California Real Estate Principles - Questions and

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California Real Estate Principles - Questions and Answers fully solved

Question (1): The Real Estate Law is found in the

• Licensing Code
• Business and Professions Code
• Health and Safety Code
• Corporations Code

CORRECT ANSWER : Business and Professions Code

Question (2): The Real Estate Commissioner reports to the

• California Bureau of Real Estate
• governor
• Real Estate Advisory Commission
• legislature

CORRECT ANSWER : governor

Question (3): Salesperson Sam owns 25% of the outstanding

shares of Rollo Realty, Inc., and broker Barbara Rollo owns the remaining shares. This division of ownership is?

• acceptable
• mandated

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• discouraged
• prohibited

CORRECT ANSWER : acceptable

Question (4): Salesperson Sam is part owner of Rollo Realty,

Inc. In the broker's absence, Sam frequently reviews the work of sales associates. This is?

• acceptable
• mandated
• discouraged
• prohibited

CORRECT ANSWER : prohibited

Question (5): A real estate business that is a partnership can

have more than one office location, provided

• a broker partner obtains an additional license for each location
• all partners are real estate licensees
• there is a designated broker-officer
• there is at least one partner at each location

CORRECT ANSWER : a broker partner obtains an additional

license for each location

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Question (6): The sale or transfer of goods ordinarily held for

sale in the course of business is governed in California by the?

• Business Opportunity Code
• Commercial Transfer Law
• Uniform Commercial Code
• Real Estate Law

CORRECT ANSWER : Uniform Commercial Code

Question (7): Todd, an officer of Ajax Corporation and not a

real estate licensee, successfully negotiated the purchase of the Smith Widget Plant on behalf of Ajax. Todd received a commission on the sale in addition to his normal salary. Todd

• did not need a real estate license for the deal
• should have had a real estate license
• is exempt from licensing requirements
• None of these

CORRECT ANSWER : should have had a real estate license

Question (8): If a real estate license is NOT renewed before it

expires, the licensee?

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• is allowed to complete transactions in progress
• is allowed to finish transactions that are substantially

complete

• must cease all real estate activities
• may act under authority of another agent's license for a period

not to exceed 60 days

CORRECT ANSWER : must cease all real estate activities

Question (9): A real estate licensee can offer a mobile home for

sale that is?

• in a manufacturing plant, ready for delivery
• transportable under an exemption from the vehicle code
• presold
• in a location where it can legally remain for one year

CORRECT ANSWER : in a location where it can legally remain

for one year

Question (10): The Browns desperately want to move to Pine

Bend, and they like the Smith House, which is listed by broker Bob. The Browns tell Bob they will make it worth his while if he can persuade the Smith's to accept the Brown offer on their