CANVAS FINAL (CHAPTERS 8-15) Flashcards by Julian Gonda

How a house looks to a passerby when compared to the rest of the neighborhood is called:

curb appeal

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When selling an older home, disclosure must be made to the buyer of any insurance claims made within the last:

5 years

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This new type of barcode that consists of black modules (square dots) arranged in a square grid on a white background, which can be read by an imaging device is called a(n):

QR code

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A real estate salesperson’s license is valid for, and must be renewed every:

4 years

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The Federal Civil Rights Act of 1968 was based on the Supreme Court case of:

Jones v. Mayer

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Which of the following is an excellent resource for finding FSBOs?

craigslist.com

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Sources of obtaining listings may include:

a) foreclosures
b) FSBO ads
c) probate attorneys
d) all of the above

d) all of the above

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The maximum amount of personal funds a broker may keep in a trust account is:

$200

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Which of the following is TRUE concerning the employment relationship between the broker and salesperson?

a) a salesperson actively involved in real estate activities must be employed by a licensed broker.
b) The DRE considers a salesperson an employee of the broker, even if he or she is an independent contractor, for the administration of the real estate broker law.
c) The broker must carry worker’s compensation insurance for his or her salespeople.
d) all of the above.

d) all of the above

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For income tax purposes, the straight-line depreciation schedule for residential property is a minimum of:

27.5 years

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The illegal mixing of client’s and broker’s funds is called:

commingling

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In a listing agreement, handwritten or typed-in instructions:

are given precedence over preprinted instructions

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Which of the following is NOT an institutional lender?

a) commercial bank
b) private lender
c) life insurance company
d) savings bank

b) private lender

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Escrow is not officially closed until:

a) the documents are recorded
b) the buyer’s remaining money is received
c) all the conditions of escrow have been completed
d) all of the above

d) all of the above

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Funds received must be delivered to the escrow holder (opening escrow) within:

3 business days

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Which of the following is true regarding APR?

a) APR stands for Annual Percentage Rate
b) it makes comparing loans more accurate
c) it must be stated in any ad where financing terms are mentioned
d) all of the above

d) all of the above

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A fiduciary relationship includes:

a) obeying lawful instructions
b) honesty and utmost care
c) integrity and loyalty
d) all of the above

d) all of the above

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The process of getting listing information displayed on numerous other websites is called a(n):

listing syndication

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Which of the following are part of the CAR® “Listing Agreement Package”?

a) Disclosure Regarding Real Estate Agency Relationship (AD)
b) Seller’s Advisory (SA)
c) Wire Fraud and Electric Funds Transfer Advisory (WFA)
d) all of the above

d) all of the above

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Any person who is actively involved in a real estate transaction at the service of another, in the expectation of receiving a commission, must be:

DRE licensed

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Copies of exclusive listing agreements with a definite expiration date must be given to the person signing:

at the time the signature is obtained

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Which of the following statements is NOT true concerning listings in California?

a) listing agreements must be in writing
b) a listing is considered an employment contract between principal and agent/broker
c) listing agreements are also referred to as purchase contracts
d) a listing agent is bound of the laws of agency

c) listing agreements are also referred to as purchase contracts

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The Housing Financial Discrimination Act of 1977 prohibits:

redlining

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What entity requires that you include your salesperson or broker’s license number on all your real estate websites?

DRE

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An ad valorem tax is a tax that is charged:

in proportion to the value of the property.

The compensation for processing the loan and setting it up on the books, which is based on the loan amount, is:

a loan origination fee.

Which of the following refers to a business that has an actual physical presence?

brick and mortar

On the Residential Purchase Agreement form, the "Final Verification of Condition" occurs:

during the final walk-through

A real estate professional who assists agents and brokers in the processing of a real estate transaction all the way through escrow is known as a:

transaction coordinator (TC)

A salesperson who is actively engaged in professional real estate activities must be employed by:

a licensed real estate broker

The basic types of income producing properties include:

- industrial property - retail property - office buildings

In a purchase contract, which of the following are NOT usually considered a financing contingency? a) obtaining closing costs b) obtaining the down payment c) obtaining the deposit d) all of the above

d) all of the above

The most accurate real estate information online can be found on:

Realtor.com

Which of the following forms does a seller NOT receive a copy of in the CAR® Listing Agreement Package?

California Residential Purchase Agreement and Joint Escrow Instructions (RPA-CA)

The Disclosure Regarding Real Estate Agency Relationship (AD) is found:

- CAR® Listing Package | - CAR® Purchase Agreement Package

The rollback of California Property Tax to 1% of the selling price, plus 2% cumulative interest every year thereafter, was mandated by:

Proposition 13

The purpose of an electronic lockbox is to:

store keys to the property for agent access

Which of the following is NOT one of the three requirements for a valid escrow?

Legal advice

FSBO stands for:

For Sale By Owner

Which of the following is NOT a responsibility that can be designated to a transaction coordinator (TC)? a) initial the forms as approved when the broker is unavailable b) create a timeline of important dates c) remind the broker when deadlines are approaching d) if instructed, open escrow

a) initial the forms as approved when the broker is unavailable

Trust funds must be placed in which of the following within three business days of being received?

- a trust fund account - a neutral escrow depository - given to the principal

Ownership of a website (domain name) is treated legally most like:

real property (cyber real estate)

What agency regulates the issuance of liquor licenses in California?

California Department of Alcoholic Beverage Control (ABC)

Highly recommended liability insurance that protects the agent and broker from catastrophic lawsuits brought by the parties to a transaction and/or the public is called:

Errors and Omission Insurance

Which of the following is true concerning the Transfer Disclosure Statement (TDS) ? a) it must be provided to prospective buyers by sellers of 1-4 residential units b) the listing agent is not legally allowed to complete the entire statement c) a buyer has two years to sue an agent for failure to make proper disclosures d) all of the above

d) all of the above

An allowance for vacancies and uncollectible rents on financial statements is called:

vacancy factor

To earn a commission, a broker must produce a buyer who is:

willing, able, and ready

When selling real estate, the LEAST effective form of communication is:

letter (one-way)

Recommended by CAR® and signed by both buyer and seller, the Statewide Buyer and Seller Advisory (SBSA) contains which of the following? a) Investigation of Physical Conditions b) Seller's Rights and Duties c) Buyer's Rights and Duties d) all of the above

d) all of the above

The main purpose of our state regulators California Department of Real Estate (DRE) is to:

protect the public

What type of lease calls for an additional percentage of the lessee’s gross business income above the minimum fixed rent?

percentage lease

What social networking site uses messages of 140 characters or less?

Twitter.com

When writing effective ads, the formula "AIDA" refers to:

attention, interest, desire, action

When potential clients search the Internet for an agent, it’s important to have your name at the top of the list of agents on that website. This concept is called:

search engine optimization (SEO)

The Documentary Transfer Tax on consideration paid or money borrowed when transferring property is computed at:

$0.55 for every $500

Which large tech-savvy segment of the population should create the next house buying wave?

millenials

Which of the following are true regarding California rental property bed bug mandatory disclosures? A landlord is: a) prohibited from showing, renting, or leasing a unit known to currently have bed bugs b) required to give specific bed bug notice to new and existing tenants about the procedure for reporting suspected infestations to the landlord. c) prohibited from retaliating against a tenant who gives notice of bed bug infestation d) all of the above

d) all of the above

Escrow companies use a base month of:

30 days

A federal estate tax return must be filed for the “estate” of every deceased resident of the U.S. whose gross estate exceeds:

$10 million

In a trust deed, the party who is borrowing money is called the:

trustor (buyer)

Economic obsolescence is: a) means any upgrade may be an over-improvement for the neighborhood b) is not considered "curable" c) is the loss of value due to conditions outside the property itself (external) d) all of the above

d) all of the above

Under the buyer occupancy section of the Residential Purchase Agreement contract, the term "CE+3" means:

the buyer will take possession 3 days after the close of escrow

The Real Estate Settlement Procedures Act (RESPA) covers the sale of:

1-4 residential unit properties

Operating expenses that do not vary depending on the occupancy of the property are:

fixed expenses

In creating a Comparative Market Analysis (CMA), which of the following is important? a) only select recent sales of comparable properties b) only show listing prices of nearby homes c) only create a CMA if the buyer requests it d) none of the above

a) only select recent sales of comparable properties

To qualify for a broker’s license, a four-year bachelor’s degree from an accredited college with a major or minor in Real Estate is equal to:

2 years of experience

One of the most commonly used purchase contracts in California is the:

California Residential Purchase Agreement and Joint Escrow Instructions (RPA-CA)

When you are an agent for ONLY one party, representing either the seller OR the buyer it is called:

single agency

A resident manager: a) may also be referred to as an on-site manager b) may also be referred to as a building superintendent c) lives on the property d) all of the above

d) all of the above

An “open house” is a planned period of time during which a property for sale:

is held open to the public for viewing

“No Darn Fooling Around” (NDFA) is a method for remembering:

important property tax dates (November, December, February, April)

A seller of a business agrees not to open another business establishment similar to that being sold for six months. Such an agreement is called a:

Covenant Not To Compete

Before making an offer, which of the following forms should be provided to the buyer detailing the total cost of the purchase, including monthly payments?

Estimated Buyer's Costs

Which of the following government financial organizations only makes direct loans (loan contracts) to borrowers?

CalVet

An assistant working as an independent contractor may be expected to:

pay his or her own taxes

Regulations regarding the allowance of service dogs in rentals can be found under the:

Americans With Disabilities Act

The list of potential clients that an agent contacts on a regular basis is considered their:

sphere of influence

The seller must provide the buyer with a Lead-Based Paint Disclosure as an attachment to the purchase contract if the residential property was constructed:

prior to 1978

The form that is often referred to as “FIRPTA” is the:

Seller’s Affidavit of Nonforeign Status and/or California Withholding Exemption form. "FIRPTA" is the Foreign Interest in Real Property Tax Act

The Federal Home Loan Mortgage Corporation (FHLMC) is commonly known as:

Freddie Mac

The Continuing Education (CE) requirement to renew a license is:

45 hours every 4 years

Which CAR® form, provided to sellers before completing the required disclosure forms, advises sellers of the importance of disclosing what they know might affect the value and desirability of the property?

Disclosure Information Advisory

How many copies of a listing agreement must be provided to a couple who is considered “one legal entity"?

one

Which of the following is a lender’s extended coverage policy?

ALTA (American Land Title Association)

With regards to a new listing, a Transaction Coordinator, when paid an extra fee, may: a) review a listing agreement b) order and review the Natural Hazard Disclosure Report and Preliminary Title Report c) prepare a packet of Seller-Signed Disclosures, Advisories, and reports for fast delivery to buyer when the offer is accepted d) all of the above

d) all of the above

The MLS has an automatic email system that notifies a buyer when homes that fit his or her criteria come on the market called:

auto e-mail alerts

DRE licensees (brokers) who wish to negotiate mortgage loans to receive compensation for their services must have a(n):

Nationwide Mortgage Licensing System and Registry (NMLS) endorsement

Most property owners move on an average of every:

6-8 years

If one person sells a property to another person, a recorded public history of a specific property is known as a:

chain of title

Which of the following do home buying research on the Internet?

buyers

The total income a property is capable of producing at full occupancy, without any deductions for fixed and variable expenses, is known as:

potential gross income

When selling real estate, the MOST effective form of communication is:

direct contact (face-to-face)

The DRE salesperson’s exam: a) takes 3 hours 15 minutes b) requires a score of 70% to pass c) has 150 questions d) all of the above

d) all of the above

The amount of commission payable to a real estate broker is ordinarily based on:

the agreement of the parties

A tenant’s right to occupy real estate during the specified term of a lease is a:

less-than-freehold estate (or leasehold estate)

An escrow holder can be:

- an attorney - a corporation - a broker acting as an agent in a transaction

Which of the following lenders makes the majority of their funds available for short-term, high-interest loans like credit cards and automobile loans?

commercial banks

The annual percentage rate (APR) is: a) the amount financed plus interest rate, points, and loan fees b) the actual cost of borrowing money c) expressed as a percentage d) all of the above

d) all of the above

If the seller is not able or not willing to perform the terms and conditions agreed upon in the original Purchase agreement, the buyer’s agent forwards this form to the listing agent:

Notice to Seller to Perform

With what type of commission plan does a broker not charge a fee, but a commission based on a percentage of the selling price?

straight commission