Real estate practice exam 1 Flashcards

Real estate practice exam 1 Flashcards The DRE can impose all of the following disciplinary

actions for violating license law, EXCEPT:

Imposing a penalty of up to $3,500 per investigation Mel is a Realtor talking to a potential client for the first time.During this conversation, she asks, "Are you currently in an exclusive representation agreement with any other agent?" The client gets annoyed and says, "Of course not. I would never call you if that was the case." Should Mel have asked that question?Yes it's Mel's duty as an agent to make a reasonable effort to find out if the person is currently a valid exclusive agreement before signing on to work with them In which of these cases should an agent disclose information about someone's HIV/AIDS status?Agents should never disclose or insure about someone's aids/hiv status

A listing agreement is between:A seller and a broker

What report do agents create to compare the prices of recently sold homes in order to estimate the market value of a similar property located in the same area?Comparative Market Analysis (CMA) An agent is required to disclose known information about:The property's proximity to a nearby military airport Realtors not involved in the sale or lease of a residence may provide demographic information related to a property, transaction, or professional assignment under what circumstance(s)?It is needed to completed an assignment or transaction and it comes from an I'mpartial and credible source What is cost?The dollar amount of money required to buy, build or develop something At what point may a Realtor disclose a client's confidential information?Confidential information can never be disclosed Which of the following is an example of a task an unlicensed employee is allowed to perform in California?Prepare a comparative market analysis Blackberry bushes are growing in Heidi's backyard. Heidi has the right to pick those blackberries, eat them, make them into jam, or share them with her neighbor. This

concept is known as:

Accession Richard, a seller, lets Emily, a salesperson, know that his roof sustained considerable damage from a recent hailstorm. Emily lies to a potential buyer about the state of the property's roof, claiming it's in perfect condition. Who could potentially be held liable for Emily's misrepresentation?Emily and her responsible broker Which of these is an agreement in which the seller has an exclusive relationship with a broker but retains the right to sell the property with no commission going to the listing broker?Exclusive agency agreement Owner Olga enters into an exclusive authorization and right-to-sell listing with California REALTOR® Betty. Owner

Olga ends up finding a buyer herself.Which of the following statements are TRUE about this scenario?Betty is eligible for full commission

Which of these property owners is exercising their subsurface rights?Marco sells the right to extract natural gas from his farm to the gas company Which of the following commodities is considered to be indestructible?Land Georgina is an agent. She finds out that an agent from another firm sent mailers to a neighborhood, including to houses exclusively listed with Georgina. What is a good best practice for Georgina to follow?Georgina should try to get clarification from the other agent first, before automatically filing a complaint What enters a home through cracks in the foundation?randon gas Alicia has purchased new tile for her kitchen. While the tile is still in the boxes, what is it considered to be?Personal Property Which of the following is TRUE about exclusive agency agreements?They are always bilateral and must have a specific duration What is the term used to describe a fact that could possibly persuade a buyer or seller to change their decision about a property if they knew about it?Material Fact A seller physically gives the buyer a copy of the Real Estate Transfer Disclosure Statement after the contingency period has ended. If no other timeframe was agreed upon, how long does the buyer have to review the statement and cancel their purchase agreement?three days Which of the following is an example of an acceptable use of a trust account?Holding earnest money while a transaction is waiting on approval Which of these is describing the direct cost of a building?The materials and labor necessary to build the building cost

$230,000

Elsie works for a brokerage. She decides her own schedule

and her income is based on commissions. Elsie is a(n):

Independent Contractor Seller Lou's property has a fireplace. Based on this fact, we

know that in the TDS he'll have to disclose:

Whether or not he has carbon monoxide detectors Which term refers to the fact that real estate exists in a fixed location and cannot be moved?Fixity An object that was once personal property but is now firmly

attached to the land is called a:

fixture The complete legal ownership of real property and the

bundle of rights associated with it is called:

legal title Which of these scenarios best illustrates the right to transfer?Jesse sold her house to her grandmother Which of these things is considered intangible property?stock in a company The price a property is likely to fetch in an open, fair sale is

known as the:

Market value Byron is a Realtor involved in contract arbitration. During arbitration, evidence is presented that suggests Byron is in violation of the NAR Code of Ethics. Can this information trigger an ethics inquiry?No. Information that comes to light in an arbitration can't trigger an ethics inquiry

The purpose of the California Department of Real Estate is to effectively and efficiently provide services around

licensing, subdivision, and consumer needs and to:

Regulate and monitor the real estate industry in order to protect the public's interest What kind of rights are granted by a government entity and allow a party to take water from a body of water for a specific and approved use?Prior Appropriation (Appropriative Rights) Which department is in charge of regulating the real estate industry in California?the California Department of real estate JoAnne has a feeling she didn't do very well on her salesperson licensing exam. If she fails her first attempt,

JoAnne:

Can retake the exam after she receives her initial test results Agent Audrey can earn compensation on a listing unless the seller procures the buyer.What kind of listing does Audrey probably have?Exclusive agency listing Which of the following is true of lead-based paint disclosures?Sellers are responsible for making lead-based paint disclosures buyers, but are not legally required to test for lead or make repairs What is the primary distinction between real and personal property?Personal property can be moved and real property is attached to land Realtor Bob's client has asked him to appraise their commercial building. Since Bob specializes in residential real estate, he discloses to his client that he is not an expert in appraisals or commercial real estate, and also says that he will need to consult an expert for assistance.Are Bob's actions ethical? Why or why not?Yes Bob disclosed his lack of expertise upfront and is consulting an expert for assistance Saanvi is building a home in a neighborhood of mid-century modern homes. Saanvi really wants to build a three-story victorian. What principle of value is Saanvi not considering?Principal of conformity Sarah is performing a comparative market analysis for her subject property, a four-bedroom house in the Sistene neighborhood. Which of the following would be the most appropriate comp(s)?Two four-bedroom houses and one three-bedroom house the Sistine neighborhood that have all sold with the past 6 months A Realtor contacts a homeowner and tells them that they should consider selling their home now, as their property value is likely to decrease due to a large number of immigrants moving into the neighborhood. What is the unethical practice that this Realtor is engaging in?blockbusting Amelia is getting ready to sell her house. Her agent wants to do a CMA to help her determine the listing price. Amelia says it's not necessary, as she has the appraisal of the home from when she bought it eight years ago. Her agent informs her that the valuation is no longer accurate. What principle of value is driving her agent's opinion?Principal of change Which of these scenarios is an example of utility making a piece of property valuable?Anna found an investment property that she will use to get a great monthly income stream