 24An activity or conduct that interferes with a property owner's use and enjoyment of her property is considered to be a/an:a.trespassb.nuisancec.easementd.attractive nuisance1 points QUESTION 25An agency relationship is a fiduciary relationship, which means that:a.the agent occupies a special position of trust in regard to the principalb.the agent owes special legal duties to the principal that he doesn't owe to third partiesc.the agent's duty to the principal is more important than the agent's own interestsd.All of the above1 points QUESTION 26An estate of potentially infinite duration is the:a.fee simple determinableb.fee simple absolutec.freehold estated.life estate1 points QUESTION 27Ana has a contract to buy Su Ling's painting, which is by a famous artist. Su Ling changes her mind and refuses to sell the painting. If Ana sues Su Ling for breach of contract, the court may order Su Ling to fulfill the terms of the contract and sell the painting to Ana, as originally agreed. This remedy is called:a.rescissionb.specific performancec.liquidated damagesd.unjust enrichment1 points QUESTION 28At a chamber of commerce dinner party, two brokers begin discussing other local real estate agents. Broker A comments that Jim, a local salesperson, is dishonest and that Broker A refuses to do business with him. Broker B nods and says, "That's a good idea. Why should we send buyers to a dishonest agent?"a.Although questionable, the brokers are not doing anything illegal since their motivation is to protect buyersb.If the brokers put their agreement in writing, they will have violated antitrust lawsc.This conversation could be seen as an illegal conspiracy to restrain traded.None of the above.1 points QUESTION 29Broker Delgado of Main Street Realty notices that her neighbor has listed his home for sale with Steamboat Realty. Broker Delgado knows that Steamboat Realty was recently disciplined by the Real Estate Commissioner for a trust account violation, and tells her neighbor that Main Street Realty could do a much better job of selling the neighbor's home. Which of the following statements is true?a.Broker Delgado has done nothing wrong because she has her neighbor's best interests at heartb.Broker Delgado has committed a tort called commercial obstruction of businessc.Broker Delgado has committed a tort called interference with contractual relationsd.None of the above1 points QUESTION 30Broker Jones operates her brokerage business under the name Glorious Realty. She registered a fictitious business name statement for the name Glorious Realty; her real estate license is issued in her name, Tabitha Jones.a.This is legal, because she took the necessary step of registering her fictitious business nameb.Broker Jones has violated the license law; her real estate license must be issued under the fictitious namec.Broker Jones has done nothing wrong, because all she needs is a valid real estate licensed.This is legal, as long as Broker Jones uses the name Glorious Realty in all her advertising and business dealings1 points QUESTION 31Broker Lisa misreads a city zoning map and, as a result, gives incorrect zoning information to a buyer. The buyer purchases the property based on what Lisa told him about the zoning. Lisa's actions would be an example of:a.actual fraudb.constructive fraudc.deceitd.flagrant disobedience1 points QUESTION 32CERCLA's Superfund is designed to:a.pay cleanup contractors when a potentially responsible party cannot be located or avoids financial liabilityb.compensate contiguous property ownersc.pay every property buyer a small fee so they can satisfy the all appropriate inquiries requirementd.offer financial subsidies to innocent landowners of contaminated property1 points QUESTION 33California has abolished the fee simple:a.defeasibleb.absolutec.determinabled.subject to a condition subsequent1 points QUESTION 34Channeling prospective renters into specific neighborhoods based on race is an example of:a.steeringb.blockbustingc.panic sellingd.public accommodation1 points QUESTION 35Claire sues John and is awarded a judgment for $10,000. Claire lives in Rockingham County, New Hampshire; John lives in Ocean County, New Jersey, where he owns property. To create a judgment lien, Claire must:a.record a lis pendens in Rockingham Countyb.record an abstract of judgment in Ocean Countyc.record an abstract of judgment in Rockingham Countyd.None of the above1 points QUESTION 36Compared to the federal Fair Housing Act, California's Fair Employment and Housing Act contains a:a.narrower range of protected classes and fewer exemptionsb.wider range of protected classes and fewer exemptionsc.narrower range of protected classes and more exemptionsd.wider range of protected classes and more exemptions1 points QUESTION 37Each of the following must be present before an antitrust violation will be found, except:a.the existence of a monopolyb.an unreasonable restraint of tradec.a conspiracyd.an impact on competition1 points QUESTION 38In California, a successful adverse possession claim requires possession of the property for at least:a.one yearb.three yearsc.five yearsd.ten years1 points QUESTION 39In California, the sale of personal property is governed by the:a.Uniform Commercial Code (UCC)b.National Commercial Code (NCC)c.California Code of Personal Propertyd.Statute of Personalty1 points QUESTION 40In California, the statute of limitations requires that a lawsuit over a written contract be brought within ____ years of the breach.a.twob.fourc.eightd.ten1 points QUESTION 41In California, which of the following is true?a.Both civil and criminal verdicts must be unanimousb.Both civil and criminal verdicts require three-fourths of the jurors to agreec.Civil case verdicts must be unanimous; criminal case verdicts require three-fourths of the jurors to agreed.Civil case verdicts require three-fourths of the jurors to agree; criminal case verdicts must be unanimous1 points QUESTION 42In a civil case, which of the following is NOT a possible remedy?a.Monetary damagesb.Injunctionc.Rescissiond.Imprisonment1 points QUESTION 43Isabel wins a judgment for $100,000 in Kern County Superior Court. Which of the following describes the widest range of counties where she can record an abstract of judgment and create an enforceable lien?a.Kern County against any property the defendant owns in Kern Countyb.Any county in California where the defendant owns propertyc.Any county in the U.S. where the defendant owns propertyd.None of the above; the abstract of judgment should be recorded at the state capitol1 points QUESTION 44Jeff wants to put his house on the market because he wants to move to Florida. His neighbor, Helen, is a real estate agent. She finds out about his plans and drops by with interested buyers. Jeff and Helen have no agreement whatsoever, but Jeff treats Helen as if she's his agent, and never says otherwise to third parties. The potential buyers believe Helen is Jeff's agent. Jeff has given Helen:a.express authorityb.ostensible authorityc.practical authorityd.authority by necessity1 points QUESTION 45Juan grants his house to his sister, Maria, for the rest of her life. Upon her death, the property will go to his son, Guillermo. Guillermo is the:a.life tenantb.measuring lifec.remaindermand.reversioner1 points QUESTION 46Maria and Alejandro are an unmarried couple who purchase a home together. The deed to their new home does not mention how the couple is taking title to the property. In this case, the default form of co-ownership will be:a.community propertyb.joint tenancyc.tenancy in commond.tenancy in partnership1 points QUESTION 47Marsha lists her house with American Realty. Three weeks later, she finds a buyer herself. However, she still owes American Realty a commission. This is because the listing agreement was an:a.exclusive agency listingb.exclusive right to sell listingc.open listingd.oral listing1 points QUESTION 48Melissa, Sonja, and Raziyah own property as joint tenants. Sonja decides to move and sells her interest to Carlos. Which of the following is true?a.Melissa, Raziyah, and Carlos will own the property as tenants in commonb.Melissa, Raziyah, and Carlos will own the property as joint tenantsc.Melissa and Raziyah will own the property as joint tenants with respect to each other; Carlos will own the property as a tenant in commond.Carlos only has a life estate; when Sonja dies, her reversionary interest will automatically pass to the remaining joint tenants1 points QUESTION 49Mike, Lynn, and Donna own a house together as joint tenants. Donna mortgages her interest to finance her new business. Unexpectedly, she dies two weeks later. On Donna's death, Mike and Lynn:a.receive Donna's interest with the lien intactb.do not receive Donna's interest; the lienholder is the new owner of Donna's interestc.receive Donna's interest without the liend.become tenants in common1 points QUESTION 50Ming, a real estate broker, always recommends Best Mortgage to her buyers, because if she sends enough customers their way, she earns "reward points" from the company that can add up to a free trip to Las Vegas. Which statement is true?a.This arrangement violates federal lawb.This arrangement violates California lawc.This arrangement is legal, provided the broker has a good faith belief in the quality of the services provided by the mortgage companyd.Both A and B1 points QUESTION 51On May 1, Jim sells his property to Carol, who does not record the deed until May 7. On May 2, Jim sells his property to Mario (who is unaware of the previous deed to Carol) and Mario promptly records his deed that day. Which deed has priority?a.Carol's deed, because Carol was the first to purchase the propertyb.Carol's deed, because the sale to Mario is invalidc.Mario's deed, because he was the first to record his deedd.None of the above1 points QUESTION 52Part of the Fifth Amendment to the U.S. Constitution states "...nor shall private property be taken for public use, without just compensation." This is known as the:a.Due Process Clauseb.Equal Protection Clausec.Property Compensation Claused.Takings Clause1 points QUESTION 53Rights that go along with ownership of a particular piece of property are known as:a.covenantsb.appurtenancesc.personaltyd.undivided interests1 points QUESTION 54Some areas of law are addressed:a.by both state and federal lawb.primarily by state lawc.primarily by federal lawd.Any of the above may be correct1 points QUESTION 55Suppose an agent has no express authority when she commits an act that benefits the principal, but the principal approves the act after the fact. This creates an agency by:a.estoppelb.express agreementc.implicationd.ratification1 points QUESTION 56The Americans with Disabilities Act requires property owners to:a.rent a certain percentage of their units to the disabled (in residential properties with more than 4 units)b.modify their policies and procedures to accommodate the disabledc.remove unreasonable architectural, communication, and transportation barriers to disabled accessd.Both B and C1 points QUESTION 57The Real Estate Settlement Procedures Act (RESPA) prohibits:a.kickbacksb.unearned feesc.a seller requiring a buyer to use a particular title companyd.All of the above1 points QUESTION 58The ______ method of land description identifies a parcel by establishing a starting point, and then giving directions that allow a surveyor to trace around the parcel's boundaries.a.government surveyb.metes and boundsc.recorded mapd.plat map1 points QUESTION 59The boundary line between Sam's property and Rachel's property is about one foot from the back of Rachel's barn. Rachel stores several ladders, wooden pallets, and other farm equipment behind her barn, most of it resting on Sam's property. This is an example of a/an:a.public nuisanceb.encroachmentc.continuing trespassd.Both B and C1 points QUESTION 60The duty of _________ requires an agent to act ethically, to follow the rules, and to accept responsibility.a.utmost careb.integrityc.honestyd.loyalty1 points QUESTION 61The federal Endangered Species Act protects:a.endangered plants on all land in the U.S.; endangered animals only on federal landb.endangered plants only on federal land; endangered animals on all land in the U.S.c.both endangered plants and animals only on federal landd.both endangered plants and animals on all land in the U.S.1 points QUESTION 62The federal Fair Housing Act prohibits discrimination against people in all of the following categories except:a.national originb.genderc.handicapd.sexual orientation1 points QUESTION 63The federal Fair Housing Act provides exemptions for all of the following kinds of transactions except:a.the sale or rental of a single-family home by a private ownerb.a room rental in an owner-occupied residencec.any sale or rental where the owner is represented by a licensed real estate brokerd.the rental of noncommercial lodgings by a religious organization1 points QUESTION 64The greatest estate that can exist in land is the:a.fee simple subject to a condition subsequentb.fee simple determinablec.fee simple absoluted.life estate1 points QUESTION 65The listing agent must give a copy of the agency disclosure form to the seller:a.before the seller signs the listing agreementb.within three days of the seller signing the listing agreementc.within five days of the seller signing the listing agreementd.within seven days of the seller signing the listing agreement1 points QUESTION 66The lobby, swimming pool, and parking lot of a condominium complex are likely to be considered:a.limited interest fixturesb.common elementsc.shared stock featuresd.publicly owned amenities1 points QUESTION 67The person named in a will to act as the personal representative of the testator's estate is the:a.deviseeb.legateec.executord.grantee1 points QUESTION 68The right of survivorship always applies to:a.community propertyb.joint tenancyc.ownership in severaltyd.tenancy in common1 points QUESTION 69The sale or lease of a business, including the inventory, equipment, goodwill, and other assets, is the definition of a:a.lease-option transactionb.commercial property transactionc.business opportunityd.tenancy in partnership1 points QUESTION 70The standard of proof in a civil case is:a.beyond a reasonable doubtb.a mere scintilla of evidencec.a preponderance of the evidenced.Both A and C1 points QUESTION 71The state government's power to adopt and enforce laws for the protection of the public health, safety, morals, and general welfare is called:a.inverse condemnationb.police powerc.enactment powerd.power of eminent domain1 points QUESTION 72The statutory redemption period following a trustee's sale is:a.six months, if the sale proceeds were adequate to pay off the debt plus costs and interestb.three months, if the sale proceeds were adequate to pay off the debt plus costs and interestc.three months, if the sale proceeds were not adequate to pay off the debt plus costs and interestd.There is no statutory redemption period for a nonjudicial foreclosure1 points QUESTION 73There are three basic types of title insurance coverage: standard, extended, and homeowners. Unlike standard coverage, extended coverage and homeowner's coverage offer protection against a/an:a.deed with a forged signatureb.deed lacking a necessary spousal signaturec.deed signed by an incompetent grantord.adverse possession claim1 points QUESTION 74This document gives one person the authority to sign a deed or other document on another person's behalf:a.lis pendensb.power of salec.power of terminationd.power of attorney1 points QUESTION 75To be recorded, a deed must be acknowledged. A deed is acknowledged when the:a.grantee accepts the deedb.grantee signs the deedc.grantor declares before a notary public that his signature is voluntaryd.grantee declares before a notary public that her acceptance is voluntary1 points QUESTION 76To pay for maintaining and repairing common areas, a homeowners association may:a.sell stock in the associationb.impose and collect homeowner duesc.levy special assessmentsd.Both B and C1 points QUESTION 77To record a mechanic's lien, the notice of completion and the claim of lien must be:a.filed within 120 days of project completionb.served on the parties and posted on the propertyc.acknowledged and deliveredd.filed at the recorder's office in the county where the property is located1 points QUESTION 78Under CERCLA, a potentially responsible party (PRP) may include:a.the polluter, now a former ownerb.an owner who bought the property after the pollution occurred, but whose examination wasn't thorough enough to discover the pollutionc.an owner who bought the property after the pollution occurred, and whose examination uncovered the old pollution, but who allowed rain runoff to worsen the problemd.All of the above1 points QUESTION 79Under California law, a prepayment penalty on the early payoff of a residential loan can be applied only during the first:a.yearb.five yearsc.ten yearsd.None of the above; there is no limitation on prepayment penalties1 points QUESTION 80Under California law, if a subdivision has fewer than five lots, the developer only needs to file a:a.conditional mapb.final mapc.parcel mapd.tentative map1 points QUESTION 81Under state law, when property is leased without a termination date and the rental period is not specified, the rental period is determined by:a.the frequency of the rental paymentsb.the average of the other rental periods offered by the same landlordc.whatever the tenant wantsd.the total duration of occupancy for that tenant1 points QUESTION 82When a court is trying to determine if an item is a fixture, the most important common law test is the:a.adaptation of the item to the realtyb.intention of the annexorc.relationship of the partiesd.None of the above1 points QUESTION 83When a real estate broker is acting as the escrow agent in a transaction, any trust funds he receives must be placed in the hands of the principal, a neutral escrow depository, or the broker's trust account no later than:a.the same day in which they were receivedb.the next business day after receiptc.two business days after receiptd.three business days after receipt1 points QUESTION 84When do growing crops become personal property?a.Upon constructive severanceb.When the landowner sells the entire property to anotherc.When they are plantedd.At the end of the tenancy1 points QUESTION 85When the security instrument is a deed of trust, the lender is called the:a.beneficiaryb.mortgageec.trusteed.trustor1 points QUESTION 86Which doctrine states that appellate court cases establish precedents, and judges deciding subsequent cases should follow those precedents?a.Caveat emptorb.Res ipsa loquiturc.Stare decisisd.Sui generis1 points QUESTION 87Which method of land description uses a series of grids based on fixed survey markers?a.Government surveyb.Lot and blockc.Metes and boundsd.Recorded map1 points QUESTION 88Which of the following parties can be named grantee of a deed?a.A mentally incompetent senior citizenb.A minor childc.A valid corporationd.All of the above1 points QUESTION 89Which of the following is true?a.All leases must be in writing and signed by both partiesb.Leases for over a year must be in writing and signed by the lessorc.Residential leases need not be in writing, unless the security deposit is greater than the equivalent of six months' rentd.Residential leases don't have to be in writing, but commercial leases do1 points QUESTION 90Which of the following would need a real estate license?a.A mortgage loan broker who is not an employee of a financial institution or insurance companyb.A trustee under a deed of trust who conducts a foreclosure salec.An attorney who needs to sell a property in order to administer a deceased client's estated.A real estate broker's employee, who performs only clerical tasks1 points QUESTION 91Which of the following can be constructively severed from real property?a.Air rightsb.Mineral rightsc.Oil rightsd.All of the above1 points QUESTION 92Which of the following is a possessory interest in land?a.An easementb.An estatec.A liend.A restrictive covenant1 points QUESTION 93Which of the following is not always a requirement for a valid contract?a.Considerationb.Contractual capacityc.In writingd.Mutual consent1 points QUESTION 94Which of the following statements about dual agency is false?a.A dual agent may not disclose confidential information about one party to the otherb.A dual agent may reveal to the seller the maximum price the buyer is willing to pay for the propertyc.A dual agency is legal only with the written consent of both the buyer and the sellerd.Both the buyer and the seller must be informed that they will not receive full representation1 points QUESTION 95Which of the following describes a tie-in arrangement?a.Two real estate agents in a brokerage agree to work together on listingsb.A broker requires all her clients to use a certain escrow servicec.A developer won't sell builders vacant lots unless the builders agree to list the completed houses with a certain brokerd.Both B and C1 points QUESTION 96Which of the following statements about title insurance is false?a.If a problem occurs with the title, the insurer is always liable for the total amount of the insured's lossesb.The lender's policy remains in force until the loan has been paid offc.The owner's policy remains in force for as long as the buyer or her heirs own the propertyd.Title insurance requires only one premium payment, which is paid at closing1 points QUESTION 97Which of the following is NOT a type of tenancy?a.At willb.Periodicc.Termd.Concurrent