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