45-HR. CA REAL ESTATE PRACTICE COURSE » Summer 2021 » Practice Exam Sales License (2)
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Question #1
Which of the following duties are owed to customers and other parties to a real estate transaction?
A.
Honesty and fairness
B.
Obedience and loyalty
C.
Fairness and loyalty
D.
Honesty and obedience
Question #2
What does MLS stand for?
A.
Maximum listing service
B.
Market listing service
C.
Membership listing service
D.
Multiple listing service
Question #3
In the listing agreement, how is the responsibility for marketing and showing the property described?
A.
The responsibility lies solely with the listing agent and brokerage.
B.
The listing agreement does not account for responsibility in this area.
C.
The seller is solely responsible.
D.
Both seller and broker are responsible.
Question #4
When are the mortgage loan commitment and title insurance contract signed?
A.
The day prior to closing
B.
The day after closing on the property to ensure proper transfer of title
C.
Weeks prior to closing
D.
At the closing
Question #5
The Kentucky Real Estate Commission’s action of prohibiting brokers from offering rebates and other inducements to consumers was deemed to be this type of violation, in which guilt is established in light of existing circumstances.
A.
Rule of reason
B.
Tying
C.
Fair housing
D.
Per se
Question #6
It’s January, and the pool at Roger’s listing has been prepped for winter for several weeks. The homeowner assures Roger that it’s in good working order. Roger has no reason to disbelieve the homeowner, so he tells prospective buyers that the pool is fine. The property sells, spring comes, and the new owners call to complain that the pump doesn’t work, and the pool drain appears to be clogged. What did Roger commit?
A.
Unintentional misrepresentation
B.
Negligent misrepresentation
C.
Puffery
D.
Fraud
Question #7
Which of these is NOT an example of agency coupled with interest?
A.
Jeanine agrees to charge no commission from her buyer's purchase of a four-plex if the buyer agrees to pay Jeanine a 3% fee for each unit for which she finds a tenant after the sale.
B.
Gene, a real estate professional, is purchasing a home for his personal use. He negotiates a reduction in the sales price in return for taking no commission from the seller.
C.
Rhoda loans Carl the money to catch up his mortgage payments in return for a listing agreement to sell Carl's home for a 4% commission.
D.
Carma agrees to list Tera's property for free if Tera signs an agreement to purchase her new home through Carma.
Question #8
If an agent lists a home for his sister and it sells, can the agent accept his commission directly from his sister?
A.
No, agents cannot accept commissions from immediate family.
B.
No, the commission must go through the agent's broker.
C.
Yes, because she's a close relative.
D.
No, the commission must go through the escrow company first.
Question #9
Where trust funds are involved, ___________ is required.
A.
Earned interest
B.
Commingling
C.
Documentation
D.
Conversion
Question #10
Shakira is attending an association meeting when, in a small group breakout, her group begins discussing how to deal with the new kid in town: a real estate firm that charges a flat $500 to list properties, then lets the sellers fend for themselves. Why should Shakira leave the discussion?
A.
This conversation sounds like it might become an antitrust violation
B.
She needs to get to work developing this model for herself
C.
The group seems bent on creating a tie-in arrangement
D.
This conversation seems to be turning into a discussion of market allocation
Question #11
The Residential Earthquake Hazards Report must be provided to prospective buyers in residential transactions involving homes built before __________.
A.
1960
B.
1978
C.
1945
D.
1900
Question #12
Each year, investors are permitted to ______ a specific amount for tax purposes.
A.
Depreciate
B.
Deduct
C.
Add
D.
Subtract
Question #13
The risk that the required return on investor capital will not be met is called ______ risk.
A.
Business
B.
Capital
C.
Financial
D.
Leverage
Question #14
What does RESPA stand for?
A.
Real Estate Seller Prohibition Act
B.
Real Estate Standard Protection Act
C.
Real Estate Society Protection Act
D.
Real Estate Settlement Procedures Act
Question #15
Which of the following statements could indicate a price fixing violation?
A.
"My listing agreements are generally 90-day contracts."
B.
"My contract length is non-negotiable."
C.
"With today's market conditions, we could expect the house to take two months to sell. Let's set a term of four months for our listing contract."
D.
"The MLS requires us to have at least 90-day listings."
Question #16
Moneys given for purchase deposits are ______.
A.
Commission
B.
Non-trust funds
C.
Revenue
D.
Trust funds
Question #17
Maurice is meeting with a buyer who is also selling his current home. Which question should Maurice ask to pre-qualify the buyer?
A.
What is your income?
B.
Have you ever been convicted of any felonies?
C.
Are you currently working with any other agents?
D.
What is your tax bracket?
Question #18
You’ve listed a 1918 Craftsman with some significant foundation issues—so significant that the buyers walked away after the inspection. They provided you and your sellers with a copy of the inspection report, which also points out some wiring concerns. At today’s open house, a prospective buyer asks to see a copy of any inspections done on the property. What should your response be?
A.
You should disclose any adverse material facts, but you don't have to provide the report.
B.
You should provide an inspection report to all prospects, along with seller disclosures.
C.
You should ask the buyers who walked away whether you can provide a copy.
D.
You should provide an inspection report, but only if specifically asked.
Question #19
Should the broker end up in litigation, any trust funds not safely tucked away in a trust account could be ______.
A.
Disbursed
B.
Eliminated
C.
Reallocated
D.
Frozen
Question #20
The funds placed in trust accounts are insured by the ______.
A.
FDIC
B.
NAIC
C.
WNBA
D.
AARP
Question #21
Jack is a licensee employed by Steve, a real estate broker. Jack just heard that the brokerage is representing a well-known professional athlete looking for a new property. He tells a couple of his friends, who happen to be avid fans. Which duty did Jack break?
A.
Disclosure
B.
Confidentiality
C.
Reasonable skill and care
D.
Accounting
Question #22
Yolanda purchased a house from the Griffins 10 months ago. Shortly after she moved in, the city began work on building a middle school on the empty lot right across the street. She feels that the city’s plans must have been known to the Griffins and should have been disclosed, and she really doesn’t want to live across the street from a school. Is it too late for her to take legal action against the Griffins?
A.
Yes, the buyer can only take legal action within six months of taking possession of the property.
B.
No, Yolanda can take legal action against the buyers at any time while she still owns the property.
C.
No, Yolanda can take legal action at any time within two years after taking possession of the property.
D.
Yes, Yolanda should have canceled the contract within three days of receiving seller disclosures.
Question #23
Why should you ask potential buyer clients if they need to sell their home before purchasing a new one?
A.
You won't need to check their credit if they've qualified for a home in the past.
B.
Selling their home before purchasing a new one is more work for you and might not be worth your time.
C.
If they don't, they're probably wasting your time.
D.
Their current home might be a potential listing for you.
Question #24
If two parties enter into a contractual agreement with each other to perform an illegal act, which of the following statements is true of the contract?
A.
It is voidable, because the consideration, as a percentage rather than a dollar amount, is not clearly stated.
B.
It is voidable, because Jesse is not mentally competent to sign a contract.
C.
It is voidable, because Jesse probably signed it under duress.
D.
It is void because it is not for a lawful purpose.
Question #25
The list price is the price for which the ________ has agreed to sell a property.
A.
Broker
B.
Buyer
C.
Owner
D.
Property manager
Question #26
On the closing statement, what's the term for an amount that shows up in the party’s favor?
A.
Credit
B.
Balance
C.
Debit
D.
Mortgage
Question #27
John and Amy purchased a builder's home warranty when they bought their home. They have found structural damage that could be a detriment to their home. On average, how many years does a home warranty cover structural damage?
A.
Five years
B.
10 years
C.
One year
D.
Three years
Question #28
Which of the following strategies would help to make a "Choose Your Neighbor" marketing letter non-discriminatory in its effect?
A.
Listing the property on the MLS
B.
Ensuring that the letter was given to neighbors on both sides of the street
C.
Providing the letter in multiple languages for non-English speakers
D.
Giving the letter to at least 20 neighbors
Question #29
What does "cash-on-cash return" mean?
A.
Making money hand over fist
B.
A comparison of before-tax cash flow to cash invested
C.
Trading international currency
D.
Net income after taxes are deducted
Question #30
Among other things, what should a listing in the MLS always include?
A.
The seller's contact information
B.
The seller's bottom-line sales price
C.
At least one photo
D.
A relatively vague description, so people want to come and see the details
Question #31
What type of buyer tends to know little about the home buying process, has limited funds, and may be borrowing down payment money from relatives?
A.
First-time buyer
B.
Trade-up buyer
C.
Retiree
D.
Trade-down buyer
Question #32
Accident liability, fire, theft, and vandalism are types of _______ risk.
A.
Environmental
B.
Static
C.
Capital
D.
Dynamic
Question #33
The 1950 case involving the District of Columbia’s Washington Board of Realtors and the National Association of REALTORS® determined that real estate boards that set schedules of fixed or mandatory real estate commissions or fees violated this law.
A.
Fair housing laws
B.
The Federal Trade Commission Act
C.
The Sherman Antitrust Act
D.
Licensing laws
Question #34
Whoa—this market is hot, hot, HOT! You’ve had five offers come in since you listed your seller client’s home yesterday. Of the options listed, which is the best strategy?
A.
Leave it on the market for another three days to allow time for even more offers to come in.
B.
Accept a middle-of-the-road offer, but on the condition that no home inspection repairs will be performed.
C.
Reject the offers and put the home back on the market for the amount of the highest offer.
D.
Have all buyers submit their "highest and best" offer, then help the seller decide which offer is most appealing.
Question #35
Susan has been pre-approved for her new home loan, and the closing process is well underway. She’s so excited that she tells you she’s going to use her credit card to purchase a complete set of living room and dining room furniture. What should you tell her?
A.
She should wait until after she closes on the home and then use a home equity line of credit to make her furniture purchases.
B.
She should use money from her savings account to make the purchase instead of using her credit card.
C.
She should use store credit instead of her credit card to purchase the furniture since the interest rate is probably lower.
D.
It's important to avoid spending money on non-essentials or adding to her debt load prior to closing on the loan.
Question #36
One of the best ways to select a brokerage and managing broker with whom to work would be to ________.
A.
Request an income guarantee
B.
Interview several managing brokers
C.
Interview other new licensees
D.
Call the Better Business Bureau
Question #37
A.
"Your title will reveal any tax liens, so the title company will review it to ensure that isn't an encumbrance."
B.
"If you make a profit on the sale of this property, you'll have to pay a capital gains tax when you file your income taxes."
C.
"Property taxes are prorated so you'll only pay for the time you owned the property."
D.
"When you're buying your next home, the transfer will trigger a reassessment for property tax purposes."
Question #38
Which of these is a recommended place for a real estate professional to search for properties when working with an investor client?
A.
Door-to-door in low-income neighborhoods
B.
Home decorator conventions
C.
"Subject to court approval" listings in the MLS
D.
Handyman companies
Question #39
A parking lot has 550 total spaces. How many of these spaces must be accessible?
A.
20
B.
11
C.
Nine
D.
10
Question #40
Leslie is a listing agent for a well-maintained two-story home that her client, Jerry, is selling. She has performed her visual inspection of the property, noted a few small issues, and made sure that Jerry understands his obligations for disclosure. What else does Leslie need to do to complete her responsibilities for disclosure?
A.
Use the proper disclosure forms
B.
Ask Jerry to repair the issues that she found
C.
Show the issues that she noted to a home inspector, if the buyer uses one
D.
Ask Jerry to verbally disclose material defects to potential buyers
Question #41
San Diego homeowner Carl hasn’t paid his property taxes for three years in a row. The county has a tax lien attached to his property. Can the county foreclose on Carl?
A.
Yes, they can foreclose immediately.
B.
No, a property tax lien doesn't give the lien holder the power of sale.
C.
No, California law prohibits foreclosure for a tax lien.
D.
Yes, but only if his taxes remain unpaid for five years.
Question #42
Why would a licensee working with an investor want to foster a relationship with a title company?
A.
To get leads on available properties
B.
To get the client better deals on title insurance
C.
To get the client better deals on settlement costs
D.
To get referrals to other investors
Question #43
When modifying commercial buildings to meet accessibility requirements, owners should focus their attention on these four areas: accessible approach and entrance, access to goods and services, ______, and any other necessary measures, such as access to public amenities.
A.
Carpeted halls and stairways
B.
Sufficient cooling and heating
C.
Improved acoustics
D.
Access to restrooms
Question #44
In California, a brokerage’s listing agreements, deposit receipts, canceled checks, and trust records are all ______.
A.
Records that must be provided to clients upon request
B.
Documents that must be submitted to the DRE
C.
Documents that must be stored electronically
D.
Records that must be held for at least three years
Question #45
California licensee Renee makes sure she follows the DRE requirements when she prepares listing agreements and purchase agreements by ______.
A.
Maintaining the documents in the brokerage files for at least five years from the closing date
B.
Giving a copy of the agreement to her client after it's signed
C.
Sending a copy of the agreement to DRE
D.
Destroying all documents carrying a client signature in a manner approved by DRE
Question #46
De-personalizing a home allows buyers to _______.
A.
Identify furniture they want to purchase from the sellers
B.
Imagine themselves in the home
C.
Move in more quickly
D.
Spot the high-value items
Question #47
What's the name of the tax program that requires a withholding of a portion of the gross purchase price when foreign owners of real estate in the U.S. sell that property?
A.
Foreign Investor Real Estate Investment Tax (FIRE-IT)
B.
Foreign Investment in Real Estate Property Tax Act (FIRPTA)
C.
Foreign Real Estate Tax Withholding Act (FRETWA)
D.
Tax Withholding for Foreign Holding Act (TWFHA)
Question #48
You're the listing agent on a property, and you have a potential buyer who can’t see the property until next week. A buyer’s agent shows the property to another prospective buyer, who makes an offer. Which action best demonstrates good faith to your seller client?
A.
Present the offer to the seller and tell him you have another potential buyer who wants to see the property next week.
B.
Hold on to the offer until after your buyer sees the property.
C.
Tell the buyer's agent that the sellers aren't reviewing offers until next week.
D.
Present the offer to the seller right away and don't mention the other potential buyer.
Question #49
Why are most new real estate licensees hesitant to market to their friends and family?
A.
They are afraid they'll be asked to reduce their commissions.
B.
Their brokers don't want them marketing to that audience.
C.
They want wealthier clients than their friends and family.
D.
They don't want to seem pushy.
Question #50
If a buyer must deliver notice to the seller no earlier than two days prior to Monday, August 5, when may the notice be delivered?
A.
Thursday, August 1
B.
Saturday, August 3
C.
Wednesday, July 31
D.
Friday, August 2
Question #51
Tyrell and Barb bought a commercial investment property in 2009 during the real estate market downturn. Through what year will they be able to depreciate the investment?
A.
2048
B.
2039
C.
2029
D.
2019
Question #52
You’re working with a new buyer, Caleb, who is nervous about the earnest money you’ve placed in escrow on his behalf. What can you tell Caleb to reassure him?
A.
Escrow can't disburse the money without your signature
B.
Escrow is FDIC insured.
C.
Escrow is bonded
D.
My company will cover any losses
Question #53
In what type of market are buyers typically in a power position?
A.
Dynamic
B.
Static
C.
Cold
D.
Hot
Question #54
Income that a property could bring in if it were leased at full capacity is ______.
A.
Potential gross income
B.
Net operating income
C.
An operating statement
D.
Effective gross income
Question #55
Monica is acting as a listing agent for her friend, Brian. She and Brian met when they both began attending a support group for those living with HIV. Which of the following best represents an action Monica should take?
A.
Monica should not be the listing agent for her friend.
B.
Monica cannot tell others about Brian's HIV status.
C.
Monica should tell all prospective buyers that the seller has HIV.
D.
Monica should purchase Brian's property.
Question #56
Calli is a new licensee. If she wants to succeed in real estate, she should ______.
A.
Work a regular work week (Monday through Friday, 9 a.m. to 5 p.m.).
B.
Try to be all things to all people.
C.
Seek out a broker who does a lot of business.
D.
Work hard and stick with it.
Question #57
Laura, a new licensee, just started working for broker Bill. Which of the following is a true statement?
A.
Laura likely won't get a salary for six weeks.
B.
Laura will be put on a three-month probation.
C.
Laura must stay with Bill for at least two years before she transfers brokerages.
D.
Laura may leave the brokerage and join another at any time.
Question #58
Which of the following is an example of discrimination under the Fair Employment and Housing Act (FEHA)?
A.
An owner refuses to sell a house to a same-sex couple that offered less than the asking price.
B.
A landlord refuses to rent to a tenant who has poor credit and unstable employment history.
C.
A landlord refuses to rent to a couple that have been on the waiting list for four months, because when they were called and given notice of their approval, the tenants refused to pay the security deposit.
D.
An owner refuses to sell a house to an unmarried couple on the basis of his religious beliefs that having a sexual relationship outside of marriage is sinful.
Question #59
If you're staying at a motel, what's one advantage you have over your friend, who's staying at a hotel?
A.
Closer to parking
B.
Nothing
C.
More amenities
D.
Rooms open to interior of the building
Question #60
What should an agent do if a seller client requests an office exclusive?
A.
Negotiate a higher commission, as there is a greater burden on the agent to find a buyer
B.
Advertise the listing on the MLS
C.
Fully inform the seller about the dangers of reduced market exposure
D.
Prepare advertising for social media and local newspapers
Question #61
Which of these standard forms is used to document an agreement between a seller and a listing broker to cease marketing a property?
A.
Cancellation of Listing
B.
Termination of Buyer Agency
C.
Seller Instruction to Exclude from the MLS
D.
Modification of Terms
Question #62
The risk that an investor cannot secure financing at an affordable rate is called ______ risk.
A.
Business
B.
Financial
C.
Capital
D.
Leverage
Question #63
Sue believes she's about to get into an undisclosed dual agency position. What should she do?
A.
Say nothing
B.
Terminate her agency relationship
C.
Inform all parties to the transaction
D.
Inform the seller
Question #64
Your broker has received an earnest money check from you for a transaction. Where should this check be deposited?
A.
In the firm's general business account, with a ledger entry for the client's name, labeled "trust fund"
B.
In a trust fund account or neutral escrow
C.
In an interest-bearing account
D.
In the firm's safe or safety deposit box until closing
Question #65
What does the quick and dirty 70% formula mean to investors?
A.
That 70% of their income will go toward expenses
B.
That 70% of renters will leave in the first two years
C.
They must receive 70% return on their investment
D.
The purchase price shouldn't be more than 70% of the repaired value
Question #66
Licensee Janice has found a way to work with prospective buyers without ever leaving her desk: She sets them up with automated email messages for listings that meet their criteria, and answers any questions they have when they call. Is Janice doing anything wrong?
A.
No, this is how all agents work.
B.
Yes, because this constitutes the illegal practice of real estate.
C.
Yes, because she should meet them in person before working for them.
D.
No, this is how agents work with buyers.
Question #67
How many days are sellers required to give buyers to conduct a risk assessment for lead-based paint or lead-based paint hazards?
A.
21
B.
Three
C.
10
D.
30
Question #68
In the sample purchase agreement you reviewed, where is allocation of transfer fees communicated?
A.
Other Costs
B.
Inspections, Reports, and Certificates
C.
Escrow and Title
D.
Government Requirements and Retrofit
Question #69
Which entity carries out audits and examinations?
A.
The Federal Bureau of Investigation
B.
The Central Intelligence Agency
C.
The California Department of Real Estate Commissioner
D.
The Internal Revenue Service
Question #70
Michael, an agent, is representing Felicity, a seller. Felicity tells Michael that she does not want to sell to anyone who is Hispanic. Which of the following describes Michael's responsibilities?
A.
Michael may inform Felicity of fair housing laws.
B.
Michael is allowed to prepare an advertisement which states, "Home for sale, $140,000. No Hispanics."
C.
Michael is allowed to tell any prospective buyers and their agents that Felicity will not sell to Hispanics.
D.
Michael may follow Felicity's instructions and show the house to anyone except Hispanics.
Question #71
According to the property condition section of the sample purchase agreement provided, the property is being sold _________, or in its current condition, unless the parties agree otherwise in writing.
A.
With material defects
B.
Under warranty
C.
As-is
D.
By default
Question #72
When considering the rentable square footage of a building, what's known as the "loss factor"?
A.
The difference between usable square footage and rentable square footage
B.
Stairwells and lobbies
C.
Vacant units
D.
Bathrooms and hallways
Question #73
The seller disclosure indicates that the central air conditioning unit is 26 years old. Why might this worry Margot’s buyers?
A.
The unit may need to be replaced.
B.
Older units are bigger and more unsightly.
C.
Central air conditioning isn't a sustainable technology.
D.
They were hoping for window air conditioning.
Question #74
Will is looking at two brokerage offices. The commute to one is 45 minutes, and it’s in a neighborhood he intends to farm. The other brokerage is within walking distance of his house. Which office is best for Will’s business?
A.
The closer one, because gas is expensive.
B.
The commuting one, because he will spend most of his time in the field.
C.
The closer one, because he can meet clients at the office easier.
D.
The commuting one, because most business is conducted in the car.
Question #75
One advantage residential properties have for investors over commercial properties is that residential properties _______.
A.
Require a larger down payment, so there is less to finance
B.
Are relatively liquid
C.
Are larger properties
D.
Are relatively rare, so tenants compete for available units
Question #76
The owner of an apartment building with four units charges $1,000/month for each unit. What is the gross potential rental income for one year?
A.
$3,000
B.
$48,000
C.
$36,000
D.
$24,000
Question #77
What types of laws does the civil code contain?
A.
It does not contain laws
B.
Laws related to theft and other crimes
C.
Laws related to the sale of securities
D.
Laws related to real property contracts, such as contract of sale or land installment contracts
Question #78
What happens when an appraisal comes in lower than the agreed-upon sales price?
A.
The buyer will be forced to terminate the contract immediately.
B.
The seller must reduce the price to the appraised value.
C.
A new appraisal will always be ordered.
D.
The parties may choose to negotiate the difference.
Question #79
Which of the following actions is against the NAR Code of Ethics?
A.
Preparing a written agreement that falsely states a purchase price
B.
Preparing a written agreement that accurately states a purchase price
C.
Making a reasonable effort to ensure all parties to a written agreement have a copy of the agreement
D.
Including the brokerage name and main phone number, in addition to a licensee's own name and phone number on an advertisement
Question #80
You’re a California broker. That means you must reconcile your trust fund accounts ____________.
A.
Quarterly
B.
Monthly
C.
Yearly
D.
Weekly
Question #81
Why are residential properties popular with investors?
A.
They require no down payment.
B.
They need somewhere to live.
C.
They're always in demand.
D.
Because they're rare, and therefore valuable.
Question #82
Ray purchased a new home and soon discovered an issue with one of the windows. He filed a claim with the warranty provider, but it was denied. After mediation, the issue still remains unresolved. What is the most common next step?
A.
Arbitration
B.
Litigation
C.
A second round of mediation
D.
Condemnation
Question #83
Which one of the following is a description of economic depreciation?
A.
The asset is worth more because of capital improvements.
B.
The owner/investor is making less income from the property than previously.
C.
The asset is worth less because the economy took a downturn.
D.
Investors can take a business deduction for annual depreciation.
Question #84
Why might a buyer get a great deal on a real estate owned property?
A.
Lenders and their shareholders don't like to keep properties on their books longer than necessary.
B.
There are special government financing programs for purchasing REOs.
C.
Federal regulations require that REOs be sold below market value.
D.
There are no agent commissions to pay for REO transactions.
Question #85
In which commercial category are raw materials converted into useful objects?
A.
Leisure
B.
Manufacturing
C.
Retail
D.
Healthcare
Question #86
Which of these is a likely reason for a listing agent to use a Modification of Terms form?
A.
The seller wishes to lower the list price to encourage more offers.
B.
A buyer has made an offer below list price and the seller is willing to take that offer.
C.
The seller wants to raise the list price after receiving no offers.
D.
The seller wants to move up the expiration date because the property sold right away.
Question #87
Which clause in the listing agreement gives the listing broker the authority and obligates the broker to market the property to other brokers?
A.
Marketing clause
B.
Multiple listing clause
C.
Provisionary clause
D.
Broadcast clause
Question #88
Aside from your name, what else must be included on every page of your website, according to the DRE’s rules?
A.
Personal photo
B.
City and state where the brokerage is located and jurisdiction
C.
Personal contact number
D.
License number and responsible broker's identity
Question #89
If a new licensee is worried about making commission soon, what is one strategy that could help?
A.
Send a mailer
B.
Buy display advertising
C.
Spend more than usual on marketing campaigns
D.
Join a team
Question #90
Which of the following is a good source for leads on discounted investment properties?
A.
Game wardens
B.
Divorce attorneys
C.
Criminal attorneys
D.
Home inspectors
Question #91
When working with a seller, you signed a listing agreement that ensured you'd receive a commission, provided the property sold during the listing term. What type of listing agreement did you sign?
A.
Net listing
B.
Exclusive right to collect commission
C.
Exclusive agency
D.
Exclusive right to sell
Question #92
What is an open listing agreement?
A.
One in which there's no end date
B.
One in which anyone can find the buyer, but the listing agent still gets paid
C.
One in which the price is negotiable within a specified range
D.
One in which only the person who finds the buyer gets paid
Question #93
Which of these sellers’ actions meets the standard terms for final verification of property condition and repairs found in the sample purchase agreement you reviewed? In other words, which seller is following the standard terms of the contract?
A.
The seller forgets to repair holes in the wall and places a plant in front of them before the buyer arrives for final verification of property.
B.
The seller hires a contractor to repair holes in the wall and informs the buyer that the contractor never provided a receipt.
C.
The seller hires a contractor to repair holes in the wall starting the day the buyer is scheduled to verify final condition.
D.
The seller repairs holes in the walls and documents that they were completed six days before close.
Question #94
With written permission, Robert, a licensee, represents two separate parties who each want to buy a new townhome. What do you know about Robert’s situation?
A.
Robert is breaching his fiduciary duty
B.
Robert is a dual agent
C.
Robert must also be an attorney
D.
Robert is in violation of agency law
Question #95
Dawn is a real estate licensee working with Midge, a buyer. If Dawn were trying to explain the advantages of a buyer representation to Midge, what could she say?
A.
"Without a written representation agreement, I don't represent you."
B.
"All buyers are required to sign buyer representation agreements."
C.
"You won't owe as much commission if we work under an agreement."
D.
"Buyer representation agreements don't obligate you in any way."
Question #96
Which party tends to benefit in a hot market?
A.
Buyer
B.
Seller
C.
Customer
D.
Client
Question #97
When a seller wants to expedite the closing process, what can a buyer offer to address this need?
A.
Waive appraisal
B.
An escalation clause
C.
Full price or over full price
D.
A quick closing
Question #98
Which of the following is true about interviewing at a brokerage?
A.
Most brokers prefer not to hire new licensees.
B.
Very few licensees are selected; it's highly competitive.
C.
Being a new licensee is a distinct advantage.
D.
You are interviewing the broker as much as the broker is interviewing you.
Question #99
What is capital risk?
A.
The risk that the property has a bad location
B.
The risk that is directly related to leverage
C.
The risk that an investor cannot secure financing at an affordable rate
D.
The risk that the required return on investor capital will not be met
Question #100
Marsha is a broker and uses columnar records for her trust accounts. She uses BRE form 4523 to keep track of each beneficiary or transaction. What other form is she required to use in conjunction with 4523?
A.
4524
B.
4525
C.
4522
D.
4523
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