California Real Estate Practice- final exam Flashcards

California Real Estate Practice- final exam Flashcards A lease whereby the landlord receives a set rent and the landlord pays property expenses is aa. net lease.b.percentage lease.c. gross lease.d. none of the above.c (gross lease.) When there are multiple offers to be presented to an owner, you MUST present thema. in order of price, with the highest price first.b. in the order they were received.c. from your firm first.d. together, in a non-prejudicial manner.d (together, in a non-prejudicial manner.) A real estate agent was found to have made 10 solicitation calls in violation of the do-not-call registry prohibitions.What is the maximum fine that could be imposed?a.$1,000b. $10,000c. $16,000d. $160,000 d ($160,000) Which of the following advantages are offered by a commercial sale-leaseback to the seller/lessee?a. Lease payments are deductible business expenses.b. Capital can be freed.c. Both a and b.d. Neither a nor b.c (Both a and b.) A real estate broker advertised a property for a principal.She did not advertise her name. Her action was proper because she includeda. "agt."b. "bro."c. both a and bd.neither a nor b.c (both a and b) A real estate salesperson does NOT have to check the do-not-call registry when making a solicitation calla. to a commercial number.b. in response to an inquiry made within 3 months.c. if there was an existing business relationship within 18 months.d. all of the above.d (all of the above.) The IRS will treat the real estate salesperson as an independent contractor if 3 criteria are met. These criteria

include:a. the salesperson must be licensed as a real

estate agent.b. reimbursement to the salesperson must be solely based on sales, not on hours worked.c. there is a written contract that states the salesperson shall be treated as an independent contractor for tax purposes.d. all of the above.d (all of the above.) A property brief isa. a flyer describing a property.b. the legal description.c. a history of the property.d. the preliminary title report.a (a flyer describing a property.) Real estate professionals prefer to takea. exclusive-agency listings.b. exclusive right-to-sell listings.c. open listings.d.net listings.b (exclusive right-to-sell listings.) The right of rescission, which applies to loans that place a lien on the borrower residence, is effective until midnight on thea. day after signing.b. 3rd business day after signing.c.

15th day after signing.d. 30th day after signing.b (3rd business day after signing.) Handicapped protection under the Fair Housing Act, as amended, includes protection for persons whoa. are

mentally handicapped.b. have AIDS.c. both a and b.d.neither a nor b.c (both a and b.)

The danger associated with adjustable-rate loans is thata.the interest rate could increase to the cap.b. payments could increase.c. both a and b.d. neither a nor b.c (both a and b.) Which of the following is an open-end question?a. "Why did you want a three-car garage?"b. "Is this house large enough for you?"c. "Did you want a corner lot?"d. "Can you make house payments of a $1,000 per month?" a ("Why did you want a three-car garage?") To overcome sales resistance, the salesperson cana.welcome objections.b. concede before answering.c. both a and b.d. neither a nor b.c (both a and b.) Portfolio loans area. loans sold to Fannie Mae.b. loans that the lender keeps.c. conforming loans.d. none of the above.b (loans that the lender keeps) "Time is of the essence" means thata. performance must be within stated deadlines.b. times stated are estimates only.c. either party can waive untimely performance.d.agreement must be completed within 30 days of stated date.a (performance must be within stated deadlines.) The real estate marketplace is a stratified marketplace.

Stratified means that:a. prices are at high levels.b. prices

can be expected to continue to rise.c. the marketplace is not the same in different price ranges.d. the marketplace reflects the income of the buyers.c (the marketplace is not the same in different price ranges.) The agency or office responsible for handling violations of the Rumford Fair Housing Act is thea. Bureau of Real Estate.b. Department of Fair Employment and Housing.c.Corporation Commissioner.d. Department of Housing and Urban Development.b (Department of Fair Employment and Housing) A visually evident condition that should alert a reasonably diligent real estate agent as to a problem is commonly referred to as a(n)a. encumbrance.b. red flag.c. condition subsequent.d. lien.b (red flag.) AIDA stands fora. attention, interest, desire, action.b.advertise, interest, demand, action.c. advise, inform, demonstrate, action.d. none of the above.a (attention, interest, desire, action.) In deciding on which adjustable-rate mortgage to take, a borrower should considera. the initial or qualifying rate.b.how long the rate is in effect.c. to what index the interest rate is tied.d. all of the above.d (all of the above.) An opt-out mechanism is requireda. for removal from the do-not-call registry.b. to be excluded from further unsolicited e-mail advertisements.c. in unsolicited fax messages.d. all of the above.b (to be excluded from further unsolicited e-mail advertisements.) A convertible ARM means the loana. can be paid off without any penalty.b. may be converted to a fixed-rate loan.c. has a cap that can be removed.d. none of the