Real Estate Principles Unit 1

3: The real estate commissioner is appointed by the Governor and charged with

(b)enforcing the real estate law.

19: 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. (These ARE considered commigling: Cashing a deposit check (made out to the broker) and placing the money in the broker's safe, properly identified as being the deposit received from the buyer; 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; & Depositing money received by his/her client in the broker's personal account to pay miscellaneous expenses.)

11: Which of the following is required to operate as a Prepaid Rental Listing Service (PRLS) agent?

(b)A written contract with prospective tenants.

16: The most heavily weighted subject matter on the salesperson and broker examination is

(b)Practice of Real Estate and Mandated Disclosures.

26: All of the following are true about professional trade organizations EXCEPT

(b)They enforce the real estate law much like the real estate commissioner.

6: A salesperson tells his broker that he is quitting and plans to go to work for another broker. His present employing broker should

(b)give the salesperson his license and notify the Real Estate Commissioner immediately in writing.

15: Before taking the licensing examination, the applicant must successfully complete

(b)three college-level courses.

23: 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. By failing to explain the meaning and probable significance of the contingency in the offer, the agent has engaged in

(b)unlawful conduct.

27: The letters CMBA stand for

(c)California Mortgage Bankers Association.

21: All of the following are grounds for revocation or suspension of a real estate license EXCEPT

(c)accidentally overpaying taxes on a mobile home. (These ARE grounds: knowingly participating in the sale of a stolen mobile home; knowingly concealing a material fact in an application for registration of a mobile home; & failing to deliver a properly endorsed certificate of title from the seller to the buyer.)

9: The sale or lease of a business, including all or most of the assets or stock of the business is termed a

(c)business opportunity.

14: In addition to the prelicense education requirements to become a real estate broker, an applicant must also

(c)have been actively engaged as a real estate salesperson for at least two of the preceding five years, or equivalent.

4: According to the real estate law, a real estate salesperson must work under the supervision of

(c)his/her employing broker.

10: In the sale of a business, bulk transfer laws pertain to

(c)inventory.

25: What is the maximum amount that could be recovered from the Recovery Fund for one salesperson?

(d)$250,000 for any one licensee's conduct ($50,000 for a single transaction.)

12: Which of the following individuals are exempt from the real estate licensing requirements?

(d)All of the above: A person selling his or her own property, An attorney-at-law rendering services in the performance of his or her duties as attorney, & Anyone holding a duly executed power of attorney from the owner of property.

17: A licensee must take 45 hours of continuing education in order to renew the license. The 45 hours must include

(d)All of the above: Agency and Trust Fund Handling, Ethics and Fair Housing, & Risk Management and Management & Supervision.

22: A licensee cannot lead an owner of real property, during listing negotiations, to believe that the licensee is precluded from charging less than the commission or fee quoted

(d)All of the above: Due to the law; As a result of DRE regulations; or Because of the rules of an organization.

18: The process through which disciplinary action is taken by the Department of Real Estate starts with an audit or an investigation of the licensee's activities or alleged misconduct. What is the next step in the disciplinary process?

(d)If warranted, an accusation is filed against the licensee.

13: What type of background check does the Real Estate Commissioner and Appraisal Commissioner use?

(d)Late child support

8: Any individual who, for compensation or gain, takes a residential mortgage loan application or offers or negotiates terms of a residential mortgage loan application, must be licensed as a

(d)Mortgage Loan Originator (MLO).

7: The Real Estate Law DOES NOT require licensing for

(d)all of the above: the resident manager of an apartment building or complex, the manager of a hotel, & a real estate assistant who does not perform acts that require a real estate license.

20: A licensee was farming a non-integrated neighborhood which was next to an integrated neighborhood by telling the owners that if minority people moved into their neighborhood, their property values would go down. This is an example of

(d)both panic selling & blockbusting

2: California exercises its police power to promote the public

(d)health, safety, and general welfare.

24: According to the Real Estate Commissioner's suggestions for professional conduct, which of the following would be considered "desirable conduct?"

All of the above: Attempting to settle disputes with other licensees through mediation or arbitration; Submitting all written offers in a prompt and timely manner; & Never claiming to be an expert in an area of specialization when in fact you are not.

QUIZ 1: California's Real Estate Law is found in the

Business and Professions Code

QUIZ 2: Every real estate broker must be licensed by the Department of

Real Estate.

QUIZ 7: Which of the following does NOT require a real estate license?

Selling your own property

QUIZ 8: The applicant for a real estate salesperson's license must complete how many college-level courses before taking the licensing examination?

Three

QUIZ 6: The Real Estate Law allows a business opportunity to be sold

by a real estate licensee.

QUIZ 4: Under the Real Estate Law, a real estate salesperson works for a broker as an

employee

QUIZ 9: Real Estate licenses are renewable for a period of

four years.

QUIZ 3: A real estate broker's license may be obtained by any of the following except a

limited liability company (may be obtained by sole proprietorship, corporation or partnership)

5: A broker wanted to operate a real estate office under the fictitious name MLB Realty. Before operating under a fictitious name, the broker must

obtain a DRE license bearing the fictitious business name.

QUIZ 5: A real estate salesperson is supervised by

the employing broker only

QUIZ 10: When a real estate license expires, licensed activity must cease but the license may be renewed up to

two years later