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practice real estate and disclosures > practice of RE and disclosures > Flashcards

practice of RE and disclosures Flashcards

1
Q

A real estate broker’s advertisements need to include:

the name of the broker and license number
that the advertiser is a broker or agent
the address of the broker

A

the name of the broker and license number.

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2
Q

An unlicensed assistant may:

show property to prospective buyers
encourage a prospective client to use the broker’s services
discuss the terms or conditions of a possible sale
prepare a comparative market analysis (CMA) for a client

A

prepare a comparative market analysis (CMA) for a client.

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3
Q

Roland, a broker, arranges a sale and opens escrow. Before escrow closes, his license is revoked by the California Bureau of Real Estate (CalBRE). What happens to Roland’s commission?

A

Roland gets his commission.

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4
Q

Robert, a developer who is unlicensed, hires Yvonne, a broker, to sell his properties. While Yvonne is out of town, Robert shows property, quotes prices and makes sales. Have Robert or Yvonne violated the Real Estate Law?

A

Neither Robert nor Yvonne has done anything wrong.

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5
Q

Which of the following is true?

Every real estate broker needs to maintain a definite place of business in California.
An advertisement must include the licensee’s name and license number.
Both a. and b
Neither a. nor b

A

Both a. and b.

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6
Q

A salesperson’s commission is paid by:

A

the broker.

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7
Q

The __________ prohibits an employer from discriminating against a person with a disability seeking employment based on their disability.

A

Americans with Disabilities Act (ADA)

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8
Q

Salesperson Sally advertised in a newspaper that anyone who bought a home through her services would receive a free home appliance valued up to $500. Such an advertisement is:

A

legal, provided full disclosure is made to all interested parties.

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9
Q

A prohibition against a “For Sale” sign in a residential neighborhood is:

A

violates the First Amendment.

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10
Q

A newspaper advertisement is considered “blind” when it:

A

fails to state the fact the advertiser is a broker or agent and does not include their California Bureau of Real Estate (CalBRE) license number.

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11
Q

If a group of brokers agreed to divide a market area or set commission rates, it would:

A

violate Anti-Trust Law.

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12
Q

Any suggestion by a licensee that the racial makeup of a neighborhood is changing to induce panic selling is an example of:

A

blockbusting.

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13
Q

The Uniform Commercial Code, which pertains to a bulk sale transfer, exists primarily for the protection of:

A

creditors.

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14
Q

When purchasing a business, the buyer needs to be certain a certificate of clearance has been issued by the:

A

State Board of Equalization (SBOE).

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15
Q

The best guideline to determine whether an action is ethical can be found in:

A

the Business and Professions Code.

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16
Q

A prospective buyer is interested in purchasing a vacant lot in a rural subdivision. The buyer wishes to know about sewer assessments, liens, utilities to the lot, blanket encumbrances and street maintenance. The source that provides all of this information is the:

A

Real Estate Commissioner.

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17
Q

If a licensee’s name is on a list of obligors who have not complied with a court-ordered payment of child support, the licensee’s renewal application will:

A

renew as a temporary license, but the debt must be paid within 150 days.

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18
Q

State regulations in California contain a statement that prohibits discrimination due to race, color, religion, marital status, national origin, or ancestry. Discrimination in which of the following areas would be a violation of the code?

Unimproved land to be used for a home
Vacant housing accommodations
4 unit apartment building
Any of the above

A

Any of the above.

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19
Q

Commingling involves the mixing of one client’s monies with:

the brokerage firm’s general account
other clients’ monies
the sales licensee’s personal account
All of the above

A

All of the above.

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20
Q

Commingling involves the mixing of one client’s monies with:

the brokerage firm’s general account
other clients’ monies
the sales licensee’s personal account
All of the above

A

All of the above.

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21
Q

In California, commission fees charged on residential properties cannot exceed:

A

an amount which is determined by the broker’s contract with their principal.

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22
Q

When a real estate broker who has listed a property chooses to buy it in the name of a separate investment company, they need to:

serve the client’s best interest
disclose to the client that they are the buyer
disclose to the client that they are licensed
All of the above

A

All of the above.

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23
Q

A buyer of a common interest development (CID) is entitled to receive all except copies of:

A

a homeowner warranty.

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24
Q

Under the Alquist-Priolo Special Studies Act, a subdivider is required to disclose to potential purchasers:

A

earthquake fault lines.

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25
Q

Under no circumstances may a real estate broker misrepresent a material fact to a buyer. If they do, the broker faces:

disciplinary action by the California Bureau of Real Estate (CalBRE).
criminal action
civil action
Any of the above

A

Any of the above.

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26
Q

It is least likely to be a violation of the Real Estate Law for a broker to pay a portion of the commission to a(n):

A

buyer or seller in the transaction.

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27
Q

A Natural Hazard Disclosure Statement (NHD) needs to be given to a buyer when the property is located within which of the following areas?

A special flood hazard area
A very high fire hazard severity zone
An earthquake fault zone
Any of the above

A

Any of the above.

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28
Q

Earthquake fault zones need to be disclosed to prospective buyers of certain properties in California. Typically, earthquake fault zones are:

A

0.25 miles wide.

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29
Q

A verbal agreement to sell real estate is enforceable when:

A

the buyer makes a down payment, takes possession and improves the property.

30
Q

Discriminatory acts in the sale or rental of residential housing accommodations based on sex, religion or national origin of the prospective tenant or buyer are:

unenforceable
illegal
contrary to public policy
All of the above

A

All of the above.

31
Q

Which of the following state agencies is empowered to prevent acts of discrimination in housing accommodations in California due to race, color, sex, national origin or ancestry:

A

the Department of Fair Employment and Housing.

32
Q

A Latino real estate agent working in a Hispanic neighborhood informed current owners they should move out because another ethnic group is moving into the area. This conduct is an example of all of the following, except:

A

a legal practice, but unethical.

33
Q

An agreement between two parties in which one party is granted the right to offer, sell, or distribute goods or services under a marketing plan described by the other party is commonly known as:

A

a franchise agreement.

34
Q

A broker chooses to employ their salespeople as independent contractors rather than employees. By doing so, the broker will save out of pocket expenses relating to:

A

social security.

35
Q

When inspecting a residence in a hillside subdivision, the salesperson observes cracks in the foundation and notices the doors and windows do not close properly. As a matter of best practice, the salesperson references their observations in the Transfer Disclosure Statement (TDS) and recommends that which of the following be ordered?

A

A soil engineer’s inspection.

36
Q

The maximum security deposit for a furnished apartment is

A

three months’ rent.

37
Q

An investor made a $40,000 down payment on a $400,000 condominium. One year later, the property increased 10% in value. This resulted in a $40,000 or 100% gain on the $40,000 equity. This is an example of:

A

leverage.

38
Q

The purpose of a(n) __________, like an easement and a lease, is to grant the right to use property owned by another person.

A

license

39
Q

Roy, an inactive real estate salesperson, offers to assist Mel lease or purchase federal land for a fee.

A

Roy must be a broker to perform these duties and collect a fee.

40
Q

After an applicant passes the real estate licensing exam, they need to apply for a license within:

A

one year of the examination.

41
Q

Which of the following is an example of “puffing”:

A

exaggerating certain features or benefits of a property.

42
Q

It is appropriate for real property managers to be compensated in all of the following ways, except:

A

receiving kickbacks from contractors and suppliers.

43
Q

Who is authorized to manage property for the general public?

A

A licensed real estate broker.

44
Q

An unlawful detainer (UD) action is instigated by:

A

a lessor.

45
Q

The purpose of the Real Estate Law is to:

A

protect the public.

46
Q

Most real estate records need to be kept for a period of three years, commencing from the date:

that a property is first listed
the sale occurs
escrow closes
Either a. or c

A

Either a. or c.

47
Q

When a purchase agreement states the property is being sold “as is,” it:

A

still requires the buyer to receive a Transfer Disclosure Statement (TDS) noting any material facts which affect the property’s value.

48
Q

An example of a red flag would be:

a cited code violation
a home overbuilt for the neighborhood
a floor that is not level
an older home

A

a floor that is not level.

49
Q

The Transfer Disclosure Statement (TDS) form is required on:

A

the sale of a one-to-four unit residential property.

50
Q

If a seller refuses to fill out their section of the Transfer Disclosure Statement (TDS), the seller’s agent is advised to:

A

complete the listing agent’s portion of the TDS and deliver it to the buyer without the seller completing their section of the form.

51
Q

The total positive balances due to all beneficiaries of a broker’s trust account need to at all times equal the account’s:

A

balance.

52
Q

Both a seller and a buyer ask the broker to give them the trust funds deposited by the buyer. How is the broker to respond?

A

Commence an interpleader action to resolve the dispute.

53
Q

Freddie, an unlicensed employee of a real estate broker, hands out door hangers and makes telephone solicitations seeking buyers and sellers. Under the real estate law, these activities are:

A

unlawful for both Freddie and his employing broker.

54
Q

An unlicensed assistant in a real estate office can:

sit at open houses conducted by the broker’s office
type listings and sales contracts for licensees
hand out brochures
All of the above

A

All of the above.

55
Q

An abandonment can be noticed and carried out when a tenant:

voluntarily vacates the leased premises with an intention to reoccupy.

voluntarily vacates the leased premises with no intention to reoccupy.

fails to pay rent with no intention to further perform their obligations on the lease.

Either b. or c.

A

Either b. or c.

56
Q

A public walkway within a condominium community:

A

exists in a common area.

57
Q

activities refer to the concerted and continuing efforts taken by an agent to meet the objectives of their client under their employment agreement.

A

Due diligence

58
Q

When a real estate license expires, how long is the agent’s grace period in which they may reinstate their license?

A

Two years.

59
Q

Which of the following conditions would not cause a building to be declared uninhabitable?

A

Electrical wiring that is safe and working properly but does not comply with present building codes.

60
Q

A seller is required to disclose:

the presence or absence of carbon monoxide detectors
the existence of a septic tank on the property
a nuisance in the neighborhood
All of the above

A

All of the above.

61
Q

If a tenant moves in and pays one month’s rent prior to receiving a written copy of a verbally agreed-on two-year lease, the tenant has a(n):

A

periodic tenancy.

62
Q

The covenant of quiet enjoyment most directly relates to:

A

tenant freedom from owner harassment.

63
Q

A seller’s broker earns their commission:

A

by finding buyers who are ready, willing and able to buy.

64
Q

A right to later buy a property at an undetermined price given to a tenant that does not compel the owner to sell is an example of a(n):

A

right of first refusal.

65
Q

The act of restricting a person from seeking to buy a residential property in a community and redirecting them to other housing is known as:

A

steering.

66
Q

A sublease:

A

transfers a portion of the leasehold interest.

67
Q

A surrender occurs due to the cancellation of the lease agreement by:

the mutual consent of the landlord and the tenant
operation of law, implied due to the conduct of the landlord
Either a. or b
Neither a. nor b

A

Either a. or b.

68
Q

Which of the following is an example of personal property?

An appurtenant easement
Trade fixtures
Fixtures installed in a property for manufacturing purposes
Mineral rights

A

Trade fixtures.

69
Q

The Real Estate Commissioner may discipline a broker for committing which of the following violations of Fair Housing law?

Blockbusting
Steering
Hiring salespersons from only one specific ethnic group
All of the above

A

All of the above.

70
Q

Sexual discrimination in housing is outlawed in sales and rentals under the:

A

Civil Rights Act of 1968.

71
Q

Title VIII, also known as the Federal Fair Housing Act, refers to the:

A

Civil Rights Act of 1968.

72
Q

A resident manager in an apartment building is required to have a contractor’s license for any repairs exceeding:

A

$500.

practice real estate and disclosures (1 decks)

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