1. An advantage of the multiple listing service is that it
a. requires set commissions.
b. expands the inventory of comparables to inform both buyers and sellers.
c. shifts the commission responsibility to the buyer.
d. prohibits overpriced listings.
2. A real estate broker generally would be
a. an employee of the owner.
b. an independent contractor.
c. supervised by a principal.
d. none of the above
3. Brokers have liability as to their commission salespersons in respect
to
a. minimum wage laws.
b. unemployment compensation.
c. worker's compensation.
d. all of the above
4. A sliding scale of commissions serves the purpose of
a. providing higher rates to lower producers to keep them in real estate.
b. retaining top producers.
c. motivating salespersons to greater success.
d. both b and c
5. Which of the following would be an exact goal?
a. I will work harder next month.
b. I will make 20 telephone calls to homeowners every day.
c. I will be better prepared for my listing presentations.
d. I will significantly reduce my wasted time.
6. The best test as to whether an action is ethical is to
a. ask if everyone else is doing it.
b. ask yourself if the end justifies the means.
c. apply the Golden Rule.
d. seek an attorney's help to determine if it is legal.
7. A realist is a
a. woman broker.
b. member of the National Association of Realtors¨
c. member of the National Association of Real Estate Brokers.
d. none of the above.
8. Jones vs. Mayer was a U.S. Supreme Court case that upheld the
a. Civil Rights Act of 1866. c. Civil Rights Act of 1968.
b. Civil Rights Act of 1964. d. Rumford Act.
9. The Civil Rights Act of 1964 covers prohibited discrimination as
to
a. all housing.
b. any real estate transaction.
c. housing where there is any federal assistance.
d. government owned or managed housing.
10. The Civil Rights Act of 1968 has been expanded to provide discriminatory
protection as to
a. sex. c. familial status.
b. physical and mental handicaps. d. all of the above
11. Inducing persons to list or sell by the fear that minority groups
entering the area will decrease values,
would be
a. steering. c. redlining.
b. blockbusting. d. subordination.
12. The Suggestions for professional conduct contained in the Regulations
of the Real Estate Commissioner
a. set forth duties imposed by law.
b. are intended as grounds for disciplinary action.
c. both a and b
d. neither a nor b
13. Adult-only community designations can be proper if
a. at least 80 percent of the units have one occupant 55 or older.
b. the units are solely occupied by disabled persons.
c. both a and b
d. neither a nor b
14. The handicapped can alter rental units for their reasonable use.
They can be required to
a. post a bond.
b. increase their security deposit to protect the landlord.
c. either a or b
d. neither a nor b
15. The three-step disclosure process for agency disclosure includes
all, except
a. evaluate. c. elect.
b. disclose. d. confirm.
16. A real estate transfer disclosure statement is required for
a. the sale of a five-unit apartment property.
b. the sale of a vacant lot.
c. the sale of commercial property.
d. none of the above
17. Agent inspection requirements apply to
a. all residential property.
b. one-to-four residential units.
c. all improved property.
d. all real-property sales without exception.
18. As to agent disclosure, an agent must disclose
a. a death on the property by murder even after three years.
b. that a prior owner had AIDS.
c. both a and b
d. neither a nor b
19. For the sale of 1-4 residential units, a statement must be filled
out and signed by both buyers and sellers.
This statement concerns
a. earthquake safety. c. zoning changes.
b. flood hazards. d. water quality.
20. The purpose of the California Subdivided Lands law is to
a. protect purchasers from fraud.
b. protect the environment.
c. provide local control for new subdivisions.
d. make certain new developments appear on the tax rolls.
21. A reverse directory aids in canvassing for listings as you can readily
obtain the
a. legal description from the address.
b. occupant's name and telephone number from the address.
c. address from the occupant's name.
d. telephone numbers from the occupant's name.
22. Newspaper leads for listings include
a. "For Sale by Owner" ads.
b. rental ads for single-family homes.
c. offers to trade property.
d. all of the above
23. The idea of the endless chain refers to
a. referrals.
b. the fact that most sellers become buyers and most buyers become
sellers.
c. the constant turnover in real estate.
d. none of the above
24. An example of a non-geographical farm would be
a. working with a particular ethnic group.
b. working with buyers and sellers of income residential property.
c. working with properties zoned for horses.
d. all of the above
25. The relationship of selling time to list prices above or below the
price indicated by the Comparative Market
Analysis indicates
a. property listed at prices below the price indicated by the Competitive
Market Analysis can expect
to have a shorter selling time than property listed above the Competitive
Market Analysis figure.
b. property listed at prices above the price indicated by the Competitive
Market Analysis can expect
a longer selling time than properties listed below the Competitive
Market Analysis price.
c. both a and b
d. neither a nor b
26. What type of listing is not a bilateral contract because the broker
is not obligated to use diligence to
procure a buyer?
a. open listing.
b. exclusive agency listing.
c. exclusive right-to-sell listing.
d. net listing.
27. A valid listing of real estate must
a. be in writing.
b. include the essential element of a contract.
c. both a and b
d. neither a nor b
28. An agent would not always be required to give an owner a copy of
an
a. exclusive right-to-sell listing. c. exclusive agency listing.
b. open listing. d. all of the above
29. A safety clause in a listing provides for
a. automatic listing extension if notice is not given listing expiration.
b. automatic listing extension if escrow is opened prior to listing
expiration.
c. the agent being able to cooperate with other agents.
d. none of the above
30. Instead of using the term "listing" when dealing with an owner,
a more positive approach would be to talk
about
a. agency representation. c. commission agreement.
b. costs to sell. d. seller's obligations.
31. An owner should be informed by the listing salesperson
a. to stay close to prospective buyers who view the home.
b. to volunteer information so that they need not be asked.
c. both a and b
d. neither a nor b
32. An owner is most likely to react negatively to a reasonable
offer received
a. ten days after listing. c. 120 days after listing.
b. 60 days after listing. d. 240 days after listing.
33. Advantages to calling prospective buyers as soon as you obtain a
new listing, are
a. buyers tend to get more excited over new listings.
b. it creates immediate traffic, showing the owners you are working
on their behalf.
c. both a and b
d. neither a nor b
34. Advertising that is designed to sell the office name would be
a. institutional advertising .
b. specific advertising.
c. classified advertising.
d. display advertising.
35. Examples of personal advertising of a salesperson would be
a. name tags. c. car signs.
b. business cards. d. all of the above
36. Classified ads differ from most other forms of real estate ads in
that they
a. include adjectives.
b. are sought out by readers looking for property.
c. are the least cost-effective of all ads.
d. all of the above
37. Some general rules for display advertising include
a. people tend to read from the upper left corner to lower right corner.
b. one large picture is generally more effective than several small
pictures.
c. white spaces emphasize the message.
d. all of the above
38. Salespeople advertising services for which a license is required
must
a. identify the name of the broker employing them.
b. pay for the ad in advance.
c. also have a broker's license.
d. none of the above
39. The initials "APR" in a real estate ad stand for
a. average property return.
b. annual percentage rate.
c. average percentage rate.
d. approximate percentage rate.
40. In handling a telephone inquiry on a property, you should do all
except
a. obtain the caller's name and telephone number.
b. give all the information you have on the property.
c. try to close with an appointment.
d. find out what the caller is interested in and why
41. When a caller will not give a name, professional salespersons will
a. tell the caller they will hang up if the information is not supplied.
b. ask if they can mail the caller some information on the property.
c. answer any questions and respect the caller's privacy.
d. give only minimal details and tell the caller they must come to
the office for more information.
42. A front-end qualifying ratio of 28 percent means that
a. total housing costs cannot exceed 28 percent of gross income.
b. long-term debt cannot exceed 28 percent of gross income.
c. gross income must exceed total housing costs by 28 percent.
d. income must be at least 28 percent of total housing costs.
43. Buyers should understand that three things can happen when they
make an offer. They include all, except
a. acceptance. c. rejection and forfeiture of deposit.
b. rejection and return of deposit. d. a counteroffer.
44. In showing property, an effective and professional sales technique
would be to
a. involve the children of the prospective buyer.
b. call attention to outstanding features.
c. avoid technical terms.
d. all of the above
45. Which of the following is a closed-end question?
a. "Do you want a home with a fireplace?"
b. "How would you use this workroom?"
c. "Why do you feel you need four bedrooms?"
d. "What is it about this area that you like?"
46. Rational buying motives include
a. long-term savings. c. benefits.
b. appreciation in value. d. all of the above
47. Emotional buying motives include
a. love. c. social approval.
b. fear. d. all of the above
48. Disadvantages of home ownership include
a. restricted mobility. c. risk.
b. greater responsibility. d. all of the above
49. Buying signals can be
a. actions. c. facial expressions.
b. words. d. any of the above
50. When a salesperson takes for granted that the prospect wants to
buy and so completes the deposit receipt
form, that salesperson is using the
a. positive-choice close. c. fear-of-loss close.
b. assumptive-close. d. narrative close.
51. Ways to kill a sale include
a. talking too much. c. talking too fast.
b. using high-pressure tactics. d. all of the above
52. A closing technique that involves a story of a similar situation
that a third party can verify is a(n):
a. positive-choice close.
b. assumptive-close.
c. narrative closing.
d. inducement closing.
53. A real estate sale generally involves three separate sales. Which
of the following is not one of these three
sales?
a. selling the owner on a listing.
b. selling the buyer on an offer.
c. selling the seller on an acceptance.
d. selling the escrow on closing.
54. The fact that buyers often have second thoughts about buying is
known as
a. buyer's remorse. c. negative motivation.
b. subliminal rejection. d. positive choice.
55. The primary objections to offers by sellers concern
a. price.
b. occupancy.
c. home warranty plans and title insurance.
d. escrow.
56. Secondary financing refers to
a. loans from small lenders.
b. short-term loans until permanent loans can be arranged.
c. second trust deeds or mortgages.
d. none of the above
57. Agencies engaged in the secondary mortgage market include the
a. Federal National Mortgage Association (FNMA).
b. Government National Mortgage Association (GNMA).
c. Federal Home Loan Mortgage Corporation (FHLMC).
d. all of the above
58. Non-conforming loans
a. are not eligible for sale to Fannie Mae or Freddie Mac.
b. generally have higher interest rates than conforming loans.
c. both a and b
d. neither a nor b
59. Institutional lenders include all, except
a. commercial banks.
b. savings associations.
c. life insurance companies.
d. mortgage loan brokers.
60. Non-institutional lenders include all, except
a. mortgage companies. c. commercial banks.
b. mortgage loan brokers. d. pension funds.
61. Which of the following is not a conventional loan
a. a loan insured by FHA. c. both a and b
b. a guaranteed DVA loan. d. neither a nor b
62. A permanent loan taken out after the construction loan, is known
as a
a. gap loan. c. bridge loan.
b. take-out loan. d. saving loan.
63. Loans having initially lower interest rates than 30-year fixed loans
include
a. 15-year fixed loans. c. both a and b
b. renegotiable-rate mortgages. d. neither a nor b
64. In comparing adjustable-rate mortgages, a borrower should consider
a. how often the interest rate may be adjusted.
b. whether there is a periodic cap on interest adjustments.
c. whether the ARM has an overall interest rate cap.
d. all of the above
65. A buyer who expects to remain in a home for only a few years would
most likely prefer
a. to pay a higher interest rate if the loan origination fee was lower.
b. a loan without a prepayment penalty.
c. both a and b
d. neither a nor b
66. Who can change signed escrow instructions?
a. Buyer and seller
b. Broker
c. Buyer or seller
d. Any of the above
67. A standard policy of title insurance covers all, except
a. undisclosed spousal interests.
b. forgery.
c. lack of capacity of a grantor.
d. matters that would be revealed by a correct survey.
68. An extended coverage policy of title insurance covers all, except
a. coverage offered by the standard policy .
b. off-record easements.
c. rights of parties in possession.
d. liens placed by the insured.
69. The California proposition that allows property to be transferred
between parent and child without
reassessment for tax purposes, is
a. Proposition 13. c. Proposition 60.
b. Proposition 58. d. Proposition 90.
70. Proposition 60 allows a person to transfer the current base-year
value (for tax purposes) of their principal
residence to another residence providing
a. the home owner is age 55 or over.
b. both properties are in the same county.
c. both a and b
d. neither a nor b
71. What is boot?
a. unlike property given to even out an exchange.
b. debt relief.
c. either a or b
d. neither a nor b
72. Jane, who has lived in her home for 6 years, got married last month
and gave her husband one-half interest
in the home. If they sell the home next month, the maximum exclusion
from taxation on the gain would be
a. $125,000.
b. $250,000.
c. $500,000.
d. $1,000,000.
73. CAL FIRPTA requirements, when the seller is not a U.S. citizen,
require the buyer to withhold
a. three and one-third percent of the purchase price.
b. ten percent of the purchase price.
c. thirty-three percent of the purchase price.
d. none of the above
74. Taxpayers with an adjusted gross income of less than $100,000, can
use real estate losses to shelter active
income up to
a. $10,000. c. $ 50,000.
b. $25,000. d. $100,000.
75. Large high-rise buildings were made possible by the
a. use of structural steel. c. electric elevator.
b. development of the automobile. d. both a and c
76. The acronym IREM stands for
a. Independent Real Estate Managers. c. Industrial and Residential
Estate Managers.
b. Institute of Real Estate Management. d. none of the above
77. IREM's professional designation "CPM" stands for
a. certified property manager. c. consumer protection marketing.
b. commercial property manager. d. corporate property manager.
78. The designation Accredited Management Organization (AMO) is given
to a company that must
a. have property management as a primary activity.
b. have at least one CPM in charge.
c. both a and b
d. neither a nor b
79. Duties of a property manager typically include
a. establishing a rental schedule which will bring the highest yield
consistent with good economics.
b. merchandising the space and collecting the rents.
c. supervising all purchasing.
d. all of the above
80. A property manager wears many hats, among which are
a. merchandising specialist. c. leasing expert.
b. accounting specialist. d. all of the above
81. A property manager does not make policy or handle rentals. The manager
most likely manages
a. condominium associations. c. office property.
b. industrial property. d. a shopping center.
82. Property management fees could typically be
a. flat fees.
b. a minimum amount plus a percentage of the gross.
c. leasing fees.
d. any or a combination of the above
83. A tenancy that automatically renews itself in the absence of a notice
to terminate, would be a(n)
a. estate for years. c. estate at sufferance.
b. a periodic tenancy. d. estate at will.
84. A tenancy which has a definite termination date, would be a(n)
a. estate for years. c. estate at will.
b. estate at sufferance. d. periodic tenancy.
85. A tenancy where no agreement was made as to rent or time period
but where possession was given with the
permission of the owner, would be a(n)
a. estate at sufferance. c. estate for years.
b. tenancy at will. d. periodic tenancy.
86. A tenant who remains after the expiration of an estate for years
without the owner's permission, would have
a(n)
a. tenancy at will. c. estate for years.
b. estate at sufferance. d. periodic tenancy.
87. A typical percentage lease would provide for rent as a
a. percentage of the net. c. gross amount.
b. percentage of the gross. d. both b and c
88. A lease which gives the tenant responsibility for paying the taxes
and property insurance, would most
likely be a
a. net lease. c. gross lease.
b. percentage lease. d. holdover lease.
89. To be valid, a lease must
a. be in writing if for over one year.
b. include an adequate description of the leased property.
c. show the amount of rent payment.
d. all of the above
90. After termination of tenancy, the landlord must return any deposit
or portion of the deposit that the tenant
is entitled to within
a. seven days. c. twenty-one days.
b. fourteen days. d. thirty days.
91. A lease clause whereby the tenant agrees to relieve the landlord
from all liability for injury or property
damage resulting from the condition of the property or negligence of
the landlord is called a
a. non-interference clause. c. holdover clause.
b. hold-harmless clause. d. lease option.
92. In the absence of an agreement, the landlord has a right of entry
a. in cases of emergency.
b. when the tenant consents to entry.
c. when the entry is during normal business hours after a
reasonable notice to make necessary or agreed repairs.
d. for any of the above
93. A residential landlord has an implied warranty of habitability.
The landlord must ensure at a minimum that
a. plumbing is in proper working order.
b. heat, lights and wiring work and are safe.
c. floors, stairways and railings are in good condition.
d. all of the above
94. At a minimum, residential landlords must ensure that
a. when rented, the premises are clean and free of pests.
b. areas under lessor control will be maintained.
c. the roof does not leak and no doors or windows are broken.
d. all of the above
95. Occupants of residential property are responsible under the terms
of a typical lease for
a. keeping the living unit clean and sanitary.
b. disposing of garbage and other waste in a sanitary manner.
c. avoiding defacing or damaging property.
d. all of the above
96. Residential tenant responsibilities also include
a. using property only for its intended lawful purpose.
b. paying rent on time.
c. abiding by rules and regulations.
d. all of the above
97. Other than by expiration of a lease term, termination may be made
a. by the tenant for violation of the landlord's duty to place the
tenant in quiet possession.
b. by the tenant for the landlord's failure to repair.
c. by the tenant on eviction by the landlord.
d. any of the above
98. In comparing a sublease with an assignment of the lease
a. the assignee is primarily liable under the lease in an assignment.
b. a sublessee has no direct liability to the lessor.
c. both a and b
d. neither a nor b
99. Other than by expiration of the lease term, termination may be made
a. by either party on destruction of the premises.
b. by the landlord on the use of the premises for unauthorized purposes
or abandonment of the
premises by the tenant.
c. by either party on breach of a material condition of the lease.
d. any of the above
100. An eviction of a tenant by a landlord could be considered retaliatory
if made within 180 days of the tenant
a. complaining to the landlord about the habitability of the premises.
b. complaining to a public agency about building defects.
c. lawfully organizing a tenant association.
d. any of the above