Real Estate Fundamentals
Question Bank
Course Introduction
Real Estate Fundamentals introduces students to the foundational principles of real estate, encompassing the legal, economic, and physical aspects of property ownership, transfer, and use. The course covers essential topics such as property rights, land use regulations, contracts, financing, valuation, brokerage, and the ethical considerations involved in real estate transactions. Through case studies and practical applications, students gain a comprehensive understanding of the real estate industry and are equipped with the knowledge necessary to pursue further studies or professional opportunities in the field.
Recommended Textbook
California Real Estate Principles 9th Edition by Dennis J. McKenzie
Available Study Resources on Quizplus
15 Chapters
624 Verified Questions
624 Flashcards
Source URL: https://quizplus.com/study-set/3880
Page 2
Chapter 1: Introduction to Real Estate
Available Study Resources on Quizplus for this Chatper
45 Verified Questions
45 Flashcards
Source URL: https://quizplus.com/quiz/77312
Sample Questions
Q1) 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
Q2) Effective January 1, 2005, a California Law called the Domestic Partnership Act was created to give ________ many new rights and responsibilities.
A) real estate agents
B) joint tenants
C) registered domestic partners
D) community property laws
Answer: C
To view all questions and flashcards with answers, click on the resource link above.
Page 3
Chapter 2: Part I: Legal Description, Method of Acquiring
Title , and Deeds
Available Study Resources on Quizplus for this Chatper
69 Verified Questions
69 Flashcards
Source URL: https://quizplus.com/quiz/77311
Sample Questions
Q1) The recording of a deed gives:
A) actual notice
B) constructive notice
C) right of possession
D) effective notice
Answer: B
Q2) A deed need not be recorded in order to be valid, but must be delivered. Effective delivery depends on:
A) valid acknowledgment by the grantor
B) physical transfer
C) intention of the grantor
D) knowledge of its existence by the grantee
Answer: C
To view all questions and flashcards with answers, click on the resource link above.
Page 4
Chapter 3: Encumbrances, Liens, and Homesteads
Available Study Resources on Quizplus for this Chatper
40 Verified Questions
40 Flashcards
Source URL: https://quizplus.com/quiz/77310
Sample Questions
Q1) A satisfaction of judgment is recorded when a:
A) sheriff's sale takes place
B) judgment is paid
C) writ of attachment is exercised
D) lien is filed
Answer: B
Q2) The landlord has come by on the first of the month to collect rent from the tenant. He notices a work on a new patio has begun, which he has not authorized. The tenant is not at home to ask about this new structure. The landlord should immediately:
A) file a mechanic's lien.
B) file a notice of cessation.
C) file a notice of completion.
D) file a notice of nonresponsibilty.
Answer: D
To view all questions and flashcards with answers, click on the resource link above. Page 5
Chapter 4: Real Estate Agency
Available Study Resources on Quizplus for this Chatper
40 Verified Questions
40 Flashcards
Source URL: https://quizplus.com/quiz/77309
Sample Questions
Q1) Which of the following best describes the requirements to acquire title by adverse possession?
A) hostile, continuous use, pay mortgage, open and notorious
B) color of title, continuous use, pay property taxes, hostile
C) permission, color of title, pay property taxes, open and notorious
D) claim of right, hostile, secret use, pay mortgage and property tax
Q2) Receiving a commission from both the buyer and seller without full disclosure and approval is called:
A) dual agency
B) single agency
C) divided agency
D) implied agency
Q3) Real estate agencies can be terminated by:
A) Completion, expiration, mutual consent, and secret profit.
B) Completion, expiration, mutual consent, and estoppel.
C) Completion, expiration, mutual consent, and death of the agent.
D) Completion, expiration, mutual consent, and with the Real Estate Commissioner's permission.
To view all questions and flashcards with answers, click on the resource link above.
Chapter 5: Real Estate Contracts and Mandated
Disclosures
Available Study Resources on Quizplus for this Chatper
40 Verified Questions
40 Flashcards
Source URL: https://quizplus.com/quiz/77308
Sample Questions
Q1) 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
Q2) A real estate agent may legally refuse to show property available for sale to a person of a minority race if the:
A) agent feels the home was not suited for the people
B) owners were out of town and had left instructions the home was not to be shown to anyone during their absence
C) owners had given specific instructions against showing the home to minority buyers
D) agent felt the buyers would not like the location
Q3) An agency may not be terminated by
A) death
B) agreement
C) expiration
D) estoppel
To view all questions and flashcards with answers, click on the resource link above.
Page 7
Chapter 6: Practical Real Estate Mathematics
Available Study Resources on Quizplus for this Chatper
40 Verified Questions
40 Flashcards
Source URL: https://quizplus.com/quiz/77307
Sample Questions
Q1) A person purchased an undeveloped piece of land on a country road. The land contains a quarter of a quarter of a quarter of a section and the front bordering the road is 435 ft. Approximately how deep is the parcel?
A) 2500 ft.
B) 4000 ft.
C) 1000 ft.
D) 835 ft.
Q2) Seller is guaranteed a $300,000 net. Seller's closing cost and existing loan total $130,000. If a broker wishes to earn a 10% commission, what must be the selling price?
A) $430,000
B) $447,095
C) $451,873
D) $477,778
Q3) From the agent's perspective, the strongest listing agreement is the
A) Exclusive Right to Sell Listing
B) Exclusive Agency Listing
C) Open Listing
D) Net Listing
To view all questions and flashcards with answers, click on the resource link above.
8
Chapter 7: Introduction to Real Estate Finance
Available Study Resources on Quizplus for this Chatper
34 Verified Questions
34 Flashcards
Source URL: https://quizplus.com/quiz/77306
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) An enforceable due-on-sale clause is correctly called a/an:
A) acceleration clause
B) alienation clause
C) wrap around clause
D) prepay clause
To view all questions and flashcards with answers, click on the resource link above. Page 9
Chapter 8: Part I: Real Estate Lenders
Available Study Resources on Quizplus for this Chatper
40 Verified Questions
40 Flashcards
Source URL: https://quizplus.com/quiz/77305
Sample Questions
Q1) For an REIT to avoid double taxation, it must distribute what percentage of its income each year to the shareholders/investors?
A) 85%
B) 90%
C) 95%
D) 100%
Q2) In a normal sale using both a grant deed and a trust deed (deed of trust), the buyer is the:
A) grantor and trustor
B) grantor and trustee
C) grantee and trustee
D) grantee and trustor
Q3) The three major credit reporting agencies are:
A) Experian, TRW, and Equifax.
B) Experian, Equifax, and TransUnion.
C) TRW, Equifax, and FICO.
D) Equifax, Experian, and Franklin.
To view all questions and flashcards with answers, click on the resource link above. Page 10
Chapter 9: Real Estate Appraisal
Available Study Resources on Quizplus for this Chatper
40 Verified Questions
40 Flashcards
Source URL: https://quizplus.com/quiz/77304
Sample Questions
Q1) Real estate appraisers are needed to:
A) determine values for real property taxes.
B) help set premiums on fire policies.
C) estimate real estate loan values.
D) all of the above.
Q2) The essentials of value include all of the following, except:
A) age
B) utility
C) scarcity
D) demand
Q3) With a gross monthly multiplier of 150, a duplex that rents one unit for $575 per month and the other for $625 should have an estimated value of:
A) $173,000
B) $176,000
C) $180,000
D) $197,000
To view all questions and flashcards with answers, click on the resource link above. Page 11
Chapter 10: The Role of Escrow and Title Insurance Companies
Available Study Resources on Quizplus for this Chatper
40 Verified Questions
40 Flashcards
Source URL: https://quizplus.com/quiz/77303
Sample Questions
Q1) The payment of closing cost is negotiated between the buyer and seller, but the seller frequently pays for the:
A) recording fee for the deed
B) documentary transfer tax
C) buyer's credit report fee
D) loan origination fee
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) A joint protection title policy insures:
A) buyer and seller
B) buyer and lender
C) buyer and broker
D) two unrelated owners
To view all questions and flashcards with answers, click on the resource link above. Page 12
Chapter 11: Landlord and Tenant Relations
Available Study Resources on Quizplus for this Chatper
40 Verified Questions
40 Flashcards
Source URL: https://quizplus.com/quiz/77302
Sample Questions
Q1) Which of the following is not exempt from the escrow licensing law?
A) trust companies
B) escrow companies
C) title insurance companies
D) real estate brokers when acting as an agent in the transaction
Q2) On behalf of the buyer and seller, the escrow officer acts as:
A) an employee
B) an independent contractor
C) an agent
D) a licensee
Q3) Title insurance rates are set by:
A) title companies
B) insurance commissioner
C) real estate commissioner
D) corporation commissioner
Q4) Title insurance does not cover publicly disclosed:
A) easements
B) zoning ordinances
C) deeds of trust
D) deeds
To view all questions and flashcards with answers, click on the resource link above. Page 13
Chapter 12: Land-Use Planning, Subdivisions, Fair Housing, and
Other Public Controls
Available Study Resources on Quizplus for this Chatper
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) State legislation gives cities and counties some control over real property in all of the following matters, except:
A) lien and attachment laws
B) local planning and zoning laws
C) land use regulations
D) rent controls
Q3) All of the following regarding housing and construction laws are true, except:
A) a person can build his or her own home without a contractor's license, but must follow housing codes
B) state housing codes are uniform throughout California
C) a major development will normally require an environmental impact report
D) a negative impact report is used when a development will have a significant impact on the environment
To view all questions and flashcards with answers, click on the resource link above. Page 14
Chapter 13: Introduction to Taxation
Available Study Resources on Quizplus for this Chatper
39 Verified Questions
39 Flashcards
Source URL: https://quizplus.com/quiz/77300
Sample Questions
Q1) Federal income taxes are referred to as a:
A) progressive tax
B) regressive tax
C) proportionate tax
D) equalized tax
Q2) An investor who has owned a property for two years and then sells for a gain most likely will pay:
A) pay capital gains taxes
B) defer the payment of taxes
C) pay only California, not federal taxes
D) not pay taxes as a sale for cash qualifies as a 1031 exchange
Q3) Which can be depreciated for income tax purposes?
A) an owner-occupied condominium unit
B) rental property
C) vacant land
D) an owner-occupied single-family residence
To view all questions and flashcards with answers, click on the resource link above.
Page 15
Chapter 14: Single-Family Homes and Mobile Homes
Available Study Resources on Quizplus for this Chatper
39 Verified Questions
39 Flashcards
Source URL: https://quizplus.com/quiz/77299
Sample Questions
Q1) Short vertical pieces of 2 x 4 above an opening are called:
A) diagonal braces
B) studs
C) cripples
D) rafters
Q2) Which of the following is true?
A) a person cannot use a homeowner's exemption and a veteran's exemption on the same home
B) real property taxes become a lien on the first Monday in March
C) a 12% penalty is added for delinquent property taxes
D) California has special property tax exemptions for senior citizens 45 years or older
Q3) The Veteran's Exemption would most likely be taken on a
A) vacation home
B) primary residence
C) rental property
D) time share
To view all questions and flashcards with answers, click on the resource link above. Page 16
Chapter 15: A Career in Real Estate
Available Study Resources on Quizplus for this Chatper
39 Verified Questions
39 Flashcards
Source URL: https://quizplus.com/quiz/77298
Sample Questions
Q1) In a business opportunity sale, the payment for continued patronage is called:
A) bulk sale
B) goodwill
C) blue sky
D) net worth
Q2) 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
Q3) A real estate licensee can sell used mobile homes provided the mobile homes have been registered with the:
A) Department of Housing and Community Development
B) Federal Housing Administration
C) Department of Veterans Affairs
D) Department of Real Estate
To view all questions and flashcards with answers, click on the resource link above.
17