California “R.E. Practice” questions Ch13-Ch15

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California: Real Estate Practice – Chapter 13 Quiz with no answers

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1 of 12 California law requires that a licensee acting as a loan broker keep the Mortgage Loan Disclosure Statement on file for how long?

A.    1 year

B.     2 years

C.     3 years

D.    4 years

Real Estate Practice

2 of 12 Which of the following statements is not true about the Federal Reserve?

A.    Regulates reserve requirements for all institutions that offer checking accounts.

B.     Supervises the Truth in Lending Act.

C.     Supervises the Federal Housing Authority.

D.    Engages in open market operations.

3 of 12 All of the following are primary mortgage market lenders except which?

A.    Investment groups

B.     Credit unions

C.     Mortgage bankers

D.    Holding warehouse agencies

4 of 12 RESPA applies to:

A.    Second mortgage on a time-share

B.     First mortgage on a single-family home

C.     Primary mortgage on an office building

D.    Settlement charges on a shopping center

5 of 12 Regulation Z applies to:

A.    $35,000 farm loan

B.     $50,000 restaurant loan

C.     $75,000 condominium loan

D.    $85,000 warehouse loan

6 of 12 The maximum commission amount a mortgage loan broker can charge on a second mortgage loan of 3 years for $18,000 is what?

A.    $900.00

B.     $1,500.00

C.     $1,800.00

D.    $2,700.00

7 of 12 Who is FNMA?

A.    Fannie Mae

B.     Ginnie Mae

C.     Fannie Mac

D.    Freddie Mac

8 of 12 Fannie Mae does all of the following activities except which?

A.    Buys conventional, FHA and VA loans.

B.     Buys pools of mortgages in exchange for mortgage-backed securities.

C.     Guarantees payment of all interest and principal on mortgage-backed securities.

D.    Administers special assistance programs.

9 of 12 When a lender is evaluating a buyer’s ability to repay a loan, the lender looks at all of these items except which one?

A.    Educational history

B.     Past credit history

C.     Present employment status

D.    Liabilities

10 of 12 Which statement is not true?

A.    Mortgage brokers do not lend money.

B.     Mortgage bankers bring borrowers and lenders together.

C.     Mortgage bankers are a large source of residential loans in California.

D.    Mortgage bankers originate loans.

11 of 12 ECOA requires that a lender send a denial notice within:

A.    30 days

B.     60 days

C.     90 days

D.    120 days

12 of 12 The amount of debt, time and method of payment, interest rate and other loan terms are part of the:

A.    Mortgage

B.     Promissory note

C.     Contract for deed

D.    Purchase agreement

Bonus ch13 questions –

1- What is the role of the Fed?
2- Explain the difference between the primary and secondary mortgage markets.
3- Differentiate between mortgage brokers and mortgage bankers. 
4- What do Fannie Mae and Ginnie Mae do that Freddie Mac does not? 
5- If lenders intend to sell mortgages in the secondary market, what must they do?
6- List the steps of underwriting.
7- What makes up a mortgage? 
8- What actions does a lender take to sell a mortgage in the secondary market? 
9- What is the basic purpose of Truth in Lending – Regulation Z? 

10- What is the right to rescind and what is not covered by this rule? 

11- What are the penalties for violating Regulation Z? 

12-What does ECOA prohibit?

California: Real Estate Practice – Chapter 14 Quiz with no answers

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1 of 10 Which item is not covered by CLTA, ALTA or ALTA-R insurance policies?

A.    Acts of minors

B.     Mining claims

C.     Forgeries

D.    Federal estate tax liens

2 of 10 Accepting referral fees:

A.    Is common business practice.

B.     Could be a violation of state licensing laws.

C.     Is permissible if being accepted on behalf of a third party

D.    Is permissible in amounts under $50.

3 of 10 Which of the following statements is NOT true regarding a broker acting as an escrow agent?

A.    A broker may advertise that he or she is an escrow agent.

B.     A broker cannot use the word “escrow” in a fictitious name.

C.     The broker must conduct the escrow personally and not delegate any escrow activities.

D.    Written escrow instructions must include a statement with the broker’s name, indicating he or she is a licensed real estate agent.

4 of 10 RESPA gives the buyer the right to review the completed closing disclosure how long before closing?

A.    Two calendar days

B.     One business week

C.     One calendar week

D.    Three days

5 of 10 RESPA applies to all of the following EXCEPT which?

A.    Condominium purchase

B.     Seller-financed loan

C.     Loan involving a second mortgage

D.    Federally-insured loan

6 of 10 Which of the following is not an item that a buyer usually pays at closing?

A.    Fee for clearing the title

B.     Mortgage recording fee

C.     Homeowner’s insurance

D.    ALTA policy

7 of 10 Which statement is not true about opening escrows?

A.    The escrow holder will need information about the broker’s commission.

B.     The escrow holder will use the purchase agreement as the basis for writing the escrow instructions.

C.     The buyer’s and seller’s agents will sign the escrow instructions.

D.    Once escrow instructions are signed, changes can only be made with the written agreement of all parties.

8 of 10 Proof of ownership of a property is called:

A.    Marketable title

B.     Abstract of title

C.     Evidence of title

D.    Title commitment

9 of 10 Who is responsible for ordering the preliminary title report?

A.    Buyer

B.     Escrow officer

C.     Seller

D.    Real estate salesperson

10 of 10 Which of these individuals could not act as an escrow agent without an escrow license?

A.    Attorney

B.     Banker

C.     Broker

D.    Real estate salesperson

Bonus ch14 questions –

1- What is escrow?
2- Who needs title insurance and why?
3- What is the difference between CLTA and ALTA policies? How does ALTA-R differ from ALTA? 
4- What items are not covered by any title insurance policy? 
5- What is the Closing Disclosure? 

6- What is the ultimate result of using the Closing Disclosure form? 

7- If an item is paid for in advance by the seller, how will it be handled on the settlement statement? 

8- What do you call those items that have been incurred by the seller but not paid, and how will they be handled on the settlement statement?

California: Real Estate Practice – Chapter 15 Quiz with no answers

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1 of 10 Gail is a licensed real estate assistant. Which of the following activities would she not be authorized to perform?

A.    Discuss a contract with a buyer.

B.     Conduct an open house on her own.

C.     Write and sign commission checks to salespersons.

D.    Meet with an inspector at a listing.

2 of 10 Assistants who are asked to be available for tasks in the field rather than in the office are referred to as:

A.    Part-time workers

B.     Field staff

C.     On-call assistants

D.    Commission-only assistants

3 of 10 Which of these items on a resume accompanying an application for an assistant’s position should be kept brief?

A.    Interests

B.     Technical skills

C.     People skills

D.    Education

4 of 10 What is a good method for an assistant to keep track of the various types of files a real estate broker must have?

A.    An ABC filing system

B.     A master transaction file

C.     A hybrid filing system

D.    A cross-referencing system

5 of 10 Which of the following would not be a reason to choose to be an assistant?

A.    To gain self-confidence

B.     To learn more about the real estate business

C.     To have a stable, steady income

D.    To make more money than a real estate agent

6 of 10 A real estate assistant:

A.    Must have a real estate license.

B.     Needs a license to perform activities that are not strictly administrative in nature.

C.     Can perform some real estate activities without a license.

D.    Must have an assistant license.

7 of 10 Which statement is not true?

A.    Sending cards and newsletters is a good way to keep in contact with clients and prospects.

B.     An assistant should never be left with the task of taking photos of a new listing.

C.     An assistant can keep track of the progress of activities during escrow.

D.    In most situations, an assistant should not have the responsibility of in-person contact with clients.

8 of 10 Which statement is true about a real estate assistant?

A.    Does not need to be familiar with office policy.

B.     Must be a full-time employee.

C.     May be an independent contractor.

D.    Must start out as a part-time employee.

9 of 10 Janet is an unlicensed assistant. She can do all of the following except which?

A.    Prepare a listing contract.

B.     File a listing contract.

C.     Gather listing forms for her employer.

D.    Prepare color flyers on listings.

10 of 10 Assistants who are hired to work part time:

A.    Work 12-15 hours per week.

B.     Get salary plus benefits.

C.     Usually get a percentage of the commission in addition to a salary.

D.    Should get workmen’s compensation.

Bonus ch15 questions –

1- What is important to know about unlicensed real estate assistants?
2- What types of office administration tasks are important for a licensed assistant to perform?
3- In what three ways can an assistant aid an agent with appointments? 
4- Why is coordinating escrow so important and how can an assistant help? 

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