It is completed by an interested Buyer then presented to the Seller, stating the basic terms under which the Buyer is willing to purchase the property. Goodwill is an intangible asset that results from the reputation of the business. How would Grants lease at this time be classified? A. C. Once you set a goal you should never change it. B. An open listing is an exclusive contract. At the time the agreement is signed. 11 of 11 Which of the following is a low loan-to-value ratio? 2- Explain the difference between the primary and secondary mortgage markets. Buys pools of mortgages in exchange for mortgage-backed securities. 4. 8 of 10 Which kind of listing gives one broker the right to sell, but allows the owner to sell the property and not owe a commission to the broker? 37 of 50 Which of the following economic characteristics is true? 6- What is important for the sellers to know about a counteroffer? 10- Whats the difference between a lease purchase and a lease option? A. Present the offer and tell the seller that the check needs to be held until June 30. A basis of $145,000 and a taxable gain of $3,000, C. A basis of $130,000 and a table gain of $18,000. What should Tom do? B. D. Exert pressure on the sellers to include something the other party wants. Which of the following statements is not true? 3- What is the difference between CLTA and ALTA policies? A. Give the sellers a copy of some homeowners tips. 78- Nancy bought her home last year for $425,000. 6 of 10 A broker induces an owner to sell by telling him that Hispanics are moving into the neighborhood. 1. 3- How could refinancing be an investment benefit? C. A broker is not responsible for the acts of independent contractors. 2. 7- What are the capital gains exclusions associated with the sale of a personal residence? What is the key feature of this type of loan? Maximize the return to the property management firm. B. 1- What is escrow? 2 of 10 Which of these is not an AIDA characteristic? Over 300 California Real Estate Practice Exam questions to pass Tests! 2- What exception exists to the duty of obedience when working with a client? 7- Agent Jim needs to do a visual inspection of his listing. Ask questions of the prospects children. Finally, add the origination fee and points together to calculate the buyer's total cost; $3,370 + $3,370 = $6,740. 10 of 10 The cost of doing direct mail advertising depends on all of these things except which? B. Person must be properly licensed. A. Youll know how much house they can afford. B. 2- What is floor time and why is it important? 1- How much is the loan origination fee and what does it cover? Lorem ipsum dolor sit amet, consectetur adipiscing elit. 7- Agent Jim needs to do a visual inspection of his listing. C. Payments will not be enough to retire the loan. D. Once the offer or counteroffer is accepted and the offeror has been notified, a legal contract is formed. 44- Jim owns a gift shop in a commercial building. 7- How can a builder help you generate leads? The agent should, Something of value given to another as an inducement for entering into a contract is termed, To emphasize the timely performance as an essential part of the contract, a contract would use the words. they are effectively terminating the original offer. 1. A. Salesperson Harry can solicit his own listings. buyer randy makes an offer to purchase B. The home comes equipped with all furnishings. Receives special tax considerations. Which of these expenses is not associated with owning a home? This is not true of which duty? The gross annual income, $7,200, divided by 8% (0.08), is $90,000. 10 of 10 Assistants who are hired to work part time: C. Usually get a percentage of the commission in addition to a salary. 5- When must a licensee provide an agency disclosure to a prospective client? It must be in writing to be enforceable. 4- Agent Greg receives a call about one of his firms ads. Is equal for each year over the life of the property, C. Is high during the first five years of the ownership period, then reduces gradually over the life of the property, D. Varies according to the expired life of the improvements made to the property. 5 of 10 Alice has decided that she will specialize in selling farm land. What would be determined by a location survey? 1- What is the most important factor for a prospective homebuyer to consider in the decision to purchase? Write a counteroffer. If the loan is VA guaranteed, no down payment is required. 12,800 square feet D. Amanda smiles at Jim when she sees the whirlpool tub. 7- What does the net operating income of a property represent? Answer a question with a question when possible. 4- Amanda calls broker Tim to schedule a showing of one of his listings. 2- What exception exists to the duty of obedience when working with a client? Who would be exempt under New Jersey fair housing law? Rob, a salesperson, tells a buyer that the location of the electric meter on a house is up to the buyer. C. The definition of handicap was expanded to include use of guide or support animals for deaf and blind individuals. 3- A property manager can refuse to rent to applicant Mike for any of the following reasons except which? Who should Tommy recommend the owner consult with before making a decision? C. If Larry verbally accepted the offer, Kirk is bound by it. 53- Greg sold an apartment building he owned for 20 years. A. 3 of 10 When must a listing agent present the Disclosure Regarding Real Estate Agency Relationships to the seller? 4- Whats a bonus closing and whats important to keep in mind about this technique? A. of a train ride will leave the quantity demanded of train rides unchanged. It can be considered an employment contract. Which of these statements is true about the wraparound mortgage? The following table lists all costs of quality incurred by Sam's Surf Shop last year. 8- When does a purchase offer become a legal contract? The buyer was responsible for making the discovery, so Pam is therefore liable. 7 of 10 Which of these forms is not filled out by the seller? In addition to agent and MLS home tours, what are some other ancillary tools you can use? D. The lender assumes Tim and Sues income will rise over the first few years of the loan. Which law extended discrimination to include handicap and familial status? Answer: C- 10% of the sales contract offer, What is the suggested response when a buyer asks "Do you think the seller will come down on the price?" Broker compensation to other brokers. The offer that has the shortest closing date, Answer: B- The offer with the highest price that is the most likely to close. Decide which offer is best and present that one. The loan value is based on the appraised value, not the sale price. The owner of the property is HIV positive. 4- What do Fannie Mae and Ginnie Mae do that Freddie Mac does not? Local ordinance requires a 20-foot rear and front setback. B. 6 of 11 Which of the following is not true about reverse annuity mortgages? 9 of 10 Which of the following statements is not true? 6 of 10 How often can a tenant call his or her own professional to make repairs and then deduct the amount from the next months rent? Retired persons are a good source of neighborhood information. B. 20 of 50 Seller Patsy wants to net $150,000 from the sale of her home. 4- Why is it important to talk to the sellers about the buyers? 7- What are the capital gains exclusions associated with the sale of a personal residence? C. I will open my own office within nine years. Use the yes-but technique to handle the objection. California Real Estate Practice Class Questions with no Answers for Preview (ALL R.E. Her broker has asked her to be available for tasks in the field rather than in the office. 48 of 50 Which of these lenders would be the least likely to lend money for an investor to purchase an apartment building? What property type will he be dealing with? : The Commission could suspend or revoke Rob's license. C. Real Estate Settlement and Procedures Act. 2- What are some tax benefits associated with investing? What is the primary criticism that sellers have about their agents? What California Fair Housing law has the manager violated? Select Review offer. 5- What actions can the sellers take regarding the purchase offer? 1 of 10 All of these questions could help you determine a prospects capacity to make a purchase except which one? The difference between what Sara owes and what her home is worth is known as what? Wait until next week to send an activity report, hoping things will pick up. D. The appraised value prior to sale Launch into your list of the homes special features and hope she changes her mind. 1- When is real property reassessed? A. A. Jim specializes in clients who want to buy restaurants. 8 of 10 Which of these is a free form of advertising? Jim should not use this flier as a: 94- Sellers agent Pam was unaware of the fact that the heating system of a home she had listed was defective. Practice exam for California Real Estate Practice Class, Answers will be revealed with the correct subscription. 38- When using the straight-line method of depreciation, each year of economic age is given a rate that, A. Varies each year according to a table provided by the IRS, B. 5 of 10 How many properties should be included for comparison in a competitive market analysis? The borrowers family in case of his or her death, B. The listing agent must provide the disclosure to the seller prior to securing the listing agreement. Point out that the roof is not leaking despite its age. C. Is subordinate to a first mortgage. 21 of 50 Once signed, escrow instructions can be changed only by: 22 of 50 What is one of the major objectives of professional property management? B. Nam risus ante, dapibus a molestie consequat, ultrices ac magna. C. Guarantees payment of all interest and principal on mortgage-backed securities. \text { Annual testing cost } & 543,000 \\ 6 of 10 Who typically presents an offer to the sellers? 3- When preparing a competitive market analysis, what categories of homes should an agent research? Smoke Detector Statement of Compliance, D. Sellers Affidavit of Nonforeign Status and/or California Withholding Exemption. The lender in case of the borrowers death, C. The lender against delinquent payments, D. The lender in case of the borrowers default. Referral fee to a homeowners insurance agent. 6. 8- When considering making a loan to a borrower, which of the following factors would probably exert the least amount of influence on the lender? California: Real Estate Practice Sample of Final Course Exam. 3 of 10 A listing presentation can be compared to: 4 of 10 All of the following are benefits of listing with an agent except which? Step 2. C. An apartment manager might be required to allow a tenant with a disability to widen a doorway. A. Jake is getting a VA loan with no down payment. Now, calculate how much you lost: $153,890 - $139,900 = $13,990. Last year, about 25% of his income came from sales commissions. Entails entering into two agreements simultaneously. C. Greg has violated the duty of confidentiality to Kim. A. 30 of 50 After six months time, manager Tim wants to terminate the lease of one of his month-to-month tenants. Study the other terms of the offer so that you can maximize the offers benefits and minimize the lower price. 7- What does the paragraph in the listing agreement titled Entire Contract deal with? A religious organization providing housing to members only, C. The sale of a single-family home by an owner who owns five residences, D. Rental of a unit in an owner-occupied four-family flat. Negotiate agreements regarding commission structuring. Sunday afternoon, Mary is driving around and finds a property she likes better. 9 of 10 An agent must give a copy of the listing agreement to the sellers: A. 10- Which disclosures are NOT required to be made when selling residential property? When a home seller accepts a purchase offer, the seller is hoping the buyer will complete the transaction at the agreed-on price and believes there is nothing wrong with the condition of the home. What is this called? 57- Under federal income tax law, the basis for a personal residence is which of the following: A. A. 2 of 10 Developing a prospecting plan is similar to: 3 of 10 Which of the following is not a legal notice that can provide a listing lead? 3- What signals do buyers use to indicate they may be willing to make a purchase? Answer: D- Avoid telling him the price by setting up an immediate appointment. The selling agent must provide the disclosure to the seller as soon as practicable prior to presenting a purchase offer. Jim and Jane financed the remaining $25,000 through the seller. How long must a broker be licensed in order to apply for a temporary broker's license? 2 of 10 A competitive market analysis contains information about all of the following items except which? Now, calculate the origination fee; $168,500 x 0.02 = $3,370. 1 of 10 What kind of lease contains a recapture clause? Sets a limit on the commission a broker can earn. A. 2. C. How much time the licensees must spend in the office. 29- Which of the following is not a good direct mail technique? He sold the building for $1,000,000 and paid $60,000 in commission to the broker. 25- According to the law governing mortgage loan brokers, what is the maximum commission Broker Claire can charge for securing a $50,000 first mortgage for a period of 2 years? First mortgage on a single-family home, C. Primary mortgage on an office building, D. Settlement charges on a shopping center. When should the agent have disclosed this fact? D. Once escrow instructions are signed, changes can only be made with the written agreement of all parties. 56- Which is not a true statement about the Agency Disclosure? D. John expects his agents to spend 5 hours a week on unsupervised telephone duty. $5,500 the first year, plus a maximum 2% increase in market value per year, B. 7- Ben and Blanche receive a $200,000 offer on their home, which is listed at $208,000. 4 of 10 Timeshare buyers have the right to rescind a transaction within what timeframe after signing the purchase contract? 9 of 11 Lenders can charge all of the following except which fee when a borrower gets a loan? 7. A. 8- Why is it important to have a written prospecting plan? 1- What are the five aspects that are involved in any selling approach? 31- Patrick has a written independent contractor agreement with his broker Tami. 97- Buyer Randy makes an offer to purchase one of Broker Toms listings on June 15. A. The other 75% came from an hourly wage paid by Tami. At the time the agent presents an offer. A. C. Is permissible if being accepted on behalf of a third party. 07 Jun. What would you say about Alexs actions? Which of the following activities would she not be authorized to perform? Tom then resells the property to the developer and pockets a $300,000 profit. 8- Which section of the purchase agreement does not apply directly to the buyers and sellers? 4. 3. Present the higher-priced offer first. Give the prospects a black copy of a purchase agreement to look over. 87- What information can you gather from the newspaper to help develop a Prospecting Plan? D. Make the headline bold and all caps. This would be the maximum the purchaser would be permitted to borrow. D. Whether or not the licensees attend staff meetings. C. Be sure all requested inspections have been ordered. B. 9 of 12 When a lender is evaluating a buyers ability to repay a loan, the lender looks at all of these items except which one? This mortgage type is popular among the elderly. 5- Under what circumstances can a loss on the sale of a personal residence be deducted from income taxes? Try to get Sam to accept the offer. Buyer Amanda asks if she can measure the windows to see if her current drapes will fit. 8- Why should agent Grace give her client a Combined Hazards Book? D. Offer to call the prospect when new listings that meet his or her criteria come on the market. You bought if for the listing price plus 10% and sold it for the listing price. The purchase price, plus depreciation, B. 5. B. Rule E-1 The appraised value is $86,500; 80% of that amount is $69,200 ($86,500 x 0.80). The monthly net rental is $600. D. Gross income must be based on hours worked. 5- What actions can the sellers take regarding the purchase offer? Pellentesque dapibus efficitur laoreet. D. Exclusive-authorization-and-right-to-sell agreement. D. Buyers of FSBO homes are usually the ones who save money. B. 7 of 10 Which of these is not a good thing to do when writing a counteroffer? 5- Why is it important for the buyers to indicate whether or not they intend to occupy the property? B. They have $20,000 for a down payment and assumed the sellers mortgage of $75,000. 5- What does the safety clause in the listing agreement do? The couple now has. The lender makes payments to the borrower. 8- Which section of the purchase agreement does not apply directly to the buyers and sellers? C. The borrower pays a fixed rate of interest. Ashley should end this relationship by, : asking the seller to sign a mutual release. If the loan value is 80%, and the property was appraised at $86,500 and sold for $88,000, how much would the purchaser be permitted to borrow? A. C. Write and sign commission checks to salespersons. Who is responsible for removing the lien to clear the title? 6- List four sections of an Internet website that might be of particular appeal to prospective buyers. Tom violated the law by not providing notice of information that would affect Fred, When a broker received an unexpected bill, he deposited a client's earnest money check into his personal account to cover the expense. 4 of 10 Which of the following is NOT a condition of the safe harbor test? B. D. Broker Gina puts $150 into her trust account. Which of the following would be the least likely place for them to obtain a loan? California: Real Estate Practice Ch11 Quiz with no answers. He sounds really excited about this property. Answer: B- Encourage the buyer to get the attorney to review it quickly. B. 1 of 10 Which Fair Housing Law added sex to the list of protected classes? A. \text { Annual warranty cost } & 1,546,000 \\ He says to them, "Would you prefer to take possession on September 1 or October 1?" D. Collecting information and pre-qualifying buyers yourself is the easiest and best approach. 7 of 10 How might probate information help in prospecting? There is a crack in the basement wall. 10 of 10 Which of these Internet pages might be of particular interest to sellers? Auteur/autrice de la publication : Post published: 16 juin 2022 Post category: aerogarden pump settings for herbs aerogarden pump settings for herbs Supervises the Truth in Lending Act. 49- Agent Dan tells his buyers that the seller will leave the washer and dryer if the buyers make an offer now. This practice is: 24- When talking to his investment clients, Broker Adam often to tax shelters. B. California: Real Estate Practice Ch5 Quiz with no answers. fairbanks ice dogs standings . Discourage Sam from accepting an offer so far below Sam's asking price. Loan terms are from 15 to 25 years. He made $150,000 of improvements during the three years he lived in it before he sold it. Randy gives Tom an earnest money check for $1,000 and asks Tom to hold it until June 30, regardless of the date the seller accepts the offer. Which one is illegal in many states? 24 of 50 Tim thinks his buyers are ready to make an offer. She is probably using all but which of the following tools? Regulates reserve requirements for all institutions that offer checking accounts. D. Avoid negative comments while hes inside the home. The fees that Eric charges Paul for making the loan could be any but which of the following amounts? B. D. The selling agent must provide the disclosure to the buyer as soon as practicable prior to the execution of the buyers offer to purchase. An Offer to Purchase REval Estate (the "Offer") is a document that sets out the basic proposed terms and conditions between the Buyer and the Seller in a rEval estate transaction. A. Forwarding calls from the public to one of the salespersons in the office. 3 of 10 The IREM designation reserved for individuals who meet a certain level of education and experience is: 4 of 10 When setting up a rent schedule, a property manager should analyze all but which of the following? What kinds of things should you include in a weekly activity report? How should licensee Fred handle this offer? Pellentesque dapibus efficitur laoreet. How much do you have in your savings account? Go back to the buyer's agent and try to get the offer higher. What kinds of things should he be looking for? C. Tell the sellers you expect an offer to be coming soon. California: Real Estate Practice Chapter 15 Quiz with no answers. A. What would we call Hannah? 1 of 10 Which of the following types of agency is not allowed in California? They will owe a balloon payment at the end of the loan term. D. Do not show the home between 10 a.m. and noon on Sundays. D. Chris is a buyer's agent. 1 of 10 All of the following are good approaches for handling objections except which? 7 of 10 Most buyers who see a newspaper ad that interests them: 8 of 10 Which of the following is not an advantage of home ownership? Hometown Real Estate, receives $100.00 each time they refer a customer to New Age flooring. Answer: C- Ask the buyer if the buyer would like to make an offer taking the roof age into account. Answer: B- Licensee Fred should take the offer to the seller and determine if the escrow deposit is acceptable. Which of these ad headlines would probably be the least effective for this home? It became a contingent contract when Sam accepted Mary's offer. Preparation of an appraisal of the property, D. Help with required forms and disclosures. Only needs to be done periodically. 4- What are the major areas of newspaper leads? B. Her property taxes would be assessed at: 79- Tom and Mary want to purchase their first home. An apartment building for a vacant lot, B. D. An exclusive listing must always be at least 30 days long. D. The first and second mortgage will be rolled into one. Which of the following conditions is Paul not required to report on this form? 4 of 10 Which of these is not an important aspect of selling? 3 of 10 Which of the following statements is NOT true regarding a broker acting as an escrow agent? A. C. The builder paid a lump sum amount at closing to reduce the interest rate for a few years. 71- When agent Jane meets with her sellers to offer suggestions, she most likely would not give them: 72- According to RESPA, a buyer or seller cannot legally be charged at closing for which of the following items? 9 of 10 Agent Paul is bound to inform his client of all facts that might affect the clients interests both what Paul knows and what he should have known. Which of these situations would not be something Paul should know? The HUD-1 Uniform Settlement Statement, required by RESPA, must be used in what instance? 8- Why is it important to have a written prospecting plan? B. The borrower makes payments of interest only over the term of the loan. A Bill of Sale gives title to the business equipment. 26 of 50 Veteran Bill has applied and been approved for a non-VA-guaranteed CalVet loan. She doesnt need a license to perform many activities at the firm, but which of the following would require her to have a license? 7 of 10 When the broker and seller agree that the broker can receive commission for a specified number of days after the listing expires if selling to a named party on a list, its referred to by what term? Information on current loan programs.