Real Estate Practice

Question 1

In the typical escrow transaction in can be said that

(a) The escrow holder is reactive and the real estate agent is proactive
(b) The real estate agent is reactive and the escrow holder is proactive
(c) Both the escrow holder and real estate agent are reactive
(d) Both the escrow holder and real estate agent are proactive

Answer 1

(a) The escrow holder is reactive and the real estate agent is proactive

Question 2

To be eligible to take the California salesperson’s license exam the applicant must
(a) Take Real Estate Principles mandatory course
(b )Take Real Estate Practice mandatory course
(c) Take any approved elective course
(d) All of the above

Answer 2

(d) All of the above

Question 3

College courses for the broker’s license exam
(a) Must be three semester units or four quarter-units at the college level
(b Must be completed at an institution of higher learning accredited by any Association of Schools and Colleges
(c) Are not acceptable If completed through a foreign institution
(d) May include coursed from private institutions approved by the California Dept. of Education

Answer 3

(a) Must be three semester units or four quarter-units at the college level

Question 4

In order to successfully pass the salesperson exam, one must achieve a passing score of

(a) 70% or greater with examinees allowed 4 hours and 15 minutes in which to complete it
(b) 70% or greater with examinees allowed 3 hours and 15 minutes in which to complete it
(c) 75% or greater with examinees allowed 4 hours and 15 minutes in which to complete it
(d) 75% or greater with examinees allowed 3 hours and 15 minutes in which to complete it

Answer 4

(b) 70% or greater with examinees allowed 3 hours and 15 minutes in which to complete it

Question 5

Broker examinees must

(a) Have at least 2 years’ experience in the last 5 years as a California real estate salesperson
(b) Successfully pass the examination with a passing score of 75% or greater
(c) Both a and b
(d) Neither a nor b

Answer 5

(c) Both a and b

Question 6

Members of the California State Bar may take the broker’s exam as follows

(a) Are statutorily exempt from the college-level course requirements
(b) Are exempt from the two-year experience requirement
(c) Must provide evidence of admission to the practice of law in California must be furnished
(d) All of the above

Answer 6

(d) All of the above

Question 7

The following may refer to REALTORS®

(a) Any real estate licensee
(b) Any real estate salesperson
(c) Any real estate broker
(d) Licensed real estate agents who are members of the National Association of REALTORS®

Answer 7

(d) Licensed real estate agents who are members of the National Association of REALTORS®

Question 8

A loan term of 15 years means

(a) It is due and payable in full at the end of 15 years
(b) May be amortized on a 30 year term with a balloon balance in 15 years
(c) Both a and b
(d) Neither a nor b

Answer 8

(c) Both a and b

Question 9

If seller financing is part of the transaction

(a) The escrow holder is required under the law to provide the seller with the SFA form
(b) The seller is required under the law to provide escrow with the SFA form
(c) The real estate agent is required under the law to provide the seller with the SFA form
(d) The buyer is required under the law to provide the seller with the SFA form

Answer 9

(c) The real estate agent is required under the law to provide the seller with the SFA form

Question 10

In a purchase contract, a penalty which the buyer must pay if escrow is allowed to continue past the closing date is called

(a) A per diem fee
(b) A per se fee
(c) Both a and b
(d) Neither a nor b

Answer 10

(a) A per diem fee

Question 11

If a party who has requested escrow to be cancelled does not receive the funds requested within the 30-day term

(a) That party may sue the other party
(b) May be entitled to treble damages from the other party no greater than $500
(c) May be entitled to double damages from the other party no less than $100
(d) An escrow holder has no responsibility in such a case

Answer 11

(a) That party may sue the other party

Question 12

Unless exempt, the seller must provide the buyer with a written statement indicating that the property is in compliance with the law governing smoke detectors and may be delivered to

(a) The agent of the buyer
(b) The spouse of the buyer
(c) The home inspection company of the buyer
(d) The title company

Answer 12

(b) The spouse of the buyer

Question 13

The law provides if a smoke detector in a tenant’s unit is inoperable

(a) The tenant has a duty to notify the manage
(b) The owner is not in violation if the tenant fails to notify him or her
(c) Both a and b
(d) Neither a nor b

Answer 13

(c)Both a and b

Question 14

Under California law, carbon monoxide alarms

(a) Must be installed outside each sleeping areas of the home
(b) May be used to replace smoke alarms
(c) Both a separate smoke and a carbon monoxide alarm/detector are required
(d) Are not required to be installed in a basement

Answer 14

(a) Must be installed outside each sleeping areas of the home

Question 15

In a purchase transaction in which no title insurance is to be issued

(a) The buyer must receive, sign and acknowledge a notice of the risk as provided by law
(b) The seller must receive, sign and acknowledge a notice of the risk as provided by law
(c) The escrow holder is responsible for delivery of notice under statute of law
(d) A real estate broker conducting an escrow would not be responsible at all for delivery

Answer 15

(a) The buyer must receive, sign and acknowledge a notice of the risk as provided by law

In an escrow for a sale (or exchange) of real property where no title insurance is to be issued, the buyer (or both parties to an exchange) must receive and sign and acknowledge the following notice in the format (capital letters and bold type) shown and as required by California Civil Code Section 1057.6, as a separate document in the escrow.

Question 16

A seller of a one-to-four-unit residence must disclose a death occurring on the property within

(a) Three years from the date that the purchase agreement was entered into
(b) Four years from the date that the purchase agreement was entered into
(c) Five years from the date that the purchase agreement was entered into
(d) Seven years from the date that the purchase agreement was entered into

Answer 16

(a) Three years from the date that the purchase agreement was entered into

Question 17

If a property is a one-to-four unit building, one of which the buyer had intended to occupy, liquidated damages provisions in a purchase transaction to be retained by the seller in the event of a buyer’s cancellation can be no more than

(a) 4% of the sales price, with any excess returned to the buyer
(b) 5% of the sales price, with any excess returned to the buyer
(c) 7% of the sales price, with any excess returned to the buyer
(d) 3% of the sales price, with any excess returned to the buyer

Answer 17

(d) 3% of the sales price, with any excess returned to the buyer

Question 18

California law specifically states that a real estate broker may

(a) nominate an escrow holder as a condition to a transaction.
(b) not nominate an escrow holder as a condition to a transaction.
(c) nominate an escrow holder if the agent represents the seller.
(d) nominate an escrow holder if the agent represents the buyer.

Answer 18

(b) not nominate an escrow holder as a condition to a transaction.

Question 19

The general qualifications for obtaining a California real estate license state that

(a) an individual must be 18 years of age or older.
(b) an individual must reside in California.
(c) an individual convicted of a crime may be denied a license.
(d) both a and c.

Answer 19

(d) both a and c.

Question 20

Under the general education requirements for obtaining a California real estate salesperson license, an individual must

(a) complete three college-level courses as specified by the Department of Real Estate.
(b) possess a degree from a four year college.
(c) possess a high school diploma or GED.
(d) complete eight college level courses as indicated by the Bureau of Real Estate.

Answer 20

(a) complete three college-level courses as specified by the Department of Real Estate.

Question 21

Under California law, members of the state bar who want to obtain a California real estate license are

(a) exempt from the college course requirements.
(b) required to complete the college courses as required.
(c) required to complete only one of the college level courses.
(d) exempt from college course requirements if practicing real estate law.

Answer 21

(a) exempt from the college course requirements.

Question 22

Unless exempted under the law, to take the California real estate broker’s license exam, an individual must have experience as a full-time California licensed salesperson

(a) for two of the last five years.
(b) for two years.
(c) for five years.
(d) for 18 months.

Answer 22

(a) for two of the last five years.

Question 23

The California Association of REALTORS Purchase Agreement and Joint Escrow Instructions calls for a loan contingency to be removed

(a) in 7 days, unless otherwise stated.
(b) in 17 days, unless otherwise stated.
(c) in 30 days, unless otherwise stated.
(d) as specified under specific California law.

Answer 23

(b) in 17 days, unless otherwise stated.

Question 24

Under truth-in-lending disclosure laws, a borrower obtaining a loan, subject to its provisions, must obtain a revised TIL from the lender if the originally disclosed rate is increased by 0.125% or greater and must wait an additional

(a) three business days before loan signing.
(b) three calendar days before loan signing.
(c) seven business days before loan signing.
(d) seven calendar days before loan signing.

Answer 24

(a) three business days before loan signing.

Question 25

Under California Buyer’s Choice Act, a beneficiary who obtained a property through foreclosure and violates the law as a seller may be

(a) subject to damages twice the amount of escrow and title charges.
(b) subject to damages three times the amount of escrow and title charges.
(c) within its legal rights to do so in every instance.
(d) subject to a written order to cease but no financial penalty is imposed.

Answer 25

(b) subject to damages three times the amount of escrow and title charges.

Question 26

Under California law, a beneficiary acquiring a property through foreclosure and who is the seller in an escrow transaction

(a) is not exempt from delivering a Transfer Disclosure Statement to the buyer.
(b) is not exempt from being required to disclose any known defects to a buyer.
(c) is exempt from being required to disclose any known defects to a buyer.
(d) and is represented by a real estate agent, neither the seller nor the agent is required to deliver a Transfer Disclosure Statement to the buyer.

Answer 26

(b) is not exempt from being required to disclose any known defects to a buyer.

Question 27

Under federal law, the buyer of a residential one-to-four-unit building constructed before 1978 must be given a booklet prepared by the government regarding the possibility of lead-based paint and

(a) 10 days to inspect the property.
(b) 17 days to inspect the property.
(c) 3 days to inspect the property.
(d) a reasonable amount of time to inspect the property.

Answer 27

(a) 10 days to inspect the property.