Real Estate Principles: Q1/Chp 1-3

Question 1

1) The California legislature created the ________ to oversee, regulate, administer and enforce the real estate law.
A) Department of Home Finance
B) California Bureau of Veterans
C) Department of Real Estate (DRE)
D) Department of Agriculture and Property

Answer 1

C) Department of Real Estate DRE

Question 2

2) The chief officer of the Department of Real Estate (DRE) is the:
A) Real Estate Commissioner
B) President of the United States
C) Governor of California
D) Real Estate Solicitor

Answer 2

A) Real Estate Commissioner

Question 3

3) To be eligible for a broker or agent license, the applicant needs to be honest and truthful, complete mandatory education and:
A) provide proof of legal presence in the US
B) be at least 21 years of age
C) have previously worked as an unlicensed assistant
D) pass the qualifying exam

Answer 3

D) pass the qualifying exam

Question 4

4) All real estate brokers and agents need to complete at least \_\_\_\_\_\_ of continuing education (CE) every four years to renew a license issued by the department of real estate (DRE)
A) 15 hours 
B) 30 hours 
C) 45 hours
D) 50 hours

Answer 4

C) 45 hours

Question 5

5) The \_\_\_\_\_\_ is available to individuals who have obtained a judgment against a licensee and are unable to recover the judgment from the licensee for losses caused while acting as an agent.
A) Real Estate Recovery Fund
B) Broker Protection Fund
C) Homeowner Relief Fund
D) Borrower Education Fund

Answer 5

A) Real Estate Recovery Fund

Question 6

6) A residential mortgage primarily for personal, family or household use and secured by a deed of trust on a dwelling is known as a:
A) consumer purpose mortgage.
B) public project loan.
C) adjustable rate mortgage (ARM).
D) Zero A to Pay (ZAP) loan

Answer 6

A) consumer purpose mortgage.

Question 7

7) Agency in real estate related transactions includes relationships between brokers and their:
A) principals.
B) agents.
C) both A and B
D) A real estate broker is never an agent.

Answer 7

C) both A and B

Question 8

8) A broker’s representation of a client, such as a buyer or seller, is best undertaken:
A) with an oral agreement only.
B) through coercion.
C) on a written employment agreement signed by both the client and the broker.
D) through ratification after acts requiring a license have been performed.

Answer 8

C) on a written employment agreement signed by both the client and the broker.

Question 9

9) The Agency Law Disclosure needs to be attached to which of the following documents and signed by all parties in targeted transactions?
A) A purchase agreement.
B) A seller’s listing agreement.
C) A lease agreement for a term exceeding one year.
D) All of the above.

Answer 9

D) All of the above.

Question 10

10) Failure of the seller’s agent to provide the seller with the Agency Law Disclosure prior to entering into the listing agreement may result in:
A) payment of a $1000 fine.
B) the loss of their fee.
C) jail time.
D) the forfeiture of all funds in their trust account.

Answer 10

B) the loss of their fee.