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45 Cards in this Set
- Front
- Back
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Errors and Omissions insurance is meant to protect whom from liability? a. brokers b. agents c. both a and b d. neither a or b |
c. both a and b |
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A brokers fiduciary relationship with principal means that he or she: a. owes a duty of the highest care and confidentiality to the principal b. is always entitled to financial compensation from the principal c. is related to the principal d. all of the above
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a. owes a duty of the highest care and confidentiality to the principal |
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Which of the following is a disadvantage of sole proprietorship? a. all profits accrue to the owner b. limited liability on the part of the owner c. unlimited liability on the part of the owner d. ease and low cost of the organization |
c. unlimited liability on the part of the owner |
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The illegal mixing of a client's and brokers funds is called: a. collating b. commingling c. blending d. tax evasion |
b. commingling |
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In an effort to cultivate new clients, an agent regularly updates a neighborhood about real estate activities and values. This neighborhood is called a: a. geographical farm b. geographical subdivision c. prospecting field d. field of dreams |
a. geographical farm |
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The AIDA formula applies to real estate: a. financing b. record keeping c. advertising d. all of the above |
c. advertising |
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The term APR refers to: a. annual percentage rate b. average percentile rate c. approximate percentage rate d. none of the above |
a. annual percentage rate |
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The advertising of real estate credit is regulated by: a. Federal Trade Commission (FTC) b. Trust in lending act c. Regulation Z d. All of the above |
d. all of the above |
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A non-listing broker with whom the listing broker must share a commission if he or she sells the property is called a: a.. cooperating broker b. competitive broker c. substitute broker d. all of the above |
a. cooperating broker |
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The relationship between a principal and an agent/broker is called an: a. friendship b. agency c. freehold estate d. commission partnership |
b. agency |
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The initials "MLS" refer to a: a. multiple listing service b. mortgage loan service c. multiple lending service d. none of the above |
a. multiple listing service |
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An appointment whereby a broker tries to persuade a prospective seller to list a property with that broker is called: a. an open house b. a listing interview c. a hard sell meeting d. pre-qualifying interview |
b. a listing interview |
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When we say that handwritten instructions supersede preprinted instructions in a listing agreement, the word supersede means preprinted instructions are: a. less important than b. of equal value to c. more important than d. none of the above |
c. more important than |
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According to the safety clause in CAR's listing agreement to be enforceable. the original listing broker must provide the seller with a written list of his or her prospects within: a. 3 calendar days of the listing agreement b, 30 days of the listing expiration c. 3 months of the listing expiration d. none of the above |
a. 3 calendar days of the listing agreement |
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A home warranty protects the buyer for up to one year, fro the failure of: a. a stove or dishwasher b. roofing c. plumbing and electrical d. all of the above |
d. all of the above |
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The seller must disclose to the buyer any repairs made within the last: a. 6 months b. 2 years c. 5 years d. none of the above |
c. 5 years |
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Outdated features, like a single car garage are considered: a. functional obsolescence b. economic obsolescence c. incurable d. all of the above |
a. functional obsolescence |
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If a prospect calls the office about a property that is already sold, the quickest way for a salesperson to recommend similar properties is to consult: a. with another agent or broker b. the classified ads of that day's paper c. a prepared switch sheet d. none of the above
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c. a prepared switch sheet |
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The practice that attempts to align an environment so as to live in harmony and balance with nature is known as: a. holistic decorating b. feng shui c. fundamentalism d. ghost busting |
b. feng-shui |
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In California, it's customary to arrange for a title insurance company to: a. conduct a title search b. prepare a preliminary report c. issue a policy of title insurance d. all of the above |
d. all of the above |
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When writing an offer for an client a broker: a. has a duty to suggest how a buyer should take title b. is never allowed to suggest how to take title c. should not suggest how to take title unless they are a tax attorney or accountant d. none of the above |
c. should not suggest how to take title unless they are a tax attorney or accountant
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The purchase agreement and joint escrow instructions allows the buyer to check a box indicating that after inspecting the property, he or she may: a. cancel the agreement b. request that the seller make the repairs c. force the listing broker to make the repairs d. both a and b are correct |
d. both a and b are correct |
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The agency regarding real estate agenc relationships disclosure form must be presented and signed by: a. buyer and seller b. buyer only c. seller only d. real estate commissioner
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a. buyer and seller |
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If a professional physical inspection waiver is declined the broker: a. should withdraw from the transaction b. should have the parties sign a broker-generated inspection waiver c. is required by law to have the parties sign an inspection waiver d. all of the above
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b. should have the parties sign a broker-generated inspection waiver
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In the wood destroying pest inspection form, section 1 indicates evident active infestation. What does section 2 indicate? a. conditions that may lead to infestation b. no repairs are requested or required c. buyer and seller refuse a part of inspection d. none of the above |
a. conditions that may lead to infestation |
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The Disclosure regarding agency real estate agency relationships should be signed: a. before any contract is written b. after the contract is written c. in the middle of the negotiations to sway the signers to benefit the agent d. none of the above |
a. before any contract is written |
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Before making an offer the buyer needs to know the total cost of the purchase, including the monthly payments. The form used to calculate this estimate is called the: a. estimated sellers cost b. estimated buyers cost c. estimated commissions cost d. none of the above |
b. estimate buyers cost |
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You must provide the seller with a signed copy of the buyers inspection advisory and: a. have it signed and initialed by the seller b. return a copy to the selling agent c. both a and b d. none of the above |
c. both a and b |
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When the offer is not accepted in its entirety: a. counteroffers are made back and forth between the parties b. the price of the property is always increased c. the agent is always entitled to a commission d. the property is permanently removed from the MLS |
a. counteroffers are made back and forth between the parties |
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The buyer's affidavit is signed by the buyer to affirm that: a. the buyer is acquiring the property for use as a residence b. the sales price does not exceed $300,000 c. both a and b d. none of the above |
c. both a and b |
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If you have more than two counteroffers, it is preferable to: a. start from scratch' b. give up the sale c. double your commission d. none of the above |
a. start from scratch |
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FIRPFTA refers to the: a. Federal investment protection act b. foreign investment in real property tax act c. foreign interest in regulation of transfer accounts d. federal inspection of Real Property tax accounting |
b. foreign investment in Real property tax act |
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Who signs the request for repairs form? a. the buyer b. the seller c. both a and b d. none of the above |
b. the seller
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The notice to buyer to perform: a. is more specific than the notice to seller to perform b. gives the right to the seller to cancel escrow within 24 hours c. both a and b d. none of the above |
c. both a and b |
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A few days prior to closing of the sale, a verification of property condition form is used to confirm that: a. the property is basically in the same condition as when the offer was made b. the agreed upon repairs and/or alterations have been satisfactorily performed c. both a and b d. none of the above |
c. both a and b |
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Which of the following is a negative consideration to investing in real estate? a. monthly income b. potential for appreciation c. lack of liquidity d. all of the above |
c. lack of liquidity |
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In California, an onsite property manager is required for apartment complexes with: a. 2 or more units b. 10 or more units c. 15 or more units d. 16 or more units |
d. 16 or more units
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A loan for the construction period only is called: a. interim financing b. permanent financing c. buildable financing d. all of the above |
a. interim financing |
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Commercial banks make the majority of their funds available for: a. high interest loans b. short term loans c. credit cards, automobile and construction loans d. all of the above |
d. all of the above |
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The total gross income a property is capable of producing at full occupancy, without any deductions for expenses is: a. probable gross income b. potential gross income c. present gross income d. all of the above |
b. potential gross income |
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Which of the following is a category of operating expenses for appraisal purposes? a. fixed expenses b. variable expenses c. reserves for replacement d. all of the above |
d. all of the above
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Which of the following are operating expenses that DO vary? a. fixed expenses b. variable expenses c. both a and b d. none of the above |
b. variable expenses |
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Sub chapter S corporation is taxed: a. only once b. twice c. unlimited times d. none of the above |
a. only once |
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The most preferred form of legal organization is: a. general partnership b. limited partnership c. unlimited partnership d. none of the above |
b. limited partnership |
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REIT stands for: a. real estate investment trust b. real estate interim trust c. real equity interest trust d. none of the above |
a. real estate investment trust |
