The CE Shop Review Assessment Answers Flashcards

The CE Shop Review Assessment Answers Flashcards Layla, a licensee, has had a few casual meetings with a potential client, Marcus. Marcus has told Layla the type of home and locations he's interested in. Layla has mentioned a few homes that she thinks Marcus might be interested in.Although Layla hasn't said that she will continue to look for homes for Marcus, Marcus believes she'll do just that.Which of these statements about this situation is correct?Layla's actions may have created an implied agency agreement with Marcus.In California, a brokerage's listing agreements, deposit receipts, canceled checks, and trust records are all

______.

Records that must be held for at least three years Which one of the following is a description of economic depreciation?The asset is worth less because it's deteriorating physically.*Economic depreciation is an actual loss in value, whether it's from wear and tear (physical deterioration) or from external factors (for example, a fire damaged the building, there was a downturn in the local economy, or the business climate saw unfavorable changes).Which of the following is true about net listings?They often involve a conflict of interest.*Net listings are prohibited in several states, and there's no guarantee of commission. The conflict could occur if the listing agent didn't present offers that left little for a commission, even though the offers met the seller's needs.Carter, a licensee, never posts his clients' property on the MLS. This gives him the opportunity to find the buyer himself, potentially doubling his commission. What disadvantage might apply to Carter's clients?Their properties may not sell for top dollar.The owners of Brick and Brack, a development company, have purchased several acres of vacant land for their latest development. They plan to build a community of affordable single-family homes. What category of real estate will these be in after construction?Residential Congratulations! The crowd funding worked. Now you can start manufacturing your own line of yoga clothing. But first, you need a location to do all of that sewing. Which building would you select?Light manufacturing Which of these situations addresses the fiduciary duty of confidentiality?Jeanette, a seller's agent, tells the buyer's agent that her client must sell his home because of an illness.In investments, there are two types of depreciation, and each is defined by a particular event. Which of the following most accurately pairs the depreciation type with the event it is tied to?Tax depreciation and cost recovery

Parcels of land are valued at $50,000 each. However, when two of the parcels are joined, they are valued at $120,000. What economic principle is at work here?Plottage Lenny is the listing agent for a property built in 1901. Old homes are very desirable in this area, and Lenny is expecting a fair amount of interest and multiple offers at the planned open house. Which action best demonstrates good faith to his seller client in this scenario?Lenny presents all formal written offers as they come in, discussing the merits and drawbacks of each, but ultimately lets the owner decide what action to take.A surveyor created a lot and block survey for a new residential development. The first thing she did when she surveyed the new neighborhood was to reference a metes and bounds land description. From there, she divided the land into numbered lots and blocks. This output is known as a _______.Plat map A property generates $30,000 in net operating income and has a 15% cap rate. Using the income approach, what is its value?$200k$30k / 0.15 = $200k What is an advance fee agreement?A fee the agent charges a client for services the agent expects to provide but haven't yet been provided.*An advance fee is a fee the agent charges the client for services that haven't yet been provided. DRE allows these fees, but only if it has reviewed and approved them first.Rachel loves convenience. As you can imagine, she was thrilled when she was able to finance her mortgage through the same institution where she deposits her payroll checks.Which of these most likely financed Rachel's mortgage?Savings and loan Which of these is NOT a duty that California licensees owe to the non-client principals in a transaction?Loyalty A family of four, with children ages six and nine, is denied the opportunity to view an available unit at a community that caters to seniors. Which of the following statements is true?The federal Fair Housing Act allows an exemption for communities that are designed and operated for senior use.One of Amy's clients has a property that received eight offers before the deadline. Assuming Amy received no special instructions on presenting offers, how many of the offers must she present to the seller?Eight Danielle is selling her home and has enlisted Camden as her agent. Shortly after signing the listing agreement, Camden informs Danielle that he'd like to purchase her home. What can Danielle do?Danielle may cancel the listing agreement and seek representation from another agent.Which of these might bring a charge of illegal steering against a licensee?When working with single female clients, Cassandra is careful to promote properties in neighborhoods she considers safe.Jim represents Joel in the sale of Joel's country acreage and house. Jim's business partner, Rolly, informed Jim that

he wants to put an offer in to purchase the property, with the intention to subdivide it. Which statement best represents the disclosure requirements regarding this transaction?Jim must disclose that Rolly is his partner and that Rolly intends to subdivide the property.

You're helping prepare a sales contract for buyer clients.When is it acceptable for you to provide your clients with legal advice?Never Soren is an appraiser. As such, what guidelines must he follow?Uniform Standards of Professional Appraisal Practice (USPAP)*The Uniform Standards of Professional Appraisal Practice (USPAP) provides standards for appraisers to follow.Nevina may be creating an implied agency agreement if she does which of these?Performs a CMA for an acquaintance and provides advice on setting a listing price based on other comparable properties in the area What type of easement is created when the government exercises its right of eminent domain?Easement by condemnation Rob is searching for a new apartment that he can lease for the next two years while he's working in the area. He has hired Danielle to represent him as his agent in this transaction. Is Danielle required to provide Rob with an agency disclosure form?Yes, agency disclosure is required on leases exceeding one year.*Agency disclosure is required for leases exceeding one year.Which of these scenarios could lead to a breach of contract lawsuit over the sale of a tenant-occupied property?The seller agrees that the premises will be vacated by closing, then never gives the tenant notice.You're explaining the use of the Natural Hazard Disclosure statement to your seller client. You describe the natural hazard zones it covers. Which of these is NOT one of the natural hazard zones included in the disclosure?Severe weather area A form of depreciation or loss in value caused by defects in design is called _______.Functional obsolescence James represented a client who believes James was guilty of misrepresentation. The client files a complaint against James. Which entity will investigate?California DRE A landlord owns a 15-unit rental property in an area without local rental control. Under what circumstances may this landlord increase the monthly rent of a unit by 20%?If the previous tenant moved out and the increased rate is for a new tenant.In California, how has state law modified the way the deed of trust works?It creates a lien on the property, and the borrower, not the trustee, holds legal title.*California is a lien theory state, and state law has made the mortgage and the deed of trust functional equivalents.Joan is representing the buyer, Carlton, and Reggie is representing the sellers, Zeb and Teresa Martin. Carlton's Great Aunt Matilda has agreed to pay any portion of Joan's commission the sellers don't cover. Teresa's father, Teddy, has agreed to pay half of the sales commission that will be owed to the listing agent. Which of these statements is true?Carlton and the Martins are the agents' principals in this transaction.Where is the Residential Earthquake Hazards Report found?In the Homeowner's Guide to Earthquake Safety*This disclosure form is found at the end of the booklet called Homeowner's Guide to Earthquake Safety.