Navigation » List of Schools » The CE Shop » Sales License » 45-HR. CA REAL ESTATE PRACTICE COURSE » Summer 2021 » Practice Exam Sales License (2)
Below are the questions for the exam with the choices of answers:
Question #1
A 4522
B 4525
C 4524
D 4523
Question #2
A The risk that is directly related to leverage
B The risk that the property has a bad location
C The risk that the required return on investor capital will not be met
D The risk that an investor cannot secure financing at an affordable rate
Question #3
A Being a new licensee is a distinct advantage.
B Most brokers prefer not to hire new licensees.
C Very few licensees are selected; it’s highly competitive.
D You are interviewing the broker as much as the broker is interviewing you.
Question #4
A A quick closing
B Waive appraisal
C An escalation clause
D Full price or over full price
Question #5
A Client
B Customer
C Seller
D Buyer
Question #6
A “Without a written representation agreement, I don’t represent you.”
B “All buyers are required to sign buyer representation agreements.”
C “Buyer representation agreements don’t obligate you in any way.”
D “You won’t owe as much commission if we work under an agreement.”
Question #7
A Robert is a dual agent
B Robert must also be an attorney
C Robert is in violation of agency law
D Robert is breaching his fiduciary duty
Question #8
A The seller hires a contractor to repair holes in the wall and informs the buyer that the contractor never provided a receipt.
B The seller repairs holes in the walls and documents that they were completed six days before close.
C The seller hires a contractor to repair holes in the wall starting the day the buyer is scheduled to verify final condition.
D The seller forgets to repair holes in the wall and places a plant in front of them before the buyer arrives for final verification of property.
Question #9
A One in which only the person who finds the buyer gets paid
B One in which anyone can find the buyer, but the listing agent still gets paid
C One in which the price is negotiable within a specified range
D One in which there’s no end date
Question #10
A Exclusive right to sell
B Exclusive agency
C Net listing
D Exclusive right to collect commission
Question #11
A Home inspectors
B Divorce attorneys
C Criminal attorneys
D Game wardens
Question #12
A Send a mailer
B Spend more than usual on marketing campaigns
C Buy display advertising
D Join a team
Question #13
A Personal contact number
B City and state where the brokerage is located and jurisdiction
C License number and responsible broker’s identity
D Personal photo
Question #14
A Provisionary clause
B Broadcast clause
C Marketing clause
D Multiple listing clause
Question #15
A The seller wants to move up the expiration date because the property sold right away.
B A buyer has made an offer below list price and the seller is willing to take that offer.
C The seller wants to raise the list price after receiving no offers.
D The seller wishes to lower the list price to encourage more offers.
Question #16
A Manufacturing
B Leisure
C Retail
D Healthcare
Question #17
A Federal regulations require that REOs be sold below market value.
B There are no agent commissions to pay for REO transactions.
C There are special government financing programs for purchasing REOs.
D Lenders and their shareholders don’t like to keep properties on their books longer than necessary.
Question #18
A The asset is worth more because of capital improvements.
B The asset is worth less because the economy took a downturn.
C Investors can take a business deduction for annual depreciation.
D The owner/investor is making less income from the property than previously.
Question #19
A Condemnation
B Litigation
C A second round of mediation
D Arbitration
Question #20
A They require no down payment.
B They’re always in demand.
C Because they’re rare, and therefore valuable.
D They need somewhere to live.
Question #21
A Quarterly
B Monthly
C Weekly
D Yearly
Question #22
A Including the brokerage name and main phone number, in addition to a licensee’s own name and phone number on an advertisement
B Preparing a written agreement that accurately states a purchase price
C Making a reasonable effort to ensure all parties to a written agreement have a copy of the agreement
D Preparing a written agreement that falsely states a purchase price
Question #23
A The seller must reduce the price to the appraised value.
B A new appraisal will always be ordered.
C The parties may choose to negotiate the difference.
D The buyer will be forced to terminate the contract immediately.
Question #24
A It does not contain laws
B Laws related to theft and other crimes
C Laws related to the sale of securities
D Laws related to real property contracts, such as contract of sale or land installment contracts
Question #25
A $36,000
B $24,000
C $3,000
D $48,000
Question #26
A Are larger properties
B Are relatively rare, so tenants compete for available units
C Are relatively liquid
D Require a larger down payment, so there is less to finance
Question #27
A The closer one, because gas is expensive.
B The closer one, because he can meet clients at the office easier.
C The commuting one, because he will spend most of his time in the field.
D The commuting one, because most business is conducted in the car.
Question #28
A Older units are bigger and more unsightly.
B They were hoping for window air conditioning.
C The unit may need to be replaced.
D Central air conditioning isn’t a sustainable technology.
Question #29
A Bathrooms and hallways
B The difference between usable square footage and rentable square footage
C Stairwells and lobbies
D Vacant units
Question #30
A With material defects
B Under warranty
C As-is
D By default
Question #31
A Michael may follow Felicity’s instructions and show the house to anyone except Hispanics.
B Michael may inform Felicity of fair housing laws.
C Michael is allowed to prepare an advertisement which states, “Home for sale, $140,000. No Hispanics.”
D Michael is allowed to tell any prospective buyers and their agents that Felicity will not sell to Hispanics.
Question #32
A The Central Intelligence Agency
B The Federal Bureau of Investigation
C The Internal Revenue Service
D The California Department of Real Estate Commissioner
Question #33
A Other Costs
B Inspections, Reports, and Certificates
C Government Requirements and Retrofit
D Escrow and Title
Question #34
A 21
B 10
C Three
D 30
Question #35
A Yes, because this constitutes the illegal practice of real estate.
B Yes, because she should meet them in person before working for them.
C No, this is how agents work with buyers.
D No, this is how all agents work.
Question #36
A They must receive 70% return on their investment
B That 70% of their income will go toward expenses
C That 70% of renters will leave in the first two years
D The purchase price shouldn’t be more than 70% of the repaired value
Question #37
A In a trust fund account or neutral escrow
B In the firm’s safe or safety deposit box until closing
C In the firm’s general business account, with a ledger entry for the client’s name, labeled “trust fund”
D In an interest-bearing account
Question #38
A Say nothing
B Inform all parties to the transaction
C Inform the seller
D Terminate her agency relationship
Question #39
A Business
B Financial
C Leverage
D Capital
Question #40
A Cancellation of Listing
B Termination of Buyer Agency
C Seller Instruction to Exclude from the MLS
D Modification of Terms
Question #41
A Fully inform the seller about the dangers of reduced market exposure
B Negotiate a higher commission, as there is a greater burden on the agent to find a buyer
C Prepare advertising for social media and local newspapers
D Advertise the listing on the MLS
Question #42
A Rooms open to interior of the building
B Closer to parking
C More amenities
D Nothing
Question #43
A An owner refuses to sell a house to an unmarried couple on the basis of his religious beliefs that having a sexual relationship outside of marriage is sinful.
B An owner refuses to sell a house to a same-sex couple that offered less than the asking price.
C A landlord refuses to rent to a couple that have been on the waiting list for four months, because when they were called and given notice of their approval, the tenants refused to pay the security deposit.
D A landlord refuses to rent to a tenant who has poor credit and unstable employment history.
Question #44
A Laura must stay with Bill for at least two years before she transfers brokerages.
B Laura may leave the brokerage and join another at any time.
C Laura likely won’t get a salary for six weeks.
D Laura will be put on a three-month probation.
Question #45
A Try to be all things to all people.
B Work a regular work week (Monday through Friday, 9 a.m. to 5 p.m.).
C Seek out a broker who does a lot of business.
D Work hard and stick with it.
Question #46
A Monica should tell all prospective buyers that the seller has HIV.
B Monica cannot tell others about Brian’s HIV status.
C Monica should purchase Brian’s property.
D Monica should not be the listing agent for her friend.
Question #47
A Potential gross income
B Effective gross income
C Net operating income
D An operating statement
Question #48
A Static
B Dynamic
C Cold
D Hot
Question #49
A Escrow can’t disburse the money without your signature
B Escrow is bonded
C Escrow is FDIC insured.
D My company will cover any losses
Question #50
A 2048
B 2029
C 2039
D 2019
Question #51
A Saturday, August 3
B Thursday, August 1
C Wednesday, July 31
D Friday, August 2
Question #52
A They don’t want to seem pushy.
B They are afraid they’ll be asked to reduce their commissions.
C They want wealthier clients than their friends and family.
D Their brokers don’t want them marketing to that audience.
Question #53
A Tell the buyer’s agent that the sellers aren’t reviewing offers until next week.
B Hold on to the offer until after your buyer sees the property.
C Present the offer to the seller right away and don’t mention the other potential buyer.
D Present the offer to the seller and tell him you have another potential buyer who wants to see the property next week.
Question #54
A Foreign Real Estate Tax Withholding Act (FRETWA)
B Tax Withholding for Foreign Holding Act (TWFHA)
C Foreign Investor Real Estate Investment Tax (FIRE-IT)
D Foreign Investment in Real Estate Property Tax Act (FIRPTA)
Question #55
A Imagine themselves in the home
B Move in more quickly
C Identify furniture they want to purchase from the sellers
D Spot the high-value items
Question #56
A Maintaining the documents in the brokerage files for at least five years from the closing date
B Giving a copy of the agreement to her client after it’s signed
C Destroying all documents carrying a client signature in a manner approved by DRE
D Sending a copy of the agreement to DRE
Question #57
A Documents that must be submitted to the DRE
B Documents that must be stored electronically
C Records that must be provided to clients upon request
D Records that must be held for at least three years
Question #58
A Carpeted halls and stairways
B Improved acoustics
C Sufficient cooling and heating
D Access to restrooms
Question #59
A To get leads on available properties
B To get the client better deals on title insurance
C To get referrals to other investors
D To get the client better deals on settlement costs
Question #60
A Yes, but only if his taxes remain unpaid for five years.
B No, California law prohibits foreclosure for a tax lien.
C Yes, they can foreclose immediately.
D No, a property tax lien doesn’t give the lien holder the power of sale.
Question #61
A Ask Jerry to verbally disclose material defects to potential buyers
B Ask Jerry to repair the issues that she found
C Use the proper disclosure forms
D Show the issues that she noted to a home inspector, if the buyer uses one
Question #62
A 10
B 11
C Nine
D 20
Question #63
A Door-to-door in low-income neighborhoods
B Handyman companies
C Home decorator conventions
D “Subject to court approval” listings in the MLS
Question #64
A “If you make a profit on the sale of this property, you’ll have to pay a capital gains tax when you file your income taxes.”
B “Your title will reveal any tax liens, so the title company will review it to ensure that isn’t an encumbrance.”
C “When you’re buying your next home, the transfer will trigger a reassessment for property tax purposes.”
D “Property taxes are prorated so you’ll only pay for the time you owned the property.”
Question #65
A Interview other new licensees
B Interview several managing brokers
C Request an income guarantee
D Call the Better Business Bureau
Question #66
A She should use money from her savings account to make the purchase instead of using her credit card.
B She should wait until after she closes on the home and then use a home equity line of credit to make her furniture purchases.
C She should use store credit instead of her credit card to purchase the furniture since the interest rate is probably lower.
D It’s important to avoid spending money on non-essentials or adding to her debt load prior to closing on the loan.
Question #67
A Leave it on the market for another three days to allow time for even more offers to come in.
B Accept a middle-of-the-road offer, but on the condition that no home inspection repairs will be performed.
C Have all buyers submit their “highest and best” offer, then help the seller decide which offer is most appealing.
D Reject the offers and put the home back on the market for the amount of the highest offer.
Question #68
A Fair housing laws
B The Federal Trade Commission Act
C Licensing laws
D The Sherman Antitrust Act
Question #69
A Static
B Dynamic
C Environmental
D Capital
Question #70
A Retiree
B Trade-up buyer
C Trade-down buyer
D First-time buyer
Question #71
A The seller’s contact information
B A relatively vague description, so people want to come and see the details
C The seller’s bottom-line sales price
D At least one photo
Question #72
A A comparison of before-tax cash flow to cash invested
B Trading international currency
C Making money hand over fist
D Net income after taxes are deducted
Question #73
A Ensuring that the letter was given to neighbors on both sides of the street
B Providing the letter in multiple languages for non-English speakers
C Listing the property on the MLS
D Giving the letter to at least 20 neighbors
Question #74
A One year
B Five years
C 10 years
D Three years
Question #75
A Mortgage
B Balance
C Debit
D Credit
Question #76
A Broker
B Buyer
C Property manager
D Owner
Question #77
A It is void because it is not for a lawful purpose.
B It is voidable, because the consideration, as a percentage rather than a dollar amount, is not clearly stated.
C It is voidable, because Jesse probably signed it under duress.
D It is voidable, because Jesse is not mentally competent to sign a contract.
Question #78
A Their current home might be a potential listing for you.
B You won’t need to check their credit if they’ve qualified for a home in the past.
C Selling their home before purchasing a new one is more work for you and might not be worth your time.
D If they don’t, they’re probably wasting your time.
Question #79
A No, Yolanda can take legal action against the buyers at any time while she still owns the property.
B Yes, the buyer can only take legal action within six months of taking possession of the property.
C Yes, Yolanda should have canceled the contract within three days of receiving seller disclosures.
D No, Yolanda can take legal action at any time within two years after taking possession of the property.
Question #80
A Accounting
B Reasonable skill and care
C Disclosure
D Confidentiality
Question #81
A NAIC
B FDIC
C WNBA
D AARP
Question #82
A Eliminated
B Frozen
C Disbursed
D Reallocated
Question #83
A You should ask the buyers who walked away whether you can provide a copy.
B You should provide an inspection report, but only if specifically asked.
C You should provide an inspection report to all prospects, along with seller disclosures.
D You should disclose any adverse material facts, but you don’t have to provide the report.
Question #84
A What is your income?
B What is your tax bracket?
C Are you currently working with any other agents?
D Have you ever been convicted of any felonies?
Question #85
A Non-trust funds
B Trust funds
C Revenue
D Commission
Question #86
A “My listing agreements are generally 90-day contracts.”
B “My contract length is non-negotiable.”
C “The MLS requires us to have at least 90-day listings.”
D “With today’s market conditions, we could expect the house to take two months to sell. Let’s set a term of four months for our listing contract.”
Question #87
A Real Estate Seller Prohibition Act
B Real Estate Settlement Procedures Act
C Real Estate Society Protection Act
D Real Estate Standard Protection Act
Question #88
A Leverage
B Business
C Capital
D Financial
Question #89
A Deduct
B Depreciate
C Add
D Subtract
Question #90
A 1960
B 1900
C 1978
D 1945
Question #91
A She needs to get to work developing this model for herself
B The group seems bent on creating a tie-in arrangement
C This conversation seems to be turning into a discussion of market allocation
D This conversation sounds like it might become an antitrust violation
Question #92
A Conversion
B Earned interest
C Commingling
D Documentation
Question #93
A No, the commission must go through the agent’s broker.
B Yes, because she’s a close relative.
C No, the commission must go through the escrow company first.
D No, agents cannot accept commissions from immediate family.
Question #94
A Gene, a real estate professional, is purchasing a home for his personal use. He negotiates a reduction in the sales price in return for taking no commission from the seller.
B Jeanine agrees to charge no commission from her buyer’s purchase of a four-plex if the buyer agrees to pay Jeanine a 3% fee for each unit for which she finds a tenant after the sale.
C Rhoda loans Carl the money to catch up his mortgage payments in return for a listing agreement to sell Carl’s home for a 4% commission.
D Carma agrees to list Tera’s property for free if Tera signs an agreement to purchase her new home through Carma.
Question #95
A Unintentional misrepresentation
B Negligent misrepresentation
C Fraud
D Puffery
Question #96
A Fair housing
B Rule of reason
C Tying
D Per se
Question #97
A Weeks prior to closing
B The day after closing on the property to ensure proper transfer of title
C The day prior to closing
D At the closing
Question #98
A Both seller and broker are responsible.
B The responsibility lies solely with the listing agent and brokerage.
C The listing agreement does not account for responsibility in this area.
D The seller is solely responsible.
Question #99
A Multiple listing service
B Market listing service
C Membership listing service
D Maximum listing service
Question #100
A Obedience and loyalty
B Honesty and obedience
C Honesty and fairness
D Fairness and loyalty