Practice Exam Sales License

A  21

B  20

C  18

D  19

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  At loan application or within three days after loan application

B  Prior to or within 10 days after the loan application

C  Prior to or within three days after the loan application

D  Prior to loan application

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

B  Fiona wants to demonstrate how viable her business is.

C  Fiona wants to reduce her base rent.

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

B  Agency disclosure is required for both landlords and tenants.

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

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

A  It causes a skin rash.

B  It causes premature birth.

C  It can cause serious lung disease and cancer.

D  It causes dementia if levels of exposure are high.

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

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

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

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

A  The property can be a mobile or manufactured home.

B  The property must be located in California.

C  The property must be at least five acres.

D  The property can be a primary or secondary residence.

A  Easement

B  Covenant

C  Grant

D  License

A  Scarcity

B  Improvements

C  Area preference

D  Permanence

A  Carrying out a client’s instructions without question

B  Keeping a client’s confidential information confidential

C  Putting the client’s interest first

D  Never questioning a client’s opinion

A  Due-on-sale

B  Defeasance

C  Alienation

D  Acceleration

A  Agreement of the parties

B  Intention in placing item on land

C  Method of annexation

D  Adaptability of the item to the land’s use

A  A middle point between the two numbers

B  The smaller number

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 landlord against a holdover tenant.

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

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

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

B  When a party meets all terms of the contract

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  Affidavit from surveyor

B  Aerial photographs

C  Legal descriptions of both properties

D  Testimony from long-time neighbors

A  Six square feet

B  10 square feet

C  Three square feet

D  Nine square feet

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.

A  Fee simple

B  Qualified fee

C  Tenancy at will

D  Fee absolute

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

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

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

D  Someone who uses or purchases a product or service

A  Mutual

B  Ill-advised

C  Unlawful

D  Tenuous

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

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

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

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

A  Payable at an indefinite time

B  Include a “not to exceed” clause

C  Signed

D  On a government-issued form

A  Listing agent

B  Buyer’s agent

C  Escrow officer

D  Conservator

A  Transferability

B  Scarcity

C  Demand

D  Utility

A  Real Estate Settlement Procedures Act

B  ECOLA

C  The Equal Credit Opportunity Act

D  The Community Reinvestment Act

A  Limited agent

B  Universal agent

C  Single agent

D  General agent

A  The wrong color for her new house

B  A fixture

C  Too heavy

D  An improvement

A  The building plan

B  A blueprint

C  A survey

D  A written narrative of the building plan

A  Time-share

B  Condominium project

C  Planned development

D  Stock cooperative project

A  the transaction has closed.

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

C  the former client is found guilty of fraud.

D  it will help another client.

A  Community Reinvestment Act

B  Truth in Lending Act

C  RESPA

D  Equal Credit Opportunity Act

A  Conveyance

B  Contract

C  Covenant

D  Clairvoyance

A  30 years old

B  25 years old

C  15 years old

D  20 years old

A  19.58%

B  18.96%

C  25.58%

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  Reasonable skill and care

C  Disclosure

D  Obedience

A  $1,093.13

B  $901

C  $1,126.25

D  $874.50

A  Moratorium

B  Bulk

C  Aesthetic

D  Rural

A  Micah may lose the client’s business.

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

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

D  Micah’s commission may be at risk.

A  $792.54

B  $3,113.46

C  $1,997.62

D  $604.95

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

B  The agreement terminates by force of law.

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

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

A  $2,400

B  $3,200

C  $2,475

D  $2,450

A  External depreciation

B  Physical depreciation

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

D  Functional obsolescence

A  A potential bonus from the buyer

B  Implied friendship

C  Implied agency and undisclosed dual agency

D  Undisclosed single agency

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

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 only required on leases exceeding one year.

A  Purchase title insurance.

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

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

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

A  Representing the buyer’s interests

B  Advocating for the seller

C  Negotiating for the seller

D  Reviewing transactional documents with the seller

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

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

C  Sign an affidavit of proforma

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

A  Civil Rights Act of 1866

B  Housing and Community Development Act of 1974

C  Equal Credit Opportunity Act of 1974

D  Civil Rights Act of 1968

A  1,760

B  640

C  43,560

D  5,280

A  Indefinitely

B  Zero years (commercial properties cannot be depreciated)

C  39 years

D  27.5 years

A  Net lease

B  Percentage lease

C  Sublease

D  Gross lease

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

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

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

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

A  $500

B  $5,000

C  $21,780

D  $43,560

A  Spot zoning

B  Aesthetic zoning

C  Incentive zoning

D  Downzoning

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

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

A  8%

B  7.50%

C  12.50%

D  9%

A  A payment of less than $10,000

B  A payment of more than $10,000

C  Gifting a house to a family member

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

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

B  Yes, agency disclosure is required for lease transactions.

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

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

A  Alternative living arrangements

B  Notice

C  Compensation

D  Sympathy

A  $4,620

B  $231

C  $462

D  $2,310

A  File a notice of completion.

B  Require the contractor obtain a payment bond.

C  Nothing. There is no defense against unpaid subcontractors.

D  File a lien release.

A  Co-ownership

B  Property partnership

C  Dual ownership

D  Estate by severalty

A  A legal notice that a lawsuit is pending that affects the title of a property

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

C  A legal term that means “it depends” and requires a certain minimum sales price of the property.

D  A notice that notifies potential buyers of a pending lease

A  The amount of the lien

B  The date it is recorded

C  The date the lien is to be paid off

D  The lien holder

A  Mortgage lien

B  Judgment lien

C  Lis pendens

D  Foreclosure action

A  $1,069.77

B  $1,064.7

C  $1,050

D  $,1055

A  Clairvoyance and contract

B  Concession and contract

C  Conveyance and concession

D  Conveyance and contract

A  Traditional planning

B  Pocket planning

C  Form-based planning

D  Integrated planning

A  Natural scents

B  VOCs

C  BPA

D  PCBs

A  Mobilehome Residency Law

B  RV Park Occupancy Law

C  Mobilehome Rent Law

D  Mobilehome Landlord-Tenant Relations

A  Substitution

B  Contribution

C  Anticipation

D  Conformity

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

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

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 lending bank’s main office.

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 recorder’s office in the county where the property is located.

A  Each company a uses a slightly different scoring system

B  Scoring is consistent across the three companies

C  Each company posts the borrower’s FICO® Score

D  The higher the score, the higher the credit risk

A  The property may float away.

B  Lenders will not approve a loan.

C  The property will never sell.

D  Flood insurance may be required.

A  Her bank foreclosed on the loan.

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

A  Divide the top number by the bottom number.

B  Divide the smaller number by the larger 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.

A  Seller agency

B  Single-licensee dual agency

C  Dual-licensee dual agency

D  Buyer agency

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

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

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

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

A  Investors can take a business deduction for annual depreciation.

B  The asset is worth more because of capital improvements.

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

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

A  Earnest money

B  Consideration

C  Profit

D  Attorney review

A  The listing agreement is terminated by force of law.

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

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

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  Dedication

B  Alienation

C  Accession

D  Reliction

A  The buyer

B  Both the buyer and seller

C  The seller

D  Neither the buyer nor seller

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

B  The roof leaks when it rains.

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

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

A  The Freedom of Information Act

B  The SPEECH Act

C  The Sarbanes-Oxley Act

D  The First Amendment

A  National Association of Appraisers (NAA) bylaws

B  NAR Code of Ethics

C  Real estate license law

D  Uniform Standards of Professional Appraisal Practice (USPAP)

A  Grantee

B  Grantor

C  Witness

D  Notary public

A  Issues real estate licenses

B  Determines real estate policy and issues regulations to enforce law

C  Values real property in California

D  Discusses real estate policy and makes recommendations to the Commissioner

A  Whether his uncle would like this

B  The state of his local housing market

C  Whether he will incur a prepayment penalty

D  A second mortgage

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

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

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

D  Laugh and throw the Loan Estimate in the trash.

A  Valid

B  Voidable

C  Fraud

D  Void

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

B  Receive payment for managing real estate.

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

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