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intro real estate practice chap 1 > 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

Stratified

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2
Q

Commissions are always negotiable…?
AT (True)
BF (False)

A

true

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3
Q

Most new home buyers purchase using cash…?
A T (True)
B F (False)

A

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

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

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 (% Percent)
B 2 (% Percent)
C 3 (% Percent)
D 6 (% Percent)

A

3 (% Percent)

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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’s commission be for the transaction…?
A 1.5 (% Percent)
B 2 (% Percent)
C 3 (% Percent)
D 6 (% Percent)

A

3

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8
Q

If a property sells for $500,000 and the seller’s broker commission is 6%, how much will the broker earn from the transaction…?
A 15000
B 30000
C 45000
D 60000

A

30000

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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

all of 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

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 T (True)
B F (False)

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

training

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13
Q

An agent’s compensation for performing the duties of the agency is known as a…?
A Salary
B Commission
C Referral fee
D Kickback

A

commission

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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 fees
D Insurance fees

A

desk fee

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15
Q

New agents typically work better in an office environment…?
A T (True)
B F (False)

A

true

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16
Q

Real estate salespersons must have good time management skills…?
A T (True)
B F (False)

A

true

17
Q

Real estate is cyclical…?
A T (True)
B F (False)

A

true

18
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

Continuing education

19
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

California Bureau of Real Estate

20
Q

High performing agents may demand a higher commission split with their sponsoring broker…?
A T (True)
B F (False)

A

true

21
Q

In order to use the title REALTOR, a licensee must be a member of the…?
A California Division of Brokers
B National Association of Realtors
C National Institution of Realtors
D California Bureau of Real Estate

A

National Association of Realtors

22
Q

New licensees are required to become members of the NAR…?
A T (True)
B F (False)

A

false

23
Q

The California Bureau of Real Estate has the power to do which of the following…?
AIssue a license
BSuspend a license
CRevoke a license
DAll of the above

A

all of the above

24
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 Independent contractor

A

Independent contractor

25
Q

A real estate salesperson must work under a sponsoring broker…?
A T (True)
B F (False)

A

true

26
Q

A real estate salesperson can sell which of the following real property types…?
ALuxury homes
BTime-shares
CCondominiums
DAll of the above

A

all of the above

27
Q

In a buyer’s market, there is an excess of inventory…?
A T (True)
B F (False)

A

true

28
Q

Any home that is not newly constructed is considered a…?
A Secondary home
B Depreciated home
C Resale home
D Used home

A

resale home

29
Q

Most home purchases are now started online…?
A T (True)
B F (False)

A

true

intro real estate practice chap 1 (7 decks)

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