Real Estate Course 2
If a person believes he or she has been discriminated against, how long does he or she have to file a HUD complaint? 30 days 90 days 1 year 2 years
1 year
A person who believes he or she has been discriminated against has how long from the time of the alleged violation to file a suit in a state or federal court? 6 months 12 months 18 months 24 months
24 months
If an agent does not comply with the requirement of conducting a visual inspection of a property, how long after possession does the buyer have to file a suit? 6 months 12 months 24 months 36 months
24 months
How long must trust account records be kept? 1 year 2 years 3 years 5 years
3 years
Timeshare buyers have the right to rescind a transaction within what timeframe after signing the purchase contract? 1 day 3 days 7 days Never
7 days
Which of the following statements is not true? A broker may require licensees to carry high levels of automobile insurance. It's a good idea for brokers to carry workers' compensation coverage. A broker is not responsible for the acts of independent contractors. Employee status versus independent contractor status is an IRS issue.
A broker is not responsible for the acts of independent contractors.
Which is not a true statement about the Americans with Disabilities Act? A broker might need to change the layout of the office to make the aisles wider for clients in wheelchairs. A duplex owner might need to remodel the kitchen in the rental unit to accommodate persons with disabilities. An apartment manager might be required to allow a tenant with a disability to widen a doorway. A shopping center might have to remodel their public restrooms.
A duplex owner might need to remodel the kitchen in the rental unit to accommodate persons with disabilities.
Which of the following items would not usually be included in a presentation manual for buyers? Documents showing your affiliations with real estate organizations. Services offered to buyers. Your plan for finding the buyer a home. A list of former client references
A list of former client references
How many properties should be included for comparison in a competitive market analysis? Two properties in each category Five current listings -- three recently sold and two expired A minimum of three properties in the recently sold category Twelve properties total
A minimum of three properties in the recently sold category
Which of the following would be an example of a licensee specializing in business type? A. Jim specializes in clients who want to buy restaurants. B. Alice knows everything about the exclusive east side neighborhoods. C. Tom specializes in options. D. Chris is a buyer's agent.
A. Jim specializes in clients who want to buy restaurants.
Which of these is not an AIDA characteristic? Interest Attention Desire Activity
Activity
Which of these is not a tool to help evaluate advertising effectiveness? Telephone log Code in a print ad Advertising budget Designated telephone number
Advertising budget
Which of these Internet pages might be of particular interest to sellers? Staging a home Inspection tips List of sold homes All of the above
All of the above
What does the paragraph on repairs state? The buyer must make all repairs. If checked, the seller can complete repairs after closing. The seller can do all repairs himself. All repairs must be in compliance with existing building codes.
All repairs must be in compliance with existing building codes.
Offering a buyer more than one option and having him or her choose is using what kind of closing technique? Bonus Alternative Ownership Standing-Room-Only
Alternative
A listing presentation can be compared to: A training session An employment interview A practice closing A sure sale
An employment interview
What would be the least effective way to get to know your buyers' needs? Ask closed-ended questions. Listen carefully to everything your prospects say and repeat some specifics back at appropriate times so that they know you have heard what they said. Watch actions and body language. Ask open-ended questions.
Ask closed-ended questions.
An agent must give a copy of the listing agreement to the sellers: At the time the agent presents an offer. At the time the agreement is signed. When the seller pays commission. After the agent has had time to make copies at the office.
At the time the agreement is signed.
The Lead-Based Paint Disclosure is required for homes built: Before 1978 Before 1976 After 1980 After 1975
Before 1978
Which of the following is not a fiduciary duty an agent owes to his or her principal? Loyalty Confidentiality Accountability Blind obedience
Blind obedience
Agent Jim tells his buyers that the seller will leave the riding lawn mower if the buyers make an offer now. What kind of closing technique is Jim using? Assumptive Alternative Bonus Ownership
Bonus
In the listing agreement, a seller can choose to decline/disapprove all but which of the following items? Sign in yard Broker compensation to other brokers Posting to MLS Lockbox
Broker compensation to other brokers
All of the following are good newspaper sections to read for prospecting except which? Obituary column Classified rental ads Business section Special announcements
Business section
Which of the following is not a national real estate trade organization? NAR CAR NAREB AREAA
CAR
Prospects Jim and Linda arrive with agent Bill at the first showing. When Bill pulls in front of the home, Linda decides immediately that she doesn't want to see the inside. What should Bill do? Tell Linda that the sellers will be very disappointed if they cancel the appointment. Launch into your list of the home's special features and hope she changes her mind. Emphasize that this home is a great buy and it would be a shame for them to dismiss it without looking first. Call the sellers immediately and let them know you won't be coming by.
Call the sellers immediately and let them know you won't be coming by.
Most buyers who see a newspaper ad that interests them: Drive by the property. Call your office. Check out your Internet site. Visit your office.
Call your office.
Which of these statements is not true about qualifying buyers? You'll know how much house they can afford. Lenders are in the best position to qualify buyers. Sellers are apt to choose qualified buyers over ones who have not been qualified. Collecting information and pre-qualifying buyers yourself is the easiest and best approach.
Collecting information and pre-qualifying buyers yourself is the easiest and best approach.
A shopping center would be primarily categorized as what type of property? Residential Agricultural Investment Commercial
Commercial
The principles of an agency relationship include all of these factors except which one? Mutual consent Authorization Compensation Fiduciary duties
Compensation
Which booklet is not part of the Combined Hazards Book? The Residential Environmental Hazards Guide Protect Your Family From Lead In Your Home The Homeowners Guide to Earthquake Safety Consumer Guide to Disclosure for Buyers
Consumer Guide to Disclosure for Buyers
Which of these words or phrases might be considered discriminatory when used in advertising? No smoking Couples only Handicap accessible Kids welcome
Couples only
Which of the following forms is non-standard and should be prepared by a broker to give to sellers? Natural Hazards Disclosure Water Heater Compliance Estimated Seller's Proceeds Defective Furnaces in California
Defective Furnaces in California
If a broker receives a deposit check with a purchase contract, which of these is he not allowed to do? Deposit it directly into escrow. Give it to the principal. Deposit into the brokerage business account. Hold it with the buyer's permission until the contract is accepted.
Deposit into the brokerage business account.
Which of the following types of agency is not allowed in California? Dual agency Buyer's agency Single agency Designated agency
Designated agency
All of these activities are appropriate to do within the first few days of obtaining a listing except which? Give the sellers a copy of some homeowner's tips. Discuss modifying the listing price. Explain your marketing plan to the sellers. Have the broker send a "thank you for listing" letter to the sellers.
Discuss modifying the listing price.
What kind of ad usually combines both institutional and product advertising? Classified Display Press release Television
Display
Which of these is not a helpful homeowner tip? Display lots of family photos to impress potential buyers. De-clutter your garage and basement. Bake muffins or cinnamon rolls to create a "homey" feel. Make sure all light bulbs and lamps are working and are bright.
Display lots of family photos to impress potential buyers.
Sara just bought her first new home. She put 20% down and got a mortgage for the remainder. The difference between what Sara owes and what her home is worth is known as what? Principal Capital gain Replacement cost Equity
Equity
A competitive market analysis is an attempt to: Find things in the home a seller needs to repair. Establish a home's fair market value. Discover why some homes haven't sold. Convince a seller to list with you.
Establish a home's fair market value.
Developing a prospecting plan is similar to: Establishing goals. Developing an earnings statement. Setting a training schedule. Writing a meeting agenda.
Establishing goals.
What form can an agent use to show a seller what he or she will net on the sale of the property? Statement of Closing Costs Competitive Market Analysis Sale Price Disclosure Estimated Seller Proceeds
Estimated Seller Proceeds
Which kind of listing gives one broker the right to sell, but allows the owner to sell the property and not owe a commission to the broker? Non-exclusive agency Exclusive agency Exclusive-right-to-sell Net
Exclusive agency
Which of the following is not a true statement? Buyers looking at FSBO homes are usually looking for a bargain. FSBO sellers believe they will save money if they sell themselves. FSBO sellers who list with an agent will pay their own advertising costs. Buyers of FSBO homes are usually the ones who save money.
FSBO sellers who list with an agent will pay their own advertising costs.
Which of the following would be the least desirable phone handling technique? Answer a question with a question when possible. Give as much detailed information about the property as you can. Ask the caller "when" not "if" he or she wants to see the property. Arrange to meet the prospect at your office.
Give as much detailed information about the property as you can.
Which of these is not an important aspect of selling? Establishing buyer rapport Knowing your inventory Giving buyers your opinion of what works best for them Handling objections
Giving buyers your opinion of what works best for them
Which disclosure is required by the Real Estate Settlement Procedures Act? Good faith estimate Rights regarding discrimination Transfer of the loan collection All of the above
Good faith estimate
Which of the following is NOT a condition of the safe harbor test? Person must be properly licensed. Gross income must be based on production. Clearly written contractor agreement must exist. Gross income must be based on hours worked.
Gross income must be based on hours worked.
Which of the following is a good direct mail technique? Self folding mailer. Use self-folding mailers. Print postage labels from your computer. Hand address the envelopes.
Hand address the envelopes.
Which Fair Housing Law added sex to the list of protected classes? Housing and Community Development Act Rehabilitation Act of 1973 Jones v. Mayer Fair Housing Amendments Act
Housing and Community Development Act
All of these questions could help you determine a prospect's capacity to make a purchase except which one? How much do you have in your savings account? Have you been pre-qualified or pre-approved by a lender yet? Do you need the equity from your current home for the new home purchase? Where do you and your spouse work?
How much do you have in your savings account?
Which kind of advertising aims at increasing sales by informing the public of a company's capabilities? Operational Institutional Product Classified
Institutional
Prospecting: Only needs to be done periodically. Is critical to your success in real estate. Is helpful but not necessary. Is best left to experienced brokers.
Is critical to your success in real estate.
All of these are true of prospecting except: It can provide a steady stream of future clients. It helps to identify buyer and seller needs. It keeps your name in front of potential buyers and sellers. It guarantees sales.
It guarantees sales.
Which is true of an exclusive-authorization-to-acquire-property agreement? The buyer must pay the broker a commission. The broker will owe fiduciary responsibilities to the seller as well as the buyer. It must specify a definite termination date. Commission is never involved.
It must specify a definite termination date.
Which of the following circumstances would concern you about working for Broker John? John offers weekly training seminars. There are several successful agents at John's office. John's office has a selection of books, CDs and tapes for agent use. John expects his agents to spend 5 hours a week on unsupervised telephone duty.
John expects his agents to spend 5 hours a week on unsupervised telephone duty.
Which of the following statements is not true? Retired persons are a good source of neighborhood information. You can use a reverse telephone directory to get the names of residents. Knocking on doors never requires special permits. Visiting a neighborhood with a co-worker could make you feel more comfortable.
Knocking on doors never requires special permits.
A presentation manual: Should be professionally produced. Can be used in place of a verbal presentation. Is not necessary if the verbal presentation is strong. Lends good visual support to what the agent is saying.
Lends good visual support to what the agent is saying.
Which paragraph of the purchase agreement must be initialed by both buyers and sellers for it to apply? Final Verification of Condition Removal of contingencies Liquidated damages Buyer indemnity and seller protection
Liquidated damages
Which of these forms is not filled out by the seller? Smoke Detector Compliance Modification of Terms Transfer Disclosure Statement Water Heater Compliance
Modification of Terms
Which of the following will give you comparative market data the fastest? Multiple listing service County records Company files Title companies
Multiple listing service
All of the following are valid listing agreements. Which one is illegal in many states? Exclusive agency. Open. Exclusive-right-to-sell. Net.
Net
Which of the following is not a probable reason for a listing to expire without selling? No open houses Needs repair Not properly priced Not marketed correctly
No open houses
All of these items are important to include on your weekly activity report except which? Number of calls that week Agent comments about the property Classified ads placed on the property Number of hits on the company website
Number of hits on the company website
Which of these is not a good technique to get the name of a caller who is reluctant to give you that information? Offer to mail the caller a set of fliers on interesting properties. Ask the caller if he or she would like to receive e-mails on newly listed properties. Offer to show the caller a newly-listed, not-yet-advertised property, even if one doesn't exist. Offer to call the prospect when new listings that meet his or her criteria come on the market.
Offer to show the caller a newly-listed, not-yet-advertised property, even if one doesn't exist.
A buyer calls your office to inquire about a property he saw advertised. He sounds really excited about this property. Where is it that he likely found out the property was for sale? On the Internet In a classified ad From the For Sale sign From a direct mail flier
On the Internet
All of the following are true statements about goals except which one? Goals should be measurable. It's easier to prioritize your tasks if your goals are in writing. Once you set a goal you should never change it. Goals must be realistic if you hope to accomplish them.
Once you set a goal you should never change it.
A broker induces an owner to sell by telling him that Hispanics are moving into the neighborhood. This broker is guilty of what prohibited activity? Redlining Panic selling Steering Misrepresentation
Panic selling
All of the following are benefits of listing with an agent except which? Preparation of an appraisal of the property Help during escrow Qualification of buyers Help with required forms and disclosures
Preparation of an appraisal of the property
Which of these is a free form of advertising? Shopping guides Telephone directory Press release Blind ad
Press release
When must a listing agent present the Disclosure Regarding Real Estate Agency Relationships to the seller? Prior to bringing an offer to purchase. Prior to accepting the listing. As soon as possible. Prior to conducting any showings.
Prior to accepting the listing.
How might probate information help in prospecting? Gives the names of lawyers who might require property assistance. Allows the agent to determine community market trends. Shows property addresses that should be excluded from prospecting. Provides the names of individuals who may want to sell inherited property.
Provides the names of individuals who may want to sell inherited property.
Which of these statements is not true? Radio advertising is not as effective as other methods because listeners can be distracted by their activities and not hear the ads. Newsletters can be a very effective advertising forum for niche marketers. Advertising in the telephone directory is cost effective because the directories can reach every home in the marketing area. Magazine ads are significantly more expensive than newspaper ads.
Radio advertising is not as effective as other methods because listeners can be distracted by their activities and not hear the ads.
Which disclosure form gives detailed information about the property's condition? Real Estate Transfer Disclosure Statement Agency Disclosure Natural Hazard Disclosure Statement Mello-Roos Report
Real Estate Transfer Disclosure Statement
Which of the following is not a source of information for professional ethics codes? State laws Licensing regulations Real estate associations Real estate schools
Real estate schools
A competitive market analysis contains information about all of the following items except which? Currently listed homes Recently sold homes Recently remodeled homes Similar expired listings that didn't sell
Recently remodeled homes
Which of the following is not an advantage of home ownership? Increase in property value Increase in equity Repairs and maintenance Tax deductions
Repairs and maintenance
Which of these documents is for sellers only and not for buyers? Smoke Detector Statement of Compliance Real Estate Transfer Disclosure Residential Listing Agreement Seller's Affidavit of Nonforeign Status and/or California Withholding Exemption
Residential Listing Agreement
When the broker and seller agree that the broker can receive commission for a specified number of days after the listing expires if selling to a "named" party on a list, it's referred to by what term? Security clause Non-penalty clause Safety clause Effective period
Safety clause
Which of these statements is true? Salesperson Harry can solicit his own listings. Salesperson Julie can receive her commission from the cooperating broker in her latest transaction. Salespersons must perform all of their activities on behalf of their employing broker. Broker Tom has only limited responsibility for the actions of his licensees.
Salespersons must perform all of their activities on behalf of their employing broker.
Which of the following statements is not true about a net listing? Sets a limit on the commission a broker can earn. Is generally viewed as unprofessional. Is illegal in many states. Allows a broker to have as a commission anything above the minimum the seller sets.
Sets a limit on the commission a broker can earn.
If there is no interest in the property on a given week, the agent should: Skip the activity report for that week. Share that information with the sellers. Tell the sellers you expect an offer to be coming soon. Tell the sellers it's time to reevaluate the price.
Share that information with the sellers.
Which of the following actions by an agent would most probably upset the sellers? Conducting an agent open house. Sending a weekly activity report. Sharing all visitor comments two weeks before the listing ends. Placing a classified ad in the weekend paper.
Sharing all visitor comments two weeks before the listing ends.
Which of these is an emotional reason that buyers buy property? Tax advantages Status Investment Schools
Status
A reference list of alternative comparable properties is sometimes referred to as the: Cheat sheet. Telephone answering register. Switch sheet. Alternative list.
Switch sheet.
If someone shows up at the sellers' door unexpectedly to see the home, the sellers should: Tell them to call your office. Invite them in and show them around. Take their names and call your office. Ask them to leave.
Take their names and call your office.
All of the following are good approaches for handling objections except which? View an objection as the buyer's request for more information. Use the "yes-but" technique to handle the objection. Ask the buyer more questions. Tell the buyer it's not an issue.
Tell the buyer it's not an issue.
Which paragraph of the purchase agreement states that if the buyer defaults after acceptance, he or she may be liable for the broker's commission? Terms and conditions of offer Final Verification of Condition Dispute resolution Liquidated damages
Terms and conditions of offer
An unlicensed person engages in advertising that conveys the clear impression that he is a licensed real estate broker or is an officer or employee of a corporation who knowingly advertises a false statement concerning any land or subdivision. In this scenario, which of the following is not true? The advertiser is subject to a fine. The advertiser can be sentenced to up to a year in prison. The person is breaking the law. The advertiser must prove he was grandfathered in as a licensee.
The advertiser must prove he was grandfathered in as a licensee.
The cost of doing direct mail advertising depends on all of these things except which? How you target your audience The frequency of the mailings The number of pieces you send The date of the mailing
The date of the mailing
Agent Paul is bound to inform his client of all facts that might affect the client's interests -- both what Paul knows and what he "should have known." Which of these situations would not be something Paul "should know"? There is a crack in the basement wall. The owner of the property is HIV positive. The air conditioner does not work. The casement windows have broken seals.
The owner of the property is HIV positive.
Which of these is not an exemption to fair housing law? Senior housing for residents 62 or older A religious organization providing housing to members only The sale of a single-family home by an owner who owns five residences Rental of a unit in an owner-occupied four-family flat
The sale of a single-family home by an owner who owns five residences
Alice has decided that she will specialize in selling farm land. Which area of specialization would she fall into? Geography Type of property Business type Type of client
Type of property
Which California Fair Housing law provides protection from discrimination by business establishments? Rumford Fair Housing Act Unruh Civil Rights Act Holden Act Fair Employment and Housing Act
Unruh Civil Rights Act
All of these would be effective at capturing a reader's attention except which? Use as little white space as possible. Use a question as a headline. Use available color. Make the headline bold and all caps.
Use as little white space as possible.
Which of the following is not a legal notice that can provide a listing lead? Death notice Vacancy Divorce Tax delinquency
Vacancy
Which of these marketing tools is not considered a traditional tool? Flier Classified ad Photos Video tour
Video tour
All of these statements are true except which one? Virtual tours are a very expensive marketing tool to use. An agent should print off a copy of the listing on the company's Internet site to send to the sellers. Participation in the MLS increases a licensee's inventory. Property evaluations from other agents have valuable information for sellers.
Virtual tours are a very expensive marketing tool to use.
All of these might be a buying signal except which? Taking room measurements. Asking about a possession date. Moving closer to the agent to get a better look. Walking through the home quickly.
Walking through the home quickly.
Broker Alice has hired several independent contractors in her firm. Which of the these activities does she have control over? What the licensees wear. What percent of commission the licensees can charge. How much time the licensees must spend in the office. Whether or not the licensees attend staff meetings.
What percent of commission the licensees can charge.
You should try to attach a rider strip to your For Sale sign that has: Your home telephone number. Your GRI designation. Your cell phone number. Your fax number.
Your cell phone number.