Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

CA Salesperson Exam > Practice & Disclosure > Flashcards

Practice & Disclosure Flashcards

1
Q

Redlining

A

Refusing to offer or limiting loans in certain areas because of crime rates or the ethnic background of its residents

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Familial Status

A

kids/no kids discrimination- 1988 added dependent children un 18, pregnant women, and those fighting for child custody

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Exceptions to Fair Housing Act:

A
  1. For Sale by Owners (no broker, no discriminitory advertising)
  2. Owners renting owner-occupied building with 4 units or less (no broker, discriminatory advertising)
  3. Private clubs may restric lodging
  4. Religious organizations may give preference to members (cannot deny access to members)
  5. Senior housing can refuse occupancy to family w children if 80% of units occupied by someone 55 or older
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Blockbusting

A

panic selling- suggesting people should sell because a certain group of people are moving into an area

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Civil Rights act of 1866

A

prohibits discrimination based on race in the sale and rental of all property

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Federal Fair Housing Act of 1968- Acronym

A

FReSH CoRN Familial Status Race (equal) Sex Handicap Color (opportunity) Religion National Origin

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Classifications not covered under Fair Housing Act, but may be covered by local fair housing laws:

A

sexual orientation Age Marital Status Occupation (eg student)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Steering

A

Channeling potential buyers to or away from certain areas based on discrimination

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Brokers and wokers compensation insurance

A

not required

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Unruh Civil Rights Act

A

Civil rights law specific to California that outlaws discrimination based on sex, race, color, religion, ancestry, national origin, age, disability, medical condition, genetic information, marital status, or sexual orientation.

It prohibits the practices of steering, blockbusting, and panic selling.

1959

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

The ban on lead-based paint for use in residential homes applies to properties built after what year?

A

1978

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

When a prospective buyer receives a report regarding lead paint in a property, how long does he have to test for lead paint?

A

10 days

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Which of the following must be in ten point bold font or larger on an agency listing agreement?

A

A statement identifying that commission amounts are negotiable

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

The penalty for a first violation of Federal Fair Housing laws can result in a fine of up to how much?

A

$10k

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

If a loan officer is discriminating against someone on the basis of her marital status, what law is she violating?

A

Equal Credit Opportunity Act

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

doctrine of respondeat superior

A

The doctrine of respondeat superior remains the basis for holding a broker liable for the negligent and even the intentional acts of salespersons or broker associates

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

In what year was the real estate broker license expanded to include mineral, oil, and gas transactions?

A

1994

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Mineral, oil, and gas subdivisions consist of how many speculative parcels of land?

A

5 or more

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

The ________ Act governs the design and creation of subdivisions in California.

A

Subdivisions Map Act

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Subdivisions of what size are exempt from California’s Subdivided Lands Law?

A

4 parcels or less

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

In what year did it become a requirement to have a real estate license to participate in the sale of business opportunities?

A

1966

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

The California Real Estate Recovery Account was established to do which of the following?

A

Help claimants against a licensed real estate professional who are unable to secure reimbursement through court judgments

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

In regards to the goodwill of a business, which of the following statements is true?

A. Goodwill is not a value that can be figured into the sale price of a business

B. Goodwill does have monetary value and it is protected by law

C. Goodwill is only valuable to the seller

D. Goodwill does not have monetary value

A

B. Goodwill does have monetary value and it is protected by law

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

The Franchise Investment Law requires a full disclosure to be delivered to a prospective buyer how many days prior to a binding franchise agreement’s effective date?

A

10 days

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

In California, the Sales and Use Tax Law is relevant for the transfer of which of the following types of businesses?

A. Service-based businesses

B. Commercial banking businesses

C. Health care businesses

D. Retail businesses that sell tangible personal property

A

The Sales and Use Tax Law is relevant to the transfer of a retail business which sells tangible personal property. Of particular importance are:

a “clearance receipt” confirming payment of state and local sales taxes so that the buyer is protected from “successor’s liability”;

releases or subordination agreements covering sales tax liens against real or personal property; and,

the tax liability on that portion of the sale price allocated to the personal property to be used in the business.

26
Q

If the Department of Alcoholic Beverage Control issues a newly transferred business a license to sell alcoholic beverages, how long does the business have to put the license in use?

A

30 days

27
Q

The national trade association known as AREAA is committed to serving which of the following?

A. Asian American communities

B. African American communities

C. Minority communities

D. Hispanic communities

A

The national trade association known as AREAA (Asian Real Estate Association of America) is committed to serving Asian American communities.

28
Q

4 types of property managers

  1. Resident Manager
  2. Asset Manager
  3. Individual Building Manager
  4. Individual Property Manager
A

Resident Manger: An individual who is employed by a broker to manage an apartment building full-time

Asset manager: is a broker who manages other property managers.

Individual building manager: an individual who is employed by a property owner to manage a single property.

Individual property manager: broker responsible for the management of property for the property owners.

29
Q

Which act requires sellers to provide buyers with a disclosure when a property lies within one or more state-mapped hazard zones?

A. Natural Hazards Disclosure Act

B. California Seismic Standards Act

C. California Real Estate Protection Act

D. California Natural Disaster Prevention Act

A

The Natural Hazards Disclosure Act, effective June 1, 1998, requires that sellers of real property and their agents provide prospective buyers with a Natural Hazard Disclosure Statement when the property being sold lies within one or more state-mapped hazard areas, including a Seismic Hazard Zone.

30
Q

From the date they are taken, receipts for copies of the real estate commissioners subdivision final report must be retained for a period of

A

3 years

31
Q

Fault zones around known earthquake fault lines must be disclosed to prospective buyers of certain properties in California. Typically, these zones are:

1/4 mile wide

1 mile wide.

1/2 mile wide

/4 mile wide

A

1/4 mile

32
Q

When must a copy of the loan broker statement be given to the borrower?

When signed

it is negotiable

at closing

within 3 days

A

When signed it is negotiable at closing within 3 days

Explanation:

The Loan Broker Statement gives the borrower detailed information about the loan. It also includes information about all costs and expenses that will be charged to the borrower. Once signed by the borrower, a copy of this Statement must be given to the borrower for every loan negotiated by a Broker.

33
Q

Of the 45 hours of continuing education the licensee must complete:

9 hours of Real estate practice

18 Hours of Consumer

Protection 18 hours of Real Estate Practice

9 hours of Consumer Protection

A

When a licensee needs 45 hours of continuing Education to renew his/her licensees, at least 18 hours must be consumer Protection.

34
Q

Withdrawals from the real estate broker’s client trust account can be made by the broker or by which of the following people, when authorized by the broker:

Anyone, when authorized by broker in writing.

Only salespeople in the broker’s employ

Anyone employed by the broker

Only corporate officers

A

Trust Fund Account is usually a separate checking account is used to separate a Client’s money from the Broker’s money, although a Trust Fund Account can hold up to $200 of a Broker’s money without issue. Any employee who is authorized by the broker can withdraw monies from the Trust Fund Account. That authorization does not have to be in writing.

35
Q

Blind Ad

A

does not recognize broker in add: must be included

36
Q

Injunction

A

Injunctions are a court order to stop or prevent certain action(s) by certain individual(s) or entities. [For example, an injunction could be sought by members of a subdivision of residential homes to prevent one homeowner from putting up a large neon sign over his home that says “Motel”.]

37
Q

Company Dollar

A

gross income of office minus commissions

38
Q

When renting residential property, the amount of security deposit which a lessor may legally receive from a lessee is determined in part by which of the following:

Whether the unit is furnished or not

The number of square feet in the building

The number of children

The number of occupants

A

The maximum allowable security deposit on a residential property depends on if the property is furnished or not. It may not be more than three (3) months rent if furnished, and may not be more than two (2) months rent if unfurnished.

Upon termination of the lease the landlord has 3 weeks (21 days) to return the deposit

39
Q

Allison has just qualified for her salesperson’s license. How much time does she have to file her application to practice?

Two years from the date she was notified she had passed the exam.

Two years from the date she passed the exam.

One year from the date she passed the exam.

One year from the date she was notified she passed the exam.

A

1 year from date she passed

Although most people who pass the exam are anxious to get their license and begin practicing real estate, the rules do allow up to a year to make the application.

40
Q

A real estate broker advertises that she will give a microwave oven valued at $500 to anyone who purchases a property listed with her office. This type of advertisement is:

Legal only if the gift is valued at $100 or less.

Legal if proper disclosures are made to all parties of interest.

Illegal regardless if all disclosures are made.

A

It is ok for an agent to advertise that he will give away gifts to buyers as long as he discloses this to all interested parties. An example of a gift would be a Microwave.

41
Q

Which of the following state agencies would receive complaints concerning fair housing laws?

Department of Real Estate

Department of community development

Department of fair employment and housing

Department of housing and urban development

A

Department of Fair Employment & Housing is set up to receive discrimination complaints

42
Q

California Coast Homes, Inc. is just opening up a new-home subdivision. To whom must they give copies of the public report?

Prospective buyers who are still discussing the property with their loved ones.

Prospective buyers who indicate a strong likelihood of purchasing.

Every prospective buyer.

Prospective buyers who make a deposit on a home or parcel.

A

every prospective buyer

43
Q

Using word “realtor” in your advertisements

A

REALTOR® is a registered trade name that may only be used by members of the NATIONAL ASSOCIATION OF REALTORS®. REALTORS® subscribe to a strict Code of Ethics which governs their conduct. If you are not a member of the association of Realtors you can not use it in your advertising.

44
Q

The real estate commissioner would not permit which of the following mortgage loan advertisements:

First trust deeds available to qualified borrowers

We loan up to 75% of market value based on our reports

Call our toll free number 1-888-FOR-A-LOAN

Income, equity and credit must be verified

A

It is illegal for any advertisement to suggest that a loan can be acquired over the telephone. [For example, if a Mortgage Company ran an advertisement that read “Just call us at 1-888-FOR-A-LOAN”, the advertisement would be illegal.

45
Q

A real estate licensee submits a license renewal application, but his name is on a list of obligors who have not complied with a court-ordered payment of child support. Which of the following is most nearly correct?

A temporary renewal will be issued, but the licensee must pay the delinquent amount within 150 days

The license cannot be renewed until he has paid the delinquent amount

The renewal will be approved, but the license will be suspended until he makes up the delinquent amount

The license will be renewed for a one-year term only, unless the licensee submits proof from the district attorney that the debt has been paid

A

A temporary renewal will be issued, but the licensee must pay the delinquent amount within 150 days

46
Q

When an escrow officer receives two pest control reports, the escrow officer should:

Get the buyer’s written approval on which one to use

Contact the inspection companies to find out which is most recent

Have the broker inquire which their clients would like to use

Get the buyer’s and the seller’s written approval on which one to use

A

f there are two or more Termite Reports, the Escrow Company should make the Broker aware of this fact and then wait to hear from the Buyer and Seller for their instructions.

47
Q

RESPA would apply to which of the following?

Homes and residential dwellings only

1-4 family residential dwellings

Subdivisions

Commercial real estate only

A

RESPA (Real Estate Settlement Procedures ACT) applies to (1) to four (4) family residential dwellings. It is primarily there to provide consumers with enough information to enable them to shop for settlement services.

48
Q

TDS

A

Transfer Disclosure Statement is required of the seller even if sold “as is” for sale of a residential building up to four units. If the TDS is amended the buyer has 3 days to rescind out of the contract. If the TDS is defective the buyer has 2 years to sue the seller. The Seller should reveal all known defects but not repairs that are up to building code on the TDS. The Licensee can never complete the Seller’s portion of the TDS.

49
Q

When a buyer gives the agent a post dated check, it:

May be retained but must be disclosed to the seller.

May not be accepted by the agent.

Must be cashed immediately.

Must be delivered to the seller within one day.

A

May be retained but must be disclosed to the seller.

50
Q

Who enforces the California State Housing Act?

The Real Estate Commissioner.

Local health officers.

The FHA and the VA.

Local officials regulating the issuance of building permits.

A

This act pertains largely to discrimination based on physical handicaps. It is administered by those who control building permits since that is often the quickest means of correcting problems of non-compliance.

51
Q

Jerry Smith is a broker who has been found guilty of violating the Unruh Act. What penalty or penalties is he subject to?

Payment to the victim for actual damages he or she incurred.

Payment of exemplary damages to the victim and payment to the victim for actual damages he or she incurred.

Neither payment of exemplary damages to the victim or payment to the victim for actual damages he or she incurred.

Payment of exemplary damages to the victim.

A

In addition to actual and exemplary (or punitive) damages, Jerry may also be ordered to pay emotional damages and served with a cease and desist order.

52
Q

Kelly was the listing agent for a property that Andrew, a salesperson from another brokerage, found a buyer for. At closing, his commission is for less than what he believes was agreed to and a dispute arises. According to the Code of Ethics of the National Association of REALTORS(R) how will they settle this matter?

Mandamus. Litigation. Arbitration. Estoppel.

A

The purpose of arbitration is to settle disputes as quickly, as simply and as cost-effectively as possible. In a sense, it’s the opposite of litigation which involves attorneys, courts, high costs and drawn-out procedures. However, while the Code of Ethics mandates arbitration as the first step, it does not deny a plaintive the right to sue later if agreement cannot be reached or one party fails to live up to the agreement.

53
Q

What options are open to the real estate commissioner if he or she believes a subdivision developer is making fraudulent statements?

The commissioner may issue a restraining order

All of the other options are correct

The commissioner may revoke the public report

The commissioner may issue a desist and refrain order.

A

A desist and refrain order is similar to a restraining order in that it immediately halts the action or actions in question. However, the “desist” order may be issued directly by the commissioner whereas a restraining order typically goes through the courts

54
Q

When an owner is selling his or her home, to whom would they most likely give a copy of a structural pest control report?

Their broker, at the time of listing.

To the escrow company.

To the buyer, if requested.

To the brokers or salespeople representing potential buyers.

A

Structural pest inspections and reports are not required by law, but are often a condition of the buyer, the contract or the lender. When requested, the reports must be delivered by the seller or seller’s agent before closing

55
Q

Sara Straun is a newly licensed broker and has just opened her own office. How long must she keep transaction records?

4 years

1 year

2 years

3 years

A

Those records must include not only closing documents, but trust fund information, all listings, all deposit slips and cancelled checks and all other documents executed by Sara in connection with her real estate practice.

56
Q

A broker, who is authorized by another broker to act as a subagent as authorized by the seller, is primarily responsible to:

The broker

Both the broker and principal equally

The principal

Neither the broker nor the principal

A

the principal

57
Q

A real estate broker advertises that he will give a seller a credit in escrow with his commission. For any sellers who list with him, he will pay $50 and same for any buyer who purchases a property from him. This type of advertising is:

Legal, since the amount offered is less that $100

Prohibited if this is a RESPA transaction

Illegal as it is a restraint of trade

Legal if disclosure is made to all parties to the transaction

A

Legal if disclosure is made to all parties to the transaction

58
Q

A broker advertises properties through the World Wide Web. Rules exist making it mandatory for the broker to do which of the following?

Exercise proper supervision over non-licensees responding to queries.

Return all messages promptly and correctly within 24 hours.

Employ only real estate licensees to respond to queries.

Report all international queries to the BRE.

A

Only licensed individuals can answer questions (queries) about properties.

59
Q

Real estate licenses are issued for:

3 years

2 years

4 years

1 year

A

Real estate licenses are issued for a four year term.

60
Q

If a business is sold without complying with the Bulk Sales Act:

the transfer is unenforceable by all parties.

the sale is considered illegal

the sale is completely void.

the assets still belong to the vendor as far as creditors are concerned.

A

If the Bulk Sales Law is not complied with, creditors still have a claim on the assets of the vendor (seller) purchased by the vendee (buyer). This is why it is very important for the vendee (buyer) to see that the Bulk Sales Law is complied with.

61
Q
A
62
Q
A

CA Salesperson Exam (4 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions