Real Estate Practice Flashcards
(200 cards)
1
Q
How a house looks to a passerby when compared to the rest of the neighborhood is called:
A
Curb appeal
2
Q
Both buyers and sellers should receive copies of any real estate agreement:
A
When it is assigned
3
Q
When selling an older home, disclosure must be made to the buyer of any insurance claims made within the last:
A
Five years
4
Q
When a phone caller inquires about a property that’s no longer available, a switch sheet allows an agent to:
A
Quickly reference similar properties
5
Q
This new type of barcode that consists of black modules (square dots) arranged in a square grid on a white background, which can be rad by an imaging device is called a:
A
QR code
6
Q
To be called a “REALTOR.” A licensee must be:
A
A member of the national association of Realtors (NAR)
7
Q
A real estate salesperson license is valid for:
A
Four years
8
Q
Which of the following can a potential borrower compare online?
A
Interest rates
Points
Fees
ALL OF THE ABOVE^^^
9
Q
The federal civil rights act of 1968 was based on the Supreme Court Case of:
A
Jones v. Mayer
10
Q
Which of the following statements is generally considered correct concerning brokerage firms that hire real estate assistants?
A
Agents who hire assistants list more properties then those that don’t
Agents who hire assistants sell more properties than those that don’t
Both A and B are correct
11
Q
Which of the following is an excellent resource for finding FSBO’S?
A
Craigslist
12
Q
An open house is a prospecting tool for finding:
A
Buyers
Sellers
Both A & B
13
Q
Sources of listings may include:
A
Probate attorneys
“For sale by owner ads”
Foreclosures
ALL OF THE ABOVE^^
14
Q
Which of the following allows you to send both word messages and pictures with just the client’s smartphone number?
A
Texting
15
Q
Which of the following is one of the most used search engines for locating a real estate professional?
A
16
Q
A real estate office concerned with its immediate and residual impact on the environment is best described as a(n):
A
Green office
17
Q
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
The CalBRE 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
The broker must carry worker’s compensation insurance for his or her salespeople
ALL OF THE ABOVE ARE TRUE^^^
18
Q
Which of the following websites is associated with NAR?
A
Realtor.com
19
Q
For income tax purposes, the straight-line depreciation schedule for RESIDENTIAL property is a minimum of:
A
27.5 years
20
Q
Mello-Roos liens are municipal bonds issued to fund:
A
Local streets and sewers
21
Q
A real estate broker who wants to include negotiation of loans for prospective borrowers and the sale of trust deed secured by real property will need:
A
A real property security dealer’s endorsement
22
Q
Death does not cancel escrow because:
A
It is binding on the heirs (estate)
Of the prior agreed-to contract
Both A & B are correct
23
Q
Escrow is not officially closed until:
A
All the conditions of of escrow have been completed
The buyers remaining money is received
The documents are recorded
ALL OF THE ABOVE^^^^
24
Q
The foreign investment is real property tax act (FIRPTA) can be found on which CAR form?
A
Seller’s affidavit of non foreign status
25
In a listing agreement, handwritten or typed-in instructions:
Are given precedence over preprinted instructions
26
In a trust deed, the party who is borrowing money is called the:
Trustor
27
Which of the following is NOT an institutional lender?
Private lender
28
The loss of value due to factors within a structure is called:
Functional obsolescence
29
Liquidated damages are:
Paid for not fulfilling a clause or condition in the contract
Agreed to in advance and stated in the contract
BOTH B & C ARE CORRECT^^
30
The seller must provide the buyers with a lead-based paint notice as an attachment to the purchase contract if the residential property was constructed:
Prior to 1978
31
An incoming call register is a useful tool for:
Record keeping
Controlling ad revenue and expenses
Following up on inquires
ALL OF THE ABOVE^^^
32
The processing of the paperwork and money involved in a real estate transaction by a neutral third party is referred to as:
Escrow
33
Surveys have shown that younger clients prefer to be contacted by their real estate agent via:
Email
Tweet
Text
ALL OF THE ABOVE^^^^
34
The higher the gross multiplier:
The higher the price
35
The process of getting listing information displayed on numerous other websites is:
Listing syndication
36
Which of the following social networking sites allows you “pin” images, articles, videos, etc, to a virtual bulletin board?
Pinterest
37
A packet of forms an agent provides to the seller when taking a listing is called:
A listing kit
38
The Continuing Education (CE) requirements to renew a license is:
45 hours every 4 years
39
Any person who is actively involved in a real estate transaction a the service of another, in the expectation of receiving a commission, must be:
Licensed
40
At what age does the average person start buying a retirement home?
65
41
If there is a contradiction in the purchase agreement form:
The handwritten or typed-in words supersede the printed words
42
If there is a contradiction on the purchase agreement form:
The handwritten or typed-in words supersede the printed words
43
Which of the following statements is NOT TRUE concerning listings in California?
Listing agreements are also referred to as purchase contacts
44
Which of the following property tax exempt in California?
National and state parks
Profit owned by non-profit organizations
BOTH A & B ARE CORRECT
45
The housing financial discrimination act of 1977 prohibits:
Redlining
46
What percentage if prospective homebuyers uses the internet to search for a home before contacting an agent?
90%
47
What entity requires that you include your salesperson or broker’s license number on all your real estate websites?
CalBRE
48
Which social media site only allows the use of 140 or less characters?
Twitter
49
An ad valorem tax is a tax that is charged:
In proportion to the value of the property
50
Which of the following is the best way to keep track of the ads that bring on phone inquires?
Ad call log book
51
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
52
In a trust deed, the party who is lending the money is called the:
Beneficiary
53
Which of the following refers to a business that has an actual physical presence?
Brick and mortar
54
Under a “Covenant Not To Compete,” a seller usually agrees not to open a competing business:
For a period of time
Within a specified geographical area
BOTH A & B ARE CORRECT^^^
55
The Verification of Property Condition form is filled out:
During the final walk-through
56
Which of the following forms details the. Cost of the purchase, including monthly payments?
Estimated buyer’s costs
57
All the documents a brokerage generates for a single completed transaction are kept in:
A master transaction file
58
A publication or website that lists telephone numbers by addresses rather than names is called a:
Reverse directory
59
A salesperson who is actively engaged in professional real estate activities must be employed by:
A licensed real estate broker
60
In California, who customarily conducts the title search, prepares preliminary reports, and issues policies of title insurance:
Title insurance company
61
The basic types of income producing properties include:
Office buildings
Retail property
Industrial property
ALL OF THE ABOVE^^^
62
Lenders who charge an additional processing fee to non-English speaking applicants because of the cost of hiring bilingual employee:
Are guilty of practicing discrimination
63
In a purchase contract, which of the following are NOT usually considered a financing contingency?
Obtaining the deposit
Obtaining the down payment
Obtaining closing costs
ALL OF THE ABOVE^^^
64
Real estate assistants who choose to become notary public’s must:
Maintain an official record called a notary journal
Use an official seal of notary
BOTH B & C ARE CORRECT ^^^
65
The most updated real estate information online can be found on:
Realtor.com
66
In a listing agreement, which instructions are given the most consideration (take precedence)?
Handwritten instructions
67
Which of the following listing forms does the seller receive a copy of?
Residential listing agreement
Seller’s advisory
Estimated seller’s proceeds
ALL OF THE ABOVE^^^
68
The terms mortgagee and mortgagors refer to :
Mortgages only
69
The collection of seller information from several MLSs to post to one site for easier comparison is known as:
MLS aggregation
70
An MLS and its cooperating brokers are denied access to a listing by the seller, and only the listing agent or member of his or her firm are given permission to show an present offer on a property. This is called a(n):
Office exclusive
71
The rollback of California Property tax to 1% of the selling price, plus 2% cumulative interest every year thereafter, was mandated by:
Proposition 13
72
Errors and Omissions insurance is meant to protect whom from liability?
Brokers
Agents
BOTH A & B^^^
73
The purpose of a lockbox is to:
Store keys to the property from agent access
74
Which of the following is known for using Automated Valuation Systems (AVM’s)?
Zillow.com
75
Which of the following is NOT one of the three requirements for a valid escrow?
Legal advice
76
An “encumbrancer” has an interest in a property by value of having:
Placed a lien on a property
Acquired an easement against the property
Imposed restrictions against the property
ALL OF THE ABOVE^^^
77
FSBQ refers to which of the following?
For sale by owner
78
The Real Estate Commissioner is:
Appointed by the Governor
79
In California, a real estate assistant:
Is not required to be licensed
80
The improvement bond act of 1915:
Is a special assessment tax
Finances street and highway improvements
Is based on the frontage of property facing the improved streets
ALL OF THE ABOVE^^^
81
Which of the following would normally be found in a shared document file?
Seller’s information
All disclosures
Buyer’s information
ALL OF THE ABOVE^^
82
Thanks to internet technology as an agent or broker you can now legally:
Track how many potential buyers access a particular property’s website
83
Ownership of a website (domain name) is treated legally most like:
Real property (cyber real estate)
84
A weekly outgoing whereby all available salesperson from one office preview all the newest brokerage listing is called:
Office caravan
85
What agency regulates the issuance of liquor licenses in California?
California Department of Alcoholic Beverage Control (ABC)
86
Which of the following is TRUE concerning the Buyer’s Request for Repairs?
The buyers request is really a wish list
The sellers may choose to do all, some, or none of the repairs
The buyer can remove request and submit a new one
ALL OF THE ABOVE^^^
87
Liability insurance that protects the agent and broker from catastrophic lawsuits brought by the public is called:
Errors and omission insurance
88
What type of listing is considered the least desirable?
Open listing
89
Which of the following is true concerning the Transfer Disclosure Statement?
It must be provided to prospective buyers by sellers of one to four residential units
A buyers has two years to sure an agent for failure to make proper disclosures
90
Which of the following is NOT true concerning REITs in California?
REITs are illegal in California
91
An allowance for vacancies and uncollectible rents is called:
Vacancy factor
92
Common interest developments are governed by members of:
Homeowners associations
93
To earn a commission, a broker must produce a buyer who is:
Ready
Willing
Able
ALL OF THE ABOVE^^^^
94
Character, capacity, and capital are called the three C’s of:
Credit
95
When selling real estate, the least effective form of communication is:
By letter (one way)
96
If any financing term is mentioned in an ad, the FTC requires the ad also mention the:
Annual percentage rate (APR)
97
The statewide buyer and seller advisory (SBSA) is signed by:
The buyer
The seller
BOTH A & B ^^^^
98
In California, an apartment complex with 16 or more units:
Must have an on-site property manager
99
The main purpose of the CalBRE is to:
Protect the public
100
The contingency for sale of purchase of the property form indicates whether a condition of the sale depends on:
The sale of the buyer’s property
The seller’s purchase of a replacement property
BOTH A & B^^^^^
101
What type of lease calls for an additional percentage of the lessee’s gross business income above the minimum fixed rent?
Percentage lease
102
How many brokers can a salesperson work for at a time?
Only one
103
The most frequently visited social networking site on the internet is:
Facebook
104
To be classified as a mobile home (manufactured housing), a vehicle must be:
8 feet wide
40 feet long
BOTH B & C ^^^^
105
When writing effective ads, the formula “AIDA” refers to:
Attention, interest, desire, action
106
The county officer who collects real property taxes is the:
County tax collector
107
What is becoming the most commonly requested form of communication between client and agent?
Text
108
A personal hotspot that lets smartphone users share their wireless data connection with other nearby devices is also called:
Tethering
109
The documentary transfer tax is computed at:
55 cents for each $500
110
Escrow can be terminated by all of the following, EXCEPT:
Seller’s recession without buyer’s consent
111
Which large tech-savvy segment of the population should create the next house buying wave?
Millennials
112
To earn the commission guranteed by a safety clause, the original listing broker must provide the seller with a list of prospects who were shown or made offers on the property within:
3 calendar days of the expiration of the original listing
113
Real estate assistants who choose to become notary public’s must:
Maintain an official record called a notary journal
Use an official seal of notary
BOTH B & C ARE CORRECT^^^
114
The sum of money agreed to in an advance and sated in the contract that will be paid as damages by the buyer for not fulfilling a clause or condition in the contract is a provision called:
Liquidated damage provisions
115
Escrow companies use a base month of:
30 days
116
A report showing the condition of title before a sale or loan transaction is called the :
Preliminary title report
117
Copies of the listing agreement must be given to the signing parties:
At the time signature are obtained
118
Advantages to home ownership include:
Appreciation
Tax benefits
Equity buildup
ALL OF THE ABOVE^^^
119
In a trust deed, the party who is usually borrowing money is called the:
Trustor(buyer)
120
What does QR code stand for?
Quick Response
121
Economics obsolescence is:
Not considered “curable”
Loss of value due to conditions outside the property itself (external)
BOTH A & C ^^^^^
122
The California state law that prohibits steering and blockbusting is:
The Unruh Civil Rights Act
123
Under the buyer occupancy section of the purchase contract, the term “CE+3” means:
The buyer will take possession 3 days after the close of escrow
124
The term CMA refers to:
Comparative Market Analysis
125
The Real Estate Settlement Procedures Act (RESPA) covers the sale of:
One- to four-residential units
126
Police power provisions are laws created to benefit:
Health
Safety
Morals
ALL OF THE ABOVE^^
127
Operating expenses that do not vary depending on the occupancy of the property are:
Fixed expenses
128
If an owner enters into an exclusive agency listing and thereafter sells the property through his or her own efforts:
No commission is payable
129
In creating a comparative Market Analysis (CMA), which of the following is important?
Only select recent sales of comparable properties
130
The term APR refers to:
Annual percentage rate
131
To qualify for a brokers license, a four-year bachelors degree with a major or minor in Real Estate is equal to:
2 years of experience
132
Seller’s disclosures must be approved as soon as possible
By buyers
To insure a binding contract
BOTH A & B ^^^^^
133
The most commonly used purchase contract in California is the:
California Residential Purchase Agreement and Joint Escrow Instructions form
134
A time-tested method used in writing real estate ads is a formula known by the acronym (initials):
AIDA
135
When you are an agent for ONLY one party, representing either the seller OR the buyer, it is called:
Single agency
136
Which of the following is on online social networking site for business professionals to connect, network, and engage?
LinkedIn
137
A resident manager:
Lives on the property
May also be referred to as an on-site manager
May also be referred to as a building superintendent
ALL OF THE ABOVE^^^
138
To secure an endorsement as a real property securities dealer:
A broker’s license is required
139
An “open house” is a planned period of time during which a property for sale:
Is held open for public viewing
140
A salesperson who receives all (or nearby all) of the commission earned from a real estate transaction:
Has a 100% commission arrangement with his or her broker
141
“No Darn Fooling Around” is a method for remembering:
Important property tax dates
142
To earn a commission, a broker must produce a buyer who is:
Ready, willing, and able
143
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
144
The rollback of California property tax to 1% of the selling price, plus 2% cumulative interest every year thereafter, was mandated by:
Proposition 13
145
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 Cost
146
A person who is paid to exercise control over the assets of a common interest development is a:
Managing agent
147
Which of the following government organizations makes direct loans to borrowers?
CalVet
148
On owner-occupied property, the homeowners property tax exemption is the first:
$7,000 of assessed value
149
An assistant working as an independent contractor may be expected to:
Pay his or her own taxes
150
A charge to the borrower for paying off all or part of a loan balance before the due date:
Is called a prepayment penalty
151
The type of ordinance in a city on residential properties that controls rents charged and how big rent increases can be is called:
Rent control
152
A person whose physical conduct is not subject to the control of each another, and who sells results rather than time, is:
An independent contractor
153
The list of potential clients that an agent contacts on a regular basis:
Is considered his or her “sphere of influence”
154
The California standard form fire insurance policy insures against:
Fire and lightning
155
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
156
The average amount an agent spends on real estate technology annually is:
Between $500 and $1,000
157
The form that is often referred to as “FIRPTA” is the:
Seller’s Affidavit of Nonforeign Status and/or California Withholding Exemption
158
The Real Estate Commissioner has the right to:
Revoke a license
Restrict a license
Suspend license
ALL OF THE ABOVE^^^^
159
The Federal Home Loan Mortgage Corporation (FHLMC) is commonly known as:
Freddie Mac
160
A legal “artificial being” conducting business under a chartered name is a:
Corporation
161
The continuing education (CE) requirement to renew a license is:
45 hours every 4 years
162
Broker’s should examine the call log book regularly to determine:
The impact of any advertising campaign
163
The inventory of properties held primarily for sale to customers is called:
Dealer property
Inventory property
Either A OR B ^^^
164
In California, qualifying owner-occupied residential property receives an annual homeowner’s exemption of:
$7,000
165
How many copies of a listing agreement must be provided to a couple who os considered “one legal entity”
One
166
The Real Estate Commissioner warns about which of the most commonly used real estate Internet Scams?
Creating a fake or fictitious listing for a rental property
Offering to rent a real, but unavailable property
Renting a property that is in foreclosure
ALL OF THE ABOVE^^^^
167
Which of the following is a lender’s extended coverage policy?
ALTA
168
The sale or lease of a business enterprise or opportunity and its goodwill is known as a:
Business opportunity
169
A real estate assistant may work
Full time
Part- Time
On call
ALL OF THE ABOVE^^^^
170
Domain names are now officially considered:
Cyber real estate
171
The MLS has an automatic email system that notifies a buyer when homes that fit hos or her criteria come on the market called:
Auto email alerts
172
Lenders refer to a borrower with a low FICO score and a limited ability to cover family living expenses as a:
Subprime borrower
173
CalBRE licenses (brokers) who wish to negotiate mortgage loans and receive compensation for their services must have a:
NMLS endorsement
174
The Real Estate Commissioner requires that all agreements prepared by salespeople:
Be approved by their designated broker or sales manager
Be approved within a reasonable time
BOTH B & C ^^^^
175
Most property owners move on an average of every:
6 to 8 years
176
As a fiduciary, you owe it:
To your principal to obtain the best market price
To yourself to get the listing at a sale able price
BOTH A & B ^^^^^
177
In California, who customarily conducts the title search, prepares preliminary reports, and issues policies of title insurance?
Title insurance company
178
The source of most long-term financing for regional malls is:
Life insurance companies
179
Which of the following do home buying research on the Internet?
Buyers
180
In order for agents to gain access to the house, keys are often kept:
In a lockbox
181
“Scheduled income” is the potential gross income a property is capable of producing:
If there were no vacancies
Without deductions for expenses
BOTH A & B^^^^
182
Failure of a buyer to fulfill the terms in the notice to buyer to perform gives the seller the right to:
Cancel the escrow within 24 hours if other terms are not specified
183
When selling Real Estate, the MOST effective form of communication is:
Direct contact(Face to Face)
184
In a purchase contract, which of the following are NOT considered contingencies?
Obtaining the deposit
Obtaining the down payment
Obtaining closing costs
ALL OF THE ABOVE^^^^
185
The CALBRE salesperson’s exam:
Takes three hours and 15 minutes
Has 150 questions
Requires a score of 70% to pass
ALL OF THE ABOVE^^^^
186
The time assigned to individual agents to answer the company telephone is called:
Floortime
187
The amount of commission payable to a real estate broker is ordinarily based on:
Agreement of the parties
188
The list of potential clients that an agent contacts on a regular basis:
Is considered his or her “sphere of influence”
189
A tenant’s right to occupy real estate during the specified term of a lease is a:
Less-than-freehold estate, or leasehold estate
190
Soliciting potential clients by telephoning people you don’t know is called:
Cold calling
191
An escrow holder can be:
A corporation
An attorney
A real estate broker acting as the agent in a transaction
ALL OF THE ABOVE^^^^
192
Real property taxes are:
Determined according to the value of the real property
As valorem taxes
Paid annually or semi-annually
ALL OF THE ABOVE^^
193
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
194
The type of ordinance in a city on residential properties that controls rents charged and how big rent increases is called:
Rent control
195
The annual percentage rate (APR) is:
The amount financed plus interest rate, points, and loan fees
The actual cost of borrowing money
Expressed as a percentage
ALL OF THE ABOVE^^^
196
The letters “PMI” refer to:
Private Mortgage Insurance
197
If the seller is not bale or not willing to perform the terms and conditions agreed upon in the original purchase agreement, the buyer’s agent forwards which form to the listing agent?
Notice to seller to perform
198
How a house looks to passerby compared to the rest of the neighborhood is called:
Curb appeal
199
Which type of commission plan does a broker not charge a fee, but a commission based on a percentage of the selling price?
Straight commission plan
200
The type of listing in which the owners would be obligated to pay a commission to the broker even if the owners sell the property themselves during the listed period is:
An exclusive right too sell listing
