California Real Estate LAWS OF AGENCY AND FIDUCIARY DUTIES
Of the following loan advertisements, which would the real estate Commissioner not allow?: a. "Get a loan today! Call 800-loan-by-phone" b. "Income and credit a must" c. All of these d. "First trust deed for real property available at 4% per annum"
a. "Get a loan today! Call 800-loan-by-phone" * An advertisement implying that a loan can be obtained over the phone is not allowed.
Fault zones that are located near earthquake fault lines in certain California areas must be disclosed to prospective property buyers. These zones are typically: a. 1/4 mile wide b. 10 miles wide c. 1/2-mile wide d. 5 miles wide
a. 1/4 mile wide * Disclosures are required for a property with 1/8 of a mile on either side, that is why ¼ of a mile is given.
A listing to sell a mobile home expires and the listing is not extended. How long does the agent have to remove all signs and lockboxes from the property? a. 48 hours from expiration or termination of the listing b. up to 30 days c. up to 20 days d. up to 10 days
a. 48 hours from expiration or termination of the listing * Once a listing is expired or terminated, the broker has 48 hours to remove all signage and lockboxes.
In real estate publications, which of the following abbreviations provides adequate notice that the ad has been placed by a real estate licensee and is not considered a blind ad? a. Both "Agt. Smith" and "Bro. Smith" provide adequate notice b. "Agt. Smith provides adequate notice c. "Bro. Smith" provides adequate notice d. Neither "Agt. Smith" nor "Bro. Smith" provides adequate notice
a. Both "Agt. Smith" and "Bro. Smith" provide adequate notice * "Bro." (Broker) and "Agt." (Agent) are sufficient to list in an advertisement. Using such abbreviations would not be considered a blind ad.
A broker places trust funds into the firm's trust account. Which of the following statements is correct regarding earned interest on funds that are placed into the firm's trust account? a. The broker cannot receive interest on funds either directly or indirectly b. The interest can be used to pay for service fees for operating the trust account c. All interest earned goes to the earnings of the real estate firm d. Trust accounts are not interest earning accounts
a. The broker cannot receive interest on funds either directly or indirectly * Brokers cannot receive interest on earnings in a trust account directly or indirectly.
What are the responsibilities of a real estate licensee when they advertise on the internet? a. The licensee must properly supervise any non-licensee who responds to inquiries b. the licensee is the only person who can handle inquiries c. the licensee cannot work with anyone out of the country in which they live d. the licensee is the only one who can handle inquiries and must do so within 48 hours
a. The licensee must properly supervise any non-licensee who responds to inquiries * A non-licensee who responds to real estate inquiries must be properly supervised by a licensee.
To negotiate the sale of an existing promissory note that is secured by real property, and working on behalf of someone for commission, you must be: a. a licensed real estate broke or sales person b. an experienced real estate investor c. none of these d. a loan broker
a. a licensed real estate broke or sales person
Cindy wanted to buy a 2-acre parcel of land for $550,000, however she did not have the funds to do so. Cindy asked her best friend, Esther, to help her with the purchase of the land. Esther bought the land for $550,000 and then a day later created and signed a land contract for sale to sell the land to Cindy for $600,000. This transaction is: a. a valid real estate transaction both on the purchase and sale b. illegally done by Esther c. illegally done by Cindy d. a valid transaction only for the purchase not the sale
a. a valid real estate transaction both on the purchase and sale
Lindsay took a listing and promised to advertise it in the local newspaper. While the property was listed, real estate agent Lindsay does not do as she promised. Lindsay is guilty of: a. actual fraud b. mortgage fraud c. Ponzi scheme d. misrepresentation fraud
a. actual fraud * Per civil code she would be guilty of actual fraud.
In regards to trust accounts, the Commissioner's Regulation 2834 states that withdrawals from a trust account may only be made by signature of one or more of the following: a. all of these b. the broker who opened and maintains the trust account c. an unlicensed employee of the broker covered by a fidelity bond at least equal to the maximum amount of trust funds to which the employee has access at any time d. a licensed salesperson who has written authorization from the broker
a. all of these
A broker aspires to be a competitive and profitable business when calculating their office fees. What would be the correct way for a broker to properly run their business and charge the right amount for "desk fees"? a. divide the operating expenses (salaries, rent, insurance, etc.) by the number of salespeople b. divide the brokerage's total commissions earned by the number of salespeople c. any of these d. take annual profit and subtract expenses and divide that by the number of salespeople
a. divide the operating expenses (salaries, rent, insurance, etc.) by the number of salespeople * You calculate desk fees by taking the sum of the operating expenses and dividing them by the number of salespeople. This is the breakeven amount that must be produced by each salesperson for the company to stay in business.
What does "company dollar" refer to? a. income of an office after all commissions are subtracted b. income of an office after all commissions and expenses are subtracted c. money required for in-house council d. money required to set up a real estate office for the first time
a. income of an office after all commissions are subtracted * The "company dollar" is the amount of money left over after all commissions are subtracted and paid out.
When is a broker not required to keep trust records?: a. none of these are acceptable b. when a check is delivered in the same day to the seller c. when a check is returned to the buyer who asks for a refund before the seller gives notice d. when a check is sent to escrow within 24 hours
a. none of these are acceptable * A broker must always keep an accurate trust log.
Real estate records must be kept for three years starting from the date: a. of the listing agreement if the sale is not completed or the date the sale closes (one or the other) b. of the listing agreement if the sale is not completed c. the date when the sale closes d. no records have to be kept
a. of the listing agreement if the sale is not completed or the date the sale closes (one or the other) * Real estate records must be kept for 3 years from the listing date or from the sold date.
Commingle is the opposite of: a. segregate b. put together c. trust account d. cohabitate
a. segregate * Commingle means to mix; segregate means too separate.
A broker hires a salesperson and has a valid independent contractor agreement signed by the salesperson. Of the following statements, which is correct?: a. the broker may be held for the conduct of the salesperson b. the broker must provide health insurance for the salesperson c. the broker sets the work schedule for the salesperson d. an unlicensed assistant for the salesperson must also be employed by the broker
a. the broker may be held for the conduct of the salesperson * The California Bureau of Real Estate holds the broker responsible for the actions and conduct of the salesperson.
Dual agency is legal when: a. the buyer and seller consent to it and give written permission b. everyone is made aware after the purchase agreement is signed and escrow opens c. the broker of record says it's ok d. everyone is made aware at close of escrow
a. the buyer and seller consent to it and give written permission
Who is responsible for disclosing a Mello-Roos tax?: a. the seller b. selling agent c. escrow agent d. listing agent
a. the seller * Sellers must disclose any assessments such as Mello-Roos.
Sandra, an unlicensed employee for a real estate agent, goes door knocking and hands out current listings in the area. She also makes calls for the real estate agent looking for buyers and sellers. Is this allowed under real estate law? a. this is unlawful for both Sandra and the licensed real estate agent b. this is unlawful for the licensed real estate agent c. this is unlawful for the unlicensed employee d. this happens all the time and is fine to do
a. this is unlawful for both Sandra and the licensed real estate agent * Going door knocking and distributing flyers does not require a real estate license, while telephone solicitations do require a license. Because the licensee supervises the non-licensee, both of these individuals have violated the real estate law.
How quickly must a real estate licensee deliver a mortgage loan disclosure statement to the borrower? a. when it is signed by the borrower b. within 3 business days c. within 24 hours d. within 7 business days
a. when it is signed by the borrower * Correct answer: Real estate law dictates that if a real estate licensee negotiates a loan for real property, they are to give the disclosure statements to the borrower as soon as the paperwork is signed.
How soon does written notice of transfer for the sale of a mobile home need to be provided to the Department of Housing and Community Development? a. 5 calendar days b. 20 calendar days c. 10 calendar days d. 30 calendar days
b. 20 calendar days * The transfer notice must be filed within 20 calendar days.
Which law deals with public accommodations for accessibility? a. all of these b. Americans with Disabilities Act c. Fair Credit Reporting d. Fair Labor Act
b. Americans with Disabilities Act * The Americans with Disabilities Act requires public buildings be constructed and equipped with features to make them accessible to individuals with disabilities.
Which of the following terms refers to a formal declaration (not an oath), and expects the declarer to be honest and truthful?: a. Affidavit b. An affirmation c. Acknowledgement d. Verification
b. An affirmation * When there is an affirmation, it is considered a formal declaration. However, you are not under oath when declaring n affirmation.
Broker Josh is prohibited from doing certain acts when acting as an agent for a principal during the escrow process. Which of the following would not violate the real estate law and would not be grounds for disciplinary action by the real estate Commissioner?: a. Not providing each principal a statement summarizing the funds that are handled by escrow b. Encouraging a buyer to alter escrow instructions. Subsequently, all parties involved with the transaction initial and sign the new instructions. c. not providing a copy of escrow instructions once the parties involved sign them d. asking the buyer to amend escrow instructions and leaving some areas within the contract left blank after signatures are applied.
b. Encouraging a buyer to alter escrow instructions. Subsequently, all parties involved with the transaction initial and sign the new instructions. * The broker may encourage changes to the escrow instructions, as long as all parties involved agree by placing their initials and signatures on the changes.
What happens when a real estate licensee does not renew their license before it expires? a. The licensee must pay proper fees for reinstatement, and will only receive a restricted license for 90 days, then they will be fully reinstated. b. The licensee has two years from the expiration date to renew and pay a late fee, however they do not have to retake the state exam c. The licensee must forfeit their real estate license d. The licensee must pay a fine and take real estate classes again, then reapply for a license
b. The licensee has two years from the expiration date to renew and pay a late fee, however they do not have to retake the state exam * Licensees who allow their real estate license to lapse have a two-year grace period after their license expires to renew it and pay a late fee. The licensee does not have to retake the state exam (as long as this is done within two years). If more than 2 years have passed before the agent renews their license, they would have to retake the state exam.
If Realtor Adam sends referrals to ABC Bug control termite company and the company pays him a referral fee, which of the following is correct?: a. This is allowable b. This is not allowed per Real Estate Law c. This is allowable as long as it is disclosed to the customer d. This is allowable as long as no one finds out.
b. This is not allowed per Real Estate Law
Per real estate law, a real estate salesperson is considered: a. a 1099 employee b. an employee of the broker c. self employed d. an independent contractor
b. an employee of the broker * The salesperson is an independent contractor for tax purposes. Per real estate law, a salesperson is considered an employee of the broker.
A real estate agent placed a real estate ad that reads "2 bedroom and 2 bathrooms, putting range, and outdoor pizza oven. Only $385,000! Call 999-999-9999". This type of advertising is known as: a. acceptable advertising b. blind advertising c. false advertising d. misleading advertising
b. blind advertising * This is blind advertising because there is no distinction if this ad was placed by a real estate agent or the homeowner. Blind advertising is not allowed.
Real estate agent Lois does not belong to any trade organization (real estate board) and is using the tagline "A new type of Realtor." This practice is: a. correctable. all she has to do is not capitalize the "R" in realtor b. cause for her license to be revoked or suspended c. a violation of the Truth in Lending Act d. acceptable
b. cause for her license to be revoked or suspended * If you are not part of the National Association of Realtors, you cannot use the term "Realtor".
It is considered commingling when a broker: a. deposits money from multiple people into the same trust account b. deposits funds into the trust account that the broker received from a renter for a security deposit on a property that the broker personally owns c. deposits $200 into the trust account to pay for trust account fees d. all of these are commingling
b. deposits funds into the trust account that the broker received from a renter for a security deposit on a property that the broker personally owns * If the broker owns the property and deposits the security deposit into the trust account with other trust funds, this is considered commingling.
A seller sold their property and is carrying the loan for the sale of the property. The note is secured by a purchase money deed of trust. The seller then hired a broker to service the loan. If the broker takes on this responsibility, what does the law require the broker to do? a. get a mortgage license b. have authorization in writing from the holder of the note c. the broker cannot do this. they are not a mortgage lender d. place an ad in the local paper disclosing they are doing such an action
b. have authorization in writing from the holder of the note * This is required by state law.
ABC escrow company is very happy for all the business Broker Jones sends their way so they send him a gift card for $10.00 for each referral. This is: a. allowed b. never allowed c. allowed as long as the seller who is paying for the escrow service is aware d. allowed as long as all principals in the transaction are aware
b. never allowed * RESPA does not allow for kickbacks.
Per California law, the Real Estate Commissioner has the right to do which of the following? a. all of these b. promulgate rules and regulations and enforce California real estate laws c. revoke a license without a hearing d. impose fines on licensees who are convicted of fraud
b. promulgate rules and regulations and enforce California real estate laws * The Commissioner cannot impose fines or revoke a license without hearings. They can set rules and regulations.
Agent Jack has Derrick's house listed. Agent Jack received an offer for Derrick's house and presented it to him. Derrick was hesitant in accepting the offer because he has not found a new home to move to as of yet. Agent Jack promised Derrick verbally that he would find him a new home before close of escrow. If Agent Jack is not able to find Derrick a house and fails to perform during the time given what is the most likely action? a. the promise was verbal, therefore there is no liability b. seller derrick could proceed with a civil suit and agent jack could be responsible for a damage award c. agent jack could be responsible for criminal neglect d. seller derrick can cancel the sale of his house since the promise of derrick finding another house did not occur.
b. seller derrick could proceed with a civil suit and agent jack could be responsible for a damage award * The seller relied on the agent's price and based his decision on whether to sell his house on the agent's promise. The agent did not perform on his promise, therefore he could be liable for breach of contract in a civil court. The Statute of Frauds does not require this type of contract to be in writing.
The Transfer Disclosure Statement states that a broker can: a. complete the inspection for the owner b. visually inspect and point out pertinent information about the property c. pay for a termite inspection d. inspect for termites
b. visually inspect and point out pertinent information about the property * The broker can point out deficiencies in the property for the seller and list them on the TDS. The broker may also be able to do the other things listed, however this question was specific to the Transfer Disclosure Statement.
The Residential Earthquake Safety Disclosure must be given to a buyer involving wood framed structures if the home is constructed in what year or earlier? a. 1965 b. 1968 c. 1960 d. 1969
c. 1960
The broker of record found out that one of their agents was receiving a kickback for each deal they sent to the mortgage lender. The broker immediately asked the salesperson to leave the firm and called a meeting with the entire brokerage to explain to all the licensees that receiving kickbacks is not acceptable and such behavior would not be tolerated. From the information that you know, which of the following is true? a. The salesperson could face disciplinary actions by the Real Estate Commissioner, however the broker would not be responsible for the actions of the agent because they spoke out immediately and corrected the problem. b. No disciplinary action would be required since kickbacks in real estate are legal c. Both the broker and the salesperson could face disciplinary action by the Real Estate Commissioner d. Only the broker could face disciplinary actions by the Real Estate Commissioner
c. Both the broker and the salesperson could face disciplinary action by the Real Estate Commissioner * The broker of record is responsible for all of their salespeople, therefore both the broker and salesperson could face disciplinary action.
A broker of an office "recommends" the use of the in-house mortgage and escrow company (from which they receive income). In regards to disclosing these arrangements, what is required from the salesperson? a. No disclosures are needed b. The agent must use whichever additional services the broker tells them to use c. Disclose that additional funds/compensation are received by the broker and written approval from the clients d. Written disclosure is needed from the recommended escrow and mortgage companies
c. Disclose that additional funds/compensation are received by the broker and written approval from the clients * The salesperson must receive approval from the client and disclose the full amount of compensation received.
David hired Broker Kim to sell his penthouse condo in Miami. As part of the agreement, Broker Kim agreed to advertise the sale of this property in a magazine that Broker Letty publishes monthly to other real estate brokers and agents. For this additional service, David paid Broker Kim $500 for the magazine advertisement when they signed the listing agreement. Where must this money be deposited? a. Into Broker Kim's bank account and there must be a written receipt for the funds that refers to the cost of the advertisement in the magazine b. None of these. Funds cannot be received from a client to pay for advertising c. Into the trust account and used only to pay for advertising expenses d. Into Broker Kim's personal bank account to do what she wishes with it
c. Into the trust account and used only to pay for advertising expenses
How would the Real Estate Commissioner cancel the approval of a new subdivision?: a. Send a letter to the developer asking them to stop building and refund the owners from the Recovery Account b. Ask the attorney general to rescind and cancel the approval c. Issue a desist and refrain order d. Have the local mayor cancel and rescind the approval
c. Issue a desist and refrain order * If the Commissioner wants to rescind the approval of a subdivision, they would send a desist and refrain order to stop the developers.
Claudia is an owner of a management company that manages the affairs of sports stars and public figures. She advertises and sells real property for her clients. Who would prosecute Claudia if she violates any real estate laws? a. The CA Real Estate Association b. The Bureau of Real Estate c. The District Attorney d. The local real estate association
c. The district attorney * Any violations of real estate law would require prosecution by the District Attorney. Claudia may have her license revoked by the BRE.
An unlicensed assistant prepares an advertisement. Before the advertisement is published, according to the Business and Professions code, what must the licensee do? a. The licensee is required to read the entire advertisement before publication and sign a release accordingly b. all of these c. The licensee is required to read the entire advertisement and approve it before publication d. The licensee must give correct information to the non-licensee to create a correct advertisement
c. The licensee is required to read the entire advertisement and approve it before publication * The licensee is required to read the entire advertisement before publication. Approval does not have to be in writing.
What is the definition of "puffing"? a. a licensee ignores the material facts about the property b. a licensee misrepresents their relationship with the principal c. a licensee exaggerates the features and benefits of a property d. a licensee discloses the material defects with the property
c. a licensee exaggerates the features and benefits of a property * Whenever an agent exaggerates the description of a property for the purpose of inducing a purchase, they are guilty of "Puffing".
Of the following, which is fraudulent? a. representing a clear falsehood b. representing someone forced into contract c. all of these d. representing knowledge of falsehood
c. all of these
What would happen if a real estate licensee misrepresented a property to a principal?: a. civil lawsuit may be brought against them b. criminal charges may be brought against them c. any or all of these d. disciplinary action by the real estate commissioner may be brought against them
c. any or all of these * There are three bodies of authority. The first is the real estate commissioner's rules and regulations. The second is the CA civil codes. The third is CA criminal codes. All three could apply to this misrepresentation by the real estate licensee.
A licensed real estate agent can legally represent a principal in the transaction of: a. any mobile home b. any used mobile home c. any registered mobile home d. any brand new mobile home
c. any registered mobile home * A mobile home that has been registered and meets the requirements of the Health and Safety Code is considered real property and can be bought and sold by a real estate licensee.
As a real estate licensee, you may act as an agent for the principal in the sale of some mobile homes. The following actions are all against real estate regulations and you may face disciplinary actions from the Real Estate Commissioner, except for which one? a. if payment by a check is refused by a bank and you submit it for payment anyway b. not providing a properly endorsed certificate of ownership from the seller to the buyer c. as a licensee, you sell a mobile home which is over 8 feet wide and over 40 feet in length d. advertising a mobile home as new when it is used
c. as a licensee, you sell a mobile home which is over 8 feet wide and over 40 feet in length * As a licensee, you can transact a sale of a mobile home over 8 feet wide and 40 feet long, however you must be open and honest with your advertising, you must deliver the title to the buyer, and you must also only pay fees with a check that will clear the bank.
The Alquist-Priolo Special Studies Act mandates that a subdivider builder must disclose which of the following to the potential purchaser? a. riparian rights b. fire zones c. earthquake fault lines d. flood zones
c. earthquake fault lines * This act states a subdivider must close all of the fault-zones.
Dudley sent out an advertisement that said anyone who bought or sold a home with him will receive a new refrigerator valued at $3,500. This action is: a. legal, period b. illegal, since gifts cannot exceed $250.00 c. legal, as long as the gift is disclosed to all parties involved d. illegal under any circumstance
c. legal, as long as the gift is disclosed to all parties involved * Anything given that has value can be done, however it must be disclosed to everyone involved.
A real estate agent had their license suspended because a judgment was reached against them and money was paid out of the "recovery account" to the plaintiff. What must be done in order to reinstate their license? a. pay the recovery account, the person, and the interest b. pay the recovery account, a service fee, and all of the interest c. pay the recovery account, plus interest d. pay the recovery account and the person
c. pay the recovery account, plus interest * To reinstate the license, the licensee must reimburse the "recovery account", plus interest.
Real estate agent Brian presents a purchase contract to seller Allison with a purchase price and all terms in line to with what Allison, the seller, is requesting. There is also language within the purchase contract where the buyer is asking for the cooktop and oven, dishwasher, and refrigerator to be included in the sale. Allison is very happy with the offered price as well as all the closing terms, except she wants to take the appliances with her. Brian crosses out that request with a pen and initials on behalf of his buyer because the buyer is out of the country and is not reachable. Brian initialing this stipulation for the buyer would be seen as: a. legal b. unethical c. unlawful d. fully ethical since the agent is acting on behalf of his principal and their wishes.
c. unlawful * It's against the law to change the terms of the contract without the consent of the buyer. You must have consent of your principal by having the principal sign and initial the agreement, not the agent.
If a real estate licensee is due to renew their license and they have a past due amount on a court order to pay child support, which of the following could happen?: a. The licensee cannot renew until they paid the past due amount b. The licensee will never be able to renew c. The licensee can renew their license. Delinquent child support is not related to the real estate license d. A temporary license is issued and the past due amount needs to be paid within 150 days
d. A temporary license is issued and the past due amount needs to be paid within 150 days
Licensee Jenny has a property for sale that has been listed for over 4 months. Jenny is aware that the property is in need of major structural, electrical, and plumbing work. In addition to the necessary repairs, the property is overpriced by $20,000. Jenny must sell the property immediately, therefore she begins advertising the property by stating that it is a "beautiful craftsman style home, move-in ready, with an amazing price! Call me today for a showing! Real estate agent Jenny 999-999-9999". Why is this advertising not permitted? a. it's unethical to list a property that is overpriced because no one would purchase an overpriced property. b. jenny would only be liable for damages if someone buys the property c. violation of the Truth In Lending Act (reg z) requires that the list price of the home be mentioned d. Jenny is aware of the major defects in the property and her advertising is misleading.
d. Jenny is aware of the major defects in the property and her advertising is misleading. * It's unethical to advertise a property as "move-in-ready" when major property defects are present and the agent is aware of them.
When is a listing agent allowed to present one offer at a time for a property to the seller? a. Allowed if the first offer isn't real and will be rejected by the seller b. Allowed if the second offer is under the asking price c. Allowed as long as the real estate agent feels good about it d. This is not allowed.
d. This is not allowed. * An agent must present all offers. It is the fiduciary duty of the agent to do so.
What is the maximum commission amount that a broker may earn? a. 5% b. 7% c. commission is set by the real estate Commissioner d. Whatever is agreed upon with the broker and principal
d. Whatever is agreed upon with the broker and principal * There are no rules about commission. It's negotiable between the broker and the principal.
When can a purchase agreement contain an "as is" provision? a. Never, you cannot use language like this b. When there are inspection clauses in the purchase agreement c. When the broker performs a thorough inspection of the property d. When a TDS is given and informs all the parties of defects that may affect the property.
d. When a TDS is given and informs all the parties of defects that may affect the property. * An "as is" clause is allowed if a TDS is given and all defects are known to all parties involved.
When is a structural pest control report required?: a. With every sale in California of a wood framed property b. With every sale in California c. all of these d. When buying a property and using FHA or VA loans.
d. When buying a property and using FHA or VA loans. * When using FHA or VA financing, a pest control report is needed in areas where pests, such as termites, are found.
Of the following, who is authorized to manage property for the public? a. a business manager b. a certified property manager designee c. any of these d. a licensed real estate broker
d. a licensed real estate broker * Managing property is a real estate action and requires a licensed professional.
The Alquist-Priolo Special Study Zone earthquake disclosure requirement applies to what type of structure? a. every structure built before 1992 b. every structure in California c. every structure in certain cities and towns d. a specific type of structure in town earthquake fault zones
d. a specific type of structure in town earthquake fault zones * only applies to specific types of properties in known fault zones
A real estate broker who runs a local real estate office is required to have written employment contracts with: a. the parking attendant b. only the receptionist c. each member of the staff d. all members of the sales staff including those who hold real estate license.
d. all members of the sales staff including those who hold real estate license. * Real estate law requires written employment contracts for all salespeople in a real estate office that are working for that broker.
A broker has an advertisement that states: "If you reference this advertisement and you buy or sell a property with me, I will give you a $1,000 gift card." This is: a. illegal. a broker cannot give $1,000 to the buyer b. not allowable to anyone c. illegal. A broker cannot give $1,000 to the seller d. allowable, as long as it's open to everyone who buys and sells with the broker.
d. allowable, as long as it's open to everyone who buys and sells with the broker. * A broker can share commission or give anything of value as long as the principal is aware.
The total positive balances of all the beneficiaries in a broker's trust fund account must always equal the account's: a. minimums b. equilibrium c. none of these d. balance
d. balance * The sum of all the beneficiaries' balances must equal the total balance in the trust fund.
When a broker puts his personal or business money into an account that has client funds, this is known as: a. a pyramid b. a fiduciary violation c. collusion d. commingling
d. commingling * Commingling is combining a broker's funds with client funds. This is not allowed.
When a homeowner decides to lease out their residential property, how can the lessor determine the amount that can be legally charged for the security deposit?: a. The number of bedrooms and bathrooms b. The square footage of the entire lot c. Whether the tenant is single, married, has children and/or a pet d. If the rental unit is furnished or not
d. if the rental unit is furnished or not * If the rental unit is furnished, the lessor can charge a higher deposit.
Making sure the property is in working condition, showing vacant units, and collecting rents are assumed responsibilities of a/n: a. broker b. real estate inspector c. an escrow officer d. resident property manager
d. resident property manager
Sam is selling a timeshare at Deer Run. He mailed an advertising pamphlet to 100,000 residents offering a chance to win an 80 inch flat screen television. Sam failed to disclose that it is required to attend a Deer Run sales presentation to have a chance at winning the prize. All new owners became prize winners. Which of the following statements is correct? a. all of these b. current property owners cannot be allowed to win the prize c. prizes are not allowed when you must have attended a sales presentation d. the attendance of a sales presentation must be disclosed when offering a prize or gift
d. the attendance of a sales presentation must be disclosed when offering a prize or gift
A broker holds a client's funds in an account that is set up in the name of: a. the broker, as agent b. the broker, as third party representative c. the broker, as fiduciary d. the broker, as trustee
d. the broker, as trustee
What is the difference between the NHD (Natural Hazard Disclosure) and the TDS (Transfer Disclosure Statement)? a. there is nothing that needs to be disclosed b. only the seller makes disclosures c. only the broker makes disclosures d. the seller or the seller's agent must consult published maps of known hazards to detect and disclose relevant hazards in the NHD where the TDS requires disclosure of all known material fact about the property.
d. the seller or the seller's agent must consult published maps of known hazards to detect and disclose relevant hazards in the NHD where the TDS requires disclosure of all known material fact about the property. * NHD uses published maps and shows fault lines and flood hazards and the TDS is an acknowledgement of material facts about the property.
What is the statutory maximum amount that may be paid from the Consumer Recovery Account to help with claims against a licensee for judgements?: a. total aggregate maximum of $75,000 per licensee b. total aggregate maximum of $100,000 per licensee c. total aggregate maximum of $50,000 per licensee d. total aggregate maximum of $250,000 per lice
d. total aggregate maximum of $250,000 per lice
When an FHA loan is arranged, when does a copy of the HUD booklet "settlement cost and you" need to be provided to the buyer? a. within 1 week b. within 6 business days c. it does not have to be provided as long as the loan costs and information has been disclosed properly d. with 3 days of the loan application
d. with 3 days of the loan application * The HUD booklet must be provided to the borrower within three days of the FHA loan application.
