California Real Estate Principles: Unit 1 Review Questions Flashcards

California Real Estate Principles: Unit 1 Review Questions Flashcards

A broker has an exclusive listing agreement with a property owner. The listing will terminate "when the parties agree." This practice isa. acceptable.b. mandated.c. discouraged.d.prohibited.d A broker is so busy that he never has the time to return the phone calls of his principals. He prefers to spend his time in the field making sales and acquiring new listings. This practice isa. acceptable.b. mandated.c. discouraged.d.prohibited.c The sale or transfer of goods ordinarily held for sale in the course of business is governed in California bya. the Business Opportunity Code.b. the Commercial Transfer Law.c. the Uniform Commercial Code.d. the Real Estate Law.c After attending a get-rich-quick-real-estate seminar, an attendee wants to buy a house "cheap." She tells a broker that she will offer $50,000, with seller financing and no down payment, on the Monroe Street house, which has an asking price of $125,000. The broker presents the offer with one of his own for $85,000, telling the owners that unexpected market conditions make their asking price unrealistic. His conduct isa. acceptable.b. mandated.c.discouraged.d. prohibited.d A broker routinely places earnest money deposits in his personal account for overnight safekeeping. This practice isa. acceptable.b. mandated.c. discouraged.d. prohibited.d Exercise 1-2Broker Bob opened his first real estate brokerage office and immediately hired salesperson Sally.Sally printed and circulated a newsletter throughout the neighborhood. She gave a few mortgage loan statistics in her newsletter and stressed the record high property values in the area. She concluded with the statement, "I've never handled a listing I couldn't sell." In fact, Sally had never handled any listing. Has she violated the Code of Ethics?Has broker Bob?Salesperson Sally has, arguably, engaged in a dishonest business practice that could result in suspension or revocation of her real estate license. Broker Bob should have reviewed the newsletter before allowing Sally to print and distribute it, particularly because she is a new, inexperienced salesperson. Bob thus shares in Sally's conduct.A broker wants to help out his neighbor's son who recently acquired a B.A. in history from Back East University. The broker hires the graduate to show property to prospective buyers. Because the new employee has no real estate license, the broker handles all of the negotiating. This practice isa. acceptable.b. mandated.c. discouraged.d.

prohibited.d The broker-officer of XYZ Realty, Inc., does not like the overly aggressive sales tactics of XYZ's salespeople but has not reprimanded them because business is so good.The broker's conduct isa. acceptable.b. mandated.c.discouraged.d. prohibited.c

When a broker exercised his option to buy Whiteacre, he presented to the owner of Whiteacre a written statement of his expected profit in the transaction. The seller agreed in writing to proceed with the sale. This conducta.acceptable.b. mandated.c. discouraged.d. prohibited.b If a real estate license is NOT renewed before it expires, the licenseea. is allowed to complete transactions in progress.b. is allowed to finish transactions that are substantially complete.c. must cease all real estate activities.d. may act under authority of another agent's license for a period not to exceed 60 days.c Exercise 1-1May a broker-salesperson agreement transfer responsibility for all brokerage activities to the salesperson?No. The broker cannot delegate primary responsibility for all brokerage activities, which must be lawfully authorized.A couple desperately wants to move to Pine Bend, and they like the seller's house, which is listed with a broker.The couple tells the broker they will "make it worth his while" if he can persuade the sellers to accept their offer, and they send an expensive food basket to the broker as a sign of their good faith. The broker neglects to mention this to the sellers. This practice isa. acceptable.b. mandated.c.discouraged.d. prohibited.d A salesperson is selling the Greenacre Estate. An offer has been accepted, and the closing will take place in two weeks. While the owners are out of town, the buyer asks if the closing can be put off for one day. The salesperson agrees on behalf of the owners, for she is sure they will not object. The salesperson's conduct isa. acceptable.b.mandated.c. discouraged.d. prohibited.d A salesperson owns 25% of the outstanding shares of Rollo Realty, Inc., and the broker owns the remaining shares. This division of ownership isa. acceptable.b.mandated.c. discouraged.d. prohibited.a A real estate licensee can offer a mobile home for sale that isa. in a manufacturing plant, ready for delivery.b.transportable under an exemption from the Vehicle Code.c.presold.d. in a location where it can legally remain for one year.d A salesperson of Rollo Realty, Inc. In the brokers absence, the salesperson frequently reviews the work of sales associates. This isa. acceptable.b. mandated.c.discouraged.d. prohibited.d An officer of Ajax Corporation, who is not a real estate licensee, successfully negotiated the purchase of the Smith Widget Plant on behalf of Ajax. The officer received a

commission on the sale in addition to his normal salary.The officer of Ajax Corporationa. did not need a real estate license for the deal.b. should have had a real estate license.c. is exempt from licensing requirements.d. None of these.b The Real Estate Commissioner reports toa. the California Bureau of Real Estate.b. the governor.c. the Department of