45-HR. CA REAL ESTATE PRACTICE COURSE » Summer 2021 » Section 12 Unit 2 Exam

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Question #1
Your seller, Steven, has agreed to make certain repairs. Besides performing the repairs, what else must he do?
A.   Provide a warranty for the repairs completed
B.   Use a contractor specified by the buyer
C.   Post a bond for $1,000 with escrow to cover any defective workmanship
D.   Provide the buyer with copies of invoices and receipts
Question #2
In the purchase agreement, a party who has legal power of attorney to sign on behalf of another entity is referred to as a __________________.
A.   Buyer's agent
B.   Representative agent
C.   Broker
D.   Representative party
Question #3
The _____________ section of the purchase agreement is not for the buyer to fill out. It is where the seller indicates whether the offer is accepted or countered.
A.   Acceptance of Offer
B.   Expiration of Offer
C.   Terms and Conditions
D.   Accepted or Countered
Question #4
If Barney were awarded $6,000 as the maximum amount of liquidated damages allowed on a residential property after the buyer breached the contract, what was the purchase price?
A.   $400,000
B.   $50,000
C.   $600,000
D.   $200,000
Question #5
Which of the following statements is true about the amount of liquidated damages a seller may collect?
A.   It may not exceed 3% of the sales price unless the property is valued at or above $1 million.
B.   It maxes out at 3% of sales price, but may not exceed the earnest money deposited.
C.   It is capped at 3% of earnest money.
D.   It equals 3% of the sales price plus the earnest money.
Question #6
According to the scope of duty section in the sample purchase agreement you reviewed, it is outside the broker’s scope of duty to _____________________.
A.   Provide a price opinion on a property
B.   Compare market values
C.   Decide what price to offer
D.   Consult on the price to offer
Question #7
Which of these statements accurately describes the standard terms for proration of property taxes and other items found in the sample purchase agreement you reviewed?
A.   Payments on Mello-Roos are the only property tax item that is exempt from proration.
B.   Supplemental tax bills received by the buyer after transfer of title and possession shall be billed directly to the seller.
C.   Property taxes and other items are prorated up until closing, and the buyer is responsible for the prorated costs that remain.
D.   The seller is obligated to prepay all property taxes in full prior to close of escrow.
Question #8
Jake was afraid there would be competing offers, so he put a very short turn-around time on the expiration of his offer. What will happen if his deadline to respond passes?
A.   The offer will be null and void.
B.   As long as the seller accepts within 48 hours after the deadline and Jake acknowledges the acceptance, the offer can be kept alive.
C.   As long as the seller accepts, it doesn't matter when the acceptance occurs, provided Jake acknowledges the acceptance.
D.   The seller will have to fill out an "additional signature addendum" if accepting past the deadline.

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