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 4523
B 4524
C 4522
D 4525
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 You are interviewing the broker as much as the broker is interviewing you.
B Very few licensees are selected; it’s highly competitive.
C Being a new licensee is a distinct advantage.
D Most brokers prefer not to hire new licensees.
Question #4
A An escalation clause
B Full price or over full price
C Waive appraisal
D A quick closing
Question #5
A Client
B Customer
C Seller
D Buyer
Question #6
A “All buyers are required to sign buyer representation agreements.”
B “Without a written representation agreement, I don’t represent you.”
C “Buyer representation agreements don’t obligate you in any way.”
D “You won’t owe as much commission if we work under an agreement.”
Question #7
A Robert is a dual agent
B Robert must also be an attorney
C Robert is in violation of agency law
D Robert is breaching his fiduciary duty
Question #8
A The seller repairs holes in the walls and documents that they were completed six days before close.
B The seller hires a contractor to repair holes in the wall and informs the buyer that the contractor never provided a receipt.
C 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.
D The seller hires a contractor to repair holes in the wall starting the day the buyer is scheduled to verify final condition.
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 Exclusive right to sell
B Exclusive right to collect commission
C Exclusive agency
D Net listing
Question #11
A Criminal attorneys
B Home inspectors
C Game wardens
D Divorce attorneys
Question #12
A Buy display advertising
B Spend more than usual on marketing campaigns
C Send a mailer
D Join a team
Question #13
A Personal contact number
B Personal photo
C City and state where the brokerage is located and jurisdiction
D License number and responsible broker’s identity
Question #14
A Marketing clause
B Multiple listing clause
C Provisionary clause
D Broadcast clause
Question #15
A The seller wishes to lower the list price to encourage more offers.
B A buyer has made an offer below list price and the seller is willing to take that offer.
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 Retail
B Healthcare
C Leisure
D Manufacturing
Question #17
A Lenders and their shareholders don’t like to keep properties on their books longer than necessary.
B There are special government financing programs for purchasing REOs.
C There are no agent commissions to pay for REO transactions.
D Federal regulations require that REOs be sold below market value.
Question #18
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 #19
A Litigation
B Condemnation
C Arbitration
D A second round of mediation
Question #20
A They require no down payment.
B They’re always in demand.
C Because they’re rare, and therefore valuable.
D They need somewhere to live.
Question #21
A Monthly
B Yearly
C Quarterly
D Weekly
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 Preparing a written agreement that accurately states a purchase price
C Preparing a written agreement that falsely states a purchase price
D Making a reasonable effort to ensure all parties to a written agreement have a copy of the agreement
Question #23
A The seller must reduce the price to the appraised value.
B The parties may choose to negotiate the difference.
C The buyer will be forced to terminate the contract immediately.
D A new appraisal will always be ordered.
Question #24
A Laws related to the sale of securities
B It does not contain laws
C Laws related to real property contracts, such as contract of sale or land installment contracts
D Laws related to theft and other crimes
Question #25
A $24,000
B $36,000
C $48,000
D $3,000
Question #26
A Are relatively liquid
B Are larger properties
C Are relatively rare, so tenants compete for available units
D Require a larger down payment, so there is less to finance
Question #27
A The commuting one, because most business is conducted in the car.
B The commuting one, because he will spend most of his time in the field.
C The closer one, because gas is expensive.
D The closer one, because he can meet clients at the office easier.
Question #28
A They were hoping for window air conditioning.
B Older units are bigger and more unsightly.
C Central air conditioning isn’t a sustainable technology.
D The unit may need to be replaced.
Question #29
A Vacant units
B The difference between usable square footage and rentable square footage
C Stairwells and lobbies
D Bathrooms and hallways
Question #30
A With material defects
B Under warranty
C By default
D As-is
Question #31
A Michael is allowed to tell any prospective buyers and their agents that Felicity will not sell to Hispanics.
B Michael may follow Felicity’s instructions and show the house to anyone except Hispanics.
C Michael is allowed to prepare an advertisement which states, “Home for sale, $140,000. No Hispanics.”
D Michael may inform Felicity of fair housing laws.
Question #32
A The Central Intelligence Agency
B The California Department of Real Estate Commissioner
C The Internal Revenue Service
D The Federal Bureau of Investigation
Question #33
A Inspections, Reports, and Certificates
B Government Requirements and Retrofit
C Escrow and Title
D Other Costs
Question #34
A 30
B 21
C 10
D Three
Question #35
A Yes, because she should meet them in person before working for them.
B No, this is how agents work with buyers.
C No, this is how all agents work.
D Yes, because this constitutes the illegal practice of real estate.
Question #36
A That 70% of their income will go toward expenses
B That 70% of renters will leave in the first two years
C They must receive 70% return on their investment
D The purchase price shouldn’t be more than 70% of the repaired value
Question #37
A In the firm’s safe or safety deposit box until closing
B In the firm’s general business account, with a ledger entry for the client’s name, labeled “trust fund”
C In a trust fund account or neutral escrow
D In an interest-bearing account
Question #38
A Terminate her agency relationship
B Inform all parties to the transaction
C Say nothing
D Inform the seller
Question #39
A Financial
B Business
C Capital
D Leverage
Question #40
A Seller Instruction to Exclude from the MLS
B Modification of Terms
C Cancellation of Listing
D Termination of Buyer Agency
Question #41
A Advertise the listing on the MLS
B Prepare advertising for social media and local newspapers
C Negotiate a higher commission, as there is a greater burden on the agent to find a buyer
D Fully inform the seller about the dangers of reduced market exposure
Question #42
A Closer to parking
B Rooms open to interior of the building
C More amenities
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 A landlord refuses to rent to a tenant who has poor credit and unstable employment history.
C 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.
D An owner refuses to sell a house to a same-sex couple that offered less than the asking price.
Question #44
A Laura must stay with Bill for at least two years before she transfers brokerages.
B Laura likely won’t get a salary for six weeks.
C Laura will be put on a three-month probation.
D Laura may leave the brokerage and join another at any time.
Question #45
A Seek out a broker who does a lot of business.
B Work a regular work week (Monday through Friday, 9 a.m. to 5 p.m.).
C Try to be all things to all people.
D Work hard and stick with it.
Question #46
A Monica should tell all prospective buyers that the seller has HIV.
B Monica should not be the listing agent for her friend.
C Monica cannot tell others about Brian’s HIV status.
D Monica should purchase Brian’s property.
Question #47
A Net operating income
B An operating statement
C Effective gross income
D Potential gross income
Question #48
A Hot
B Static
C Cold
D Dynamic
Question #49
A Escrow can’t disburse the money without your signature
B Escrow is FDIC insured.
C My company will cover any losses
D Escrow is bonded
Question #50
A 2019
B 2029
C 2048
D 2039
Question #51
A Thursday, August 1
B Saturday, August 3
C Friday, August 2
D Wednesday, July 31
Question #52
A They want wealthier clients than their friends and family.
B Their brokers don’t want them marketing to that audience.
C They are afraid they’ll be asked to reduce their commissions.
D They don’t want to seem pushy.
Question #53
A Hold on to the offer until after your buyer sees the property.
B Present the offer to the seller and tell him you have another potential buyer who wants to see the property next week.
C Present the offer to the seller right away and don’t mention the other potential buyer.
D Tell the buyer’s agent that the sellers aren’t reviewing offers until next week.
Question #54
A Foreign Investment in Real Estate Property Tax Act (FIRPTA)
B Foreign Investor Real Estate Investment Tax (FIRE-IT)
C Tax Withholding for Foreign Holding Act (TWFHA)
D Foreign Real Estate Tax Withholding Act (FRETWA)
Question #55
A Move in more quickly
B Spot the high-value items
C Imagine themselves in the home
D Identify furniture they want to purchase from the sellers
Question #56
A Destroying all documents carrying a client signature in a manner approved by DRE
B Giving a copy of the agreement to her client after it’s signed
C Sending a copy of the agreement to DRE
D Maintaining the documents in the brokerage files for at least five years from the closing date
Question #57
A Documents that must be submitted to the DRE
B Records that must be provided to clients upon request
C Records that must be held for at least three years
D Documents that must be stored electronically
Question #58
A Carpeted halls and stairways
B Sufficient cooling and heating
C Access to restrooms
D Improved acoustics
Question #59
A To get referrals to other investors
B To get the client better deals on settlement costs
C To get the client better deals on title insurance
D To get leads on available properties
Question #60
A Yes, but only if his taxes remain unpaid for five years.
B Yes, they can foreclose immediately.
C No, California law prohibits foreclosure for a tax lien.
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 Ask Jerry to repair the issues that she found
C Show the issues that she noted to a home inspector, if the buyer uses one
D Use the proper disclosure forms
Question #62
A 10
B 20
C 11
D Nine
Question #63
A Handyman companies
B Home decorator conventions
C “Subject to court approval” listings in the MLS
D Door-to-door in low-income neighborhoods
Question #64
A “Property taxes are prorated so you’ll only pay for the time you owned the property.”
B “When you’re buying your next home, the transfer will trigger a reassessment for property tax purposes.”
C “Your title will reveal any tax liens, so the title company will review it to ensure that isn’t an encumbrance.”
D “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.”
Question #65
A Request an income guarantee
B Call the Better Business Bureau
C Interview other new licensees
D Interview several managing brokers
Question #66
A It’s important to avoid spending money on non-essentials or adding to her debt load prior to closing on the loan.
B She should use money from her savings account to make the purchase instead of using her credit card.
C She should wait until after she closes on the home and then use a home equity line of credit to make her furniture purchases.
D She should use store credit instead of her credit card to purchase the furniture since the interest rate is probably lower.
Question #67
A Accept a middle-of-the-road offer, but on the condition that no home inspection repairs will be performed.
B Reject the offers and put the home back on the market for the amount of the highest offer.
C Have all buyers submit their “highest and best” offer, then help the seller decide which offer is most appealing.
D Leave it on the market for another three days to allow time for even more offers to come in.
Question #68
A Fair housing laws
B The Sherman Antitrust Act
C Licensing laws
D The Federal Trade Commission Act
Question #69
A Static
B Dynamic
C Environmental
D Capital
Question #70
A Trade-down buyer
B First-time buyer
C Trade-up buyer
D Retiree
Question #71
A A relatively vague description, so people want to come and see the details
B The seller’s contact information
C The seller’s bottom-line sales price
D At least one photo
Question #72
A A comparison of before-tax cash flow to cash invested
B Making money hand over fist
C Trading international currency
D Net income after taxes are deducted
Question #73
A Listing the property on the MLS
B Giving the letter to at least 20 neighbors
C Providing the letter in multiple languages for non-English speakers
D Ensuring that the letter was given to neighbors on both sides of the street
Question #74
A Five years
B One year
C 10 years
D Three years
Question #75
A Mortgage
B Debit
C Balance
D Credit
Question #76
A Buyer
B Owner
C Property manager
D Broker
Question #77
A It is void because it is not for a lawful purpose.
B It is voidable, because Jesse probably signed it under duress.
C It is voidable, because Jesse is not mentally competent to sign a contract.
D It is voidable, because the consideration, as a percentage rather than a dollar amount, is not clearly stated.
Question #78
A Their current home might be a potential listing for you.
B If they don’t, they’re probably wasting your time.
C Selling their home before purchasing a new one is more work for you and might not be worth your time.
D You won’t need to check their credit if they’ve qualified for a home in the past.
Question #79
A No, Yolanda can take legal action against the buyers at any time while she still owns the property.
B No, Yolanda can take legal action at any time within two years after taking possession of the property.
C Yes, the buyer can only take legal action within six months of taking possession of the property.
D Yes, Yolanda should have canceled the contract within three days of receiving seller disclosures.
Question #80
A Accounting
B Reasonable skill and care
C Disclosure
D Confidentiality
Question #81
A FDIC
B WNBA
C NAIC
D AARP
Question #82
A Frozen
B Disbursed
C Eliminated
D Reallocated
Question #83
A You should ask the buyers who walked away whether you can provide a copy.
B You should provide an inspection report to all prospects, along with seller disclosures.
C You should disclose any adverse material facts, but you don’t have to provide the report.
D You should provide an inspection report, but only if specifically asked.
Question #84
A Are you currently working with any other agents?
B What is your income?
C What is your tax bracket?
D Have you ever been convicted of any felonies?
Question #85
A Non-trust funds
B Commission
C Trust funds
D Revenue
Question #86
A “My listing agreements are generally 90-day contracts.”
B “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.”
C “The MLS requires us to have at least 90-day listings.”
D “My contract length is non-negotiable.”
Question #87
A Real Estate Seller Prohibition Act
B Real Estate Standard Protection Act
C Real Estate Settlement Procedures Act
D Real Estate Society Protection Act
Question #88
A Leverage
B Financial
C Business
D Capital
Question #89
A Add
B Depreciate
C Deduct
D Subtract
Question #90
A 1945
B 1978
C 1900
D 1960
Question #91
A This conversation seems to be turning into a discussion of market allocation
B She needs to get to work developing this model for herself
C The group seems bent on creating a tie-in arrangement
D This conversation sounds like it might become an antitrust violation
Question #92
A Conversion
B Commingling
C Earned interest
D Documentation
Question #93
A No, the commission must go through the agent’s broker.
B No, agents cannot accept commissions from immediate family.
C No, the commission must go through the escrow company first.
D Yes, because she’s a close relative.
Question #94
A Carma agrees to list Tera’s property for free if Tera signs an agreement to purchase her new home through Carma.
B 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.
C 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.
D 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.
Question #95
A Unintentional misrepresentation
B Fraud
C Negligent misrepresentation
D Puffery
Question #96
A Fair housing
B Tying
C Per se
D Rule of reason
Question #97
A The day after closing on the property to ensure proper transfer of title
B Weeks prior to closing
C The day prior to closing
D At the closing
Question #98
A The listing agreement does not account for responsibility in this area.
B Both seller and broker are responsible.
C The responsibility lies solely with the listing agent and brokerage.
D The seller is solely responsible.
Question #99
A Multiple listing service
B Membership listing service
C Market listing service
D Maximum listing service
Question #100
A Fairness and loyalty
B Honesty and fairness
C Honesty and obedience
D Obedience and loyalty