Practice Exam Sales License

A  21

B  19

C  20

D  18

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

B  Speaks to a local civic club about the homebuying process

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

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

A  640 acres

B  640 square feet

C  640 miles

D  One acre

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

A  Fiona wants to reduce her base rent.

B  Fiona wants to demonstrate how viable her business is.

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

D  The landlord is her business partner.

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.

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

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

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.

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

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

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

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

A  The property can be a mobile or manufactured home.

B  The property can be a primary or secondary residence.

C  The property must be located in California.

D  The property must be at least five acres.

A  Easement

B  Covenant

C  Grant

D  License

A  Area preference

B  Scarcity

C  Improvements

D  Permanence

A  Never questioning a client’s opinion

B  Keeping a client’s confidential information confidential

C  Putting the client’s interest first

D  Carrying out a client’s instructions without question

A  Due-on-sale

B  Alienation

C  Defeasance

D  Acceleration

A  Method of annexation

B  Agreement of the parties

C  Adaptability of the item to the land’s use

D  Intention in placing item on land

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

B  A middle point between the two numbers

C  The smaller number

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

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

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

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

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

A  When a party acknowledges receipt of the contract

B  When a party rejects all terms of the contract

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

D  When a party meets all terms of the contract

A  A judgment lien

B  Created by law and gives right of possession

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

D  A mortgage

A  Affidavit from surveyor

B  Legal descriptions of both properties

C  Aerial photographs

D  Testimony from long-time neighbors

A  Three square feet

B  10 square feet

C  Nine square feet

D  Six square feet

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

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

A  Fee absolute

B  Tenancy at will

C  Qualified fee

D  Fee simple

A  Someone who uses or purchases a product or service

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

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

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

A  Unlawful

B  Tenuous

C  Mutual

D  Ill-advised

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

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

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

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

A  Payable at an indefinite time

B  Include a “not to exceed” clause

C  On a government-issued form

D  Signed

A  Buyer’s agent

B  Listing agent

C  Escrow officer

D  Conservator

A  Transferability

B  Demand

C  Scarcity

D  Utility

A  The Community Reinvestment Act

B  Real Estate Settlement Procedures Act

C  The Equal Credit Opportunity Act

D  ECOLA

A  General agent

B  Single agent

C  Limited agent

D  Universal agent

A  The wrong color for her new house

B  A fixture

C  Too heavy

D  An improvement

A  A written narrative of the building plan

B  The building plan

C  A blueprint

D  A survey

A  Stock cooperative project

B  Condominium project

C  Time-share

D  Planned development

A  it will help another client.

B  the transaction has closed.

C  the former client is found guilty of fraud.

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

A  Equal Credit Opportunity Act

B  Truth in Lending Act

C  RESPA

D  Community Reinvestment Act

A  Clairvoyance

B  Covenant

C  Conveyance

D  Contract

A  25 years old

B  15 years old

C  20 years old

D  30 years old

A  19.58%

B  14.51%

C  25.58%

D  18.96%

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

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

A  Reasonable skill and care

B  Disclosure

C  Confidentiality

D  Obedience

A  $1,093.13

B  $1,126.25

C  $901

D  $874.50

A  Moratorium

B  Bulk

C  Rural

D  Aesthetic

A  Micah’s commission may be at risk.

B  Micah may lose the client’s business.

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

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

A  $3,113.46

B  $1,997.62

C  $792.54

D  $604.95

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

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

C  The agreement terminates by force of law.

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

A  $2,400

B  $2,450

C  $2,475

D  $3,200

A  External depreciation

B  Functional obsolescence

C  Physical depreciation

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

A  A potential bonus from the buyer

B  Undisclosed single agency

C  Implied friendship

D  Implied agency and undisclosed dual agency

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  Ensure the seller’s name is on the deed.

B  Purchase title insurance.

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

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

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  Sign an affidavit of proforma

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

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  Equal Credit Opportunity Act of 1974

C  Civil Rights Act of 1866

D  Civil Rights Act of 1968

A  640

B  1,760

C  43,560

D  5,280

A  Indefinitely

B  39 years

C  27.5 years

D  Zero years (commercial properties cannot be depreciated)

A  Net lease

B  Percentage lease

C  Gross lease

D  Sublease

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

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

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

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

A  $43,560

B  $5,000

C  $500

D  $21,780

A  Spot zoning

B  Incentive zoning

C  Downzoning

D  Aesthetic zoning

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

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

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

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

A  8%

B  9%

C  12.50%

D  7.50%

A  A payment of more than $10,000

B  Gifting a house to a family member

C  A payment of less than $10,000

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

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

B  Yes, agency disclosure is required for lease transactions.

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

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

A  Notice

B  Sympathy

C  Alternative living arrangements

D  Compensation

A  $231

B  $2,310

C  $462

D  $4,620

A  Require the contractor obtain a payment bond.

B  File a lien release.

C  Nothing. There is no defense against unpaid subcontractors.

D  File a notice of completion.

A  Co-ownership

B  Estate by severalty

C  Property partnership

D  Dual ownership

A  A legal term that means “it depends” and requires a certain minimum sales price of the 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 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 amount of the lien

D  The lien holder

A  Judgment lien

B  Lis pendens

C  Foreclosure action

D  Mortgage lien

A  $1,050

B  $1,064.7

C  $,1055

D  $1,069.77

A  Clairvoyance and contract

B  Concession and contract

C  Conveyance and contract

D  Conveyance and concession

A  Traditional planning

B  Pocket planning

C  Integrated planning

D  Form-based planning

A  PCBs

B  VOCs

C  Natural scents

D  BPA

A  Mobilehome Rent Law

B  Mobilehome Residency Law

C  RV Park Occupancy Law

D  Mobilehome Landlord-Tenant Relations

A  Conformity

B  Contribution

C  Anticipation

D  Substitution

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

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  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.

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

D  Mortgages are not recorded; only deeds are.

A  Each company a uses a slightly different scoring system

B  The higher the score, the higher the credit risk

C  Each company posts the borrower’s FICO® Score

D  Scoring is consistent across the three companies

A  Lenders will not approve a loan.

B  The property will never sell.

C  The property may float away.

D  Flood insurance may be required.

A  Her bank foreclosed on the loan.

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

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

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

A  Divide the top number by the bottom number.

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

C  Divide the smaller number by the larger number.

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

A  Buyer agency

B  Single-licensee dual agency

C  Dual-licensee dual agency

D  Seller agency

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

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

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

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 more because of capital improvements.

A  Earnest money

B  Profit

C  Attorney review

D  Consideration

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

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

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

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

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

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

A  Alienation

B  Accession

C  Dedication

D  Reliction

A  The seller

B  Both the buyer and seller

C  The buyer

D  Neither the buyer nor seller

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

B  The roof leaks when it rains.

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

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

A  The First Amendment

B  The Sarbanes-Oxley Act

C  The Freedom of Information Act

D  The SPEECH Act

A  Real estate license law

B  Uniform Standards of Professional Appraisal Practice (USPAP)

C  NAR Code of Ethics

D  National Association of Appraisers (NAA) bylaws

A  Witness

B  Grantee

C  Grantor

D  Notary public

A  Issues real estate licenses

B  Discusses real estate policy and makes recommendations to the Commissioner

C  Determines real estate policy and issues regulations to enforce law

D  Values real property in California

A  The state of his local housing market

B  Whether he will incur a prepayment penalty

C  Whether his uncle would like this

D  A second mortgage

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  Laugh and throw the Loan Estimate in the trash.

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

A  Valid

B  Void

C  Voidable

D  Fraud

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.