Practice of Real Estate and Disclosures-Final Exam Flashcards

Practice of Real Estate and Disclosures-Final Exam Flashcards

A seller is required to disclose:the presence or absence of

carbon monoxide detectorsthe existence of a septic tank on the propertya nuisance in the neighborhoodAll of the above All of the above.All of these need to be disclosed on the Transfer Disclosure Statement (TDS).Freddie, an unlicensed employee of a real estate broker, hands out door hangers and makes telephone solicitations seeking buyers and sellers. Under the real estate law,

these activities are:unethical for the broker who employs

Freddie as an unlicensed employee.commonly accepted behavior in the brokerage communityunlawful for Freddieunlawful for both Freddie and his employing broker unlawful for both Freddie and his employing broker.An employing broker is liable for any wrongful act conducted by their employee.Roland, a broker, arranges a sale and opens escrow.Before escrow closes, his license is revoked by the California Bureau of Real Estate (CalBRE). What happens to Roland's commission?Roland's commission goes to the Real Estate Education Research and Recovery Fund.The seller does not have to pay any commissionThe commission is split between the buyer and sellerRoland gets his commission Roland gets his commission.The broker's commission is earned when a ready, willing, and able buyer is found.Thus, since the broker was licensed at the time he procured a buyer as contracted for, he is able to collect his fee.The Uniform Commercial Code, which pertains to a bulk sale transfer, exists primarily for the protection

of:creditorsbuyerssellerscustomers

creditors.Creditors need protection from those who might attempt to walk away from their debt obligations.When a real estate broker who has listed a property chooses to buy it in the name of a separate investment

company, they need to:serve the client's best

interestdisclose to the client that they are the buyerdisclose to the client that they are licensedAll of the above All of the above.Disclosure is the critical point here. There is nothing wrong with purchasing the property, provided the broker makes full disclosure to the client and receives their consent.When a real estate license expires, how long is the agent's grace period in which they may reinstate their license?One yearTwo yearsThree yearsFour years Two years.A grace period lasts two years in which a licensee by process of a late-renewal may reinstate their license.Sexual discrimination in housing is outlawed in sales and

rentals under the:Fourth AmendmentEighteenth

AmendmentCivil Rights Act of 1968Uniform Fair Housing Act Civil Rights Act of 1968.Gender is among the protected groups described in the Civil Rights Act of 1968.Which of the following conditions would not cause a building to be declared uninhabitable?Dampness in the habitable rooms.Electrical wiring that is safe and working properly but does not comply with present building codes.There is no heating in the entire propertyA broken window at the back of the house Electrical wiring that is safe and working properly but does not comply with present building codes.This question is phrased in the negative. Answer selections A, C and D render the rental property uninhabitable. The electrical wiring (a significantly longer answer and more detailed answer selection), does not trigger the inhabitable defense since it is safe and functional even though it does not meet current building codes.

If a tenant moves in and pays one month's rent prior to receiving a written copy of a verbally agreed-on two-year

lease, the tenant has a(n):tenancy at sufferanceperiodic

tenancyestate for yearsestate at will periodic tenancy.Due to the fact the tenant moved in and began paying rent, these activities signifying periodic tenancy take precedence over the verbal lease agreement.Both a seller and a buyer ask the broker to give them the trust funds deposited by the buyer. How is the broker to respond?Begin a surrender actionTurn the funds over to the Real Estate Recovery FundDeclare an equitable assignment of the fundsCommence an interpleader action to resolve the dispute Commence an interpleader action to resolve the dispute.This is a terminology question. An interpleader action is a legal process asking the court to resolve the dispute between the principals.

An example of a red flag would be:a cited code violationa

home overbuilt for the neighborhooda floor that is not levelan older home a floor that is not level.A red flag is something that alerts an agent of a previously unknown potential physical problem with a property. The only answer selection that is consistent with this is an uneven floor A surrender occurs due to the cancellation of the lease

agreement by:the mutual consent of the landlord and the

tenantoperation of law, implied due to the conduct of the landlordEither a. or bNeither a. nor b Either a. or b.Both actions constitute a surrender.Requirements for licensing as a real estate salesperson

include all, except:ownership of propertybeing eighteen

years or olderbeing honest and truthfulgetting fingerprinted ownership of property.Property ownership is not a requirement for obtaining a California Bureau of Real Estate (CalBRE) license Under the Alquist-Priolo Special Studies Act, a subdivider

is required to disclose to potential purchasers:earthquake

fault linesflood hazard zonesenvironmental issuesthe existence of nearby military ordinances earthquake fault lines.This is the earthquake disclosure law.

A real estate broker's advertisements need to include:the

name of the broker and license numberthat the advertiser is a broker or agentthe address of the brokerEither a. or b the name of the broker and license number.Without the disclosure of the broker's name and license number, this type of advertisement is considered a prohibited "blind ad." Discriminatory acts in the sale or rental of residential housing accommodations based on sex, religion or national origin of the prospective tenant or buyer

are:unenforceableillegalcontrary to public policyAll of the

above All of the above.Discrimination is almost always wrong as it is against public policy and in conflict with Fair Housing laws. Senior citizen housing is one of the few exceptions Which of the following state agencies is empowered to prevent acts of discrimination in housing accommodations in California due to race, color, sex, national origin or

ancestry:the California Bureau of Real Estate (CalBRE)the

Unruh Departmentthe Department of Fair Employment and Housingthe Department of Housing and Urban Development (HUD) the Department of Fair Employment and Housing.The Department of Fair Employment and Housing is the state agency empowered to enforce Fair Housing laws.A broker chooses to employ their salespeople as independent contractors rather than employees. By doing so, the broker will save out of pocket expenses relating

to:automobile insuranceerrors and omissions

insurancesocial securityadvertising social security.A broker needs to pay into social security for an employee, but not for an independent contractor.

Real estate licenses are issued for:one yeartwo yearsfour

yearslife four years.A real estate license needs to be renewed every four years by completing 45 hours of continuing education.If a seller refuses to fill out their section of the Transfer Disclosure Statement (TDS), the seller's agent is advised

to:give written notice to the buyer of their right to receive

such a TDS.accept the listing and obey the seller's direction not to disclose any negative property issues.complete the listing agent's portion of the TDS and deliver it to the buyer without the seller completing their section of the form.obtain the buyer's waiver of their right to receive a copy of the TDS.complete the listing agent's portion of the TDS and deliver it to the buyer without the seller completing their section of the form.This is the best answer choice. However, as a matter of best practice, the seller's agent is to explain to the seller their obligation to accurately complete their portion of the Transfer Disclosure Statement (TDS).It is least likely to be a violation of the Real Estate Law for a broker to pay a portion of the commission to

a(n):unlicensed assistanta salesperson working for another

brokerunlicensed person who obtained the listingbuyer or seller in the transaction buyer or seller in the transaction.Paying a portion of their commission to a buyer or seller in a transaction is allowable provided full disclosure is made to all parties. Each of the other answer selections is against the law.A resident manager in an apartment building is required to have a contractor's license for any repairs

exceeding:$300$500$1,000No contractor's license is

needed so long as the work is personally performed by the resident manager.$500.A resident manager who performs, orders, or oversees maintenance or repair projects costing $500 or more are subject to contractor licensing requirements issued by the California Department of Consumer Affairs Contractors State Licensing Board (CSLB).

A sublease:is similar to an assignmenttransfers a portion of

the leasehold interesttransfers the entire leasehold interestcannot exceed one year transfers a portion of the leasehold interest.A sublease is less than a complete transfer of a leasehold interest subject to the terms of the master lease. The original lessee retains certain obligations and acts in a capacity similar to the lessor in relation to the sublessee.Salesperson Sally advertised in a newspaper that anyone who bought a home through her services would receive a free home appliance valued up to $500. Such an

advertisement is:illegal under any conditions.legal,

provided the chance to win is disclosed.legal, provided full disclosure is made to all interested parties.illegal, since the value exceeds $300 legal, provided full disclosure is made to all interested parties.Disclosure is key to most such questions. Provided everyone is made aware of the promotion and its terms, this is a perfectly acceptable business practice.A Latino real estate agent working in a Hispanic neighborhood informed current owners they should move out because another ethnic group is moving into the area.This conduct is an example of all of the following,

except:blockbustingpanic sellinga legal practice, but

unethicalan illegal practice a legal practice, but unethical.Discrimination can occur among any protected group. Here's an example of a question that can cause confusion simply by the structure of answer choice C. If the act is illegal (answer choice D), then it cannot be legal regardless of being classified as ethical or not Which of the following is true?Every real estate broker needs to maintain a definite place of business in California.An advertisement must include the licensee's name and license number.Both a. and bNeither a. nor b Both a. and b.A licensee's name and license number is required on all promotional materials, including business cards. Further, a broker needs to have a physical address on record with the California Bureau of Real Estate (CalBRE) to receive mailings and be subject to state audits.

The Transfer Disclosure Statement (TDS) form is required

on:the sale of a one-to-four unit residential propertythe sale

of a commercial buildingall foreclosure salesthe sale of vacant land the sale of a one-to-four unit residential property.Many disclosure laws target one-to-four unit residential properties as a protected class of real estate. As the Transfer Disclosure Statement (TDS) form is completed by a seller regarding known facts, it is not required in the instance of a foreclosure. Further, commercial property transactions require the disclosure of property defects affecting value, but the statutory TDS form is not required.

The purpose of the Real Estate Law is to:prevent

fraudprotect the publickeep track of all real estate transactionslimit competition protect the public.Most laws and regulations are designed to protect the public. Preventing fraud may be part of the goal, but the total reach of the Real Estate Law is far broader than that A Natural Hazard Disclosure Statement (NHD) needs to be given to a buyer when the property is located within which of the following areas?A special flood hazard areaA very high fire hazard severity zoneAn earthquake fault zoneAny of the above Any of the above.A Natural Hazard Disclosure Statement (NHD) is required on all properties located in the areas specified.It is appropriate for real property managers to be

compensated in all of the following ways, except:a

commission for new tenants solicited.a percentage of the total gross rents received.additional compensation for supervising renovations and improvements.receiving kickbacks from contractors and suppliers.receiving kickbacks from contractors and suppliers.This is a clear ethics violation. Kickbacks are never acceptable under any circumstance.activities refer to the concerted and continuing efforts taken by an agent to meet the objectives of their client under their employment agreement.Conflict of interestDue diligenceUnlicensedAdvance fee Due diligenceDue diligence is a positive effort to work for the client's best interest. A conflict of interest imposes a bias that makes it difficult to work solely for the client's best interest

A seller's broker earns their commission:by finding buyers

who are ready, willing and able to buy.by diligently attempting to market property on behalf of a seller.the moment they list propertieson the close of escrow by finding buyers who are ready, willing and able to buy.The key word in the question is "earned." When the buyer who is ready, willing, and able has been found, the commission is earned. Another question might ask "when" the commission is generally received, which is the close of escrow.A right to later buy a property at an undetermined price given to a tenant that does not compel the owner to sell is

an example of a(n):land contractlease with an option to

purchaseright of first refusalAll the above right of first refusal.This is the only the answer selection which meets all the requirements set forth in the question.Options and contracts both obligate the seller and stipulate an agreed to price. A right of first refusal is a pre-emptive right to buy a property if the owner decides to sell.Title VIII, also known as the Federal Fair Housing Act,

refers to the:Civil Rights Act of 1968Unruh ActCivil Rights

Act of 1964Civil Rights Act of 1866 Civil Rights Act of 1968.The Unruh Act is California specific. The Civil Rights Act of 1964 is in reference to voting rights legislation. Thus, the correct answer is A. Civil Rights Act of 1968. Notice the Civil Rights Act of 1968 has been addressed in several previous questions, which may be helpful when answering this question.