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