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27 Cards in this Set
- Front
- Back
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The Bureau of Real Estate can issue all of the following license, except: |
a) a corporate broker license b) a mortgage loan originator endorsement c) a partnership endorsement d) a salesperson license |
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What a real estate licensee employs a non-licensee, the licensee must be careful to make sure that: |
a) activities requiring a real estate license are performed only by the licensee b) the employee's activities are limited to those permitted by the Real Estate Guide to Non-Licensee Activities c) the non-licensee only discusses available properties but does not negotiate with parties d) the non-license accepts only advance fees, rather than commissions |
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If an unlicensed assistant is preparing advertising materials regarding loan programs, a broker: |
a) should write all the materials himself
b) only needs to provide the correct information to the unlicensed assistant c) needs to read the materials prepared by the unlicensed assistant prior to their publication d) needs to read and approved in writing the materials prepared by the unlicensed assistant prior to their publication |
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It is lawful for a broker to pay a referral fee to an unlicensed person as long as the: |
a) unlicensed person did nothing but bring the principal and licensee together
b) referral fee was disclosed to all parties c) unlicensed person is employed by the broker as a clerical employee d) referral fee is under $50 |
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Responsibility for publishing and recording a notice of sale lie with the: |
a) buyer's creditors b) transferor c) transferee d) seller |
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Jack and Jill sign a contract in which Jill grants the right to sell, exchange, or distribute goods or services using her particular marketing plan. This type of agreement is called a: |
a) franchise agreement b) market exchange agreement c) financing agreement d) securities and exchange agreement |
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When a business is sold, the buyer must obtain a Certificate of Clearance from the: |
a) Secretary of State b) State Board of Equalization c) Franchise Tax Board d) Department of Finance |
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A broker handles the sale of a property and receives payment from both parties. He did not disclose his dual agency to either party. As a result: |
a) he is subject to disciplinary action for violation of the license law b) he may not be able to receive commissions on the sale c) the sale may be rescinded by either party d) All of the above |
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A broker strongly suggest to his salespersons that they should all refer clients to the in-house closing company and associated loan officers, and that they will receive extra compensation for their referrals. The salespersons should: |
a) disclose to clients that the brokerage has an interest in the escrow and lending services and that the salespersons will receive compensation for recommending them b) do as the supervising broker instructs c) give referrals to other providers of closing and loan services instead d) obtain the written consent of clients before making the referral |
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A real estate agent arranged with a title company to receive a referral fee for every tittle policy she sent to them. The referral fees were: |
a) illegal under the Real Estate Law b) legal as long as they were disclosed to all parties c) legal as long as they were disclosed and no more than $50 d) legal as long as the title company did not charge more than the usual fee for the policy |
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A seller's agent misrepresents information about a property to a potential buyer. The agent is subject to: |
a) civil action by the potential buyer b) criminal prosecution c) disciplinary action by the Real Estate Commission d) All of the above |
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A real estate salesperson defrauds a client. The Real Estate Commissioner may: |
a) order compensatory damages up to the value of the client's losses b) order punitive damages up to a reasonable amount c) suspend or revoke the salesperson's license d) All of the above |
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A license committed several violations which resulted in civil judgments against him. What is the maximum amount of payments that can be made from the Recovery Account on behalf of the license? |
a) $10,000 b) $20,000 c) $100,000 d) $250,000 |
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Trust accounts are used to: |
a) facilitate the disbursement of funds and fees to the broker and escrow agent b) maximize the amount of interest earned on client funds c) keep broker funds and client funds separate d) protect the broker from an attachment lien |
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Which law prohibits an agent from committing fraudulent acts against his principal? |
a) Code of Civil Procedure b) Business and Professions Code c) Civil Code d) Criminal Code |
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A broker who has chosen to use an electronic recordkeeping system: |
a) must back up the records on a monthly basis b) must be able to provide a paper copy of the documents to the Bureau of Real Estate at the broker's expense c) must be able to submit documents in an electronic form compatible with the Bureau of Real Estate's system d) must store the electronic records indefinitely |
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When a licensee uses new materials to market, advertise, or negotiate an agreement involving an advance fee, the materials must be submitted to the Bureau of Real Estate within: |
a) five days before the agreement is signed b) ten days before the agreement is signed c) ten days after the agreement is signed d) fifteen days after the agreement is signed |
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A broker must a written employment contract with which of the following? |
a) All of her clerical support staff b) All janitorial or maintenance staff c) All salespersons d) All of the above |
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John lists his ranch for sale with Broker Otis, who offers to market the ranch by placing ads in a catalog of similar properties, at a cost of $100. John agrees and gives Otis an advance fee of $100. Otis must: |
a) account for the spending of the advance fee, but does not need to hold it in a particular way b) deposit the funds in his general business account c) keep the funds in a trust account and only disburse as needed to pay the marketing costs d) refund the fee, as all marketing expenses must be paid by the broker |
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Regarding trust funds, the broker must keep columnar records of disbursements with the name of party, amount paid, date of check, check number, and: |
a) address of subject property b) daily balance of bank account c) date check cleared d) interest earned |
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The Real Estate Law requires that brokers keep documents related to a real estate transaction such as a purchase agreement or a listing agreement, for at least: |
a) six months b) one year c) three years d) five years |
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"Desk cost," a brokerage operating cost of each salesperson, is calculated by: |
a) dividing the firm's operating expenses by the number of salespeople b) adding the total cost of furniture and office equipment and then dividing by the number of desks c) dividing the office rent cost by the number of salespeople d) calculating the annual and dividing by the number of salespeople |
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A licensed real estate salesperson places this ad in the newspaper: "Beautiful four-bedroom, three-bath with amazing bay views. Only $380,000. Call 555.1111. "Which of the following statements is TRUE? |
a) This is false advertising b) This is a blind ad c) Both of the above d) Neither of the above |
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If a licensee advertises property on behalf of another person, which of the following must be included in the advertisement? |
a) The broker's name as licensed b) The broker's address
c) The salesperson's name as licensed d) All of the above |
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A real estate licensee advertises through the World Wide Web. The Bureau of Real Estate's rules and regulations require barriers, policies, and procedures to ensure that contact and communications with persons responding to those ads are: |
a) with properly licensed agents b) restricted to setting up appointments for in-person contacts c) recorded and kept on permanent life d) monitored by the broker |
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Broker Barb places a newspaper ad stating that any seller who lists or buys a property through her will receive a $100 credit towards the broker's commission or purchase price: |
a) illegal, because a broker is not permitted to offer a credit to a seller b) illegal, because a broker is not permitted to offer a credit to a buyer c) illegal, because a broker cannot compensate a non-licensee for performing acts requiring a real estate license d) legal |
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A broker places an ad in the local paper that anyone who buys a property through him will receive a new refrigerator, value at $1000. This offer is: |
a) illegal, because the value of such a gift may not exceed $500 b) illegal, because such a gift is not permitted under any circumstances c) legal, as long as the gift offer remains open for at least six months d) legal, as long as all interested are informed of the gift |
