California Real Estate Practice Final Exam Questions Answers

California Real Estate Practice Final Exam (Questions & Answers) Flashcards For effective communication it is BEST to provide sufficient facts so the receivers can form valid conclusions.Brokers have liability to commission salespeople as toworkers compensation.The reason most mentioned by owners for NOT renewing listings is lack of communication from the agent.A billboard that states "Thomas Realty-A Name You Can Trust" would be regarded as institutional advertising.As an indication of value, which of the following would BEST indicate the market value of a home?Similar properties sold within the past 3 months Which of the following statements regarding selling time is TRUE?

None of these:-Properties listed below market value tend to

take longer to sell than properties listed at market value.-Properties listed above market value tend to sell faster than properties listed at prices closer to market value.-Because buyers seldom offer the list price, the list price has no effect on time to sell.An agent's inspection under Easton v. Strassburger (as codified by state statutes) applies to Visual inspections.Accessible areas only.1 to 4 residential units.If your firm is small, to obtain a listing when competing against a large firm you should emphasize that because you concentrate on a small number of select properties, you are able to give more individual attention to the property.In preparing estimated seller proceeds, you should remember that both, an owner who gets less than they expected to receive from a sale is likely to be unhappy with you, and it is better to estimate costs a little on the high side than the low side.The phrase "centers of influence" refers to influential people in the community.Disadvantages of home-ownership include all of the following EXCEPT

Include:-Risk.-Greater responsibility.-Lack of

liquidity.Exclude:-Appreciation.

The Civil Rights Act that applied only to race was theCivil Rights Act of 1866.When you receive For Sale sign inquiries you can assume that the caller both is satisfied with the general appearance of the home and is satisfied with the area.The CAN-SPAM Act applies torestrictions on e-mail solicitations.The fine for making a single unauthorized solicitation call to a residential number listed on the do-not-call registry can be up to

$16,000

In describing sales successes, it would NOT be advantageous to point out that your firm sells 50% of its listings.When showing property, an agent shouldDo all of these:-Allow the prospective buyers to bring along a friend or confidant.-Allow buyers a chance to confer without the agent being present.-Try to overcome objections raised.

The back-end ratio is thetotal monthly housing expenses plus monthly long-term credit obligations divided by gross monthly income.The best heading for a classified ad on a home would bethe most desirable feature.A selling agent must comply with agency disclosures to the buyer before the buyer executes an offer.A comparative market analysis would be LEAST valuable in indicating market value for a commercial property.Which of the following is an example of a tie-down?"This is an exceptionally large kitchen, isn't it?" A major reason owners attempt to sell without an agent is to save paying the commission.The California Act that prohibits discrimination by all California businesses is the Unruh Act.A sale would MOST likely be killed bybeing over-eager to close.If a prospective buyer intends to occupy a single-family home as a residence, the agent should realize this fact could have a direct bearing on damages, should the buyer default.A fiduciary relationship applies to a real estate licensee and to his or her principal.The front-end ratio isthe total monthly housing payment divided by the gross monthly income.An example of a closed-ended question, would be "Isn't this a large living room?" What are the advantages of a good time-management program?Improved efficiencyIncreased incomeA release from time pressures Telephone responses from a For Sale sign indicate what about the prospective buyer?The caller may want a lower-priced property.If you are going to be buying a new car for real estate sales, you should consider a full-sized, four-door car for easy entrance and exit.The broker did not give the principal a copy of the listing.The broker did not violate law or regulations because the listing was an open listing.You can find out how things are done in your office bystudying your office procedure manual.The following statements are all examples of abstract goalsI will strive to improve my sales techniques.I will improve my communication skills.I will become a better salesperson.Which of the following listings does NOT require the agent to use diligence to locate a buyer?Open An agent need not disclose to a buyer that: Both a former owner had AIDS or there was a death by murder or suicide on the property more than 3 years ago.Instructions to an owner upon taking a listing should include all EXCEPT

Include:-Make needed repairs.-Avoid cooking with foods

having strong and lasting odors.-Make beds early in the

day.Exclude:-When property is shown, follow the agent

closely and provide information to the prospective buyers.The "endless chain" refers toasking every prospect to recommend another prospect.A listing office typically gives 50% of the gross commission to the selling office and splits the remainder with 40% to the

broker and 60% to the listing salesperson. Salesperson Andrew's listing was sold by another office for $189,500.Assuming a 6% commission, Salesperson Andrew's share

would be:

$3,411.006% of $189,500 = $11,370. 50% of $11,370 = $5,685. 60% of $5,685 = $3,411.

The Seller Financing Disclosure Statement provided to both buyer and seller provides Credit terms.Disclosure of deferred interest.A warning as to balloon payments.When arriving at a property for a showing, if another agent is showing the property, you should wait to show the property until the other agent has left.Which promotion would have the lowest cost to the broker?Press release Redlining is prohibited by theHolden Act.What would be a word or words to use in a listing presentation that denotes a benefit?Agency representation A geographic farm could be aparticular subdivision.When showing a property to a prospective buyer, the agent should show unoccupied property first to give owner-occupants a chance to prepare for the showing.A property brief is aflyer pointing out attractive features about a property.An example of an open-ended question would be "What do you like about this neighborhood?" A Transfer Disclosure Statement must be provided to the buyer when the sale involves A commercial building.A vacant lot.A 3-unit residential building.The purpose of a broker providing a sliding commission scale that rises as sales volume increases is to both motivate salespeople and retain top producers.An open house was held on a property needing many obvious repairs. The property was most likely advertised as a fixer-upper.In advertising a fixer-upper propertyboth the worse you make the property appear, the greater your response is likely to be and people are attracted to fixer-upper ads because they sense a bargain.Advantages of holding open houses include All of these:-Showing owners you are working on their behalf.-Obtaining listings from visitors.-Locating prospective buyers.In advertising, the real estate agent should know that it is illegal to conceal the fact that the advertiser is an agent.When dealing with a prospect who is silent, the BEST approach would be to ask leading questions (find out what prospect thinks).Which of the following statements regarding mobile home sales is TRUE?Both A real estate agent can sell a mobile home in a rental park space and A real estate agent can sell a mobile home with the land it is sited on.The proper order of the steps taken in agency disclosure isdisclose, elect, confirm.Which of the following should an agent regard as a buying signal?

All of these:-An inquiry as to when possession would be

possible-A reluctance to leave a property-The statement, "The price seems a little high." Redlining refers to a refusal toloan in designated areas.Which of the following statements regarding display advertising is TRUE?

All of these:-Lowercase letters are easier to read than

capital letters.-Ads in an outside column will generate more interest than ads in an inside column.-Inclusion of white space serves to emphasize a message.Prospecting from legal notices can be effective. Which of the following is NOT a legal notice?For Sale By Owner In real estate we have learned thatboth it is best to advertise properties in areas or price ranges where other properties are also available and