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1. Which of the following would be used to transfer a title or interest in the trade fixtures when selling a business?

	a) A negotiable instrument.
	b) A Chattel Real.
	c) A Bill of State.
	d) None of the above

2. Richard agreed to list his property for sale with Broker Jackson. In using a standard listing form, Richards completed Paragraph 10 with the following words: “Delete provisions in Paragraph 3c above which says, Agency is hereby authorized to accept on my behalf a deposit toward the purchase price in any amount.” If Broker Jackson produced a buyer:

	a) He cannot accept a deposit from the buyer.
	b) He must get oral permission from Richards before accepting a deposit.
	c) If he accepts a deposit, he holds it as agent of the buyer until the offer is accepted by the seller.
	d) If he accepts a deposit from the buyer and the buyer rescinds the offer prior to acceptance by the seller, he is entitled to one-half of the deposit

3. Under the real estate law, certain requirements have been imposed on brokers engaged in business of negotiating mortgage loans, including the requirements of securing a borrower’s signature to a mortgage loan broker statement. The period of the time during which he must keep this statement on file for inspection is:

	a) A negotiable instrument.
	b) A Chattel Real.
	c) A Bill of State.
	d) None of the above

4. The deposit receipt contract would become enforceable:

	a) Immediately upon the buyer’s signature.
	b) Immediately upon seller’s signature of acceptance.
	c) Upon buyers being notified of seller’s acceptance.
	d) Upon closing on escrow.

5. A change in direction as used in a metes and bounds legal description referring to degrees, minutes and seconds, represent a deflection from the:

	a) South and west lines.
	b) North and south lines.
	c) East and west lines.
	d) North and east lines.

6. An offer to purchase read in part, “Buyer to pay $27,000 cash. Balance of purchase price to be paid as follows: $45,000 First Trust Deed payable in the sum of $287 per month including interest at 8-1/2% APR obtained by seller and assumed by buyer.” The seller changed the offer to read, “Buyer to pay $27,000 cash. Balance of purchase price to be paid from the proceeds of a new First Trust Deed to be obtained by buyer in the amount of $45,000.” What would be the effect of such an alteration?

	a) The broker would be entitled to collect a commission because the broker produced a ready, willing and able buyer.
	b) Such an alteration would constitute a rejection of the offer.
	c) The alteration does not have any legal effect on the offer.
	d) Such action constitutes an acceptance of the offer.

7. Under federal income tax law, the basis of property acquired by heirs as an inheritance, bequest or devise would be:

	a) The cost of the property for the deceased.
	b) The fair market value at the time it is sold or transferred.
	c) The fair market value at the time of death.
	d) The adjusted basis of the decedent before the time of death.

8. The following is not a real property security:

	a) Subordinated trust deeds on unimproved property.
	b) Three-year old purchase money second trust deed in favor of seller.
	c) Trust deeds secured by real property and guaranteed as to yield.
	d) Trust deed secured by real property if seller agrees to re-purchase in case of default.

9. Of the following, which advertising term is proper under the Federal Consumer Credit Protection Act?

	a) Assume 7-12% mortgage.
	b) Take over 7-12% annual interest rate mortgage.
	c) Assume 1-1/2% annual percentage rate mortgage.
	d) All of the above terms are proper.

10. The state sales tax due on the fixtures in the sale of a business opportunity is:

	a) Paid by the buyer to the seller together with the purchase price.
	b) Remitted by the seller to the State Board of Equalization.
	c) Paid before the Certificate of Clearance is issued.
	d) All of the above.