Practice Exam Sales License

A  19

B  21

C  18

D  20

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

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

A  One acre

B  640 square feet

C  640 acres

D  640 miles

A  Prior to or within 10 days after the loan application

B  Prior to or within three days after the loan application

C  At loan application or within three days after loan application

D  Prior to loan application

A  Fiona wants to demonstrate how viable her business is.

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

C  Fiona wants to reduce her base rent.

D  The landlord is her business partner.

A  The primary market packages loans to sell to the secondary market.

B  The secondary market packages loans to sell to the primary market.

C  The primary market regulates the secondary market.

D  The secondary market regulates the primary 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 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  Agency disclosure is required for both landlords and tenants.

A  It causes premature birth.

B  It causes dementia if levels of exposure are high.

C  It can cause serious lung disease and cancer.

D  It causes a skin rash.

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

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

C  The center-most township 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 primary or secondary residence.

B  The property must be at least five acres.

C  The property must be located in California.

D  The property can be a mobile or manufactured home.

A  Grant

B  Covenant

C  Easement

D  License

A  Scarcity

B  Permanence

C  Area preference

D  Improvements

A  Never questioning a client’s opinion

B  Keeping a client’s confidential information confidential

C  Carrying out a client’s instructions without question

D  Putting the client’s interest first

A  Due-on-sale

B  Acceleration

C  Alienation

D  Defeasance

A  Agreement of the parties

B  Intention in placing item on land

C  Adaptability of the item to the land’s use

D  Method of annexation

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

B  The smaller number

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

D  A middle point between the two numbers

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 against a holdover tenant.

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

A  When a party meets all terms of the contract

B  When a party rejects all terms of the contract

C  When a party acknowledges receipt of the contract

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

A  A judgment lien

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 mortgage

A  Aerial photographs

B  Affidavit from surveyor

C  Legal descriptions of both properties

D  Testimony from long-time neighbors

A  Six square feet

B  Nine square feet

C  Three square feet

D  10 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 increase in the number of retirees in a given population would negatively impact the demand for large, single-family homes.

D  An influx of higher wage earners to a given area would decrease the demand for higher-priced housing.

A  Tenancy at will

B  Fee absolute

C  Fee simple

D  Qualified fee

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 uses or purchases a product or service

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

A  Ill-advised

B  Tenuous

C  Unlawful

D  Mutual

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

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

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  Signed

C  On a government-issued form

D  Include a “not to exceed” clause

A  Listing agent

B  Conservator

C  Escrow officer

D  Buyer’s agent

A  Transferability

B  Demand

C  Utility

D  Scarcity

A  Real Estate Settlement Procedures Act

B  ECOLA

C  The Community Reinvestment Act

D  The Equal Credit Opportunity Act

A  Limited agent

B  General agent

C  Universal agent

D  Single agent

A  A fixture

B  Too heavy

C  An improvement

D  The wrong color for her new house

A  A written narrative of the building plan

B  The building plan

C  A blueprint

D  A survey

A  Planned development

B  Condominium project

C  Stock cooperative project

D  Time-share

A  it will help another client.

B  the transaction has closed.

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

D  the former client is found guilty of fraud.

A  Community Reinvestment Act

B  RESPA

C  Truth in Lending Act

D  Equal Credit Opportunity Act

A  Contract

B  Clairvoyance

C  Covenant

D  Conveyance

A  25 years old

B  30 years old

C  15 years old

D  20 years old

A  19.58%

B  14.51%

C  25.58%

D  18.96%

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

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 report this to California DRE only if the charge is related to theft

A  Obedience

B  Confidentiality

C  Disclosure

D  Reasonable skill and care

A  $901

B  $1,126.25

C  $874.50

D  $1,093.13

A  Bulk

B  Aesthetic

C  Moratorium

D  Rural

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 lose the client’s business.

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

A  $1,997.62

B  $604.95

C  $3,113.46

D  $792.54

A  The agreement terminates by force of law.

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

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

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

A  $3,200

B  $2,400

C  $2,475

D  $2,450

A  External depreciation

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

C  Functional obsolescence

D  Physical depreciation

A  Implied friendship

B  Undisclosed single agency

C  A potential bonus from the buyer

D  Implied agency and undisclosed dual agency

A  No, agency disclosure is only required on leases exceeding one year.

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  Yes, agency disclosure is required on sales of residential properties with one to four units.

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

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

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

D  Purchase title insurance.

A  Reviewing transactional documents with the seller

B  Representing the buyer’s interests

C  Negotiating for the seller

D  Advocating for the seller

A  Sign an affidavit of proforma

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

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  5,280

B  640

C  43,560

D  1,760

A  Zero years (commercial properties cannot be depreciated)

B  39 years

C  27.5 years

D  Indefinitely

A  Percentage lease

B  Net lease

C  Sublease

D  Gross lease

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

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

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

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

A  $5,000

B  $43,560

C  $21,780

D  $500

A  Incentive zoning

B  Aesthetic zoning

C  Downzoning

D  Spot zoning

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

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

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

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

A  12.50%

B  8%

C  9%

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 on sales of residential properties.

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

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

D  Yes, agency disclosure is required for lease transactions.

A  Alternative living arrangements

B  Sympathy

C  Notice

D  Compensation

A  $462

B  $2,310

C  $231

D  $4,620

A  File a lien release.

B  File a notice of completion.

C  Require the contractor obtain a payment bond.

D  Nothing. There is no defense against unpaid subcontractors.

A  Dual ownership

B  Estate by severalty

C  Co-ownership

D  Property partnership

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

B  A notice that notifies potential buyers of a pending lease

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

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

A  The lien holder

B  The date the lien is to be paid off

C  The amount of the lien

D  The date it is recorded

A  Foreclosure action

B  Lis pendens

C  Mortgage lien

D  Judgment lien

A  $1,069.77

B  $,1055

C  $1,050

D  $1,064.7

A  Conveyance and contract

B  Concession and contract

C  Conveyance and concession

D  Clairvoyance and contract

A  Form-based planning

B  Pocket planning

C  Integrated planning

D  Traditional planning

A  VOCs

B  Natural scents

C  BPA

D  PCBs

A  Mobilehome Landlord-Tenant Relations

B  RV Park Occupancy Law

C  Mobilehome Residency Law

D  Mobilehome Rent Law

A  Substitution

B  Contribution

C  Anticipation

D  Conformity

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

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.

A  The higher the score, the higher the credit risk

B  Each company a uses a slightly different scoring system

C  Scoring is consistent across the three companies

D  Each company posts the borrower’s FICO® Score

A  Flood insurance may be required.

B  The property will never sell.

C  Lenders will not approve a loan.

D  The property may float away.

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

B  Her bank foreclosed on the loan.

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

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

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

B  Divide the top number by the bottom number.

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

D  Divide the smaller number by the larger number.

A  Dual-licensee dual agency

B  Seller agency

C  Single-licensee dual agency

D  Buyer agency

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

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

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

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

A  The asset is worth more because of capital improvements.

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

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

D  Investors can take a business deduction for annual depreciation.

A  Consideration

B  Earnest money

C  Attorney review

D  Profit

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

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

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

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

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

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

A  Reliction

B  Alienation

C  Accession

D  Dedication

A  The buyer

B  Neither the buyer nor seller

C  Both the buyer and seller

D  The seller

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

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

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

D  The roof leaks when it rains.

A  The Sarbanes-Oxley Act

B  The First Amendment

C  The SPEECH Act

D  The Freedom of Information Act

A  Uniform Standards of Professional Appraisal Practice (USPAP)

B  NAR Code of Ethics

C  National Association of Appraisers (NAA) bylaws

D  Real estate license law

A  Notary public

B  Witness

C  Grantee

D  Grantor

A  Discusses real estate policy and makes recommendations to the Commissioner

B  Issues real estate licenses

C  Values real property in California

D  Determines real estate policy and issues regulations to enforce law

A  Whether he will incur a prepayment penalty

B  The state of his local housing market

C  A second mortgage

D  Whether his uncle would like this

A  Laugh and throw the Loan Estimate in the trash.

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

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

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

A  Fraud

B  Void

C  Voidable

D  Valid

A  Receive payment for managing real estate.

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

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

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