Mini Quiz 1

1. As to mobile home sales, which of the following is true?
a. A mobile home must be at least two years old for a real estate agent to sell it.
b. A real estate agent can sell a mobile home in a rental park space.
c. A real estate agent can sell a mobile home with the land it is sited on.
d. Both b and c

2. One of the requirements for a real estate salesperson to be regarded as an independent contractor by the
IRS, is that the
a. salesperson be paid a salary.
b. salesperson not be responsible to a broker.
c. broker-salesperson contract states that the salesperson shall be treated as an
independent contractor for tax purposes.
d. salesperson not be supervised by the broker.

3. Brokers have liability to commission salespeople as to
a. unemployment insurance.
b. workers compensation.
c. minimum wage requirements.
d. all of the above

4. The purpose of a broker providing a sliding commission scale
that rises as sales volume increases is to
a. motivate salespeople.
b. retain top producers.
c. both a and b
d. neither a nor b

5. The following are all examples of abstract goals except
a. I will improve my communication skills.
b. I will obtain three new listings each month.
c. I will strive to improve my sales techniques.
d. I will become a better salesperson.

6. Which of the following is false as to the use of
goal-setting
a. Goals once set should never be changed.
b. You should tell someone about your goals.
c. Goals should be attainable.
d. Goals should be put in writing.

7. What are the advantages of a good time-management program?
a. increased income
b. improved efficiency
c. a release from time pressures
d. all of the above

8. Using time-management to increase income, you should realize that
a. you should concentrate more on possibilities than probabilities.
b. doubling A time activities should double your income.
c. you should divide your time equally between A, B, C and D category activities.
d. you should concentrate on D category activities before proceeding to B and C activities.

9. You can find out how things are done in your office by
a. studying your office procedure manual.
b. going on caravans.
c. checking the regulations of the Department of Real Estate.
d. reading the information on the back of your real estate license.

10. If you are going to be buying a new car for real estate sales, you should consider
a. a sports car to show you are a modern person.
b. as expensive a car as possible to impress others.
c. a full-sized, four-door car for easy entrance and exit.
d. a two-door model to control the passengers.

Mini Quiz 2

1. What is the best test to evaluate if an act is ethical?
a. The Golden Rule
b. Is it legal?
c. Are others doing it?
d. Is it in my best interests?

2. As to ethics, which of the following is correct?
a. If it is legal it is ethical.
b. If it is unethical it is illegal.
c. Ethics tends to precede the law.
d. Ethics and good business are not compatible.

3. The Real Estate Commissioner's suggestions for Professional
Conduct include that the agent
a. stay in close communication with clients or customers.
b. report violations of the real estate law to the Department of Real Estate.
c. submit all written offers in a prompt and timely manner.
d. all of the above

4. The Civil Rights Act that applied only to race was the
a. Civil Rights Act of 1968,
b. Civil Rights Act of 1866,
c. Unruh Act.
d. Rumford Act.

5. The Civil Rights Act of 1968 prohibits
a. blockbusting.
b. steering.
c. both a and b
d. neither a nor b

6. Advertising a home in an area occupied solely by members of a minority group only in newspapers
directed toward that minority group would be regarded as
a. redlining.
b. steering.
c. blockbusting.
d. subordination.

7. Redlining refers to
a. refusal to advertise in designated areas.
b. refusal to loan in designated areas.
c. refusal to list in designated areas.
d. refusal to cooperate with other agents in designated areas.

8. A broker may discriminate against a tenant who
a. has AIDS.
b. has a guide dog.
c. both a and b
d. neither a nor b

9. The California Act that prohibits discrimination by all California businesses is the
a. Unruh Act.
b. Holden Act.
c. Rumford Act.
d. Brown Act.

10. Redlining is prohibited by the
a. Unruh Act.
b. Holden Act.
c. Rumford Act.
d. Brown Act.

Mini Quiz 3

1. Real estate disclosure laws apply
a. uniformly to all real estate transactions.
b. primarily for 1-4 residential units.
c. to disclosures to principals only.
d. to buyer disclosure only.

2. A fiduciary relationship applies to a real estate licensee and to
a. his or her principal.
b. all parties the agent has dealings with.
c. buyers only.
d. the Department of Real Estate.

3. The proper order of the steps taken in agency disclosure is
a. elect, confirm, disclose.
b. confirm, elect, disclose.
c. disclose, elect, confirm.
d. elect, disclose, confirm.

4. A selling agent must comply with agency disclosures to the buyer
a. prior to showing property.
b. before the buyer executes an offer.
c. prior to qualifying the buyer.
d. upon delivery of the seller's acceptance.

5. The seller is required to provide the buyer a Real Estate Transfer Disclosure Statement when the sale
involves
a. a vacant lot.
b. a commercial building.
c. a three-unit residential building.
d. all of the above

6. An agent's inspection under Easton vs. Strassburger (as codified by state statutes) applies to
a. visual inspections.
b. accessible areas only.
c. 1-4 residential units.
d. all of the above

7. An agent need not disclose to a buyer that
a. a former owner had AIDS.
b. there was a death by murder or suicide on the property more than three years previous.
c. both a or b
d. neither a nor b

8. The Seller Financing Disclosure Statement provided to both buyer and seller provides
a. credit terms.
b. a warning as to balloon payments.
c. disclosure of deferred interest.
d. all of the above

9. The earthquake safety disclosure statement
a. is voluntary.
b. applies to 1-4 residential units.
c. must be signed by buyer and seller.
d. both b and c

10. Compliance with environmental hazards disclosure requires
a. chemical tests of the soil for all dangerous contaminants.
b. the buyer sign that they have received a booklet entitled Environmental Hazards: A Guide for
Homeowners and Buyers.
c. that the seller post a bond to cover damages by hazards discovered at a later date.
d. that the Alquist-Priolo Act be complied with.

Mini Quiz 4

1. A reverse directory allows an agent to have
a. the legal description from the address.
b. the owner's name from the tax number.
c. the occupant's name from the address.
d. the address from the occupant's name.

2. A general rule for direct-mail canvassing is:
a. The letter's effectiveness will be increased if it indicates the sender will follow up with a phone call.
b. Test the market before a mass mailing.
c. Don't use window envelopes.
d. all of the above

3. A major reason owners attempt to sell without an agent is to
a. have a quicker sale.
b. save paying the commission.
c. avoid seller disclosures.
d. get a higher gross price.

4. Prospecting from legal notices can be effective. Which of the following is not a legal notice?
a. probate
b. evictions
c. For Sale by Owner
d. code violations

5. The "endless chain" refers to
a. always selling a new home to the seller.
b. asking every prospect to recommend another prospect.
c. prospecting your farm area on a continuous basis.
d. staying with a prospect until you have a contract.

6. The phrase "centers of influence" refers to
a. properties that set the neighborhood value.
b. institutions within an area that influence behavior.
c. the factor that makes a neighborhood cohesive.
d. influential people in the community.

7. In real estate, "farming" refers to
a. working an area for buyers and sellers.
b. delegating paperwork to others.
c. advertising by season.
d. using one period to list and another period to sell in a never-ending cycle.

8. A geographic farm could be a
a. particular subdivision.
b. particular ethnic group.
c. type of property.
d. special interest of buyers.

9. Non-geographic farms include
a. ethnic groups.
b. properties in close proximity.
c. a particular subdivision.
d. a particular mobile home park.

10. A non-geographic farm can be worked by
a. mail.
b. telephone.
c. both a and b
d. neither a nor b

Mini Quiz 5

1. A competitive market analysis would be least valuable in indicating market value for a
a. vacant lot.
b. condominium.
c. single-family residence.
d. commercial property.

2. As an indication of value, which would best indicate the market value of a home?
a. current listings for similar property.
b. similar properties sold within the past two years.
c. similar properties sold within the past three months.
d. listings that expired unsold.

3. Which of the following is a true statement in regard to selling time?
a. Since buyers seldom offer the list price, the list price has no effect on time to sell.
b. Properties listed above market value tend to sell faster than properties listed at prices closer to market
value.
c. Properties listed below market value tend to take longer to sell than properties listed at market value.
d. none of the above

4. The likelihood of a sale within 90 days is
a. increased by a list price below that indicated by the competitive market analysis.
b. decreased by listing above the market value.
c. both a and b
d. none of the above

5. In preparing estimated seller proceeds, you should remember that
a. since owners want to get as much as possible, you should underestimate costs so the net will be
greater.
b. owners who get less than they expected to receive from a sale are likely to be unhappy with you.
c. it is better to estimate costs a little on the high side than the low side.
d. both b and c

6. Serious buyers contact real estate agents because
a. agents have inventory.
b. they want to quickly locate property that meets their needs.
c. both a and b
d. neither a nor b

7. Benefits an owner receives by listing with an agent include
a. promotion and advertising paid by the agent.
b. qualification of prospects.
c. the benefit of multiple listing.
d. all of the above

8. A listing presentation manual should include
a. benefits of listing.
b. information about yourself.
c. information about your firm.
d. all of the above

9. If your firm is small, to obtain a listing when competing against a large firm you should emphasize that
a. you need it more than the large firm.
b. it is better to help small businesses.
c. you will work just as hard as the large firm.
d. because you concentrate on a small number of select properties, you are able to give more individual
attention to the property.

10. In describing sales successes, it would not be advantageous to point out that
a. your firm sells 50 percent of its listings.
b. listings with your firm have a 30 percent greater chance of being sold than the average for your local
multiple listing service.
c. the average time from listing to sale for your firm is 42 days less than the average sale in your multiple
listing service.
d. your average sale is at 94.5 percent of list price while the average for your multiple listing service is
87.3 percent.

Mini Quiz 6

1. To be enforceable, which element must be included in an exclusive right-to-sell listing?
a. consideration
b. writing
c. lawful purpose
d. all of the above

2. Which of the following listings does not require the agent to use diligence to locate a buyer?
a. exclusive agency
b. open
c. exclusive right-to-sell
d. net

3. Owner Adams has a listing in force with broker Baker. Owner Adams sold the house without the aid of
broker Baker. What kind of listing did broker Baker have if owner Adams has no commission obligation to
broker Baker?
a. open
b. exclusive agency
c. exclusive right-to-sell
d. either a or b

4. A listing where the selling agent is subject to disciplinary action for demanding a fee would be a
a. exclusive listing without a termination date.
b. open listing.
c. listing having a safety clause.
d. listing where the agent was not authorized to accept a deposit.

5. What type of listing is legal in California but is considered illegal in some other states?
a. exclusive agency
b. exclusive right-to-sell
c. open
d. net

6. Written notice that the amount of commission is negotiable is required in
a. every listing.
b. every residential listing.
c. every nonresidential listing.
d. listings of 1-4 residential units.

7. A broker never saw, talked to or corresponded with a buyer,
yet the broker earned a commission. What type of listing did the broker have?
a. Open listing
b. Exclusive right-to-sell
c. Exclusive buyer listing
d. Net listing

8. By initialing the dispute resolution clause in the exclusive right-to-sell listing (page 145) the seller and
broker agree to
a. waive their rights to arbitrate.
b. arbitrate disputes if directed to by the court.
c. binding arbitration of disputes.
d. nonbinding arbitration of disputes.

9. A buyer-listing can be an
a. open listing.
b. exclusive authorization to acquire real property listing.
c. exclusive agency listing.
d. any of the above.

10. What would be a word or words to use in a listing presentation that denotes a benefit?
a. cost
b. agency representation
c. listing
d. commission

1. The reason most mentioned by owners for not renewing listings is
a. price was too high.
b. commission was too high.
c. lack of communication from the agent.
d. condition of the property.

2. Instructions to an owner upon taking a listing should include all except
a. make up beds early in the day.
b. when property is shown, follow the agent closely and provide information to the prospective buyers.
c. make needed repairs.
d. avoid cooking with foods having strong and lasting odors.

3. The owner should understand the broker's advertising policy, including the fact that a(n)
a. broker that fails to advertise a property every week is not doing a proper job of advertising.
b. display ad should be used to impress home-seekers.
c. ad will cover every major feature of a house.
d. ad within a price range or area creates prospects for other homes in the price range or area.

4. If a listing is overpriced, the agent should suggest to the owners that
a. the house is not worth the price.
b. they extend the listing for a longer period as price is related to time to sell.
c. they adjust the price to the current market.
d. they agree to take less for their home.

5. A listing office typically gives 50 percent of the gross commission to the selling office and splits the
remainder with 40 percent to the broker and 60 percent to the listing salesperson. Salesperson Andrew's
listing was sold by another office for $189,500. Assuming a six percent commission, salesperson Andrew's
share would be
a. $11,370.00.
b. $ 5,685.00.
c. $ 2,842.50.
d. $ 3,411.00.

6. A property brief is a
a. flyer pointing out attractive features about a property.
b. settlement sheet issued on closing a transaction.
c. bare-bones classified ad on a property.
d. procedure for showing a property to prospective buyers.

7. First-time visits to new listings by groups of agents are commonly known as
a. caravans.
b. visitations.
c. firsts.
d. pre-showings.

8. The period that tends to be the most productive sales period
for listings is
a. the last 20 days of the listing.
b. the first 20 days of the listing.
c. the third month of a six-month listing.
d. the first month of the second listing extension.

9. An open house was held on a property needing many obvious repairs. The property was most likely
advertised as a(an)
a. model home.
b. fixer-upper.
c. family-oriented home.
d. estate.

10. Advantages of holding open houses include
a. locating prospective buyers.
b. obtaining listings from visitors.
c. showing owners you are working on their behalf.
d. all of the above

Mini Quiz 8

1. A billboard that states "Thomas Realty - A Name You Can Trust", would be regarded as
a. operational advertising.
b. institutional advertising.
c. specific advertising.
d. demand advertising.

2. The advertising acronym AIDA stands for
a. attention, interest, desire, action.
b. attention, interest, demand, action.
c. ask, inform, demonstrate, approve.
d. ask, interact, demonstrate, approve.

3. In real estate we have learned that
a. it is best to advertise properties in areas or price ranges where other properties are also available.
b. prospective buyers who respond to newspaper ads are likely to buy a property other than the property
advertised.
c. both a and b
d. neither a nor b

4. The best heading for a classified ad on a home would be
a. a blank space since it attracts attention.
b. the firm's logo.
c. the most desirable feature.
d. the name of the agent to call.

5. In advertising a fixer-upper property
a. it is best not to mention any problems with the property.
b. the worse you make the property appear, the greater your response is likely to be.
c. people are attracted to fixer-upper ads because they sense a bargain.
d. both b and c

6. Which statement is true of display advertising?
a. One large picture is generally more effective than several smaller pictures.
b. Most people read from the upper left to the lower right corner when looking at an ad.
c. More than two typefaces in an ad will likely have a negative effect on the ad.
d. all of the above

7. Which of the following statements is true as to display advertising?
a. Ads in an outside column will generate more interest than ads in an inside column.
b. Inclusion of white space serves to emphasize a message.
c. Lower case letters are easier to read than capital letters.
d. all of the above

8. Which promotion would have the lowest cost to the broker?
a. billboard
b. direct mail
c. press release
d. yellow pages of a telephone directory

9. In advertising, the real estate agent should know that it is illegal to
a. include credit terms.
b. conceal the fact that the advertiser is an agent.
c. use abbreviations such as "Agt." or "Bro." instead of the name of the firm.
d. all of the above

10. Which of the following is true as to the truth-in-lending law?
a. Agents must advertise their names and license status.
b. If the agent advertises the APR, the agent must include all credit terms.
c. Bait-and-switch advertising is a federal offense.
d. none of the above

1. When you receive for-sale sign inquiries you can assume that the caller
a. is satisfied with the general appearance of the home.
b. is satisfied with the area.
c. both a and b
d. neither a nor b

2. Telephone responses from a "For Sale" sign indicate what about the prospective buyer?
a. The caller can afford the home and area or they would
not have called.
b. The caller may want a lower priced property.
c. If the price quoted is too high, you can be sure the
caller will let the agent know.
d. none of the above

3. When a caller won't give a name, the best approach would be
a. "Would it be all right if I sent you some information and photos of that property and several others?"
b. "I'm sorry, office policy prohibits me from discussing any properties if I don't know with whom I am
talking."
c. "I will give you the address if you give me your name."
d. to hang up.

4. The front-end qualifying ratio is
a. the down payment divided by the purchase price.
b. the total monthly housing payment divided by the gross monthly income.
c. the total dollar costs to take possession.
d. none of the above

5. The back-end qualifying ratio is the
a. ratio of net income to PITI.
b. total monthly housing expenses plus monthly credit obligations divided by gross monthly income.
c. ratio of current rental costs to estimated housing costs.
d. the monthly gross income divided by the amount to be financed.

6. When showing a property to a prospective buyer, the agent should
a. show the prospective buyers homes they have listings for in order to please the owners of those
listings.
b. show buyers homes they cannot afford to impress them with the caliber of homes to which the agent
has access.
c. show unoccupied property first to give owner-occupants a chance to prepare for the showing.
d. have a hard and fast rule to never show more than three properties.

7. If members of a minority racial or ethnic group live in the neighborhood of a home you are showing
a. you must mention this to a prospective buyer.
b. failure to mention the presence of the group would make you liable for any damages the buyer
suffered.
c. both a and b
d. neither a nor b

8. Which of the following is an example of a "tie-down"?
a. "What would you use this pantry for?"
b. "This is an exceptionally large kitchen, isn't it?"
c. "Would you prefer to buy now or think it over?"
d. "Can you afford this house?"

9. In showing property an agent should never
a. allow buyers a chance to confer without being present.
b. allow the prospective buyers to bring along a friend or confidant.
c. try to overcome objections raised.
d. none of the above

10. When arriving at a property for a showing, if another agent is showing the property, you should
a. introduce yourself and your buyers to the other agent and go ahead with your showing.
b. ignore the other agent and go ahead with your showing.
c. tell your prospects that they had better act fast as your are sure the other party wants to buy the house.
d. wait to show the property until the other agent has left.

Mini Quiz 10

1. For effective communications it is best to
a. sell the item not the benefits.
b. provide sufficient facts so the receivers can form valid conclusions.
c. use technical terms wherever possible.
d. talk fast if the customer talks slowly.

2. An example of an open-end question would be
a. "Do you like this house?"
b. "Can you afford a $1,500 house payment?"
c. "What do you like about this neighborhood?"
d. "Is there any more information you would like?"

3. An example of a closed-end questions, would be
a. "Isn't this a large living room?"
b. "Whose bedroom would this be?"
c. "Would you use this room as a bedroom or a den?"
d. "What do you think of the floor plan?"

4. When dealing with a prospect who is silent, the best approach would be to
a. do all the talking yourself.
b. ask leading questions.
c. speed up your presentation.
d. remain silent to force the prospect to talk.

5. Motives for buying include
a. love of family.
b. health.
c. comfort and convenience.
d. all of the above

6. Disadvantages of home-ownership include all, except
a. appreciation.
b. risk.
c. lack of liquidity.
d. greater responsibility.

7. Which of the following should an agent regard as a buying signal?
a. a statement, "The price seems a little high."
b. reluctance to leave a property.
c. an inquiry as to when possession would be possible.
d. all of the above

8. In meeting a buyer's objections the agent should consider
a. welcoming the objections.
b. conceding before answering.
c. meeting objections half way.
d. all of the above

9. A sale would most likely be killed by
a. supporting statements with facts.
b. being over-eager to close.
c. appearing confident.
d. mentioning a potential objection before the customer does.

10. If a prospective buyer intends to occupy a single-family home as a residence, the agent should realize this
fact could have a direct bearing on
a. the date of occupancy.
b. damages should the buyer default.
c. the request for notice of default.
d. what will be regarded as personal property.

Mini Quiz 11

1. Selling real estate involves three separate sales. Which of the following is not one of the three?
a. selling the owner on giving a listing
b. selling the buyer on making an offer
c. selling the seller on an acceptance
d. selling the lender on making the loan

2. In making an appointment to present an offer, the agent should
a. let the buyer know the price so they can consider it before the agent arrives.
b. arrange to have all owners present for the presentation.
c. both a and b
d. neither a nor b

3. When presenting multiple offers the agent should
a. present them in the order received, obtaining an acceptance, rejection or counter-offer for each offer
before proceeding to the next offer.
b. present the firm's offer first and if rejected, then present the other offer(s).
c. keep in mind their first duty is to the owners, not to themselves or their firm.
d. let the owners know which offers provide the agent with the greatest benefits.

4. The three stages of presenting an offer include all of the following except
a. a history of the listing and your sales effort.
b. information about the buyers.
c. the offer itself.
d. why the owners should deal with your firm.

5. When an offer is received, the owner should be made aware that
a. a counter-offer really rejects the offer unless the buyer agrees to it.
b. once rejected, an offer cannot be accepted.
c. both a and b
d. neither a nor b

6. A purchaser who obtains owner-financing and fails to apply rent payments to the loan payments may be
guilty of
a. rent skimming.
b. misrepresentation.
c. conversion.
d. undue influence.

7. The seller's most common objections to an offer is
a. down-payment.
b. price.
c. personal property.
d. occupancy.

8. The sales price is really set by the
a. buyer.
b. seller.
c. broker.
d. appraiser.

9. An agent who receives an unreasonable offer on their principal's property should generally
a. return it to the offeror.
b. recommend to the owner to ignore it.
c. recommend to the owner to accept it.
d. recommend to the owner to counter the offer.

10. Which of the following would constitute an acceptance?
a. accepting an offer but changing the closing date.
b. accepting the offer but conditioning the acceptance on a different escrow office than specified in the
offer.
c. accepting the offer verbally with a promise of a later written confirmation.
d. none of the above

Mini Quiz 12

1. Which of the following is a true statement?
a. Primary financing refers to loans made directly by the lender to the borrower.
b. Secondary financing refers to the resale of existing loans.
c. both a and b
d. neither a nor b

2. Loans that meet the underwriting standards of Fannie Mae or Freddie Mac are known as
a. participation loans.
b. conforming loans.
c. portfolio loans.
d. institutional loans.

3. Which of the following is not an institutional lender?
a. commercial banks
b. savings and loan associations
c. mortgage companies
d. insurance companies

4. Mortgage companies differ from mortgage loan brokers in that mortgage companies
a. use their own funds to make loans.
b. service loans they make.
c. both a and b
d. neither a nor b

5. A loan whereby the borrower buys under a land contract would be a
a. Cal Vet loan.
b. DVA loan.
c. FHA loan.
d. all of the above

6. A loan that can be increased to an agreed upon limit would be a
a. wrap-around loan.
b. blanket loan.
c. open-end loan.
d. gap loan.

7. Which of the following loans is most likely to have the highest initial interest rate
a. adjustable rate mortgage.
b. 30-year-term amortized loan.
c. 15-year amortized loan.
d. 30-year loan due in 5 years.

8. The margin on an adjustable rate loan refers to the
a. loan index.
b. amount over the index the lender charges as interest.
c. periodic increases possible.
d. maximum that can be charged for the loan.

9. A rescission right until midnight of the third day after
signing is provided for by
a. the Truth-In-Lending Act.
b. FHA.
c. the Real Estate Settlement Procedures Act.
d. none of the above

10. RESPA applies to
a. federally related loans.
b. 1-4 residential units only.
c. both a and b
d. neither a nor b

1. The term "good funds" refers to
a. cash.
b. cashier's checks.
c. checks that have cleared.
d. all of the above

2. Which of the following are exempt from licensing under the escrow law?
a. banks
b. attorneys
c. savings associations
d. all of the above

3. An escrow licensee is prohibited from
a. paying a referral fee to anyone other than his or her own employees.
b. accepting escrow instructions having blanks that are to be filled in after the instructions are signed.
c. both a and b
d. neither a nor b

4. When a change is required to escrow instructions, both buyer and seller must agree to
a. a codicil to the escrow.
b. an escrow rider.
c. amend the escrow instructions.
d. any of the above

5. An escrow would not prorate
a. title insurance costs.
b. taxes.
c. interest.
d. insurance.

6. Escrow costs are prorated based on a
a. 30-day month.
b. 360-day year.
c. both a and b
d. neither a nor b

7. The purchase price would be
a. a debit on the buyer's closing statement.
b. a credit on the seller's closing statement.
c. both a and b
d. a credit on the buyer's closing statement and a debit
on the seller's statement.

8. A standard policy of title insurance protects the purchaser from all except
a. forgery in the chain of title.
b. changes in the zoning.
c. an unknown spousal interest.
d. lack of capacity of a grantor.

9. The extended coverage policy offers protection covering all of the following except
a. eminent domain.
b. unrecorded loans.
c. rights of parties in possession.
d. claims that a correct survey would have revealed.

10. The Preliminary Title Report
a. provides insurance coverage until the title insurance policy is issued.
b. is merely an offer to insure.
c. provides extended coverage for lenders.
d. none of the above

Mini Quiz 14

1. An ad valorem tax describes
a. real property taxes.
b. taxes based on a person's ability to pay.
c. special assessments.
d. none of the above

2. The dates November 1st, December 10th, February 1st and April 10th relate to
a. federal income taxes.
b. real property taxes.
c. inheritance taxes.
d. sales taxes.

3. Proposition 13 provided for
a. newly acquired property to have a maximum basic tax levy of one percent.
b. property taxes to be increased up to two percent each year.
c. assessed value of property acquired before 1978 to be reduced to the amount shown in the 1975 tax
roll.
d. all of the above

4. Which proposition makes it possible for taxpayers 55 years or older to transfer current base-year value of
their principal residence to a replacement home within the same county?
a. Proposition 13
b. Proposition 58
c. Proposition 60
d. Proposition 90

5. The California Homeowner's Exemption for property taxes is
a. $75,000
b. $7,000
c. $4,000
d. $1,000

6. Nonresidential real estate purchased since 1987 must be depreciated using
a. 39 years for the property life.
b. the straight-line method.
c. both a and b
d. neither a nor b

7. Requirements for a valid 1031 exchange include which of the following?
a. The property must have been held for productive use in a trade or business or for investment purposes.
b. Exchange property must be of like kind.
c. both a and b
d. neither a nor b

8. To have a valid delayed exchange
a. the exchange property must be identified within 45 days.
b. the exchange must be completed no more than 180 days after transfer of exchanged property.
c. both a and b
d. neither a nor b

9. Tax benefits of a principal residence include all of the following except
a. 1031 exchange.
b. deductibility of interest.
c. deductibility of taxes.
d. universal exclusion.

10. A married couple sells their principal residence of 30 years for $650,000. Their adjusted cost basis is
$80,000. How much of their gain would be taxable?
a. $650,000.
b. $570,000.
c. $70,000.
d. none of the gain.

Mini Quiz 15

1. A property manager who lives on the property and is employed by the owner, would be a(n)
a. accredited property manager.
b. resident manager.
c. licensed property manager.
d. certified property manager.

2. A property manager would know that Section 8 housing refers to
a. military-based housing.
b. an FHA home-purchase plan for renters.
c. a subsidized rent program for low-income tenants.
d. county-owned housing projects.

3. Types of property requiring property management include
a. industrial parks.
b. office buildings.
c. apartments.
d. all of the above

4. A common fee arrangement for commercial property managers, would be
a. a percentage of the net.
b. a percentage of the gross.
c. a minimum fee.
d. a combination of b and c

5. A lease for a definite period of time, would be an
a. estate for years.
b. estate from period to period.
c. estate at will.
d. any of the above

6. A lease stipulating that the tenant pays a fixed monthly rental and the landlord pays all other property
expenses, would be a
a. net lease.
b. gross lease.
c. percentage lease.
d. ground lease.

7. 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
a. recapture clause.
b. exculpatory clause.
c. subordination clause.
d. defeasance clause.

8. Security deposits for unfurnished residential rentals cannot exceed
a. one month's rent.
b. two month's rent.
c. three month's rent.
d. none of the above

9. Which of the following describes a sublease?
a. The entire leasehold must be transferred.
b. The original lessee is secondarily liable and the person in possession is primarily liable under the
original lease.
c. The sublessee is a tenant of the original lessee.
d. none of the above

10. A lease that needs no notice for termination, would be a(n)
a. percentage lease.
b. estate for years.
c. periodic tenancy.
d. gross lease.