CA SALESPERSON EXAM PREP EDGE » Summer 2021 » Practice of Real Estate and Disclosures Including Specialty Areas
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Question #1
Which of the following is a benefit of home ownership, according to research studies?
A.
Fully integrated neighborhoods
B.
Community stability
C.
Increased economic opportunity
D.
Greater amounts of open space
Question #2
The EPA-approved pamphlet, "Protect Your Family From Lead in Your Home," provides buyers and renters with ______.
A.
Information about the presence of lead in heating and cooling systems
B.
A list of health centers that can treat the effects of lead toxicity
C.
Information about identifying and controlling lead-based paint hazards
D.
A list of homes that have been confirmed as containing lead-based paint
Question #3
Which of the following is acceptable to include in an MLS listing?
A.
Children home alone from 2 to 4 p.m. No calls during that time.
B.
Valuable artwork located throughout.
C.
Owner works the night shift.
D.
House includes an alarm system.
Question #4
Amy owns a salon and spa. She’s leasing a prime piece of real estate in which she’s installing salon chairs, counters, massage tables, spray tan vestibules, washers, and dryers. What are these items considered?
A.
Real property
B.
Trade fixtures
C.
Extravagant
D.
Unnecessary
Question #5
Which entity provides oversight for real estate transactions and regulations, including recordkeeping?
A.
California Department of Real Estate
B.
Generally Accepted Accounting Society
C.
Trust Fund Bureau
D.
Attorney general's office
Question #6
As a stipulation of the ______, lenders must offer reasons when rejecting loan applications and must respond to all applications within 30 days.
A.
Federal Fair Housing Act of 1968
B.
Americans with Disabilities Act of 1990
C.
Fair Housing Amendments Act of 1988
D.
Equal Credit Opportunity Act of 1974
Question #7
Shane's buyers learned during the inspection that there was water damage around the fireplace and that the chimney needed new flashing and to be repointed. To whom must Shane disclose that information?
A.
Only the sellers
B.
Only the listing agent
C.
Only the sellers and the lender
D.
Any party to the transaction
Question #8
Edna is a listing agent on a property and has received two offers: one at list price and one slightly below. The offer that’s slightly below list price is from a buyer Edna’s cousin represents. What should Edna do?
A.
Edna should present both offers but encourage her seller to consider the lower one.
B.
Edna should present all offers, discuss the facts of each, and disclose that her cousin represents one of the buyers.
C.
Edna should present both offers but encourage her seller to consider the higher one.
D.
Edna should only present the offer from her cousin's client so her client isn't tempted to take the higher offer.
Question #9
What does the FTC consider to be a deceptive ad?
A.
Any ad or business practice that causes or is likely to cause injury
B.
Any ad likely to mislead consumers acting reasonably under the circumstances
C.
Any ad with a claim that's clearly not true
D.
Any ad that makes a health claim
Question #10
How many members on the Real Estate Advisory Commission are unlicensed consumers?
A.
Four
B.
Eight
C.
Six
D.
Ten
Question #11
The role of a property manager is to support the objectives and goals of the ______.
A.
Lessee
B.
Property owner
C.
Tenant
D.
Tenant association
Question #12
Which real estate career requires the ability to advise clients using your extensive real estate expertise and ability to evaluate the potential of a given property?
A.
Real estate attorney
B.
Real estate educator
C.
Real estate investor
D.
Real estate counselor
Question #13
What’s true about completing the Transfer Disclosure Statement (TDS) for residential property in California?
A.
The escrow agent must verify the information provided in the Seller's Information section.
B.
Only the seller may complete the Seller's Information section.
C.
The Seller's Information section should be completed by a qualified professional, such as a home inspector.
D.
The seller's agent uses the Seller's Property Questionnaire to transfer information to the Seller's Information section.
Question #14
Frances collected an earnest money check from her client, but didn’t have an opportunity to deliver it to the escrow agent before close of business on Friday. For safekeeping, she deposited it into her personal checking account over the weekend and wrote the escrow agent a new check on Monday morning. Which of these statements is true?
A.
Frances is guilty of commingling and conversion.
B.
Frances is guilty of fraud.
C.
Frances is guilty of commingling.
D.
Frances is guilty of conversion.
Question #15
You’ve been studying real estate in California for a while and are a few weeks from taking the exam and getting your real estate license. Which activities are you able to do?
A.
Charge your friends for real estate advice.
B.
Negotiate and buy your own property.
C.
Go to auctions and buy real estate on a friend's behalf and split the profit when he flips the house.
D.
Sell your friend's property for a small percent of the profit.
Question #16
What is the relationship between a policies and procedures manual and the broker’s obligation to supervise agents?
A.
Brokers who can prove that all agents have access to the PPM won't be cited for failure to adequately supervise agents.
B.
Brokers who enforce policies and procedures outlined in an effective PPM have proof of efforts to properly train and supervise agents.
C.
The PPM outlines the broker's responsibility to supervise and provides detailed proof of scheduled one-on-one meetings and group training sessions.
D.
The PPM may be used in place of face-to-face orientation training for new licensees.
Question #17
You’re explaining the use of the Natural Hazard Disclosure statement to your seller client. You describe the natural hazard zones it covers. Which of these is NOT one of the natural hazard zones included in the disclosure?
A.
Severe weather area
B.
Seismic hazard zone
C.
Flood hazard zone
D.
High fire hazard area
Question #18
River is an unlicensed assistant at a brokerage. Which of the following tasks is she permitted to perform for her broker?
A.
Host an open house.
B.
Suggest a sale price for a client's listing.
C.
Assemble closing documents.
D.
Negotiate on a client's behalf.
Question #19
What is the maximum amount that will be paid out of the Recovery Account for a transaction?
A.
$10,000
B.
$100,000
C.
$25,000
D.
$50,000
Question #20
Many supplementary statutory disclosures will be included in the ____________ when provided by a third-party company.
A.
Real Estate Transfer Disclosure Statement
B.
Seller Property Questionnaire
C.
Agent Visual Inspection Disclosure
D.
Natural Hazards Disclosure statement
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