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California Real Estate Practice - Questions
and Answers | 100% Correct Answers |
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(1) 1. The real estate marketplace could BEST be described as being A. homogeneous B. stratified C. perfect D. uninfluenced by emotion - ✔✔B. stratified (based on price) (1) 2. Most real estate agents are primarily engaged in which area of activity A. residential property B. raw land and lots C. commercial property D. development - ✔✔A. residential property (1) 3. The IRS will treat real estate salespeople as independent contractors if 3 criteria are met. Which is not a criteria A. The salesperson's reimbursement is solely based on sales, not hours worked B. The salesperson represents himself as an independent contractor when dealing with third parties C. There is a written contract stating that the salesperson will be treated as an independent contractor for tax purposes D. The salesperson is licensed as a real estate agent - ✔✔B. The salesperson represents himself as an independent contractor when dealing with third parties ( merely representing oneself as an independent contractor would be a violation of disclosure requirements and is not considered to be an IRS criteria) (1) 4. A broker ordinarily would be liable to salespeople for
A. unemployment compensation B. workers' compensation C. Social Security contributions D. none of these - ✔✔B. workers' compensation (for work related injuries) (1) 5. In choosing a broker, a new licensee should be LEAST interested in an office that A. has a high percentage of successful people B. has a good library of books, tapes, and videos for training C. offers 100% commission D. is a member of a local multiple listing service - ✔✔C. offers 100% commission (new licensees should remember training is more important than commission split) (1) 6. The BEST way to learn is to A. listen to what others say B. read instructional material C. watch what others do D. use the ideas you observe or read about - ✔✔D. use the ideas you observe or read about (by using ideas, they become yours) (1) 7. Which of the following statements is true about role-playing A. Role-playing situations are limited only by our own imagination B. Role-playing can be verbalized or nonverbalized C. Role-playing exercises can involve more than one person D. All of these - ✔✔D. All of these
C. market allocations D. a tie-in agreement - ✔✔A. a group boycott (2) 2. Ethics' relationship to law is that A. if an act is illegal it is also unethical B. ethics tend to precede the law C. ethics and the law both set minimum standards for behavior D. what is ethical is legal - ✔✔B. ethics tend to precede the law (2) 3. Which of the following phrases would be considered nondiscriminatory in an advertisement for a rental A. Christian family B. Prefer working married couple C. Just two blocks to St. Michael's D. None of these - ✔✔D. None of these (2) 4. A broker with a disabled employee widened the doorway to the restroom to accommodate a wheelchair. This work was performed to comply with A. Civil Rights Act of 1866 B. Americans with Disabilities Act C. Rumford Act D. Fair Housing Amendment Act of 1988 - ✔✔B. Americans with Disabilities Act (2) 5. The Civil Rights Act of 1866 specifically covers what type of discrimination A. Sex
B. Marital status C. Age D. Race - ✔✔D. race (2) 6. A broker showed African American prospective buyers homes in African American and racially mixed neighborhoods. He would show African American prospects homes in predominantly Caucasian areas only if the prospects specifically requested to see homes in those areas. The broker's action would be described as A. illegal B. unethical C. steering D. all of these - ✔✔D. all of these (2) 7. A broker refused to show a young Hispanic family of five a condominium about which they had inquired. The broker's action would be proper if A. the broker considered the unit too small for the family B. there were no other children in the development C. the development has an age exemption because all occupants are 55 years of age or older D. 70% of the units are occupied by elderly - ✔✔C. the development has an age exemption because all occupants are 55 years of age or older (2) 8. A landlord can properly refuse to accept an applicant because the applicant A. has a guide dog and the apartment is on the fourth floor B. is a single but obviously pregnant woman C. appears to be gay and the landlord is afraid of catching AIDS D. None of these - ✔✔D. None of these
(3) 3. Which of the following statements regarding agency disclosure is TRUE A. The confirmation of agency must be in writing B. The three steps of the disclosure process are disclose, elect, confirm C. The selling agent must confirm the agency before the buyer makes an offer D. All of these are true - ✔✔D. All of these are true (3) 4. Which seller(s) must provide a Real Estate Transfer Disclosure Statement A. The seller of a lot B. The seller of a 4-unit apartment building C. The seller of a 16-unit apartment building D. All of these - ✔✔B. The seller of a 4-unit apartment building (3) 5. Under Easton, an agent's duty of inspection and disclosure covers A. all types of property B. accessible and inaccessible areas C. a visual inspection and known or should be known defects D. none of these - ✔✔C. a visual inspection and known or should be known defects (3) 6. Which statement regarding earthquake safety disclosure is TRUE A. It applies to 1-4 unit residential properties B. It applies only to homes built before 1930 C. The buyer can waive her right to a hazard report D. Delivery of a copy of The Homeowner's Guide to Earthquake Safety is evidenced by an affidavit from the agent - ✔✔A. It applies to 1-4 unit residential properties
(3) 7. The buyers sign that they have received a booklet relating to A. environmental hazards B. floods, tornados, and earthquake C. foreclosure rights D. rescission rights - ✔✔A. environmental hazards (3) 8. Brownfields is a term related to A. insect infestation B. soil contamination C. undeveloped acreage D. seller financing - ✔✔B. soil contamination (3) 9. The purpose of the Subdivided Lands Law is to A. prohibit premature subdivisions B. set minimal physical standards C. protect purchasers from fraud D. allow for a uniform growth pattern - ✔✔C. protect purchasers from fraud (3) 10. A right of rescission is provided by law for purchase agreements involving all EXCEPT A. 1-4 unit residential properties B. time-shares C. undivided interest subdivision D. both b and c - ✔✔A. 1-4 unit residential properties
D. A call on a For Sale by Owner ad to solicit a sale listing - ✔✔D. A call on a For Sale by Owner ad to solicit a sale listing (4) 5. Which classified ad category is likely to provide listing leads A. Homes for rent B. Leases/options to purchase C. Mobile homes for rent D. All of these - ✔✔D. All of these (4) 6. Legal notices provide good leads for listings. Which is NOT a legal notice A. Eviction B. Foreclosure C. Probate D. Vacancy - ✔✔D. Vacancy (4) 7. Which would be an indication that an owner might be interested in selling an income property A. A high vacancy rate B. Tenant evictions C. Code violations D. All of these - ✔✔D. All of these (4) 8. Endless chain refers to A. the long term effects of advertising B. obtaining additional prospects from every lead C. the fact that your buyer will eventually become a seller
D. the fact that most buyers are sellers and sellers are buyers - ✔✔B. obtaining additional prospects from every lead (4) 9. The term "farming" as used in real estate refers to A. determining what your market area will be B. operation by season, such as a listing season, open house season, selling season, and so forth C. specialization in a particular field of real estate activity D. working or prospecting a geographic area or special interest area for buyers and sellers - ✔✔D. working or prospecting a geographic area or special interest area for buyers and sellers (4) 10. An example of a nongeographic farm would be specialization in A. mobile homes B. income property C. lots D. any of these - ✔✔D. any of these (5) 1. A CMA is BEST described as A. a formal appraisal B. the cooperative marketing approach of multiple listings C. a reflection of the reality of the marketplace D. the comparative mortgage analysis performed by agents in advising buyers as to lender and loan type
- ✔✔C. a reflection of the reality of the marketplace (5) 2. In making your recommendation of the list price for a single family home, the MOST important portion of the analysis deals with A. list prices of the homes on the market now
A. gross sale price B. net sale price C. net profit D. seller's net proceeds - ✔✔D. seller's net proceeds (5) 7. The principle reason owners try to sell their homes without an agent is A. to have a quick sale B. to save the commission C. to be able to pick the buyer D. none of these - ✔✔B. to save the commission (5) 8. Your listing presentation material should A. be organized to follow your listing presentation B. not be used in lieu of a verbal presentation C. b helpful in selling an owner on the concept of listing in general and listing with your firm in particular D. be all of these - ✔✔D. all of these (5) 9. Which statement is the BEST approach to take when selling the benefits of listing with a small office A. "We try harder because of the competition" B. "All we need to find is one buyer, and even we can do that" C. "We need the business more than the large firms do" D. "We specialize in a small number of select properties" - ✔✔D. "We specialize in a small number of select properties" (5) 10. Which would be the MOST effective statement to make during a listing presentation
A. Last year we sold 26% of the listings we took during the listing period B. Our office has six full-time and nine part-time salespeople C. Last year our average sale was at 86% of the list price D. Our average time to sell was 32 days last year compared with a MLS average time to sell of 54 days - ✔✔D. Our average time to sell was 32 days last year compared with MLS average time to sell of 54 days (6) 1. A valid exclusive listing requires A. a lawful purpose B. mutual consent C. consideration D. all of the above - ✔✔D. all of the above (6) 2. An agent sold a property where the owner had verbally agreed to pay a commission. The agent would be legally entitled to a commission from the owner for the sale if the agent had A. relied on the verbal promise B. made a written memorandum of the agreement signed by the agent C. obtained a valid buyer listing agreement D. none of the above - ✔✔D. none of the above (6) 3. Which listing would you be LEAST likely to advertise A. Nonresidential property B. An open listing C. An exclusive-agency listing D. An exclusive-right-to-sell listing - ✔✔B. An open listing
(6) 8. The type of listing that has the greatest likelihood of resulting in a sale would be a(n) A. open listing B. exclusive-agency listing C. exclusive-right-to-sell listing D. reduced-fee listing - ✔✔C. exclusive-right-to-sell listing (6) 9. An owner tells you that Agent Jones told her she could get far more for her home than your CMA indicates. What is your BEST response A. "Many unethical agents will promise the moon to get listings and then fail to perform" B. "I am willing to take the listing at that price, but if we don't attract buyers we will reevaluate the price" C. "I don't believe it. No agent who knows the market would set a price that high" D. "I think my comparative market analysis covers all recent comparables and clearly shows the market value. May I please look at the comparative market analysis that Agent Jones prepared for you?" - ✔✔D. "I think my comparative analysis covers all recent comparables and clearly shows the market value. May I please look at the comparative market analysis that Agent Jones prepared for you?" (6) 10. By taking a listing at a low fee that will result in a less than normal fee for any cooperating broker, you are benefiting A. your office B. a selling office C. the owner D. none of the above - ✔✔D. none of the above (7) 1. The reason that an expired listing was not extended with the original listing office MOST likely is dissatisfaction with A. the commission percentage
B. communications C. price D. the length of listing - ✔✔B. communications (7) 2. Agent advice to owners on showing their home would NOT include A. instructions to be present so they can volunteer information B. cleaning instructions C. landscaping instructions D. repair instructions - ✔✔A. instructions to be present so they can volunteer information (7) 3. When there has been little, if any, interest in a property, the listing salesperson should A. convey this information B. tell the owner the property is priced 10% too high C. wait until there is something good to report D. tell the owner you are expecting an offer - ✔✔A. convey this information (7) 4. The Equator Platform is a system for A. locating property B. loan approval C. short-sale approval D. a title search - ✔✔C. short-sale approval (7) 5. You want owners to give you neighborhood information A. to keep the owners busy
B. is overpriced C. has a very limited use D. has been reduced in price - ✔✔A. is in a large market with hundreds of listings (7) 10. Advantages of open houses include A. pleasing owners because they indicate activity B. locating buyers for other property C. obtaining leads for listings D. all of these - ✔✔D. all of these (8) 1. The AIDA approach does NOT include A. attention B. demand C. interest D. action - ✔✔B. demand (8) 2. Personal advertising includes A. name tags B. blog websites C. car signs D. all of these - ✔✔D. all of these (8) 3. What does the term logo refer to A. Your firm name
B. An identifying design or symbol C. Length of gross opportunity, which refers to the time span of attention generated by an ad D. - ✔✔B. An identifying design or symbol (8) 4. Blind ads are ads that fail to include A. a price B. the address of property C. broker identification D. property specifics - ✔✔C. broker identification (8) 5. The MOST cost-effective advertising medium for selling a home likely would be A. television B. the internet C. classified newspaper ads D. billboards - ✔✔B. the internet (8) 6. Classified ads are different from most other forms of real estate advertising because they are A. actually sought ought by the reader B. infective for expensive homes C. less reader-selective than other printed ads D. unemotional - ✔✔A. actually sought ought by the reader (8) 7. Real estate professionals know that ads that tell about the problems of a property are A. a waste of advertising dollars
