CA Real Estate Practice Flashcards
Brokers have liability to their commissioned salespersons in respect to
- minimum wage requirements.
- all of these.
- unemployment insurance.
- workers compensation.
Workers Comp
For injuries.
Page 21
Which of the following statements regarding the use of goal-setting is FALSE?
- Goals should be put in writing.
- Goals should be attainable.
- You should tell someone about your goals.
- Once set, goals should never be changed.
Once set, goals should never be changed.
Goals must reflect current desires.
page 39
What are the advantages of a good time-management program?
- A release from time pressures
- All of these
- Increased income
- Improved efficiency
All of the above
Avoid wasting time and prioritize time. (page 38)
The purpose of a broker providing a sliding commission scale that rises as sales volume increases is to
- neither motivate salespeople nor retain top producers.
- retain top producers.
- both motivate salespeople and retain top producers.
- motivate salespeople.
both motivate salespeople and retain top producers.
Incentive to do more and to stay.
page 20
The following statements are all examples of abstract goals EXCEPT
I will improve my communication skills.
I will obtain three new listings each month.
I will strive to improve my sales techniques.
I will become a better salesperson.
I will obtain three new listings each month.
Specific measurable goal.
page 39
If you are going to be buying a new car for real estate sales, you should consider
- a two-door model to control the passengers.
- a full-sized, four-door car for easy entrance and exit.
- as expensive a car as possible to impress others.
- a sports car to show you are a modern person.
a full-sized, four-door car for easy entrance and exit.
Buyer’s comfort.
page 52
Which of the following statements regarding mobile home sales is TRUE?
A real estate agent can sell a mobile home with the land it is sited on.
A real estate agent can sell a mobile home in a rental park space.
A mobile home must be at least 2 years old for a real estate agent to sell it.
Both a real estate agent can sell a mobile home in a rental park space and a real estate agent can sell a mobile home with the land it is sited on
Both a real estate agent can sell a mobile home in a rental park space and a real estate agent can sell a mobile home with the land it is sited on
But a real estate agent can’t sell a mobile home that must be moved.
(page 14-15)
Using time-management to increase income, you should realize that
you should concentrate more on possibilities than probabilities.
you should divide your time equally between “A,” “B,” “C,” and “D” category activities.
you should concentrate on “D” category activities before proceeding to “B” and “C” activities.
doubling “A” time activities should double your income.
doubling “A” time activities should double your income.
That’s selling and listing opportunities is where commissions come from.
page 40
One of the requirements for a real estate salesperson to be regarded as an independent contractor by the IRS is that the
- broker-salesperson contract states that the salesperson shall be treated as an independent contractor for tax purposes.
- salesperson is not responsible to a broker.
- salesperson is not supervised by the broker.
- salesperson is paid a salary.
broker-salesperson contract
states that the salesperson shall be treated as an independent contractor for tax purposes.
Plus they must be licensed and paid only for success.
(page 20)
You can find out how things are done in your office by
checking the regulations of the Bureau of Real Estate.
studying your office procedure manual.
going on caravans.
reading the information on the back of your real estate license.
studying your office procedure manual.
Should cover what is expected and how.
page 48
The Civil Rights Act that applied only to race was the
- Civil Rights Act of 1968.
- Unruh Act.
- Rumford Act.
- Civil Rights Act of 1866.
The Civil Rights Act of 1866
The Civil Rights Act of 1866 gave rights to recently freed slaves. The Civil Rights Act of 1968 prohibited discrimination in housing based on national original, race, religion, and color. (page 68)
What is the best test to evaluate if an act is ethical?
Is it in my best interests? The Golden Rule Is it legal? Are others doing it? How would you want to be treated? (Page 62)
The Golden Rule
How would you want to be treated?
Page 62
The Real Estate Commissioner’s suggestions for professional conduct include that the agent
submit all written offers in a prompt and timely manner.
stay in close communication with clients or customers.
all of these.
report violations of the real estate law to the Bureau of Real Estate.
All of these
These are suggestions not necessarily legal duties.
page 66-67
A broker may discriminate against which type of tenant?
None of these.
One who has children.
One who has AIDS.
One who has a guide dog.
None of these
All are protected by 1988 Amendment.
page 73
Advertising a home in an area occupied solely by members of a minority group only in newspapers directed toward that minority group would be regarded as
blockbusting.
subordination.
redlining.
steering.
Steering
Directing to properties based on race.
page 71
Redlining refers to a refusal to
cooperate with other agents in designated areas.
list in designated areas.
advertise in designated areas.
loan in designated areas.
Loan in designated areas
Prohibited by Civil Rights Act of 1968 and the Holden Act.
page 71
The Civil Rights Act of 1968 prohibits
steering.
both blockbusting and steering.
neither blockbusting nor steering.
blockbusting.
both blockbusting and steering.
As well as redlining.
page 71
Redlining is prohibited by the
Holden Act.
Unruh Act.
Brown Act.
Rumford Act.
Holden Act
In addition to the Civil Rights Act of 1968.
page 77
The California Act that prohibits discrimination by all California businesses is the
Brown Act.
Holden Act.
Rumford Act.
Unruh Act.
Unruh Act Applies to businesses only.
page 76
Which of the following statements regarding ethics is TRUE?
If it is unethical, it is illegal.
If it is legal, it is ethical.
Ethics tends to precede the law.
Ethics and good business are not compatible.
Ethics tends to precede
Law
What is legal but unethical now might be illegal tomorrow.
(page 63)
The Seller Financing Disclosure Statement provided to both buyer and seller provides
credit terms.
a warning as to balloon payments.
disclosure of deferred interest.
all of these.
All of these
Plus credit information, cash out sellers, warnings, etc.
page 144-149
Compliance with environmental hazards disclosure requires
that the seller post a bond to cover damages by hazards discovered at a later date.
that the Alquist-Priolo Act be complied with.
the buyer sign that they have received a booklet titled Environmental Hazards: A Guide for Homeowners, Buyers, Landlords, and Tenants.
chemical tests of the soil for all dangerous contaminants.
the buyer sign that they have received a booklet titled Environmental Hazards: A Guide for Homeowners, Buyers, Landlords, and Tenants.
Explains possible hazards.
(page 137)
A Transfer Disclosure Statement must be provided to the buyer when the sale involves
a vacant lot.
a 3-unit residential building.
a commercial building.
all of these.
A 3-unit residential building
1 to 4 residential.
page 116
An agent’s inspection under Easton v. Strassburger (as codified by state statutes) applies to
1 to 4 residential units.
all of these.
visual inspections.
accessible areas only.
All of these
With reasonable expertise of a licensee.
page 124
Real estate disclosure laws apply
to buyer disclosure only.
to disclosures to principals only.
primarily for 1 to 4 residential units.
uniformly to all real estate transactions.
primarily for 1 to 4 residential units.
Such as a Transfer Disclosure Statement.
page 107
A fiduciary relationship applies to a real estate licensee and to
the Bureau of Real Estate.
his or her principal.
all parties the agent has dealings with.
buyers only.
His or her principal
Relationship of Trust.
page 108-109
The earthquake safety disclosure statement
applies to 1 to 4 residential units.
is voluntary.
both applies to 1 to 4 residential units and must be signed by buyer and seller.
must be signed by buyer and seller.
both applies to 1 to 4 residential units and
Residential Earthquake Hazards Report.
Page 124
The proper order of the steps taken in agency disclosure is
confirm, elect, disclose.
disclose, elect, confirm.
elect, disclose, confirm.
elect, confirm, disclose.
disclose, elect, confirm.
Disclose as soon as possible, confirm with offer.
page 119-120
An agent is required to disclose to a buyer that:
the property has earthquake weakness if it was built before 1960.
there was a death by murder or suicide on the property more than 3 years ago.
a former owner had AIDS.
there is a licensed care facility that serves three people across the street from the property.
the property has earthquake weakness if it was built before 1960.
For a property built before 1960, earthquake weakness must be disclosed. Disclosure of AIDS is never required. Law provides that agents are not liable for failure to disclose any deaths on the property that occurred more than three years ago. Licensed care facilities near the property that serve 6 or fewer people need not be disclosed.
(Page 128)
A selling agent must comply with agency disclosures to the buyer
prior to qualifying the buyer.
before the buyer executes an offer.
prior to showing property.
upon delivery of the seller’s acceptance.
before the buyer executes an offer.
It is included in offer form.
page 118
Non-geographic farms include
a particular mobile home park.
ethnic groups.
a particular subdivision.
properties in close proximity.
Ethnic groups
Also type of property.
page 215
The CAN-SPAM Act applies to
unsolicited fax messages.
home solicitation phone calls.
restrictions on e-mail solicitations.
direct mail solicitations.
restrictions on email solicitation
Requires a subject heading, indicating that it is an advertisement with an opt-out mechanism, etc.
page 193
The fine for making a single unauthorized solicitation call to a residential number listed on the do-not-call registry can be up to
$11
$110
$1,100
$16,000
$16,000
However, recently updated to $40,000 per call.
page 189
A geographic farm could be a
special interest of buyers.
particular subdivision.
type of property.
particular ethnic group.
Particular subdivision
Physical boundaries.
page 213
In real estate, the term “farming” refers to
advertising by season.
working an area for buyers and sellers.
using one period of time to list and another period of time to sell in a never-ending cycle.
delegating paperwork to others.
Working an area for buyers and sellers
Or working an area for a type of property or buyer group.
page 213
A reverse directory allows an agent to have the
address from the occupant’s name.
legal description from the address.
owner’s name from the tax number.
occupant’s name from the address.
Occupant’s name from the address
Address to occupant directory.
page 187
Prospecting from legal notices can be effective. Which of the following is NOT a legal notice?
For Sale By Owner
Code violations
Probate
Evictions
For sale by owner
Not in a legal paper.
page 199
The phrase “centers of influence” refers to
properties that set the neighborhood value.
influential people in the community.
the factor that makes a neighborhood cohesive.
institutions within an area that influence behavior.
Influential people in the community
Who can help you in prospecting.
page 209
The “endless chain” refers to
staying with a prospect until you have a contract.
prospecting your farm area on a continuous basis.
always selling a new home to the seller.
asking every prospect to recommend another prospect.
asking every prospect to recommend another prospect.
With a constant stream of prospects.
page 207
A major reason owners attempt to sell without an agent is to
avoid seller disclosures.
save paying the commission.
have a quicker sale.
get a higher gross price.
Save paying the commission
They hope to keep fee for themselves.
page 190
If your firm is small, to obtain a listing when competing against a large firm you should emphasize that
you will work just as hard as the large firm.
it is better to help small businesses.
because you concentrate on a small number of select properties, you are able to give more individual attention to the property.
you need it more than the large firm.
because you concentrate on a small number of select properties, you are able to give more individual attention to the property.
Turn perceived negative into a positive.
(Page 294)
In describing sales successes, it would NOT be advantageous to point out that
your average sale is at 94.5% percent of list price while the average for your MLS is 87.3%.
listings with your firm have a 30% greater chance of being sold than the average for your local MLS.
the average time from listing to sale for your firm is 42 days less than the average sale in your MLS.
your firm sells 50% of its listings.
your firm sells 50% of its listings.
Since it indicates that you fail to sell 50 percent of your listings.
Page 253
Serious buyers contact real estate agents because
they want to quickly locate property that meets their needs.
neither agents have inventory nor they want to quickly locate property that meets their needs.
both, the agents have inventory and the buyers want to quickly locate property that meets their needs.
agents have inventory.
both, the agents have inventory and the buyers want to quickly locate property that meets their needs.
It saves time and buyers don’t have to deal with owners directly.
(Page 238-239)
In preparing estimated seller proceeds, you should remember that
owners who get less than they expected to receive from a sale are likely to be unhappy with you.
it is better to estimate costs a little on the high side than the low side.
because owners want to get as much as possible, you should underestimate costs so the net will be greater.
both, an owner who gets less than they expected to receive from a sale is likely to be unhappy with you, and it is better to estimate costs a little on the high side than the low side.
both, an owner who gets less than they expected to receive from a sale is likely to be unhappy with you, and it is better to estimate costs a little on the high side than the low side.
An unhappy seller could mean a sale that does not close.
(Page 231)
As an indication of value, which of the following would BEST indicate the market value of a home?
Listings that expired unsold
Similar properties sold within the past 2 years
Similar properties sold within the past 3 months
Current listings for similar properties
Similar properties sold within the past 3 months
Recent data is most reliable.
Page 223
A listing presentation manual should include
information about yourself.
benefits of listing.
all of these.
information about your firm.
All of these
Must sell owner on a listing and on you and your firm.
Page 231-232, 243
A comparative market analysis would be LEAST valuable in indicating market value for a
vacant lot.
single-family residence.
condominium.
commercial property.
Commercial property
Need adequate number of comparable sales.
Page 222-223
The likelihood of a sale within 90 days is
none of these.
increased by a list price below that indicated by the comparative market analysis.
decreased by listing above the market value.
both increased by a list price below that indicated by the comparative market analysis and decreased by listing above the market value.
both increased by a list price below that indicated by the comparative market analysis and decreased by listing above the market value.
Buyers are attracted to bargains, not overpriced property.
(Page 228,230)
Which of the following statements regarding the time it takes for a property to sell is TRUE?
Properties listed below market value tend to take longer to sell than properties listed at market value.
Properties listed above market value tend to sell faster than properties listed at prices closer to market value.
Because buyers seldom offer the list price, the list price has no effect on time to sell.
None of these.
None of these.
Direct relationship between list price and time to sell.
Page 224-225, 228
Benefits that an owner receives by listing with an agent include
the benefit of multiple listing.
promotion and advertising paid by the agent.
qualification of prospects.
all of these.
All of these.
Agents sell while owners seldom sell themselves.
Page 239
A broker never saw, talked to, or corresponded with a buyer, yet earned a commission. What type of listing did the broker have?
Open listing
Exclusive agency listing
Any of these
Exclusive authorization to acquire real property listing
Exclusive Agency Listing
If any agent sells the listing, the agent is paid.
Page 274
Written notice that the amount of commission is negotiable is required in
every nonresidential listing.
every listing.
listings of 1 to 4 residential units.
every residential listing.
Listings of 1 to 4 residential units
Commission is negotiable and not set by law.(Page 277)
By initialing the dispute resolution clause in the exclusive right-to-sell listing the seller and broker agree to
waive their rights to arbitrate.
nonbinding arbitration of disputes.
arbitrate disputes if directed to by the court.
binding arbitration of disputes.
binding arbitration of disputes.
If not initialed, then the matter can go to the courts.
Page 281
Owner Adams has a listing in force with Broker Baker. Owner Adams sold the house without the aid of Broker Baker. What kind of listing did Broker Baker have if Owner Adams has no commission obligation to Broker Baker?
Either Open or Exclusive agency
Exclusive agency
Exclusive right-to-sell
Open
Either open or exclusive agency
A commission paid only if agent makes sale.
Page 264-272
What would be a word or words to use in a listing presentation that denotes a benefit?
Agency representation
Listing
Commission
Cost
Agency representations
Listing has a connotation of paying a commission.
Page 287-288
Which of the following listings does NOT require the agent to use diligence to locate a buyer?
Net
Exclusive agency
Exclusive right-to-sell
Open
Open
It is a unilateral contract and the agent has not agreed to use diligence.
Page 264
What type of listing is legal in California, but is considered illegal in some other states?
Net
Exclusive right-to-sell
Exclusive agency
Open
Net
Legal but unethical.
Page 272-273
The broker did not give the principal a copy of the listing. The broker did not violate law or regulations because the listing was an
exclusive right to represent listing.
exclusive right to sell net listing.
open listing.
exclusive agency listing.
Open listing
Only required for exclusive listings.
Page 264
A listing where the licensee is subject to disciplinary action for demanding a fee would be
a listing having a safety clause.
an open listing.
an exclusive listing without a termination date.
a listing where the agent was not authorized to accept a deposit.
An exclusive listing without a termination date
Must have a definite termination date.
Page 266
To be enforceable, which element is required in an exclusive right-to-sell listing?
All of these
Lawful purpose
Writing
Consideration
All of these
Contract requirements plus Statute of Frauds.
Page 263