Typically, the tenant would need to remove a trade fixture prior to the end of the lease. In these flashcards, we’ll help you review some of the most important ones, helping to prepare you for the Real Estate License Test.B is incorrect. Quizlet is a flashcard website that has many real estate practice exam questions that are 100 free.Real estate operations involving financing can be difficult to understandthere are so many terms that are pertinent to financial real estate matters. We have reviewed the material and found it to be slightly better than average content that will help you study for your real estate exam. Real estate exam prep guide that delivers the most exam practice available.Nelnet Solutions provides a free 300 page real estate practice PDF that can be accessed here.Escheat, Eminent Domain, and Taxation are not part of the government's Police Power. Here, the city exercised its Police Power to enhance public health and safety-by separating the new residential area from industrial activity. Answer Choice "B" is a classic example of Police Power. The government's police power over real estate includes things like: zoning, building codes, city planning, public health, public safety, and general welfare. As real estate practice matures in California, rules and regulations need Legislated to be created to protect society from harm while allowing transactions.Control over real estate and land use by a government entity is called "public control." There are four basic governmental powers over real estate ownership and land use: Police Power, Eminent Domain, Taxation, and Escheat (Your memory aid is "PETE"). 4 Practice Tests for the California Real Estate Exam: 600 Practice Questions with Detailed Explanations pdf online will throw more light on all.
![]() After 5 years, the real estate permanently escheats and belongs to the State of California. The state can exercise its power of Escheat when a parcel of real estate has been abandoned, or if the owner dies without a will and no heir can be found. In contrast, the government would not typically have to pay owners if there is a decline in value due to a zoning change. Under the power of Eminent Domain, the government can take private property for public purposes (e.g., widening a highway), but must pay the owner of the property just or fair compensation. That's an entirely different type of "police power." C is incorrect. A Special Weapons and Tactics (SWAT) team uses specialized equipment and tactics to respond to criminal activity posing an elevated risk to the public or to law enforcement personnel. California Real Estate Practice Driver Drive PropertyAn unintended or implied agency can be created during a casual conversation where names have not been exchanged. Here, the test question states that the subject of agency representation was never discussed. An express agency is created by the oral or written agreement of both parties. By guiding the prospective buyer on the negotiation tactics needed to purchase the Woodriver Drive property, the listing broker was engaging in the advisory conduct that should be reserved for clients, thus accidentally creating an implied agency relationship.B is incorrect. One of the listing broker's duties is to counsel the seller as to a prospective buyer's ability to complete a sale. The listing broker owes the seller the disclosure of relevant and pertinent information pertaining to the listing broker's duties. Here, the agent is the listing broker and the principal is the seller. An undisclosed dual agency is illegal, and will subject the listing broker to DRE discipline and the loss of any earned commission.In CA, disclosure is a fiduciary duty owed by an agent to a principal. By advising the prospective buyer and establishing an implied agency, the listing broker created an undisclosed dual agency with the seller and the prospective buyer. This is one reason why real estate licensees do everything possible to prevent an implied agency: An implied agency can create fiduciary duties owed by the real estate professional before there is any type of agreement related to compensation.Note: The listing broker was already the agent of the seller. The self-contained report (aka the "narrative report") is the most detailed and comprehensive type of appraisal. The appraiser "summarizes" the information included in the work file of the subject property, and reports an estimate of the subject property's market value.A is incorrect. In contrast, the "disclosure of all material facts related to the property" is owed by a real estate licensee to both parties in a transaction, and does not depend on an agency relationship.The Summary Report is an appraisal with a level of detail sufficient for lenders financing either the purchase or the refinance of residential property. The fiduciary duty of disclosure is not owed to an unrepresented member of the public. Test-Taking Tip: Be careful to distinguish "the fiduciary duty of disclosure" from the "disclosure of all material facts related to the property." The "fiduciary duty of disclosure" is owed by an agent to his or her principal. Real estate licensees owe both parties to a transaction the duties of honesty, good faith, fair dealing, and a full disclosure of all material facts related to the desirability or value of the property. With some exceptions, developers of new subdivisions of 5 or more units must apply to the DRE for the Public Report. It is a disclosure statement issued by the DRE to inform the public about the new subdivision. The Public Report for new subdivisions is not a type of appraisal. The Reproduction Cost Approach would estimate how much it would cost to build an exact replica of the existing improvements, and the estimation would include-not correct-any outdated design. The estimate would include a cure for any outdated design (i.e., a cure for "functional obsolescence").B is incorrect. The Replacement Cost Approach is used to estimate how much it would currently cost to build the improvements with the same utility, using today's materials and labor skills. It involves the appraiser estimating the cost to build the improvements new, deducting for accrued depreciation, and, finally, adding the value of the land. A home inspector reports on the condition of a property's major systems and components (e.g., heating, air conditioning, electrical, plumbing, foundation, walls, insulation, etc.).This method of valuation is called the Cost Approach. A home inspection report is not a type of appraisal. There are two parties: The borrower is called the "mortgagor" and the lender is called the "mortgagee." Test-Taking Tip: The words mortgagor and mortgagee are tested on nearly everybody's state exam. The test question directs you to select a method of valuation for properties that do not produce income.A Mortgage is a security instrument, legal but infrequently used in California. The income approach is used to appraise income-producing properties. If comparables or comps aren't available, the Cost Approach is an alternative method of valuation. The owner promises not to sell the property to anyone else during the option term, and makes this promise for the nonrefundable "option fee."Test-Taking Tip: In the Deed of Trust, the borrower conveys bare legal title to the trustee. An option contract is typically between the owner (optionor) of a parcel of real estate and a prospective buyer (optionee) considering whether or not to buy the property. The option contract is not used for loans. A promissory note is not a security instrument, but an instrument that documents the terms of a contract to pay back money lent at a specified time or on demand in a financial transaction. The Deed of Trust has three parties: the trustor (borrower), the beneficiary (lender), and the trustee (third party, acting on behalf of the lender). There are two "E"s in mortgagee and lender, and two "O"s in mortgagor and borrower.A is incorrect. ![]()
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