Real Estate Principles: Q2/Chp 4-7

Question 1

1) A(n) \_\_\_\_\_\_ arises when a broker or their agent, acting on behalf of a client, has a competing professional or personal bias which hinders their ability to fulfill the fiduciary duties they have undertaken on behalf of their client.
A) affiliated business arrangement (ABA)
B) subagency
C) conflict of interest
D) implied agency

Answer 1

C) conflict of interest

Question 2

2) A(n) \_\_\_\_\_\_\_\_ is a broker who simultaneously represents the best interest of opposing parties in a transaction, e.g., both the buyer and the seller.
A) dual agent
B) secret agent
C) subagent
D) finder

Answer 2

A) dual agent

Question 3

3) When a dual agency is established and a 1-to-4 unit residential sales transaction, the broker may not:
A) pass on confidential pricing information to the opposing parties.
B) communicate to one of the parties without the express consent of the other.
C) collect their fee when the sale closes.
D) disclose material facts about the property which might dissuade the buyer from submitting an offer to purchase the property.

Answer 3

A) pass on confidential pricing information to the opposing parties.

Question 4

4) Funds belonging to others which a broker and their agents handle when acting in a transaction are called:
A) broker fees.
B) trust funds.
C) bonds.
D) security deposits.

Answer 4

B) trust funds.

Question 5

5) A broker is required to regularly account to an owner on the status, expenditure and location of negotiable trust funds, called a(n):
A) balance sheet.
B) deposit receipt.
C) owner's statement.
D) amortization schedule.

Answer 5

C) owner’s statement.

Question 6

6) Regardless of race, all citizens of the United States have the right to rent residential and commercial real estate under the federal:
A) Civil Rights Act.
B) Freedom of Information Act.
C) Uruh Civil Rights Act.
D) Proposition 13.

Answer 6

A) Civil Rights Act.

Question 7

7) \_\_\_\_\_\_\_ involves the restriction of a person seeking to buy or rent a dwelling in a community in a manner that perpetuates segregated housing patterns.
A) Blockbusting
B) Redeveloping
C) Redlining
D) Steering

Answer 7

D) Steering

Question 8

8) A residential landlord may not induce or attempt to induce an individual to offer, or abstain from offering, a dwelling to prevent the entry of certain classes of people into the neighborhood, known as:
A) blockbusting.
B) condemnation.
C) redlining.
D) dual agency.

Answer 8

A) blockbusting.

Question 9

9) A(n) \_\_\_\_\_\_\_ is housing intended for and solely occupied by persons 62 years of age or older, or intended and operated for occupancy by persons of 55 years of age or older.
A) senior citizen housing project
B) section 8 housing project
C) common interest development (CID)
D) cooperative housing project

Answer 9

A) senior citizen housing project

Question 10

10) California's Unruh Civil Rights Act specifically prohibits discrimination on behalf of:
A) educational institutions.
B) government institutions.
C) individuals.
D) businesses.

Answer 10

D) businesses.