Chapter 1

Question 1

The California Legislature created the __________ to oversee, regulate, administer and enforce the real estate law.

a. Department of Motor Vehicles (DMV)
b. California Bureau of Veterans
c. California Bureau of Real Estate (CalBRE)
d. Department of Agriculture

Answer 1

C

Question 2

The chief officer of the California Bureau of Real Estate (CalBRE) is the:

a. Real Estate Commissioner.]
b. President of the United States.
c. Governor of California.
d. Real Estate Solicitor.

Answer 2

A

Question 3

To be eligible for a broker or agent license, the applicant must:

a. provide proof of legal presence in the U.S.
b. complete the mandatory education.
c. pass the qualifying exam.
d. All of the above.

Answer 3

D

Question 4

All real estate brokers and sales agents must complete at least __________ of continuing education (CE) every four years to renew a license issued by the California Bureau of Real Estate (CalBRE).

a. 15-Hours
b. 30-Hours
c. 45-Hours
d. 50-Hours

Answer 4

C

Question 5

The __________ is available to individuals who have obtained a judgment against a licensee and are unable to recover the judgment from the licensee for losses caused while acting as an agent.

a. Real Estate Recovery Fund
b. Broker Recovery Fund
c. Homeowner Relief Fund
d. Borrower Education Fund

Answer 5

A

Question 6

A residential mortgage loan is any loan primarily for personal, family or household use, known as a:

a. consumer purpose loan.
b. public project loan.
c. adjustable rate mortgage (ARM).
d. Zero Ability to Pay (ZAP) loan.

Answer 6

A

Question 7

Agency in real estate related transactions includes relationships between brokers and their:

a. principals.
b. agents.
c. Both a. and b.
d. A real estate broker is never an agent.

Answer 7

C

Question 8

A broker’s representation of a client, such as a buyer or seller, is properly undertaken:

a. with an oral agreement only.
b. through coercion.
c. on a written employment agreement signed by both the client and the broker.

d. All of the above.

Answer 8

C

Question 9

The Agency Law Disclosure in targeted transactions must be attached to:

a. purchase agreements.
b. a seller’s listing agreement.
c. exchange arrangements.
d. All of the above.

Answer 9

D

Question 10

Should a seller’s agent fail to deliver the Agency Law Disclosure on a targeted transaction, they risk:

a. payment of a $1,000 fine.
b. the loss of their fee.
c. jail time.
d. All of the above.

Answer 10

B