Chapter 3

Question 1

The AVID asks what time of day and what were the weather conditions when you inspected the property. Why?

Answer 1

The weather conditions and the time of day will make a difference. If it was sunny but the roof was leaking, you would not know because it was not raining of the day you inspected the property.

Question 2

Any fact that would influence the decision of a reasonably prudent person is known as a …..?

A. Objective fact
B. Subjective fact
C. Substantial fact
D. Material fact

Answer 2

D. Material fact

Question 3

A person in a position of trust and confidence is known as a ……?

A. Fiduciary
B. Partner
C. Employee
D. Client

Answer 3

A. Fiduciary

Question 4

All disclosures involved in a real estate transaction should be in writing….?

A. T (True)
B. F(False)

Answer 4

A. True

Question 5

Anything greater than four dwelling units is considered commercial real estate…..?

A. T (True)
B. F (False)

Answer 5

A. T (True)

Question 6

A mandated disclosure is a disclosure that is required by law…..?

A. T (True)
B. F (False)

Answer 6

A. T (True)

Question 7

A broker never owes fiduciary duties to a buyer…..?

A. T (True)
B. F(False)

Answer 7

B. (False)

Question 8

Agency exists between the principal and …..?

A. Real estate salesperson
B. Customer
C. real estate broker
D. Client

Answer 8

C. Real Estate Broker

Question 9

Who owns any listings obtained by a real estate salesperson?

A. The salesperson only
B. Both the salesperson and the salesperson’s sponsoring broker
C. The principal only
D. The salesperson’s sponsoring broker only

Answer 9

D. The salesperson’s sponsoring broker only

Question 10

An agent who works only for the buyer or the seller is known as a …..?

A. Single-agent
B. Dual agent
C. Intermediary
D. Associate agent

Answer 10

A. Single-Agent

Question 11

Dual agency is illegal in California …..?

A. T
B. F

Answer 11

B. False

Question 12

Which of the following occurs when two agents working under the same sponsoring broker represent both sides in a transaction……?

a. Single Agency
B. Mandated Agency
C. Associated Agency
D. Duel Agency

Answer 12

D. Duel Agency

Question 13

What is the final step in disclosing an agency relationship…..?

A. Disclose
B. Record
C Confirm
D. Elect

Answer 13

C. Confirm

Question 14

That duty owed by an agent to act in the highest good faith toward the principal and not to obtain any advantage over the latter by the slightest misrepresentation, concealment, duress or pressure is known as a……?

A. Disclosed duty
B. Legal duty
C. Fiduciary duty
D. Express duty

Answer 14

C. Fiduciary duty

Question 15

The real estate broker is responsible for completing the AVID form….?

A. T (True_
B. F. (False)

Answer 15

A. T (True)

Question 16

When conducting their visual inspection, the real estate agent is required to check the crawl spaces roof….?

A. T (True)
B. F (False)

Answer 16

B. False

Question 17

The weather conditions at the time of the visual inspection must be described on the AVID form….?

A. T
B. F

Answer 17

A. True

Question 18

Any agent involved in a residential transaction must disclose agency….?

A. T (True)
B. F (False)

Answer 18

A. True

Question 19

Purchasers of residential real estate are entitled to a Real Estate Transfer Disclosure Statement….?

A. T (True)
B. F (False)

Answer 19

A. True

Question 20

The natural hazards disclosure is required for…..?

A. Commercial properties
B. Special - Use properties
C. Residential properties
D. Multi-family properties

Answer 20

C. Residential Properties

Question 21

Which of the following must be double-braced in California….?

A. Plumbing fixtures
B. Celling tiles
C. Large Windows
D. Water heaters

Answer 21

D. Water Heaters

Question 22

Which of the following is an indication of a water problem in the house….?

A. Sloped floors
B. Mold
C. Cracks in the foundation
D. All of the Above

Answer 22

B. Mold

Question 23

TILA was enacted in…..? (Truth In Lending Act)

A. 1964
B. 1968
C. 1974
D. 1988

Answer 23

B. 1968

Question 24

TILA is also known as…..?

A. REgulation L
B. Regulation T
C. Regulation Y
D. REgulation Z

Answer 24

D. Regulation D

Question 25

A real estate broker acts as a fiduciary to the principal….?
A. T
B. F

Answer 25

A. T (True)

Question 26

An agency relationship in which the agent acts concurrently for both of the principals in a transition is known as ……?

A. Single Agency
B. Dual Agency
C. Implied Agency
D. Partial Agency

Answer 26

B. Dual Agency

Question 27

A real estate salesperson operates as a sub-agent to its broker….?

A. T (True)
B. F (False)

Answer 27

A. True

Question 28

The seller’s broker is responsible for completing the Transfer Disclosure Statement….?

A. T (True)
B. F (False)

Answer 28

B. False

Question 29

What are Material Facts?

Answer 29

Any fact that would influence the decision of a reasonably prudent person.

Question 30

What is a Fiduciary?

Answer 30

A person in a position of trust and confidence, as between principal and broker; broker as a fiduciary owes certain loyalty which cannot be breached under the rules of agency.

Question 31

What is a Fiduciary Duty?

Answer 31

That duty owed by an agent to act in the highest good faith toward the principal and not to obtain any advantage over the latter by the slightest misrepresentation, concealment, duress or pressure.

Question 32

What is a Dual Agency?

Answer 32

An agency relationship in which the agent acts concurrently for both of the principals in a transaction.

Question 33

What is Regulation Z?

Answer 33

The Truth in Lending Act of 1968 is United States federal law designated to promote the informed use of consumer credit, by requiring disclosures about its terms and cost to standardize the manner in which costs associated with borrowing are calculated and disclosed.