RE Practice - Final
Which of the following is a measurable goal?
"I will obtain one listing per month."
Which of the following in an ad would trigger full disclosure under the truth-in-lending laws?
$1,000 down
A false statement in an advertisement could subject a broker to a
$1,000 fine and a one-year imprisonment.
Based on the information in this agreement, what tax document will Miles get at the end of the year from CCSF Realty?
1099
Which of the following loans is MOST likely to have the highest initial interest rate?
30-year-term amortized loan
A salesperson was found to have violated the do-not-call prohibition as to two solicitation calls to residential numbers. The maximum possible fine that could be imposed would be
32,000
What is the Natural Hazards Disclosure?
Anything pertaining to hazards that could affect someone's decision to live on a property that may have some of the following issues: special flood hazard area, dam inundation, high fire hazard, earthquake fault zone (seismic hazard). Also included could on that report could be supplemental disclosures pertaining Megan's law, any radiation exposure, Radon gas, airport zone, military ordnance and so on.
Which of the following statements regarding the truth-in-lending law is TRUE?
Bait-and-switch advertising is a federal offense.
Which of these is NOT one of the Fed's monetary policy tools?
Balance accounts
If Miles got into a serious car accident with a client in the car while showing houses, and that client sued Miles, claiming that he was driving recklessly, would CCSF Realty also be liable? Explain briefly why or why not by citing the contract.
CCSF Realty isn't liable because "Salesperson shall indemnify and hold Broker harmless from any loss or liability arising from performing services under this Agreement. This includes any claim for injuries or damages caused by Salesperson while traveling in Salesperson's automobile and performing services under this Agreement."
A loan in which the borrower buys under a land contract would be a
CalVet loan.
The case of Jones v. Mayer upheld the
Civil Rights Act of 1866.
What does it mean if roommates sign a lease with a landlord that holds them "jointly and severally" liable for rent?
Each roommate is responsible to make sure the entire rent amount is paid.
A 1984 California Supreme Court case that found real estate agents to be responsible for disclosing what the agent "should have known" following a reasonably competent and diligent inspection.
Easton v. Strassburger
The California Supreme Court case that required a real estate agent to make a reasonable visual inspection of the property was
Easton v. Strassburger.
Taking the contract into account, how does the Department of Real Estate see Miles' relationship to CCSF Realty?
Employee
Which government-backed loan program has a minimum down payment of 3.5%?
FHA
In San Francisco, a tenant has been on an apartment lease for a long time and only pays $1200 per month for a 3-bedroom apartment in the Mission where all the bedrooms are approximately the same size. This tenant can legally charge roommates $1,000 each.
False
The Fed's monetary policy goals do NOT include the promotion of
Low taxes
This law created a publicly accessible database of registered sex offenders.
Megan's Law
Monetary policy refers to what the Federal Reserve does to influence the amount of _________ and _________ in the US economy.
Money and credit
If an agent is part of a team at their brokerage, what information needs to be listed on all the agent's advertising?
Name of agent, license number of agent, name of team, name of brokerage
Does the following real estate ad violate any laws? 2 bedroom home located in quiet neighborhood. Close to major transportation and shopping centers. Property needs repairs and is priced to sell.
No
If Miles is injured on the job, can he file for Worker's Comp?
No
In an ad for a tiny one-bedroom house in a neighborhood with few families, which of the following language violates the Federal Fair Housing Act?
No children
Which of the following statements BEST describes a sublease?
None of the other responses is correct: The original lessee is secondarily liable, and the person in possession is primarily liable under the original lease. The sublessor is a tenant of the original lessee. The entire leasehold must be transferred.
Which of the following would be a non-geographic farm?
Property zoned for horses
A physical indication of a possible problem with a property.
Red flag
The California Fair Employment and Housing Act that predated the Civil Rights Act of 1968 was the
Rumford Act.
selling agent
Selling agent (despite the confusing name) is actually a buyer's agent and represents the interest of the property buyer in a transaction.
As an indication of value, which of the following would BEST indicate the market value of a home?
Similar properties sold within the past 3 months
single agency
Single agency means that a broker (agent) represents only interest of one party whether it be a seller or buyer but not both
Real Estate Transfer Disclosure Statement.
TDS
In order to obtain a listing, a salesperson told an owner that neighborhood crime would likely increase as members of a minority group had purchased homes in the area. This action would be a violation of
The Civil Rights Act of 1968.
What is a major reason why owners post For Sale by Owner signs on their lawns?
They want to avoid paying a commission.
The state act that specifically prohibits discrimination in business establishments is the
Unruh Act.
According to the contract, what are Miles' working hours?
Working hours are to be determined by Miles
Does the following real estate ad violate any laws? House for sale in a traditional neighborhood. Close to major transportation and Chinese community with lots of great restaurants. Property needs tender loving care. Owner willing to consider offers below the asking price. Bring all offers!
Yes
Does the following real estate ad violate any laws? House for sale in the Pinehurst neighborhood. Cozy 2-bedroom home. Close to major transportation and beautiful temples and churches. Property needs tender loving care. Owner willing to consider offers below the asking price. Bring all offers!
Yes
Does the following real estate ad violate any laws? House for sale in the Pinehurst neighborhood. Perfect home for a newlywed couple or family with two children. Close to major transportation. Property needs tender loving care. Owner willing to consider offers below the asking price. Bring all offers!
Yes
A Transfer Disclosure Statement must be provided to the buyer when the sale involves
a 3-unit residential building.
Owners should know that advertising
a different house can bring in a buyer for their house.
What was Easton v. Strassburger?
a famous case that defined the importance of disclosure as it pertains to material facts
Three brokers agreed that they would not let a third broker show any of their listings. This action would be regarded as
a group boycott.
A listing that raises ethical problems because of different objective of the principal and the agent would be
a net listing.
A geographic farm could be
a particular subdivision.
A clause in a percentage lease whereby the landlord has a right to regain the premises if the tenant fails to achieve a stated gross would be
a recapture clause.
A property manager would know that Section 8 housing refers to
a subsidized rent program for low-income tenants.
Under Easton, an agent's duty of inspection and disclosure covers
a visual inspection and known or should have known defects.
In advertising mobile homes, a broker should realize that
advertising must be withdrawn within 48 hours of the unavailability of the mobile home. a used mobile home cannot be represented as being new. if the down payment is covered by another loan, the broker cannot advertise "No Down Payment."
The safety clause in a listing deals with
agent's commission.
A lease for a definite period of time would be
an estate for years.
A lease that needs no notice for termination, would be
an estate for years.
A listing that could be given concurrently to more than one agent, with the selling agent entitled to the entire commission, would be
an open listing.
A red flag is
anything that would indicate a problem with a property.
In making an ethical evaluation, you should
apply the Golden Rule as an ethical test.
fiduciary
as it relates to trust, typically between an agent and a principal. Fiduciary duty is a duty that an agent takes on to act in principal's best interest, not his or her own, despite any commission or other factors they'd personally prefer.
The advertising acronym AIDA stands for
attention, interest, desire, action.
Seller financing disclosure statement includes
balloon payment information. if the buyer is to receive funds at closing. any negative amortization.
One of the requirements for a real estate salesperson to be regarded as an independent contractor by the IRS is that the
broker-salesperson contract states that the salesperson shall be treated as an independent contractor for tax purposes.
Regular viewings of new listings by other agents are known as
caravans.
A common fee arrangement for commercial property managers would be a
combination of minimum fee and percentage of the gross..
A comparative market analysis would be LEAST valuable in indicating market value for a
commercial property.
The most common reason for dissatisfaction by owners who give listings is related to
communication with the agent.
Loans that meet the underwriting standards of Fannie Mae or Freddie Mac are known as
conforming loans.
A listing agent has no agency duty to a buyer. The agent nevertheless has a duty to
disclose detrimental information about a property.
Fiduciary responsibility of an agent to the principal requires
disclosure. obedience. loyalty.
An agency relationship in which the agent represents two principals in their dealings with each other.
dual agency
The Bureau of Real Estate regards real estate salespersons as _____ of their employing brokers.
employees
A mandated disclosure that informs potential homeowners about environmental hazards located on and affecting residential property.
environmental hazards
A person in a position of trust and confidence who owes a certain loyalty to another, such as an agent to a principal.
fiduciary
A lease stipulating that the tenant pays a fixed monthly rental and the landlord pays all other property expenses would be a
gross lease.
A lease under which the tenant is to pay $2,000 per month for three years is a
gross lease.
The most significant portion of the competitive market analysis would deal with
homes sold in the last 90 days.
The attorney fee clause in a listing provides that
in the event of disagreements, the prevailing party is entitled to attorney fees.
A billboard that states "Thomas Realty—A Name You Can Trust" would be regarded as
institutional advertising.
listing agent
listing agent is an agent that works with the seller also known as seller's agent
A fact that would be likely to affect the judgement of a person to whom it is known.
material fact
The CAN-SPAM Act deals with
misleading unsolicited e-mails.
The term endless chain refers to
obtaining prospects from prospects.
In sales, the question "Would you want us to represent you under the agency agreement for 120 days or would you prefer 90 days?" would be considered to be a
positive choice trial closing.
Real estate disclosure laws apply
primarily for 1 to 4 residential units.
Confirmation of agency status takes place
prior or coincident with execution of deposit receipt.
Redlining refers to the illegal practice of
refusing to make loans in certain neighborhoods or areas.
The right to cancel a contract, restoring the parties to the same position they held before the contract was formed.
rescision rights
The Watch Out for Lead Paint notice applies to
residential units built prior to 1978.
The brokerage representing the seller in a residential sales transaction.
seller's agent
The brokerage representing the buyer in a residential sales transaction.
selling agent
An owner of rental property may properly
set reasonable occupancy limits.
An agency relationship in which the agent represents only one side of a transaction.
single agency
Brownfields is a term related to
soil contamination.
Internet property sites differ from billboards in that they are
sought out by readers.
Niche marketing refers to
specializing in a narrow segment of the market.
A broker arranged to show a Chinese buyer seven homes in Monterey Park because she knew that there were many Chinese residents in the area. The broker's decision could be regarded as
steering
Compliance with environmental hazards disclosure requires
the buyer sign that they have received a booklet titled Environmental Hazards: A Guide for Homeowners, Buyers, Landlords, and Tenants.
The best heading for a classified ad or first few words for a social media post about a home would be
the most desirable feature.
A salesperson may properly make an unsolicited listing call to a party on the do-not-call list when
the party had purchased a property from the salesperson a year prior to the call.
An e-mail solicitation must include all of the following EXCEPT
the price for property or services.
The visual property inspection required of agents applies
to 1 to 4 residential units.
If a broker's salespersons meet IRS criteria as independent contractors, the broker would be responsible for
worker's compensation insurance.