Practice Exam Sales License

A  18

B  20

C  19

D  21

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

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

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

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  At loan application or within three days after loan application

B  Prior to loan application

C  Prior to or within three days after the loan application

D  Prior to or within 10 days after the loan application

A  Fiona wants to demonstrate how viable her business is.

B  Fiona wants to reduce her base rent.

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

D  The landlord is her business partner.

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

B  The secondary market regulates the primary market.

C  The primary market regulates the secondary market.

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

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

B  Agency disclosure is not required if a licensee represents both the tenant and the landlord.

C  Agency disclosure is required for both landlords and tenants.

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

A  It causes dementia if levels of exposure are high.

B  It causes a skin rash.

C  It causes premature birth.

D  It can cause serious lung disease and cancer.

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 must be at least five acres.

B  The property can be a primary or secondary residence.

C  The property must be located in California.

D  The property can be a mobile or manufactured home.

A  Covenant

B  Easement

C  Grant

D  License

A  Area preference

B  Improvements

C  Permanence

D  Scarcity

A  Putting the client’s interest first

B  Never questioning a client’s opinion

C  Carrying out a client’s instructions without question

D  Keeping a client’s confidential information confidential

A  Alienation

B  Acceleration

C  Defeasance

D  Due-on-sale

A  Method of annexation

B  Intention in placing item on land

C  Agreement of the parties

D  Adaptability of the item to the land’s use

A  A middle point between the two numbers

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

C  The smaller number

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

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 landlord to regain possession of an improvement to property.

D  A lawsuit filed by a rental agent when the commission is not paid.

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  Created by law and gives right of possession

B  A mortgage

C  A judgment lien

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

A  Legal descriptions of both properties

B  Testimony from long-time neighbors

C  Affidavit from surveyor

D  Aerial photographs

A  Nine square feet

B  10 square feet

C  Three square feet

D  Six square feet

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

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

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  Fee simple

B  Tenancy at will

C  Fee absolute

D  Qualified fee

A  Someone who uses or purchases a product or service

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

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  Ill-advised

C  Mutual

D  Unlawful

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

D  Coach the buyer on how to negotiate the terms of the sales contract to be completely in the buyer’s favor

A  On a government-issued form

B  Payable at an indefinite time

C  Signed

D  Include a “not to exceed” clause

A  Conservator

B  Buyer’s agent

C  Listing agent

D  Escrow officer

A  Demand

B  Scarcity

C  Utility

D  Transferability

A  The Equal Credit Opportunity Act

B  Real Estate Settlement Procedures Act

C  ECOLA

D  The Community Reinvestment Act

A  General agent

B  Single agent

C  Universal agent

D  Limited agent

A  Too heavy

B  The wrong color for her new house

C  A fixture

D  An improvement

A  The building plan

B  A survey

C  A blueprint

D  A written narrative of the building plan

A  Stock cooperative project

B  Condominium project

C  Planned development

D  Time-share

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

B  the transaction has closed.

C  it will help another client.

D  the former client is found guilty of fraud.

A  Truth in Lending Act

B  RESPA

C  Community Reinvestment Act

D  Equal Credit Opportunity Act

A  Conveyance

B  Clairvoyance

C  Covenant

D  Contract

A  30 years old

B  20 years old

C  25 years old

D  15 years old

A  14.51%

B  18.96%

C  25.58%

D  19.58%

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

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

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  Reasonable skill and care

B  Disclosure

C  Confidentiality

D  Obedience

A  $1,126.25

B  $1,093.13

C  $901

D  $874.50

A  Bulk

B  Aesthetic

C  Moratorium

D  Rural

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

B  Micah’s commission may be at risk.

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

D  Micah may lose the client’s business.

A  $3,113.46

B  $604.95

C  $1,997.62

D  $792.54

A  The agreement terminates by force of law.

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

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

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

A  $2,450

B  $2,400

C  $3,200

D  $2,475

A  Functional obsolescence

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

C  Physical depreciation

D  External depreciation

A  A potential bonus from the buyer

B  Implied agency and undisclosed dual agency

C  Implied friendship

D  Undisclosed single agency

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.

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

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

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

D  Purchase title insurance.

A  Negotiating for the seller

B  Representing the buyer’s interests

C  Reviewing transactional documents with the seller

D  Advocating for the seller

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

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  They must have a disclaimer that the property has not been examined the BRE on all marketing and sales materials.

A  Civil Rights Act of 1968

B  Civil Rights Act of 1866

C  Housing and Community Development Act of 1974

D  Equal Credit Opportunity Act of 1974

A  640

B  1,760

C  43,560

D  5,280

A  27.5 years

B  39 years

C  Indefinitely

D  Zero years (commercial properties cannot be depreciated)

A  Percentage lease

B  Gross lease

C  Net lease

D  Sublease

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

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

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

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

A  $43,560

B  $21,780

C  $500

D  $5,000

A  Downzoning

B  Spot zoning

C  Aesthetic zoning

D  Incentive zoning

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

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

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

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

A  9%

B  12.50%

C  7.50%

D  8%

A  A payment of more than $10,000

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

C  A payment of less than $10,000

D  Gifting a house to a family member

A  No, agency disclosure is only required on sales of residential properties.

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

C  Yes, agency disclosure is required for lease transactions.

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

A  Compensation

B  Sympathy

C  Notice

D  Alternative living arrangements

A  $462

B  $231

C  $2,310

D  $4,620

A  Nothing. There is no defense against unpaid subcontractors.

B  Require the contractor obtain a payment bond.

C  File a lien release.

D  File a notice of completion.

A  Property partnership

B  Co-ownership

C  Dual ownership

D  Estate by severalty

A  A notice that notifies potential buyers of a pending lease

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

A  The date it is recorded

B  The date the lien is to be paid off

C  The amount of the lien

D  The lien holder

A  Lis pendens

B  Foreclosure action

C  Mortgage lien

D  Judgment lien

A  $1,064.7

B  $1,050

C  $,1055

D  $1,069.77

A  Conveyance and concession

B  Clairvoyance and contract

C  Conveyance and contract

D  Concession and contract

A  Integrated planning

B  Traditional planning

C  Pocket planning

D  Form-based planning

A  VOCs

B  BPA

C  Natural scents

D  PCBs

A  Mobilehome Rent Law

B  RV Park Occupancy Law

C  Mobilehome Landlord-Tenant Relations

D  Mobilehome Residency Law

A  Conformity

B  Substitution

C  Contribution

D  Anticipation

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

B  Levi’s customer, Renee, wants to make an offer on Levi’s seller client’s home. Levi presents Renee’s offer to his client.

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

B  Mortgages are not recorded; only deeds are.

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

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  Each company posts the borrower’s FICO® Score

D  Scoring is consistent across the three companies

A  The property will never sell.

B  The property may float away.

C  Flood insurance may be required.

D  Lenders will not approve a loan.

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 right two spots and add a percent symbol.

B  Divide the smaller number by the larger number.

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

D  Divide the top number by the bottom 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 provides requirements that contracts have to meet to be legally enforceable.

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

A  The asset is worth more because of capital improvements.

B  Investors can take a business deduction for annual depreciation.

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

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

A  Earnest money

B  Attorney review

C  Profit

D  Consideration

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

B  The listing agreement is terminated by force of law.

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

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

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

A  Reliction

B  Dedication

C  Alienation

D  Accession

A  Neither the buyer nor seller

B  Both the buyer and seller

C  The seller

D  The buyer

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

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

C  The roof leaks when it rains.

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

A  The SPEECH Act

B  The First Amendment

C  The Freedom of Information Act

D  The Sarbanes-Oxley Act

A  National Association of Appraisers (NAA) bylaws

B  Real estate license law

C  NAR Code of Ethics

D  Uniform Standards of Professional Appraisal Practice (USPAP)

A  Grantor

B  Notary public

C  Witness

D  Grantee

A  Values real property in California

B  Determines real estate policy and issues regulations to enforce law

C  Issues real estate licenses

D  Discusses real estate policy and makes recommendations to the Commissioner

A  A second mortgage

B  Whether his uncle would like this

C  Whether he will incur a prepayment penalty

D  The state of his local housing market

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

B  Laugh and throw the Loan Estimate in the trash.

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  Void

B  Voidable

C  Valid

D  Fraud

A  Receive payment for managing real estate.

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

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

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