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55) ________________ is a court order for both parties to revert to the state they were in before a transaction, through reimbursement and return of property.

  1. Rescission
  2. Retraction
  3. Regression
  4. Recession

56) The legitimacy and acceptance of the duty to arbitrate depends upon:

  1. Fairness
  2. Due process
  3. Conformity with state law
  4. All of the above

57) Desist and Refrain Orders are issued for practicing real estate without a license, or other violations under the jurisdiction of:

  1. ARELLO
  2. DRE
  3. HUD
  4. NAR

58) If a buyer declines the right to have an inspection of a property, the agent should:

  1. Have the seller obtain an inspection
  2. Perform the inspection personally
  3. Obtain a third-party appraisal
  4. Document the refusal in writing

59) An owned property claim concerning a client who both owns and manages a property would fall under:

  1. Conflict of interest
  2. Failure to disclose
  3. Negligence
  4. Collusion

60) _____________ may be an issue in cases where multiple Websites are used to attract consumers moving to many different parts of the country.

  1. Active solicitation
  2. Regulatory intent
  3. Active intent
  4. Jurisdictional intent

61) A comprehensive ________ helps you avoid misunderstandings with clients and identify mistakes that could lead to litigation.

  1. Paper trail
  2. Insurance policy
  3. Plan
  4. Memory

OC

62) All human activity

  1. reduces the opportunity for risk.
  2. has risk potential.
  3. is based on seeking risk.
  4. is devoid of risk potential.

63) Breach of contract claims is an example of what type of risk?

  1. Professional liability
  2. Skill liability
  3. Knowledge liability
  4. Public liability

64) What type of insurance is designed to cover public liability problems?

  1. Judgment insurance
  2. Secondary insurance
  3. Natural acts insurance
  4. Liability insurance

65) When a licensee has a contract in place,

  1. the licensee agrees to perform certain acts in good faith.
  2. both the licensee and the client agree to perform certain acts in good faith.
  3. the client agrees to perform certain acts in good faith.
  4. neither the licensee nor the client agree to perform certain acts in good faith.

66) Negligence can be classified as

  1. known or unknown.
  2. intentional or unintentional.
  3. open or closed.
  4. active or passive.

67) Under what two conditions may a broker hold an escrow check from deposit?

  1. The buyer has given written authorization and the seller is informed that the check is being held.
  2. The buyer has given written authorization and the brokerage has established an escrow policy supporting the practice.
  3. All parties in the transaction have been informed of the action and a deposit slip has been completed but not submitted.
  4. A purchase injunction has been ordered or the buyer places a hold on the check.

68) Where would a buyer find information regarding easements or encroachments?

  1. Easements and Encroachments Form
  2. Property Abstract – Section 12
  3. Statement of Livability – Part 4
  4. Real Estate Transfer Disclosure Statement – Part C

69) On what form does an agent report the results of a property inspection?

  1. Property Inspection Report
  2. Status Disclosure Report
  3. Agent’s Inspection Disclosure
  4. Known Defects Disclosure

70) California real estate laws require that real estate contracts be

  1. in writing and witnessed.
  2. in writing.
  3. in writing, witnessed and stamped with a seal.
  4. submitted with some form of escrow deposit.

71) What practice is suggested to help support your claim in a procuring-cause case?

  1. Place a lawyer on retainer.
  2. Tape record all transaction activities.
  3. Avoid MLS listings.
  4. Document all transaction activities.

72) Licensee Fred frequently loans a qualified buyer money to use as escrow money. What can be said about Fred’s practice?

  1. Fred is providing exceptional customer service.
  2. Fred runs little risk, because he has qualified his client.
  3. Fred is guilty of impropriety.
  4. Fred is guilty of improper due diligence.

73) What is the suggested low-risk posture when asked to provide real estate service related providers?

  1. Offer a list of names.
  2. Offer a list of prioritized names.
  3. Recommend one trusted provider.
  4. Inform the requestor to conduct an on-line search.

74) When a client asks an agent a question about an item on the inspection report, the agent should

  1. Answer the question as best as possible.
  2. The agent should contact the inspector and then report the answer back to the client.
  3. The agent should refer the client to an appropriate home inspection web site.
  4. Refer the client to the inspector.

75) Arbitration awards

  1. are more likely to be reversed than court judgments.
  2. are never reversed in court judgments.
  3. are less likely to be reversed than court judgments.
  4. are not accepted or allowed for court judgment reviews.

76) What is the action called which involves the use of a third party to listen, discuss, and attempt to help the disputing parties resolve their issue?

  1. Mediation
  2. Deposition
  3. Ad Hoc Meeting
  4. Pro Temp Agreement

77) What are two types of out-of-court methods of dispute resolution?

  1. Peer Review and Board Review
  2. Mediation and Arbitration
  3. Selected Meetings and Non-selected Meetings
  4. Open Format and Closed Format

78) The use of options, net listings, and guaranteed sales by a licensee

  1. is illegal in California.
  2. is neither illegal nor unethical in California.
  3. is unethical in California.
  4. must be approved by the California Real Estate Commission.

79) When being a dual agent, what duties are the most difficult?

  1. The duties of loyalty and confidentiality
  2. The duties of disclosure and compensation
  3. The duties of honesty and knowledge
  4. Providing facts and opinions

80) What is the underlying principal of a valid contract?

  1. “Providing an offer”
  2. “Making an offer”
  3. “A meeting of the minds”
  4. “Receiving an offer”

81) According to the California Code of Regulations the term advertising applies to

  1. any written or printed communication made in accordance with a text or outline that has been reduced to written form, which is published for the purpose of inducing persons to purchase or use a product or service.
  2. oral communication made for the purpose of inducing persons to purchase or use a product or service.
  3. any written or printed communication or oral communication made in accordance with a text or outline that has been reduced to written form, which is published for the purpose of inducing persons to purchase or use a product or service.
  4. any communication which is published by a third party for compensation with the purpose of inducing persons to purchase that product or service.

82) How many digits make up a real estate license identification number?

  1. 5
  2. 6
  3. 7
  4. 8

83) Which of the following would NOT be classified as real estate solicitation materials?

  1. Business Cards
  2. Radio Ads
  3. Stationery
  4. Brochures

84) What is the universal strategy for managing risk and avoiding misrepresentation?

  1. Education
  2. Insurance
  3. Noncompliance
  4. Transfer Strategies

85) Maintaining communication records is an example of what type of risk management strategy?

  1. Insurance
  2. Education
  3. Transfer
  4. Paper Trail

86) Which of the following is NOT a risk management technique?

  1. Encouraging oral agreements
  2. Avoiding conflicts of interest
  3. Qualifying prospective purchasers thoroughly
  4. Avoiding impropriety

87) When providing clients with lists of related real estate service providers, what disclaimer should be included?

  1. “Subject to review”
  2. “Subject to due diligences”
  3. “Buyer discretion is advised”
  4. “To the best of my knowledge”

88) Having an errors and omissions policy is an example of what type of risk management strategy?

  1. Accepting the risk
  2. Sharing the risk
  3. Avoiding the risk
  4. Transferring the risk

89) When are trust funds allowed to be deposited into the licensee’s personal bank account?

  1. Prior to establishing a trust fund account
  2. At any time when the escrow account exceeds $10,000
  3. Never
  4. During the last month of the fiscal year

90) Seller Mary has forged a seismic report to indicate that the property is not located in a hazard zone. What type of fraud is Mary perpetrating?

  1. Unintentional misrepresentation
  2. Intentional nondisclosure
  3. Passive fraud
  4. Intentional misrepresentation

91) Seller Norm has place a huge heavy water tank in front of a wall crack in his garage. This type of action might be viewed as

  1. Non-invasive fraud
  2. Passive fraud
  3. Intentional disclosure
  4. Unintentional disclosure

1) Concurrent ownership does NOT include:

  1. Community property
  2. Joint tenancy
  3. Tenancy in common
  4. Sole ownership

2) Laws derived from judicial decisions in court cases make up:

  1. Statutes
  2. Standard law
  3. Regulations
  4. Common law

3) The doctrine that governs most real estate transactions under common law is:

  1. Caveat emptor
  2. Respondeat superior
  3. Quid pro quo
  4. Expecto patronum

4) RESPA was intended to prevent:

  1. Unnecessarily high settlement fees
  2. Kickbacks
  3. Referral fees
  4. All of the above

5) A real estate salesperson who accepts trust funds on behalf of the broker under whom he/she is licensed must:

  1. Deliver the funds to the principal immediately
  2. Deliver the funds to the broker immediately
  3. Deliver the funds to the lender immediately
  4. None of the above

6) The first step in assessing risk is to:

  1. Call an attorney
  2. Discuss with an appraiser
  3. Make a list
  4. Discuss with the client

7) A licensee who _________________ can be held liable for practicing law without a license to do so.

  1. Provides homeowner’s association documents for review
  2. Handles earnest money for a client
  3. Drafts contract clauses or contingencies
  4. Explains contingencies

8) When all parties to a contract understand and agree to all terms of the contract, it is known as:

  1. Negotiation and compliance
  2. Offer and acceptance
  3. Greeting of the minds
  4. Consideration of the terms

9) Concurrent ownership does NOT include:

  1. Sole ownership
  2. Tenancy in common
  3. Joint tenancy
  4. Community property

10) Which of the following contracts is commonly used in real estate transactions?

  1. Listing Agreement
  2. Buyer Representation Agreement
  3. Purchase and Sale Agreement
  4. All of the above

11) A mutual, voluntary, legally enforceable promise between competent parties to perform or not perform certain acts is a:

  1. Contract
  2. Disclosure Form
  3. Settlement Statement
  4. Listing Agreement

12 ) Agency relationship disclosure is regulated by:

  1. California Civil Code
  2. California Business and Professions Code
  3. California Conflict of Interest Code
  4. California Code of Regulations

13) Making decisions about suitability of property on behalf of a consumer is:

  1. A fair housing practice
  2. Steering
  3. Routing
  4. Good customer service

14) What is the best way to avoid fair housing complaints?

  1. Don’t disclose all known information
  2. Have a standardized method of serving all clients
  3. Use steering
  4. Have different strategies for different clients

15) According to California Civil Code, a listing agent’s inspection must include researching public records on the title, zoning and _______.

  1. previous owners
  2. Use of property
  3. surrounding properties
  4. waterways

16) The _____________ provides a booklet to educate consumers on environmental hazards which may affect real property.

  1. Federal Emergency Management Agency
  2. Environmental Protection Agency
  3. California Department of Real Estate
  4. Department of the Interior

17) _______________ is an agreement to set fees or commissions at a certain level.

  1. Price stabilization
  2. Price gouging
  3. Price fixing
  4. Price agreement

18) According to California Civil Code, a listing agent’s inspection must include researching public records on the title, zoning and _______.

  1. previous owners
  2. Use of property
  3. surrounding properties
  4. waterways

19) In a _____________ relationship, with the written consent of all parties, an agent represents both the seller and the buyer or the landlord and the tenant.

  1. Designated representation
  2. Exclusive buyer representation
  3. Single representation
  4. Disclosed dual agency

20) A salesperson’s license certificate should be kept:

  1. Framed on the wall
  2. Filed with the DRE
  3. In the licensee’s possession at all times
  4. At the employing broker’s main office

21) What does ARELLO stand for?

  1. Academy of Real Estate License Law Officers
  2. Accredited Real Estate License Litigation Options
  3. Association of Real Estate License Law Officials
  4. Association of Real Estate Land Law Officials

22) Full disclosure is not necessary in:

  1. E-mail
  2. Bulletin boards
  3. Instant messages
  4. Websites

23) To avoid litigation, all companies should develop internet advertising policies that include:

  1. A privacy policy
  2. Copyright protection
  3. Identity standards
  4. All of the above

24) Which of the following might be included on a written agency policy?

  1. A list of disclosures that must be made
  2. A list of the clients and their addresses
  3. A list of expenses incurred
  4. None of the above

25) A listing agreement, agency disclosure form, and copy of the purchase contract should all be contained in a/an:

  1. Escrow account
  2. Transaction file
  3. Referral form
  4. Settlement statement

26) Who should review an agency policy?

  1. Another broker
  2. The DRE
  3. A real estate attorney
  4. A notary public

27) If misrepresentation is particularly blatant or willful, for instance in cases of fraud, a court may award ____________ as punishment, to make an example of the offender and deter similar conduct by others.

  1. Actual damages
  2. Punitive damages
  3. Double damages
  4. Misrepresentation damages

28) You can reduce the likelihood of misrepresentation claims by providing a/an ______________ for sellers to complete and sign at the time the listing is taken.

  1. Escrow form
  2. Settlement statement
  3. Standardized sellers disclosure
  4. Questionnaire

Final

29) A prioritized assessment and documentation of the range of risks faced by an organization is its:

  1. Risk appetite
  2. Risk profile
  3. Risk standard
  4. Risk assumption

30) Oral contracts are not enforceable – all agreements for the sale of land should be _________

  1. in writing and signed.
  2. posted on Facebook.
  3. notarized.
  4. recorded by audio.

31) A/An ____________ may be created to affect the completion of certain tasks in a contract after closing.

  1. Inspection
  2. Clause
  3. Contingency
  4. Escrow account

32) A disclosure _____________________ may be protected from liability for errors.

  1. Within the scope of a reasonably diligent inspection
  2. Concerning county or city zoning
  3. Based on the report of an expert
  4. Made verbally and in writing

33) A visual inspection for a unit in a condominium should include:

  1. The unit itself
  2. Common areas
  3. Outdoor areas
  4. All of the above

34) A married couple may acquire and hold title to a property under:

  1. Community property
  2. Joint tenancy
  3. Both a and b
  4. Neither a nor b

35) A written agreement between a broker and a salesperson does NOT need to include:

  1. Schedule
  2. Supervision
  3. Duties
  4. Compensation

36) Under RESPA, what is the limit on referral fees for transactions involving federal mortgage loans?

  1. $150
  2. $100
  3. $50
  4. No referral fees

37) Escrow agents, credit reporting agencies, appraisers, and attorneys are all:

  1. Expert witnesses
  2. Settlement service providers
  3. Custodians of public trust
  4. Affiliated businesses

38) A licensee’s disclosure that he or she is the owner of a property for sale falls under the principle of:

  1. Affiliated business arrangement
  2. Fair competition
  3. Conflict of interest
  4. Negligent misrepresentation

39) Which agency relationship involves a potential loss of revenue from listings?

  1. Exclusive seller representation
  2. Exclusive buyer representation
  3. Designated representation
  4. Disclosed dual agency

40) A real estate agent must inform the buyer and seller in writing of the selling price within _____________ after the close of escrow or transfer of title to real property.

  1. One week
  2. Two weeks
  3. One month
  4. Two months

41) Which is NOT a structural issue pertaining to earthquake safety that must be disclosed?

  1. Unreinforced window frames
  2. Unbraced first-story walls
  3. Habitable rooms above a garage
  4. Unanchored water heater

43) Advertisements must include all of the following EXCEPT:

  1. Broker’s name
  2. Office telephone number
  3. Licensed status
  4. License number

44) An occupant’s death in or on a property for sale or lease does not have to be disclosed if the death occurred more than ____ years prior, unless a direct question about deaths on the property is asked.

  1. one
  2. two
  3. three
  4. four

45) A breach of contract may occur between:

  1. Buyer and seller
  2. Broker and seller
  3. Agent and buyer
  4. All of the above

46) The _________ allows consumers to “opt out” of having their financial information released to third parties by financial institutions.

  1. Gramm-Leach-Bliley Act
  2. Truth in Lending Act
  3. Equal Opportunity Lending Act
  4. Mello-Roos Act

47) In 1984, the California Appellate Court decision in Easton v. Strassburger defined the duty of a seller’s broker to:

  1. Maintain confidentiality
  2. Deal fairly and honestly
  3. Inspect and disclose
  4. Account for funds

48) A sale can be counted towards the transaction volume of:

  1. The listing agent
  2. The selling agent
  3. Both
  4. Both, if they are from separate companies

49) __________ antitrust law does not prohibit mergers that may lessen competition.

  1. California
  2. Federal
  3. Both a and b
  4. Neither a nor b

50) According to a survey released by the California association of REALTORS®, ___% of homebuyers used the internet as a resource.

  1. 50
  2. 67
  3. 77
  4. 82

51) All Internet-related advertising that displays as a separate unit (email, Webpages, etc.) requires ___________.

  1. Full disclosure
  2. A Web address
  3. Pictures
  4. Links

52) Listing changes should be updated within ____ hours.

  1. 24
  2. 36
  3. 48
  4. 72

53) The responsibility of an employer for an employee’s actions is known as:

  1. Inferred liability
  2. Vicarious liability
  3. Incurred liability
  4. Spurious liability

54) ___________________ is face-to-face negotiation between conflicting parties, moderated by a third party.

  1. Arbitration
  2. Litigation
  3. Mediation
  4. Cooperation

 

 

 

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