Real Estate Practice 7/8 Flashcards
How a house looks to a passerby when compared to the rest of the neighborhood is called: A. Curb appeal B. Viewability C. Competitive factor D. All above
A
Both buyers and sellers should receive copies of any real estate agreement: A. After a 3 day waiting period B. When it is signed C. At the close of escrow D. None above
B
When selling an older home, disclosure must be made to the buyer of any insurance claims made within the last: A. 3 days B. 3 months C. 5 years D. None above
C
When a phone caller inquires about a property that’s no longer available, a switch sheet allows an agent to:
A. Quickly reference similar properties
B. Confuse the caller with too many alternatives
C. Legally use the bait-and-switch technique
D. Pre-qualify the caller before showing other properties
A
This new type of barcode that consists of black modules (square dots) arranged in a squared grid on a white background, which can be read by an imaging device is called a: A. QR code B. RFID tag C. Scanning square D. PR code
A
To be called a “REALTOR” a licensee must be:
A. A member of the National Association of REALTORS (NAR)
B. A member of the state bar of California
C. A broker
D. None above
A
A real estate salesperson’s license is valid for: A. 1 yr B. 4 yrs C. 10 yrs D. A lifetime
B
Which of the following can a potential borrower compare online? A. Interest rates B. Points C. Fees D. All above
D
The Federal Civil Rights Act of 1968 was based on the Supreme Court case of: A. Jones v. Jones B. Jones v. Smith C. Jones v. Mayer D. None above
C
Which of the following statements is generally considered correct concerning brokerage firms that hire real estate assistants?
A. Agents who hire assistants list more properties than those who don’t
B. Agents who hire assistants sell more properties than those who don’t
C. Both a and b are correct
D. Neither a or b is correct
C
Which of the following is an excellent resource for finding FSBOs (for sale by owner)? A. Craigslist B. EBay C. Twitter D. Angies list
A
An open house is a prospecting tool to finding: A. Buyers B. Sellers C. Both a and b D. Neither a nor b
C
Sources of listing as may include: A. Probate attorneys B. “For sale by owner” ads C. Foreclosures D. All above
D
Which of the following allows you to send both word messages and pictures with just the clients smartphone number? A. Email B. Texting C. Phishing D. None above
B
Which of the following is one of the most used search engines for locating a real estate professional? A. EBay B. Craigslist C. Google D. YouTube
C
A real estate office concerned with its immediate And residual impact on the environment is best described as a(n): A. Environmentally friendly office B. Smoke-free office C. Green office D. None above
C
Which of the following is TRUE concerning the employment relationship between the broker and salesperson?
A. A salesperson actively involved in real estate activities must be employed by a licensed broker.
B. 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.
C. The broker must carry worker’s compensation insurance for his or her salesperson
D. All above are true
D
Which of the following websites is associated with NAR? A. Realtor.com B. Comicon.com C. National area rentals.com D. None above
A
For income tax purposes, the straight-line depreciation schedule for RESIDENTIAL property is a minimum of: A. 27.5 yrs B. 39 yrs C. 55 yrs D. None above
A
Mello-Roos liens are municipal bonds issued to fund: A. Federal lending organizations B. Local streets and sewers C. Local political campaigns D. All above
B
A real estate broker who wants to include negotiation of loans for prospective borrowers and the sale of trust deeds secured by real property will need:
A. A real property security dealers endorsement
B. To speak several languages
C. A law degree
D. All above
A
Death does not cancel escrow because: A. It is binding on the heirs (estate) B. Of the prior agreed-to contract C. Both a and b are correct D. Neither a nor b are correct
C
Escrow is not officially closed until:
A. All the conditions of escrow have been completed
B. They buyer’s remaining money Is received
C. The documents are recorded
D. All above
D
The foreign investment in real property tax act (FIRPTA) can be found on which CAR form?
A. Residential listing agreement
B. Seller’s affidavit of non foreign status
C. Estimated seller’s proceeds
D. None above
B
In a listing agreement, handwritten or typed-in instructions:
A. Are given precedence over preprinted instructions
B. Are superseded by pre printed instructions
C. Are not permissible
D. None above
A
In a trust deed, the party who is borrowing money is called the: A. Trustor B. Trustee C. Beneficiary D. None above
A
Which of the following is NOT an institutional lender? A. Savings bank B. Private lender C. Commercial bank D. Life insurance company
B
The loss of value due to factors within a structure is called: A. Functional obsolescence B. Economic obsolescence C. Social obsolescence D. All above
A
Liquidated damages are:
A. The damages caused by flooding
B. Paid for not fulfilling a clause or condition in the contract
C. Agreed to in advance and stated in the contract
D. Both b and c
D
The seller must provide the buyer with a lead-based paint notice as an attachment to the purchase contract if the residential property was constructed: A. Prior to 1998 B. Prior to 1988 C. Prior to 1978 D. All above
C
An incoming call register is a useful tool for: A. Record keeping B. Controlling ad revenue and expenses C. Following up on inquiries D. All above
D
The processing of the paperwork and money involved in a real estate transaction by a neutral third party is referred to as: A. Usury B. Escrow C. Pre-qualifying D. None above
B
Surveys have shown that younger clients prefer to be contacted by their real estate agent via: A. Email B. Tweet C. Text D. All above
D
The higher the gross multiplier: A. The higher the price B. The lower the price C. The lower the commission D. None above
A
The process of getting listing information displayed on numerous other websites is: A. Networking B. Listing syndication C. Yahooing D. Spamming
B
Which of the following social networking sites allows you “pin” images, articles, videos, etc. to a virtual bulletin board? A. LinkedIn B. Pinterest C. Facebook D. Twitter
B
A packet of forms an agent provides to the seller when taking a listing is called: A. A package deal B. A master kit C. A listing kit D. None above
C
The continuing education (CE) requirements to renew a license is: A. 10 hours every 2 years B. 20 hours every 4 years C. 45 hours every 4 years D. None above
C
Any person who is actively involved in real estate transaction at the service of another, in the expectation of receiving a commission, must be: A. Licensed B. Bonded C. A citizen D. All above
A
At what age does the average person start buying a retirement home? A. 26 B. 31 C. 42 D. 65
D
If there is a contradiction in the purchase agreement form:
A. The form is considered void
B. The handwritten or typed-in words supersede the printed words
C. The printed words supersede the written or typed-in words
D. None above
B
If there is a contradiction in the purchase agreement form:
A. The handwritten or typed-in words supersede the printed words
B. The printed words supersede the written or typed-in words
C. The form is considered void
D. The real estate commissioner must decide which takes precedence
D
Which of the following IS NOT TRUE concerning listings in California?
A. Listing agreements must be in writing
B. A listing is considered an employment contract between principal and agent/broker
C. Listing agreements are also referred to as purchase contracts
D. A listing agent is bound by the laws of agency
C
Which of the following property is tax exempt in California?
A. National state parks
B. Property owned by non-profit organizations
C. Residential property
D. Both a and b are correct
D
The housing financial discrimination act of 1977 prohibits: A. Redlining B. Steering C. Blockbusting D. None above
A
What percentage of prospective homebuyers use the internet to search for a home before contacting an agent? A. 90% B. 70% C. 50% D. 30%
A
What entity requires that you include your salesperson or broker’s license number on all your real estate websites? A. Google B. Yahoo C. CalBRE D. Go daddy
C
Which social media site only allows the use of 140 or less characters? A. LinkedIn B. Facebook C. Twitter D. Texting
C
An ad valorem tax is a tax that is charged:
A. In proportion to the value of the property
B. To foreign investors only
C. Both a and b
D. Neither a nor b
A
Which of the following is the best way to keep track of the ads that bring in phone inquiries? A. Ad call log book B. Company phone bill C. Reverse directory D. Phone answering machine
A
The compensation for processing the loan and setting it up on the books, which is based on the loan amount, is: A. Interest B. A loan origination fee C. The prevailing market rate D. Start up fee
B
In a trust deed, the party who is lending the money is called the: A. Trustor B. Trustee C. Beneficiary D. None above
C
Which of the following refers to a business that has an actual physical presence? A. Online B. Virtual C. Brick and mortar D. Cloud
C
Under a “covenant not to compete”, a seller usually agrees not to open a competing business: A. For a period of time B. Within a specified geographical area C. Both a and b D. Neither a and b
C
The verification of property condition form is filled out
A. When the buyer first visits the property
B. During the final walk-through
C. By pest inspectors
D. All above
B
Which of the following forms details the total cost of the purchase, including monthly payments? A. Buyer’s inspection advisory B. Estimated buyer’s costs C. Notice to seller to perform D. None above
B
All the documents a brokerage generates for a single completed transaction are kept in: A. The broker’s PDA B. A master transaction file C. The assistant’s home D. None above
B
A publication or website that lists telephone numbers by addresses rather than names is called a: A. Cold call directory B. Multiple listing directory C. Reverse directory D. None above
C
A salesperson who is actively engaged in professional real estate activities must be employed by:
A. The state of California
B. A licensed real estate broker
C. Another real estate licensee with at least 5 years experience
D. None above
B
In California, who customarily conducts the title search, prepares preliminary reports, and issues policies of title insurance? A. Title insurance company B. Escrow company C. Real estate agent D. None above
A
The basic types of income producing properties include: A. Office buildings B. Retail property C. Industrial property D. All above
D
Lenders who charge an additional processing fee to non-English speaking applicants because of the cost of hiring bilingual employees:
A. Are exempt from discrimination charges
B. Are guilty of practicing discrimination
C. Are just practicing good business techniques
D. None above
B
In a purchase contract, which of the following are NOT usually considered a financing contingency? A. Obtaining the deposit B. Obtaining the down payment C. Obtaining closing costs D. All above
D
Real estate assistants who choose to become notary publics must:
A. Also have a broker’s license
B. Maintain an official record called a notary journal
C. Use an official seal of notary
D. Both b and c
D
The most updated real estate information online can be found on: A. Realtor.com B. Zillow.com C. Trulia.com D. Craigslist.com
A
In a listing agreement, which instructions are given the most consideration (take precedence)? A. Handwritten instructions B. Preprinted instructions C. Oral instructions D. None above
A
Which of the following listing forms does the seller receive a copy of? A. Residential listing agreement B. Seller’s advisory C. Estimated seller’s proceeds D. All above
D
The terms mortgagee and mortgagor refer to: A. Mortgages only B. Trust deeds only C. Mortgages and trust deeds only D. None above
A
The collection of seller information from several MLSs to post on to one site for easier comparison is known as: A. MLS surfing B. MLS aggregation C. MLS poaching D. MLS segregation
B
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 and present offers on a property. This is called a(n): A. Free-for-all B. Open listing C. Office exclusive D. None above
C
The rollback of California property tax to 1% of the selling price, plus 2% cumulative interest every year thereafter, was mandated by: A. Prop 11 B. Prop 13 C. Prop 58 D. All above
B
Errors and Omissions insurance is meant to protect whom from liability? A. Brokers B. Agents C. Both a and b D. Neither a nor b
C
The purpose of a lockbox is to:
A. Store keys to the property for agent access
B. Store sensitive documents in broker’s office
C. Protect “for sale” signs from being tampered with
D. None above
A
Which of the following is known for using automated valuation systems (AVMs)? A. Zillow.com B. CAR.org C. Facebook.com D. Realtor.com
A
Which of the following is NOT one of the three requirements for a valid escrow?
A. Signed escrow instructions
B. Legal advice
C. Neutral third party as an escrow company
D. Conditional delivery of funds and documents
B
An “encumbrancer” has an interest in a property by value of having:
A. Placed a lien on a property
B. Acquired an easement against the property
C. Imposed restrictions against the property
D. All above
D
FSBO refers to which of the following A. Financing secured by owner B. Financing subject to buyer’s ok C. Fire sale by owner D. For sale by owner
D
The real estate commissioner is: A. Elected by the voters B. Appointed by the governor C. Appointed by the state attorney general D. None above
B
In California, a real estate assistant:
A. Is not required to be licensed
B. Is required to have a salesperson’s license
C. Is required to have a broker’s license
D. Must be bonded and fingerprinted
A
The improvement bond act of 1915:
A. Is a special assessment tax
B. Finances street and highway improvements
C. Is based on the frontage of property facing the improved street
D. All above
D
