Practice Exam Sales License

A  20

B  18

C  21

D  19

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

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

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

D  Speaks to a local civic club about the homebuying process

A  One acre

B  640 acres

C  640 square feet

D  640 miles

A  Prior to or within three days after the loan application

B  Prior to or within 10 days after the loan application

C  Prior to loan application

D  At loan application or within three days after loan application

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

B  Fiona wants to reduce her base rent.

C  Fiona wants to demonstrate how viable her business is.

D  The landlord is her business partner.

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

B  The primary market regulates the secondary market.

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

D  The secondary market regulates the primary market.

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

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

C  Agency disclosure is required for both landlords and tenants.

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

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

A  The property must be located in California.

B  The property must be at least five acres.

C  The property can be a mobile or manufactured home.

D  The property can be a primary or secondary residence.

A  Easement

B  License

C  Covenant

D  Grant

A  Improvements

B  Area preference

C  Scarcity

D  Permanence

A  Carrying out a client’s instructions without question

B  Never questioning a client’s opinion

C  Putting the client’s interest first

D  Keeping a client’s confidential information confidential

A  Acceleration

B  Due-on-sale

C  Defeasance

D  Alienation

A  Intention in placing item on land

B  Agreement of the parties

C  Method of annexation

D  Adaptability of the item to the land’s use

A  The smaller number

B  A middle point between the two numbers

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 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 acknowledges receipt of the contract

C  When a party rejects all terms of the contract

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

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

B  A mortgage

C  Created by law and gives right of possession

D  A judgment lien

A  Aerial photographs

B  Affidavit from surveyor

C  Testimony from long-time neighbors

D  Legal descriptions of both properties

A  Nine square feet

B  Six square feet

C  10 square feet

D  Three square feet

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

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

A  Qualified fee

B  Tenancy at will

C  Fee simple

D  Fee absolute

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

B  Someone who uses or purchases a product or service

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

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

A  Tenuous

B  Mutual

C  Ill-advised

D  Unlawful

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

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

A  On a government-issued form

B  Payable at an indefinite time

C  Signed

D  Include a “not to exceed” clause

A  Conservator

B  Listing agent

C  Escrow officer

D  Buyer’s agent

A  Transferability

B  Scarcity

C  Utility

D  Demand

A  The Equal Credit Opportunity Act

B  Real Estate Settlement Procedures Act

C  The Community Reinvestment Act

D  ECOLA

A  Single agent

B  General agent

C  Limited agent

D  Universal agent

A  The wrong color for her new house

B  An improvement

C  A fixture

D  Too heavy

A  A written narrative of the building plan

B  The building plan

C  A survey

D  A blueprint

A  Condominium project

B  Stock cooperative project

C  Time-share

D  Planned development

A  it will help another client.

B  the former client is found guilty of fraud.

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

D  the transaction has closed.

A  Truth in Lending Act

B  Community Reinvestment Act

C  Equal Credit Opportunity Act

D  RESPA

A  Conveyance

B  Covenant

C  Contract

D  Clairvoyance

A  15 years old

B  25 years old

C  20 years old

D  30 years old

A  18.96%

B  19.58%

C  25.58%

D  14.51%

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

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

C  Must report this to California DRE under all circumstances

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

A  Obedience

B  Disclosure

C  Confidentiality

D  Reasonable skill and care

A  $1,126.25

B  $901

C  $874.50

D  $1,093.13

A  Rural

B  Moratorium

C  Bulk

D  Aesthetic

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

B  Micah may lose the client’s business.

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

D  Micah’s commission may be at risk.

A  $792.54

B  $1,997.62

C  $3,113.46

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  $3,200

B  $2,475

C  $2,450

D  $2,400

A  External depreciation

B  Functional obsolescence

C  Physical depreciation

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

A  Undisclosed single agency

B  Implied friendship

C  A potential bonus from the buyer

D  Implied agency and undisclosed dual agency

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

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

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

D  No, Damian does not provide the agency disclosure to his client. He only provides it to others involved in the transaction.

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

B  Purchase title insurance.

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

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

A  Advocating for the seller

B  Negotiating for the seller

C  Representing the buyer’s interests

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

C  Sign an affidavit of proforma

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

A  Equal Credit Opportunity Act of 1974

B  Civil Rights Act of 1866

C  Housing and Community Development Act of 1974

D  Civil Rights Act of 1968

A  1,760

B  640

C  43,560

D  5,280

A  Zero years (commercial properties cannot be depreciated)

B  39 years

C  Indefinitely

D  27.5 years

A  Sublease

B  Percentage lease

C  Net lease

D  Gross lease

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

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

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

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

A  $500

B  $21,780

C  $43,560

D  $5,000

A  Spot zoning

B  Aesthetic zoning

C  Downzoning

D  Incentive zoning

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

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

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  7.50%

B  8%

C  9%

D  12.50%

A  Gifting a house to a family member

B  A payment of less than $10,000

C  A payment of more than $10,000

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

A  Yes, agency disclosure is required for lease transactions.

B  No, agency disclosure is only required for commercial 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  Sympathy

B  Alternative living arrangements

C  Compensation

D  Notice

A  $231

B  $4,620

C  $2,310

D  $462

A  File a lien release.

B  Nothing. There is no defense against unpaid subcontractors.

C  File a notice of completion.

D  Require the contractor obtain a payment bond.

A  Property partnership

B  Co-ownership

C  Estate by severalty

D  Dual ownership

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 lien holder

B  The date it is recorded

C  The date the lien is to be paid off

D  The amount of the lien

A  Mortgage lien

B  Judgment lien

C  Foreclosure action

D  Lis pendens

A  $1,050

B  $,1055

C  $1,069.77

D  $1,064.7

A  Conveyance and contract

B  Concession and contract

C  Clairvoyance and contract

D  Conveyance and concession

A  Traditional planning

B  Form-based planning

C  Pocket planning

D  Integrated planning

A  VOCs

B  BPA

C  Natural scents

D  PCBs

A  Mobilehome Landlord-Tenant Relations

B  Mobilehome Residency Law

C  Mobilehome Rent Law

D  RV Park Occupancy Law

A  Substitution

B  Conformity

C  Anticipation

D  Contribution

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

C  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.

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  Mortgages are not recorded; only deeds are.

B  They’re recorded at the recorder’s office in the county where the property is located.

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

D  They’re recorded at the real estate brokerage’s main office.

A  Each company posts the borrower’s FICO® Score

B  Each company a uses a slightly different scoring system

C  The higher the score, the higher the credit risk

D  Scoring is consistent across the three companies

A  The property will never sell.

B  Lenders will not approve a loan.

C  Flood insurance may be required.

D  The property may float away.

A  Her bank foreclosed on the loan.

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

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

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

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

B  Divide the smaller number by the larger number.

C  Divide the top number by the bottom number.

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

A  Dual-licensee dual agency

B  Seller agency

C  Single-licensee dual agency

D  Buyer agency

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

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

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

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

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  The asset is worth more because of capital improvements.

D  Investors can take a business deduction for annual depreciation.

A  Profit

B  Consideration

C  Earnest money

D  Attorney review

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

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

C  The listing agreement is terminated by force of law.

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

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

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

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

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

A  Accession

B  Dedication

C  Reliction

D  Alienation

A  Both the buyer and seller

B  Neither the buyer nor seller

C  The buyer

D  The 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 Sarbanes-Oxley Act

B  The First Amendment

C  The SPEECH Act

D  The Freedom of Information Act

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  Witness

B  Notary public

C  Grantor

D  Grantee

A  Determines real estate policy and issues regulations to enforce law

B  Issues real estate licenses

C  Values real property in California

D  Discusses real estate policy and makes recommendations to the Commissioner

A  Whether he will incur a prepayment penalty

B  A second mortgage

C  Whether his uncle would like this

D  The state of his local housing market

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  Laugh and throw the Loan Estimate in the trash.

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

A  Fraud

B  Voidable

C  Valid

D  Void

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

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

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

D  Receive payment for managing real estate.