question

The list of potential clients that an agent contacts on a regular basis

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a. is considered his or her "sphere of influence" b. always belongs to his or her broker c. is technically considered harassment d. is a waste of time

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Errors and Omissions insurance is meant to protect whom from liability

answer

a. Brokers b. Agents c. Both a and b d. Neither a nor b

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A salesperson who receives all (or nearly all) of the commission earned from a real estate transaction:

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a. has a 100% commission arrangement with his or her broker b. has a 50/50 commission contract c. is breaking real estate law d. none of the above

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A salesperson who is actively engaged in professional real estate activities must be employed by:

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a. the state of California b. a licensed real estate broker c. another real estate licensee with at least 5 years experience d. none of the above

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A person whose physical conduct is not subject to the control of another, and who sells results rather than time, is:

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an independent contractor

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Soliciting potential clients by telephoning people you don't know is called

answer

cold calling

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A certification for construction products, such as windows, paints, and adhesives, attesting that the products were manufactured and can be used with minimal impact on the environment, is known as a(n):

answer

Gold Seal

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An open house is a prospecting tool for finding

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Buyers and sellers

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Sources of listings may also include

answer

forclosures

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When writing effective ads, the formula "AIDA" refers to

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attention interest desire action

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Rules for regulating real estate advertising under the truth in lending act are covered by

answer

Regulation Z

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FSBO refers to

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for sale by owner

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Brokers should examine the call log book regularly to determine

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the impact of any advertising campaign

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The bulk of the typical residential broker's advertising budget is spent on

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newspaper ads

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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

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an exclusive right to sell listing

question

the amount of commission payable to a real estate broker is ordinarily based on

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agreement of the parties

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to earn a commission, a broker must product a buyer who is

answer

ready, willing and able

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if an owner enters into an exclusive agency listing and thereafter sells the property through his or her own efforts

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the broker is entitled to his or her full commission, plus damages

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the type of listing that is most likely to give rise to charges of misrepresentation or fraud is the

answer

net listing

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how a house looks to a psserby when compared to the rest of the neighborhood is called

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curb appeal

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in order for agents to gain access to the house, keys are often kept

answer

in a lockbox

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a packet of forms an agent provides to the seller when taking a listing is called

answer

seller's disclosure packet

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in a listing agreement, handwritten or typed-in instructions

answer

are given precedence over preprinted instructions

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To earn the commission guaranteed 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

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2 calendar days of the expiration of the original listing

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copies of the listing agreement must be given to the signing parties

answer

at the time signatures are obtained

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which of the following (seller's) listing forms does the buyer also receive a copy of?

answer

Seller's affidavit of nonforeign status

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The form that is often referred to as "FIRPTA" is the

answer

Seller's affidavit of nonforeign status and/or California withholding exemption

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The amount of cash equivalent that is most likely to be paid for a property on a given date in a fair and reasonable open market sale is called

answer

market value

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The term CMA refers to

answer

comparative market analysis

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most property owners move on an average of every

answer

6 to 8 years

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Economic obsolescence is

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loss of value due to conditions outside the property itself (external)

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advantages to home ownership include

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appreciation, tax benefits, equity buildup

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When selling real estate, the MOST effective form of communication is:

answer

direct contact (face to face)

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an incoming call register is a useful tool for

answer

record keeping, controlling ad revenue and expenses, and following up on inquiries

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the time assigned to individual agents to answer the company telephone is called

answer

floortime

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character, capacity and capital are called the three C's of

answer

credit

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the most commonly used purchase contract in California is the

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California residential purchase agreement and Joint escrow instructions form

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if there is a contradiction in the purchase agreement form:

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the handwritten or typed-in words supersede the printed words

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Liquidated damages are:

answer

paid for not fulfilling a clause or condition in the contract, and agreed to in advance and stated in the contract

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Under the buyer occupancy section of the purchase contract, the term CE +3 means:

answer

the buyer will take possession 3 days after the close of escrow

question

which of the following is TRUE concerning wood destroying pest inspections

answer

All of the following: Section A1 indicates which party will pay for termite inspection, section A1 covers accessible areas of the main building and attached structures, and termite clearance is usually a lender's requirement

question

The seller must provide the buyer with a Lead-based paint notice as an attachment to the purchase contract if the residential property was constructed

answer

prior to 1978

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Seller's disclosures must be approved as soon as possible

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by buyers, to insure a binding contract

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which of the following forms details the total cost of the purchase, including monthly payments?

answer

estimated buyer's costs

question

Which of the following is true concerning the buyer's request for repairs?

answer

all of the following: the buyer's request is really a wish list, the seller may choose to do all, some, or none of the repairs, the buyer can remove request and submit a new one

question

If there are more than two counter offers, an agent/broker should:

answer

start from scratch and rewrite the contract

question

Which of the following is TRUE concerning the buyer's affidavit?

answer

All of the following: It involves the foreign investment in real property tax act (FIRPTA), it involves property for use as a residence, it involves property with a sales price that does not exceed $300,000

question

The verification of property condition is filled out

answer

during the final walk-through

question

The buyer's inspection waiver:

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can be added to the original purchase contract should the buyer choose not to get a physical inspection AND is not recommended by brokers

question

The terms mortgagee and mortgagor refer to:

answer

mortgages only

question

In a trust deed, the party who is lending the money is called the:

answer

beneficiary

question

The compensation for processing the loan and setting it up on the books, which is based on the loan amount is

answer

a loan origination fee

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The term APR refers to

answer

annual percentage rate

question

A charge to the borrower for paying off all or part of a loan balance before the due date:

answer

is called a prepayment penalty

question

Lenders refer to a borrower with a low FICO score and a limited ability to cover family living expenses as a:

answer

subprime borrower

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The term PMI refers to

answer

private mortgage insurance

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An escrow holder can be

answer

all of the following: a corporation, an attorney, a real estate broker acting as the agent in a transaction

question

Which of the following is NOT one of the three requirements for a valid escrow?

answer

Legal advice

question

In northern California, the majority of escrows are handled by

answer

independent escrow companies

question

Death does not cancel escrow because

answer

it is binding on the heirs (estate), and because of the prior agreed-to contract

question

the two rules of proration in an escrow include

answer

the date the item is paid, and the date escrow closes

question

a report showing the condition of title before a sale or loan transaction is called the:

answer

preliminary title report

question

which of the following is a lender's EXTENDED coverage policy?

answer

ALTA

question

An ad valorem tax is a tax that is charged

answer

in proration to the value of the property

question

the county officer who collects real property taxes is the

answer

county tax collector

question

The rollback of California property tax to 1% of the selling price, plus 2% cumulative interest every year thereafter, was mandated by

answer

proposition 13

question

"No darn fooling around" is a method for remebering

answer

important property tax dates

question

Which of the following property is tax exempt in California?

answer

National and state parks AND property owned by non-profit organizations

question

The improvement Bond act of 1915:

answer

All of the following: Is a special assessment tax, finances street and highway improvements, is based on the frontage of property facing the improved street

question

The tax that requires taxpayers who make above a certain amount of gross income to figure their taxes twice is called:

answer

Alternative minimum tax (AMT)

question

The liquidity of an income property is determined by:

answer

the amount of time necessary to turn the property into cash

question

In California, an apartment complex with 16 or more units:

answer

must have an on-site property manager

question

Which of the following lenders makes the majority of their funds available for short-term, high-interest loans like credit cars and automobile loans?

answer

Commercial banks

question

Which of the following operating expenditures is NOT one of the terms included in the acronym MITUM?

answer

Interest

question

Operating expenses that do not vary depending on the occupancy of the property are

answer

fixed expenses

question

An item that has a life span less than the expected life of the property is called a

answer

short-lived component

question

The higher the gross multiplier:

answer

the higher the price

question

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

answer

covenant not to compete

question

What agency regulates the issuance of liquor licenses in California?

answer

California Department of Alcoholic Beverage Control (ABC)

question

A real estate broker who wants to include negotiation of loans for prospective borrowers and the sale of trust deeds secured by real property will need:

answer

a real property security dealer's endorsement

question

The interstate land sales full disclosure act

answer

covers the sale or lease of subdivisions with 25 or more lots AND requires a permit called a property report from the Dept. of housing and urban development

question

The body of law referred to as the UCC is the:

answer

Uniform Commercial Code

question

The housing financial discrimination act of 1977 prohibits:

answer

Redlining

question

Lenders who charge an additional processing fee to non-english speaking applicants because of the cost of hiring bilingual employees:

answer

are guilty of practicing discrimination

question

A resident manager

answer

all of the following: lives on the property, may also be referred to as an on-site manager, may also be referred to as a building superintendent.

question

A CCRM designation stands for

answer

California certified residential manager

question

What type of lease calls for an additional percentage of the lessee's gross business income above the minimum fixed rent?

answer

percentage lease

question

A person who is paid to exercise control over the assets of a common interest development is a:

answer

managing agent

question

By California law, no governmental agency can adopt any rent control restrictions on:

answer

nonresidential property

question

A good reason for a real estate licensee to become an assistant is:

answer

shyness and lack of experience

question

Which of the following statements is generally considered correct concerning brokerage firms that hire real estate assistants?

answer

Agents who hire assistants list more properties than those who don't AND agents who hire assistants sell more properties than those who don't

question

An assistant working as an independent contractor may be expected to:

answer

Pay his or her own taxes

question

Which of the following would normally be found in a shared document file?

answer

All of the following: sellers information, all disclosures, buyer's information.

question

Real estate assistants who choose to become notary publics must

answer

maintain an official record called a notary journal

question

The main purpose of the DRE is to

answer

protect the public

question

police power provisions are laws created to benefit

answer

health, safety and morals

question

a real estate salesperson's license is valid for

answer

four years

question

the real estate commissioner has the right to:

answer

all of the following: revoke a license, restrict a license, suspend a license

question

A broker who falsely gives the impression that he or she is the owner of a property for sale is guilty of:

answer

blind advertising

question

To be called a "REALTOR" a licensee must be

answer

a member of the national association of REALTORS (NAR)

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