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Below are the questions for the exam with the choices of answers:
Question #1
A 21
B 19
C 20
D 18
Question #2
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
Question #3
A 640 acres
B 640 miles
C One acre
D 640 square feet
Question #4
A Prior to or within three days after the loan application
B Prior to loan application
C Prior to or within 10 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 demonstrate how viable her business is.
D Fiona wants to reduce her base rent.
Question #6
A The secondary market regulates the primary market.
B The primary market packages loans to sell to the secondary market.
C The primary market regulates the secondary market.
D The secondary market packages loans to sell to the primary market.
Question #7
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 A rental agent only has “agency” with landlords, so only landlords must be provided with the disclosure.
D Agency disclosure is required for both landlords and tenants.
Question #8
A It causes dementia if levels of exposure are high.
B It can cause serious lung disease and cancer.
C It causes a skin rash.
D It causes premature birth.
Question #9
A A north-south 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 An east-west line used as a reference point in the rectangular government survey system
D The center-most township identified in the rectangular government survey system
Question #10
A The property must be at least five acres.
B The property must be located in California.
C The property can be a primary or secondary residence.
D The property can be a mobile or manufactured home.
Question #11
A License
B Easement
C Grant
D Covenant
Question #12
A Permanence
B Improvements
C Area preference
D Scarcity
Question #13
A Keeping a client’s confidential information confidential
B Putting the client’s interest first
C Carrying out a client’s instructions without question
D Never questioning a client’s opinion
Question #14
A Alienation
B Acceleration
C Due-on-sale
D Defeasance
Question #15
A Method of annexation
B Adaptability of the item to the land’s use
C Agreement of the parties
D Intention in placing item on land
Question #16
A A weighted average based on the sales price, appraisal amount, and recent sales
B The larger number, as a buyer has already been found
C The smaller number
D A middle point between the two numbers
Question #17
A A lawsuit filed by a rental agent when the commission is not paid.
B A lawsuit filed by a landlord against a holdover tenant.
C A lawsuit filed by a tenant when the security deposit is withheld unlawfully.
D A lawsuit filed by a landlord to regain possession of an improvement to property.
Question #18
A When a party meets 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 rejects all terms of the contract
D When a party acknowledges receipt of the contract
Question #19
A A mortgage
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 judgment lien
Question #20
A Legal descriptions of both properties
B Testimony from long-time neighbors
C Affidavit from surveyor
D Aerial photographs
Question #21
A Six square feet
B 10 square feet
C Nine square feet
D Three square feet
Question #22
A An increase in the number of retirees in a given population would positively impact the demand for large, single-family 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 influx of higher wage earners to a given area would create a price decrease for lower-valued homes.
Question #23
A Qualified fee
B Fee absolute
C Fee simple
D Tenancy at will
Question #24
A Someone who is involved in a transaction but represents neither party
B Someone who uses or purchases a product or service
C Someone who’s hired to act on behalf of a client
D Someone who’s in a position of trust and loyalty
Question #25
A Ill-advised
B Mutual
C Unlawful
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 Explain to the buyer why it’s unnecessary to have a professional inspection done on a new home
C Show properties the buyer might qualify for if he would put down more earnest money
D Review transaction documents with the buyer, clarifying anything that could be confusing, without stepping outside the scope of your license
Question #27
A Include a “not to exceed” clause
B Payable at an indefinite time
C On a government-issued form
D Signed
Question #28
A Buyer’s agent
B Escrow officer
C Listing agent
D Conservator
Question #29
A Demand
B Utility
C Scarcity
D Transferability
Question #30
A Real Estate Settlement Procedures Act
B The Community Reinvestment Act
C The Equal Credit Opportunity Act
D ECOLA
Question #31
A Single agent
B Limited agent
C Universal agent
D General agent
Question #32
A A fixture
B An improvement
C Too heavy
D The wrong color for her new house
Question #33
A The building plan
B A blueprint
C A written narrative of the building plan
D A survey
Question #34
A Condominium project
B Planned development
C Stock cooperative project
D Time-share
Question #35
A it will help another client.
B the transaction has closed.
C the former client is found guilty of fraud.
D he former client has moved out-of-state.
Question #36
A Community Reinvestment Act
B Truth in Lending Act
C Equal Credit Opportunity Act
D RESPA
Question #37
A Conveyance
B Covenant
C Clairvoyance
D Contract
Question #38
A 25 years old
B 15 years old
C 30 years old
D 20 years old
Question #39
A 25.58%
B 19.58%
C 18.96%
D 14.51%
Question #40
A Must report this to California DRE under all circumstances
B Must report this to California DRE only if the charge is related to theft
C Must not report this; as it would be a violation of confidential information
D Need not report this to California DRE because it is not a guilty verdict
Question #41
A Disclosure
B Reasonable skill and care
C Confidentiality
D Obedience
Question #42
A $1,126.25
B $874.50
C $901
D $1,093.13
Question #43
A Moratorium
B Rural
C Bulk
D Aesthetic
Question #44
A Micah’s commission may be at risk.
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 may lose the client’s business.
Question #45
A $1,997.62
B $792.54
C $604.95
D $3,113.46
Question #46
A The client can revoke the agreement but may be considered in breach of contract.
B Jenson and Susan can mutually agree to terminate the agreement.
C The agreement terminates by force of law.
D It’s terminated once the specified term in the agency agreement expires.
Question #47
A $3,200
B $2,475
C $2,400
D $2,450
Question #48
A Physical depreciation
B Functional obsolescence
C External depreciation
D None. Depreciation doesn’t apply to new buildings.
Question #49
A Implied friendship
B A potential bonus from the buyer
C Implied agency and undisclosed dual agency
D Undisclosed single agency
Question #50
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 No, agency disclosure is not required on sales of residential properties with one to four units.
D Yes, agency disclosure is required on sales of residential properties with one to four units.
Question #51
A Purchase title insurance.
B File a lis pendens claim at the court before buying the property.
C Ensure the seller’s name is on the deed.
D File a security agreement at the county clerk’s office.
Question #52
A Advocating for the seller
B Negotiating for the seller
C Representing the buyer’s interests
D Reviewing transactional documents with the seller
Question #53
A Attain a surety bond and furnish it to the state of California for one-and-a-half times the amount of any deposit monies.
B They must have a disclaimer that the property has not been examined the BRE on all marketing and sales materials.
C Sign an affidavit of proforma
D Dedicate a certain percentage of the land to the state of California
Question #54
A Equal Credit Opportunity Act of 1974
B Civil Rights Act of 1968
C Civil Rights Act of 1866
D Housing and Community Development Act of 1974
Question #55
A 5,280
B 43,560
C 640
D 1,760
Question #56
A 27.5 years
B Zero years (commercial properties cannot be depreciated)
C 39 years
D Indefinitely
Question #57
A Net lease
B Percentage lease
C Gross lease
D Sublease
Question #58
A The seller should assume the crop does not transfer with the property.
B The seller should harvest the beans before the sale closes.
C The contract between the parties should clarify the disposition of the crop.
D The buyer should assume the crop transfers with the property.
Question #59
A $500
B $5,000
C $21,780
D $43,560
Question #60
A Aesthetic zoning
B Spot zoning
C Incentive zoning
D Downzoning
Question #61
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.
Question #62
A 7.50%
B 12.50%
C 8%
D 9%
Question #63
A A payment of more than $10,000
B A payment of less than $10,000
C Earnest money paid with a cashier’s check or wire transfer
D Gifting a house to a family member
Question #64
A No, agency disclosure is not required for residential transactions involving five or more units.
B Yes, agency disclosure is required for lease transactions.
C No, agency disclosure is only required for commercial transactions.
D No, agency disclosure is only required on sales of residential properties.
Question #65
A Notice
B Sympathy
C Alternative living arrangements
D Compensation
Question #66
A $231
B $4,620
C $462
D $2,310
Question #67
A Require the contractor obtain a payment bond.
B Nothing. There is no defense against unpaid subcontractors.
C File a lien release.
D File a notice of completion.
Question #68
A Co-ownership
B Dual ownership
C Property partnership
D Estate by severalty
Question #69
A A notice that notifies potential buyers of a pending lease
B A legal term that means “it depends” and requires a certain minimum sales price of the property.
C A legal notice that a lawsuit is pending that affects the title of a property
D A public listing and notice of foreclosure of a property.
Question #70
A The lien holder
B The date it is recorded
C The amount of the lien
D The date the lien is to be paid off
Question #71
A Judgment lien
B Mortgage lien
C Lis pendens
D Foreclosure action
Question #72
A $1,064.7
B $1,050
C $1,069.77
D $,1055
Question #73
A Conveyance and concession
B Conveyance and contract
C Clairvoyance and contract
D Concession and contract
Question #74
A Pocket planning
B Form-based planning
C Integrated planning
D Traditional planning
Question #75
A PCBs
B VOCs
C Natural scents
D BPA
Question #76
A Mobilehome Landlord-Tenant Relations
B RV Park Occupancy Law
C Mobilehome Rent Law
D Mobilehome Residency Law
Question #77
A Substitution
B Conformity
C Anticipation
D Contribution
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 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 Tom is holding an open house for his client. Ruby, a buyer, says she wants to make an offer.
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.
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 Mortgages are not recorded; only deeds are.
D They’re recorded at the recorder’s office in the county where the property is located.
Question #80
A The higher the score, the higher the credit risk
B Scoring is consistent across the three companies
C Each company a uses a slightly different scoring system
D Each company posts the borrower’s FICO® Score
Question #81
A The property may float away.
B Flood insurance may be required.
C Lenders will not approve a loan.
D The property will never sell.
Question #82
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.
Question #83
A Divide the smaller number by the larger number.
B Divide the top number by the bottom number.
C Move the decimal point two places to the left and remove the percent symbol.
D Move the decimal point right two spots and add a percent symbol.
Question #84
A Dual-licensee dual agency
B Buyer agency
C Seller agency
D Single-licensee dual agency
Question #85
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 provides requirements that contracts have to meet to be legally enforceable.
D It states that all real property sales must involve lawyers.
Question #86
A The owner/investor is making less income from the property than previously.
B The asset is worth less because the economy took a downturn.
C Investors can take a business deduction for annual depreciation.
D The asset is worth more because of capital improvements.
Question #87
A Consideration
B Profit
C Earnest money
D Attorney review
Question #88
A Rex’s agent can continue to market the property, but Rex’s family must approve the sale.
B It’s still valid; Rex’s family must abide by it.
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.
Question #89
A The utility company that needs to access the power line that crosses a corner of Elizabeth’s land
B The owner of the empty lot down the street that Elizabeth uses as a vegetable garden with the owner’s permission
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
Question #90
A Dedication
B Accession
C Reliction
D Alienation
Question #91
A Both the buyer and seller
B The seller
C The buyer
D Neither the buyer nor seller
Question #92
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 seller is in a hurry to move because his wife is seven months pregnant.
D The roof leaks when it rains.
Question #93
A The Sarbanes-Oxley Act
B The SPEECH Act
C The Freedom of Information Act
D The First Amendment
Question #94
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)
Question #95
A Grantee
B Notary public
C Witness
D Grantor
Question #96
A Issues real estate licenses
B Discusses real estate policy and makes recommendations to the Commissioner
C Values real property in California
D Determines real estate policy and issues regulations to enforce law
Question #97
A A second mortgage
B The state of his local housing market
C Whether his uncle would like this
D Whether he will incur a prepayment penalty
Question #98
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 Ask the lender if there are other options available that would not involve a prepayment penalty.
D Laugh and throw the Loan Estimate in the trash.
Question #99
A Void
B Valid
C Voidable
D Fraud
Question #100
A Receive payment for managing real estate.
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 Give advice to a friend who is negotiating the purchase of a house.