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Below are the questions for the exam with the choices of answers:
Question #1
A 20
B 19
C 18
D 21
Question #2
A Contacts a mortgage broker to find out what first-time homebuyer programs are available
B Performs a CMA for an acquaintance and provides advice on setting a listing price based on other comparable properties in the area
C Speaks to a local civic club about the homebuying process
D Gives her neighbor a tour of another neighborhood home that’s on the market
Question #3
A 640 miles
B 640 square feet
C 640 acres
D One acre
Question #4
A Prior to 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 At loan application or within three days after loan application
Question #5
A The landlord is her business partner.
B Fiona is hoping to purchase the building at a later date.
C Fiona wants to reduce her base rent.
D Fiona wants to demonstrate how viable her business is.
Question #6
A The primary market regulates the secondary market.
B The secondary market packages loans to sell to the primary market.
C The secondary market regulates the primary market.
D The primary market packages loans to sell to the secondary market.
Question #7
A A rental agent only has “agency” with landlords, so only landlords must be provided with the disclosure.
B Agency disclosure is not required if a licensee represents both the tenant and the landlord.
C Agency disclosure is required for buyers and sellers, but not tenants or landlords.
D Agency disclosure is required for both landlords and tenants.
Question #8
A It causes premature birth.
B It causes dementia if levels of exposure are high.
C It causes a skin rash.
D It can cause serious lung disease and cancer.
Question #9
A A north-south line used as a reference point in the rectangular government survey system
B The center-most township identified 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
Question #10
A The property can be a primary or secondary residence.
B The property must be located in California.
C The property must be at least five acres.
D The property can be a mobile or manufactured home.
Question #11
A Covenant
B Grant
C License
D Easement
Question #12
A Scarcity
B Area preference
C Permanence
D Improvements
Question #13
A Putting the client’s interest first
B Carrying out a client’s instructions without question
C Keeping a client’s confidential information confidential
D Never questioning a client’s opinion
Question #14
A Due-on-sale
B Defeasance
C Alienation
D Acceleration
Question #15
A Intention in placing item on land
B Method of annexation
C Agreement of the parties
D Adaptability of the item to the land’s use
Question #16
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
Question #17
A A lawsuit filed by a tenant when the security deposit is withheld unlawfully.
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 landlord to regain possession of an improvement to property.
Question #18
A When a party rejects all terms of the contract
B When a party does some, but not all, of what the party has agreed to do
C When a party meets all terms of the contract
D When a party acknowledges receipt of the contract
Question #19
A A judgment lien
B A mortgage
C Created by a court of common law; doesn’t give the right to possession of the property
D Created by law and gives right of possession
Question #20
A Legal descriptions of both properties
B Testimony from long-time neighbors
C Aerial photographs
D Affidavit from surveyor
Question #21
A Six square feet
B Nine square feet
C Three square feet
D 10 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 negatively 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 positively impact the demand for large, single-family homes.
Question #23
A Fee absolute
B Qualified fee
C Fee simple
D Tenancy at will
Question #24
A Someone who is involved in a transaction but represents neither party
B Someone who’s hired to act on behalf of a client
C Someone who uses or purchases a product or service
D Someone who’s in a position of trust and loyalty
Question #25
A Unlawful
B Ill-advised
C Mutual
D Tenuous
Question #26
A Coach the buyer on how to negotiate the terms of the sales contract to be completely in the buyer’s favor
B Review transaction documents with the buyer, clarifying anything that could be confusing, without stepping outside the scope of your license
C Explain to the buyer why it’s unnecessary to have a professional inspection done on a new home
D Show properties the buyer might qualify for if he would put down more earnest money
Question #27
A Signed
B Include a “not to exceed” clause
C Payable at an indefinite time
D On a government-issued form
Question #28
A Listing agent
B Buyer’s agent
C Escrow officer
D Conservator
Question #29
A Transferability
B Demand
C Scarcity
D Utility
Question #30
A ECOLA
B Real Estate Settlement Procedures Act
C The Equal Credit Opportunity Act
D The Community Reinvestment Act
Question #31
A Universal agent
B General agent
C Limited agent
D Single agent
Question #32
A A fixture
B The wrong color for her new house
C Too heavy
D An improvement
Question #33
A The building plan
B A written narrative of the building plan
C A blueprint
D A survey
Question #34
A Condominium project
B Stock cooperative project
C Time-share
D Planned development
Question #35
A he former client has moved out-of-state.
B it will help another client.
C the transaction has closed.
D the former client is found guilty of fraud.
Question #36
A RESPA
B Community Reinvestment Act
C Truth in Lending Act
D Equal Credit Opportunity Act
Question #37
A Covenant
B Conveyance
C Clairvoyance
D Contract
Question #38
A 25 years old
B 30 years old
C 15 years old
D 20 years old
Question #39
A 25.58%
B 19.58%
C 14.51%
D 18.96%
Question #40
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
Question #41
A Reasonable skill and care
B Confidentiality
C Disclosure
D Obedience
Question #42
A $1,126.25
B $1,093.13
C $901
D $874.50
Question #43
A Aesthetic
B Moratorium
C Rural
D Bulk
Question #44
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.
Question #45
A $1,997.62
B $604.95
C $792.54
D $3,113.46
Question #46
A The agreement terminates by force of law.
B Jenson and Susan can mutually agree to terminate the agreement.
C It’s terminated once the specified term in the agency agreement expires.
D The client can revoke the agreement but may be considered in breach of contract.
Question #47
A $2,475
B $2,450
C $2,400
D $3,200
Question #48
A Functional obsolescence
B None. Depreciation doesn’t apply to new buildings.
C External depreciation
D Physical depreciation
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 Yes, agency disclosure is 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 No, agency disclosure is not required on sales of residential properties with one to four units.
Question #51
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.
Question #52
A Representing the buyer’s interests
B Advocating for the seller
C Reviewing transactional documents with the seller
D Negotiating for the seller
Question #53
A Sign an affidavit of proforma
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 Dedicate a certain percentage of the land to the state of California
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 Civil Rights Act of 1968
C Equal Credit Opportunity Act of 1974
D Civil Rights Act of 1866
Question #55
A 43,560
B 1,760
C 5,280
D 640
Question #56
A Indefinitely
B Zero years (commercial properties cannot be depreciated)
C 39 years
D 27.5 years
Question #57
A Sublease
B Net lease
C Gross lease
D Percentage lease
Question #58
A The seller should harvest the beans before the sale closes.
B The buyer should assume the crop transfers with the property.
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 $21,780
B $43,560
C $5,000
D $500
Question #60
A Incentive zoning
B Downzoning
C Aesthetic zoning
D Spot zoning
Question #61
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.
Question #62
A 7.50%
B 8%
C 9%
D 12.50%
Question #63
A Earnest money paid with a cashier’s check or wire transfer
B Gifting a house to a family member
C A payment of more than $10,000
D A payment of less than $10,000
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 Compensation
B Notice
C Alternative living arrangements
D Sympathy
Question #66
A $2,310
B $231
C $462
D $4,620
Question #67
A File a lien release.
B File a notice of completion.
C Nothing. There is no defense against unpaid subcontractors.
D Require the contractor obtain a payment bond.
Question #68
A Dual ownership
B Estate by severalty
C Co-ownership
D Property partnership
Question #69
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 notice that notifies potential buyers of a pending lease
D A legal term that means “it depends” and requires a certain minimum sales price of the property.
Question #70
A The amount of the lien
B The date it is recorded
C The lien holder
D The date the lien is to be paid off
Question #71
A Foreclosure action
B Lis pendens
C Judgment lien
D Mortgage lien
Question #72
A $1,050
B $,1055
C $1,069.77
D $1,064.7
Question #73
A Clairvoyance and contract
B Conveyance and concession
C Concession and contract
D Conveyance and contract
Question #74
A Form-based planning
B Pocket planning
C Traditional planning
D Integrated planning
Question #75
A BPA
B VOCs
C PCBs
D Natural scents
Question #76
A Mobilehome Landlord-Tenant Relations
B Mobilehome Residency Law
C RV Park Occupancy Law
D Mobilehome Rent Law
Question #77
A Conformity
B Substitution
C Contribution
D Anticipation
Question #78
A 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.
B 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.
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.
Question #79
A They’re recorded at the real estate brokerage’s main office.
B They’re recorded at the lending bank’s main office.
C They’re recorded at the recorder’s office in the county where the property is located.
D Mortgages are not recorded; only deeds are.
Question #80
A Scoring is consistent across the three companies
B Each company posts the borrower’s FICO® Score
C Each company a uses a slightly different scoring system
D The higher the score, the higher the credit risk
Question #81
A Flood insurance may be required.
B Lenders will not approve a loan.
C The property will never sell.
D The property may float away.
Question #82
A She sold the loan on the primary market for a lower interest rate.
B Her bank foreclosed on the loan.
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 right two spots and add a percent symbol.
C Divide the smaller number by the larger number.
D Move the decimal point two places to the left and remove the percent symbol.
Question #84
A Seller agency
B Single-licensee dual agency
C Buyer agency
D Dual-licensee dual agency
Question #85
A It states that all real property sales must involve lawyers.
B It puts a limit on how much interest financial institutions can charge.
C It provides requirements that contracts have to meet to be legally enforceable.
D It doesn’t allow people to own land unless they can afford it.
Question #86
A The asset is worth more because of capital improvements.
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 less because the economy took a downturn.
Question #87
A Consideration
B Earnest money
C Profit
D Attorney review
Question #88
A It’s still valid; Rex’s family must abide by it.
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 The listing agreement is terminated by force of law.
Question #89
A The owner of the empty lot down the street that Elizabeth uses as a vegetable garden with the owner’s permission
B The resident of the adjoining property to whom Elizabeth has given permission to store some items in her gardening shed
C The neighbor who constructed his new backyard fence six inches across Elizabeth’s property line
D The utility company that needs to access the power line that crosses a corner of Elizabeth’s land
Question #90
A Reliction
B Accession
C Dedication
D Alienation
Question #91
A Neither the buyer nor seller
B The seller
C The buyer
D Both the buyer and 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 SPEECH Act
B The First Amendment
C The Freedom of Information Act
D The Sarbanes-Oxley Act
Question #94
A Uniform Standards of Professional Appraisal Practice (USPAP)
B NAR Code of Ethics
C Real estate license law
D National Association of Appraisers (NAA) bylaws
Question #95
A Notary public
B Grantee
C Grantor
D Witness
Question #96
A Determines real estate policy and issues regulations to enforce law
B Values real property in California
C Issues real estate licenses
D Discusses real estate policy and makes recommendations to the Commissioner
Question #97
A The state of his local housing market
B A second mortgage
C Whether he will incur a prepayment penalty
D Whether his uncle would like this
Question #98
A Laugh and throw the Loan Estimate in the trash.
B Ask the lender if there are other options available that would not involve a prepayment penalty.
C Resolve to not try to pay the loan off early.
D Check with his real estate agent to make sure that the penalty shown is typical.
Question #99
A Valid
B Voidable
C Void
D Fraud
Question #100
A Negotiate the sale of a house for two friends and receive a tip as thanks.
B Give advice to a friend who is negotiating the purchase of a house.
C Receive payment for managing real estate.
D List a friend or family member’s home for sale for a fee.