Navigation » List of Schools » The CE Shop » Sales License » CA Real Estate Principles Course » 2021 » Practice Exam Sales License
Below are the questions for the exam with the choices of answers:
Question #1
A 21
B 19
C 20
D 18
Question #2
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
Question #3
A 640 acres
B 640 square feet
C 640 miles
D One acre
Question #4
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
Question #5
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.
Question #6
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.
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 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.
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 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
Question #10
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.
Question #11
A Easement
B Covenant
C Grant
D License
Question #12
A Area preference
B Scarcity
C Improvements
D Permanence
Question #13
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
Question #14
A Due-on-sale
B Alienation
C Defeasance
D Acceleration
Question #15
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
Question #16
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
Question #17
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.
Question #18
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
Question #19
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
Question #20
A Affidavit from surveyor
B Legal descriptions of both properties
C Aerial photographs
D Testimony from long-time neighbors
Question #21
A Three square feet
B 10 square feet
C Nine square feet
D Six square feet
Question #22
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.
Question #23
A Fee absolute
B Tenancy at will
C Qualified fee
D Fee simple
Question #24
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
Question #25
A Unlawful
B Tenuous
C Mutual
D Ill-advised
Question #26
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
Question #27
A Payable at an indefinite time
B Include a “not to exceed” clause
C On a government-issued form
D Signed
Question #28
A Buyer’s agent
B Listing agent
C Escrow officer
D Conservator
Question #29
A Transferability
B Demand
C Scarcity
D Utility
Question #30
A The Community Reinvestment Act
B Real Estate Settlement Procedures Act
C The Equal Credit Opportunity Act
D ECOLA
Question #31
A General agent
B Single agent
C Limited agent
D Universal agent
Question #32
A The wrong color for her new house
B A fixture
C Too heavy
D An improvement
Question #33
A A written narrative of the building plan
B The building plan
C A blueprint
D A survey
Question #34
A Stock cooperative project
B Condominium project
C Time-share
D Planned development
Question #35
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.
Question #36
A Equal Credit Opportunity Act
B Truth in Lending Act
C RESPA
D Community Reinvestment Act
Question #37
A Clairvoyance
B Covenant
C Conveyance
D Contract
Question #38
A 25 years old
B 15 years old
C 20 years old
D 30 years old
Question #39
A 19.58%
B 14.51%
C 25.58%
D 18.96%
Question #40
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
Question #41
A Reasonable skill and care
B Disclosure
C Confidentiality
D Obedience
Question #42
A $1,093.13
B $1,126.25
C $901
D $874.50
Question #43
A Moratorium
B Bulk
C Rural
D Aesthetic
Question #44
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.
Question #45
A $3,113.46
B $1,997.62
C $792.54
D $604.95
Question #46
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.
Question #47
A $2,400
B $2,450
C $2,475
D $3,200
Question #48
A External depreciation
B Functional obsolescence
C Physical depreciation
D None. Depreciation doesn’t apply to new buildings.
Question #49
A A potential bonus from the buyer
B Undisclosed single agency
C Implied friendship
D Implied agency and undisclosed dual agency
Question #50
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.
Question #51
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.
Question #52
A Representing the buyer’s interests
B Reviewing transactional documents with the seller
C Advocating for the seller
D Negotiating for the seller
Question #53
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.
Question #54
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
Question #55
A 640
B 1,760
C 43,560
D 5,280
Question #56
A Indefinitely
B 39 years
C 27.5 years
D Zero years (commercial properties cannot be depreciated)
Question #57
A Net lease
B Percentage lease
C Gross lease
D Sublease
Question #58
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.
Question #59
A $43,560
B $5,000
C $500
D $21,780
Question #60
A Spot zoning
B Incentive zoning
C Downzoning
D Aesthetic zoning
Question #61
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.
Question #62
A 8%
B 9%
C 12.50%
D 7.50%
Question #63
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
Question #64
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.
Question #65
A Notice
B Sympathy
C Alternative living arrangements
D Compensation
Question #66
A $231
B $2,310
C $462
D $4,620
Question #67
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.
Question #68
A Co-ownership
B Estate by severalty
C Property partnership
D Dual ownership
Question #69
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
Question #70
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
Question #71
A Judgment lien
B Lis pendens
C Foreclosure action
D Mortgage lien
Question #72
A $1,050
B $1,064.7
C $,1055
D $1,069.77
Question #73
A Clairvoyance and contract
B Concession and contract
C Conveyance and contract
D Conveyance and concession
Question #74
A Traditional planning
B Pocket planning
C Integrated planning
D Form-based planning
Question #75
A PCBs
B VOCs
C Natural scents
D BPA
Question #76
A Mobilehome Rent Law
B Mobilehome Residency Law
C RV Park Occupancy Law
D Mobilehome Landlord-Tenant Relations
Question #77
A Conformity
B Contribution
C Anticipation
D Substitution
Question #78
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.
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 They’re recorded at the lending bank’s main office.
D Mortgages are not recorded; only deeds are.
Question #80
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
Question #81
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.
Question #82
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.
Question #83
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.
Question #84
A Buyer agency
B Single-licensee dual agency
C Dual-licensee dual agency
D Seller agency
Question #85
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.
Question #86
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.
Question #87
A Earnest money
B Profit
C Attorney review
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 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.
Question #89
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
Question #90
A Alienation
B Accession
C Dedication
D Reliction
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 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.
Question #93
A The First Amendment
B The Sarbanes-Oxley Act
C The Freedom of Information Act
D The SPEECH Act
Question #94
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
Question #95
A Witness
B Grantee
C Grantor
D Notary public
Question #96
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
Question #97
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
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 Laugh and throw the Loan Estimate in the trash.
D Resolve to not try to pay the loan off early.
Question #99
A Valid
B Void
C Voidable
D Fraud
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.