Chapter 4

Question 1

a licensed real estate broker states that a lot is 1/3 of an acre when in fact the lot is 1/4 of an acre. The agent is guilty of

Answer 1

Misrepresentation

Question 2

most real estate agencies are created by

Answer 2

agreement

Question 3

an owner listed property with broker a. Prospective buyer is found by cooperating broker B. Broker B is a

Answer 3

sub agent

Question 4

the misappropriation and use of a client’s funds by an agent is called

Answer 4

conversion

Question 5

if a seller insists on selling a home as is

Answer 5

the prospective buyer is entitled to know all defects known to the seller and real estate agent

Question 6

salesperson Schmidt works for a broker Hassan. on May 1st Schmidt takes a listing on home X for 90 days. 20 days later salesperson Schmidt transfers her license and becomes A salesperson for broker meeks. as of May 21st, the listing on home X belongs to

Answer 6

broker Hassan

Question 7

which of the following is not correct

Answer 7

real estate salespersons are able to contract directly in their own name as an agent with the seller

Question 8

all real estate licensees in California must abide by the

Answer 8

Commissioners regulations

Question 9

a broker received the deposit from my buyer late Friday night with instructions to hold the check uncashed pending the seller’s acceptance of the offer. The broker decides to put it in a safe in the office for security purposes until the offer can be submitted to the seller. In doing so the broker is

Answer 9

innocent of any wrongdoing

Question 10

if a consumer feels he or she has been dealt with poorly by a licensee and loses the lawsuit in court the consumer May

Answer 10

none of the above is available as a means of restitution

Question 11

the real estate broker, in order to influence a person to buy, states that the property will absolutely double in value in 6 months. The sale takes place and six months later the property has declined in value. This broker could be considered guilty of

Answer 11

false promise

Question 12

if a real estate agent knowingly makes a substantial misrepresentation of the likely value of real property it is a

Answer 12

agency violation

Question 13

which of the following best describes the role of a broker in a real estate agency

Answer 13

a special agent

Question 14

per the real estate Commissioners regulations a broker must

Answer 14

keep a formal cash receipts cash disbursement Journal
maintain a trust fund account in a bank
maintain a minimum balance in the trust fund

Question 15

according to real estate licensing law for supervising purposes the relationship between a salesperson and a broker is

Answer 15

employer-employee

Question 16

in selling a Family Residence, an owner enlisted the aid of an unlicensed person. The owner pays for the service thus violating real estate law. Who would prosecute the unlicensed person for receiving an illegal Commission

Answer 16

district attorney in the local County

Question 17

a broker is authorized in the listing agreement to accept a deposit on behalf of the seller and receives the same from a buyer. The Broker Than uses the money received from the buyer to pay for vacation and refuses to restore the money. The person liable to the buyer for the loss would be the

Answer 17

broker and seller

Question 18

receiving a commission from both the buyer and seller without full disclosure and approval is called

Answer 18

divided agency

Question 19

the real estate Commissioners regulations do not apply to California licensed

Answer 19

appraisers

Question 20

real estate commissions are

Answer 20

negotiable

Question 21

in a real estate sale, which of the following is not considered the agent to the seller

Answer 21

*all or agent of the seller
the broker of the buyer who is authorized dual agent
dual agent
the listing broker

Question 22

the disclosure regarding real estate agency relationship form must be signed at the time of

Answer 22

agency appointment

Question 23

before giving a listing to a broker, the owner informed the broker that the roof was in bad shape. The broker later showed the house and a shirt the buyer that the house was in excellent condition without any known problems. After the first rain the home suffered heavy water damage due to the Leaky Roof. The buyers angry and will probably sue the

Answer 23

broker and the seller

Question 24

a California real estate broker finds a buyer for a property in Reno listed with a Nevada broker. / California regulations the

Answer 24

commission can be divided per agreement between the brokers

Question 25

a broker took a listing on an eight-unit apartment house and stated that it showed a 14% yield on the investment. And figuring the yield the broker unknowingly did not allow for maintenance expenses or a vacancy factor. A buyer purchase the property on the basis of the Brokers analysis. Which of the following best describes the particular violation of real estate law

Answer 25

misrepresentation

Question 26

through negligence Blondell permitted Gildea to believe that Delgado was Blondells agent when Delgado had not really been appointed by blondell. If this creats and ostendsible agency it will be by

Answer 26

estoppel

Question 27

at the time of the listing agreement the seller inform the broker that the floors beneath the wall to wall carpets were oh well showing the property to a buyer the broker stated the floors are oak. After the sale the buyer went to replace the carpet and discovered that the floors were fine. Responsibility for the mistake rests with

Answer 27

broker and seller

Question 28

which of the following is not essential in creating a real estate agency

Answer 28

amount of the commission

Question 29

conversion is a violation of real estate law and carries with it a heavy penalty. Which example best illustrates conversion

Answer 29

a broker receives offer and a $500 deposit in cash before the acceptance broker spend some money for supplies then replaces the $500 when it is time to close escrow

Question 30

the maximum dollar amount for an individual claim against the real estate Recovery Fund is

Answer 30

$50,000