Real Estate Practice Flashcards
How a house looks to a passerby when compared to the rest of the neighborhood is called:
Curb appeal
Both buyers and sellers should receive copies of any real estate agreement:
When it is assigned
When selling an older home, disclosure must be made to the buyer of any insurance claims made within the last:
Five years
When a phone caller inquires about a property that’s no longer available, a switch sheet allows an agent to:
Quickly reference similar properties
This new type of barcode that consists of black modules (square dots) arranged in a square grid on a white background, which can be rad by an imaging device is called a:
QR code
To be called a “REALTOR.” A licensee must be:
A member of the national association of Realtors (NAR)
A real estate salesperson license is valid for:
Four years
Which of the following can a potential borrower compare online?
Interest rates
Points
Fees
ALL OF THE ABOVE^^^
The federal civil rights act of 1968 was based on the Supreme Court Case of:
Jones v. Mayer
Which of the following statements is generally considered correct concerning brokerage firms that hire real estate assistants?
Agents who hire assistants list more properties then those that don’t
Agents who hire assistants sell more properties than those that don’t
Both A and B are correct
Which of the following is an excellent resource for finding FSBO’S?
Craigslist
An open house is a prospecting tool for finding:
Buyers
Sellers
Both A & B
Sources of listings may include:
Probate attorneys
“For sale by owner ads”
Foreclosures
ALL OF THE ABOVE^^
Which of the following allows you to send both word messages and pictures with just the client’s smartphone number?
Texting
Which of the following is one of the most used search engines for locating a real estate professional?
A real estate office concerned with its immediate and residual impact on the environment is best described as a(n):
Green office
Which of the following is TRUE concerning the employment relationship between the broker and salesperson?
A salesperson actively involved in real estate activities must be employed by a licensed broker
The CalBRE considers a salesperson an employee of the broker, even if he or she is an independent contractor, for the administration of the real estate broker law
The broker must carry worker’s compensation insurance for his or her salespeople
ALL OF THE ABOVE ARE TRUE^^^
Which of the following websites is associated with NAR?
Realtor.com
For income tax purposes, the straight-line depreciation schedule for RESIDENTIAL property is a minimum of:
27.5 years
Mello-Roos liens are municipal bonds issued to fund:
Local streets and sewers
A real estate broker who wants to include negotiation of loans for prospective borrowers and the sale of trust deed secured by real property will need:
A real property security dealer’s endorsement
Death does not cancel escrow because:
It is binding on the heirs (estate)
Of the prior agreed-to contract
Both A & B are correct
Escrow is not officially closed until:
All the conditions of of escrow have been completed
The buyers remaining money is received
The documents are recorded
ALL OF THE ABOVE^^^^
The foreign investment is real property tax act (FIRPTA) can be found on which CAR form?
Seller’s affidavit of non foreign status
In a listing agreement, handwritten or typed-in instructions:
Are given precedence over preprinted instructions
In a trust deed, the party who is borrowing money is called the:
Trustor
Which of the following is NOT an institutional lender?
Private lender
The loss of value due to factors within a structure is called:
Functional obsolescence
Liquidated damages are:
Paid for not fulfilling a clause or condition in the contract
Agreed to in advance and stated in the contract
BOTH B & C ARE CORRECT^^
The seller must provide the buyers with a lead-based paint notice as an attachment to the purchase contract if the residential property was constructed:
Prior to 1978
An incoming call register is a useful tool for:
Record keeping
Controlling ad revenue and expenses
Following up on inquires
ALL OF THE ABOVE^^^
The processing of the paperwork and money involved in a real estate transaction by a neutral third party is referred to as:
Escrow
Surveys have shown that younger clients prefer to be contacted by their real estate agent via:
Email
Tweet
Text
ALL OF THE ABOVE^^^^
The higher the gross multiplier:
The higher the price
The process of getting listing information displayed on numerous other websites is:
Listing syndication
Which of the following social networking sites allows you “pin” images, articles, videos, etc, to a virtual bulletin board?
A packet of forms an agent provides to the seller when taking a listing is called:
A listing kit
The Continuing Education (CE) requirements to renew a license is:
45 hours every 4 years
Any person who is actively involved in a real estate transaction a the service of another, in the expectation of receiving a commission, must be:
Licensed
At what age does the average person start buying a retirement home?
65
If there is a contradiction in the purchase agreement form:
The handwritten or typed-in words supersede the printed words
If there is a contradiction on the purchase agreement form:
The handwritten or typed-in words supersede the printed words
Which of the following statements is NOT TRUE concerning listings in California?
Listing agreements are also referred to as purchase contacts
Which of the following property tax exempt in California?
National and state parks
Profit owned by non-profit organizations
BOTH A & B ARE CORRECT
The housing financial discrimination act of 1977 prohibits:
Redlining
What percentage if prospective homebuyers uses the internet to search for a home before contacting an agent?
90%
What entity requires that you include your salesperson or broker’s license number on all your real estate websites?
CalBRE
Which social media site only allows the use of 140 or less characters?
An ad valorem tax is a tax that is charged:
In proportion to the value of the property
Which of the following is the best way to keep track of the ads that bring on phone inquires?
Ad call log book
The compensation for processing the loan and setting it up on the books, which is based on the loan amount, is:
A loan origination fee
In a trust deed, the party who is lending the money is called the:
Beneficiary
Which of the following refers to a business that has an actual physical presence?
Brick and mortar
Under a “Covenant Not To Compete,” a seller usually agrees not to open a competing business:
For a period of time
Within a specified geographical area
BOTH A & B ARE CORRECT^^^
The Verification of Property Condition form is filled out:
During the final walk-through
Which of the following forms details the. Cost of the purchase, including monthly payments?
Estimated buyer’s costs
All the documents a brokerage generates for a single completed transaction are kept in:
A master transaction file
A publication or website that lists telephone numbers by addresses rather than names is called a:
Reverse directory
A salesperson who is actively engaged in professional real estate activities must be employed by:
A licensed real estate broker
In California, who customarily conducts the title search, prepares preliminary reports, and issues policies of title insurance:
Title insurance company
The basic types of income producing properties include:
Office buildings
Retail property
Industrial property
ALL OF THE ABOVE^^^
Lenders who charge an additional processing fee to non-English speaking applicants because of the cost of hiring bilingual employee:
Are guilty of practicing discrimination
In a purchase contract, which of the following are NOT usually considered a financing contingency?
Obtaining the deposit
Obtaining the down payment
Obtaining closing costs
ALL OF THE ABOVE^^^
Real estate assistants who choose to become notary public’s must:
Maintain an official record called a notary journal
Use an official seal of notary
BOTH B & C ARE CORRECT ^^^
The most updated real estate information online can be found on:
Realtor.com
In a listing agreement, which instructions are given the most consideration (take precedence)?
Handwritten instructions
Which of the following listing forms does the seller receive a copy of?
Residential listing agreement
Seller’s advisory
Estimated seller’s proceeds
ALL OF THE ABOVE^^^
The terms mortgagee and mortgagors refer to :
Mortgages only
The collection of seller information from several MLSs to post to one site for easier comparison is known as:
MLS aggregation
An MLS and its cooperating brokers are denied access to a listing by the seller, and only the listing agent or member of his or her firm are given permission to show an present offer on a property. This is called a(n):
Office exclusive
The rollback of California Property tax to 1% of the selling price, plus 2% cumulative interest every year thereafter, was mandated by:
Proposition 13
Errors and Omissions insurance is meant to protect whom from liability?
Brokers
Agents
BOTH A & B^^^
The purpose of a lockbox is to:
Store keys to the property from agent access
Which of the following is known for using Automated Valuation Systems (AVM’s)?
Zillow.com
Which of the following is NOT one of the three requirements for a valid escrow?
Legal advice
An “encumbrancer” has an interest in a property by value of having:
Placed a lien on a property
Acquired an easement against the property
Imposed restrictions against the property
ALL OF THE ABOVE^^^
FSBQ refers to which of the following?
For sale by owner
The Real Estate Commissioner is:
Appointed by the Governor
In California, a real estate assistant:
Is not required to be licensed
The improvement bond act of 1915:
Is a special assessment tax
Finances street and highway improvements
Is based on the frontage of property facing the improved streets
ALL OF THE ABOVE^^^
Which of the following would normally be found in a shared document file?
Seller’s information
All disclosures
Buyer’s information
ALL OF THE ABOVE^^
Thanks to internet technology as an agent or broker you can now legally:
Track how many potential buyers access a particular property’s website
Ownership of a website (domain name) is treated legally most like:
Real property (cyber real estate)
A weekly outgoing whereby all available salesperson from one office preview all the newest brokerage listing is called:
Office caravan
What agency regulates the issuance of liquor licenses in California?
California Department of Alcoholic Beverage Control (ABC)
Which of the following is TRUE concerning the Buyer’s Request for Repairs?
The buyers request is really a wish list
The sellers may choose to do all, some, or none of the repairs
The buyer can remove request and submit a new one
ALL OF THE ABOVE^^^
Liability insurance that protects the agent and broker from catastrophic lawsuits brought by the public is called:
Errors and omission insurance
What type of listing is considered the least desirable?
Open listing
Which of the following is true concerning the Transfer Disclosure Statement?
It must be provided to prospective buyers by sellers of one to four residential units
A buyers has two years to sure an agent for failure to make proper disclosures
Which of the following is NOT true concerning REITs in California?
REITs are illegal in California
An allowance for vacancies and uncollectible rents is called:
Vacancy factor
Common interest developments are governed by members of:
Homeowners associations
To earn a commission, a broker must produce a buyer who is:
Ready
Willing
Able
ALL OF THE ABOVE^^^^
Character, capacity, and capital are called the three C’s of:
Credit
When selling real estate, the least effective form of communication is:
By letter (one way)
If any financing term is mentioned in an ad, the FTC requires the ad also mention the:
Annual percentage rate (APR)
The statewide buyer and seller advisory (SBSA) is signed by:
The buyer
The seller
BOTH A & B ^^^^
In California, an apartment complex with 16 or more units:
Must have an on-site property manager
The main purpose of the CalBRE is to:
Protect the public
The contingency for sale of purchase of the property form indicates whether a condition of the sale depends on:
The sale of the buyer’s property
The seller’s purchase of a replacement property
BOTH A & B^^^^^
What type of lease calls for an additional percentage of the lessee’s gross business income above the minimum fixed rent?
Percentage lease
How many brokers can a salesperson work for at a time?
Only one
The most frequently visited social networking site on the internet is:
To be classified as a mobile home (manufactured housing), a vehicle must be:
8 feet wide
40 feet long
BOTH B & C ^^^^
When writing effective ads, the formula “AIDA” refers to:
Attention, interest, desire, action
The county officer who collects real property taxes is the:
County tax collector
What is becoming the most commonly requested form of communication between client and agent?
Text
A personal hotspot that lets smartphone users share their wireless data connection with other nearby devices is also called:
Tethering
The documentary transfer tax is computed at:
55 cents for each $500
Escrow can be terminated by all of the following, EXCEPT:
Seller’s recession without buyer’s consent
Which large tech-savvy segment of the population should create the next house buying wave?
Millennials
To earn the commission guranteed by a safety clause, the original listing broker must provide the seller with a list of prospects who were shown or made offers on the property within:
3 calendar days of the expiration of the original listing
Real estate assistants who choose to become notary public’s must:
Maintain an official record called a notary journal
Use an official seal of notary
BOTH B & C ARE CORRECT^^^
The sum of money agreed to in an advance and sated in the contract that will be paid as damages by the buyer for not fulfilling a clause or condition in the contract is a provision called:
Liquidated damage provisions
Escrow companies use a base month of:
30 days
A report showing the condition of title before a sale or loan transaction is called the :
Preliminary title report
Copies of the listing agreement must be given to the signing parties:
At the time signature are obtained
Advantages to home ownership include:
Appreciation
Tax benefits
Equity buildup
ALL OF THE ABOVE^^^
In a trust deed, the party who is usually borrowing money is called the:
Trustor(buyer)
What does QR code stand for?
Quick Response
Economics obsolescence is:
Not considered “curable”
Loss of value due to conditions outside the property itself (external)
BOTH A & C ^^^^^
The California state law that prohibits steering and blockbusting is:
The Unruh Civil Rights Act
Under the buyer occupancy section of the purchase contract, the term “CE+3” means:
The buyer will take possession 3 days after the close of escrow
The term CMA refers to:
Comparative Market Analysis
The Real Estate Settlement Procedures Act (RESPA) covers the sale of:
One- to four-residential units
Police power provisions are laws created to benefit:
Health
Safety
Morals
ALL OF THE ABOVE^^
Operating expenses that do not vary depending on the occupancy of the property are:
Fixed expenses
If an owner enters into an exclusive agency listing and thereafter sells the property through his or her own efforts:
No commission is payable
In creating a comparative Market Analysis (CMA), which of the following is important?
Only select recent sales of comparable properties
The term APR refers to:
Annual percentage rate
To qualify for a brokers license, a four-year bachelors degree with a major or minor in Real Estate is equal to:
2 years of experience
Seller’s disclosures must be approved as soon as possible
By buyers
To insure a binding contract
BOTH A & B ^^^^^
The most commonly used purchase contract in California is the:
California Residential Purchase Agreement and Joint Escrow Instructions form
A time-tested method used in writing real estate ads is a formula known by the acronym (initials):
AIDA
When you are an agent for ONLY one party, representing either the seller OR the buyer, it is called:
Single agency
Which of the following is on online social networking site for business professionals to connect, network, and engage?
A resident manager:
Lives on the property
May also be referred to as an on-site manager
May also be referred to as a building superintendent
ALL OF THE ABOVE^^^
To secure an endorsement as a real property securities dealer:
A broker’s license is required
An “open house” is a planned period of time during which a property for sale:
Is held open for public viewing
A salesperson who receives all (or nearby all) of the commission earned from a real estate transaction:
Has a 100% commission arrangement with his or her broker
“No Darn Fooling Around” is a method for remembering:
Important property tax dates
To earn a commission, a broker must produce a buyer who is:
Ready, willing, and able
A seller of a business agrees not to open another business establishment similar to that being sold for six months. Such an agreement is called a:
Covenant not to compete
The rollback of California property tax to 1% of the selling price, plus 2% cumulative interest every year thereafter, was mandated by:
Proposition 13
Before making an offer, which of the following forms should be provided to the buyer detailing the total cost of the purchase, including monthly payments?
Estimated Buyer’s Cost
A person who is paid to exercise control over the assets of a common interest development is a:
Managing agent
Which of the following government organizations makes direct loans to borrowers?
CalVet
On owner-occupied property, the homeowners property tax exemption is the first:
$7,000 of assessed value
An assistant working as an independent contractor may be expected to:
Pay his or her own taxes
A charge to the borrower for paying off all or part of a loan balance before the due date:
Is called a prepayment penalty
The type of ordinance in a city on residential properties that controls rents charged and how big rent increases can be is called:
Rent control
A person whose physical conduct is not subject to the control of each another, and who sells results rather than time, is:
An independent contractor
The list of potential clients that an agent contacts on a regular basis:
Is considered his or her “sphere of influence”
The California standard form fire insurance policy insures against:
Fire and lightning
The seller must provide the buyer with a lead-based paint disclosure as an attachment to the purchase contract if the residential property was constructed:
Prior to 1978
The average amount an agent spends on real estate technology annually is:
Between $500 and $1,000
The form that is often referred to as “FIRPTA” is the:
Seller’s Affidavit of Nonforeign Status and/or California Withholding Exemption
The Real Estate Commissioner has the right to:
Revoke a license
Restrict a license
Suspend license
ALL OF THE ABOVE^^^^
The Federal Home Loan Mortgage Corporation (FHLMC) is commonly known as:
Freddie Mac
A legal “artificial being” conducting business under a chartered name is a:
Corporation
The continuing education (CE) requirement to renew a license is:
45 hours every 4 years
Broker’s should examine the call log book regularly to determine:
The impact of any advertising campaign
The inventory of properties held primarily for sale to customers is called:
Dealer property
Inventory property
Either A OR B ^^^
In California, qualifying owner-occupied residential property receives an annual homeowner’s exemption of:
$7,000
How many copies of a listing agreement must be provided to a couple who os considered “one legal entity”
One
The Real Estate Commissioner warns about which of the most commonly used real estate Internet Scams?
Creating a fake or fictitious listing for a rental property
Offering to rent a real, but unavailable property
Renting a property that is in foreclosure
ALL OF THE ABOVE^^^^
Which of the following is a lender’s extended coverage policy?
ALTA
The sale or lease of a business enterprise or opportunity and its goodwill is known as a:
Business opportunity
A real estate assistant may work
Full time
Part- Time
On call
ALL OF THE ABOVE^^^^
Domain names are now officially considered:
Cyber real estate
The MLS has an automatic email system that notifies a buyer when homes that fit hos or her criteria come on the market called:
Auto email alerts
Lenders refer to a borrower with a low FICO score and a limited ability to cover family living expenses as a:
Subprime borrower
CalBRE licenses (brokers) who wish to negotiate mortgage loans and receive compensation for their services must have a:
NMLS endorsement
The Real Estate Commissioner requires that all agreements prepared by salespeople:
Be approved by their designated broker or sales manager
Be approved within a reasonable time
BOTH B & C ^^^^
Most property owners move on an average of every:
6 to 8 years
As a fiduciary, you owe it:
To your principal to obtain the best market price
To yourself to get the listing at a sale able price
BOTH A & B ^^^^^
In California, who customarily conducts the title search, prepares preliminary reports, and issues policies of title insurance?
Title insurance company
The source of most long-term financing for regional malls is:
Life insurance companies
Which of the following do home buying research on the Internet?
Buyers
In order for agents to gain access to the house, keys are often kept:
In a lockbox
“Scheduled income” is the potential gross income a property is capable of producing:
If there were no vacancies
Without deductions for expenses
BOTH A & B^^^^
Failure of a buyer to fulfill the terms in the notice to buyer to perform gives the seller the right to:
Cancel the escrow within 24 hours if other terms are not specified
When selling Real Estate, the MOST effective form of communication is:
Direct contact(Face to Face)
In a purchase contract, which of the following are NOT considered contingencies?
Obtaining the deposit
Obtaining the down payment
Obtaining closing costs
ALL OF THE ABOVE^^^^
The CALBRE salesperson’s exam:
Takes three hours and 15 minutes
Has 150 questions
Requires a score of 70% to pass
ALL OF THE ABOVE^^^^
The time assigned to individual agents to answer the company telephone is called:
Floortime
The amount of commission payable to a real estate broker is ordinarily based on:
Agreement of the parties
The list of potential clients that an agent contacts on a regular basis:
Is considered his or her “sphere of influence”
A tenant’s right to occupy real estate during the specified term of a lease is a:
Less-than-freehold estate, or leasehold estate
Soliciting potential clients by telephoning people you don’t know is called:
Cold calling
An escrow holder can be:
A corporation
An attorney
A real estate broker acting as the agent in a transaction
ALL OF THE ABOVE^^^^
Real property taxes are:
Determined according to the value of the real property
As valorem taxes
Paid annually or semi-annually
ALL OF THE ABOVE^^
Which of the following lenders makes the majority of their funds available for short-term, high interest loans like credit cards and automobile loans?
Commercial banks
The type of ordinance in a city on residential properties that controls rents charged and how big rent increases is called:
Rent control
The annual percentage rate (APR) is:
The amount financed plus interest rate, points, and loan fees
The actual cost of borrowing money
Expressed as a percentage
ALL OF THE ABOVE^^^
The letters “PMI” refer to:
Private Mortgage Insurance
If the seller is not bale or not willing to perform the terms and conditions agreed upon in the original purchase agreement, the buyer’s agent forwards which form to the listing agent?
Notice to seller to perform
How a house looks to passerby compared to the rest of the neighborhood is called:
Curb appeal
Which type of commission plan does a broker not charge a fee, but a commission based on a percentage of the selling price?
Straight commission plan
The type of listing in which the owners would be obligated to pay a commission to the broker even if the owners sell the property themselves during the listed period is:
An exclusive right too sell listing
