>”Real Estate Practice Class” Questions with no Answers for Preview (ALL R.E. PRACTICE QUESTIONS)

California “Real Estate Practice Class” Questions with no Answers for Preview (ALL R.E. PRACTICE QUESTIONS)

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California: Real Estate Practice – Ch1 Quiz with no answers

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1 of 10 Broker Alice has hired several independent contractors in her firm. Which of the these activities does she have control over?

A.    What the licensees wear.

B.     What percent of commission the licensees can charge.

C.     How much time the licensees must spend in the office.

D.    Whether or not the licensees attend staff meetings.

2 of 10 Which of these statements is true?

A.    Salesperson Harry can solicit his own listings.

B.     Salesperson Julie can receive her commission from the cooperating broker in her latest transaction.

C.     Salespersons must perform all of their activities on behalf of their employing broker.

D.    Broker Tom has only limited responsibility for the actions of his licensees.

3 of 10 Which of the following would be an example of a licensee specializing in business type?

A.    Jim specializes in clients who want to buy restaurants.

B.     Alice knows everything about the exclusive east side neighborhoods.

C.     Tom specializes in options.

D.    Chris is a buyer’s agent.

4 of 10 Which of the following is NOT a condition of the safe harbor test?

A.    Person must be properly licensed.

B.     Gross income must be based on production.

C.     Clearly written contractor agreement must exist.

D.    Gross income must be based on hours worked.

5 of 10 Alice has decided that she will specialize in selling farm land. Which area of specialization would she fall into?

A.    Geography

B.     Type of property

C.     Business type

D.    Type of client

6 of 10 Which of the following statements is not true?

A.    A broker may require licensees to carry high levels of automobile insurance.

B.     It’s a good idea for brokers to carry workers’ compensation coverage.

C.     A broker is not responsible for the acts of independent contractors.

D.    Employee status versus independent contractor status is an IRS issue.

7 of 10 Which of the following is not a national real estate trade organization?

A.    NAR

B.     CAR

C.     NAREB

D.    AREAA

8 of 10 Which of the following circumstances would concern you about working for Broker John?

A.    John offers weekly training seminars.

B.     There are several successful agents at John’s office.

C.     John’s office has a selection of books, CDs and tapes for agent use.

D.    John expects his agents to spend 5 hours a week on unsupervised telephone duty.

9 of 10 A shopping center would be primarily categorized as what type of property?

A.    Residential

B.     Agricultural

C.     Investment

D.    Commercial

10 of 10 All of the following are true statements about goals except which one?

A.    Goals should be measurable.

B.     It’s easier to prioritize your tasks if your goals are in writing.

C.     Once you set a goal you should never change it.

D.    Goals must be realistic if you hope to accomplish them.

Ch1 bonus questions

1.      What economic factors affect the real estate market as well as other goods and services?

2.      How are properties affected by the local economy?

3.      Other than residential list three kinds of property in the real estate market.

4.      Jim has decided that he will learn all he can about the new subdivisions at the west end of town. Jim has decided to specialize in what area of real estate?

5.      From whom may a salesperson receive compensation for performed activities?

6.      What is the major difference between an employee and an independent contractor?

7.      What kinds of insurance do brokers normally require of their employees? 

8.      What should a licensee’s written employment agreement contain?

9.      Give an example of a specific short-term goal.

10.  What do you need to remember about making phone calls to potential clients?

11.  What is meant by the term “sphere of influence”? 

12.  What are members of NAR required to do? 

Ch2 – Quiz with no answers

Answers will be revealed with proper subscription

1 of 10 Which Fair Housing Law added sex to the list of protected classes?

A.    Housing and Community Development Act

B.     Rehabilitation Act of 1973

C.     Jones v. Mayer

D.    Fair Housing Amendments Act

2 of 10 Which is not a true statement about the Americans with Disabilities Act?

A.    A broker might need to change the layout of the office to make the aisles wider for clients in wheelchairs.

B.     A duplex owner might need to remodel the kitchen in the rental unit to accommodate persons with disabilities.

C.     An apartment manager might be required to allow a tenant with a disability to widen a doorway.

D.    A shopping center might have to remodel their public restrooms.

3 of 10 How long must trust account records be kept?

A.    1 year

B.     2 years

C.     3 years

D.    5 years

4 of 10 If a person believes he or she has been discriminated against, how long does he or she have to file a HUD complaint?

A.    30 days

B.     90 days

C.     1 year

D.    2 years

5 of 10 Which of the following is not a source of information for professional ethics codes?

A.    State laws

B.     Licensing regulations

C.     Real estate associations

D.    Real estate schools

6 of 10 A broker induces an owner to sell by telling him that Hispanics are moving into the neighborhood. This broker is guilty of what prohibited activity?

A.    Redlining

B.     Panic selling

C.     Steering

D.    Misrepresentation

7 of 10 If a broker receives a deposit check with a purchase contract, which of these is he not allowed to do?

A.    Deposit it directly into escrow.

B.     Give it to the principal.

C.     Deposit into the brokerage business account.

D.    Hold it with the buyer’s permission until the contract is accepted.

8 of 10 Which California Fair Housing law provides protection from discrimination by business establishments?

A.    Rumford Fair Housing Act

B.     Unruh Civil Rights Act

C.     Holden Act

D.    Fair Employment and Housing Act

9 of 10 A person who believes he or she has been discriminated against has how long from the time of the alleged violation to file a suit in a state or federal court?

A.    6 months

B.     12 months

C.     18 months

D.    24 months

10 of 10 Which of these is not an exemption to fair housing law?

A.    Senior housing for residents 62 or older

B.     A religious organization providing housing to members only

C.     The sale of a single-family home by an owner who owns five residences

D.    Rental of a unit in an owner-occupied four-family flat

Bonus Ch2 questions

1. Why is it important for licensees to understand the Americans with Disabilities Act?

2. Alex Jones owns a duplex and lives in one unit. He refuses to rent the other unit to families with children. What would you say about Alex’s actions?

3. If a person feels like he or she has been discriminated against, how long does that person have to file a complaint?

4. Salesperson Sally tells her senior citizen buyers that the home they want to view is located in a neighborhood with several small children and loud teenagers. She tells them they would not be comfortable in this home and she shows them a list of homes in other neighborhoods she thinks would be more appropriate. What would you say about Sally’s behavior? 

California: Real Estate Practice – Ch3 – Quiz with no answers

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1 of 10 Which of the following types of agency is not allowed in California?

A.    Dual agency

B.     Buyer’s agency

C.     Single agency

D.    Designated agency

2 of 10 Which of the following is not a fiduciary duty an agent owes to his or her principal?

A.    Loyalty

B.     Confidentiality

C.     Accountability

D.    Blind obedience

3 of 10 When must a listing agent present the Disclosure Regarding Real Estate Agency Relationships to the seller?

A.    Prior to bringing an offer to purchase.

B.     Prior to accepting the listing.

C.     As soon as possible.

D.    Prior to conducting any showings.

4 of 10 Timeshare buyers have the right to rescind a transaction within what timeframe after signing the purchase contract?

A.    1 day

B.     3 days

C.     7 days

D.    Never

5 of 10 The principles of an agency relationship include all of these factors except which one?

A.    Mutual consent

B.     Authorization

C.     Compensation

D.    Fiduciary duties

6 of 10 Which booklet is not part of the Combined Hazards Book?

A.    The Residential Environmental Hazards Guide

B.     Protect Your Family From Lead In Your Home

C.     The Homeowners Guide to Earthquake Safety

D.    Consumer Guide to Disclosure for Buyers

7 of 10 Which disclosure form gives detailed information about the property’s condition?

A.    Real Estate Transfer Disclosure Statement

B.     Agency Disclosure

C.     Natural Hazard Disclosure Statement

D.    Mello-Roos Report

8 of 10 Which disclosure is required by the Real Estate Settlement Procedures Act?

A.    Good faith estimate

B.     Rights regarding discrimination

C.     Transfer of the loan collection

D.    All of the above

9 of 10 Agent Paul is bound to inform his client of all facts that might affect the client’s interests — both what Paul knows and what he “should have known.” Which of these situations would not be something Paul “should know”?

A.    There is a crack in the basement wall.

B.     The owner of the property is HIV positive.

C.     The air conditioner does not work.

D.    The casement windows have broken seals.

10 of 10 If an agent does not comply with the requirement of conducting a visual inspection of a property, how long after possession does the buyer have to file a suit?

A.    6 months

B.     12 months

C.     24 months

D.    36 months

Bonus ch3 questions –

1- When is an agency relationship created?
2- What exception exists to the duty of obedience when working with a client?
3- An agent’s fiduciary responsibilities to a client usually end when the transaction closes. This is not true of which duty?
4- Amanda calls broker Tim to schedule a showing of one of his listings. Amanda loves the home and wants to make an offer. What should Tim do next? 
5- When must a licensee provide an agency disclosure to a prospective client?
6- What is the Real Estate Transfer Disclosure Statement and who is responsible for providing it?
7- Agent Jim needs to do a visual inspection of his listing. What kinds of things should he be looking for? 
8- Why should agent Grace give her client a Combined Hazards Book? 
9- What required disclosure is a result of Megan’s Law?
10- Which disclosures are NOT required to be made when selling residential property?
11- What is a public report and when must it be provided? 
12- What does TRID require of lenders? 

California: Real Estate Practice – Ch4 – Quiz with no answers

answers will be revealed with proper subscription

1 of 10 All of the following are good newspaper sections to read for prospecting except which?

A.    Obituary column

B.     Classified rental ads

C.     Business section

D.    Special announcements

2 of 10 Developing a prospecting plan is similar to:

A.    Establishing goals.

B.     Developing an earnings statement.

C.     Setting a training schedule.

D.    Writing a meeting agenda.

3 of 10 Which of the following is not a legal notice that can provide a listing lead?

A.    Death notice

B.     Vacancy

C.     Divorce

D.    Tax delinquency

4 of 10 All of these are true of prospecting except:

A.    It can provide a steady stream of future clients.

B.     It helps to identify buyer and seller needs.

C.     It keeps your name in front of potential buyers and sellers.

D.    It guarantees sales.

5 of 10 Prospecting:

A.    Only needs to be done periodically.

B.     Is critical to your success in real estate.

C.     Is helpful but not necessary.

D.    Is best left to experienced brokers.

6 of 10 Which of the following is not a probable reason for a listing to expire without selling?

A.    No open houses

B.     Needs repair

C.     Not properly priced

D.    Not marketed correctly

7 of 10 How might probate information help in prospecting?

A.    Gives the names of lawyers who might require property assistance.

B.     Allows the agent to determine community market trends.

C.     Shows property addresses that should be excluded from prospecting.

D.    Provides the names of individuals who may want to sell inherited property.

8 of 10 Which of the following is a good direct mail technique?

A.    Self folding mailer.

B.     Use self-folding mailers.

C.     Print postage labels from your computer.

D.    Hand address the envelopes.

9 of 10 Which of the following statements is not true?

A.    Retired persons are a good source of neighborhood information.

B.     You can use a reverse telephone directory to get the names of residents.

C.     Knocking on doors never requires special permits.

D.    Visiting a neighborhood with a co-worker could make you feel more comfortable.

10 of 10 Which of these Internet pages might be of particular interest to sellers?

A.    Staging a home

B.     Inspection tips

C.     List of sold homes

D.    All of the above

Ch4 Bonus questions

1- What do you need to check if you want to conduct a door-to-door canvass in a neighborhood? 
2- Name one advantage and one disadvantage of telephone contacts. 
3- What is a good approach to use when contacting the owner of an expired listing? 
4- What are the major areas of newspaper leads? 
5- What kind of newspaper ad could you place to solicit a listing?
6- List four sections of an Internet website that might be of particular appeal to prospective buyers.
7- How can a builder help you generate leads? 
8- Why is it important to have a written prospecting plan? 
 

California: Real Estate Practice – Ch5 – Quiz with no answers

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1 of 10 What form can an agent use to show a seller what he or she will net on the sale of the property?

A.    Statement of Closing Costs

B.     Competitive Market Analysis

C.     Sale Price Disclosure

D.    Estimated Seller Proceeds

2 of 10 A competitive market analysis contains information about all of the following items except which?

A.    Currently listed homes

B.     Recently sold homes

C.     Recently remodeled homes

D.    Similar expired listings that didn’t sell

3 of 10 A listing presentation can be compared to:

A.    A training session

B.     An employment interview

C.     A practice closing

D.    A sure sale

4 of 10 All of the following are benefits of listing with an agent except which?

A.    Preparation of an appraisal of the property

B.     Help during escrow

C.     Qualification of buyers

D.    Help with required forms and disclosures

5 of 10 How many properties should be included for comparison in a competitive market analysis?

A.    Two properties in each category

B.     Five current listings — three recently sold and two expired

C.     A minimum of three properties in the recently sold category

D.    Twelve properties total

6 of 10 Which of the following is not a true statement?

A.    Buyers looking at FSBO homes are usually looking for a bargain.

B.     FSBO sellers believe they will save money if they sell themselves.

C.     FSBO sellers who list with an agent will pay their own advertising costs.

D.    Buyers of FSBO homes are usually the ones who save money.

7 of 10 A presentation manual:

A.    Should be professionally produced.

B.     Can be used in place of a verbal presentation.

C.     Is not necessary if the verbal presentation is strong.

D.    Lends good visual support to what the agent is saying.

8 of 10 Which of the following will give you comparative market data the fastest?

A.    Multiple listing service

B.     County records

C.     Company files

D.    Title companies

9 of 10 Which of the following items would not usually be included in a presentation manual for buyers?

A.    Documents showing your affiliations with real estate organizations.

B.     Services offered to buyers.

C.     Your plan for finding the buyer a home.

D.    A list of former client references

10 of 10 A competitive market analysis is an attempt to:

A.    Find things in the home a seller needs to repair.

B.     Establish a home’s fair market value.

C.     Discover why some homes haven’t sold.

D.    Convince a seller to list with you.

Ch5 Bonus questions

1- What is a competitive market analysis?
2- When looking at homes currently for sale, what is important for a prospective seller to know about asking price?
3- When preparing a competitive market analysis, what categories of homes should an agent research? 
4- What is a good method for estimating what a seller will net from the sale of the property? 
5- Your listing presentation manual should be made up of two sections that address what issues?
6- What is the main reason sellers choose to sell their property without an agent’s help?
7- Name three benefits of listing a home with an agent that you could share with sellers. 
8- What is an important issue for potential buyer clients to understand? 

Ch6 – Quiz with no answers

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1 of 10 The Lead-Based Paint Disclosure is required for homes built:

A.    Before 1978

B.     Before 1976

C.     After 1980

D.    After 1975

2 of 10 Which of these documents is for sellers only and not for buyers?

A.    Smoke Detector Statement of Compliance

B.     Real Estate Transfer Disclosure

C.     Residential Listing Agreement

D.    Seller’s Affidavit of Nonforeign Status and/or California Withholding Exemption

3 of 10 Which of the following forms is non-standard and should be prepared by a broker to give to sellers?

A.    Natural Hazards Disclosure

B.     Water Heater Compliance

C.     Estimated Seller’s Proceeds

D.    Defective Furnaces in California

4 of 10 Which is true of an exclusive-authorization-to-acquire-property agreement?

A.    The buyer must pay the broker a commission.

B.     The broker will owe fiduciary responsibilities to the seller as well as the buyer.

C.     It must specify a definite termination date.

D.    Commission is never involved.

5 of 10 All of the following are valid listing agreements. Which one is illegal in many states?

A.    Exclusive agency.

B.     Open.

C.     Exclusive-right-to-sell.

D.    Net.

6 of 10 In the listing agreement, a seller can choose to decline/disapprove all but which of the following items?

A.    Sign in yard

B.     Broker compensation to other brokers

C.     Posting to MLS

D.    Lockbox

7 of 10 When the broker and seller agree that the broker can receive commission for a specified number of days after the listing expires if selling to a “named” party on a list, it’s referred to by what term?

A.    Security clause

B.     Non-penalty clause

C.     Safety clause

D.    Effective period

8 of 10 Which kind of listing gives one broker the right to sell, but allows the owner to sell the property and not owe a commission to the broker?

A.    Non-exclusive agency

B.     Exclusive agency

C.     Exclusive-right-to-sell

D.    Net

9 of 10 An agent must give a copy of the listing agreement to the sellers:

A.    At the time the agent presents an offer.

B.     At the time the agreement is signed.

C.     When the seller pays commission.

D.    After the agent has had time to make copies at the office.

10 of 10 Which of the following statements is not true about a net listing?

A.    Sets a limit on the commission a broker can earn.

B.     Is generally viewed as unprofessional.

C.     Is illegal in many states.

D.    Allows a broker to have as a commission anything above the minimum the seller sets.

Ch6 Bonus questions

1- What is an important thing to remember about listing agreements? 
2- Describe an open listing. 
3- What is the major difference between an exclusive-authorization-and-right-to-sell listing and an exclusive-agency listing? 
4- What is the agreement that a broker can enter into with a buyer? 
5- What does the safety clause in the listing agreement do?
6- What does the security and insurance clause of the listing agreement address?
7- What does the paragraph in the listing agreement titled “Entire Contract” deal with? 
8- What does the Water Heater Statement of Compliance address? 
 

California: Real Estate Practice – Ch7 – Quiz with no answers

Answers will be revealed with proper subscription

1 of 10 Which of the following actions by an agent would most probably upset the sellers?

A.  Conducting an agent open house.

B.  Sending a weekly activity report.

C.  Sharing all visitor comments two weeks before the listing ends.

D.  Placing a classified ad in the weekend paper.

2 of 10 All of these statements are true except which one?

A.  Virtual tours are a very expensive marketing tool to use.

B.  An agent should print off a copy of the listing on the company’s Internet site to send to the sellers.

C.  Participation in the MLS increases a licensee’s inventory.

D.  Property evaluations from other agents have valuable information for sellers.

3 of 10 All of these items are important to include on your weekly activity report except which?

A.  Number of calls that week

B.  Agent comments about the property

C.  Classified ads placed on the property

D.  Number of hits on the company website

4 of 10 If someone shows up at the sellers’ door unexpectedly to see the home, the sellers should:

A.  Tell them to call your office.

B.  Invite them in and show them around.

C.  Take their names and call your office.

D.  Ask them to leave.

5 of 10 You should try to attach a rider strip to your For Sale sign that has:

A.  Your home telephone number.

B.  Your GRI designation.

C.  Your cell phone number.

D.  Your fax number.

6 of 10 If there is no interest in the property on a given week, the agent should:

A.  Skip the activity report for that week.

B.  Share that information with the sellers.

C.  Tell the sellers you expect an offer to be coming soon.

D.  Tell the sellers it’s time to reevaluate the price.

7 of 10 Which of these forms is not filled out by the seller?

A.  Smoke Detector Compliance

B.  Modification of Terms

C.  Transfer Disclosure Statement

D.  Water Heater Compliance

8 of 10 Which of these marketing tools is not considered a traditional tool?

A.  Flier

B.  Classified ad

C.  Photos

D.  Video tour

9 of 10 Which of these is not a helpful homeowner tip?

A.  Display lots of family photos to impress potential buyers.

B.  De-clutter your garage and basement.

C.  Bake muffins or cinnamon rolls to create a “homey” feel.

D.  Make sure all light bulbs and lamps are working and are bright.

10 of 10 All of these activities are appropriate to do within the first few days of obtaining a listing except which?

A.  Give the sellers a copy of some homeowner’s tips.

B.  Discuss modifying the listing price.

C.  Explain your marketing plan to the sellers.

D.  Have the broker send a “thank you for listing” letter to the sellers.

Ch7 Bonus questions

1.  What is the primary criticism that sellers have about their agents?

2.  When you meet with your sellers after you obtain the listing, what is one of the first things you should share with them to get them involved in the process?

3.  What kinds of things should you include in a weekly activity report? 

4.  How can you prepare your sellers for receiving offers? 

5.  Name four traditional marketing tools that you should use with every listing you get. 

6.  What are some important tips for home tours? 

7.  In addition to agent and MLS home tours, what are some other ancillary tools you can use? 

8.  What should you keep in mind when developing your marketing plans?

California: Real Estate Practice – Ch8 – Quiz with no answers

Answers will be revealed with proper subscription

1 of 10 Which of these statements is not true?

A.    Radio advertising is not as effective as other methods because listeners can be distracted by their activities and not hear the ads.

B.     Newsletters can be a very effective advertising forum for niche marketers.

C.     Advertising in the telephone directory is cost effective because the directories can reach every home in the marketing area.

D.    Magazine ads are significantly more expensive than newspaper ads.

2 of 10 Which of these is not an AIDA characteristic?

A.    Interest

B.     Attention

C.     Desire

D.    Activity

3 of 10 What kind of ad usually combines both institutional and product advertising?

A.    Classified

B.     Display

C.     Press release

D.    Television

4 of 10 An unlicensed person engages in advertising that conveys the clear impression that he is a licensed real estate broker or is an officer or employee of a corporation who knowingly advertises a false statement concerning any land or subdivision. In this scenario, which of the following is not true?

A.    The advertiser is subject to a fine.

B.     The advertiser can be sentenced to up to a year in prison.

C.     The person is breaking the law.

D.    The advertiser must prove he was grandfathered in as a licensee.

5 of 10 All of these would be effective at capturing a reader’s attention except which?

A.    Use as little white space as possible.

B.     Use a question as a headline.

C.     Use available color.

D.    Make the headline bold and all caps.

6 of 10 Which of these is not a tool to help evaluate advertising effectiveness?

A.    Telephone log

B.     Code in a print ad

C.     Advertising budget

D.    Designated telephone number

7 of 10 Which kind of advertising aims at increasing sales by informing the public of a company’s capabilities?

A.    Operational

B.     Institutional

C.     Product

D.    Classified

8 of 10 Which of these is a free form of advertising?

A.    Shopping guides

B.     Telephone directory

C.     Press release

D.    Blind ad

9 of 10 Which of these words or phrases might be considered discriminatory when used in advertising?

A.    No smoking

B.     Couples only

C.     Handicap accessible

D.    Kids welcome

10 of 10 The cost of doing direct mail advertising depends on all of these things except which?

A.    How you target your audience

B.     The frequency of the mailings

C.     The number of pieces you send

D.    The date of the mailing

Bonus ch8 questions

1.      Name and define the two forms of advertising.

2.      Explain the method used to write good advertising.

3.      What is important to remember about capturing the reader’s attention? 

4.      What do many firms do to avoid confusion with their advertising plan? 

California: Real Estate Practice – Ch9 – Quiz with no answers

Answers will be revealed with proper subscription

1 of 10 All of these questions could help you determine a prospect’s capacity to make a purchase except which one?

A.    How much do you have in your savings account?

B.     Have you been pre-qualified or pre-approved by a lender yet?

C.     Do you need the equity from your current home for the new home purchase?

D.    Where do you and your spouse work?

2 of 10 Which of these is not a good technique to get the name of a caller who is reluctant to give you that information?

A.    Offer to mail the caller a set of fliers on interesting properties.

B.     Ask the caller if he or she would like to receive e-mails on newly listed properties.

C.     Offer to show the caller a newly-listed, not-yet-advertised property, even if one doesn’t exist.

D.    Offer to call the prospect when new listings that meet his or her criteria come on the market.

3 of 10 Sara just bought her first new home. She put 20% down and got a mortgage for the remainder. The difference between what Sara owes and what her home is worth is known as what?

A.    Principal

B.     Capital gain

C.     Replacement cost

D.    Equity

4 of 10 Which of the following would be the least desirable phone handling technique?

A.    Answer a question with a question when possible.

B.     Give as much detailed information about the property as you can.

C.     Ask the caller “when” not “if” he or she wants to see the property.

D.    Arrange to meet the prospect at your office.

5 of 10 Which of these statements is not true about qualifying buyers?

A.    You’ll know how much house they can afford.

B.     Lenders are in the best position to qualify buyers.

C.     Sellers are apt to choose qualified buyers over ones who have not been qualified.

D.    Collecting information and pre-qualifying buyers yourself is the easiest and best approach.

6 of 10 A buyer calls your office to inquire about a property he saw advertised. He sounds really excited about this property. Where is it that he likely found out the property was for sale?

A.    On the Internet

B.     In a classified ad

C.     From the For Sale sign

D.    From a direct mail flier

7 of 10 Most buyers who see a newspaper ad that interests them:

A.    Drive by the property.

B.     Call your office.

C.     Check out your Internet site.

D.    Visit your office.

8 of 10 Which of the following is not an advantage of home ownership?

A.    Increase in property value

B.     Increase in equity

C.     Repairs and maintenance

D.    Tax deductions

9 of 10 A reference list of alternative comparable properties is sometimes referred to as the:

A.    Cheat sheet.

B.     Telephone answering register.

C.     Switch sheet.

D.    Alternative list.

10 of 10 Prospects Jim and Linda arrive with agent Bill at the first showing. When Bill pulls in front of the home, Linda decides immediately that she doesn’t want to see the inside. What should Bill do?

A.    Tell Linda that the sellers will be very disappointed if they cancel the appointment.

B.     Launch into your list of the home’s special features and hope she changes her mind.

C.     Emphasize that this home is a great buy and it would be a shame for them to dismiss it without looking first.

D.    Call the sellers immediately and let them know you won’t be coming by.

Bonus ch9 questions –

1- What is the most important factor for a prospective homebuyer to consider in the decision to purchase?
2- What is floor time and why is it important?
3- When handling a telephone inquiry, why should you limit the amount of information you give out about the property? 
4- Agent Greg receives a call about one of his firm’s ads. He succeeds in setting up an appointment to meet with the caller. What approach can Greg use to discourage the person from calling other agents? 
 

California: Real Estate Practice – Ch10 – Quiz with no answers

Answers will be revealed with proper subscription

1 of 10 All of the following are good approaches for handling objections except which?

A.    View an objection as the buyer’s request for more information.

B.     Use the “yes-but” technique to handle the objection.

C.     Ask the buyer more questions.

D.    Tell the buyer it’s not an issue.

2 of 10 Offering a buyer more than one option and having him or her choose is using what kind of closing technique?

A.    Bonus

B.     Alternative

C.     Ownership

D.    Standing-Room-Only

3 of 10 Which paragraph of the purchase agreement states that if the buyer defaults after acceptance, he or she may be liable for the broker’s commission?

A.    Terms and conditions of offer

B.     Final Verification of Condition

C.     Dispute resolution

D.    Liquidated damages

4 of 10 Which of these is not an important aspect of selling?

A.    Establishing buyer rapport

B.     Knowing your inventory

C.     Giving buyers your opinion of what works best for them

D.    Handling objections

5 of 10 What would be the least effective way to get to know your buyers’ needs?

A.    Ask closed-ended questions.

B.     Listen carefully to everything your prospects say and repeat some specifics back at appropriate times so that they know you have heard what they said.

C.     Watch actions and body language.

D.    Ask open-ended questions.

6 of 10 Which of these is an emotional reason that buyers buy property?

A.    Tax advantages

B.     Status

C.     Investment

D.    Schools

7 of 10 Which paragraph of the purchase agreement must be initialed by both buyers and sellers for it to apply?

A.    Final Verification of Condition

B.     Removal of contingencies

C.     Liquidated damages

D.    Buyer indemnity and seller protection

8 of 10 What does the paragraph on repairs state?

A.    The buyer must make all repairs.

B.     If checked, the seller can complete repairs after closing.

C.     The seller can do all repairs himself.

D.    All repairs must be in compliance with existing building codes.

9 of 10 All of these might be a buying signal except which?

A.    Taking room measurements.

B.     Asking about a possession date.

C.     Moving closer to the agent to get a better look.

D.    Walking through the home quickly.

10 of 10 Agent Jim tells his buyers that the seller will leave the riding lawn mower if the buyers make an offer now. What kind of closing technique is Jim using?

A.    Assumptive

B.     Alternative

C.     Bonus

D.    Ownership

Bonus ch10 questions

1- What are the five aspects that are involved in any selling approach?
2- When establishing rapport, what’s one of the best ways to get to know your buyers?
3- What signals do buyers use to indicate they may be willing to make a purchase? 
4- What’s a bonus closing and what’s important to keep in mind about this technique? 
5- Why is it important for the buyers to indicate whether or not they intend to occupy the property?
6- What’s important to know about the Liquidated Damages paragraph?
7- What happens if the parties do not initial the section of dispute resolution that deals with binding arbitration? 
8- Which section of the purchase agreement does not apply directly to the buyers and sellers? 
 

California: Real Estate Practice – Ch11 – Quiz with no answers

Answers will be revealed with proper subscription

1 of 10 When you receive an offer on a listing for less than asking price, you should not:

A.    Study the other terms of the offer so that you can maximize the offer’s benefits and minimize the lower price.

B.     Set up a face-to-face meeting with the sellers as soon as possible.

C.     Prepare additional documentation to take to the presentation.

D.    Give the sellers the price over the phone so that they can think about it before you meet with them.

2 of 10 When presenting information about the buyers to the sellers, which piece of information might not be useful in helping the sellers make a decision?

A.    The buyers’ family is pressuring them to purchase this home.

B.     The buyers have been pre-qualified by a lender.

C.     The buyers are interested in another property.

D.    The buyers love the landscaping improvements the sellers have made.

3 of 10 Jake has received two offers on one of his listings. The home is listed at $210,000. One offer is for $208,000; the other is for $200,000. What should Jake do?

A.    Present the $208,000 offer today and wait for a response from the sellers before he presents the other offer.

B.     Present the $200,000 first and recommend rejection. Then present the $208,000 offer.

C.     Present the $208,000 offer and the $200,000 offer together at the same presentation meeting.

D.    Hold both offers because he heard that a full-price offer is on its way.

4 of 10 Once an offer has been accepted, the agent should do all of the following except which?

A.    Make sure all required disclosures have been done.

B.     Attend the final walkthrough.

C.     Be sure all requested inspections have been ordered.

D.    Meet with the buyers’ lender to ensure they’re getting a good deal.

5 of 10 Which of these is not a true statement?

A.    A purchase offer is a binding contract between the buyer, the seller and their agents.

B.     If a seller changes the terms of the offer to purchase, he has created a counteroffer.

C.     An offer or counteroffer can be withdrawn at any time before it has been accepted.

D.    Once the offer or counteroffer is accepted and the offeror has been notified, a legal contract is formed.

6 of 10 Who typically presents an offer to the sellers?

A.    Selling broker

B.     Listing agent

C.     Listing broker and selling broker

D.    Selling agent

7 of 10 Which of these is not a good thing to do when writing a counteroffer?

A.    Fill out a separate, numbered counteroffer form.

B.     Rewrite whole paragraphs to ensure clarity.

C.     Date and attach supporting documents.

D.    Exert pressure on the sellers to include something the other party wants.

8 of 10 Which of these statements about counteroffers is not true?

A.    A counteroffer represents a rejection of an offer.

B.     A counteroffer by a seller to a buyer turns the seller from offeree to offeror.

C.     A counteroffer can give the buyers an “out” if they want one.

D.    If the buyer rejects the first counteroffer, the seller can accept the first offer.

9 of 10 When you believe an offer is both fair and reasonable but it does not meet the sellers’ asking price, you should:

A.    Make no recommendations and let the sellers decide on their own.

B.     Recommend a counteroffer back to list price.

C.     Work toward acceptance.

D.    Recommend that the seller delay response to make the buyer nervous and then submit a counteroffer.

10 of 10 Most sellers object to offers based on:

A.    Closing issues

B.     Offering price

C.     Financing issues

D.    Contingencies

Bonus ch11 questions –

1- When preparing to present an offer to the sellers, what kinds of supporting information can be helpful?
2- What is important to remember about multiple offers?
3- When making your presentation, what topics should you cover? 
4- Why is it important to talk to the sellers about the buyers? 
5- What actions can the sellers take regarding the purchase offer?
6- What is important for the sellers to know about a counteroffer?
7- Ben and Blanche receive a $200,000 offer on their home, which is listed at $208,000. They were counting on a full-price offer and are very disappointed. What approach can their agent take to change the sellers’ perception of the offer? 
8- When does a purchase offer become a legal contract? 
 

California: Real Estate Practice – Ch12 – Quiz with no answers

Answers will be revealed with proper subscription

1 of 11 A growing equity mortgage:

A.    Is an adjustable rate loan.

B.     Allows quick repayment of the loan through accelerated payments.

C.     Includes a margin.

D.    Has a payment cap.

2 of 11 Which statement is true?

A.    A borrower cannot qualify for a conventional loan unless he or she can make a 20% down payment.

B.     Private mortgage insurance is available for FHA loans.

C.     A borrower can request the cancellation of PMI payments when the equity reaches 20% of the appraised value.

D.    A lender can continue to collect PMI payments until the homeowner’s equity reaches 25%.

3 of 11 Which loan covers the period of time between the end of one mortgage and the beginning of another?

A.    Construction

B.     Wraparound

C.     Open-end

D.    Bridge

4 of 11 Which of these is also called a contract for deed?

A.    Purchase money mortgage

B.     Lease purchase

C.     Second mortgage

D.    Installment land sales contract

5 of 11 Which of these statements is true about a CalVet loan?

A.    Loan terms are from 15 to 25 years.

B.     If the loan is VA guaranteed, no down payment is required.

C.     There is a 6-month pre-payment penalty for paying off the loan early.

D.    Interest rates are typically fixed rate.

6 of 11 Which of the following is not true about reverse annuity mortgages?

A.    The lender makes payments to the borrower.

B.     This mortgage type is popular among the elderly.

C.     The borrower pays a fixed rate of interest.

D.    The loan must be repaid before the borrower’s death.

7 of 11 In which of the following types of loans is the payment allocated only to interest?

A.    Straight

B.     Balloon

C.     Amortized

D.    Adjustable rate

8 of 11 A blanket mortgage:

A.    Covers more than one piece of property.

B.     Entails entering into two agreements simultaneously.

C.     Is subordinate to a first mortgage.

D.    Reduces the monthly payment for a borrower during the initial years.

9 of 11 Lenders can charge all of the following except which fee when a borrower gets a loan?

A.    Loan origination fee

B.     Points

C.     Survey fee

D.    Discount points

10 of 11 Mark gets a home loan and the lender will charge him 3 points at closing. If the loan is for $68,000, what will Mark be assessed in points?

A.    $680

B.     $1,360

C.     $2,040

11 of 11 Which of the following is a low loan-to-value ratio?

A.    Jake is getting a VA loan with no down payment.

B.     Sandy and Bill are putting 30% down on their home purchase.

C.     Alice is getting a conventional loan and making a 15% down payment.

D.    Tim and Gail have qualified for an FHA loan.

Bonus ch12 questions –

1- How much is the loan origination fee and what does it cover?
2- What kind of problem can result from a straight loan?
3- What kinds of limits are placed on the interest rate in an adjustable rate mortgage? 
4- Describe a reverse annuity mortgage. 
5- Define the term loan-to-value ratio.
6- When is a lender required to terminate a borrower’s private mortgage insurance?
7- What is the difference between an FHA loan and a VA loan? 
8- What is the major difference between a CalVet loan and other loans? 
9- Define a purchase money mortgage.
10- What’s the difference between a lease purchase and a lease option?
11- Greg and Joyce purchased a home from the builder who offered to pay $5,000 at closing as an incentive to get them to buy. What kind of mortgage might they get? 
12- What are grant programs typically used for? 
 

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

Answers will be revealed with proper subscription

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

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

Answers will be revealed with proper subscription

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

Answers will be revealed with proper subscription

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? 
 

California: Real Estate Practice – Chapter 16 Quiz with no answers

Answers will be revealed with proper subscription

1 of 10 ‎According to FIRPTA, what percent would a buyer who is buying the property as a personal residence need to withhold when purchasing a $‎200‎,‎000 ‎home from a foreigner?‎

A.    0%

B.     15%

C.     3.30%

D.    10%

2 of 10 How long must buyers and brokers keep the documentation on a foreign sale?

A.    2 years

B.     3 years

C.     4 years

D.    5 years

3 of 10 Homeowners can deduct all but which of the following from their income taxes?

A.    Mortgage interest

B.     Depreciation

C.     Prepayment penalties

D.    Property taxes

4 of 10 A totally disabled veteran could be eligible for a property tax exemption of up to what amount?

A.    $50,450

B.     $100,730

C.     $191,266

D.    $206,850

5 of 10 Mike bought his home last year for $150,000. His property taxes would be assessed at:

A.    $1,000

B.     $1,500

C.     $2,250

D.    $3,000

6 of 10 When a person acquires new property, which is true?

A.    The owner has 30 days to notify the county assessor.

B.     The seller must file a bill of sale with the county clerk.

C.     The owner has 45 days to pay the new property taxes.

D.    The owner has 45 days to file a change in ownership statement.

7 of 10 Bill and Brenda bought their home for $150,000 seven years ago and have lived in it ever since. They made $50,000 of improvements. They sold the home for $450,000 and paid $30,000 in selling expenses, including the broker’s commission. On what amount will they pay capital gains tax?

A.    $0

B.     $100,000

C.     $250,000

D.    $300,000

8 of 10 When is the first installment of property taxes due?

A.    First of February

B.     Tenth of April

C.     First of November

D.    Tenth of December

9 of 10 How can a seller lessen the tax impact of selling a home for enough profit that he or she will be boosted to a much higher tax bracket?

A.    There is nothing that can offset this problem.

B.     Do a tax-free exchange instead.

C.     Participate in a tax shelter program.

D.    Do an installment sale.

10 of 10 Which proposition limited the maximum amount of tax on real property?

A.    Proposition 13

B.     Proposition 58

C.     Proposition 60

D.    Proposition 90

Bonus ch16 questions –

1- When is real property reassessed?
2- What does Proposition 58 state?
3- For whom do property tax exemptions exist and for how much? 
4- Explain the documentary transfer tax. 
5- Under what circumstances can a loss on the sale of a personal residence be deducted from income taxes?
6- What items can an owner of an income-producing property deduct that an owner of a personal residence cannot?
7- What are the capital gains exclusions associated with the sale of a personal residence? 
8- What is important for a broker to remember about the Foreign Investment in Real Property Tax Act? 
 

California: Real Estate Practice – Chapter 17 Quiz with no answers

Answers will be revealed with proper subscription

1 of 10 Which figure represents the amount of income available as a return to an investor?

A.    Net operating income

B.     Potential gross income

C.     Adjusted gross spendable income

D.    Effective gross income

2 of 10 Which lender typically deals in interim financing?

A.    Commercial bank

B.     Life insurance company

C.     Syndicate

D.    Real estate trust

3 of 10 Which of these lenders would be most likely to finance a large shopping mall?

A.    Commercial bank

B.     Seller

C.     Savings and loan association

D.    Life insurance company

4 of 10 Examining the economic soundness of a property means looking at all of the following except which?

A.    Zoning issues

B.     Community growth trends

C.     Refinancing

D.    Income projections of the property

5 of 10 When all members have unlimited liability for debts and obligations of the group, the organization is a:

A.    Limited Partnership

B.     Corporation

C.     General Partnership

D.    Syndicate

6 of 10 What is the foremost reason people invest in property?

A.    To save on taxes

B.     To make money

C.     To plan for retirement

D.    To have a second home to enjoy

7 of 10 Which of the following is a possible benefit of investing in real property?

A.    Capital outlay

B.     Financing

C.     Appreciation

D.    Property management

8 of 10 An association of two or more people who combine financial resources to achieve investment objectives is:

A.    Not allowed in California.

B.     A syndicate.

C.     Made up of wealthy individuals.

D.    A group of brokers.

9 of 10 Which statement is not true about a Real Estate Investment Trust?

A.    Sells ownership shares.

B.     Receives special tax considerations.

C.     Offers high yields to customers.

D.    Easy to qualify for.

10 of 10 Which of the following is not a possible benefit of investing in real property?

A.    Tax shelter

B.     Liquidity

C.     Income

D.    Stability

Bonus ch17 questions –

1- What are the three important considerations for a good property investment?

2- What are some tax benefits associated with investing?

3- How could refinancing be an investment benefit? 

4- How is property management seen as a risk to investing? 

5- How do life insurance companies get involved in the investment market?

6- How does a limited partnership differ from a general partnership?

7- What does the net operating income of a property represent? 

8- When studying the characteristics of an area in which an investment property is located, what factors should the investor look at carefully? 

 

California: Real Estate Practice – Chapter 18 Quiz with no answers

Answers will be revealed with proper subscription

1 of 10 What kind of lease contains a recapture clause?

A.    Percentage

B.     Net

C.     Gross

D.    Graduated

2 of 10 When can a landlord enter a tenant’s property to make repairs or show it?

A.    Only after receiving the tenant’s consent.

B.     During business hours and only after giving the tenant 24 hours notice.

C.     Anytime he or she chooses.

D.    Only with a court order.

3 of 10 The IREM designation reserved for individuals who meet a certain level of education and experience is:

A.    CPM

B.     ARM

C.     CPR

D.    AMO

4 of 10 When setting up a rent schedule, a property manager should analyze all but which of the following?

A.    Neighborhood amenities

B.     Community growth

C.     Area vacancy rates

D.    New home sales

5 of 10 California allows a property manager to charge a non-refundable fee for which?

A.    cleaning

B.     security

C.     background check

D.    breakage by children

6 of 10 How often can a tenant call his or her own professional to make repairs and then deduct the amount from the next month’s rent?

A.    Never

B.     Once every 3 months

C.     Once a year

D.    Twice in a 12-month period

7 of 10 Which document shows the assets and liabilities of a business?

A.    Bill of sale

B.     Balance sheet

C.     Profit and loss statement

D.    Purchase contract

8 of 10 A lease that has no time limit is an:

A.    Estate for years

B.     Estate at will

C.     Estate from period to period

D.    Estate at sufferance

9 of 10 Which of the following represents an intangible business asset?

A.    Equipment

B.     Inventory

C.     Goodwill

D.    Fixtures

10 of 10 When a tenant agrees to pay all taxes, insurance, maintenance and repairs, that tenant has what kind of lease?

A.    Gross

B.     Percentage

C.     Net

D.    Graduated

Bonus ch18 questions

1- What is goodwill as it relates to a business?

2- List the three Institute of Real Estate Management property management designations.

3- What are the three general responsibilities of a property manager?

4- Describe how a property manager can receive his or her fees.

5- What should a good management contract contain?

6- Which type of leasehold estate is commonly referred to as a periodic tenancy?

7- Define a gross lease.

8- Under what conditions may a landlord enter a tenant’s property?

Practice exam for California Real Estate Practice Class

Answers will be revealed with the correct subscription

Tip: to find a certain word or key term,  press at the same time, the buttons:

( Ctrl and F ) on Windows computers

(Command and F ) on Mac computer

to bring up the in-page search box

1 of 50 Which of the following newspaper information is not helpful in developing a Prospecting Plan?

A.  Birth and Death Announcements

B.  Code Violations and Tax Delinquencies

C.  Promotions and Job Transfers

D.  Editorials and Bid Proposals

2 of 50 Residential property includes all of the following EXCEPT which?

A.  Apartment

B.  Condominium

C.  Motel

D.  Vacation Home

3 of 50 Paul is filling out the Natural Hazard Disclosure Statement. Which of the following conditions is Paul not required to report on this form?

A.  Lead-based paint was used in the home.

B.  The property is in an area that could flood.

C.  The home sits on an earthquake fault zone.

D.  The property is in a state fire responsibility area.

4 of 50 Seller Kim tells her agent Greg that she would be willing to accept $185,000 on her $205,000 listed home. There are no offers on the property during the 6-month listing period and the listing expires. Several weeks later when showing another home to a buyer, Greg mentions that Kim would have accepted less for her home. Which is true?

A.  Greg is violating the duties he owes to his new buyer.

B.  Greg has put himself in a potential dual agency situation.

C.  Greg has violated the duty of confidentiality to Kim.

D.  Greg has no fiduciary responsibilities to Kim once the listing expired.

5 of 50 Jane has been working with some buyers for several weeks. She thinks they are really interested in one particular property, but when she approaches them about it, the buyer says, “The price is too high.” What would be a good response to that comment?

A.  “I think they’re asking a fair price.”

B.  “Well then, just offer less.”

C.  “What do you think would be a fair price?”

D.  “The comps say that this price is right on target.”

6 of 50 Broker Tami has a very low advertising budget. Which of these forms of advertising is she most likely to avoid?

A.  Internet

B.  Magazine ad

C.  Direct e-mail

D.  Newspaper ad

7 of 50 Glenna and Amanda just bought their first home. They will have a number of new expenses as a result of this purchase. Which of these expenses is not associated with owning a home?

A.  Real estate taxes

B.  Interest on the loan

C.  Personal property tax

D.  Homeowner’s insurance

8 of 50 Buyer Kirk submits an offer to seller Larry. Later that day, Kirk finds a home he likes better; so he withdraws his offer to Larry. Which is a true statement?

A.  Kirk doesn’t have the right to withdraw the offer so soon.

B.  Larry could sue Kirk.

C.  If Larry verbally accepted the offer, Kirk is bound by it.

D.  Kirk’s offer to Larry is legally cancelled.

9 of 50 Which of the following is a credit to the seller on the settlement statement?

A.  Unpaid items due from seller

B.  Sales price

C.  Loan balance

D.  Document preparation fees

10 of 50 There has been very little interest in the Bowers’ home this past week. What should agent Phil do?

A.  Wait until next week to send an activity report, hoping things will pick up.

B.  Suggest to the sellers that their listing price is too high.

C.  Make up some statistics to share with the Bowers.

D.  Send the weekly report as usual, emphasizing what your upcoming plans are for the week.

11 of 50 Jake and Janet are required to pay 4 points on the $80,000 loan they are getting. What will they have to pay the lender?

A.  $800

B.  $1,600

C.  $2,400

D.  $3,200

12 of 50 The manager of a large hotel refuses to rent a room to a blind person with a guide dog. What California Fair Housing law has the manager violated?

A.  Unruh Civil Rights Act

B.  Rumford Fair Housing Act

C.  Holden Act

D.  California Civil Rights Act

13 of 50 What is the most common reason that owners try to sell their homes themselves?

A.  To hand pick the buyer

B.  To have a quick sale

C.  To control the flow of prospects

D.  To save on commission

14 of 50 The title report on a property shows there is a lien on the property. Who is responsible for removing the lien to clear the title?

A.  Broker

B.  Title company

C.  Buyer

D.  Seller

15 of 50 Agent Will has had a listing with the Bryants for 6 weeks. They called Will’s office and told the secretary they are upset and need to speak with Will. Which of these actions might have caused their upset?

A.  Will’s weekly report indicates two showings and five inquiries for the week.

B.  Will placed an ad in the most recent Home Buyer’s Guide.

C.  The Bryants have not received any feedback from any showings in the past month.

D.  Will conducted an agent open house last week that was attended by 25 agents.

16 of 50 When doing research to recommend a reasonable listing price for a home, the most critical part of the research deals with analyzing:

A.  Asking prices for current homes

B.  Listing prices of homes that sold

C.  Listing prices of homes that expired unsold

D.  Selling prices of recently sold homes

17 of 50 Kathy is a personal assistant at Action Realty. She doesn’t need a license to perform many activities at the firm, but which of the following would require her to have a license?

A.  Forwarding calls from the public to one of the salespersons in the office.

B.  Giving information about a listing to prospective buyers.

C.  Maintaining the office filing system.

D.  Preparing flyers and promotional materials for the broker’s approval.

18 of 50 The listing type that assures a broker that he or she will receive compensation no matter who procures the buyer is what kind of agreement?

A.  Net listing

B.  Exclusive-authorization-and-right-to-sell agreement

C.  Open listing

D.  Exclusive agency

19 of 50 When doing a competitive market analysis, the recently sold properties you include should have sold within what timeframe?

A.  The past month

B.  Past three to six months

C.  Past seven months

D.  Last six to nine months

20 of 50 Seller Patsy wants to net $150,000 from the sale of her home. She tells Broker Al that he can list the property for whatever price he wants and anything he gets above the $150,000 he can keep as his commission. What is this agreement called?

A.  Exclusive agency

B.  Open listing

C.  Exclusive-authorization-and-right-to-sell agreement

D.  Net listing

21 of 50 Once signed, escrow instructions can be changed only by:

A.  The escrow agent

B.  The broker

C.  Amending the purchase agreement

D.  Mutual consent of both parties

22 of 50 What is one of the major objectives of professional property management?

A.  Maximize the return to the property management firm.

B.  Minimize expenses while maximizing profits for the owner.

C.  Help control area rent schedules.

D.  Maintain 100 percent occupancy.

23 of 50 Which of the following statements best describes what happens in a mortgage loan transaction?

A.  The lender gives a mortgage to the borrower and gets funds in exchange.

B.  The borrower gives the lender a note and a mortgage in exchange for the funds.

C.  The lender gives the borrower a mortgage and funds.

D.  The borrower gets a note in exchange for a mortgage.

24 of 50 Tim thinks his buyers are ready to make an offer. He asks, “Which one of the children gets the basement bedroom with the private entrance?” What kind of closing technique is Tim using?

A.  Bonus

B.  Alternative

C.  Ownership

D.  Standing-room-only

25 of 50 Mortgage lenders are required to disclose financing costs and annual percentage rate to the borrower under which law or regulation?

A.  Equal Credit Opportunity Act

B.  Truth in Lending

C.  Real Estate Settlement and Procedures Act

D.  Fair Housing laws

26 of 50 Veteran Bill has applied and been approved for a non-VA-guaranteed CalVet loan. Which of the following statements is not true?

A.  Bill will pay a 3% down payment.

B.  Bill is purchasing a 6-family apartment building.

C.  If Bill pays off the loan early, there will be no prepayment penalty.

D.  There is a loan protection plan included with the loan.

27 of 50 Tim and Sue have obtained a buydown loan on their newly built home. Which of the following statements is not true?

A.  They will have to make a very high down payment.

B.  Their interest rate will rise after the first few years.

C.  The builder paid a lump sum amount at closing to reduce the interest rate for a few years.

D.  The lender assumes Tim and Sue’s income will rise over the first few years of the loan.

28 of 50 Prospecting ends:

A.  At the time of a sale

B.  Two weeks after closing

C.  When you have 200 names in your contact database

D.  Never

29 of 50 What is one way the Federal Reserve System regulates the money supply?

A.  Printing money.

B.  Buying government bonds.

C.  Regulating reserves of institutions with savings accounts only.

D.  Purchasing loans from primary lenders.

30 of 50 After six months time, manager Tim wants to terminate the lease of one of his month-to-month tenants. What must Tim do?

A.  Give the tenant a 30-day notice.

B.  Change the locks on the tenant’s apartment.

C.  Give the tenant a 3-day notice to pay or quit.

D.  Give the tenant a 60-day notice.

31 of 50 Which of the following AIDA characteristics is the most critical in the ad?

A.  Capturing attention

B.  Arousing interest

C.  Creating desire

D.  Prompting action

32 of 50 Alice is an employee of Mid-State Realty Services. She would likely be required to do which of the following?

A.  List properties in her own name.

B.  Attend weekly staff meetings at the office.

C.  Accept commissions from referral agents.

D.  Pay for worker’s compensation.

33 of 50 Sal bought a personal residence for $150,000. He made $150,000 of improvements during the three years he lived in it before he sold it. He sold the home for $750,000 and paid $50,000 in selling expenses, including the broker’s commission. On what amount will he pay capital gains tax?

A.  $0

B.  $150,000

C.  $200,000

D.  $500,000

34 of 50 At a community meeting, Broker Amanda tells a group of families in an established neighborhood that several Indian families are planning to buy homes in their neighborhood. She tells them that this action could decrease their property values. Which statement is true?

A.  Amanda is guilty of blockbusting.

B.  This action is legal but very unprofessional.

C.  Amanda is guilty of redlining.

D.  This action is deliberate misrepresentation.

35 of 50 Agent John just listed a home in a mid-range priced neighborhood. Which of these ad headlines would probably be the least effective for this home?

A.  Large Back Yard

B.  Three Bedrooms

C.  $125,000

D.  Needs Paint

36 of 50 Agent Pam receives an offer on one of her listings for less than the asking price. The home has been listed for several months; so Pam does a CMA and determines that the offer is more than reasonable in today’s market. However, she believes the sellers will not be willing to accept the offering price. What would be a good approach for Pam to take?

A.  Pam should tell them to reject the offer so that the buyers will counter back with full price.

B.  She should advise them to let the offer expire with no action so the buyers will get nervous.

C.  Pam should recommend that they counteroffer with a price halfway between asking and offering price.

D.  She should persuade them to accept the offer.

37 of 50 Which of the following economic characteristics is true?

A.  Land is plentiful.

B.  Properties are very liquid and can move quickly.

C.  Real estate can respond quickly to changes in the market.

D.  Supply cannot be moved to a high demand area.

38 of 50 What is the primary role of Fannie Mae?

A.  To purchase conventional, FHA and VA loans

B.  To guarantee all FHA and VA loans

C.  To originate FHA and VA loans

D.  To insure conventional, FHA and VA loans

39 of 50 Prospects Mike and Marge arrive with agent Elaine at a showing. Elaine parks across the street from the home and Mike is disappointed by what he sees. He’s no longer interested in seeing the inside and Marge agrees. What should Elaine do?

A.  Tell Mike that the sellers will be upset if they cancel the appointment.

B.  Enumerate the home’s special features and hope they change their minds.

C.  Tell them that this home is an exceptional buy and encourage them to look anyway.

D.  Call the sellers immediately and let them know you won’t be coming by.

40 of 50 Which of the following Internet pages might not be of particular interest to buyers?

A.  Mortgage loan calculator

B.  Getting pre-qualified

C.  Your current listings

D.  Curb appeal information

41 of 50 What was the important ruling in Jones v. Mayer?

A.  Sex became a protected class.

B.  The definition of race was expanded to include ancestry.

C.  The definition of handicap was expanded to include use of guide or support animals for deaf and blind individuals.

D.  Discrimination on the basis of race is strictly prohibited, meaning no exceptions whatsoever.

42 of 50 Alex makes an offer to purchase one of Bill’s listings. Bill cannot contact the seller. In the meantime, Bill gets another offer on the property from another buyer at a higher price. What should Bill do?

A.  Present the higher-priced offer first.

B.  Decide which offer is best and present that one.

C.  Present Alex’s offer first since it came in first.

D.  Present both offers to the seller.

43 of 50 Which one of these statements would not be considered a measurable goal?

A.  I will make two new contacts every day this week.

B.  I will practice my listing presentations.

C.  I will get three new listings this month.

D.  I will complete a property management seminar within the next year.

44 of 50 Fair Housing laws are designed to:

A.  Give housing choices to the widest range of people.

B.  Restrict the housing market.

C.  Prohibit discrimination.

D.  Ensure fair real estate negotiations.

45 of 50 What is the Federal Housing Administrations primary role in the mortgage market?

A.  To insure loans made by approved lenders

B.  To guarantee loans made by lenders

C.  To lend money directly to borrowers

D.  To sell loans to other secondary mortgage marketers

46 of 50 Greg grew up in and lives in a rural area. He’s very comfortable selling that type of property and knows he can work well with clients in that area. What property type will be his specialty?

A.  Special-purpose

B.  Agricultural

C.  Commercial

D.  Recreational

47 of 50 Which of the following would not qualify as a 1031 exchange?

A.  An apartment building for a vacant lot

B.  A rental condominium for a recreational vehicle

C.  A farm for a storefront

D.  A warehouse for a rental home

48 of 50 Which of these lenders would be the least likely to lend money for an investor to purchase an apartment building?

A.  Savings bank

B.  Life insurance company

C.  Syndicate

D.  All of the above

49 of 50 Greg and Wanda Sandler purchased their home 35 years ago and it was paid off at the end of thirty years. In order to supplement their fixed income, the Sandlers receive monthly checks from their bank. Most likely, what did they get?

A.  Home equity loan

B.  Amortized loan

C.  Senior citizen loan

D.  Reverse annuity mortgage

50 of 50 Eric is acting as a disclosed dual agent in a transaction. Which statement is true?

A.  Eric can require that both the buyer and seller share equally in his commission.

B.  He must withdraw his representation of one of the parties.

C.  Eric may not represent the seller’s interests to the detriment of the buyer.

D.  Eric’s broker should appoint Eric as the designated agent in this transaction.

California: Real Estate Practice – Sample of Final Course Exam

Answers will be revealed with the correct subscription

Tip: to find a certain word or key term,  press at the same time, the buttons:

( Ctrl and F ) on Windows computers

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to bring up the in-page search box

1- The amount that a seller takes away from a sale is termed:

      A) Net sale price

      B) Seller’s proceeds

      C) Gross sales price

      D) Profit margin

2- Which of the following best describes prospecting?

A.      Seeking buyers for your listings

B.      Seeking listings

C.      Seeking both buyers and sellers

D.     Seeking buyers for others agents’ listings

3- A property manager can refuse to rent to applicant Mike for any of the following reasons except which?

A.      Mike has changed jobs six times in the past six months.

B.      He is married with two children

C.      Mike has been late with his rent payments seven times in the past year

D.     He had a serious physical altercation with his downstairs neighbor

4. Which law extended discrimination to include handicap and familial status?

A.      Jones v. Mayer

B.      Housing and Community Development Act

C.      Civil Rights Act of 1968

D.     Fair Housing Amendment Act

5. Sharon and Steve have just taken a second mortgage on their home. Which is a true statement?

A.      The second mortgage has now become the primary loan.

B.      This mortgage is not negotiable

C.      They’re probably paying a higher interest rate on the second mortgage.

D.     The first and second mortgage will be rolled into one.

6- According to California real estate law, how often must a broker balance his or her trust accounts?

A.      Weekly

B.      Monthly

C.      Quarterly

D.     Annually

7- In the initial meetings with the prospects, the agent should do all of the following except which?

A.      Give the prospects a black copy of a purchase agreement to look over.

B.      Ask the buyers to sign a real estate transfer disclosure statement.

C.      Discuss alternative properties that may be interest.

D.     Have the prospects sign the disclosure about agency relationship

8- When considering making a loan to a borrower, which of the following factors would probably exert the least amount of influence on the lender?

A.      The borrower’s income

B.      The value of the property the borrower wants to purchase

C.      The borrower’s job stability

D.     The neighborhood in which the property is located

9- Which California Fair Housing Law Prohibits discrimination based on sexual orientation of source of income?

A.      Civil Rights Act of 1964

B.      Rumford Fair Housing Act

C.      Holden Act

D.     California Civil Rights Act

10- Which of the following prospecting techniques do you have to use carefully because it has tended to upset people in recent years?

A.      Facebook and Twitter advertising

B.      Direct mail

C.      Placing ads

D.     Telephone calls

11- Broker Jill has an agreement with seller Alice that says Jill will receive compensation if anyone except Alice sells Alice’s home, what kind of agreement is this?

A.      Exclusive agency

B.      Net listing

C.      Right-to-sell agreement

D.     Open listing

12- The second installment of property taxes comes due on: 

A.      1-Feb

B.      30-Apr

C.      1-Nov

D.     31-Dec

13- Seller Jim tells his agent Branda that he does not want his home marketed to families with children. Brenda refuses. Which statement is true?

A.      Brenda must follow all of Jim’s instructions.

B.      Brenda has violated the fiduciary duty of obedience to Jim.

C.      Brenda could be liable for a breach of the listing terms.

D.     Brenda has not violated any fiduciary duty.

14- Value includes which of the following aspects?

A.      Desire

B.      Ability to pay

C.      Usefulness

D.     All of the above

15- Karen and Al obtained a 30-year fixed-rate, fully amortized loan when they purchased their home. Which statement is true?

A.      Each of their payments is for the same amount

B.      They will owe a balloon payment at the end of the loan term.

C.      The same amount will go towards the principal every month.

D.     The interest payment is always smaller then the amount allocated to the principal.

16- Dave and Nadine have decided that they want to become property investors.  What is most likely their main motivation for investing?

A.      To plain for retirement

B.      To save on taxes

C.      To make money

D.     To have a second home to enjoy

17- The general law of agency applies to

A.      Brokers dealing with sellers

B.      Salespersons dealing with buyers

C.      Insurance agents dealing with customers

D.     All business transactions

18- In a transaction that involves the purchase of a business, what document functions in the same way as the deed in a personal real estate transaction?

A.      Mortgage

B.      Deed of Trust

C.      Warranty deed

D.     Bill of Sale

19- Which of the following is not an advantage of hosting an open house?

A.      Generates leads for new listings.

B.      Pleases the sellers by inv=creasing activity.

C.      Identifies buyers for other properties.

D.     Allows viewing access to strangers

20- Which of the following would not be an essential component when researching the purchase of an apartment building?

A.      Analyzing neighboring cities.

B.      Studying population trends in the area.

C.      Analyzing the income potential of the property.

D.     Understanding characteristics of the rental market.

21- Which form of advertising is considered the most cost-effective method for selling a home?

A.      Radio

B.      Newspaper

C.      Magazine

D.     Television

22- Jane sold her personal home for $148,000. Two months later she purchased and moved into a new home that cost $145,000. The adjusted cost basis of the first home was $140,000. For purposes of federal income tax, which statement is true?

A.      A basis of $148,000 and no taxable gain

B.      A basis of $145,000 and a taxable gain of $3,000

C.      A basis of $130,000 and a table gain of $18,000

D.     A basis of $140,000 and no taxable gain.

23- Jonestown Community Bank refuses to lend money to potential homeowners trying to purchase property in the predominantly Asian neighborhood on the west end of town. This practice is:

A.      Steering

B.      Blockbusting

C.      Panic-selling

D.     Redlining

24- When talking to his investment clients, Broker Adam often to tax shelters. This term typically refers to

A.      Mortgages

B.      Interest income

C.      Income taxes

D.     Property taxes

25- According to the law governing mortgage loan brokers, what is the maximum commission Broker Claire can charge for securing a $50,000 first mortgage for a period of 2 years?

A.      5%

B.      10%

C.      15%

D.     20%

26- Which is true about listings?

A.      A net listing is illegal in all states.

B.      An open listing is an exclusive contract.

C.      A seller can sell his or own home and owe home and owe no commission if he or she signs an exclusive agency listing.

D.     An exclusive listing must always be at least 30 days long.

27- Mr. and Mrs. Haley are purchasing beachfront property in an upscale development. The home comes equipped with all furnishings. The Haleys want to get a mortgage that will cover the purchase price plus all the furnishings. What kind of mortgage are they looking for?

A.      Package

B.      Blanket

C.      Wraparound

D.     Buydown

28- Abby applies for a federally-related loan to purchase a home. The lender must furnish a copy of the CFPB booklet to Abby no later than the third business day from which date?

A.    The date Abby receives the good faith estimate.

B.     The date escrow is opened.

C.     The date the lender receives her application.

D.    The date Abby makes the request to receive the booklet.

29- Which of the following is not a good direct mail technique?

A.    Use a self-folding mailer.

B.     Hand address the mailer.

C.     Use an attractive first-class stamp.

D.    Offer something valuable to the reader.

30- Being prepared to handle incoming phone calls means all of the following except which?

A.    Knowing your inventory

B.     Understanding the kind of responses your advertising generates

C.     Knowing the community

D.    Being able to anticipate the caller’s requirements

31- Patrick has a written independent contractor agreement with his broker Tami. Last year, about 25% of his income came from sales commissions. The other 75% came from an hourly wage paid by Tami. For income tax purposes, the IRS would probably classify Patrick as:

A.    An independent contractor

B.     A self-employed person

C.     An employee

D.    A real estate assistant

32- Broker Alice has a listing agreement with Jack. If Broker Tom procures a buyer for Jack, Tom will get the commission and Alice will not. What kind of listing agreement does Alice have with Jack?

A.    Exclusive agency

B.     Net

C.     Exclusive-authorization-and-right-to-sell

D.    Open

33- Which statement is true about a loan that has a negative amortization?
A.    At the end of the term, the loan balance will be negative.
B.     The borrower makes payments of interest only over the term of the loan.
C.     Payments will not be enough to retire the loan.
D.    All adjustable rate mortgages have negative amortization.
34- Sarah is an employee and Ken is an independent contractor at Kerns Realty. Which of the following statements is true?

A.    Ken is responsible for his own taxes, while the broker pays Sarah’s.

B.     Ken must obtain his own training. The broker will not provide any.

C.     Neither Sarah nor Ken can get employer-provided health insurance.

D.    Ken and Sarah both must be at the office from 9 a.m. to 5 p.m.

35- Who benefits from Private Mortgage Insurance?

A.    The borrower’s family in case of his or her death

B.     The lender in case of the borrower’s death

C.     The lender against delinquent payments

D.    The lender in case of the borrower’s default

36- Broker Eric secures a loan for buyer Paul. The fees that Eric charges Paul for making the loan could be any but which of the following amounts?

A.    $390

B.     5% of the principal

C.     Actual costs under $700

D.    Any of the above

37- When dealing with the sale of a business, which is not a true statement?

A.    A Bill of Sale gives title to the business equipment.

B.     Goodwill is an intangible asset that results from the reputation of the business.

C.     Tangible assets transferred in the sale include inventory, fixtures and equipment.

D.    The UCC is a body of law that standardizes a number of business practices.

38- When using the straight-line method of depreciation, each year of economic age is given a rate that

A.    Varies each year according to a table provided by the IRS

B.     Is equal for each year over the life of the property

C.     Is high during the first five years of the ownership period, then reduces gradually over the life of the property

D.    Varies according to the expired life of the improvements made to the property

39- When doing a competitive market analysis, an agent looks at all but which of the following factors?

A.    Prices of properties currently on the market

B.     Prices of sold properties

C.     Properties that were listed but did not sell

D.    Recently renovated properties

40- Which of the following phrases should Salesperson Brenda avoid when writing an advertisement for one of her listings?

A.    Kosher meals available

B.     Christian home

C.     Fourth-floor walk-up

D.    Walk to bus stop

41- Agricultural land includes all of the following EXCEPT which?

A.    Orchards

B.     Pastureland

C.     Parks

D.    Farms

42- Alice is planning her career and setting her goals. Which of the following would be considered an intermediate goal?

A.    I will complete the GRI certification in the next four years.

B.     I will do two practice listing presentations per week with an experienced agent for the next two months.

C.     I will open my own office within nine years.

D.    I will distribute 200 business cards every month for the next six months.

43- The Equal Credit Opportunity Act (ECOA) requires lenders to:

A.    Give credit to all potential borrowers.

B.     Give a discount to families with children.

C.     Consider child support payments in the decision.

D.    Specialize by geographic area.

44- Jim owns a gift shop in a commercial building. He pays rent for occupancy, plus maintenance and operating expenses. What kind of lease does Jim have?

A.    Net lease

B.     Percentage lease

C.     Gross lease

D.    Graduated lease

45- Kirk wants to get an FHA loan. Which of the following is Kirk himself not likely to do during the application process?

A.    Find a home that meets FHA requirements.

B.     Agree to pay mortgage insurance.

C.     Find a lender who is willing to do FHA loans.

D.    All of the above.

46- A life insurance company would most likely invest in all but which of the following properties?

A.    Shopping mall

B.     Apartment complex

C.     Industrial complex

D.    Local beauty salon

47- Which of the following duties is not a permitted activity for an unlicensed personal assistant?

A.    Negotiate agreements regarding commission structuring.

B.     Secure documents that are public information from the courthouse and other sources available to the public.

C.     Have keys made for company listings.

D.    Write advertisements and promotional materials with the approval of the licensee and supervising broker.

48- The public report that a developer must provide when offering subdivided lands for sale is provided by which agency?

A.    Department of Housing and Urban Development

B.     Department of Real Estate

C.     Recorder’s Office in the county where the land is located

D.    The county planning commission

49- Agent Dan tells his buyers that the seller will leave the washer and dryer if the buyers make an offer now. What kind of closing technique is Jim using?

A.    Standing-room only

B.     Alternative

C.     Ownership

D.    Bonus

50- Harry has some buyers that he believes are ready to make an offer. He says to them, “Would you prefer to take possession on September 1 or October 1?” What kind of closing technique is Harry using?

A.    Assumptive

B.     Alternative

C.     Ownership

D.    Standing-room-only

51- Which statement is true about a homeowner’s exemption?

A.    It must be filed every year.

B.     Certain homeowners may qualify for a $10,000 exemption.

C.     Once filed, it remains until terminated.

D.    None of the above.

52- Which statement is true about a listing contract?

A.    It must be in writing to be enforceable.

B.     It can be considered an employment contract.

C.     It creates an agency relationship.

D.    All of the above.

53- Greg sold an apartment building he owned for 20 years. He paid $100,000 for it, and made $300,000 worth of improvements. His depreciation was $2,500 per year. He sold the building for $1,000,000 and paid $60,000 in commission to the broker. What is Greg’s capital gain on the apartment?

A.    $450,000

B.     $540,000

C.     $590,000

D.    $600,000

54- Jim and Jane are buying a home for $120,000. They have $20,000 for a down payment and assumed the seller’s mortgage of $75,000. Jim and Jane financed the remaining $25,000 through the seller. What kind of a mortgage do they have?

A.    Buydown loan

B.     Balloon note

C.     Purchase-money mortgage

D.    Wraparound / wrap around loan

55- Greg is approved for a Cal-Vet loan. Who will pay the points?

A.    The seller

B.     The state

C.     Greg

D.    No one – there are no points.

56- Which is not a true statement about the Agency Disclosure?

A.    The listing agent must provide the disclosure to the seller prior to securing the listing agreement.

B.     The selling agent must provide the disclosure to the seller “as soon as practicable” prior to presenting a purchase offer.

C.     If the selling agent does not deal directly with the seller, the selling agent is not required to provide the disclosure.

D.    The selling agent must provide the disclosure to the buyer “as soon as practicable” prior to the execution of the buyer’s offer to purchase.

57- Under federal income tax law, the “basis” for a personal residence is which of the following:
A.    The purchase price, plus depreciation
B.     The purchase price, plus improvements
C.     The fair market value at the time of sale
D.    The appraised value prior to sale
58- Mortgage lenders are prohibited from discriminating in giving credit to prospective borrowers based on race, color, religion, national origin, sex, marital status, age or dependency on public assistance under which law or regulation?

A.    Equal Credit Opportunity Act

B.     Truth in Lending

C.     Real Estate Settlement and Procedures Act

D.    Community Reinvestment Act

59- Which of the following is a seller’s request that an agent cannot honor?

A.    Please remove your shoes before entering the home.

B.     Do not show to Mexicans.

C.     Always call before showing.

D.    Do not show the home between 10 a.m. and noon on Sundays.

60- Seller Tom has an agreement with Broker Bill, Broker Jim and Broker Joe. Whoever brings the buyer will get the commission. What kind of agreement is this?

A.    Exclusive agency

B.     Net listing

C.     Open listing

D.    Exclusive-authorization-and-right-to-sell agreement

61- Bill and Sue secured a mortgage loan that is tied to an index which fluctuates over the life of the loan. What kind of loan do they have?

A.    Amortized

B.     ARM

C.     Balloon

D.    Growing equity

62- When agent Hal shows a home he should never:

A.    Ask questions of the prospects’ children.

B.     Start in the room with the best features.

C.     Allow indoor pets to leave their designated area.

D.    Avoid negative comments while he’s inside the home.

63- Jenny’s home appraised for $550,000. Her asking price was $560,000 and the property sold for $575,000. What will the new owners pay in property taxes?

A.    $5,500 the first year, plus a maximum 2% increase in market value per year

B.     $5,600 every year, with no increase

C.     $5,750 the first year, plus a maximum 2% increase in market value per year

D.    $5,750, plus a maximum 1% increase in market value per year

64- Which of the following is not a form of personal advertising?

A.    Car signs

B.     Business cards

C.     Multiple Listing service

D.    Name tags

65- Which of the following items is usually not prorated at closing?

A.    Real estate taxes

B.     Title insurance

C.     Mortgage interest

D.    Homeowner’s insurance

66- When doing a listing presentation which of the following items would you not describe to the owners as being a benefit of listing with an agent?

A.    Availability of multiple listing service

B.     Amount of commission charges

C.     Broker-paid advertising and promotion

D.    Assistance with filling out disclosures

67- Hannah is a real estate assistant. Her broker has asked her to be available for tasks in the field rather than in the office. What would we call Hannah?

A.    On-call assistant

B.     Field staff

C.     Part-time worker

D.    Commission-only assistant

68- Greg and Joyce have an adjustable rate mortgage on their home. What is the key feature of this type of loan?

A.    The principal never amortizes.

B.     The term of the loan can be shortened.

C.     The interest rate can vary.

D.    The monthly payments increase overtime.

69- According to ECOA, lenders cannot discriminate against potential borrowers on the basis of all but which of the following?

A.    Marital status

B.     Age

C.     Income

D.    Religion

70- Which of these items would be a credit to the buyer on the settlement statement?

A.    sales price

B.     loan origination fee

C.     loan amount

D.    recording fee

71- When agent Jane meets with her sellers to offer suggestions, she most likely would not give them:

A.    Cleaning tips

B.     Advice to be home during showings

C.     Landscaping instructions

D.    Suggestions for improvements

72- According to RESPA, a buyer or seller cannot legally be charged at closing for which of the following items?

A.    Loan origination fee

B.     Referral fee to a homeowner’s insurance agent.

C.     Title insurance

D.    Attorney fees

73- Which of these is not a buying signal?

A.    Buyer Jim asks if he can visit the property for a second time.

B.     Buyer Amanda asks if she can measure the windows to see if her current drapes will fit.

C.     Jim and Amanda whisper and frown when they see the basement.

D.    Amanda smiles at Jim when she sees the whirlpool tub.

74- Which statement is not true about an agency relationship?

A.    It is based on authorization.

B.     It is determined by who pays the compensation.

C.     It is based on mutual consent.

D.    It can exist without compensation.

75- All but which of the following is NOT an AIDA feature?

A.    Action

B.     Desire

C.     Aspiration

D.    Interest

76- Mark believes he has been discriminated against during his home search. How long does he have to file a complaint with the Department of Housing and Urban Development?

A.    6 months

B.     12 months

C.     18 months

D.    24 months

77- Which of the following Internet pages might not be of particular interest to buyers?

A.    Mortgage loan calculator

B.     Information on current loan programs

C.     Definition of financing terms

D.    Curb appeal information

78- Nancy bought her home last year for $425,000. Her property taxes would be assessed at:

A.    $425

B.     $1,500

C.     $2,250

D.    $4,250

79- Tom and Mary want to purchase their first home. Which of the following would be the least likely place for them to obtain a loan?

A.    Insurance company

B.     Credit union

C.     Mortgage company

D.    Savings and loan association

80- Which of the following is an example of commingling?

A.    Broker John puts $500 into his trust account.

B.     Broker Alice holds an uncashed check until the offer is accepted.

C.     Broker Harry deposits $1000 into his brokerage business account.

D.    Broker Gina puts $150 into her trust account.

81- Jake has decided to specialize in working with clients who purchase schools. What property type will he be dealing with?

A.    Commercial

B.     Industrial

C.     Recreational

D.    Special-purpose

82- What is the minimum period of time over which the owner of an apartment building can depreciate the improvements?

A.    18 years

B.     27.5 years

C.     30 years

D.    32 years

83- Matt is computing the adjusted cost basis of his apartment building for income tax purposes. Which of the following items can Matt not add to the original cost when doing the computation?

A.    Cost of a new parking lot

B.     Installation of central air conditioning

C.     Mortgage payments on the property

D.    Addition of a tenant laundry facility

84- Four years ago, Sam purchased a vacant lot for $10,000. He just sold it for $13,000. During the time Sam owned the property he paid $350 per year in taxes, $150 per year on maintenance like grass cutting and $90 per year on miscellaneous expenses. How much did Sam gain or lose on the sale?

A.    Gained $640

B.     Gained $2360

C.     Lost $640

D.    Lost $2360

85- Which paragraph of the purchase agreement states that the balance of the purchase price will be deposited into escrow prior to closing?

A.    Finance Terms

B.     Offer

C.     Closing and Occupancy

D.    Allocation of Costs

86- Which of the following is not considered a benefit of investing in real estate?

A.    Having a monthly income.

B.     Reducing taxes.

C.     Realizing a quick profit.

D.    Hedging against inflation.

87- What information can you gather from the newspaper to help develop a Prospecting Plan?

A.    Death Notices and Building Permits

B.     Deeds and Property Inspections

C.     Land Titles and Home Warranties

D.    Service Ads and Display Ads

88- Sally and Dan must pay 2 points on their new $65,000 loan. What will they have to pay at closing for the points?

A.    $650

B.     $1,300

C.     $1,950

D.    $2,600

89- Who selects the escrow company?

A.    The buyer and seller

B.     The broker

C.     The seller’s agent

D.    The seller alone

90- Marsha has been keeping track of the effectiveness of her advertising campaigns. She is probably using all but which of the following tools?

A.    Code in a print ad

B.     Telephone log

C.     Designated telephone number

D.    Advertising budget

91- This paragraph of the purchase agreements informs the seller of the buyer’s right to inspect the property and can cancel or request maintenance based on findings.

A.    Repairs

B.     Buyer Indemnity

C.     Dispute Resolution

D.    Conditions Affecting Property

92- Which of the following situations is not exempt from the seller disclosure requirement?

A.    Greg Burns is selling his interest in his home to his wife Melanie as part of their divorce settlement.

B.     Jim Sharp is purchasing his father’s home.

C.     The court has ordered the transfer of Sally Green’s home to her friend Penny Jacobs as part of the settlement of Sally’s estate.

D.    All of the above

93- Jim has created a nice property flier for the James’ home. Jim should not use this flier as a:

A.    Handout at open houses

B.     Substitute for advertising

C.     Handout for other agents

D.    Mailer for telephone inquiries

94- Seller’s agent Pam was unaware of the fact that the heating system of a home she had listed was defective. She sold the property and several months later the buyer sued Pam for not disclosing the problem. Which statement is true ?

A.    The buyer was responsible for making the discovery, so Pam is therefore liable.

B.     Pam is not liable since it was summer and the heating problem was not obvious.

C.     The seller did not disclose the problem on a seller’s disclosure form so Pam  is off the hook.

D.    Pam is has no duty to investigate and may rely on the opinion of a heating professional or home inspector.

95- Who is liable for the withholding on the sale of a property owned by a foreigner?

A.    Buyer

B.     Seller

C.     Broker

D.    Escrow Officer

96- Which statement is not true about a listing contract?

A.    It must be in writing to be enforceable.

B.     It can be considered an employment contract.

C.     It is a unilateral contract.

D.    It creates an agency relationship.

97- Buyer Randy makes an offer to purchase one of Broker Tom’s listings on June 15. Randy gives Tom an earnest money check for $1,000 and asks Tom to hold it until June 30, regardless of the date the seller accepts the offer. What should Tom do?

A.    Deposit the check into his trust fund account on the next business day.

B.     Present the offer and tell the seller that the check needs to be held until June 30.

C.     Refuse to accept the offer and check.

D.    Give the check to the seller.

98- Grant moves into his new office space while he awaits the completion of the negotiations of the lease terms. During this interim period, grant makes monthly rent payments and the owner accepts them. How would Grant’s lease at this time be classified?

A.    Estate for years

B.     Estate from period to period

C.     Estate at will

D.    Estate at sufferance

99- All exclusive listing agreements must have

A.    Compensation defined

B.     Definite termination date

C.     A list of personal property included in the sale

D.    Escrow company named

100- What does the Real Estate Disclosure Law refer to?

A.    Disclosure of agency relationships

B.     Disclosure of financing terms

C.     Disclosure of property condition

D.    Disclosure of natural hazards

101- Which type of loan typically carries the most loan points?

A.    FHA

B.     VA

C.     Cal-Vet

D.    Conventional

102- What is the minimum period of time over which the owner of a commercial building can depreciate the improvements?

A.    20 years

B.     27.5 years

C.     30 years

D.    39 years

103- Kirk and Sandy obtained a wraparound mortgage. Which of these statements is true about the wraparound mortgage?

A.    Their first mortgage will get paid off immediately.

B.     The original loan becomes subordinate to the wraparound.

C.     They can make payments directly to the original lender.

D.    Their lender can profit from the difference in interest rates.

104- Lorna and Hal have obtained a growing equity mortgage for their new home. What does that mean?

A.    The loan will be distributed to them gradually.

B.     The interest rate will increase gradually over time.

C.     The loan term will extend gradually over time.

D.    Their loan payments will gradually increase.

105- Agent Alice has received an offer that she believes is not in the sellers’ best interest. What should Alice do?

A.    Make no recommendations and let the sellers decide on their own.

B.     Tell the sellers exactly how she feels and why she thinks the offer is not a good one.

C.     Recommend a counteroffer back to list price.

D.    Work toward acceptance.

106- If broker Tim advertises a property for sale that he doesn’t intend to sell so that he can attract potential buyers, Tim is practicing:

A.    Display advertising

B.     Ethical advertising

C.     Product advertising

D.    Bait-and-switch advertising