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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120

When a real estate agent lets her license expire, how long is the grace period for her to renew the license without being required to retake the state exam?

(A) 1 year; (B) 2 years; (C) 3 years; (D) there is no grace period, if you let your license expire you must retake the state exam.

(B) 2 years

121

A licensee may advertise secured trust deeds if he discloses which of the following?

(A) the extent to which the trust deeds are secured; (B) the property addresses of the trust deeds; (C) the lender's names; (D) his securities dealer's license number.

(A) the extent to which the trust deeds are secured

122

As to ethics, the best guidelines to determine whether an action is ethical will be found in which of the following?

(A) the "Realtor's Golden Rule;" (B) the Business and Professions Code; (C) the conduct of the other real estate agents in your office; (D) what is in the best interest of the real estate licensee.

(B) the Business and Professions Code

123

Which of the following actions by real estate licensee is NOT considered ethical conduct?

(A) all parties in a real estate transaction are to be treated fairly; (B) disputes between brokers should be settled by arbitration rather than court hearings; (C) complete records of all real estate transactions being maintained by licensees; (D) approval by a broker of pocket listings taken by a salesperson in his employ.

(D) approval by a broker of pocket listings taken by a salesperson in his employ.

124

Real estate brokers are prohibited from commingling their funds with the funds of their clients. Commingle means the opposite of:

(A) trust account; (B) mingle; (C) escrow; (D) segregate.

(D) segregate

125

An advance fee collected by a mortgage broker to pay for the processing of the loan is:

(A) illegal under RESPA; (B) legal, if it is a flat fee; (C) legal, if under $200; (D) legal, only if the advance fee agreement has been approved by the BRE and the money is held in the broker's trust account until used.

(D) legal, only if the advance fee agreement has been approved by the BRE and the money is held in the broker's trust account until used

126

A real estate broker who is employed as a resident property manager is entitled to a commission which is:

(A) set at 10% of gross receipts; (B) limited to no more than 10% of gross receipts; (C) limited by law; (D) any amount agreed to by the parties.

(D) any amount agreed to by the parties

127

Wayne owns a 50 unit apartment building. John, a licensed real estate broker has been hired by Wayne to manage the building. Joan lives in the building and has been designated as the resident property manager. Who has the ultimate responsibility for inspection and maintenance of the apartment building?

(A) Joan; (B) Wayne; (C) John; (D) the Real Estate Commissioner

(B) Wayne

128

The document used to transfer title to a business opportunity (personal property) is which of the following?

(A) a trust deed; (B) a chattel mortgage; (C) a bill of sale; (D) a security agreement.

(C) a bill of sale

129

Which of the following phrases in an ad would violate HUD guidelines for advertising?

(A) good neighborhood; (B) retiree's dream home; (C) wedding chapel on site; (D) seeking female roomate.

(B) retiree's dream home

130

Under the Federal Fair Housing Law (Title VIII of the Civil Rights Act of 1968), persons complaining of discrimination in housing are permitted to enforce their rights by bringing which of the following actions?

(A) a civil action filed in federal court; (B) a civil action in state or local court; (C) a complaint filed with HUD; (D) any of the above.

(D) any of the above

131

Listing a home at an inflated asking price for minority prospects to pay, but accepting a lower price from non-minority prospects:

(A) is a violation of the federal Fair Housing Laws by the seller only; (B) could cause the listing agent and the seller to be liable for money damages in a Fair Housing suit; (C) is not a violation of the Fair Housing Law because the property is still available to minority prospects; (D) is illegal only if a government backed loan is being used to purchase the property.

(B) could cause the listing agent and the seller to be liable for money damages in a Fair Housing suit

132

When a deed includes the racial identity of the parties, it can be rewritten under which of the following circumstances:

(A) it was created prior to 1978; (B) the title company says it is okay to rewrite it; (C) it is offensive and discriminatory; (D) by court order.

(D) by court order

133

A seller must give a TDS to the buyer in which of the following real estate transactions?

(A) sale of a vacant lot; (B) sale of a commercial building; (C) sale of a triplex residential building; (D) all of the above.

(C) sale of a triplex residential building

134

If a potential seller refused to disclose slide problems when filling out a real estate transfer disclosure statement, the real estate broker should:

(A) accept the listing and obey the principal's direction not to disclose the slide problem; (B) not accept listing; (C) tell the seller it will be "okay," if he sells without an agent; (D) accept the listing and verbally disclose the slide problem to the buyer.

(B) not accept listing

135

In what California court case did the court rule that the seller and agent must disclose all facts materially affecting the value or desirability of the property to the buyer?

(A) Easton v. Westwick; (B) Easton v. Strassburger; (C) Marburry v. Madison; (D) Jones v. Mayer.

(B) Easton v. Strassburger

136

When a potentially active earthquake fault zone is located near a home, buyers must be given specific earthquake disclosures. The earthquake faults are designated on maps available to the public. Typically, how wide are the earthquake fault zones on these maps?

(A) 1/4 mile; (B) 1/2 mile; (C) 3/4 miles; (D) 1 mile.

(A) 1/4 mile

137

A family recently purchased a home built in 1972. The buyers did not receive the EPA pamphlet "Protect Your Family From Lead In Your Home." Which of the following is true?

(A) the buyers can cancel the transaction; (B) there is no problem if the family has no children below the age of 6 years; (C) if the buyers are given a certificate stating there is no lead based paint in the home, it is all right; (D) the buyers are still obligated to purchase the home.

(A) the buyers can cancel the transaction