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Flashcards in Quick Quiz 6 Deck (34)
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31

All of these statements are correct concerning probate sales of real property EXCEPT
A) the representative of the estate may enter into an exclusive listing with the broker with the approval of the court.
B) commissions for brokers negotiating sales are determined by the probate code according to prearranged schedules based on selling price.
C) the first bid in a probate sale must not be less than 90% of the court's appraisal.
D) an offer can be accepted by the representative of the estate with the approval of the court.

B) commissions for brokers negotiating sales are determined by the probate code according to prearranged schedules based on selling price.
The probate code does not have a prearranged commission schedule. Commissions are set at the discretion of the court. The representative of the estate may, with the court's approval, give a broker an exclusive listing, not to exceed 90 days; an offer must be at least 90% of the court's appraisal. The court may then approve the sale and set the commission.

32

The maximum amount of commission and loan costs that may be charged for a second trust deed of $4,000 for a four-year term is
A) $990.
B) $550.
C) $725.
D) $850.

A) $990.
Under Article 7, the maximum commission and fee is:
$4,000 2nd T.D.
× 0.15 (15% of the principal of a loan of three years or more)
600 Maximum commission
+ 390 (5% or $390—whichever is greater)
$ 990 Maximum commission and fees

33

An increase in the appraised value of property that is considered an unearned increment would most probably result from
A) increase in population.
B) capital improvements.
C) increase in amenities.
D) management expenses.

A) increase in population.
Unearned increment is an increase in value of real estate due to no effort on the part of the owner; it is often due to increase in population. Amenities may or may not be due to the owner's effort.

34

Under California law, it is necessary to give notice to terminate
A) None of these.
B) estate for years.
C) estate at will.
D) estate at sufferance.

C) estate at will.
Under common law, an estate at will is one that is terminable at the will or unilateral decision of either party. By statute, California has modified the abrupt conclusion of such estates and requires advance 30-day notice of termination by each party. If this question had referred to common law, the answer would have been "None of these."