CA Real Estate Law - CA RE Exam Flashcards

CA Real Estate Law - CA RE Exam Flashcards Broker Brown took a listing on a 10-unit apartmnet house and wrote up a financial analysis showing a 12 percent yield on the investment. In the analysis, Brown did not allow for a vacancy factor, maintenance expenses, or reserves for replacement of furniture and equipment.Brown showed this analysis to Jones, who bought the property. Which of the following describes the above as a

possible violation of the Real Estate Law:

Misrepresentation Broker Anderson arranged a $7,000, 5 year second trust deed loan for Bates. The maximum percentage of the loan amount that Anderson may charge Bates as a commission

for negotiating the loan is:

15% If a seller's agent in a real property sale transaction pays

part of his commission to the buyer of property, the agent:

Must inform the seller that he is doing so When a person passes the examination for a real estate license, and want to obtain that license, he must file the required application and fee within

• year from the date of the examination

When the broker balances his trust account with the bank statement, this is called Reconciliation If a deed has a restrictive covenant which prohibits the sale of the property to persons of a particular race, that

covenant will:

Have no effect on the conveyance, but the covenant will be unenforceable A person who has a California Real Estate salesperson's license is prevented by law from engaging in which of the following activities None of the above In your opinion, a policy manual isAn outline of procedures by which an office operates According to the Real Estate Law, real estate brokers may service a promissory note secured directly or collaterally by a lien on a real property. In order to perform this service, the broker must have Written authorization from the borrower or lender All of the following activities of a licensee are in violation of

the Real Estate Law, except:

Failure to inform a prospective buyer that his principal would sell for less than the listed price Which of the following statements is false concerning equal opportunity housing Panic selling can occur only when the buyer is also a seller

The main functions of a property manager usually include:All of the above

It is generally felt that the successful real estate licensee possesses certain characteristics such as honesty, sincerity, and a compelling desire to serve people. Which of the following attitudes should the licensee possess in dealing with clients One that is "color blind" or absolutely free from bias

In 1921, restrictions which limited the conveyance or the lease of the property to persons of the Caucasian race were imposed on a subdivision. The restrictions are to expire in 1999. Presently, these restrictions are Unenforceable even though the majority of the homeowners want them If a real estate broker received a $400 check as a deposit with an offer on a Tuesday, and the seller is going to be out of town for the next week, the broker should Put the deposit in his trust account by Wednesday The Commissioner's regulations require that there be a written employment contract between the broker and each salesperson employed by that broker. Such employment

agreements must be kept by:

Both broker and salesperson, for three years from the date of the cancellation of the agreement The Federal Fair Housing Law contains which of the following provisions A provision which allows all prospective buyers to be given the same opportunity to select among available houses without restriction because of race, color, religion, or national origin The Federal Fair Housing Law provides the United States policy of Providing fair housing for all persons throughout the United States Three persons acquired an undivided interest of 1/5, 1/5, and 3/5th in a property by a grant deed. Eight months later, they jointly received a court judgment for $55,000 against the real estate broker who negotiated the sale of the property to them upon grounds of fraud. The broker has no assets to pay any portion of the judgment. If the claims are paid individually to each person in the ratio that his respective claim bears to the maximum sum that can be paid from the recovery fund account, the person with a

3/4th interest in the property would receive:

$12,000

A broker must hold all papers relative to any real estate transaction he has negotiated for a period of Three years When a real estate broker acts as agent for, and collects a commission from, both the seller and the buyer in the exchange of real property, and does not disclose his dual

capacity to both parties, he may:

Any of the Above The solicitation of a fee from an owner to promote the sale or rental of any property by any means other than advertising in a newspaper of general circulation is called An advance fee A licensed real estate salesperson placed a "blind ad" in a

local newspaper. A "blind ad" does not properly:

Identify the broker Broker Murdock was hired by Buyer Hudson to find Hudson a particular type of residential property. Buyer Hudson agreed to compensate Broker Murdock for such services.Broker Murdock then solicited for and obtained an exclusive right to sell listing on a desirable property, in which the owner promised to pay the broker compensation at the conclusion of the sale. Buyer Hudson made an offer

to purchase that property, and the owner accepted the offer without knowing of Murdock's dual agency. If, after the close of this transaction and the payment of commission by the seller, the seller finds out about the dual agency, Broker

Murdock may be:

Subject to all of the above Broker Green and Broker Jones are good friends and often work cooperatively, although there is no formal agreement between them. Salesman Maple is employed by Green.Jones can employ Salesman Maple to perform which of the following activities None of the above

Broker Smart represents the owner of a large tract of new homes and hires attractive young women to act as hostesses at the model homes, paying them a fixed weekly salary. The hostesses are permitted to quote prices and financing from the brochure, do their best to get callers interested, but do not write up any offers or sign any documents. Interest buyers are turned over to a regular salesperson to write up the necessary deposit receipt contract The type of duties performed by the hostesses would require a real estate license A broker, after showing a property a number of times and not securing an acceptable offer, decides to buy the

property himself. He must:

Make his position know to the seller A broker, who was selling vacant lots in a new, but slowly developing, commercial subdivision, told a prospective buyer, "Buy this lot now; it is a gold mine. I guarantee you can sell it for four times the purchase price in two years." The prospective buyer purchased the lot and four years later, found that he could not sell it for the purchase price because the broker was still selling similar lots for less than

the original purchase price. The broker:

May be subject to civil penalties as well as disciplinary action by the Real Estate Commissioner A written agreement between the broker and salesperson is required By the regulations of the Real Estate Commissioner A rise in demand for housing usually relates to Expanded construction and higher prices A real estate broker licensed by the state of California is entitled to advertise himself as a Real estate broker If an attorney has general powers, he can do all of he

following, except:

Deal in the principal's real property without recording the power of attorney Broker Morse employs another real estate broker, John Davis, to work for him as a broker/salesman at this branch

office. Broker Davis must:

All of the above Mr. Brown hired a broker to find a warehouse for lease and agreed to pay a commission for the service. Several days later, Mr. Green tells the broker he has a warehouse for lease and agrees to pay a commission if he finds a tenant.The broker writes up the lease which is signed by both parties. Brown knows that the broker was representing Green, but Green did not know that the broker was

representing Brown. Which of the following is correct:

Neither is liable Ethical practices of a real estate licensee most nearly

means:

The licensee's honest and fairness in dealing with the public, clients, associates, and customers Generally, in the practice of real estate, a seller, when

dealing with the listing broker, is known as:

A client A broker took an exclusive listing to negotiate a loan of $2000 for a borrower. The agreement ran for 90 days.Under these circumstances, the agreement would be Illegal for the broker to take an exclusive agreement for that period of time