part tres

105. John, a real estate agent, is involved in a dispute over a property sale. In which court will this lawsuit most likely be heard?

• a) the court of appeals.
  

• b) small claims court.
  

• c) the state supreme court.
  

• d) the state superior court.

106. John is a property inspector and he needs to determine the physical age of a house. What would be the best way for him to do this?

• a) By looking at the architectural style of the house.
  

• b) By checking the county records.
  

• c) By assessing the physical condition of the property.
  

• d) By referring to the original recorded subdivision map.

107. John, a property appraiser, is analyzing a property for a client. What should be his primary concern?

• a) The supply and demand of properties in the area.
  

• b) The functional utility of the property.
  

• c) The neighborhood where the property is located.
  

• d) The marketability and acceptability of the property.

108. John is about to sign a purchase agreement for a new house. What provision in the agreement would state the existence or nonexistence of each broker's fiduciary agency with the various parties involved in the transaction?

• a) Agency confirmation provision.
  

• b) Broker liability agreement.
  .

• c) Attorney fee provision.
  

• d) Hold harmless agreement

109. In the context of a real estate agency, which of the following actions by a broker would not be considered ethical?

• a) John, a broker, approves a policy among his staff where they keep certain property listings hidden for their personal gain, rather than for the benefit of the client.
  

• b) Sarah, a broker, maintains complete records of all property sales and listings she handles.
  

• c) Michael, a broker, resolves disputes with other brokers through mediation.
  

• d) Emily, a broker, discloses her agency relationships to all interested parties.

110. Imagine a scenario where a real estate broker, Mr. Smith, wants to delegate the authority to review purchase agreements and contracts to one of his salespersons, Mr. Johnson. What should be the minimum qualification of Mr. Johnson to be granted these supervisory powers?

• a) Mr. Johnson should have accumulated two full years' experience within the last five years.
  

• b) Mr. Johnson should have accumulated two full years' experience within the last 10 years.
  

• c) Mr. Johnson should have accumulated two full years' experience as well as two years college education.
  

• d) Mr. Johnson should have been employed by Mr. Smith for a minimum of two years.

111. John recently bought a house, but he was not informed that the house was connected to a septic tank system. In this situation, John has the right to:

• a) cancel the purchase agreement.
  

• b) request the broker's license to be revoked.
  

• c) file a lawsuit against the escrow company for wrongdoing.
  

• d) report the seller to the California Bureau of Real Estate (CalBRE) for not disclosing this information.

112. Imagine you are a real estate agent in California. One of your clients asked you why warranty deeds are rarely used in California but commonly used in other states. What would be your response?
a) Warranty deeds are prohibited in California.

• 
  a) Warranty deeds are prohibited in California.

• .b) The buyer may recover treble damages when a grant deed is used.
  

• c) Express covenants in a grant deed run with the land. Covenants in a warranty deed are personal to one particular buyer.
  

• d) Recourse against a title company under a grant deed is more effective than trying to collect from the grantor under a warranty deed.

113. Amelia owns a large estate in the countryside. She decides to deed this property to her friend Buster, but the deed is never officially recorded. Later, Amelia changes her mind and wants the property back. How can Buster transfer the title back to Amelia?

• a) By tearing up the deed and throwing it away.
  

• b) By physically handing the deed back to Amelia as a sign of re-conveyance.
  

• c) By writing "cancelled" across the face of the deed and returning it to Amelia.
  .

• d) By creating a new deed for the property.

114. Imagine you are a buyer's agent and you are preparing an offer for a client who wants to buy a home. At what point should you provide the client with the Agency Law Disclosure form?

• a) As soon as it's feasible.
  

• b) Before you take the client to view the house.
  

• c) Before you start drafting the offer for the client.
  

• d) When the escrow process begins.