Practice Exam Sales License

A  19

B  21

C  20

D  18

A  Speaks to a local civic club about the homebuying process

B  Contacts a mortgage broker to find out what first-time homebuyer programs are available

C  Gives her neighbor a tour of another neighborhood home that’s on the market

D  Performs a CMA for an acquaintance and provides advice on setting a listing price based on other comparable properties in the area

A  640 square feet

B  One acre

C  640 miles

D  640 acres

A  Prior to loan application

B  At loan application or within three days after loan application

C  Prior to or within three days after the loan application

D  Prior to or within 10 days after the loan application

A  Fiona wants to reduce her base rent.

B  Fiona is hoping to purchase the building at a later date.

C  The landlord is her business partner.

D  Fiona wants to demonstrate how viable her business is.

A  The secondary market regulates the primary market.

B  The secondary market packages loans to sell to the primary market.

C  The primary market packages loans to sell to the secondary market.

D  The primary market regulates the secondary market.

A  A rental agent only has “agency” with landlords, so only landlords must be provided with the disclosure.

B  Agency disclosure is required for buyers and sellers, but not tenants or landlords.

C  Agency disclosure is required for both landlords and tenants.

D  Agency disclosure is not required if a licensee represents both the tenant and the landlord.

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.

A  The center-most section identified in the rectangular government survey system

B  A north-south line used as a reference point in the rectangular government survey system

C  The center-most township identified in the rectangular government survey system

D  An east-west line used as a reference point in the rectangular government survey system

A  The property can be a primary or secondary residence.

B  The property must be at least five acres.

C  The property must be located in California.

D  The property can be a mobile or manufactured home.

A  License

B  Covenant

C  Grant

D  Easement

A  Area preference

B  Permanence

C  Improvements

D  Scarcity

A  Never questioning a client’s opinion

B  Putting the client’s interest first

C  Carrying out a client’s instructions without question

D  Keeping a client’s confidential information confidential

A  Acceleration

B  Due-on-sale

C  Alienation

D  Defeasance

A  Method of annexation

B  Adaptability of the item to the land’s use

C  Intention in placing item on land

D  Agreement of the parties

A  The smaller number

B  A middle point between the two numbers

C  The larger number, as a buyer has already been found

D  A weighted average based on the sales price, appraisal amount, and recent sales

A  A lawsuit filed by a landlord to regain possession of an improvement to property.

B  A lawsuit filed by a tenant when the security deposit is withheld unlawfully.

C  A lawsuit filed by a landlord against a holdover tenant.

D  A lawsuit filed by a rental agent when the commission is not paid.

A  When a party meets all terms of the contract

B  When a party does some, but not all, of what the party has agreed to do

C  When a party acknowledges receipt of the contract

D  When a party rejects all terms of the contract

A  A judgment lien

B  Created by law and gives right of possession

C  A mortgage

D  Created by a court of common law; doesn’t give the right to possession of the property

A  Testimony from long-time neighbors

B  Aerial photographs

C  Legal descriptions of both properties

D  Affidavit from surveyor

A  Nine square feet

B  10 square feet

C  Six square feet

D  Three square feet

A  An influx of higher wage earners to a given area would create a price decrease for lower-valued homes.

B  An influx of higher wage earners to a given area would decrease the demand for higher-priced housing.

C  An increase in the number of retirees in a given population would negatively impact the demand for large, single-family homes.

D  An increase in the number of retirees in a given population would positively impact the demand for large, single-family homes.

A  Tenancy at will

B  Fee absolute

C  Qualified fee

D  Fee simple

A  Someone who is involved in a transaction but represents neither party

B  Someone who’s hired to act on behalf of a client

C  Someone who uses or purchases a product or service

D  Someone who’s in a position of trust and loyalty

A  Tenuous

B  Mutual

C  Ill-advised

D  Unlawful

A  Review transaction documents with the buyer, clarifying anything that could be confusing, without stepping outside the scope of your license

B  Explain to the buyer why it’s unnecessary to have a professional inspection done on a new home

C  Show properties the buyer might qualify for if he would put down more earnest money

D  Coach the buyer on how to negotiate the terms of the sales contract to be completely in the buyer’s favor

A  Include a “not to exceed” clause

B  On a government-issued form

C  Payable at an indefinite time

D  Signed

A  Escrow officer

B  Buyer’s agent

C  Listing agent

D  Conservator

A  Demand

B  Scarcity

C  Utility

D  Transferability

A  The Equal Credit Opportunity Act

B  Real Estate Settlement Procedures Act

C  The Community Reinvestment Act

D  ECOLA

A  Universal agent

B  Single agent

C  Limited agent

D  General agent

A  A fixture

B  An improvement

C  The wrong color for her new house

D  Too heavy

A  A blueprint

B  A written narrative of the building plan

C  The building plan

D  A survey

A  Condominium project

B  Stock cooperative project

C  Time-share

D  Planned development

A  he former client has moved out-of-state.

B  it will help another client.

C  the former client is found guilty of fraud.

D  the transaction has closed.

A  Community Reinvestment Act

B  RESPA

C  Truth in Lending Act

D  Equal Credit Opportunity Act

A  Contract

B  Clairvoyance

C  Conveyance

D  Covenant

A  25 years old

B  20 years old

C  30 years old

D  15 years old

A  18.96%

B  25.58%

C  19.58%

D  14.51%

A  Must report this to California DRE only if the charge is related to theft

B  Must report this to California DRE under all circumstances

C  Need not report this to California DRE because it is not a guilty verdict

D  Must not report this; as it would be a violation of confidential information

A  Confidentiality

B  Disclosure

C  Reasonable skill and care

D  Obedience

A  $1,093.13

B  $874.50

C  $901

D  $1,126.25

A  Bulk

B  Aesthetic

C  Moratorium

D  Rural

A  Micah’s commission may be at risk.

B  Micah may be forced to send the client a written apology.

C  Micah may lose the client’s business.

D  Micah may receive a slap on the wrist from his broker, and be told to shape up or ship out.

A  $792.54

B  $3,113.46

C  $604.95

D  $1,997.62

A  The agreement terminates by force of law.

B  Jenson and Susan can mutually agree to terminate the agreement.

C  It’s terminated once the specified term in the agency agreement expires.

D  The client can revoke the agreement but may be considered in breach of contract.

A  $2,475

B  $2,450

C  $2,400

D  $3,200

A  Physical depreciation

B  Functional obsolescence

C  External depreciation

D  None. Depreciation doesn’t apply to new buildings.

A  Implied agency and undisclosed dual agency

B  Implied friendship

C  Undisclosed single agency

D  A potential bonus from the buyer

A  No, agency disclosure is only required on leases exceeding one year.

B  No, Damian does not provide the agency disclosure to his client. He only provides it to others involved in the transaction.

C  Yes, agency disclosure is required on sales of residential properties with one to four units.

D  No, agency disclosure is not required on sales of residential properties with one to four units.

A  File a security agreement at the county clerk’s office.

B  Purchase title insurance.

C  File a lis pendens claim at the court before buying the property.

D  Ensure the seller’s name is on the deed.

A  Representing the buyer’s interests

B  Reviewing transactional documents with the seller

C  Advocating for the seller

D  Negotiating for the seller

A  Dedicate a certain percentage of the land to the state of California

B  Attain a surety bond and furnish it to the state of California for one-and-a-half times the amount of any deposit monies.

C  Sign an affidavit of proforma

D  They must have a disclaimer that the property has not been examined the BRE on all marketing and sales materials.

A  Housing and Community Development Act of 1974

B  Civil Rights Act of 1866

C  Equal Credit Opportunity Act of 1974

D  Civil Rights Act of 1968

A  640

B  43,560

C  1,760

D  5,280

A  27.5 years

B  39 years

C  Indefinitely

D  Zero years (commercial properties cannot be depreciated)

A  Sublease

B  Gross lease

C  Net lease

D  Percentage lease

A  The contract between the parties should clarify the disposition of the crop.

B  The buyer should assume the crop transfers with the property.

C  The seller should assume the crop does not transfer with the property.

D  The seller should harvest the beans before the sale closes.

A  $500

B  $21,780

C  $5,000

D  $43,560

A  Downzoning

B  Spot zoning

C  Incentive zoning

D  Aesthetic zoning

A  Steven postponed his vacation so he could attend his seller client’s closing.

B  Michael submits all offers he receives on Jarrod’s property.

C  Tanaka refuses to encourage his seller client to lower his asking price.

D  Margo tells her seller client Troy that his property is worth less than it really is so he will get a quick sale.

A  7.50%

B  8%

C  9%

D  12.50%

A  A payment of less than $10,000

B  A payment of more than $10,000

C  Earnest money paid with a cashier’s check or wire transfer

D  Gifting a house to a family member

A  Yes, agency disclosure is required for lease transactions.

B  No, agency disclosure is only required on sales of residential properties.

C  No, agency disclosure is only required for commercial transactions.

D  No, agency disclosure is not required for residential transactions involving five or more units.

A  Notice

B  Compensation

C  Sympathy

D  Alternative living arrangements

A  $2,310

B  $4,620

C  $462

D  $231

A  Nothing. There is no defense against unpaid subcontractors.

B  File a notice of completion.

C  File a lien release.

D  Require the contractor obtain a payment bond.

A  Co-ownership

B  Estate by severalty

C  Property partnership

D  Dual ownership

A  A public listing and notice of foreclosure of a property.

B  A notice that notifies potential buyers of a pending lease

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

A  The date the lien is to be paid off

B  The date it is recorded

C  The lien holder

D  The amount of the lien

A  Judgment lien

B  Foreclosure action

C  Lis pendens

D  Mortgage lien

A  $1,069.77

B  $1,064.7

C  $,1055

D  $1,050

A  Clairvoyance and contract

B  Conveyance and contract

C  Conveyance and concession

D  Concession and contract

A  Integrated planning

B  Form-based planning

C  Pocket planning

D  Traditional planning

A  VOCs

B  Natural scents

C  PCBs

D  BPA

A  Mobilehome Landlord-Tenant Relations

B  Mobilehome Rent Law

C  Mobilehome Residency Law

D  RV Park Occupancy Law

A  Substitution

B  Conformity

C  Contribution

D  Anticipation

A  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.

B  Levi’s customer, Renee, wants to make an offer on Levi’s seller client’s home. Levi presents Renee’s offer to his client.

C  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.

D  Tom is holding an open house for his client. Ruby, a buyer, says she wants to make an offer.

A  They’re recorded at the real estate brokerage’s main office.

B  They’re recorded at the recorder’s office in the county where the property is located.

C  They’re recorded at the lending bank’s main office.

D  Mortgages are not recorded; only deeds are.

A  The higher the score, the higher the credit risk

B  Each company a uses a slightly different scoring system

C  Scoring is consistent across the three companies

D  Each company posts the borrower’s FICO® Score

A  Lenders will not approve a loan.

B  The property may float away.

C  The property will never sell.

D  Flood insurance may be required.

A  She sold the loan on the primary market for a lower interest rate.

B  Her bank foreclosed on the loan.

C  Her bank sold it on the secondary market as an investment product.

D  She received another loan on the secondary market when her bank demanded full payment.

A  Divide the smaller number by the larger number.

B  Move the decimal point two places to the left and remove the percent symbol.

C  Divide the top number by the bottom number.

D  Move the decimal point right two spots and add a percent symbol.

A  Buyer agency

B  Seller agency

C  Dual-licensee dual agency

D  Single-licensee dual agency

A  It puts a limit on how much interest financial institutions can charge.

B  It states that all real property sales must involve lawyers.

C  It doesn’t allow people to own land unless they can afford it.

D  It provides requirements that contracts have to meet to be legally enforceable.

A  The asset is worth more because of capital improvements.

B  The owner/investor is making less income from the property than previously.

C  Investors can take a business deduction for annual depreciation.

D  The asset is worth less because the economy took a downturn.

A  Profit

B  Earnest money

C  Attorney review

D  Consideration

A  Rex’s agent can continue to market the property, but Rex’s family must approve the sale.

B  The listing agreement is terminated by force of law.

C  The listing is temporarily on hold until a court gives permission to invalidate it or until the listing expires.

D  It’s still valid; Rex’s family must abide by it.

A  The owner of the empty lot down the street that Elizabeth uses as a vegetable garden with the owner’s permission

B  The resident of the adjoining property to whom Elizabeth has given permission to store some items in her gardening shed

C  The neighbor who constructed his new backyard fence six inches across Elizabeth’s property line

D  The utility company that needs to access the power line that crosses a corner of Elizabeth’s land

A  Reliction

B  Dedication

C  Accession

D  Alienation

A  Neither the buyer nor seller

B  The seller

C  Both the buyer and seller

D  The buyer

A  The seller is in a hurry to move because his wife is seven months pregnant.

B  The roof leaks when it rains.

C  The seller is willing to take less than the asking price.

D  None of these facts may be shared with the buyer if you are the seller’s agent.

A  The Freedom of Information Act

B  The First Amendment

C  The Sarbanes-Oxley Act

D  The SPEECH Act

A  NAR Code of Ethics

B  Uniform Standards of Professional Appraisal Practice (USPAP)

C  National Association of Appraisers (NAA) bylaws

D  Real estate license law

A  Witness

B  Notary public

C  Grantee

D  Grantor

A  Determines real estate policy and issues regulations to enforce law

B  Issues real estate licenses

C  Discusses real estate policy and makes recommendations to the Commissioner

D  Values real property in California

A  A second mortgage

B  The state of his local housing market

C  Whether he will incur a prepayment penalty

D  Whether his uncle would like this

A  Check with his real estate agent to make sure that the penalty shown is typical.

B  Ask the lender if there are other options available that would not involve a prepayment penalty.

C  Resolve to not try to pay the loan off early.

D  Laugh and throw the Loan Estimate in the trash.

A  Voidable

B  Void

C  Fraud

D  Valid

A  Receive payment for managing real estate.

B  List a friend or family member’s home for sale for a fee.

C  Give advice to a friend who is negotiating the purchase of a house.

D  Negotiate the sale of a house for two friends and receive a tip as thanks.