Real Estate Practice and Disclosure
What is the maximum amount that could be recovered from the Recovery Fund for one salesperson?A) - $20,000 B) - $50,000 C) - $100,000 D) - $250,000
$250,000
In addition to the Subdivided Lands Law and Map Act, there is federal control of subdivisions under the:A) - Unruh Act. B) - Environmental Impact Act. C) - Interstate Land Sales Act. D) - None of the above
) - Interstate Land Sales Act.
When converting an existing residential property to a condominium, existing tenants must be given:A) - 180 days written notice. B) - 30 days written notice. C) - 12 months notice. D) - None of the above
A) - 180 days written notice.
In order for a licensed salesperson of a broker to legally manage the office, initial contracts, and constitute proper supervision, which of the following is required:A) - 2 years full-time experience during the (immediate) preceding 5 years. B) - 2 years full-time experience during the (immediate) preceding 5 years plus 16 college units. C) - 2 years full-time experience during the (immediate) preceding 10 years. D) - Experience is not required as long as they are licensed.
A) - 2 years full-time experience during the (immediate) preceding 5 years.
In July, Easton bought Rothchild's home through the listing broker, McGrew. In November when the first rain came, the tile roof leaked badly in many places. Easton sued Rothchild and McGrew for the cost of the new roof. Testimony in court showed that Rothchild mentioned the need for a new roof to McGrew, but McGrew did not mention it to Easton because "he had not asked about it." What would most likely occur?A) - Easton would be successful in his suit against Rothchild who would be entitled to recover damages from McGrew. B) - Easton could recover from Rothchild, but McGrew is not liable to Rothchild. C) - McGrew is liable to Easton, but Rothchild is not. D) - Easton is not entitled to recover from either Rothchild or McGrew on the basis of caveat emptor.
A) - Easton would be successful in his suit against Rothchild who would be entitled to recover damages from McGrew.
Commingling is one of the greatest single causes for loss of license. Which of the following would NOT be considered commingling?A) - Holding an uncashed deposit check after acceptance of an offer when directed to do so by the seller. B) - Cashing a deposit check (made out to the buyer) and placing the money in the broker's safe, properly identified as being the deposit received from the buyer. C) - Depositing either cash or a check received as a deposit in the broker's personal account to be held until called for by the escrow officer. D) - Depositing money received by his/her client in the broker's personal account to pay miscellaneous expenses.
A) - Holding an uncashed deposit check after acceptance of an offer when directed to do so by the seller.
If a property owner splits one parcel into 25 or more parcels, the subdivider must comply with federal control under the:A) - Interstate Land Sales Act. B) - Real Property Acquisition Act. C) - Common Interest Subdivision Act. D) - None of the above
A) - Interstate Land Sales Act.
When a broker has a trust account, the name on the account must:A) - Name broker as trustee B) - Name an independent trustee C) - Name each person who has money in the account as trustee D) - Name the broker's accountant as trustee
A) - Name broker as trustee
A subdivider sold five 1-acre lots to Mr. Dalton and optioned five lots to Mr. Bernstein. What course of action does the subdivider have to take as a result of this action?A) - Notify the Real Estate Commissioner of a material change B) - Nothing, but Mr. Dalton and Mr. Bernstein need to contact the Commissioner. C) - Notify the Commissioner of an intent to subdivide D) - Report the sale now and report the option when it is exercised by Mr. Bernstein.
A) - Notify the Real Estate Commissioner of a material change
Jones, who does not have a real estate license, is the owner and president of an investment firm. He advertises and sells properties for his clients. Since these transactions involve real estate, who will prosecute him for violating the real estate law:A) - The District Attorney B) - The State Attorney General C) - The Real Estate Commissioner D) - The local police
A) - The District Attorney
The Unruh Civil Rights Act prohibits discrimination in:A) - all business establishments of every kind. B) - public establishments only. C) - commercial establishments only. D) - for profit enterprises only.
A) - all business establishments of every kind.
Under the Subdivision Map Act, subdivision reports must be filed with the:A) - city or county where the land is located. B) - Real Estate Commissioner. C) - Division of Architecture. D) - Division of State Lands.
A) - city or county where the land is located
Which of the following would realize the greatest benefit from the Bulk Sales Law?A) - creditors B) - buyers C) - sellers D) - patrons A) - creditors
A) - creditors
A public report is good for five years from the:A) - date of issuance. B) - date the first lot is sold. C) - date of approval. D) - date of delivery to the buyer.
A) - date of issuance.
City and County Planning Commission members:A) - have the authority to make recommendations to the City Council or Board of Supervisors on subdivisions. B) - must possess experience and background in real estate. C) - are appointed in cities and elected in counties. D) - are elected officials.
A) - have the authority to make recommendations to the City Council or Board of Supervisors on subdivisions.
A statement issued by the authorizing government agency that there will be no impact on the environment significant enough to warrant preparation of an EIR is called a:A) - negative declaration. B) - positive declaration. C) - neutral declaration. D) - go-ahead declaration.
A) - negative declaration
To assure the accuracy of trust fund accounting records, they must be reconciled at least:A) - once-a-month B) - once every six months C) - once-a-year D) - once every two years
A) - once-a-month
After passing the real estate license examination, a person must apply for the license within:A) - one year of the examination. B) - one year of notification of passing. C) - six months of the examination. D) - six months of notification of passing.
A) - one year of the examination.
The Commissioner paid from the Recovery Fund for settlement of a claim based upon a judgment against a licensed broker. If the broker is bankrupt, he/she would be required to:A) - pay the fund back in full plus interest. B) - make monthly payments. C) - pay back only a certain percentage. D) - pay back nothing.
A) - pay the fund back in full plus interest.
The Financial Discrimination Act of 1977, also known as the Holden Act, has to do with which of the following?A) - redlining. B) - rentals. C) - education. D) - subdivisions.
A) - redlining.
Which of the following is provided by the purchaser upon resale of a business?A) - resale certification B) - clearance receipt C) - disclosure form D) - All of the above
A) - resale certification
If a business is sold without complying with the Bulk Sales Act:A) - the assets still belong to the vendor as far as creditors are concerned. B) - the transfer is unenforceable by all parties. C) - the sale is completely void. D) - the sale is considered illegal.
A) - the assets still belong to the vendor as far as creditors are concerned.
Which of the following would be advised to obtain a clearance receipt in the sale of a business?A) - the vendee B) - the vendor C) - the lender D) - the Franchise Tax Board
A) - the vendee
You are a California real estate broker. A prospect is referred to you by an out-of-state broker and a sale is consummated by you. You want to split your commission with the cooperating broker. Under the California Real Estate Law:A) - you may pay a commission to a broker of another state. B) - you cannot divide a commission with a broker of another state. C) - you can pay a commission to a broker of another state only if he/she is also licensed in California. D) - None of the above
A) - you may pay a commission to a broker of another state.
21 An unlicensed assistant puts together information and assists in writing an advertisement for a broker. For this to be legal, the broker must:A) - write it himself. B) - approve it. C) - terminate the assistant immediately. D) - proofread it.
An unlicensed assistant puts together information and assists in writing an advertisement for a broker. For this to be legal, the broker must:A) - write it himself. B) - approve it. C) - terminate the assistant immediately. D) - proofread it.
Realtor Ken hired an unlicensed person named Jose to hand out his brochures, fliers, and door hangers in his farm neighborhood. Ken also instructed Jose to go to his health club and hand out printed information. Property owner Mary, who has already listed her home with another broker, received a phone call from Jose talking about a possible meeting with Ken. Jose was using dialogue which was a scripted pitch written by Ken. Mary happened to record the conversation. Which of the following statements is correct?A) - This is perfectly acceptable for the unlicensed person and the broker. B) - The unlicensed person is performing acts for which a real estate license is required. C) - An unlicensed person may pass out brochures, but under no circumstances talk to a prospective client. D) - Realtors agree to work under the Realtor's Code of Ethics. It is unethical for a Realtor to solicit business from an owner who has a listing with another broker.
Answer: D—The Realtor's Code of Ethics considers this to be unethical behavior. One Realtor may not solicit owners who have listed their property with another licensed real estate broker.
Buyer Frank sued broker Sam for a misrepresentation in the sale of a single family residence. He was awarded a judgment but Broker Sam was bankrupt and unable to pay the judgment. Buyer Frank appealed to the Real Estate Recovery Account. Assuming the Recovery account agrees to pay Frank, he will receive a maximum of ______ for this single transaction.A) - $20,000 B) - $50,000 C) - $100,000 D) - $250,000
B) - $50,000
The seller is required to deliver the "Homeowner's Guide to Earthquake Safety" to the buyer of any one-to-four unit property built prior to:A) - 1953 B) - 1960 C) - 1968 D) - 1975
B) - 1960
Which of the following qualifies as a "bulk transfer sale?"A) - A judicial transfer of a business including all stock used for resale, fixtures, licenses and leases. B) - A lumber company who transfers a substantial amount of lumber not in the ordinary course of business. C) - A subdivider who transfers an entire 50-parcel unimproved subdivision. D) - All of the above
B) - A lumber company who transfers a substantial amount of lumber not in the ordinary course of business.
Which of the following deals with public access to buildings?A) - Fair Housing Act B) - Americans With Disabilities Act C) - Federal Housing Administration D) - None of the above
B) - Americans With Disabilities Act
A broker advertises properties through the World Wide Web. Rules exist making it mandatory for the broker to do which of the following?A) - Return all messages promptly and correctly within 24 hours. B) - Employ only real estate licensees to respond to queries. C) - Exercise proper supervision over non-licensees responding to queries. D) - Report all international queries to the DRE
B) - Employ only real estate licensees to respond to queries.
If more than one licensed real estate broker is acting as an agent in a transaction, who is responsible to assure the delivery of the Real Estate Transfer Disclosure Statement (TDS) to the buyer?A) - The broker who represents the seller. B) - The broker who has obtained the offer made by the buyer. C) - The broker who holds a valid Listing Agreement with the seller. D) - The seller is ultimately responsible no matter how many agents are involved.
B) - The broker who has obtained the offer made by the buyer.
When leasing a commercial property that is merely a "shell" space, the landlord often agrees to spend a specific amount for a qualified tenant. This amount is properly designated as:A) - a rent abatement. B) - a tenant improvement allowance. C) - a security deposit. D) - earnest money.
B) - a tenant improvement allowance.
Which of the following is required to operate as an advance-fee rental agent?A) - a real estate broker's license B) - a written contract with prospective tenants C) - a real estate salesperson's license D) - access to the Multiple Listing Service
B) - a written contract with prospective tenants
The Alquist-Priolo Earthquake Fault Zone Act is concerned with:A) - all buildings in the entire state of California. B) - all residential buildings within an earthquake fault zone. C) - all buildings within an earthquake fault zone. D) - commercial buildings within an earthquake fault zone.
B) - all residential buildings within an earthquake fault zone.
A subdivider must give a copy of the Commissioner's public report to:A) - anyone who intends to purchase one or more lots. B) - any person, at any time on request. C) - only purchasers of lots just before they sign the purchase contract. D) - only their salespeople.
B) - any person, at any time on request.
In an effort to enforce trust fund handling requirements, the Real Estate Commissioner continuously:A) - sponsors lectures on trust fund handling throughout the state. B) - audits and examines broker's trust fund records on a state-wide basis. C) - calls brokers to keep them up to date on trust fund handling requirements. D) - changes the trust fund handling laws to keep brokers on their toes.
B) - audits and examines broker's trust fund records on a state-wide basis
A broker communicates information given to him by the seller to the buyer in full faith that the seller's information is true. It is later proven that the information was false, and the buyer rescinds. The broker is subject to: A) - discipline by the licensing authority. B) - civil action. C) - criminal action. D) - all of the above.
B) - civil action.
For his/her own protection, the purchaser of a business should obtain a:A) - resale certification. B) - clearance receipt. C) - sales tax exemption authorization. D) - use tax exemption form.
B) - clearance receipt.
Which of the following allows a subdivider to enter into binding contracts with purchasers for lots but does not allow transactions to be completed?A) - final public report B) - conditional public report C) - white report D) - negative declaration
B) - conditional public report
Dividing office overhead by the number of salespersons gives:A) - broker dollar. B) - desk costs. C) - company dollar. D) - overhead.
B) - desk costs.
Accounts payable of a business would be a(n):A) - asset. B) - liability. C) - prorated item in escrow. D) - None of the above
B) - liability.
When is the subdivider required to give the public report to prospective purchasers?A) - prior to the sale of the last lot in a subdivision. B) - prior to the sale of the first lot in a subdivision. C) - prior to advertising the lots for sale. D) - prior to approval of the tentative map.
B) - prior to the sale of the first lot in a subdivision.
A broker sells a house advertised "as-is". There are no obvious defects that would be evident to a prudent buyer upon inspection, but the seller and the broker know that the plumbing is very defective. The buyer moves in and discovers the defects. The buyer then sues the broker and the seller for misrepresentation. The suit will probably be:A) - successful because the seller and the broker withheld material information that should have been disclosed. B) - successful because an "as-is" clause does not relieve a seller or broker from liability for disclosing material facts which they knew of. C) - unsuccessful because selling the property "as-is" gives constructive notice that there are defects. D) - unsuccessful because the defects would have been revealed if the purchase agreement had contained an inspection clause.
B) - successful because an "as-is" clause does not relieve a seller or broker from liability for disclosing material facts which they knew of.
The Subdivision Lands Law is administered by:A) - the Federal Government. B) - the Real Estate Commissioner. C) - city and county authorities. D) - state government.
B) - the Real Estate Commissioner.
The installation of curbs, gutters, streets, and utilities in a new subdivision is the responsibility of:A) - the homeowner's association. B) - the developer. C) - buyers as a group. D) - the city.
B) - the developer.
A broker takes a deposit check from a buyer and deposits it in his trust account. After the offer was accepted, the broker wrote a check from the trust account in the amount of the deposit and brought it to escrow. With regard to the broker's duty to maintain proper trust account records, the records must be retained for:A) - three years from the date the broker deposited the buyer's check in the trust account. B) - three years from the the date escrow closes. C) - three years from the date escrow opened. D) - three years from the date of the offer to purchase.
B) - three years from the the date escrow closes.
The most common violation of the Commissioner's Regulations concern:A) - fair housing violations. B) - trust fund accounts and records. C) - ethics and professional conduct. D) - agency disclosure.
B) - trust fund accounts and records.
An unlicensed secretary in a real estate office can:A) - quote prices over the phone. B) - type listings and sales contracts for salespeople. C) - prepare and mail postcards for salespeople. D) - All of the above
B) - type listings and sales contracts for salespeople.
Mr. Wiseguy salesperson introduces himself to the seller as being employed by a large, successful real estate company because he knew that the seller would only list with a licensee who is employed by a "large company." If Mr. Wiseguy does not work for a large company, but he said it just to be able to sell the property, his conduct would be considered:A) - lawful. B) - unethical. C) - professional. D) - fiduciary.
B) - unethical.
Agent Jones has an offer on a listing contingent on the buyer's uncle approving the property, since he will be financing the loan. Agent Jones hasn't discussed this with the buyers, but assures the seller that there will be no problems regarding the uncle. After the seller accepts the offer, the buyers tell the agent that the uncle is out of town and they don't know when he will return. With regard to the seller, the agent acted:A) - illegally. B) - unethically. C) - practically. D) - properly.
B) - unethically.
A "dedication" under the Map Act would happen:A) - when the final public report is completed. B) - when the approved subdivision map is recorded. C) - when the last lot of a subdivision is sold. D) - when the first lot of a subdivision is under contract.
B) - when the approved subdivision map is recorded.
When a licensee is employed as an independent contractor, the employing broker may still have to cover the licensee for:A) - unemployment insurance. B) - worker's compensation insurance. C) - errors and omissions insurance. D) - All of the above are required.
B) - worker's compensation insurance.
How much of a broker's personal funds may be contributed to a client's trust fund bank account to offset any bank service charges?A) - $25.00 or the amount of charges by the bank B) - $100.00 C) - $200.00 D) - Nothing
C) - $200.00
Properties built before which year DO NOT need a geological report?A) - 1963 B) - 1968 C) - 1975 D) - 1960
C) - 1975
How long does a buyer have to sue the seller of a single family dwelling for something that was not disclosed but should have been disclosed after the buyer moves into the home?A) - 1 year B) - 5 years C) - 2 years D) - 7 years
C) - 2 years
Seller Jones hired broker Smith to list his property. Seller Jones excluded his washer and dryer. Buyer Dana makes an offer on the property and includes the washer and dryer in the offer. After reviewing the offer, seller Jones was still not willing to sell the appliances. Buyer Dana was out of town and unreachable. Broker Smith said he was sure that buyer Dana would not want to lose the house so he crossed out the appliances on the offer and initialed the change himself. To further induce seller Jones to accept the offer, broker Smith said he would find seller Jones another house immediately, which he never did. Which of the following is TRUE regarding broker Smith's actions?
C) - Both (a) and (b)
California real estate law originated from:A) - DRE regulations. B) - Spanish law. C) - English common law. D) - European law.
C) - English common law.
When an agent is accused of "puffing", the agent might be guilty of which of the following:A) - Trying to convince a potential seller of his wide popularity among local people. B) - Convincing the appraiser to assign a higher value to the property than is justified by the comparable recent sales in the area. C) - Exaggerating the features of the property or neighborhood when showing the property to prospective buyers. D) - Convincing a seller to offer a higher commission than is customary for that type of property.
C) - Exaggerating the features of the property or neighborhood when showing the property to prospective buyers.
A broker is representing a developer who has completed his project in a subdivision called "Ridgeway." The broker's advertisement states that people have "already won a free gift," but in reality, they must attend a sales seminar to receive the gift. This type of advertising is:A) - Legal without disclosure of the sales seminar attendance requirement. B) - Legal, because all the "winners" purchased units anyway. C) - Legal, if the ad states they must sit through a sales seminar in order to collect the gift. D) - Always illegal.
C) - Legal, if the ad states they must sit through a sales seminar in order to collect the gift.
Salesperson Kim has several listings and is an agent of Broker Ling. These listings are:A) - Void if Salesperson Kim changes brokers B) - The property of Salesperson Kim C) - The property of Broker Ling D) - The property of Salesperson Kim and Broker Ling
C) - The property of Broker Ling
When a broker keeps records electronically, the program he would use for record retrieval is:A) - RAM B) - SCORE C) - WORM D) - DOS
C) - WORM
An advance fee is:A) - a listing agents commission. B) - a bonus paid to the seller by an agent to obtain a listing. C) - a prepaid fee to cover advertising and promotional costs. D) - a gift to the listing broker.
C) - a prepaid fee to cover advertising and promotional costs
Recommendations made by the city planning commission are:A) - opinions only. B) - advisory only. C) - binding rulings. D) - None of the above
C) - binding rulings.
Copies of real estate transaction documents must be kept:A) - by the broker for 4 years. B) - by the broker only for 3 years. C) - by the broker or salesperson for 3 years. D) - by the salesperson only for 3 years.
C) - by the broker or salesperson for 3 years.
In addition to the licensee's duty to disclose matters known to the licensee, he/she also has the duty to:A) - provide legal advice in situations where there is not time to consult an expert. B) - make minor repairs to a property when absolutely necessary. C) - conduct a reasonable investigation to discover the true facts regarding the property. D) - provide tax advice regarding the transfer of real property.
C) - conduct a reasonable investigation to discover the true facts regarding the property.
The Interstate Land Sales Act applies to:A) - cemetery lots. B) - sales to developers. C) - developments of 25 or more unimproved residential parcels of less than five acres each. D) - All of the above
C) - developments of 25 or more unimproved residential parcels of less than five acres each.
Each city or county appoints a Planning Commission because:A) - they must do so to appropriate funds. B) - the master plan requires it. C) - it is required by statute. D) - the board of supervisors orders it.
C) - it is required by statute.
Regulation of proper sewage and sanitation construction practices are enforced by the:A) - Department of Housing and Urban Development (HUD). B) - Department of Sanitation and Disposal. C) - local health office. D) - Department of Real Estate.
C) - local health office.
A buyer makes an offer on a property but does not have available cash for the down payment. He executes a promissory note in the amount of $1,000 at 12% interest to be repaid in 10 days. The broker:A) - may accept it as long as the broker guarantees its repayment. B) - may only accept cash or personal check. C) - may accept it but must disclose this fact to the seller before the offer is accepted. D) - this method of deposit is immaterial.
C) - may accept it but must disclose this fact to the seller before the offer is accepted.
Each tenant of a proposed conversion of their building from residential property to a condominium has the right to:A) - vacate the premises. B) - cancel their lease. C) - purchase their unit. D) - extend their lease.
C) - purchase their unit.
The Subdivided Lands Law controls the sale or leasing of new subdivisions to California residents:A) - only if the property is located in California. B) - only if the property is unimproved. C) - regardless of the location of the property. D) - only if the property is unimproved and located outside of California.
C) - regardless of the location of the property.
In the sale of a business, bulk transfer laws pertain to:A) - fixtures. B) - goodwill. C) - stock-in-trade. D) - All of the above
C) - stock-in-trade.
When a deed contains discriminatory language or clauses:A) - the deed must be rewritten by the owner before the property may be sold. B) - the title company must re-write the deed. C) - the discriminatory words or clauses are unenforceable. D) - the clauses may be enforced, since they would be considered "grandfathered" into law.
C) - the discriminatory words or clauses are unenforceable.
When budgeting for a real estate office, the phrase "company dollar" means:A) - the money required to establish an office and run it for a given period of time. B) - the income of an office after all expenses are subtracted. C) - the income of an office after all commissions are subtracted. D) - None of the above
C) - the income of an office after all commissions are subtracted
A material fact that must be disclosed to a purchaser would include all of the following EXCEPT:A) - a leaky roof. B) - a septic tank. C) - the racial composition of the neighborhood. D) - plans for a nearby freeway.
C) - the racial composition of the neighborhood.
A subdivider may use the public report in their advertising as long as:A) - they only use a picture of the report and not its verbiage. B) - they only reference certain applicable parts of the report. C) - they use the report in its entirety. D) - they receive permission to use specific parts of the report
C) - they use the report in its entirety.
According to the Real Estate Law, a broker must review and initial all real estate contracts written by his/her sales personnel:A) - immediately. B) - by the end of the next working day. C) - within 5 working days. D) - within 10 working days.
C) - within 5 working days.
A seller (or seller's agent) must give the buyer a separate "Natural Hazard Disclosure Statement" if the property lies within which of the following specified areas?A) - A special flood hazard area B) - A very high fire hazard severity zone C) - An earthquake fault zone D) - All of the above
D) - All of the above
The Real Estate Transfer Disclosure Statement (TDS) is NOT required when the transfer involves:A) - transfer of a unit in a subdivision when the buyer has been given a public report. B) - a transfer ordered by a probate court in administration of an estate. C) - transfers by foreclosure sales after default. D) - All of the above
D) - All of the above
The Subdivided Lands Act applies to:A) - the owner of the subdivided property. B) - any subdivider engaged by the owner of the property. C) - any real estate licensee acting as an agent for the seller of a subdivision. D) - All of the above
D) - All of the above
The basic regulation of the housing and construction industries is accomplished by:A) - State Housing Law. B) - Local Building Codes. C) - State Contractor's License Law. D) - All of the above
D) - All of the above
Which of the following events would require the subdivider to notify the Real Estate Commissioner?A) - The subdivider changes lot sizes. B) - The subdivider changes provisions in the purchase contract. C) - The subdivider changes financing terms. D) - All of the above
D) - All of the above
With regard to the public report, which of the following would be considered a material change in a subdivision?A) - change in lot sizes B) - changes in sales contracts C) - changes in CC&Rs D) - All of the above
D) - All of the above
All licensees must complete 45 hours of continuing education every 4 years to renew their license. Part of the 45 hours must include:A) - Agency and Trust Fund Handling. B) - Ethics and Fair Housing. C) - Risk Management. D) - All of the above.
D) - All of the above.
A retired farmer decides to subdivide the 1,000 acres he owns into five 200 acre parcels to be leased for agricultural purposes. These parcels would be exempt from the requirements of the Subdivision Map Act if they contain:A) - more than 20 acres. B) - more than 60 acres. C) - more than 160 acres. D) - Any of the above
D) - Any of the above
Neither the seller nor any listing or selling agent shall be liable for any error, inaccuracy, or omission of any information delivered to the buyer if:A) - the seller or agent(s) did not know of the mistake. B) - that item of information containing a mistake was provided by a public agency or third-person professional. C) - the item of information containing the mistake was provided by a third-person expert but the mistake was known by the seller and seller's agent. D) - Both (a) and (b) are correct.
D) - Both (a) and (b) are correct.
Broker A meets the Brown family and the Browns make an offer on a house on Elm Street which is owned by Jones. The offer is contingent on the sale of the Brown's house on Main Street which is several counties away. Seller Jones accepted the offer. Broker A refers the Browns to Broker R for the sale of their Main Street home. A written compensation referral form is executed. According to Article 7 of the Code of Ethics, Broker A must disclose: A) - The compensation on Elm St. to both Brown and Jones B) - The compensation on Main St. to Brown only C) - Both the compensation on Elm St. and Main St. to Brown D) - Both the compensation on Elm Street and Main Street to Brown and Jones
D) - Both the compensation on Elm Street and Main Street to Brown and Jones
If a subdivision project will have a significant effect on the environment, the government agency that approves the project may be required to prepare a(n):A) - Alquist-Priolo report. B) - Earthquake fault zone report. C) - Coastal Zone Impact Report. D) - Environmental Impact Report.
D) - Environmental Impact Report.
As to running a business, which of the following is FALSE?A) - Assets - liabilities = net worth B) - Income - expenses = profit C) - Total sales = gross income D) - Gross income - profit = net income
D) - Gross income - profit = net income
It is important for a landlord to obtain all of the information on a rental application in order for the landlord to make a decision about renting to a particular person or to more than one person. A landlord thinks it is important to know whether or not a couple is married. Is it legal for the landlord to inquire whether or not a couple is married on the rental application?A) - Yes, as it may affect the couple's ability to pay rent. B) - Yes, because this is a moral issue. C) - It is legal, but might be considered unethical. D) - No, this would be considered discrimination.
D) - No, this would be considered discrimination.
Seller Smith hires broker Jones to list his home. Neither have actual knowledge that the property is located in a hazardous earthquake, flood, or fire area, and for that reason they decide they will not make the Natural Hazard disclosure. After close of escrow the buyer checks with the county and finds out that a map exists that shows the property located within a particular hazard zone. Which of the following statements is correct?A) - Since the seller and seller's agent had no actual knowledge that the property was located in a hazardous area, they cannot be held responsible. B) - Since the buyer had the opportunity to hire a third-party professional to investigate this matter, the seller and seller's agent would be without fault. C) - Since there had never been a fire, flood, or earthquake in the area, the buyer has no recourse. D) - Since the map was available from the county where the property is located, the seller and his agent will be considered to have knowledge of the fact that the property is in a hazardous area
D) - Since the map was available from the county where the property is located, the seller and his agent will be considered to have knowledge of the fact that the property is in a hazardous area.
What is the difference between the Real Estate Transfer Disclosure Statement and the Natural Hazard Disclosure Statement?A) - Only the seller is responsible for the TDS but the buyer is responsible for the Natural Hazard Disclosure Statement. B) - Only the buyer is responsible for the Natural Hazard Disclosure Statement but the seller is responsible for the TDS. C) - The buyer and seller are equally responsible for both statements. D) - The seller is responsible to check the map and make the natural hazard disclosure if necessary; on the other hand, the seller is responsible to disclose known facts only on the TDS.
D) - The seller is responsible to check the map and make the natural hazard disclosure if necessary; on the other hand, the seller is responsible to disclose known facts only on the TDS.
A Master Plan would be concerned with all of the following EXCEPT:A) - conservation. B) - noise. C) - land use. D) - deed restrictions.
D) - deed restrictions.
A real estate broker's ad must contain:A) - the name of the broker. B) - that the advertiser is a broker or agent. C) - the broker's address. D) - either (a) or (b).
D) - either (a) or (b).
A public report is required if a person is going to subdivide a lot for condominiums into:A) - one or more units. B) - two or more units. C) - four or more units. D) - five or more units.
D) - five or more units.
What type of background check does the Real Estate Commissioner and Appraisal Commmissioner use?A) - late rental payments B) - personal habits C) - credit history D) - late child support
D) - late child support
A tract developer learns that a large national cosmetics manufacturer is moving one of his plants near an area in which he is building a large number of new homes and condominiums. Since a great number of the employees of the cosmetic firm will be women, he decides to gear his sales promotion towards this group. He tells his advertising agency to aim all of their ads to reflect a preference for female buyers. Realizing he can't discriminate against any one group, he advises his sales agent to be sure to set up a quota for Caucasian, Black, Chicano, and Asian buyers. Once the quota has been reached they should discourage any further sales to that racial group by adjusting the prices. If the developer follows this plan, he violates:A) - no fair housing laws. B) - the fair housing laws based on his ad campaign, but not the quota system. C) - the fair housing laws based on his racial quota system, but not the ad campaign. D) - the fair housing laws in both his ad campaign and racial quota system.
D) - the fair housing laws in both his ad campaign and racial quota system.
A profit-and-loss statement would include all of the following EXCEPT:A) - operating expenses. B) - gross profit. C) - interest charges. D) - value of inventory.
D) - value of inventory.