Practice of Real Estate and Mandated Disclosures

Question 1

How much can be paid on behalf of the licensee out of the Real Estate Recovery Fund per licensee?

Answer 1

$250,000

Question 2

A sales agent solicits homeowners to list their properties by suggesting an wave of minorities moving into the neighborhood. The salesperson is guilty of:

Answer 2

Blockbusting

Question 3

In a suit brought under the Federal Fair Housing Law as amended, punitive damages may be as much as

Answer 3

There is no limit on punitive damages

Question 4

On a listing appointment, the agent tells the seller he can not accept less than the commission stated in the listing agreement because it’s against the law. A short time after the listing begins a ready, willing and able buyer makes an acceptable offer to the seller. What could happen to the agent?

Answer 4

The agent will be subject to disciplinary action

Question 5

Which of the following is a violation of the California Code of Ethics and Professional Conduct?

Answer 5

Telling a seller his/her home is worth more than it is, in order to get the listing

Question 6

Which law mandates how much a real estate broker can charge for a commission?

Answer 6

There are no such laws, as this would be a violation of the Sherman Antitrust Act

Question 7

When working with someone other than a client, a licensee may:

Answer 7

Disclose information that is public record

Question 8

What law requires equal access to public buildings for handicapped persons?

Answer 8

Americans with Disabilities Act, ADA

Question 9

The fiduciary duty of loyalty requires that:

Answer 9

The agent hold the principal’s interest above all other interests

Question 10

All of the following people need a license to practice real estate except:

Answer 10

Any trustee selling under a deed of trust

Question 11

The Civil Rights Act of 1866 established which of the following as a protected class?

Answer 11

Race

Question 12

What is a trust fund account exclusively used for?

Answer 12

Holding clients’ money

Question 13

Which of the following transactions requires agency disclosure?

Answer 13

The sale of a duplex

Question 14

Which of the following could a real estate agent lawfully prepare?

Answer 14

None of the above

Question 15

Which would be an exception to Federal Fair Housing law?

Answer 15

Economic considerations

Question 16

Which of the following is not a protected class under the 1968 Federal Fair Housing Act?

Answer 16

Age

Question 17

All of the following documents must be approved by the Real Estate Commissioner prior to use except:

Answer 17

Independent contractor agreement

Question 18

Which of the following properties could NOT be depreciated on a federal income tax return?

Answer 18

A single family residence in which one resides

Question 19

A real estate agent owes a professional responsibility to the public to:

Answer 19

Treat all parties to a transaction honestly and fairly

Question 20

What does the broker need to do when a salesperson is fired for cause?

Answer 20

Send the commissioner a certified written statement of facts

Question 21

A seller client is liable for the acts of everyone except:

Answer 21

The buyer’s agent

Question 22

When a person passes the state license exam, how long do they have to apply for a license?

Answer 22

One year

Question 23

If, in the sale or rental of a house, a sales agent discriminates against an individual because of religion, the agent may be charged with discrimination under which of the following statutes?

Answer 23

The Federal Fair Housing Act

Question 24

A contract in which something remains to be done by one or both parties is best described as a/an:

Answer 24

Executory contract

Question 25

Any employee who is authorized by broker to make withdrawals from the trust account must be:

Answer 25

Fidelity bonded

Question 26

An agent advertises a property for sale for $120,000. When any potential buyer arrives for a showing, the agent says that the price has just been raised to $160,000. The agent is guilty of:

Answer 26

False advertising

Question 27

What should an agent use as guidelines to determine if an action is ethical?

Answer 27

Business and Professions Code

Question 28

What does the Alquist-Priolo Act disclose?

Answer 28

Location of earthquake fault lines on a map

Question 29

A salesperson, while soliciting a listing, tells the seller that they have a bona-fide offer when if fact there is not one. The seller lists, and an offer comes in from another brokerage which the seller accepts. Has there been a violation?

Answer 29

The reference to the fictitious offer was a violation

Question 30

What properties are touched and concerned with agency disclosure law?

Answer 30

Four-family units or less

Question 31

Which of the following are considered untrue statements made without facts to back them up?

Answer 31

Negligent misrepresentation

Question 32

Which of the following is not an exemption under the Federal Fair Housing Act?

Answer 32

A church selling its church grounds with the help of a broker

Question 33

Which of the following would be a violation of ethics according to the Real Estate Commissioner?

Answer 33

Taking a pocket listing

Question 34

While taking calls, an agent receives a call for another agent. The agent taking the call tells the caller the other agent is not in, and offers to help the caller. After making an appointment to show a property, the agent the caller intended to talk with comes to the front desk and lets the floor agent know they are expecting a call. What should the floor agent do?

Answer 34

Let the agent know about the mistake and tell them about the call

Question 35

A bank refuses to lend a married woman money because, even though she qualifies on her own, they want her husband to co-sign the loan with her. The bank is guilty of violating:

Answer 35

The Federal Equal Credit Opportunity Act

Question 36

What would we call a broker who exercises their option to purchase some land?

Answer 36

Principal