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 4522
B 4523
C 4525
D 4524
Question #2
A The risk that the property has a bad location
B The risk that the required return on investor capital will not be met
C The risk that an investor cannot secure financing at an affordable rate
D The risk that is directly related to leverage
Question #3
A Very few licensees are selected; it’s highly competitive.
B Being a new licensee is a distinct advantage.
C You are interviewing the broker as much as the broker is interviewing you.
D Most brokers prefer not to hire new licensees.
Question #4
A Waive appraisal
B A quick closing
C An escalation clause
D Full price or over full price
Question #5
A Client
B Seller
C Customer
D Buyer
Question #6
A “You won’t owe as much commission if we work under an agreement.”
B “Buyer representation agreements don’t obligate you in any way.”
C “All buyers are required to sign buyer representation agreements.”
D “Without a written representation agreement, I don’t represent you.”
Question #7
A Robert is a dual agent
B Robert is breaching his fiduciary duty
C Robert must also be an attorney
D Robert is in violation of agency law
Question #8
A The seller hires a contractor to repair holes in the wall and informs the buyer that the contractor never provided a receipt.
B 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.
C The seller hires a contractor to repair holes in the wall starting the day the buyer is scheduled to verify final condition.
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 there’s no end date
C One in which the price is negotiable within a specified range
D One in which anyone can find the buyer, but the listing agent still gets paid
Question #10
A Net listing
B Exclusive right to sell
C Exclusive agency
D Exclusive right to collect commission
Question #11
A Criminal attorneys
B Divorce attorneys
C Home inspectors
D Game wardens
Question #12
A Buy display advertising
B Send a mailer
C Join a team
D Spend more than usual on marketing campaigns
Question #13
A Personal photo
B License number and responsible broker’s identity
C City and state where the brokerage is located and jurisdiction
D Personal contact number
Question #14
A Multiple listing clause
B Broadcast clause
C Provisionary clause
D Marketing clause
Question #15
A A buyer has made an offer below list price and the seller is willing to take that offer.
B The seller wishes to lower the list price to encourage more offers.
C The seller wants to raise the list price after receiving no offers.
D The seller wants to move up the expiration date because the property sold right away.
Question #16
A Healthcare
B Retail
C Manufacturing
D Leisure
Question #17
A Federal regulations require that REOs be sold below market value.
B There are no agent commissions to pay for REO transactions.
C There are special government financing programs for purchasing REOs.
D Lenders and their shareholders don’t like to keep properties on their books longer than necessary.
Question #18
A The asset is worth less because the economy took a downturn.
B The asset is worth more because of capital improvements.
C The owner/investor is making less income from the property than previously.
D Investors can take a business deduction for annual depreciation.
Question #19
A A second round of mediation
B Arbitration
C Condemnation
D Litigation
Question #20
A They require no down payment.
B Because they’re rare, and therefore valuable.
C They’re always in demand.
D They need somewhere to live.
Question #21
A Weekly
B Quarterly
C Yearly
D Monthly
Question #22
A Including the brokerage name and main phone number, in addition to a licensee’s own name and phone number on an advertisement
B Making a reasonable effort to ensure all parties to a written agreement have a copy of the agreement
C Preparing a written agreement that falsely states a purchase price
D Preparing a written agreement that accurately states a purchase price
Question #23
A The parties may choose to negotiate the difference.
B A new appraisal will always be ordered.
C The buyer will be forced to terminate the contract immediately.
D The seller must reduce the price to the appraised value.
Question #24
A It does not contain laws
B Laws related to the sale of securities
C Laws related to theft and other crimes
D Laws related to real property contracts, such as contract of sale or land installment contracts
Question #25
A $48,000
B $36,000
C $3,000
D $24,000
Question #26
A Are relatively rare, so tenants compete for available units
B Are relatively liquid
C Require a larger down payment, so there is less to finance
D Are larger properties
Question #27
A The closer one, because he can meet clients at the office easier.
B The commuting one, because he will spend most of his time in the field.
C The commuting one, because most business is conducted in the car.
D The closer one, because gas is expensive.
Question #28
A They were hoping for window air conditioning.
B The unit may need to be replaced.
C Central air conditioning isn’t a sustainable technology.
D Older units are bigger and more unsightly.
Question #29
A The difference between usable square footage and rentable square footage
B Vacant units
C Stairwells and lobbies
D Bathrooms and hallways
Question #30
A With material defects
B As-is
C Under warranty
D By default
Question #31
A Michael is allowed to prepare an advertisement which states, “Home for sale, $140,000. No Hispanics.”
B Michael may inform Felicity of fair housing laws.
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 California Department of Real Estate Commissioner
B The Federal Bureau of Investigation
C The Central Intelligence Agency
D The Internal Revenue Service
Question #33
A Escrow and Title
B Other Costs
C Inspections, Reports, and Certificates
D Government Requirements and Retrofit
Question #34
A Three
B 30
C 10
D 21
Question #35
A No, this is how agents work with buyers.
B Yes, because she should meet them in person before working for them.
C Yes, because this constitutes the illegal practice of real estate.
D No, this is how all agents work.
Question #36
A That 70% of renters will leave in the first two years
B They must receive 70% return on their investment
C That 70% of their income will go toward expenses
D The purchase price shouldn’t be more than 70% of the repaired value
Question #37
A In an interest-bearing account
B In the firm’s general business account, with a ledger entry for the client’s name, labeled “trust fund”
C In the firm’s safe or safety deposit box until closing
D In a trust fund account or neutral escrow
Question #38
A Inform the seller
B Terminate her agency relationship
C Say nothing
D Inform all parties to the transaction
Question #39
A Financial
B Leverage
C Business
D Capital
Question #40
A Modification of Terms
B Cancellation of Listing
C Seller Instruction to Exclude from the MLS
D Termination of Buyer Agency
Question #41
A Prepare advertising for social media and local newspapers
B Advertise the listing on the MLS
C Fully inform the seller about the dangers of reduced market exposure
D Negotiate a higher commission, as there is a greater burden on the agent to find a buyer
Question #42
A More amenities
B Closer to parking
C Rooms open to interior of the building
D Nothing
Question #43
A 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.
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 tenant who has poor credit and unstable employment history.
D An owner refuses to sell a house to a same-sex couple that offered less than the asking price.
Question #44
A Laura will be put on a three-month probation.
B Laura must stay with Bill for at least two years before she transfers brokerages.
C Laura likely won’t get a salary for six weeks.
D Laura may leave the brokerage and join another at any time.
Question #45
A Work a regular work week (Monday through Friday, 9 a.m. to 5 p.m.).
B Try to be all things to all people.
C Seek out a broker who does a lot of business.
D Work hard and stick with it.
Question #46
A Monica should purchase Brian’s property.
B Monica should not be the listing agent for her friend.
C Monica should tell all prospective buyers that the seller has HIV.
D Monica cannot tell others about Brian’s HIV status.
Question #47
A Effective gross income
B An operating statement
C Potential gross income
D Net operating income
Question #48
A Dynamic
B Static
C Cold
D Hot
Question #49
A Escrow is bonded
B Escrow is FDIC insured.
C Escrow can’t disburse the money without your signature
D My company will cover any losses
Question #50
A 2048
B 2029
C 2039
D 2019
Question #51
A Thursday, August 1
B Friday, August 2
C Wednesday, July 31
D Saturday, August 3
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 They don’t want to seem pushy.
D Their brokers don’t want them marketing to that audience.
Question #53
A Present the offer to the seller and tell him you have another potential buyer who wants to see the property next week.
B Tell the buyer’s agent that the sellers aren’t reviewing offers until next week.
C Present the offer to the seller right away and don’t mention the other potential buyer.
D Hold on to the offer until after your buyer sees the property.
Question #54
A Foreign Real Estate Tax Withholding Act (FRETWA)
B Foreign Investment in Real Estate Property Tax Act (FIRPTA)
C Tax Withholding for Foreign Holding Act (TWFHA)
D Foreign Investor Real Estate Investment Tax (FIRE-IT)
Question #55
A Move in more quickly
B Spot the high-value items
C Identify furniture they want to purchase from the sellers
D Imagine themselves in the home
Question #56
A Maintaining the documents in the brokerage files for at least five years from the closing date
B Sending a copy of the agreement to DRE
C Destroying all documents carrying a client signature in a manner approved by DRE
D Giving a copy of the agreement to her client after it’s signed
Question #57
A Documents that must be submitted to the DRE
B Documents that must be stored electronically
C Records that must be provided to clients upon request
D Records that must be held for at least three years
Question #58
A Sufficient cooling and heating
B Access to restrooms
C Improved acoustics
D Carpeted halls and stairways
Question #59
A To get the client better deals on settlement costs
B To get the client better deals on title insurance
C To get referrals to other investors
D To get leads on available properties
Question #60
A Yes, but only if his taxes remain unpaid for five years.
B No, California law prohibits foreclosure for a tax lien.
C Yes, they can foreclose immediately.
D No, a property tax lien doesn’t give the lien holder the power of sale.
Question #61
A Ask Jerry to verbally disclose material defects to potential buyers
B Show the issues that she noted to a home inspector, if the buyer uses one
C Ask Jerry to repair the issues that she found
D Use the proper disclosure forms
Question #62
A 10
B 11
C Nine
D 20
Question #63
A Handyman companies
B “Subject to court approval” listings in the MLS
C Home decorator conventions
D Door-to-door in low-income neighborhoods
Question #64
A “When you’re buying your next home, the transfer will trigger a reassessment for property tax purposes.”
B “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.”
C “Your title will reveal any tax liens, so the title company will review it to ensure that isn’t an encumbrance.”
D “Property taxes are prorated so you’ll only pay for the time you owned the property.”
Question #65
A Interview other new licensees
B Call the Better Business Bureau
C Interview several managing brokers
D Request an income guarantee
Question #66
A She should use store credit instead of her credit card to purchase the furniture since the interest rate is probably lower.
B She should wait until after she closes on the home and then use a home equity line of credit to make her furniture purchases.
C It’s important to avoid spending money on non-essentials or adding to her debt load prior to closing on the loan.
D She should use money from her savings account to make the purchase instead of using her credit card.
Question #67
A Reject the offers and put the home back on the market for the amount of the highest offer.
B Have all buyers submit their “highest and best” offer, then help the seller decide which offer is most appealing.
C Leave it on the market for another three days to allow time for even more offers to come in.
D Accept a middle-of-the-road offer, but on the condition that no home inspection repairs will be performed.
Question #68
A The Federal Trade Commission Act
B Licensing laws
C Fair housing laws
D The Sherman Antitrust Act
Question #69
A Capital
B Dynamic
C Static
D Environmental
Question #70
A Retiree
B Trade-down buyer
C Trade-up buyer
D First-time buyer
Question #71
A At least one photo
B The seller’s contact information
C The seller’s bottom-line sales price
D A relatively vague description, so people want to come and see the details
Question #72
A Trading international currency
B A comparison of before-tax cash flow to cash invested
C Making money hand over fist
D Net income after taxes are deducted
Question #73
A Giving the letter to at least 20 neighbors
B Listing the property on the MLS
C Ensuring that the letter was given to neighbors on both sides of the street
D Providing the letter in multiple languages for non-English speakers
Question #74
A One year
B Five years
C Three years
D 10 years
Question #75
A Mortgage
B Balance
C Debit
D Credit
Question #76
A Broker
B Property manager
C Buyer
D Owner
Question #77
A It is voidable, because Jesse probably signed it under duress.
B It is void because it is not for a lawful purpose.
C It is voidable, because the consideration, as a percentage rather than a dollar amount, is not clearly stated.
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 You won’t need to check their credit if they’ve qualified for a home in the past.
C If they don’t, they’re probably wasting your time.
D Their current home might be a potential listing for you.
Question #79
A No, Yolanda can take legal action against the buyers at any time while she still owns the property.
B Yes, the buyer can only take legal action within six months of taking possession of the property.
C Yes, Yolanda should have canceled the contract within three days of receiving seller disclosures.
D No, Yolanda can take legal action at any time within two years after taking possession of the property.
Question #80
A Confidentiality
B Accounting
C Reasonable skill and care
D Disclosure
Question #81
A WNBA
B FDIC
C NAIC
D AARP
Question #82
A Frozen
B Eliminated
C Reallocated
D Disbursed
Question #83
A You should provide an inspection report to all prospects, along with seller disclosures.
B You should disclose any adverse material facts, but you don’t have to provide the report.
C You should provide an inspection report, but only if specifically asked.
D You should ask the buyers who walked away whether you can provide a copy.
Question #84
A Have you ever been convicted of any felonies?
B What is your tax bracket?
C What is your income?
D Are you currently working with any other agents?
Question #85
A Trust funds
B Non-trust funds
C Commission
D Revenue
Question #86
A “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.”
B “My listing agreements are generally 90-day contracts.”
C “My contract length is non-negotiable.”
D “The MLS requires us to have at least 90-day listings.”
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 Business
B Capital
C Financial
D Leverage
Question #89
A Depreciate
B Subtract
C Add
D Deduct
Question #90
A 1978
B 1945
C 1960
D 1900
Question #91
A The group seems bent on creating a tie-in arrangement
B She needs to get to work developing this model for herself
C This conversation seems to be turning into a discussion of market allocation
D This conversation sounds like it might become an antitrust violation
Question #92
A Documentation
B Conversion
C Earned interest
D Commingling
Question #93
A No, agents cannot accept commissions from immediate family.
B No, the commission must go through the agent’s broker.
C No, the commission must go through the escrow company first.
D Yes, because she’s a close relative.
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 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.
C Carma agrees to list Tera’s property for free if Tera signs an agreement to purchase her new home through Carma.
D 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.
Question #95
A Unintentional misrepresentation
B Negligent misrepresentation
C Fraud
D Puffery
Question #96
A Tying
B Fair housing
C Rule of reason
D Per se
Question #97
A At the closing
B The day after closing on the property to ensure proper transfer of title
C Weeks prior to closing
D The day prior to closing
Question #98
A The seller is solely responsible.
B Both seller and broker are responsible.
C The responsibility lies solely with the listing agent and brokerage.
D The listing agreement does not account for responsibility in this area.
Question #99
A Maximum listing service
B Multiple listing service
C Market listing service
D Membership listing service
Question #100
A Honesty and obedience
B Honesty and fairness
C Obedience and loyalty
D Fairness and loyalty