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Below are the questions for the exam with the choices of answers:
Question #1
A 20
B 21
C 18
D 19
Question #2
A Contacts a mortgage broker to find out what first-time homebuyer programs are available
B Performs a CMA for an acquaintance and provides advice on setting a listing price based on other comparable properties in the area
C Gives her neighbor a tour of another neighborhood home that’s on the market
D Speaks to a local civic club about the homebuying process
Question #3
A 640 acres
B One acre
C 640 miles
D 640 square feet
Question #4
A Prior to or within 10 days after the loan application
B Prior to loan application
C Prior to or within three days after the loan application
D At loan application or within three days after loan application
Question #5
A Fiona wants to demonstrate how viable her business is.
B The landlord is her business partner.
C Fiona wants to reduce her base rent.
D Fiona is hoping to purchase the building at a later date.
Question #6
A The secondary market regulates the primary market.
B The secondary market packages loans to sell to the primary market.
C The primary market regulates the secondary market.
D The primary market packages loans to sell to the secondary market.
Question #7
A Agency disclosure is required for both landlords and tenants.
B Agency disclosure is required for buyers and sellers, but not tenants or landlords.
C A rental agent only has “agency” with landlords, so only landlords must be provided with the disclosure.
D Agency disclosure is not required if a licensee represents both the tenant and the landlord.
Question #8
A It causes premature birth.
B It can cause serious lung disease and cancer.
C It causes a skin rash.
D It causes dementia if levels of exposure are high.
Question #9
A An east-west line used as a reference point in the rectangular government survey system
B The center-most section identified in the rectangular government survey system
C A north-south line used as a reference point in the rectangular government survey system
D The center-most township identified in the rectangular government survey system
Question #10
A The property must be located in California.
B The property can be a mobile or manufactured home.
C The property can be a primary or secondary residence.
D The property must be at least five acres.
Question #11
A Grant
B License
C Easement
D Covenant
Question #12
A Area preference
B Improvements
C Permanence
D Scarcity
Question #13
A Carrying out a client’s instructions without question
B Keeping a client’s confidential information confidential
C Putting the client’s interest first
D Never questioning a client’s opinion
Question #14
A Alienation
B Defeasance
C Due-on-sale
D Acceleration
Question #15
A Intention in placing item on land
B Method of annexation
C Adaptability of the item to the land’s use
D Agreement of the parties
Question #16
A The larger number, as a buyer has already been found
B A weighted average based on the sales price, appraisal amount, and recent sales
C The smaller number
D A middle point between the two numbers
Question #17
A A lawsuit filed by a rental agent when the commission is not paid.
B A lawsuit filed by a landlord against a holdover tenant.
C A lawsuit filed by a tenant when the security deposit is withheld unlawfully.
D A lawsuit filed by a landlord to regain possession of an improvement to property.
Question #18
A When a party meets all terms of the contract
B When a party acknowledges receipt of the contract
C When a party rejects all terms of the contract
D When a party does some, but not all, of what the party has agreed to do
Question #19
A A mortgage
B Created by law and gives right of possession
C A judgment lien
D Created by a court of common law; doesn’t give the right to possession of the property
Question #20
A Legal descriptions of both properties
B Testimony from long-time neighbors
C Aerial photographs
D Affidavit from surveyor
Question #21
A 10 square feet
B Three square feet
C Nine square feet
D Six square feet
Question #22
A An increase in the number of retirees in a given population would positively impact the demand for large, single-family homes.
B An influx of higher wage earners to a given area would create a price decrease for lower-valued homes.
C An increase in the number of retirees in a given population would negatively impact the demand for large, single-family homes.
D An influx of higher wage earners to a given area would decrease the demand for higher-priced housing.
Question #23
A Tenancy at will
B Fee absolute
C Qualified fee
D Fee simple
Question #24
A Someone who uses or purchases a product or service
B Someone who’s hired to act on behalf of a client
C Someone who’s in a position of trust and loyalty
D Someone who is involved in a transaction but represents neither party
Question #25
A Mutual
B Tenuous
C Ill-advised
D Unlawful
Question #26
A Review transaction documents with the buyer, clarifying anything that could be confusing, without stepping outside the scope of your license
B Coach the buyer on how to negotiate the terms of the sales contract to be completely in the buyer’s favor
C Explain to the buyer why it’s unnecessary to have a professional inspection done on a new home
D Show properties the buyer might qualify for if he would put down more earnest money
Question #27
A Include a “not to exceed” clause
B Payable at an indefinite time
C On a government-issued form
D Signed
Question #28
A Buyer’s agent
B Escrow officer
C Listing agent
D Conservator
Question #29
A Transferability
B Scarcity
C Demand
D Utility
Question #30
A The Equal Credit Opportunity Act
B Real Estate Settlement Procedures Act
C The Community Reinvestment Act
D ECOLA
Question #31
A Universal agent
B Single agent
C Limited agent
D General agent
Question #32
A An improvement
B The wrong color for her new house
C A fixture
D Too heavy
Question #33
A The building plan
B A survey
C A blueprint
D A written narrative of the building plan
Question #34
A Stock cooperative project
B Planned development
C Condominium project
D Time-share
Question #35
A he former client has moved out-of-state.
B the former client is found guilty of fraud.
C it will help another client.
D the transaction has closed.
Question #36
A Equal Credit Opportunity Act
B Truth in Lending Act
C Community Reinvestment Act
D RESPA
Question #37
A Covenant
B Clairvoyance
C Conveyance
D Contract
Question #38
A 25 years old
B 30 years old
C 20 years old
D 15 years old
Question #39
A 18.96%
B 25.58%
C 19.58%
D 14.51%
Question #40
A Must report this to California DRE only if the charge is related to theft
B Need not report this to California DRE because it is not a guilty verdict
C Must not report this; as it would be a violation of confidential information
D Must report this to California DRE under all circumstances
Question #41
A Obedience
B Confidentiality
C Reasonable skill and care
D Disclosure
Question #42
A $1,126.25
B $901
C $1,093.13
D $874.50
Question #43
A Bulk
B Rural
C Moratorium
D Aesthetic
Question #44
A Micah may receive a slap on the wrist from his broker, and be told to shape up or ship out.
B Micah may be forced to send the client a written apology.
C Micah’s commission may be at risk.
D Micah may lose the client’s business.
Question #45
A $3,113.46
B $1,997.62
C $792.54
D $604.95
Question #46
A It’s terminated once the specified term in the agency agreement expires.
B The agreement terminates by force of law.
C Jenson and Susan can mutually agree to terminate the agreement.
D The client can revoke the agreement but may be considered in breach of contract.
Question #47
A $3,200
B $2,400
C $2,475
D $2,450
Question #48
A External depreciation
B Physical depreciation
C Functional obsolescence
D None. Depreciation doesn’t apply to new buildings.
Question #49
A Implied agency and undisclosed dual agency
B A potential bonus from the buyer
C Implied friendship
D Undisclosed single agency
Question #50
A No, agency disclosure is only required on leases exceeding one year.
B No, agency disclosure is not required on sales of residential properties with one to four units.
C No, Damian does not provide the agency disclosure to his client. He only provides it to others involved in the transaction.
D Yes, agency disclosure is required on sales of residential properties with one to four units.
Question #51
A File a security agreement at the county clerk’s office.
B Purchase title insurance.
C Ensure the seller’s name is on the deed.
D File a lis pendens claim at the court before buying the property.
Question #52
A Representing the buyer’s interests
B Negotiating for the seller
C Advocating for the seller
D Reviewing transactional documents with the seller
Question #53
A They must have a disclaimer that the property has not been examined the BRE on all marketing and sales materials.
B Sign an affidavit of proforma
C Dedicate a certain percentage of the land to the state of California
D Attain a surety bond and furnish it to the state of California for one-and-a-half times the amount of any deposit monies.
Question #54
A Civil Rights Act of 1968
B Housing and Community Development Act of 1974
C Civil Rights Act of 1866
D Equal Credit Opportunity Act of 1974
Question #55
A 43,560
B 1,760
C 5,280
D 640
Question #56
A Zero years (commercial properties cannot be depreciated)
B Indefinitely
C 39 years
D 27.5 years
Question #57
A Percentage lease
B Gross lease
C Net lease
D Sublease
Question #58
A The contract between the parties should clarify the disposition of the crop.
B The seller should harvest the beans before the sale closes.
C The seller should assume the crop does not transfer with the property.
D The buyer should assume the crop transfers with the property.
Question #59
A $500
B $43,560
C $5,000
D $21,780
Question #60
A Spot zoning
B Incentive zoning
C Aesthetic zoning
D Downzoning
Question #61
A Margo tells her seller client Troy that his property is worth less than it really is so he will get a quick sale.
B Tanaka refuses to encourage his seller client to lower his asking price.
C Michael submits all offers he receives on Jarrod’s property.
D Steven postponed his vacation so he could attend his seller client’s closing.
Question #62
A 8%
B 12.50%
C 9%
D 7.50%
Question #63
A Earnest money paid with a cashier’s check or wire transfer
B Gifting a house to a family member
C A payment of more than $10,000
D A payment of less than $10,000
Question #64
A No, agency disclosure is only required for commercial transactions.
B No, agency disclosure is not required for residential transactions involving five or more units.
C Yes, agency disclosure is required for lease transactions.
D No, agency disclosure is only required on sales of residential properties.
Question #65
A Sympathy
B Alternative living arrangements
C Notice
D Compensation
Question #66
A $462
B $2,310
C $231
D $4,620
Question #67
A File a notice of completion.
B Nothing. There is no defense against unpaid subcontractors.
C Require the contractor obtain a payment bond.
D File a lien release.
Question #68
A Estate by severalty
B Co-ownership
C Dual ownership
D Property partnership
Question #69
A A notice that notifies potential buyers of a pending lease
B A public listing and notice of foreclosure of a property.
C A legal term that means “it depends” and requires a certain minimum sales price of the property.
D A legal notice that a lawsuit is pending that affects the title of a property
Question #70
A The lien holder
B The date the lien is to be paid off
C The date it is recorded
D The amount of the lien
Question #71
A Judgment lien
B Lis pendens
C Foreclosure action
D Mortgage lien
Question #72
A $1,069.77
B $1,050
C $1,064.7
D $,1055
Question #73
A Conveyance and concession
B Conveyance and contract
C Clairvoyance and contract
D Concession and contract
Question #74
A Pocket planning
B Form-based planning
C Integrated planning
D Traditional planning
Question #75
A PCBs
B Natural scents
C VOCs
D BPA
Question #76
A Mobilehome Landlord-Tenant Relations
B Mobilehome Residency Law
C RV Park Occupancy Law
D Mobilehome Rent Law
Question #77
A Substitution
B Contribution
C Anticipation
D Conformity
Question #78
A Jarrod represents the seller, Juan. A buyer, Alaina, approaches Jarrod about representing her in the purchase of Juan’s house. Jarrod obtains Juan and Alaina’s consent to dual agency.
B Kady’s firm uses representation agreements that, when signed, provide consent to dual licensee dual agency. Kady’s buyer makes an offer on one of Kady’s colleague’s listings.
C Tom is holding an open house for his client. Ruby, a buyer, says she wants to make an offer.
D Levi’s customer, Renee, wants to make an offer on Levi’s seller client’s home. Levi presents Renee’s offer to his client.
Question #79
A They’re recorded at the real estate brokerage’s main office.
B They’re recorded at the lending bank’s main office.
C They’re recorded at the recorder’s office in the county where the property is located.
D Mortgages are not recorded; only deeds are.
Question #80
A Each company posts the borrower’s FICO® Score
B The higher the score, the higher the credit risk
C Each company a uses a slightly different scoring system
D Scoring is consistent across the three companies
Question #81
A The property may float away.
B Flood insurance may be required.
C The property will never sell.
D Lenders will not approve a loan.
Question #82
A Her bank foreclosed on the loan.
B Her bank sold it on the secondary market as an investment product.
C She sold the loan on the primary market for a lower interest rate.
D She received another loan on the secondary market when her bank demanded full payment.
Question #83
A Divide the top number by the bottom number.
B Move the decimal point right two spots and add a percent symbol.
C Move the decimal point two places to the left and remove the percent symbol.
D Divide the smaller number by the larger number.
Question #84
A Dual-licensee dual agency
B Buyer agency
C Seller agency
D Single-licensee dual agency
Question #85
A It provides requirements that contracts have to meet to be legally enforceable.
B It puts a limit on how much interest financial institutions can charge.
C It doesn’t allow people to own land unless they can afford it.
D It states that all real property sales must involve lawyers.
Question #86
A Investors can take a business deduction for annual depreciation.
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 The asset is worth more because of capital improvements.
Question #87
A Attorney review
B Consideration
C Earnest money
D Profit
Question #88
A The listing agreement is terminated by force of law.
B It’s still valid; Rex’s family must abide by it.
C Rex’s agent can continue to market the property, but Rex’s family must approve the sale.
D The listing is temporarily on hold until a court gives permission to invalidate it or until the listing expires.
Question #89
A The utility company that needs to access the power line that crosses a corner of Elizabeth’s land
B The owner of the empty lot down the street that Elizabeth uses as a vegetable garden with the owner’s permission
C The resident of the adjoining property to whom Elizabeth has given permission to store some items in her gardening shed
D The neighbor who constructed his new backyard fence six inches across Elizabeth’s property line
Question #90
A Dedication
B Accession
C Alienation
D Reliction
Question #91
A The seller
B Neither the buyer nor seller
C The buyer
D Both the buyer and seller
Question #92
A None of these facts may be shared with the buyer if you are the seller’s agent.
B The roof leaks when it rains.
C The seller is willing to take less than the asking price.
D The seller is in a hurry to move because his wife is seven months pregnant.
Question #93
A The SPEECH Act
B The First Amendment
C The Freedom of Information Act
D The Sarbanes-Oxley Act
Question #94
A National Association of Appraisers (NAA) bylaws
B Uniform Standards of Professional Appraisal Practice (USPAP)
C NAR Code of Ethics
D Real estate license law
Question #95
A Grantee
B Witness
C Notary public
D Grantor
Question #96
A Values real property in California
B Issues real estate licenses
C Discusses real estate policy and makes recommendations to the Commissioner
D Determines real estate policy and issues regulations to enforce law
Question #97
A A second mortgage
B Whether he will incur a prepayment penalty
C The state of his local housing market
D Whether his uncle would like this
Question #98
A Check with his real estate agent to make sure that the penalty shown is typical.
B Resolve to not try to pay the loan off early.
C Ask the lender if there are other options available that would not involve a prepayment penalty.
D Laugh and throw the Loan Estimate in the trash.
Question #99
A Void
B Voidable
C Valid
D Fraud
Question #100
A Give advice to a friend who is negotiating the purchase of a house.
B Receive payment for managing real estate.
C List a friend or family member’s home for sale for a fee.
D Negotiate the sale of a house for two friends and receive a tip as thanks.