Navigation » List of Schools » The CE Shop » Sales License » 45-HR. CA REAL ESTATE PRACTICE COURSE » Summer 2021 » Practice Exam Sales License (2)
Below are the questions for the exam with the choices of answers:
Question #1
A 4524
B 4525
C 4523
D 4522
Question #2
A The risk that the required return on investor capital will not be met
B The risk that the property has a bad location
C The risk that an investor cannot secure financing at an affordable rate
D The risk that is directly related to leverage
Question #3
A Very few licensees are selected; it’s highly competitive.
B Being a new licensee is a distinct advantage.
C Most brokers prefer not to hire new licensees.
D You are interviewing the broker as much as the broker is interviewing you.
Question #4
A An escalation clause
B Full price or over full price
C Waive appraisal
D A quick closing
Question #5
A Client
B Seller
C Buyer
D Customer
Question #6
A “You won’t owe as much commission if we work under an agreement.”
B “Without a written representation agreement, I don’t represent you.”
C “Buyer representation agreements don’t obligate you in any way.”
D “All buyers are required to sign buyer representation agreements.”
Question #7
A Robert must also be an attorney
B Robert is in violation of agency law
C Robert is a dual agent
D Robert is breaching his fiduciary duty
Question #8
A The seller hires a contractor to repair holes in the wall and informs the buyer that the contractor never provided a receipt.
B The seller hires a contractor to repair holes in the wall starting the day the buyer is scheduled to verify final condition.
C 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.
D The seller repairs holes in the walls and documents that they were completed six days before close.
Question #9
A One in which anyone can find the buyer, but the listing agent still gets paid
B One in which there’s no end date
C One in which only the person who finds the buyer gets paid
D One in which the price is negotiable within a specified range
Question #10
A Exclusive right to sell
B Exclusive right to collect commission
C Net listing
D Exclusive agency
Question #11
A Divorce attorneys
B Home inspectors
C Game wardens
D Criminal attorneys
Question #12
A Join a team
B Send a mailer
C Buy display advertising
D Spend more than usual on marketing campaigns
Question #13
A Personal photo
B Personal contact number
C City and state where the brokerage is located and jurisdiction
D License number and responsible broker’s identity
Question #14
A Provisionary clause
B Multiple listing clause
C Broadcast clause
D Marketing clause
Question #15
A The seller wishes to lower the list price to encourage more offers.
B The seller wants to raise the list price after receiving no offers.
C The seller wants to move up the expiration date because the property sold right away.
D A buyer has made an offer below list price and the seller is willing to take that offer.
Question #16
A Manufacturing
B Leisure
C Healthcare
D Retail
Question #17
A There are special government financing programs for purchasing REOs.
B Federal regulations require that REOs be sold below market value.
C There are no agent commissions to pay for REO transactions.
D Lenders and their shareholders don’t like to keep properties on their books longer than necessary.
Question #18
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 #19
A Condemnation
B A second round of mediation
C Arbitration
D Litigation
Question #20
A They require no down payment.
B They’re always in demand.
C They need somewhere to live.
D Because they’re rare, and therefore valuable.
Question #21
A Monthly
B Yearly
C Weekly
D Quarterly
Question #22
A Including the brokerage name and main phone number, in addition to a licensee’s own name and phone number on an advertisement
B Preparing a written agreement that falsely states a purchase price
C Preparing a written agreement that accurately states a purchase price
D Making a reasonable effort to ensure all parties to a written agreement have a copy of the agreement
Question #23
A The parties may choose to negotiate the difference.
B The seller must reduce the price to the appraised value.
C The buyer will be forced to terminate the contract immediately.
D A new appraisal will always be ordered.
Question #24
A Laws related to real property contracts, such as contract of sale or land installment contracts
B Laws related to theft and other crimes
C Laws related to the sale of securities
D It does not contain laws
Question #25
A $3,000
B $24,000
C $36,000
D $48,000
Question #26
A Are larger properties
B Are relatively rare, so tenants compete for available units
C Require a larger down payment, so there is less to finance
D Are relatively liquid
Question #27
A The commuting one, because most business is conducted in the car.
B The commuting one, because he will spend most of his time in the field.
C The closer one, because gas is expensive.
D The closer one, because he can meet clients at the office easier.
Question #28
A The unit may need to be replaced.
B Older units are bigger and more unsightly.
C They were hoping for window air conditioning.
D Central air conditioning isn’t a sustainable technology.
Question #29
A The difference between usable square footage and rentable square footage
B Vacant units
C Bathrooms and hallways
D Stairwells and lobbies
Question #30
A Under warranty
B With material defects
C By default
D As-is
Question #31
A Michael is allowed to prepare an advertisement which states, “Home for sale, $140,000. No Hispanics.”
B Michael may inform Felicity of fair housing laws.
C Michael may follow Felicity’s instructions and show the house to anyone except Hispanics.
D Michael is allowed to tell any prospective buyers and their agents that Felicity will not sell to Hispanics.
Question #32
A The California Department of Real Estate Commissioner
B The Internal Revenue Service
C The Federal Bureau of Investigation
D The Central Intelligence Agency
Question #33
A Government Requirements and Retrofit
B Escrow and Title
C Inspections, Reports, and Certificates
D Other Costs
Question #34
A Three
B 21
C 30
D 10
Question #35
A No, this is how agents work with buyers.
B Yes, because she should meet them in person before working for them.
C No, this is how all agents work.
D Yes, because this constitutes the illegal practice of real estate.
Question #36
A That 70% of renters will leave in the first two years
B The purchase price shouldn’t be more than 70% of the repaired value
C They must receive 70% return on their investment
D That 70% of their income will go toward expenses
Question #37
A In an interest-bearing account
B In the firm’s general business account, with a ledger entry for the client’s name, labeled “trust fund”
C In a trust fund account or neutral escrow
D In the firm’s safe or safety deposit box until closing
Question #38
A Inform the seller
B Inform all parties to the transaction
C Terminate her agency relationship
D Say nothing
Question #39
A Financial
B Leverage
C Business
D Capital
Question #40
A Termination of Buyer Agency
B Seller Instruction to Exclude from the MLS
C Cancellation of Listing
D Modification of Terms
Question #41
A Advertise the listing on the MLS
B Negotiate a higher commission, as there is a greater burden on the agent to find a buyer
C Prepare advertising for social media and local newspapers
D Fully inform the seller about the dangers of reduced market exposure
Question #42
A Nothing
B Closer to parking
C More amenities
D Rooms open to interior of the building
Question #43
A 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.
B 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.
C An owner refuses to sell a house to a same-sex couple that offered less than the asking price.
D A landlord refuses to rent to a tenant who has poor credit and unstable employment history.
Question #44
A Laura may leave the brokerage and join another at any time.
B Laura must stay with Bill for at least two years before she transfers brokerages.
C Laura likely won’t get a salary for six weeks.
D Laura will be put on a three-month probation.
Question #45
A Seek out a broker who does a lot of business.
B Work a regular work week (Monday through Friday, 9 a.m. to 5 p.m.).
C Try to be all things to all people.
D Work hard and stick with it.
Question #46
A Monica cannot tell others about Brian’s HIV status.
B Monica should purchase Brian’s property.
C Monica should not be the listing agent for her friend.
D Monica should tell all prospective buyers that the seller has HIV.
Question #47
A Effective gross income
B Net operating income
C Potential gross income
D An operating statement
Question #48
A Dynamic
B Cold
C Hot
D Static
Question #49
A Escrow can’t disburse the money without your signature
B Escrow is bonded
C Escrow is FDIC insured.
D My company will cover any losses
Question #50
A 2039
B 2019
C 2029
D 2048
Question #51
A Saturday, August 3
B Wednesday, July 31
C Thursday, August 1
D Friday, August 2
Question #52
A They are afraid they’ll be asked to reduce their commissions.
B They want wealthier clients than their friends and family.
C Their brokers don’t want them marketing to that audience.
D They don’t want to seem pushy.
Question #53
A Tell the buyer’s agent that the sellers aren’t reviewing offers until next week.
B Present the offer to the seller right away and don’t mention the other potential buyer.
C Present the offer to the seller and tell him you have another potential buyer who wants to see the property next week.
D Hold on to the offer until after your buyer sees the property.
Question #54
A Foreign Real Estate Tax Withholding Act (FRETWA)
B Foreign Investor Real Estate Investment Tax (FIRE-IT)
C Tax Withholding for Foreign Holding Act (TWFHA)
D Foreign Investment in Real Estate Property Tax Act (FIRPTA)
Question #55
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 #56
A Maintaining the documents in the brokerage files for at least five years from the closing date
B Destroying all documents carrying a client signature in a manner approved by DRE
C Sending a copy of the agreement to DRE
D Giving a copy of the agreement to her client after it’s signed
Question #57
A Records that must be provided to clients upon request
B Records that must be held for at least three years
C Documents that must be stored electronically
D Documents that must be submitted to the DRE
Question #58
A Access to restrooms
B Sufficient cooling and heating
C Improved acoustics
D Carpeted halls and stairways
Question #59
A To get leads on available properties
B To get the client better deals on settlement costs
C To get the client better deals on title insurance
D To get referrals to other investors
Question #60
A No, California law prohibits foreclosure for a tax lien.
B Yes, but only if his taxes remain unpaid for five years.
C No, a property tax lien doesn’t give the lien holder the power of sale.
D Yes, they can foreclose immediately.
Question #61
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 #62
A Nine
B 11
C 20
D 10
Question #63
A Handyman companies
B Home decorator conventions
C “Subject to court approval” listings in the MLS
D Door-to-door in low-income neighborhoods
Question #64
A “Property taxes are prorated so you’ll only pay for the time you owned the property.”
B “Your title will reveal any tax liens, so the title company will review it to ensure that isn’t an encumbrance.”
C “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.”
D “When you’re buying your next home, the transfer will trigger a reassessment for property tax purposes.”
Question #65
A Interview other new licensees
B Call the Better Business Bureau
C Interview several managing brokers
D Request an income guarantee
Question #66
A It’s important to avoid spending money on non-essentials or adding to her debt load prior to closing on the loan.
B She should use store credit instead of her credit card to purchase the furniture since the interest rate is probably lower.
C She should wait until after she closes on the home and then use a home equity line of credit to make her furniture purchases.
D She should use money from her savings account to make the purchase instead of using her credit card.
Question #67
A Accept a middle-of-the-road offer, but on the condition that no home inspection repairs will be performed.
B Reject the offers and put the home back on the market for the amount of the highest offer.
C Have all buyers submit their “highest and best” offer, then help the seller decide which offer is most appealing.
D Leave it on the market for another three days to allow time for even more offers to come in.
Question #68
A The Federal Trade Commission Act
B The Sherman Antitrust Act
C Licensing laws
D Fair housing laws
Question #69
A Capital
B Static
C Environmental
D Dynamic
Question #70
A First-time buyer
B Trade-down buyer
C Retiree
D Trade-up buyer
Question #71
A A relatively vague description, so people want to come and see the details
B The seller’s contact information
C The seller’s bottom-line sales price
D At least one photo
Question #72
A Trading international currency
B A comparison of before-tax cash flow to cash invested
C Net income after taxes are deducted
D Making money hand over fist
Question #73
A Ensuring that the letter was given to neighbors on both sides of the street
B Providing the letter in multiple languages for non-English speakers
C Giving the letter to at least 20 neighbors
D Listing the property on the MLS
Question #74
A Three years
B 10 years
C One year
D Five years
Question #75
A Mortgage
B Credit
C Debit
D Balance
Question #76
A Broker
B Owner
C Property manager
D Buyer
Question #77
A It is voidable, because the consideration, as a percentage rather than a dollar amount, is not clearly stated.
B It is void because it is not for a lawful purpose.
C It is voidable, because Jesse probably signed it under duress.
D It is voidable, because Jesse is not mentally competent to sign a contract.
Question #78
A You won’t need to check their credit if they’ve qualified for a home in the past.
B Their current home might be a potential listing for you.
C If they don’t, they’re probably wasting your time.
D Selling their home before purchasing a new one is more work for you and might not be worth your time.
Question #79
A No, Yolanda can take legal action against the buyers at any time while she still owns the property.
B No, Yolanda can take legal action at any time within two years after taking possession of the property.
C Yes, Yolanda should have canceled the contract within three days of receiving seller disclosures.
D Yes, the buyer can only take legal action within six months of taking possession of the property.
Question #80
A Disclosure
B Accounting
C Confidentiality
D Reasonable skill and care
Question #81
A AARP
B NAIC
C FDIC
D WNBA
Question #82
A Disbursed
B Eliminated
C Reallocated
D Frozen
Question #83
A You should provide an inspection report to all prospects, along with seller disclosures.
B You should disclose any adverse material facts, but you don’t have to provide the report.
C You should provide an inspection report, but only if specifically asked.
D You should ask the buyers who walked away whether you can provide a copy.
Question #84
A What is your income?
B What is your tax bracket?
C Are you currently working with any other agents?
D Have you ever been convicted of any felonies?
Question #85
A Commission
B Revenue
C Non-trust funds
D Trust funds
Question #86
A “My contract length is non-negotiable.”
B “My listing agreements are generally 90-day contracts.”
C “The MLS requires us to have at least 90-day listings.”
D “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.”
Question #87
A Real Estate Standard Protection Act
B Real Estate Society Protection Act
C Real Estate Settlement Procedures Act
D Real Estate Seller Prohibition Act
Question #88
A Capital
B Business
C Leverage
D Financial
Question #89
A Subtract
B Depreciate
C Deduct
D Add
Question #90
A 1960
B 1978
C 1945
D 1900
Question #91
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 #92
A Commingling
B Conversion
C Earned interest
D Documentation
Question #93
A Yes, because she’s a close relative.
B No, the commission must go through the escrow company first.
C No, the commission must go through the agent’s broker.
D No, agents cannot accept commissions from immediate family.
Question #94
A Carma agrees to list Tera’s property for free if Tera signs an agreement to purchase her new home through Carma.
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 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.
Question #95
A Unintentional misrepresentation
B Negligent misrepresentation
C Fraud
D Puffery
Question #96
A Tying
B Fair housing
C Rule of reason
D Per se
Question #97
A The day after closing on the property to ensure proper transfer of title
B At the closing
C Weeks prior to closing
D The day prior to closing
Question #98
A The seller is solely responsible.
B Both seller and broker are responsible.
C The listing agreement does not account for responsibility in this area.
D The responsibility lies solely with the listing agent and brokerage.
Question #99
A Market listing service
B Membership listing service
C Multiple listing service
D Maximum listing service
Question #100
A Honesty and obedience
B Honesty and fairness
C Fairness and loyalty
D Obedience and loyalty