Practice of Real Estate and Disclosures Flashcards
Which of the following statements would be correct? An escrow cannot be completed or cancelled:
by the broker contacting the escrow officer and recommending that they cancel the escrow All of these by mutual agreement of the parties involved in the escrow when all of the escrow instruction terms have been met
by the broker contacting the escrow officer and recommending that they cancel the escrow
While a real estate agent is attempting to renew his license, the Bureau of Real Estate is informed by the Department of Child Support Services that the licensee has failed to make required child support payments. What will happen to the agent’s real estate license due to his lack of payments?
It can be renewed for a 4 year term It cannot be renewed It can be issued temporarily for 150 days It is automatically revoked
It can be issued temporarily for 150 days
During an agent’s renewal process, they will be given a 150 day temporary license if they have failed to make required child support payments.
When a real estate agent signs a residential listing agreement with the owner of a home, a fiduciary relationship is created between the broker and the:
buyer seller both buyer and seller general public
seller
When there is a Buyer-Broker Representation Agreement in place, the agreement:
is enforceable only on commercial properties need not be in writing requires an earnest money deposit from the buyer must be in writing
must be in writing
A salesperson cannot receive any commissions or referral fees as compensation from any other source, except:
the escrow agency the title company the seller’s agent the licensee’s broker
the licensee’s broker
The Agency Relationship Disclosure solidifies the relationship between an agent and a principal. What is the three step process for this disclosure?
confirm, disclose, elect elect, confirm, disclose disclose, elect, confirm either order is acceptable
disclose, elect, confirm
Which of the following parties is required to report the sale of a single family residence to the Internal Revenue Service?
The seller The Escrow Company The buyer The lender
The Escrow Company
The settlement agent (typically the escrow company) is responsible for this action.
The provision that reads “The Realtor shall not publicly disparage the business practice of a competitor” can be found in the:
Business and Professions Code Commissioner’s Rules and Regulations NAR Code of Ethics Real Estate Law
NAR Code of Ethics
A listing contract to sell real property is considered to be enforceable if it is:
acknowledged in writing all of these recorded
in writing
A real estate agent informs her broker that she wants to terminate her employment with that brokerage and requests that the broker return her license. The broker should:
destroy the license and inform the Real Estate Commissioner of the termination return the license to the real estate agent and notify the Commissioner in writing immediately mark the license as cancelled, return it to the agent, and notify the Real Estate Commissioner in writing return the license to the Real Estate Commissioner for cancellation
return the license to the real estate agent and notify the Commissioner in writing immediately
A real estate salesperson presented an offer to the seller from a fully qualified Asian buyer who met all of the terms of the listing agreement (price, financing etc.). A day later, the real estate agent presented the seller an offer from a fully qualified caucasian buyer, however it was for $20,000 less than the asking price. Ultimately, the seller refused both offers and sold the property to the neighbor using the same real estate salesperson because the neighbor wanted to keep minorities from owning property in his neighborhood. Of the following, who has not violated the Civil Rights Act of 1968?
caucasian buyers salesperson neighbor seller
caucasian buyers
The seller violated the Federal Civil Rights Act because they collaborated with selling the property to the neighbor. The neighbor violated the act because they wanted to keep minorities from owning property. The real estate sales person violated the act because they helped the neighbor purchase the seller’s home. The caucasian buyers did not violate the act by offering an offer less than the list price.
Which type of bonds are typically used to finance street improvements, gutters, and sidewalks and must be disclosed by the seller of a 1-4 dwelling unit?
Gentrification Vision Neighborhood Enhancement Projects State Improvement Site Mello-Roos
Mello-Roos
If a qualified license applicant appears on a delinquent child support payment list, what would occur with the licensee’s status as an agent?
The application will be denied until the arrears is paid in full None of these The agent can request a court appeal against the BRE A temporary 150 day real estate license may be issued
A temporary 150 day real estate license may be issued
Which of the following terms explains the termination of an agency relationship?
Eminent Domain Ingress Estoppel Completion
Completion
What occurs when a buyer withdraws their offer to purchase real property prior to the seller accepting the offer?
The seller is within their right to take legal action against the buyer for backing out of the deal The licensee may take legal action for specific performance Since a purchase agreement (offer) was submitted, the buyer must continue with the purchase Any earnest money deposit is refunded to the buyer if one was submitted
Any earnest money deposit is refunded to the buyer if one was submitted
The meeting of the minds is a three step process. 1. The offer 2. Offer is received and accepted 3. Acceptance must be communicated back to the offeror. Until these steps take place, the contract may be withdrawn at any time without a reason or consequence.
When a real estate agent advises homeowners that they should sell their property by informing them that a minority group is moving into their neighborhood and it would be advantageous for them to list and sell their homes, the agent would be guilty of:
panic selling only blockbusting only neither blockbusting nor panic selling blockbusting and panic selling
blockbusting and panic selling
Panic selling and blockbusting is an agent’s intent to persuade a homeowner to sell their property by informing them that a particular population is moving into their neighborhood which may cause negative results such as lowered home values or increased crime rate.
Which act prohibits discrimination by businesspersons?
The Civil Rights Act of 1968 The Rumford Act The CA Dept. of Fair Employment and Housing Act The Unruh Civil Rights Act
The Unruh Civil Rights Act
A buyer who is interested in purchasing a business would be most concerned with:
gross sales accounts payable net profit turnover rate
net profit
A broker was talking to homeowners and persuading them to sell based upon the fact that people from a different ethnicity are moving into the neighborhood and it would be best to sell now. This would be an example of all of the following, except:
Illegal conduct Legitimate conduct Panic selling Blockbusting
Legitimate conduct
Both panic selling and blockbusting are illegal activities.
When referring to single agency, the licensee is representing:
both a buyer and a seller in one transaction one broker only the property owner one buyer or seller
one buyer or seller
A licensee acts as agent for an individual without authority or consent. If the agent’s actions are later approved by the principal, an agency has been created by:
Ratification Implication Agreement Dual Agency
Ratification
Maverick listed his vacation home with agent Juan for $750,000. Donald, the prospective buyer, submitted an offer on the property of $740,000. The next day Maverick made a counteroffer to the sales price at $745,000, which Donald refused. Four days later Maverick signed the acceptance of the $740,000 offer and sent it to agent Juan to send the offer to buyer Donald. Donald decided not to go forward with the purchase of the vacation home. Based on these actions, there is:
a voidable contract a void contract no contract a contract and it is enforceable
no contract
A counter offer terminates the original offer, therefore there is no contract.
Which instrument is used to test for the toxic gas, carbon monoxide?
An air supply traction A fuel proctor A spectrometer A carbon monoxide detector
A carbon monoxide detector
A carbon monoxide detector is used to detect odorless gas.
When an agent makes misrepresentations towards a third party, this is a serious wrongdoing and is referred to as:
steering a tort due diligence blockbusting
a tort
A tort is a wrongful act for which a civil action may be brought by the person being affected by the misrepresentation.
A Homeowner’s Guide to Earthquake Safety must be provided on 1-4 dwelling unit properties for sale with a wood frame that is built before:
1990 1980 1970 1960
1960
An individual who has invested in a commercial property is most interested in the property’s:
monthly expenses net income depreciation rate vacancy rate
net income
Which of the following describes a broker’s duty to keep their principal informed?
Moral responsibility Continuing responsibility Ethical responsibility Fiduciary responsibility
Fiduciary responsibility
The broker has a duty of loyalty to their principal and must always keep them informed throughout the transaction.
What agency receives complaints about fair housing laws?
Department of the interior Department of water and safety All of these Department of Fair Employment and Housing
Department of Fair Employment and Housing
The Department of Fair Employment and Housing would receive complaints regarding fair housing laws.
An unlicensed person who violates any real estate laws is prosecuted by the:
District Attorney RESPA State Compliance Officer Real Estate Commissioner
District Attorney
The District Attorney can prosecute an unlicensed person who violates any real estate laws.
How many years does an injured party have to file legal action on the Transfer Disclosure Statement?
5 years 2 years 4 years 1 year
2 years
In which of the following documents does the seller give the broker written authority to accept a deposit from a prospective buyer?
Transfer Disclosure Statement Deposit Receipt Escrow Instructions Listing Agreement
Listing Agreement
What should a broker do if they discover that they have an overage in their company trust account and are not certain who the extra monies belong to?
Open a new and separate trust account and leave it in there for up to 3 years while the owner of the money is located Have the overage money remain in the trust account and try to find the owner Transfer the money into their personal business account Send the overage to the Real Estate Commissioner as soon as possible
Have the overage money remain in the trust account and try to find the owner
A buyer made an offer for the exact terms on the seller’s listing contract on January 1 with the condition that the offer is to be accepted within 48 hours. The broker was not able to contact the sellers until January 7th. The sellers accepted the offer and the broker informed the buyers. Upon receiving the news the buyers thanked the seller’s agent, yet expressed that they have changed their minds and no longer wanted the property and requested for the return of their deposit. Which of the following statements is correct?
The buyers are well within their rights to ask for their deposit to be returned The broker will not get any commission The broker will receive their commission The broker will get 25% of their commission
The buyers are well within their rights to ask for their deposit to be returned
The seller’s acceptance of the offer was not made within the 48 hour timeframe, as per buyer’s condition. Therefore, the passing of time terminated the agreement to purchase.
Which of the following reports would state whether or not a particular property is located in an earthquake zone?
Natural Hazard Disclosure Preliminary Title Report Appraisal Report The Seller Property Questionnaire
Natural Hazard Disclosure
When a broker represents a seller during a transaction, he has a fiduciary responsibility to the principal. In regards to the third party, the broker:
must disclose all material facts associated with the property owes absolutely no duty to the buyer also has a fiduciary responsibility to the third party need only disclose material fact if the third party requests it
must disclose all material facts associated with the property
Under real estate law, the relationship between the broker and salesperson is that of:
Broker to Realtor Broker to employee Employer to agent Employer to employee
Employer to employee
If a real estate agent illegally uses the term REALTOR, it:
will require the agent to complete an agency disclosure can lead to the loss of a real estate license both can lead to the loss of a real estate license and is a violation of California real estate law is a violation of California real estate law
both can lead to the loss of a real estate license and is a violation of California real estate law
Using the term Realtor illegally can lead to a revocation of license and is a violation of real estate law.
A licensee received an offer on a listing and was on her way to present it to the seller. While on her way to present the offer, she received a phone call from another agent stating she also had an offer for the same property. That second offer was $2,000 less than the first offer, but it was “all cash”. In this scenario, what should the agent do?
Present the first offer, and if rejected, present the second one Present both offers at the same time Only present the second offer since it was an “all cash” offer Present the first offer and disregard the second one
Present both offers at the same time
Before applying for a real estate license, an applicant must pass Real Estate Principles, Real Estate Practice, and which other real estate course/s?
Finance Any one additional qualified elective course Both Finance and Escrow Studies Escrow Studies
Any one additional qualified elective course
It is mandatory by the BRE for an applicant to have completed Practice, Principles, and one qualified elective course.
The Agency Relationship Disclosure Act is found in Civil Code section 2079 and went into effect in:
1990 1988 1978 1986
1988
Tim works as an unlicensed employee at a real estate brokerage. The broker pays Tim hourly to distribute door hanger fliers in the nearby neighborhood and to make cold calls to solicit buyers and sellers. This activity by Tim is:
acceptable unlawful for the broker and Tim unlawful for the broker, but not Tim only unethical by the broker but not by Tim
unlawful for the broker and Tim
A real estate license is required to act in matters of real estate for compensation, including:
property management a stock broker mortgage lending both property management and mortgage lending
both property management and mortgage lending
The American with Disabilities Act prohibits discrimination against individuals with disabilities in all areas of public life such as schools, employment, transportation, and all other areas used by the general public. In what year did this act become law?
1990 1975 1985 1980
1990
If the real estate commissioner needs legal advice, who will they go to for this assistance?
The state attorney general The governor of CA The secretary of state The legal department of affairs
The state attorney general
If a broker hires an unlicensed person to practice real estate, the broker and the unlicensed person may be individually fined up to:
$10,000 $25,000 $50,000 $20,000
$20,000
When taking a listing it is recommended business practice for a real estate agent to:
accept overpriced listings with a plan of later dropping the price to where it should be priced place online ads that read “listings wanted” price listings at market value plus commission question an owner regarding the motives of selling the property
question an owner regarding the motives of selling the property
Knowing the reasons why an owner is selling a home may assist the agent with disclosing items to the buyer, such as the owner going through a foreclosure process, a recent incident in the neighborhood, etc.
Which of the following properties is exempt from the federal Fair Housing Act in a sales situation?
A single family dwelling that where the owner does not own more than 3 properties at one time, a broker is not used, and the property is not advertised. An owner occupied triplex bought with the help of FHA financing A single family, unoccupied property that is purchased using a VA loan program A 20 unit complex financed with a conventional loan
A single family dwelling that where the owner does not own more than 3 properties at one time, a broker is not used, and the property is not advertised.
The district’s attorney’s office prosecutes law violations within:
Its own region None of these Its own city Its own county
Its own county
During a transaction, the buyer’s agent and the seller’s agent must render a diligent visual inspection of accessible areas of the subject property. This disclosure is referred to as the:
None of these Agent Visual Inspection Disclosure Broker Inspection Scope Disclosure Agent Sight Home Inspection
Agent Visual Inspection Disclosure
Which of the following acts is most likely to be committed by a salesperson?
Actual fraud Fraudulent misrepresentation Constructive fraud Innocent misrepresentation
Innocent misrepresentation
Due to lack of knowledge or misinformation from the seller, some agents will not intentionally misinform and commit actual fraud.
A contractor’s license is not needed when construction work is being done and is valued at less than:
$500 All construction work requires a contractor’s license $1,000 $2,500
$500
If a real estate broker violates an antidiscrimination law which prohibits several types of discrimination, a court of law may do all of the following, except:
award actual costs and expenses to the plaintiff award punitive damages award financial damages due to humiliation and embarrassment revoke or suspend the broker’s license
revoke or suspend the broker’s license
Under the terms of the Real Estate Law and Regulations, the only one who can revoke or suspend a real estate license is the Real Estate Commissioner.
Jim paid an owner $5,000 for an option which included the following clause: “Option to be effective for 60 days from June 1. Upon exercise of the option, the option holder is to purchase within 30 days thereafter which must be in the form of all cash.” On July 10, Jim sold and assigned his option for $10,000. On July 28, the new holder notified the owner that he would complete the purchase on August 15th. The owner claimed the option was void. Based on the information provided, the option was:
valid, even though Jim was the person that sold it, however August 15 was too late for the sale date void because the original holder sold it void, since the purchase date was not within the agreed upon option period valid and the assignee would be able to purchase on August 15th
valid and the assignee would be able to purchase on August 15th
Although the terms of the option require an all cash consideration and there is no unsecured promissory note that exists, the option can be sold or assigned. Since the new holder exercised the option within the 60-day period (prior to July 30) and purchased the property within 30 days of the exercise date (prior to August 30), the option is valid.
Agent Debbie delivered an offer to purchase a piece of real property to her principal, seller Billy, on Tuesday morning at 9am. Billy asked for 24 hours to review the offer. On the same day at 4pm, agent Debbie received three additional offers from 3 different buyers. Agent Debbie has a feeling that her principal, seller Billy, will reject the additional offers. What should agent Debbie do next?
none of these Hold the new offers until agent Debbie is informed of what the principal wants to do about the first offer Present each offer on different days since the principal asked for 24 hours to review the first contract Present all three offers to principal and seller Billy as soon as possible
Present all three offers to principal and seller Billy as soon as possible
When this situation arises, the agent has a fiduciary duty to present all offers immediately. It is the seller’s decision as to which offer to accept.
In which of the following documents is there a clause that gives the broker the authority to receive a deposit from a prospective buyer ?
Escrow instructions Listing Agreement Closing statement Deposit receipt
Listing Agreement
Of the following, an agent cannot answer any questions regarding:
the employment of a principal someone’s race the death on a property the age of a home
someone’s race
Race, creed, and color are not a material fact in a transaction of real estate and cannot be discussed.
A real estate licensee has instructions from their principal to (1) collect a larger deposit from single women than from single men (2) encourage referrals from tenants (who are mostly white) to refer tenants from their circle of friends. Which of these is a violation of the Federal Fair Housing Act?
1 2 none of them both of them
1
It’s illegal to collect varying amount of deposits based upon marital status. The referrals is fine because it does not state the race of the friends.
Someone who is employed by another to act on their behalf may be referred to as:
an independent contractor any of these an agent an employee
any of these
A property that has been levied by a court order judgement ordering the sale of the property by a county sheriff or other official to satisfy a debt, which of the following would have taken place?
Eminent domain A writ of execution A foreclosure proceeding Probate
A writ of execution
Pg 88 of Principles textbook
A seller was presented with a reasonable offer and accepted it by signing it. The acceptance was communicated to the buyer. Prior to opening escrow, the seller found another buyer willing to pay more and canceled the original contract by notifying the broker. Under these circumstances, which of the following is most likely correct?
The broker is not entitled to commission All of these The broker has an excellent legal basis to collect a commission for having a buyer and seller agree to terms on a contract. The deposit must be returned to the original buyer and their will be no legal claim against the seller by the buyer.
The broker has an excellent legal basis to collect a commission for having a buyer and seller agree to terms on a contract.
By placing the seller and buyer into contract, the broker has fulfilled the duty of finding a buyer that is ready, willing, and able to purchase the property and may be owed a commission.
While presenting offers to her principal, the real estate agent discloses the race, sex, creed, color of the buyers. Has the agent committed a discriminatory act?
Yes, but it only violates local law No because race, color, creed, sex is a material fact Yes, this is a discriminatory act. Race, creed, color, sex are not material facts and should not be disclosed No because there is a fiduciary duty to work in the best interest of the principal
Yes, this is a discriminatory act. Race, creed, color, sex are not material facts and should not be disclosed
Race, creed, color, and sex are not material facts and should not be disclosed per the California Attorney General.
Properties (1-4 unit dwellings) that were built before 1978 require a lead based paint disclosure and are referred to as:
paint targets lead base targets target housing poison housing
target housing
What must an agent do if asked by the seller, “What is the racial background of the buyer?”
The agent should report the seller to the BRE The agent cannot answer that question The agent should ignore the question The agent must answer truthfully
The agent cannot answer that question
The federal fair housing law passed by Congress established a fair housing policy throughout the USA. This policy applies to which of the following:
all of these Multi-family homes with minority owners Single family homes owned by private individuals who own more than 4 properties Single family residences with 8 units or more
all of these
The Civil Rights Act of 1968 applies to all of the examples above.
Which of the following is required for all real estate licensees, even though they are considered an independent contractor for taxation purposes?
Health insurance A private cubicle Worker’s compensation Car insurance
Worker’s compensation
After the expiration of a real estate license, a licensee will be given a grace period in which the license can be renewed by the agent without taking the real estate examination again. What is that grace period?
18 months 1 year 6 months 2 years
2 years
How does a brokerage calculate company dollar?
Gross income minus staff expenses Gross income minus operating expenses Gross income minus commissions Gross income minus desk fees
Gross income minus commissions
Company dollar is calculated by taking the gross income minus commissions.
Under which of the following conditions may a licensed real estate broker refuse to show a home that is available for sale to an individual of a minority group?
The real estate agent determined that the home would not be suitable for the buyers The sellers were out of town on vacation and instructed that no showings take place until they returned home. The licensee was able to discover that the buyer might not financially qualify for a loan to purchase the property. The owners specifically instructed the agent to forbid any person from a minority group from entering their home to preview it.
The sellers were out of town on vacation and instructed that no showings take place until they returned home.
Under federal housing laws, an owner cannot discriminate towards a buyer. The seller’s absence and inability to provide access to the home to all buyers is not considered discrimination.
The term “kiosk” is used to identify:
an information booth in a shopping center a construction crane a form of a key box a cabinet where licenses are kept
an information booth in a shopping center
When does a broker not have to present an offer to purchase real property to the seller?
When there are more than two contingencies in the contract When the offer is frivolous, or the agent is acting on written instructions by the principal As long as the agent gives notice in writing that their offer will not be presented Never, the broker has to present all offers per real estate law
When the offer is frivolous, or the agent is acting on written instructions by the principal
Per real state law, all offers must be presented to the seller. However, if the principal (seller) gives written instruction to their agent that the agent need not present any offers to the seller under X amount, then the agent need not present those offers less than X amount. Typically, all offers are presented and sellers typically do not provide written instruction excluding any offers.
When real estate agents are involved as a principal in a real estate transaction, such as buying property for their own account, the agent:
should disclose to all that they are a licensed agent, but are not legally obligated None of these need not inform anyone that they are a licensed agent must disclose to all parties that they are a licensed agent
must disclose to all parties that they are a licensed agent
Agent Mandy is working with owner Tim to sell his house. Tim told real estate agent Mandy that the house is attached to city sewer and water, but Mandy could have sworn there was no city sewer and water in the neighborhood. She decided to confirm with the city and it turns out that she was correct, the property is not on a public sewer and does not use public utility water. Mandy showed the property to buyer Kim and Kim did not ask about the water and sewer, therefore Mandy did not make any comments regarding them. The sale went through and Kim bought the property. Kim found out that there is no city sewer or water on the property after the sale. Which of the following is true?
Kim owns the house and has to deal with the fact that the property does not have city water and sewer Nothing happens to anyone. Buyer beware Agent Mandy had a duty to tell the buyer Kim, even though Kim did not ask Seller Tim has a duty to tell the buyer Kim that there is city sewer and water
Agent Mandy had a duty to tell the buyer Kim, even though Kim did not ask
The fact that there is no city water or sewer is a material fact and must be disclosed to all prospective buyers. Agent Mandy knew this information and had a duty to disclose it.
A broker who helps the government sell their property is referred to as:
a public broker a government agent a land locator a property defender
a land locator
What do we call an individual who has been given a power of attorney to sign documents on behalf of a principal?
Principal-in-place Attorney-by- law Lawyer-by-representation Attorney-in-fact
Attorney-in-fact
The net operating income minus debt service equals an income property’s:
total monthly income cash flow annual profit capital rate
cash flow
A seller is signing a listing agreement and deletes (removes/strikes out) the following verbiage, “Agency is hereby authorized to accept on my behalf a deposit toward the purchase price in any amount.” If the real estate agent finds a buyer, what will occur next?
The agent can accept the deposit from anyone at any time for the purchase of real property If the agent accepts a deposit, they hold it as an agent of the buyer until the offer is accepted by the seller (they do not hold it as an agent of the seller) The agent cannot accept a deposit at anytime The agent must get permission in writing from the seller to take a deposit for purchase
If the agent accepts a deposit, they hold it as an agent of the buyer until the offer is accepted by the seller (they do not hold it as an agent of the seller)
If a real estate agent is not allowed to accept deposits and they do, they become the agent for the buyer for that one and only act.
A neighborhood that is populated with mostly owner-occupied residences tends to:
attract businesses to the area stabilize values negatively affect the local economy decrease in value compared to areas with mostly rental properties
stabilize values
In order to take more listings, agent Steve Smith started telling property owners that minorities were moving into the area and it would drive down the property owner’s home value. This is an example of:
Both panic peddling and blockbusting conversion blockbusting panic peddling
Both panic peddling and blockbusting
In this example, agent Steve Smith is panic peddling and blockbusting. Both actions are violations of fair housing.
A California real estate license allows an agent to negotiate real estate transactions in:
None of these the county of residence the entire state the specified areas selected and paid for by the agent
the entire state
Upon passing the state exam, how much time does the applicant have in which to mail the application for the license?
1 year 18 months 2 years 1 month
1 year
When dealing with residential income properties, the maximum commission a broker may charge a seller for their real estate services is:
negotiable between the seller and the broker determined by the local real estate board always 6% per REALTOR code set by Real Estate Law
negotiable between the seller and the broker
In which year did the U.S. Supreme Court prohibit racial discrimination in dealings with the sale or purchase of real property?
1968 1981 1950 1969
1968
The U.S. Supreme Court prohibited discrimination in the buying and selling of real property in 1968.
A real estate owner acquires a listing in which the previous owner died from AIDS. When the agent is showing the property to interested buyers, the agent is not required to disclose that the previous owner was afflicted with or died from AIDS since it is not considered a material fact. However, they must disclose this fact if they receive a direct inquiry from:
the buyer the appraiser the escrow officer the lender
the buyer
This type of information need not be disclosed to a buyer, unless there is a direct inquiry from the buyer. The seller and listing agent must then disclose.
In order to create more real estate business, a real estate broker advertises that he will provide a seller who lists their property with him a $50 credit from his commission during escrow. He also advertises that he will offer any buyer $50 if they purchase a home through him. This advertising tactic is considered:
prohibited if it is a RESPA transaction legal since the amount offered is less than $100 Illegal. An agent may not provide any credit to a principal during the escrow period. legal if it is disclosed to all parties involved in the transaction
legal if it is disclosed to all parties involved in the transaction
If a broker decides to use a fictitious business name, the broker must complete which of the following?
Apply to the Real Estate Commissioner for approval File a fictitious business name statement with the county clerk All of these Have a notice published in a newspaper once a week for four weeks
All of these
A prospective Latin homebuyer wants to be shown homes and does not give any particular location that they prefer. How should the real estate agent proceed?
Only show homes in locations based upon the appearance of the buyer Do not show them any homes Select homes for showing as they would with any prospective buyer Show properties in white neighborhoods only
Select homes for showing as they would with any prospective buyer
The Fair Housing Laws and The Real Estate Commissioner’s regulations emphasize that all real estate licensees must treat everyone in an equally.
The “Jones vs. Mayer” landmark decision in 1968 by the Supreme Court bars which of the following property matters in the U.S.?
Gender equality Handicap status Age discrimination Racial discrimination
Racial discrimination
If there was no prior agreement and the escrow period is complete and recorded, when must a seller surrender possession of a property to the buyer?
Within 5 days after closing escrow Upon close of escrow Within 30 days after close of escrow Within 48 hours after close of escrow
Upon close of escrow
If a buyer offers a promissory note as an earnest money deposit on an offer that has been submitted, the broker:
does not need to inform the seller of such deposit must advise the seller of this material fact can accept it only if it has monetary value must reject it and accept “cash only”
must advise the seller of this material fact
In 1951, Mark took 100 acres that he owned and subdivided them into 50 individual 2 acre lots. Mark placed a deed restriction saying the lots could only be bought, sold, or occupied by people of the Caucasian race. This deed restriction is:
legal unenforceable. It violates the United States Constitution valid so long as Mark is still alive prohibited by local law
unenforceable. It violates the United States Constitution
Racial restrictions on subdivisions is a violation of the 14th Amendment of the U.S. Constitution per the U.S. Supreme Court Case, Shelly vs Kraemer. The deed is valid, however the restriction is not.
Which of the following points must be stated on an exclusive listing agreement for the listing to be valid?
Items included with the sale A commission amount A definite termination date of the contract The signature dates
A definite termination date of the contract
If a property manager is employed by a real estate company under a written contract and is completing the activities of a property manager on behalf of the brokerage, the property manager must have:
5 years managerial experience an assistant if the complex has 10+ units none of these a valid real estate license
a valid real estate license
Discrimination in the lease or sale of real property based on sex, marital status, religion, color, race or nationality towards a prospective buyer or tenant is:
illegal against public policy unenforceable all of these
all of these
Discrimination is illegal, therefore it is unenforceable (not allowed). In addition, it is against public policy and there are penalties for violators on the federal and state level.
Although a real estate agent is employed by the broker as an independent contractor, the broker should still provide the agent with:
worker’s compensation coverage leads on a daily basis automobile insurance a life insurance policy
worker’s compensation coverage
If a salesperson leaves a brokerage to join another one, the new broker must advise the BRE in Sacramento of this action within how many days of the new employment?
5 days 1 month 1 week 2 weeks
5 days
In order for a real estate office to be both competitive and profitable, the broker should be highly concerned with “desk cost”. This is calculated by dividing the:
net profit of the brokerage by the number of desks available total costs of all office furniture by the number of agents in that office total costs of the broker’s rent, utilities, telephone, advertising and other operating expenses by the number of salespersons in the brokerage. annual gross commissions earned by the number of desks
total costs of the broker’s rent, utilities, telephone, advertising and other operating expenses by the number of salespersons in the brokerage.
This is the formula used by brokers to keep their offices competitive and profitable.
Of the following documents, which would include the piers, footing, subfloors, and columns of a building?
A foundation plan A construction plan A developer’s plan A master plan
A foundation plan
Agent Chris took a 60-day exclusive agency listing agreement on a property owned by owner Greg. Thirty days has passed and agent Chris has yet to sell the property. Owner Greg sent a certified letter to agent Chris canceling the listing contract. Three days later owner Greg listed the property with two new brokers using an open listing. 11 days passed and one of the brokers who had the open listing presented an offer from buyers and the offer was accepted, escrow opened, and the transaction closed. With the details provided, owner Greg will mostly likely:
not have the right to give and open listing to the other brokers have the right to do what he did and only owes a commission to the selling broker have the right to relist the property with someone else due to the expiration of the listing be liable for payment of commission to agent Chris and to the selling broker
be liable for payment of commission to agent Chris and to the selling broker
The owner has the right to cancel the exclusive agency agreement before the termination date. However, if this is done the owner is liable for damages suffered by the original agent Chris if the property was sold within the 60-day period. The owner could be responsible for paying a commission to both the original agent (Chris) and the new selling agent.
The provisions of the Federal Fair Housing Law (Title VIII of the Civil Rights Act of 1968) allow for plaintiffs of discrimination to file:
civil action in federal court all of these civil action in state or local courts a complaint with HUD
all of these
The Federal Fair Housing Law permits a person who has been discriminated against to bring such action to state or local courts as well as federal courts. They can also file a complaint with HUD.
A broker may refuse to show a home to a minority buyer who has asked to see it in the following situation:
When the owner specifically states that there are no showings permitted while they are out of town Showing this property to a minority could cause panic in the neighborhood An owner of a single family home that is exempt from the 1968 Fair Housing Law asked their home not to be shown to minorities The agent cannot refuse to show property and must treat everyone the same
When the owner specifically states that there are no showings permitted while they are out of town
If the instructions are not to show the property, the agent must listen to the principal’s instruction regarding their home.
The term Realtor is owned by which of the following organizations, and only members of this organization can use the term?
The American Group of Agents The National Association of Realtors The American Association of Realtors The National Group for Realtors
The National Association of Realtors
On June 1st a prospective buyer gave a check for $5,000 payable to the seller along with a purchase agreement to buy a piece of real property. The buyer asked that the check not be cashed until June 15th. Of the following, which is correct?
The check cannot be accepted. Refuse the check and ask for cash Checks cannot be held and must be deposited immediately Checks must be delivered to the escrow company. The escrow company will make a decision. The agent can hold the check and must inform the seller that the check is being held uncashed before the seller is to accept the offer from the prospective buyer
The agent can hold the check and must inform the seller that the check is being held uncashed before the seller is to accept the offer from the prospective buyer
When a buyer requests that an agent hold a check and not cash it until a future date, the agent may do so. However, they must make the seller aware of the situation before the seller accepts the offer.
If a decision by the commissioner is unfavorable to a licensee, the licensee:
may appeal to the court must accept the decision of the commissioner may have the charge dismissed if it is a first offense may pay a fine to dismiss the decision and have it removed from their real estate file
may appeal to the court
A real estate broker advertises that he is offering a microwave oven valued at $400 to anyone that purchases a listing with his office. This advertising tactic is considered:
Illegal, regardless of the disclosures that are made legal if he provides the proper disclosures to all parties involved (buyer and seller) legal only if the valued gift is $100 or less legal if the buyer provides a copy of the advertisement
legal if he provides the proper disclosures to all parties involved (buyer and seller)
Once the required BRE courses are completed, what is the minimum age that an individual must be to apply for a license?
18 years 21 years 25 years No age minimum
18 years
Which of the following 2 activities are grounds for suspension or revocation of a real estate license when it comes to discrimination? (1) blockbusting, (2) hiring people from only one ethnic group.
only 2 neither 1 and 2 only 1 both 1 and 2
both 1 and 2
Real estate is an industry that is “color blind”, and per the real estate law the Real Estate Commissioner can revoke or suspend a real estate license if the agent is involved in any of these activities.
Failure to disclose a dual agency situation can lead to :
loss of commission suspension or revocation of license Civil action by the injured party All of these
All of these
Which of the following activities is considered discriminatory by a licensee and a violation of the law?
"Steering" only "Panic selling" only Commingling Both "panic selling" and "steering"
Both “panic selling” and “steering”
By definition, both “panic selling” (also referred to as “blockbusting”) and “steering” are considered discriminatory as both activities involve the discrimination of a specific population.
A minor is not allowed to enter into an exclusive authorization and right to sell contract with an agent because a minor:
is legally incapable can disaffirm the agreement at their discretion would need the consent and approval of the court is incapable of making an adult decision
is legally incapable
It is illegal for a minor to enter into a contract, unless the minor has been legally emancipated.
Which of the following disclosures are required from the seller to the buyer on all types of property?
Both The Mello-Roos Tax Lien disclosure and The Natural Hazard Disclosure The Mello-Roos Tax Lien disclosure The Dual Agency disclosure The Natural Hazard Disclosure
Both The Mello-Roos Tax Lien disclosure and The Natural Hazard Disclosure
When real property is sold, who receives a copy of the termite report from the seller?
the tax assessor's office the buyer the home inspector the title company
the buyer
Per California law, if the buyer asks for a copy of the termite report they are able to receive it from the seller.
If a broker holds an “option” on a real property and plans on exercising their option by selling the property to a buyer, they should inform the buyer that the broker is acting as:
a salesperson a principal an optionor a beneficiary
a principal
In this particular situation, the agent is acting as a seller, not an agent. Therefore the agent must inform the purchaser of their position as principal.
What term is used when the original contract is replaced with a new one?
do over novation counter rescission
novation
Nova is the root word of novation.The Latin word “nova” means new.
At a brokerage office, the real estate licenses of the licensees:
must be kept at the main office of the employing broker must be held by the broker for a minimum of one year must be displayed on the company wall must be mailed to the Real Estate Commissioner
must be kept at the main office of the employing broker
Of the following listings, which one enables the broker to represent the seller as an agent or allows the broker to purchase the property if they are interested?
Exclusive Right to Sell Option Listing Open Listing Exclusive Agency
Option Listing
A listing with a provision allowing the broker to purchase the property is an option listing.
John has a 20 unit building and plans to rent the units out to tenants. On the lease form, there is a question about race. Since John only wants to lease to Asians, which of the following is true?
A question like this is a violation of part 5 of the Discrimination in Housing of the Health and Safety Code Permitted As long as he shows the property to everyone, this is acceptable As long as he asks everyone the same question, this is acceptable
A question like this is a violation of part 5 of the Discrimination in Housing of the Health and Safety Code
Part 5 of the Discrimination in Housing of the Health and Safety Code is the Rumford Act.
Under which of the following listings must a seller pay the broker commission even though the seller sold the property through his own efforts?
Net Listing Exclusive Agency Exclusive Authorization and Right to Sell Open Listing
Exclusive Authorization and Right to Sell
Listing a home at a higher price and having minorities pay the inflated price while accepting a lower price from others is:
not a violation because people have choice to accept what they pay unethical, however no rules have been broken not acceptable and the real estate agent could be on the hook for money damages for violating the Fair Housing rules reasonable
not acceptable and the real estate agent could be on the hook for money damages for violating the Fair Housing rules
It is discriminatory to have minorities pay more for something than others. This is a violation of state and federal laws and the real estate agent could be responsible for money damages.
The process of the Agency Relationship Disclosure Act is to disclose, elect, and confirm. When did this act become effective?
2008 1988 1998 1978
1988
A broker is taking a listing on a home and the sellers have indicated to the broker that the home is not to be shown to any buyers of a minority group. The acceptable and reasonable response by the broker should be which of the following?
Inform the seller that they cannot accept the listing under those limiting conditions because it is considered discrimination. Advise the seller that this owner's instruction might help obtain a higher offer. Inform the seller that the broker will show the property to anyone that has interest in the property, although they have been instructed not to. Inform the seller that they have the right to make such demand and the broker will follow their instruction.
Inform the seller that they cannot accept the listing under those limiting conditions because it is considered discrimination.
Brokers should avoid any type of transaction that involves seller instructions to discriminate.
Of the following, which would be the best explanation of “riparian rights”?
None of these Right of a tenant farmer to harvest his own crops The right to use as much water as needed Absolute water ownership flowing past an landowner’s property
None of these
An owner who has land that adjoins a river has riparian rights to take a reasonable amount for his own use.
Adam made an offer to buy a piece of real property and put down a cash deposit. The offer and deposit were presented by agent Smith to the seller and the seller accepted the offer. Just before the close of escrow, Adam received permission to gain access to the property to refinish the floors and paint the walls. Of the following, which is true?
this is not allowed Agent Smith should receive written permission from the sellers to allow Adam into the property to make upgrades Adam should sign a rental agreement from the agent Smith to have access to the house Adam can do whatever he wants since it will be his property soon
Agent Smith should receive written permission from the sellers to allow Adam into the property to make upgrades
Until the escrow is closed and recorded, the seller remains the owner. The seller’s written permission is required before anything is to be done to the property.
When a salesperson wishes to advertise their real estate services, the advertisement must include:
the name and address of the broker both the name of the broker and the salesperson’s license number the name of the broker the salesperson’s name only
both the name of the broker and the salesperson’s license number
In a single agency agreement, a broker represents:
the seller only the buyer or seller only a single person the buyer and seller
the buyer or seller only
If a pest control company does not find any termite issues in a home, yet observes conditions that could possibly lead to an infestation in the future, who pays the cost of taking corrective actions?
The buyer if the buyer wants the corrective work to be complete. The buyer always The seller always The seller and buyer split the cost and everything is paid through escrow
The buyer if the buyer wants the corrective work to be complete.
Conditions that could possibly lead to an infestation in the future are not the seller’s responsibility when there is currently no termite damage or infestation on the property.
Several Asians have moved from their predominantly Asian neighborhood due to rising crime rates and lack of proper schooling. The local agent Julie is jumping on this opportunity. Which of the following is a violation of law: (1) an advertisement saying “sell now while you can” (2) charging more for her services for different ethnicities other than Asian?
1 only neither 2 only both
both
Both of these are clear violations of fair housing laws.
Licensing information can be obtained online at the following website?
www. dmv.ca.gov www. calicense.ca.gov www. cabroker.ca.com www. dre.ca.gov
www.dre.ca.gov
Which of the following is considered a violation of the fair housing laws in regards to a periodic tenancy?
The landlord requires a cosigner for any tenant who is single The landlord requires everyone to pay two months' rent and security deposit in advance The landlord requires each potential tenant to have references The landlord requires each tenant to have good credit
The landlord requires a cosigner for any tenant who is single
It’s a violation of fair housing to single out a certain class of people. In this case, single people were discriminated against by requiring that they have a cosigner.
Which of the following disclosures mandates that the seller and the agent must make full disclosure of material facts that may be known or unknown to a potential buyer?
Natural Hazard Disclosure Escrow Instructions Dual Agency Transfer Disclosure Statement
Transfer Disclosure Statement
When selling a residential property of one to four units, a seller and the listing agent must disclose all mechanical and structural conditions on the Real Estate Transfer Disclosure Statement to the buyer.
A developer of new single family homes instructed the sales staff to (1) give special preference to women who want to purchase and (2) set aside the same number of single family homes for each ethnic group. All of this to avoid being dormitory. Which of the following best describes both policy ideas?
the second policy is legal both policies are non-discriminatory both policies are discriminatory, therefore illegal the first policy is not illegal
both policies are discriminatory, therefore illegal
Preferential treatment and quotas are discriminatory and illegal.
Of the following individuals, which one is required to hold a California Real Estate License?
A real estate advertising agency A property owner who sells more than 3 homes in one year An investor who buys more than 4 properties in one year A mortgage loan broker
A mortgage loan broker
When representing a principal, a real estate broker will generally act:
by ratification as a fiduciary as a dual agent as an ostensible agent
as a fiduciary
If a seller’s real estate agent chooses to offer some of their commission to the buyer of the property during a real property sales transaction, the agent:
may face criminal charges is subject to disciplinary action by the Real Estate Commissioner need not inform the seller of where the commission is being spent must notify the seller of such payment to the buyer
must notify the seller of such payment to the buyer
The most important duties that an agent owes to their principal is to present them with their due diligence and uphold their fiduciary duties towards their principal. In this case, it is required that the seller’s agent disclose any and all information related to the transaction to their principal, the seller.
In a contract between a buyer and seller, the term “consideration’ can refer to which of the following?
Any of these Anything of value exchanged between both parties money Services
Any of these
When a broker is approached by a buyer who is of a minority group and the broker avoids showing them property in integrated areas, this would be an example of:
blockbusting redlining a legal activity steering
steering
Steering is when you guide people to certain areas and not to others based on their race, ethnicity, sex, etc.
The lead based paint disclosure is concerned with small children ingesting paint chips and applies to sales and rentals of 1-4 dwelling units built prior to:
1979 1978 1975 1970
1978
A seller and a broker enter into an Exclusive Authorization and Right to Sell listing. If the seller decides to revoke the contract, which of the following is correct?
The seller may revoke the contract with a certified letter, however the seller may be liable for broker damages and broker commission The seller cannot revoke the contract without the broker’s consent The seller cannot revoke the contract The seller may revoke the contract with a phone call and a verbal agreement
The seller may revoke the contract with a certified letter, however the seller may be liable for broker damages and broker commission
In 1988, a significant California law was implemented and continues to affect real estate agents. What does it relate to?
Unemployment insurance Mandatory agency disclosures Broker and salesperson relationships Minimum age for licensees
Mandatory agency disclosures
The Agency Disclosure Act was created in 1988.
If a broker does not disclose license status or company name in an advertisement, this is considered a/an:
unethical practice hidden form blind ad Illegal
blind ad
When an existing contract is replaced with a completely new contract, it is considered a/an:
Novation Recission Subrogation Assignment
Novation
The word “novo” means new, therefore novation would be the answer.
A licensed real estate broker has been accused of violating the Unruh Act for refusing to rent a property to individuals from a minority group. If this accusation is correct and the agent is found guilty he:
is subject to only actual damages suffered by a person infringed upon will be ordered to pay $250.00 to the individual infringed upon will be ordered to pay $25,000 to the individual infringed upon and is subject to actual damages neither will be ordered to pay $25,0000 to the individual infringed upon nor is subject to actual damages
will be ordered to pay $25,000 to the individual infringed upon and is subject to actual damages
Of the required 45 hours of continuing education, eighteen of those hours must be about:
customer loyalty escrow legalities consumer protection commercial agency
consumer protection
The maximum commission amount that an owner of real estate property is allowed to pay a broker for providing the service of negotiating a lease agreement is limited by:
law if the the lease term is more than one year the agreement of the parties The Realtor’s Code of Ethics the rate allowed by the local real estate board
the agreement of the parties
The commission amounts are negotiable for these real estate services provided by a brokerage.
When a prospective buyer of real property signs a properly prepared Residential Purchase Agreement which is to be submitted to the seller, this constitutes:
a binding and enforceable contract a valid contract all of these an offer
an offer
A broker signed an Exclusive Authorization Right to Sell listing with an owner. The broker has earned a commission when:
both buyer and seller have signed the purchase contract and the buyer has been notified of acceptance the deed is recorded escrow instructions have been executed the deed is signed
both buyer and seller have signed the purchase contract and the buyer has been notified of acceptance
Once the broker finds a buyer that is ready, willing, and able to purchase the seller’s property and is informed of the seller’s acceptance, the broker has earned the commission.
A licensed real estate agent had an oral listing agreement with the owner of a home and successfully sold it. If there was no written verification of the oral agreement, the broker’s commission is:
illegal enforceable in a court of law prohibited under the law of the Commissioner allowed if the seller decides to do so
allowed if the seller decides to do so
Although an oral listing is not illegal, according to the Statute of Frauds it must be in writing for it to be enforceable in a court of law. Because it is an oral agreement, the seller can elect to pay the broker a commission.
The trade name “Realtor” can only be used by the members of which of the following organizations?
National Association of Realtors American Association of Real Estate Real Estate Commission Board of America National Association of Realty Boards
National Association of Realtors
The primary purpose of the Federal Truth in Lending Act was to:
require lenders and creditors to disclose complete and thorough credit terms to prospective borrowers limit costs and expenses for borrowers seeking loans on 1-4 family dwelling units regulate federally chartered lending institutions regulate loans on commercial and industrial properties
require lenders and creditors to disclose complete and thorough credit terms to prospective borrowers
The real estate agent that has earned a commission on a transaction is typically the agent that performed which of the following real estate acts?
Receives a large down payment on an offer Informs the offeror that their offer has been accepted by the seller Receives an offer from a buyer Informs the seller of the offer from the buyer
Informs the offeror that their offer has been accepted by the seller
Explanation: The real estate agent has sold the home and has earned the commission if the offer was submitted by the agent,, the offer was accepted by the seller, and the agent informs the buyer of the acceptance.
An offer to purchase a piece of real property was received with an earnest money deposit in the form of a personal note in the amount of $2,200. Which of the following is true?
Accept the deposit only if the offer is accepted Without expressed permission, a deposit cannot be accepted. The note will have to be deposited within 3 business days for cash The seller should be informed that the deposit is in the form of a promissory note
The seller should be informed that the deposit is in the form of a promissory note
A promissory note is a form of legal consideration and can be used for a earnest money deposit, however the seller (principal) should be made aware of this.
It is statutory requirement for a broker and a salesperson to have a written agreement for employment and a copy to be kept by both for how many years?
2 years 4 years 1 year 3 years
3 years
If a buyer for a property decides to hand deliver an earnest money deposit check to an escrow clerk instead of handing it to their broker, how should the broker handle this situation?
Reflect it in the broker’s files and make a note of the check's disposition. Have the buyer bring another check for the same amount to the broker with “void” written on it. Contact escrow immediately and request they send the check to the broker. Advise the buyer to retrieve the check and deliver it to the broker.
Reflect it in the broker’s files and make a note of the check’s disposition.
The policy of the Real Estate Commissioner is to create an industry that is “color blind” and that will help reach peaceful, voluntary, equal opportunities in fair housing. What does this all mean?
Treat other people with the concern and kindness you would like them to show towards you all of these are correct interpretations Race, creed, and color are not a material fact in a transaction of real estate An industry that is free of bias and “color blind”
all of these are correct interpretations
All of these are correct and should be implemented in the real estate industry.
Of the following situations, which one would not place a real estate agent in violation of the real estate law?
Receiving a commission on an exclusive listing without a definite termination date Unauthorized use of the term “Realtor” Having access to government confidential files and using that information for personal gain Not informing a prospective buyer that the agent’s principal would sell below the list price
Not informing a prospective buyer that the agent’s principal would sell below the list price
Which of the following is best described as “of indefinite duration”?
An estate at from period to period An estate for years An estate of inheritance A periodic tenancy
An estate of inheritance
”Of indefinite duration” is the primary characteristic of fee simple estate, also known as an estate of inheritance.
In the Residential Listing Agreement, the purpose of the “hold harmless” clause is to protect the broker from any liability or claims resulting from:
misrepresentations made by the broker’s agents misrepresentation made by the appraiser false information from the buyer regarding their lending qualifications incorrect information supplied by the seller
incorrect information supplied by the seller
In which of the following ways can an agency relationship be terminated?
Amendment Completion Estoppel Lis Pendens
Completion
Once the purpose of the agency is completed, then the agency relationship is terminated.
Sales that are “as is” requires which of the following from the seller?
Commission Instruction Both Agent Visual Inspection Disclosure and Commission Instruction Transfer Disclosure Statement Agent Visual Inspection Disclosure
Transfer Disclosure Statement
When dealing with the sale of a residential income property, the maximum amount of commission a broker may charge a seller is:
set by the Real Estate Commissioner determined by the local real estate board not more than 10% of the sales price negotiable between the broker and the seller
negotiable between the broker and the seller
When would the United States Attorney General step in to enforce the Federal Open Housing Laws?
None of these When the secretary for Housing and Urban Development requests help Noncompliance of the Federal Open Housing Law They cannot get involved. These are overseen by the local governments
Noncompliance of the Federal Open Housing Law
The US Attorney General enforces the Federal Open Housing Law and would step in if there is evidence that noncompliance of the Federal Open Housing Law exists.
A real estate licensee presents an offer for an Asian buyer who is ready, willing, and able to purchase a real property in Santa Monica. The seller of the real property refused to accept the buyer’s full price offer due the buyer’s race. The real estate licensee may do which of the following?
all of these Take legal action against the seller for commission owed Warn the seller that their action violates the Fair Housing Act of 1968 Advise the Asian buyer of their right to place a complaint with the Department of Housing and Urban Development
all of these
This violates the Federal Housing Laws and the real estate licensee may do all of the above.
In California, which one of the following agencies is tasked with preventing acts of discrimination in housing that are based on race, sex, ethnicity, heritage?
Department of Veterans Affairs Department Interior Affairs Department of Labor Commission Department of Fair Employment and Housing
Department of Fair Employment and Housing
Violations and complaints are directed to the Department of Fair Employment and Housing.
Real estate brokers must maintain valid real estate licenses from their agents and keep their licenses filed at the:
broker’s branch office agent’s home office broker’s main office office where the salesperson is working
broker’s main office
A new men’s suit factory is being built in the city and it will employ mostly men. The owner of the real estate development office directed the sales staff to do the following: (1) direct their advertising to appeal to men who are single and have no children and (2) charge more rent to people of certain ethnic and religious groups than they do to others. Which of these is a violation of the Fair Housing Laws
both (1) and (2) (1) only (2) only neither (1) and (2)
both (1) and (2)
Both of these activities violate the Fair Housing Act.
If an owner of a property sells the home under his own efforts after hiring an agent, under which type of listing will the owner of the property still be contractually liable to pay a commission to the broker?
Exclusive Authorization and Right to Sell Listing Exclusive Agency Listing None of these Open Listing
Exclusive Authorization and Right to Sell Listing
Explanation: An Exclusive Authorization and Right to Sell listing provides the broker with a commission regardless of who brings a buyer, including the owner.
Real estate agent Janice, specializes in selling single family dwellings in Santa Monica. Janice can refuse to accept a property listing for which following reason?
All of these The majority of homeowners are minorities in that particular neighborhood The minority status of the resident The owner wishes to price the home $20,000 higher than the most expensive house for sale
The owner wishes to price the home $20,000 higher than the most expensive house for sale
If the agent refused to take a listing due to their race, that agent would be discriminating. An agent refusing to take an overpriced listing is acceptable .
After signing a purchase agreement, Ericka asked the broker if she could move onto the property prior to the close of escrow. What should the broker do?
Say yes Not allowed at all Get written permission from the seller to do so Say no
Get written permission from the seller to do so
The property belongs to the seller until escrow closes. Written permission should be obtained before allowing the new buyer access to the property before escrow closes.
A broker meets with a seller to list the home and the seller refuses to disclose on the Real Estate Transfer Disclosure Statement that the home is in a mudslide area which the seller clearly is aware of. The broker should:
not accept the listing advise the seller to do a “for sale by owner” only accept the listing verbally accept the listing
not accept the listing
Trust funds received by a broker should be placed into a neutral escrow depository, given to the principal, or placed into the broker’s trust account within how many days of receiving it?
5 business days 1 calendar week 3 business days 1 business day
3 business days
When is it appropriate for a real estate agent to complete the Real Property Transfer Disclosure Statement on behalf of their principal?
When instructed to do so by the principal When the buyer allows it and puts it in writing Never! Under no circumstance can a real estate agent complete this for their principal Anytime, it’s a part of their responsibility
Never! Under no circumstance can a real estate agent complete this for their principal
Civil codes prohibit a real estate agent from completing this for the seller.
When dealing with an “open listing”, a broker is entitled to a commission if there is proof that the broker:
was duly licensed at the time of the transaction was the procuring cause of the sale all of these found a buyer who was ready, willing, and able to purchase the property
all of these
Once an escrow has closed, what is the minimum amount of time a broker must keep all records pertaining to that transaction?
3 years 2 years 5 years 1 year
3 years
The direction “East” on a map is:
to the right toward the top toward the bottom to the left
to the right
Real estate agents are not permitted to use “blind” ads when advertising. A “blind” ad would be one that does not identify which of the following?
Broker Square footage List price Location of the property
Broker
A “blind ad” does not identify if the ad is placed by a homeowner or an agent.
If a property has a tax lien attached to it, the lien would typically be disclosed in the:
preliminary title report transfer disclosure statement escrow instructions None of these
preliminary title report
The laws of agency will be found in the:
Broker’s Binder Curriculum of the BRE Office of the Real Estate Commissioner Civil Code
Civil Code
An agent is found to have violated the Real Estates Commissioner’s regulation concerning Fair Housing dealing with discrimination. Of the following, what are the sanctions that can be placed on the agent?
Revocation or suspension of real estate license A fine and community service High punitive damages to teach them a lesson nothing, it’s a local issue
Revocation or suspension of real estate license
The Commissioner can revoke or suspend a license. They cannot levy damages. Only a court of law can pass down money damages.
A fee in real estate is:
the same as commission an estate of inheritance a reversion to the state an estate limited to certain heirs
an estate of inheritance
A fee estate is also considered an estate of inheritance and may be passed on the the owner’s heirs.
How are members of the National Association of Real Estate Brokers referred to?
Realty Associates Realtists Realtors Realty Brokers
Realtists
Members of the National Association of Realtors are referred to as Realtors, while members of the National Association of Real Estate Brokers are referred to as Realtists.
Of the following, which one is not considered real property?
A field of apple trees that are unpicked A leasehold estate An easement A chandelier hanging in a dining room
A leasehold estate
A leasehold estate is not considered real property.
To gain more listings, a real estate broker went door to door and informed home owners that due to the high population of minorities in their neighborhood, their property value would decline, the school quality would suffer, and there would be a rise in crime. The broker’s actions are:
unethical, however there are no rules within the California Bureau of Real Estate (BRE) to manage such activity grounds for disciplinary action acceptable if the broker is providing truthful information reasonable, as long as the broker’s actions did not decrease property values
grounds for disciplinary action
The actions taken by the broker are seen as promoting panic selling which is against fair housing laws. The Real Estate Commissioner could revoke or suspend the broker’s license.
A buyer made an offer for a piece of real property, however the buyer would not place a deposit for it. The buyer would only provide the deposit once the seller accepted their offer. In this case, the agent should:
remind the buyer that the offer to buy is void since there is no consideration do nothing. No deposit, no deal. get it in writing from the buyer and place the following verbiage on the offer, “buyer agrees to pay the deposit immediately upon seller’s acceptance” none of these
get it in writing from the buyer and place the following verbiage on the offer, “buyer agrees to pay the deposit immediately upon seller’s acceptance”
This is an example of how to create a specific instruction within a contract.
If an unlicensed assistant prepares an advertisement, it requires prior written approval by the:
the employing broker the owner of the brokerage escrow company the property owner
the employing broker
