Real Estate Principles Exam 1 (1-5)
The maximum fine for an unlicensed person who receives an illegal commission is:
$20,000
Typically the buyer will have how many days to inspect and investigate the property:
17 days
California became a state in:
1850
A passing score on the real estate salesperson's examination is:
70%
Under certain conditions, a corporation can be licensed as a real estate broker. Which of the following is one of those conditions?
A principal officer of the corporation must be a licensed broker
Who is not exempt from completing a Transfer Disclosure Statement?
A seller of a four unit apartment building
A salesperson who wishes to become a real estate broker must have which of the following?
All of the above
Which of the following is correct?
All of the above are correct
Which is not a required form in most real estate transactions?
All of the above are required
The Real Estate Law exempts some people from needing a real estate license. Which of the following are not exempt
Any person who receives compensation (commission) for performance of an act defined within the realm of a salesperson's licensing
When would a broker be legally required to reveal the amount of commission under a net listing?
Before the seller accepts the buyer's offer
What is a contract called in which the seller agrees to pay a commission and the broker agrees to use diligence in finding a buyer?
Bilateral executory contract
Which of the following indicates the greatest progress toward completion of a sale?
Broker notified buyer of seller's signed acceptance of buyer's offer
Which is not an appropriate place for the buyer's deposit check?
Broker's business account
There are some basic provisions that should be included in a contract. Which one of the following is one of those provisions?
Consideration
Which of the following is a license issued by the California Real Estate Commissioner?
Corporate real estate license
The listing agreement which gives the seller the greatest opportunity to sell their house is the:
Exclusive Right to Sell Listing
After first obtaining a real estate salesperson's license, said licensee must take how many BRE core three-hour approved continuing education courses in order to renew his or her license?
Five
What would not be part of an agent's inspection?
Garbage disposal
Which of the following is considered to be personal property?
Mortgage contract
The disclosure requirement that is concerned with special flood areas, dam failure, high fire severity, wild and forest fire, earthquake fault zone, and seismic hazard zones, is the:
Natural Hazard Disclosure Statement
Which of the following is correct?
Once a broker's license is revoked, any salesperson working under said broker's license must cease working for that broker.
A listing contract given to several real estate brokers in which the commission is payable to the first broker who brings in an acceptable offer is what type of listing?
Open
Which of the following shows the financial position of a business over a period of time?
Profit and loss statement
Which of the following is not correct?
Real estate salespersons are able to contract directly in their own name as an agent with the seller
Which is not an option of the seller when receiving an offer?
Repose
Authorization for the listing agent to accept a deposit on behalf of the seller is found in the:
Residential Listing Agreement
The potential existence of gas and hazardous liquid transmission lines are disclosed in the:
Residential Purchase Agreement
The sellers have accepted an offer in which they agreed to carry a second trust deed. What contract should be provided to the seller to be sure all the required information is available to them to enter into this type of agreement?
Seller Financing Addendum and Disclosure Statement
A California broker wants to sell her brother's property in Las Vegas.
She can refer the listing to a Nevada real estate broker and they can agree to share the commission
Which of the following is not an essential element in creating a real estate agency?
Size of the commission
Which of the following best describes the role of a broker in a real estate agency?
Special agent
What may a party NOT do for breach of contract?
Sue for malfeasance
The broker of a real estate office wanted to deposit funds from a recently opened transaction. He had his trust account, business account, and personal account all at the same bank. Inadvertently, he made out the deposit slip to deposit the client's funds into his personal account.
The broker is guilty of commingling funds
The rights of an owner are referred to as the "Bundle of Rights." Which of these is not one of these rights?
The unrestricted right to the use of riparian waters
What is not identified in a Natural Hazard Disclosure Statement?
Toxic Mold Zones
The best form for a seller to disclose a roof leak would be on a:
Transfer Disclosure Statement
Unless exempt, seller are required to disclose material facts on the:
Transfer Disclosure Statement
A unilateral contract is:
a promise for an act
The Disclosure Regarding Real Estate Agency Relationship form must be signed at the time of the:
agency appointment
Real estate agencies are created by:
agreement in writing
The Real Estate Commissioner's Regulations apply to:
all California Real Estate licensees
The Real Estate Commissioner:
all of the above.
A real estate broker's license enables a person to handle:
all of these
A liquidate damages clause:
allows the seller to keep the deposit if the buyer breaches the agreement
If a real estate agent knowingly makes a substantial misrepresentation of the likely value of real property, it is:
an agency violation
Arbitration is best described as:
an alternative to a trail before a jury
A deeded easement of right-of-way over the land of another is considered to be:
an appurtenance
Under most circumstances, a real estate salesperson is hired as:
an independent contractor
A statement that shows the financial position of a business as of a certain date is called:
balance sheet
A properly signed exclusive right-to-sell listing agreement is an:
bilateral contract
The Real Estate Commissioner has the right to issue regulations for the interpretation of Real Estate Law. These regulations
both b and c are correct
The right to possess, encumber, use, and enjoy a piece of property to the exclusion of all others, would be an accurate description of:
bundle of rights
An odorous, colorless gas caused by from fossil fuels that is highly toxic is:
carbon monoxide
A California real estate broker finds a buyer for a property in Reno listed with a Nevada broker. Per California regulations, the:
commission can be divided per agreement between the brokers
Real estate agencies can be terminated by:
completion, expiration, mutual consent, and death of the agent
The misappropriation and use of a client's funds by an agent is called:
conversion
The agent may record the results of his inspection on the
either a or b
According to real estate licensing law, for supervising purposes, the relationship between a salesperson and a broker is:
employer-employee
The listing agreement stated that the existing loan was to be assumed. The broker received an offer per the exact terms of the listing except that the buyer wanted to put on a new loan. The seller refused the offer. The broker would be:
entitled to no commission
Through negligence, Blondell permitted Gildea to believe that Delgado was Blondell's agent, when Delgado had not really been appointed by Blondell. If this creates an ostensible agency, it will be by:
estoppel
A newly constructed, three bedroom, one story house would typically have:
four smoke alarms
A real estate broker's license is issued for:
four years
The Statute of Limitations for breach of a written contract is:
four years
Six separate co-buyers of a parcel of land signed a deposit receipt contract at different times and places. A copy must be:
given to each at the time they sign
In a business opportunity sale, the payment for continued patronage is called:
goodwill
To obtain a broker's license, a person must:
hold a salesperson's license for two years
The salesperson's exam
is difficult to pass, with a 50 percent failure rate
An executory contract is a contract that:
is yet to be completed
Per the Real Estate Commissioner's regulations, a broker must:
keep records of all deposits that pass through the office
Real property can be most completely defined as:
land, affixed to the land, appurtenances, immovable by law
Megan's Law is concerned with the:
location of registered sex offenders
A licensed real estate broker states that a lot is 1/3 of an acre, when in fact the lot is 1/4 of an acre. The agent is guilty of:
misrepresentation
A death in a property:
must be disclosed if it affects the value and occurred within the last three years
Real estate commissions are:
negotiable
An owner lists a home for sale with XYZ Realty, with instructions to submit the listing to the multiple listing service and invite other brokers to help find a buyer. This is an example of a(n):
offer to cooperate
Under an option agreement, the grantor/owner of the property is the:
optionor
Explosive devices near residential properties are referred to as:
ordinances
An owner gives ABC Realty an exclusive agency listing for 60 days. Thirty days later the owner finds a buyer and sells the property without the services of ABC Realty. The
owner does not owe a commission
A real estate agent may legally refuse to show property available for sale to a person of a minority race if the:
owners were out of town and had left instructions the home was not to be shown to anyone during their absence
Per the Buyer's Inspection Advisory form that a real estate agent gives to the buyer, the:
purchase agreement obligates the seller to make the property available to buyer for investigations
A counter offer:
rejects the offer
The right to a reasonable use of the surface waters upon which a property owner's land borders is called:
riparian rights
A California law was created to give ____________ many of the same rights and responsibilities as husbands and wives.
same-sex couples
Typically the seller will have how many days to deliver all disclosures to the buyer:
seven days
A material fact is best described as:
something that affects the value of the property
A "Red Flag" would best be described as:
something that indicates a potential problem
If a seller insists on selling a home "as is":
the prospective buyer is entitled to know all defects known to the seller and real estate agent
When a multiple counter offer is properly accepted, a seller will be obligated to sell their property when:
the seller signs the multiple counter offer a second time
The maximum time allowed an applicant to take the salesperson's examination is:
three hours and fifteen minutes
The Statute of Limitations for disclosure of a death is:
three year
Brokers are required to keep copies of all transaction documents for at least:
three years
The purpose of the Megan's Law Disclosure is:
to alert buyers of convicted sex offenders living in the neighborhood
A Lead Based Paint Disclosure must be given:
to buyers of properties built before 1978
The purpose of bracing water heaters is
to prevent them from falling over
An investor leases a building to a tenant who then opens a retail store. The tenant installs a cash register. The cash register is best described as
trade fixtures
A broker lists vacant land in Morongo Valley. The seller gives the broker a copy of the deed. In the deed it states that this property is not to be sold to "non-whites." This makes the deed:
valid but the restriction is unenforceable
A real estate broker takes an exclusive right to sell listing from a seller for $400,000. A buyer makes an offer for $375,000, which the seller accepts. Before the sale closes, the buyer discovers that the broker misrepresented the square footage of the home. Based on this information, the purchase contract is probably
voidable
Buyer makes a written bonafide offer to purchase, and seller signs the acceptance. A contract is first created:
when buyer receives proper communication of seller's acceptance
Courts frequently have to make a decision as to whether some item does or does not go with the real property when it is sold. In making their decision, they use the "Five Tests of a Fixture." These include of the following except:
whether the property is being taxed
