Chapter 1: The Salesperson (Mobility is Key)

Question 1

The California Department of Real Estate, which governs all real estate licensing and enforces the California Real Estate Commissioner’s Regulations.

Answer 1

DRE

Question 2

Calling prospective clients who are not known to the salesperson.

Answer 2

Cold calls

Question 3

The illegal mixing of the client’s and broker’s funds.

Answer 3

Commingling

Question 4

What percentage that goes to the salesperson and what percentage goes to the broker.

Answer 4

Commission split

Question 5

The illegal practice of misappropriation and using the client’s money.

Answer 5

Conversion

Question 6

Brokers (listing and selling) who agree to split commissions.

Answer 6

Cooperating Brokers

Question 7

A form of ownership considered a legal “artificial being” conducting business under its California chartered name.

Answer 7

Corporation

Question 8

The unique name that identifies a website.

Answer 8

Domain name

Question 9

When a broker represents more than one party (i.e. both buyer and seller).

Answer 9

Dual agency

Question 10

This person works under the direct control and supervision of the employer.

Answer 10

Employee

Question 11

Most brokers carry this professional liability insurance to protect themselves and their agents against catastrophic lawsuits.

Answer 11

Errors and Omission Insurance

Question 12

Listings that did not sell within the contract period.

Answer 12

Expired listings

Question 13

Brokers owe a duty of highest care and confidentiality to their principals (clients), whose interest they promote even at the cost of some greater benefit to themselves.

Answer 13

Fiduciary relationship

Question 14

A group of households within a geographical area with whom the agent stays in touch on a regular basis.

Answer 14

Geographical farm

Question 15

The goal here is to create a healthy work environment, conserve energy, and reduce pollution.

Answer 15

Green office

Question 16

This person sells results rather than time, and his or her physical conduct is not subject to the control of another.

Answer 16

Independent contractor

Question 17

This guide is found in many brokerage offices to help handle recurring situations and is designed to give rules and policies for the staff in their relationships inside and outside the office sphere.

Answer 17

Office policy manual

Question 18

A commission system where the broker pays all of the commission to the salesperson but charges the salesperson a desk fee of $750 to $1000 per month.

Answer 18

100% commission

Question 19

An association of two or more persons as co-owners of a business for profit.

Answer 19

Partnership

Question 20

A website or publication, similar to a phone book, where numbers are listed by address rather than name.

Answer 20

Reverse directory

Question 21

An inventory of items, or aids, that you may need in your daily real estate-related activities.

Answer 21

Sales kit

Question 22

An office run by one owner solely responsible for all decisions.

Answer 22

Sole proprietorship

Question 23

A list of prospects that an agent regularly contacts in the hope they will become clients.

Answer 23

Sphere of influence

Question 24

The broker usually does not charge a desk fee, but pays the agent based on a set percentage of the selling price at the close of escrow.

Answer 24

Straight commission

Question 25

Owners of a corporation each own shares of this as evidence of ownership.

Answer 25

Stock

Question 26

Hands on experience and mentoring meant to improve your performance or help you attain a required level of skill.

Answer 26

Training

Question 27

Includes all property contracts, documents, and disclosures signed or initialed by the principals (broker must keep for at least three years).

Answer 27

Transaction file

Question 28

Calls made to people you already know and which are usually more productive.

Answer 28

Warm calls

Question 29

Catalog of contract forms widely used in California and available for free to CAR members.

Answer 29

zipForms®

Question 30

How many brokers may a salesperson work for at one time?

a) Three
b) Two
c) One
d) Unlimited

Answer 30

c) One

Question 31

(Multiple Choice) Which of the following is a way to find a sponsoring broker?

a) Observe
b) Check online sites and newspaper ads in the areas you plan to service
c) Call the local Association of REALTORS®
d) All the above

Answer 31

d) All the above

Question 32

What is the best example of a “sphere of influence”?

a) Central location of a telecommunication company
b) People living outside of an agent’s city
c) Friends, family, neighbors, and business associates you know and contact regularly
d) Both b and c

Answer 32

c) Friends, family, neighbors, and business associates you know and contact regularly

Question 33

A salesperson who is actively engaged in professional real estate activities:

a) must have his or her own office.
b) must be employed by a licensed real estate broker.
c) must pay compensation directly to cooperating agents.
d) none of the above.

Answer 33

b) must be employed by a licensed real estate broker.

Question 34

A broker is required to have:

a) a trust account.
b) an accounting system (disbursement ledger).
c) an escrow company.
d) $300 of the broker’s personal funds in the trust account.

Answer 34

b) an accounting system (disbursement ledger).

Question 35

The listing agreement can best be described as a(n):

a) dual agency.
b) deposit receipt.
c) employment contract.
d) offer to buy.

Answer 35

c) employment contract.

Question 36

What is Broker’s Errors and Omission Insurance?

a) Insurance to protect the borrower against foreclosure
b) Insurance to protect the seller against buyers’ claims
c) Insurance to protect the agent and broker against buyers’ and sellers’ claims
d) Buyers’ protection against earthquake damages

Answer 36

c) Insurance to protect the agent and broker against buyers’ and sellers’ claims

Question 37

In order to open his or her own office, a real estate agent must:

a) obtain a broker’s license.
b) secure necessary capital.
c) decide on a location.
d) all of the above.

Answer 37

d) all of the above.

Question 38

What are cold calls?

a) Contacting clients late at night
b) Contacting people the agent does not know
c) Contacting people with whom the agent has done business
d) Returning calls for another agent

Answer 38

b) Contacting people the agent does not know

Question 39

All deposits from clients must be placed in a broker’s trust fund account, given to the principal, or placed in a neutral escrow depository:

a) within one week.
b) within 10 days.
c) minus a small fee.
d) within 3 business days from acceptance of offer.

Answer 39

d) within 3 business days from acceptance of offer.