Download - Answer to RE Practices Final
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Student Name: Frazier , Tremaine L
Status: Passed
Grade: 92
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1. Question Asked: With what type of commission plan does a broker not charge a fee, but a commission
based on a percentage of the selling price?
Choice 1: Straight commission plan.CORRECT CHOICE
Choice 2: 100% commission plan.
Choice 3: Negative commission plan.
Choice 4: None of the above.
Student Answer: Straight commission plan.
2. Question Asked: To earn the commission guaranteed by a safety clause, the original listing broker
must provide the seller with a list of prospects who were shown or made offers on the property within
___________________.
Choice 1: 24 hours of the expiration of the original listing
Choice 2: 48 hours of the expiration of the original listing
Choice 3: 3 calendar days of the expiration of the original listingCORRECT CHOICE
Choice 4: 10 calendar days of the expiration of the original listing
Student Answer: 3 calendar days of the expiration of the original listing
3. Question Asked: To earn a commission, a broker must produce a buyer who is ___________________.
Choice 1: Ready
Choice 2: Willing
Choice 3: Able
Choice 4: All of the aboveCORRECT CHOICE
Student Answer: All of the above
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4. Question Asked: All commissions are negotiable between a seller and listing broker, and determined
_______________________.
Choice 1: When an offer is presented
Choice 2: When the listing agreement is signedCORRECT CHOICE
Choice 3: At the close of escrow
Choice 4: None of the above
Student Answer: When the listing agreement is signed
5. Question Asked: Which of the following statements is NOT TRUE concerning listings in California?
Choice 1: Listing agreements must be in writing.
Choice 2: A listing is considered an employment contract between principal and agent/broker.
Choice 3: Listing agreements are also referred to as purchase contracts.CORRECT CHOICE
Choice 4: A listing agent is bound by the laws of agency.
Student Answer: Listing agreements are also referred to as purchase contracts.
6. Question Asked: To earn a commission, a broker must produce a buyer who is _________________.
Choice 1: Ready, willing, and ableCORRECT CHOICE
Choice 2: Interested, sincere, and literate
Choice 3: Realistic, reliable, and ready
Choice 4: Flexible, cooperative, and genuine
Student Answer: Ready, willing, and able
7. Question Asked: Which of the following (sellers) listing forms does the buyer also receive a copy of?
Choice 1: Residential listing agreement
Choice 2: Transfer Disclosure StatementCORRECT CHOICE
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Choice 3: Estimated seller's proceeds
Choice 4: All of the above
Student Answer: Transfer Disclosure Statement
8. Question Asked: A Disclosure Regarding Real Estate Agency Relationships should be signed
___________________.
Choice 1: After taking a listing, but before an offer is presented
Choice 2: Only after an offer to purchase is presented
Choice 3: Before any contract is entered intoCORRECT CHOICE
Choice 4: Only if the seller is desperate to sell
Student Answer: Before any contract is entered into
9. Question Asked: To earn a commission, a broker must produce a buyer who is _________________.
Choice 1: Ready, willing, and ableCORRECT CHOICE
Choice 2: Interested, sincere, and literate
Choice 3: Realistic, reliable, and ready
Choice 4: Flexible, cooperative, and genuine
Student Answer: Ready, willing, and able
10. Question Asked: In a listing agreement, which instructions are given the most consideration?
Choice 1: Handwritten instructionsCORRECT CHOICE
Choice 2: Preprinted instructions
Choice 3: Oral instructions
Choice 4: None of the above
Student Answer: Handwritten instructions
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11. Question Asked: Copies of the listing agreement must be given to the signing parties
________________.
Choice 1: At the time signatures are obtainedCORRECT CHOICE
Choice 2: Within 3 days of signing
Choice 3: Within 30 days of signing
Choice 4: None of the above
Student Answer: At the time signatures are obtained
12. Question Asked: The amount of commission payable to a real estate broker is ordinarily based on
______________________.
Choice 1: Statutory limitations
Choice 2: Rules and regulations of the DRE and the FBI
Choice 3: A secret formula known only the Real Estate Commissioner
Choice 4: Agreement of the partiesCORRECT CHOICE
Student Answer: Agreement of the parties
13. Question Asked: The Disclosure Regarding Real Estate Agency Relationships must be provided
__________________________________.
Choice 1: By the buyers agent to the buyer before making an offer
Choice 2: By the sellers agent to the seller before writing up a listing agreement
Choice 3: By the agent representing both buyer and seller in a dual agency before any contract is
entered into
Choice 4: All of the aboveCORRECT CHOICE
Student Answer: All of the above
14. Question Asked: The Disclosure Regarding Real Estate Agency Relationships
____________________.
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Choice 1: Is only given to a seller
Choice 2: Is only given to a buyer
Choice 3: Must be given to buyers and sellers before entering into any contract with a brokerCORRECT
CHOICE
Choice 4: None of the above
Student Answer: Must be given to buyers and sellers before entering into any contract with a broker
15. Question Asked: If an owner enters into an exclusive agency listing and thereafter sells the property
through his or her own efforts ____________________.
Choice 1: The broker is entitled to his or her full commission, plus damages
Choice 2: No commission is payableCORRECT CHOICE
Choice 3: The broker takes title to the property
Choice 4: The broker must pay the owner a commission
Student Answer: No commission is payable
16. Question Asked: Which of the following is NOT one of the three requirements for a valid escrow?
Choice 1: Signed escrow instructions
Choice 2: Legal adviceCORRECT CHOICE
Choice 3: Neutral third party as an escrow company
Choice 4: Conditional delivery of funds and documents
Student Answer: Legal advice
17. Question Asked: The annual percentage rate (APR) is ____________________.
Choice 1: The amount financed plus interest rate, points, and loan fees
Choice 2: The actual cost of borrowing money
Choice 3: Expressed as a percentage
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Choice 4: All of the aboveCORRECT CHOICE
Student Answer: All of the above
18. Question Asked: The three Cs of credit include character, capacity and __________________.
Choice 1: CapitalCORRECT CHOICE
Choice 2: Cooperation
Choice 3: Collateral
Choice 4: Citizenship
Student Answer: Capital
19. Question Asked: An adjustable rate mortgage is also referred to as a(n) _____________________.
Choice 1: Fully amortized fixed rate loan
Choice 2: Variable rate mortgage
Choice 3: ARM
Choice 4: Both b and c are correctCORRECT CHOICE
Student Answer: ARM
20. Question Asked: Escrow companies use a base month of ____________________.
Choice 1: 28 days
Choice 2: 30 daysCORRECT CHOICE
Choice 3: 31 days
Choice 4: Any of the above
Student Answer: 30 days
21. Question Asked: The processing of the paperwork and money involved in a real estate transaction by
a neutral third party is referred to as ____________________.
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Choice 1: Usury
Choice 2: EscrowCORRECT CHOICE
Choice 3: Pre-qualifying
Choice 4: None of the above
Student Answer: Escrow
22. Question Asked: The term APR refers to ___________________.
Choice 1: Annual percentage rateCORRECT CHOICE
Choice 2: Average percentage rate
Choice 3: Annual points required
Choice 4: None of the above
Student Answer: Annual percentage rate
23. Question Asked: The type of listing in which the owners would be obligated to pay a commission to
the broker even if the owners sell the property themselves during the listed period is
________________________.
Choice 1: Illegal in California
Choice 2: A multiple listing
Choice 3: An exclusive right to buy
Choice 4: An exclusive right to sell listingCORRECT CHOICE
Student Answer: An exclusive right to sell listing
24. Question Asked: The Real Estate Commissioner requires that all agreements prepared by salespeople
______________________.
Choice 1: Be approved by the IRS
Choice 2: Be approved by their designated broker or sales manager
Choice 3: Be approved within a reasonable time
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Choice 4: Both b and c are correctCORRECT CHOICE
Student Answer: Both b and c are correct
25. Question Asked: When selling an older home, disclosure must be made to the buyer of any repairs
made within the last _____________________.
Choice 1: Three days
Choice 2: Three months
Choice 3: Three yearsCORRECT CHOICE
Choice 4: None of the above
Student Answer: None of the above
26. Question Asked: In a listing agreement, handwritten or typed-in instructions _________________.
Choice 1: Are given precedence over preprinted instructionsCORRECT CHOICE
Choice 2: Are superseded by preprinted instructions
Choice 3: Are not permissible
Choice 4: None of the above
Student Answer: Are given precedence over preprinted instructions
27. Question Asked: A MLS and its cooperating brokers are denied access to a listing by the seller, and
only the listing agent or member of his or her firm are given permission to show and present offers on a
property. This is called a(n) ______________________.
Choice 1: Proprietary listing
Choice 2: Limited exclusive
Choice 3: Office exclusiveCORRECT CHOICE
Choice 4: None of the above
Student Answer: Office exclusive
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28. Question Asked: The type of listing that is most likely to give rise to charges of misrepresentation or
fraud is the ____________________.
Choice 1: Multiple listing
Choice 2: Open listing
Choice 3: Net listingCORRECT CHOICE
Choice 4: None of the above
Student Answer: Net listing
29. Question Asked: How many copies of a listing agreement must be provided to a couple who is
considered one legal entity?
Choice 1: None
Choice 2: OneCORRECT CHOICE
Choice 3: Two
Choice 4: Three
Student Answer: Two
30. Question Asked: The source of most long-term financing for regional malls is
____________________.
Choice 1: Life insurance companiesCORRECT CHOICE
Choice 2: Commercial banks
Choice 3: Savings banks
Choice 4: Private lenders
Student Answer: Life insurance companies
31. Question Asked: In a trust deed, the party who is lending the money is called the
_________________.
Choice 1: Trustor
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Choice 2: Trustee
Choice 3: BeneficiaryCORRECT CHOICE
Choice 4: None of the above
Student Answer: Beneficiary
32. Question Asked: Which of the following is NOT an institutional lender?
Choice 1: Savings bank
Choice 2: Private lenderCORRECT CHOICE
Choice 3: Commercial bank
Choice 4: Life insurance company
Student Answer: Private lender
33. Question Asked: In Northern California, the majority of escrows are handled by
___________________.
Choice 1: Escrow departments of title insurance companiesCORRECT CHOICE
Choice 2: Independent escrow companies
Choice 3: The sellers
Choice 4: None of the above
Student Answer: Escrow departments of title insurance companies
34. Question Asked: The compensation for processing the loan and setting it up on the books, which is
based on the loan amount, is __________________.
Choice 1: Interest
Choice 2: A loan origination feeCORRECT CHOICE
Choice 3: The prevailing market rate
Choice 4: Start up fee
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Student Answer: A loan origination fee
35. Question Asked: A charge to the borrower for paying off all or part of a loan balance before the due
date ______________________.
Choice 1: Is illegal in California
Choice 2: Is called a prepayment penaltyCORRECT CHOICE
Choice 3: Is called an impound account
Choice 4: All of the above
Student Answer: Is called a prepayment penalty
36. Question Asked: An escrow holder can be ____________________.
Choice 1: A corporation
Choice 2: An attorney
Choice 3: A real estate broker acting as the agent in a transaction
Choice 4: All of the aboveCORRECT CHOICE
Student Answer: All of the above
37. Question Asked: The two rules of proration in an escrow include ____________________.
Choice 1: The date the item is paid
Choice 2: The date escrow closes
Choice 3: The condition of the property
Choice 4: A and b are correctCORRECT CHOICE
Student Answer: A and b are correct
38. Question Asked: Escrow is not officially closed until ____________________.
Choice 1: All the conditions of escrow have been completed
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Choice 2: The buyers remaining money is received
Choice 3: The documents are recorded
Choice 4: All of the aboveCORRECT CHOICE
Student Answer: All of the above
39. Question Asked: In a trust deed, the party who is borrowing money is called the
___________________.
Choice 1: TrustorCORRECT CHOICE
Choice 2: Trustee
Choice 3: Beneficiary
Choice 4: None of the above
Student Answer: Trustor
40. Question Asked: Brokers should examine the call log book regularly to determine _______________.
Choice 1: The impact of any advertising campaignCORRECT CHOICE
Choice 2: If agents are showing up for work on time
Choice 3: What hours the office should stay open
Choice 4: None of the above
Student Answer: The impact of any advertising campaign
41. Question Asked: When a phone caller inquires about a property thats no longer available, a switch
sheet allows an agent to _____________________.
Choice 1: Quickly reference similar propertiesCORRECT CHOICE
Choice 2: Confuse the caller with too many alternatives
Choice 3: Legally use the bait and switch technique
Choice 4: Pre-qualify the caller before showing other properties
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Student Answer: Quickly reference similar properties
42. Question Asked: If any financing term is mentioned in an ad, the FTC requires the ad also mention
the _______________________.
Choice 1: Annual percentage rate (APR)CORRECT CHOICE
Choice 2: Semi-annual percentage rate (APR)
Choice 3: Phone number of the Real Estate Commissioner
Choice 4: All of the above
Student Answer: Annual percentage rate (APR)
43. Question Asked: The escrow holder is an agent for ______________________.
Choice 1: The seller only
Choice 2: The buyer only
Choice 3: Both the seller and buyerCORRECT CHOICE
Choice 4: None of the above
Student Answer: Both the seller and buyer
44. Question Asked: When a listing agreement is signed, all commissions are ___________________.
Choice 1: Non-negotiable
Choice 2: Negotiable between seller and listing brokerCORRECT CHOICE
Choice 3: Decided when a buyer makes a legitimate offer
Choice 4: Paid in advance by the seller
Student Answer: Negotiable between seller and listing broker
45. Question Asked: To earn the commission guaranteed by a safety clause, the original listing broker
must provide the seller with a list of prospects who were shown or made offers on the property within
__________________.
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Choice 1: 24 hours of the expiration of the original listing
Choice 2: 48 hours of the expiration of the original listing
Choice 3: 3 calendar days of the expiration of the original listingCORRECT CHOICE
Choice 4: 10 calendar days of the expiration of the original listing
Student Answer: 3 calendar days of the expiration of the original listing
46. Question Asked: The Federal Home Mortgage Corporation (FHLMC) is commonly known as
_________________________.
Choice 1: Freddie MacCORRECT CHOICE
Choice 2: Fannie Mae
Choice 3: Frannie Mac
Choice 4: None of the above
Student Answer: Freddie Mac
47. Question Asked: In a purchase contract, which of the following is usually considered a financing
contingency?
Choice 1: Obtaining the deposit
Choice 2: Obtaining the down payment
Choice 3: Obtaining closing costs
Choice 4: None of the above are financing contingenciesCORRECT CHOICE
Student Answer: None of the above are financing contingencies
48. Question Asked: Lenders refer to a borrower with a low FICO score and a limited ability to cover
family living expenses as a ____________________.
Choice 1: Lost cause borrower
Choice 2: Prime borrower
Choice 3: Sub prime borrowerCORRECT CHOICE
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Choice 4: Commercial borrower
Student Answer: Sub prime borrower
49. Question Asked: The terms mortgagee and mortgagor refer to ____________________.
Choice 1: Mortgages onlyCORRECT CHOICE
Choice 2: Trust deeds only
Choice 3: Mortgages and trust deeds
Choice 4: None of the above
Student Answer: Mortgages only
50. Question Asked: Which of the following government organizations makes direct loans?
Choice 1: FHA
Choice 2: VA
Choice 3: Cal-VetCORRECT CHOICE
Choice 4: None of the above
Student Answer: Cal-Vet
51. Question Asked: Soliciting potential clients by telephoning people you don't know is called
________________.
Choice 1: Cold callingCORRECT CHOICE
Choice 2: Warm calling
Choice 3: Previewing
Choice 4: Blind advertising
Student Answer: Cold calling
52. Question Asked: An incoming call register is a useful tool for ___________________.
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Choice 1: Record keeping
Choice 2: Controlling ad revenue and expenses
Choice 3: Following up on inquiries
Choice 4: All of the aboveCORRECT CHOICE
Student Answer: Following up on inquiries
53. Question Asked: The time assigned to individual agents to answer the company telephone is called
______________________.
Choice 1: Downtime
Choice 2: Floor timeCORRECT CHOICE
Choice 3: Private time
Choice 4: Golden time
Student Answer: Floor time
54. Question Asked: A company that agrees to purchase a property at a given price if it doesnt sell for
more during the listing period is offering a ______________________.
Choice 1: Pocket listing
Choice 2: Guaranteed sales planCORRECT CHOICE
Choice 3: Dual agency
Choice 4: None of the above
Student Answer: Guaranteed sales plan
55. Question Asked: A broker who falsely gives the impression that he or she is the owner of a property
for sale is guilty of _____________________.
Choice 1: Color blind advertising
Choice 2: Blind advertisingCORRECT CHOICE
Choice 3: Puffing
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Choice 4: Keeping a pocket listing
Student Answer: Blind advertising
56. Question Asked: A time-tested method used in writing real estate ads is a formula known by the
acronym _____________________.
Choice 1: ABBA
Choice 2: AIDACORRECT CHOICE
Choice 3: AWOL
Choice 4: AKKA
Student Answer: AIDA
57. Question Asked: A publication or website that lists telephone numbers by addresses rather than
names is called a _____________________.
Choice 1: Cold call directory
Choice 2: Multiple listing directory
Choice 3: Reverse directoryCORRECT CHOICE
Choice 4: None of the above
Student Answer: Reverse directory
58. Question Asked: The list of potential clients that an agent contacts on a regular basis
______________________.
Choice 1: Is considered his or her "sphere of influence"CORRECT CHOICE
Choice 2: Always belongs to his or her broker
Choice 3: Is technically considered harassment
Choice 4: Is a waste of time
Student Answer: Is considered his or her "sphere of influence"
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59. Question Asked: When selling real estate, the least effective form of communication is
______________.
Choice 1: Direct contact (face-to-face)CORRECT CHOICE
Choice 2: By letter (one way)
Choice 3: By telephone (two way)
Choice 4: None of the above
Student Answer: By letter (one way)
60. Question Asked: An open house is a planned period of time during which a property for sale
____________________________.
Choice 1: Is held open for public viewingCORRECT CHOICE
Choice 2: Can be shown only to licensed brokers
Choice 3: Is withheld from placement with a multiple listing service
Choice 4: None of the above
Student Answer: Is held open for public viewing
61. Question Asked: Under the buyer occupancy section of the purchase contract, the term CE+3 means
_____________________________.
Choice 1: The buyer will take possession 3 days after the close of escrowCORRECT CHOICE
Choice 2: The buyer will take possession 3 weeks after the close of escrow
Choice 3: The buyer will take possession 30 days after the close of escrow
Choice 4: None of the above
Student Answer: The buyer will take possession 3 days after the close of escrow
62. Question Asked: Which of the following is TRUE concerning the Buyers Request for Repairs?
Choice 1: The buyers request is really a wish list
Choice 2: The seller may choose to do all, some, or none of the repairs
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Choice 3: The buyer may cancel the escrow if a dispute over repairs cannot be resolved
Choice 4: All of the aboveCORRECT CHOICE
Student Answer: All of the above
63. Question Asked: Which of the following is TRUE concerning wood destroying pest inspections?
Choice 1: Section A1 indicates actual termite infestation
Choice 2: Section A2 indicates existing conditions that may lead to termite infestation
Choice 3: Termite clearance is usually a lenders requirement
Choice 4: All of the aboveCORRECT CHOICE
Student Answer: All of the above
64. Question Asked: The sum of money agreed to in advance and stated in the contract that will be paid
for not fulfilling a clause or condition in the contract is a provision called ______________.
Choice 1: Gross breach of contract provision
Choice 2: Liquidated damage provisionCORRECT CHOICE
Choice 3: Punitive retaliation provision
Choice 4: None of the above
Student Answer: Liquidated damage provision
65. Question Asked: If there is a contradiction in the purchase agreement form __________________.
Choice 1: The handwritten or typed-in words supersede the printed wordsCORRECT CHOICE
Choice 2: The printed words supersede the written or typed-in words
Choice 3: The form is considered void
Choice 4: The Real Estate Commissioner must decide which takes precedence
Student Answer: The handwritten or typed-in words supersede the printed words
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66. Question Asked: Failure of a buyer to fulfill the terms in the Notice to Buyer to Perform gives the
seller the right to ___________________.
Choice 1: Cancel the escrow within 24 hours if other terms are not specifiedCORRECT CHOICE
Choice 2: Charge the buyer a daily fine until contingencies are removed
Choice 3: Lower the listing agents commission
Choice 4: All of the above
Student Answer: Cancel the escrow within 24 hours if other terms are not specified
67. Question Asked: The Verification of Property Condition is filled out _____________________.
Choice 1: When the buyer first visits the property
Choice 2: During the final walk-throughCORRECT CHOICE
Choice 3: By pest inspectors
Choice 4: All of the above
Student Answer: During the final walk-through
68. Question Asked: Which of the following is TRUE concerning the Buyers Affidavit?
Choice 1: It involves the Foreign Investment in Real Property Tax Act (FIRPTA).
Choice 2: It involves property for use as a residence.
Choice 3: It involves property with a sales price that does not exceed 300,000.
Choice 4: All of the aboveCORRECT CHOICE
Student Answer: All of the above
69. Question Asked: The Cooperating Broker Compensation Agreement and Escrow Instructions form is
an agreement between the listing broker and the selling broker, determining the commission split that
will be paid to the _______________________.
Choice 1: Selling brokerCORRECT CHOICE
Choice 2: Listing broker
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Choice 3: Escrow company
Choice 4: None of the above
Student Answer: Selling broker
70. Question Asked: The division and subsequent sale of real property is governed by the
___________________________.
Choice 1: Subdivision Map Act
Choice 2: Subdivided Lands Act
Choice 3: Both a and b are correctCORRECT CHOICE
Choice 4: Neither a nor b is correct
Student Answer: Both a and b are correct
71. Question Asked: The seller must provide the buyer with a Lead-Based Paint Notice as an attachment
to the purchase contract if the residential property was constructed _________________.
Choice 1: Prior to 1998
Choice 2: Prior to 1988
Choice 3: Prior to 1978CORRECT CHOICE
Choice 4: All of the above
Student Answer: Prior to 1978
72. Question Asked: Liquidated damages are _____________________.
Choice 1: The damages caused by flooding
Choice 2: Paid for not fulfilling a clause or condition in the contract
Choice 3: Agreed to in advance and stated in the contract
Choice 4: Both b and c are correctCORRECT CHOICE
Student Answer: Both b and c are correct
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73. Question Asked: Which of the following forms details the total cost of the purchase, including
monthly payments?
Choice 1: Buyer's Inspection Advisory
Choice 2: Estimated Buyer's CostsCORRECT CHOICE
Choice 3: Notice to Seller to Perform
Choice 4: None of the above
Student Answer: Estimated Buyer's Costs
74. Question Asked: To be called a REALTOR a licensee must be _____________________.
Choice 1: A member of the National Association of Realtors (NAR)CORRECT CHOICE
Choice 2: A member of the State Bar of California
Choice 3: A broker
Choice 4: None of the above
Student Answer: A member of the National Association of Realtors (NAR)
75. Question Asked: Police power provisions are laws created to benefit _____________________.
Choice 1: Health
Choice 2: Safety
Choice 3: Morals
Choice 4: All of the aboveCORRECT CHOICE
Student Answer: All of the above
76. Question Asked: Real estate assistants who choose to become notary publics must
__________________.
Choice 1: Also have a brokers license
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Choice 2: Maintain an official record called a notary journal
Choice 3: Use an official seal of notary
Choice 4: Both b and c are correctCORRECT CHOICE
Student Answer: Both b and c are correct
77. Question Asked: The DRE salespersons exam ________________________.
Choice 1: Takes three hours and fifteen minutes
Choice 2: Has 150 questions
Choice 3: Requires a score of 70% to pass
Choice 4: All of the aboveCORRECT CHOICE
Student Answer: All of the above
78. Question Asked: A Conditional Salespersons License expires after __________________.
Choice 1: 6 months
Choice 2: 18 monthsCORRECT CHOICE
Choice 3: One year
Choice 4: Four years
Student Answer: 18 months
79. Question Asked: A real estate broker who wants to include negotiation of loans for prospective
borrowers and the sale of trust deeds secured by real property will need ___________________.
Choice 1: A real property security dealer's endorsementCORRECT CHOICE
Choice 2: To speak several languages
Choice 3: A law degree
Choice 4: All of the above
Student Answer: A real property security dealer's endorsement
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80. Question Asked: The Real Estate Settlement Procedures Act (RESPA) covers the sale of
_________________________.
Choice 1: 16 or more units
Choice 2: One-to-four residential unitsCORRECT CHOICE
Choice 3: Income producing property
Choice 4: None of the above
Student Answer: None of the above
81. Question Asked: The state law that prohibits steering and blockbusting is _____________________.
Choice 1: The Unruh Civil Rights ActCORRECT CHOICE
Choice 2: The Redlining Prohibition Act
Choice 3: The Federal Civil Rights Act
Choice 4: None of the above
Student Answer: None of the above
82. Question Asked: The form that is often referred to as FRPTA is the ______________________.
Choice 1: Real Estate Transfer Disclosure Statement
Choice 2: Natural Hazard Disclosure Statement
Choice 3: Sellers Affidavit of Non-foreign Status and/or California Withholding ExemptionCORRECT
CHOICE
Choice 4: None of the above
Student Answer: None of the above
83. Question Asked: If there are more than two counter offers, an agent/broker should
________________.
Choice 1: Lower his or her commission
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Choice 2: Ask the Real Estate Commissioner for advice
Choice 3: Start from scratch and rewrite the contractCORRECT CHOICE
Choice 4: Have the final counter offer notarized
Student Answer: Start from scratch and rewrite the contract
84. Question Asked: Copies of the listing agreement must be given to the signing parties
_________________.
Choice 1: At the time signatures are obtainedCORRECT CHOICE
Choice 2: Within 30 days of signing
Choice 3: Within 90 days of signing
Choice 4: None of the above
Student Answer: At the time signatures are obtained
85. Question Asked: Death does not cancel escrow because ______________________.
Choice 1: It is binding on the heirs (estate)
Choice 2: Of the prior agreed-to contract
Choice 3: Both a and b are correctCORRECT CHOICE
Choice 4: Neither a nor b is correct
Student Answer: Both a and b are correct
86. Question Asked: Character, capacity, and capital are called the three Cs of ________________.
Choice 1: Salesmanship
Choice 2: CreditCORRECT CHOICE
Choice 3: Real estate
Choice 4: Competition
Student Answer: Credit
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87. Question Asked: Which of the following is TRUE concerning real estate advertising?
Choice 1: Maintaining a company website is rarely worth the time, effort or money.
Choice 2: Yellow page directories are a not a cost effective method of advertising.
Choice 3: The most favored advertising media is the newspaper.CORRECT CHOICE
Choice 4: All of the above
Student Answer: The most favored advertising media is the newspaper.
88. Question Asked: Which of the following is the best way to keep track of the ads that bring in phone
inquiries?
Choice 1: Ad call log bookCORRECT CHOICE
Choice 2: Company phone bill
Choice 3: Reverse directory
Choice 4: Phone answering machine
Student Answer: Ad call log book
89. Question Asked: The bulk of the typical residential broker's advertising budget is spent on
___________________.
Choice 1: Novelty ads
Choice 2: Classified adsCORRECT CHOICE
Choice 3: Highway billboards
Choice 4: Skywriting
Student Answer: Classified ads
90. Question Asked: How a house looks to a passerby when compared to the rest of the neighborhood,
is called _____________________.
Choice 1: Curb appealCORRECT CHOICE
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Choice 2: View ability
Choice 3: Competitive factor
Choice 4: All of the above
Student Answer: Curb appeal
91. Question Asked: Sources of listings may include ___________________.
Choice 1: Acquaintances
Choice 2: "For sale by owner" ads
Choice 3: Foreclosures
Choice 4: All of the aboveCORRECT CHOICE
Student Answer: All of the above
92. Question Asked: In order for agents to gain access to the house, keys are often kept
_______________.
Choice 1: Under a rock
Choice 2: In a lock boxCORRECT CHOICE
Choice 3: With a neighbor
Choice 4: All of the above
Student Answer: In a lock box
93. Question Asked: If the buyer and/or seller decline to have a professional inspection in order to
reduce potential liability, its in the brokers best interest to ____________________.
Choice 1: Pass the sale on to another broker
Choice 2: Have the parties sign a waiver acknowledging their refusalCORRECT CHOICE
Choice 3: Get the inspection secretly and pay for it out of the buyers trust account
Choice 4: Forge the parties signatures on a waiver
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Student Answer: Have the parties sign a waiver acknowledging their refusal
94. Question Asked: Which of the following listing forms does a buyer NOT receive a copy of?
Choice 1: Residential listing agreement
Choice 2: Sellers advisory
Choice 3: Estimated sellers proceeds
Choice 4: All of the aboveCORRECT CHOICE
Student Answer: All of the above
95. Question Asked: The Contingency for Sale or Purchase of the Property form indicates whether a
condition of the sale depends on _____________________.
Choice 1: The sale of the buyers property
Choice 2: The sellers purchase of a replacement property
Choice 3: Both a and b are correctCORRECT CHOICE
Choice 4: Either a nor b is correct
Student Answer: Both a and b are correct
96. Question Asked: Before making an offer, which of the following forms should be provided to the
buyer detailing the total cost of the purchase, including monthly payments?
Choice 1: Buyers Inspection Advisory
Choice 2: Estimated Buyers CostsCORRECT CHOICE
Choice 3: Buyers Affidavit
Choice 4: None of the above
Student Answer: Estimated Buyers Costs
97. Question Asked: If a conflict arises between escrow instructions and the deposit receipt (purchase
contract), which document will usually prevail?
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Choice 1: The latest signed documentCORRECT CHOICE
Choice 2: The earliest signed document
Choice 3: The least complicated document
Choice 4: None of the above
Student Answer: The latest signed document
98. Question Asked: Rules for regulating real estate advertising under the Truth in Lending Act are
covered by _____________________.
Choice 1: Regulation Z.CORRECT CHOICE
Choice 2: Regulation ABC.
Choice 3: The X Files.
Choice 4: All of the above.
Student Answer: Regulation Z.
99. Question Asked: What agency regulates the issuance of liquor licenses in California?
Choice 1: California Liquor Board (CLB)
Choice 2: California Department of Real Estate (DRE)
Choice 3: California Department of Alcoholic Beverage Control (ABC)CORRECT CHOICE
Choice 4: All of the above
Student Answer: California Department of Alcoholic Beverage Control (ABC)
100. Question Asked: A seller of a business agrees not to open another business establishment similar to
that being sold for six months. Such an agreement is called a ______________________.
Choice 1: Cease and desist order
Choice 2: Covenant not to competeCORRECT CHOICE
Choice 3: Covenant of allocation
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Choice 4: Give and take agreement
Student Answer: Covenant not to compete