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California Real Estate - Practice > Chapter 1 > Flashcards

Chapter 1 Flashcards

1
Q

The real estate marketplace is a/an …….. marketplace?

a. Efficient
b. Even
c. Stratified
D. Stagnate

A

C. Stratified

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2
Q

Commissions are always negotiable?

a. True
b. Fals

A

A. True

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3
Q

Most new home buyers purchase using cash…..?

A. True
B. False

A

B. False

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4
Q

Which of the following carries workers compensation insurance…….?

A. real estate salespersons
B. buyers
C. Real estate brokers
D. Sellers

A

C. Real Estate Brokers

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5
Q

Broker commissions are typically stated as a ….?

A. Flat fee
B. Percentage of the assessed value
C. Percentage of the listing price
D. Percentage of the sale price

A

D. Percentage of the sale price.

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6
Q

If the overall commission in a transaction is 6%, and the seller/buyer broker commission split is 50/50, what would the buyer broker’s commission be for the transaction ….?

A. 1.5 %
B. 2%
C. 3%
D. 6%

A

C. 3%

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7
Q

The overall commission for a transaction is 6%. The commission split between the seller’s and buyer’s broker is 50/50. the commission split between the seller’s broker and their real estate agent in the transaction is also 50/50. What would the seller’s broker’s real estate agent commission be for the transaction…?

A. 1.5%
B. 2%
C. 3%
D. 6%

A

A. 1.5%

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8
Q

If a property sells for a $500,000 and the seller’s broker commission is 6% how much will the broker earn from the transaction…?

A

B. $30,000

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9
Q

Which of the following should be considered when choosing a broker…?

A. Location
B. Commission Split
C. Training
D. All of the Above

A

D. All the Above

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10
Q

According to the IRS, real estate agents are …..?

A. Principals
B. Clients
C. Independent Contractors
D. Employees

A

C. Independent Contractors

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11
Q

Since a real estate agent operates as an independent contractor, the agent’s sponsoring broker is NOT required to withhold any income taxes….?

A. True
B. False

A

A. True

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12
Q

As a new licensee, what is the most important aspect in choosing a broker…?

A. Advertising
B. Number of agents in the office
C. Desk fee
D. Training

A

D.

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13
Q

An agent’s compensation for performing the duties of an agency is known as a ….?

A. Salary
B. Commission
C. Referral fee
D. Kickback

A

B. Commision

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14
Q

In addition to commission splits, brokers may make money from which of the following….?

A. Subscription fees
B. Desk Fees
C. Processing fess
D. Insurance fees

A

B. Desk Fees

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15
Q

New agents typically work better in an office environment….?

A. True
B. False

A

A. True

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16
Q

Real estate is cyclical….?

A. True
B. False

A

A. True

17
Q

Real estate licensees are required to do…. in order to renew their license?

A. Prospecting
B. Sales training
C. Continuing education
D. A minimum number of closings

A

C. Continuing education

18
Q

Which of the following issues a real estate license in California….?

A. California Association of Realtors
B. California Real Estate Commission
C. National Association of Realtors
D. California Bureau of Real Estate

A

D. California Bureau of Real Estate

19
Q

High performing agents may demand a higher commission split with their sponsoring broker….?

A. True
B. False

A

A. True

20
Q

In order to use the title Realtor, a licensee mush be a member of the …..?

A. California Division of Brokers
B. National Association of Realtors
C. National Institute of Realtors
D. California Bureau of Real Estate

A

D. California Bureau of Real Estate

21
Q

New licensees are required to become members of the NAR….?

A. True
B. False

A

B. False

22
Q

The California Bureau of Real Estate has the power to do which of the following…?

A. Issue a license
B. Suspend a license
C. Revoke a license
D. All of the above

A

D. All of the above

23
Q

This refers to a person who acts for another but who sells final results and whose methods of achieving those results are not subject to the control of another….?

A. Employee
B. Partner
C. Client
D. Indpendent contractor

A

D. Independent Contractor

24
Q

A real estate salesperson must work under a sponsoring broker……?

A. True
B. False

A

A. True

25
Q

A real estate salesperson can sell which of the following real property types……?

A. Luxury homes
B. Time-shares
C. Condominiums
D. All of the above

A

D. All of the above

26
Q

In a buyer’s market, there is an excess of inventory…?

A. True
B, False

A

A. True

27
Q

Any home that is not newly constructed is considered a…..?

A. Secondary home
B. Depreciated home
C. resale home
D. used home

A

C. Resale home

28
Q

Most home purchases are now started online…?

A. True
B. False

A

A. True

29
Q

A seller who must sell is known as a ……?

A. Reluctant seller
B. Motivated Seller
C. Patient Seller
D. Opportunistic seller

A

B. Motivated Seller

30
Q

What is Commission?

A

An agent’s compensation for performing the duties of the agency; in real estate practice, a percentage of the selling price of property, percentage of rentals, etc. A fee for services.

31
Q

What is an independent Contractor?

A

A person who acts for another but who sells final results and whose methods of achieving those results are not subject to the control of another.

California Real Estate - Practice (15 decks)

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