CHAPTER 4 -- PRACTICE OF REAL ESTATE Flashcards Preview

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Flashcards in CHAPTER 4 -- PRACTICE OF REAL ESTATE Deck (138)
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90

The law which mandated equal access to public buildings for all handicapped persons is known as:

(A) the Fair Business Access Act of 2003; (B) the Handicapped Americans Act; (C) the Unruh act; (D) the Americans with Disabilities Act.

(D) the Americans with Disabilities Act

91

When a seller sells his home "as is" which of the following is true?

(A) seller must still give the buyer a real estate transfer disclosure statement; (B) the sales agreement should warn that the buyer should beware; (C) "as is" means that nothing is warranted by the seller; (D) seller is relieved from the legal obligation to give the buyer a real estate transfer disclosure statement.

(A) seller must still give the buyer a real estate transfer disclosure statement

92

For which type of transactions are TDSs not required?

- Husband and wife transfers
- Probate sales
- Foreclosure sales and REOs
- Bankruptcies
- One co-owner sells to another co-owner

93

When should the seller fill out a TDS?

Before the broker accepts the listing. If they do not fill one out, or do not fill it out truthfully, the broker should not accept the listing.

94

Who is responsible for delivering the TDS and when does the it need to be delivered to the buyer?

The Broker is responsible for delivering the TDS as soon as practicable before transfer of title.

95

How long does a buyer have to sue a real estate licensee for failure to disclose known defects on the TDS?

2 years

96

If the TDS is delivered late or amended after the execution of an offer, how long does the buyer have to terminate the offer?

3 days after delivery in person
5 days after delivery by mail

97

A real estate licensee inspected a home for sale and discovered some problems in the property. How long does the buyer have to sue for the failure of the licensee to disclose problems in the TDS?

(A) 1 year; (B) 2 years; (C) 3 years; (D) 5 years.

(B) 2 years

98

A real estate broker, acting as the agent for the seller, handed the buyer an amendment to the TDS. The buyer has the right:

(A) terminate the sale within three days; (B) sue for criminal and civil damages; (C) do nothing, because he is still obligated to proceed with the transaction; (D) terminate the sale within five days and bring a criminal action against the broker.

(A) terminate the sale within three days

99

A statement that discloses the presence of various environmental hazards includes disclosures for which of the following substances?

(A) asbestos; (B) lead based paint; (C) radon gas; (D) all of the above.

(D) all of the above

100

What was the California legal decision which led to the creation of the Transfer Disclosure law?

Easton v. Strassburger

101

The court case Easton v. Strassburger expanded which of the following real estate procedures?

(A) disclosures of economic obsolescence; (B) selling properties "as is;" (C) disclosure of all known material facts regarding the physical condition of the property; (D) advising buyers of their right to have their own inspections.

(C) disclosure of all known material facts regarding the physical condition of the property

102

A seller (or agent for the seller) must give the buyer a "Natural Hazard Disclosure Statement" if the property is within which of the following areas?

(A) Special Flood Hazard; (B) Very High Fire Hazard Severity Zone; (C) Earthquake Fault Zone; (D) all of the above.

(D) all of the above

103

The Natural Hazard Disclosure Law requires disclosures be made to buyers of properties in all of the following areas, EXCEPT:

(A) Very High Fire Hazard Severity Zone; (B) Earthquake Fault Zone; (C) Severe Weather Hazard Zone; (D) Area of Potential Flooding.

(C) Severe Weather Hazard Zone

104

The Homeowner's Guide to Earthquake Safety must be given to the buyer of which type of houses?

- Any residential dwelling built prior to January 1, 1960 and has one-to-four units and are of light-frame construction

105

The "Commercial Property Owner's Guide to Earthquake Safety" must be given to buyers of which kind of property?

Must be given to any buyer of any masonry building with wood frame floors or roofs built before January 1, 1975. If residential property, both guides are given. If commercial, only the Commercial Guide is given.

106

What is "target housing" in regards to lead-based paint disclosures?

Any house built before 1978 (when they stopped using lead paint) but does not include housing designated for the elderly or handicapped (unless children reside there or are expected to reside there)

107

A seller is required to deliver the Homeowner's Guide to Earthquake Safety to the buyer of any one-to-four unit residential properties built prior to:

(A) 1952; (B) 1960; (C) 1969; (D) 1975.

(B) 1960

108

The seller is required to deliver the Homeowner's and/or the Commercial Guide to Earthquake Safety to the buyer of most masonry buildings with wood frame floors or roofs built prior to:

(A) 1975; (B) 1980; (C) 1985; (D) 2000.

(A) 1975

109

Which of the following would be considered a "target house" under the lead based paint disclosure law?

(A) home built for the elderly in 1976; (B) single family residence built in 1975; (C) home built for handicapped in 1970; (D) single family residence built in 1980.

(B) single family residence built in 1975

110

What is the basic purpose of the real estate law in California?

(A) raise revenue for California's general fund; (B) provide more jobs for California's workforce; (C) keep track of all real estate transactions; (D) prevent fraud.

(D) prevent fraud

111

Broker Bob's real estate license was revoked because he violated the California Real Estate Law. What California code did he violate?

(A) Real Estate Code; (B) Business and Professions Code; (C) Code of Civil Procedure; (D) California Commercial Code.

(B) Business and Professions Code

112

Jose is an unlicensed employee of a real estate broker. He was hired to hand out door hanger fliers in the neighborhood near the office and make solicitation telephone calls to potential sellers and buyers. This is:

(A) unlawful for the broker; (B)unethical for Jose; (C)normal and appropriate behavior; (D) unlawful for both the broker and the unlicensed assistant.

(D) unlawful for both the broker and the unlicensed assistant

113

When a real estate broker decides to operate an office using a fictitious business name, before soliciting business under that fictitious business name the broker must:

(A) file the name at the county recorder's office in the county where his office is located; (B) publish the fictitious business name in the newspaper as required by law; (C) have a broker's license issued by the Department of Real Estate after the name has been approved by the Real Estate Commissioner; (D) do all of the above.

(D) do all of the above

114

Which of the following contracts or documents does NOT require approval by the Department of Real Estate prior to use?

(A) an advance fee contract; (B) a mortgage loan disclosure statement; (C) a real property security disclosure statement; (D) an employment agreement between broker and salesperson.

(D) an employment agreement between broker and salesperson

115

A licensee must keep a record of contracts and commissions received for three years from what date?

(A) date of the offer; (B) close of escrow; (C) date of receipt of the commission check; (D) date the commission check cleared the bank.

(B) close of escrow

116

Which of the following is true regarding the broker's trust account?

(A) a real estate broker must have a trust account; (B) a real estate broker must maintain a minimum balance of $100 in the account; (C) a real estate broker must maintain a minimum balance of $200 in the account; (D) a real estate broker is not required to maintain a trust account.

(D) a real estate broker is not required to maintain a trust account

117

How frequently must the real estate broker reconcile his trust account?

(A) daily; (B) weekly; (C) monthly; (D) annually.

(C) monthly

118

An agent licensed as a salesperson is considered an independent contractor of the broker for the purpose of:

(A) no broker supervision or interference by the broker; (B) broker taking liability for the salesperson's errors; (C) paying income taxes and social security taxes and unemployment insurance; (D) eligibility for worker's compensation insurance coverage.

(C) paying income taxes and social security taxes and unemployment insurance

119

What type of background check does the Real Estate Commissioner, Corporations Commissioner, and the Office of Real Estate Appraisers use on applications for their licenses?

(A) financial statements; (B) real estate holding; (C) credit rating; (D) late child support obligations.

(D) late child support obligations