Real Estate Practice

Which of the following statements is generally considered correct concerning brokerage firms that hire real estate assistants?

-Agents who hire assistants list more properties than those who don't -Agents who hire assistants sell more properties than those who don't

Errors and Omissions insurance is meant to protect whom from liability?

-Brokers -Agents

An open house is a prospecting tool for finding:

-Buyers -Sellers

Death does not cancel escrow because:

-It is binding on the heirs (estate) -Of the prior agreed-to contract

Which of the following property is tax exempt in California?

-National and state parks -Property owned by non-profit organizations

Liquidated damages are:

-Paid for not fulfilling a clause or condition in the contract -Agreed to in advance and stated in the contract

Under a "Covenant Not to Compete,?" a seller usually agrees not to open a competing business:

-for a period of time -within a specified geographical area

Real estate assistants who choose to become notary publics must:

-maintain an official record called a notary journal -use an official seal of notary

The Statewide Buyer and Seller Advisory (SBSA) is signed by:

-the buyer -the seller

The Contingency for Sale or Purchase of the Property form indicates whether a condition of the sale depends on:

-the sale of the buyer's property -the seller's purchase of a replacement property

For income tax purposes, the straight-line depreciation schedule for RESIDENTIAL property is a minimum of:

27.5 years

The Continuing Education (CE) requirement to renew a license is:

45 hours every 4 years

At what age does the average person start buying a retirement home?

65

What percentage of prospective homebuyers uses the Internet to search for a home before contacting an agent?

90%

A real estate broker who wants to include negotiation of loans for prospective borrowers and the sale of trust deeds secured by real property will need:

A real property security dealer's endorsement

Which of the following is the best way to keep track of the ads that bring in phone inquiries?

Ad call log book

Escrow is not officially closed until:

All of the above -All the conditions of escrow have been completed -the buyer's remaining money is received -the documents are recorded

Which of the following can a potential borrower compare online?

All of the above -Interest rates -Points -Fees

In a purchase contract, which of the following are NOT usually considered a financing contingency?

All of the above -Obtaining the deposit -Obtaining the down payment -Obtaining closing costs

Sources of listings may include:

All of the above -Probate attorneys -"For sale by owner" ads -Foreclosures

Which of the following listing forms does the seller receive a copy of?

All of the above -Residential listing agreement -Seller's advisory -Estimated seller's proceeds

Surveys have shown that younger clients prefer to be contacted by their real estate agent via:

All of the above -email -tweet -text

The Improvement Bond Act of 1915:

All of the above -is a special assessment tax -finances street and highway improvements -is based on the frontage of property facing the improved street

Which of the following is true concerning the Transfer Disclosure Statement?

All of the above -it must be provided to prospective buyers by sellers of one- to four- residential units -a buyer has two years to sue an agent for failure to make proper disclosures -the listing agent is not legally allowed to complete the entire statement

The basic types of income producing properties include:

All of the above -office buildings -retail property -industrial property

An "encumbrancer" has an interest in a property by value of having:

All of the above -placed a lien on a property -acquired an easement against the property -imposed restrictions against the property

An incoming call register is a useful tool for:

All of the above -record keeping -controlling ad revenue and expenses -following up on inquirires

Which of the following would normally be found in a shared document file?

All of the above -seller's information -all disclosures -buyer's information

Which of the following is TRUE concerning the employment relationship between the broker and salesperson?

All of the above are true -A salesperson actively involved in real estate activities must be employed by a licensed broker -The CalBRE considers a salesperson an employee of the broker, even if he or she is an independent contractor, for the administration of the real estate broker law -The broker must carry worker's compensation insurance for his or her salespeople

Which of the following is TRUE concerning the Buyer's Request for Repairs?

All of the above are true -the buyer's request is really a wish list -the seller may choose to do all, some, or none of the repairs -the buyer can remove request and submit a new one

Which of the following refers to a business that has an actual physical presence?

Brick and mortar

What entity requires that you include your salesperson or broker's license number on all your real estate websites?

CalBRE

What agency regulates the issuance of liquor licenses in California?

California Department of Alcoholic Beverage Control (ABC)

Which of the following is an excellent resource for finding FSBOs?

Craigslist

Liability insurance that protects the agent and broker from catastrophic lawsuits brought by the public is called:

Errors and Omission insurance

Which of the following forms details the total cost of the purchase, including monthly payments?

Estimated Buyer's Costs

FSBO refers to which of the following?

For Sale By Owner

The loss of value due to factors within a structure is called:

Functional obsolescence

Which of the following is one of the most used search engines for locating a real estate professional?

Google

In a listing agreement, which instructions are given the most consideration (take precedence)?

Handwritten instructions

The Federal Civil Rights Act of 1968 was based on the Supreme Court case of:

Jones v. Mayer

Which of the following is NOT one of the three requirements for a valid escrow?

Legal advice

Which of the following statements is NOT TRUE concerning listings in California?

Listing agreements are also referred to as purchase contracts

The collection of seller information from several MLSs to post on to one site for easier comparison is known as:

MLS aggregation

An MLS and its cooperating brokers are denied access to a listing by the seller,, and only the listing agent or member of his or her firm are given permission to show and present offers on a property. This is called a(n):

Office exclusive

What type of listing is considered the least desirable?

Open listing

What type of lease calls for an additional percentage of the lessee's gross business income above the minimum fixed rent?

Percentage lease

Which of the following social networking sites allows you to "pin" images, articles, videos, etc. to a virtual bulletin board?

Pinterest

The seller must provide the buyer with a Lead-Based Paint Notice as an attachment to the purchase contract if the residential property was constructed:

Prior to 1978

Which of the following is NOT an institutional lender?

Private lender

The rollback of California Property tax to 1% of the selling price, plus 2% cumulative interest every year thereafter, was mandated by:

Proposition 13

This new type of barcode that consists of black modules (square dots) arranged in a square grid on a white background, which can be read by an imaging device i s called a:

QR code

Which of the following is NOT true concerning REITs in California?

REITs are illegal in California

The most updated real estate information online can be found on:

Realtor.com

Which of the following websites is associated with NAR?

Realtor.com

The Foreign Investment in Real Property Tax Act (FIRPTA) can be found on which CAR form?

Seller's Affidavit of Nonforeign Status

Which of the following allows you to send both word messages and pictures with just the client's smartphone number?

Texting

In California, who customarily conducts the title search, prepares preliminary reports, and issues policies of title insurance?

Title insurance company

Which social media site only allows the use of 140 or less characters?

Twitter

Which of the following is known for using Automated Valuation Systems (AVMs)?

Zillow.com

A salesperson who is actively engaged in professional real estate activities must be employed by:

a licensed real estate broker

A packet of forms an agent provides to the seller when taking a listing is called:

a listing kit

The compensation for processing the loan and setting it up on the books, which is based on the loan amount, is:

a loan origination fee

All the documents a brokerage generates for a single completed transaction are kept in:

a master transaction file

To be called a "REALTOR," a licensee must be:

a member of the National Association of REALTORS (NAR)

To earn a commission, a broker must produce a buyer who is:

all of the above -ready -willing -able

If any financing term is mentioned in an ad, the FTC requires the ad also mention the:

annual percentage rate (APR)

The Real Estate Commissioner is:

appointed by the Governor

In a listing agreement, handwritten or typed-in instructions:

are given precedence over preprinted instructions

Lenders who charge an additional processing fee to non-English speaking applicants because of the cost of hiring bilingual employees:

are guilty of practicing discrimination

In a trust deed, the party who is lending the money is called the:

beneficiary

When selling real estate, the least effective form of communication is:

by letter (one-way)

Character, capacity, and capital are called the three C's of:

credit

How a house looks to a passerby when compared to the rest of the neighborhood is called:

curb appeal

The Verification of Property Condition form is filled out:

during the final walk-through

The processing of the paperwork and money involved in a real estate transaction by a neutral third party is referred to as:

escrow

When selling an older home, disclosure must be made to the buyer of any insurance claims made within the last:

five years

A real estate salesperson's license is valid for:

four years

A real estate office concerned with its immediate and residual impact on the environment is best described as a(n):

green office

Common interest developments are governed by members of:

homeowner's associations

An ad valorem tax is a tax that is charged:

in proportion to the value of the property

In California, a real estate assistant:

is not required to be licensed

Any person who is actively involved in a real estate transaction at the service of another, in the expectation of receiving a commission, must be:

licensed

The process of getting listing information displayed on numerous other websites is:

listing syndication

Mello-Roos liens are municipal bonds issued to fund:

local streets and sewers

The terms mortagee and mortgagor refer to:

mortgages only

In California, an apartment complex with 16 or more units:

must have an on-site property manager

A weekly outing whereby all available salespersons from one office preview all the newest brokerage listings is called:

office caravan

The main purpose of the CalBRE is to:

protect the public

When a phone caller inquires about a property that's no longer available, a switch sheet allows an agent to:

quickly reference similar properties

Ownership of a website (domain name) is treated legally most like:

real property (cyber real estate)

The Housing Financial Discrimination Act of 1977 prohibits:

redlining

A publication or website that lists telephone numbers by addresses rather than names is called a:

reverse directory

The purpose of a lockbox is to:

store keys to the property for agent access

If there is a contradiction in the purchase agreement form:

the handwritten or typed-in words supersede the printed words

The higher the gross multiplier:

the higher the price

Thanks to Internet technology as an agent or broker you can now legally:

track how many potential buyers access a particular property's website

In a trust deed, the party who is borrowing money is called the:

trustor

An allowance for vacancies and uncollectible rents is called:

vacancy factor

Both buyers and sellers should receive copies of any real estate agreement:

when it is signed