California Real Estate Principles - Questions and
Answers
1. (1) 1. The Real Estate Law is found in the
a. Licensing Code
b. Business and Professions Code
c. Health and Safety Code
d. Corporations Code: Business and Professions Code
2. (1) 2. The Real Estate Commissioner reports to the
a. California Bureau of Real Estate
b. governor
c. Real Estate Advisory Commission
d. legislature: governor
3. (1) 3. Salesperson Sam owns 25% of the outstanding shares of
Rollo Realty, Inc., and broker Barbara Rollo owns the remaining
shares. This division of ownership is?
a. acceptable
b. mandated
c. discouraged
d. prohibited: acceptable
4. (1) 4. Salesperson Sam is part owner of Rollo Realty, Inc. In
the broker's absence, Sam frequently reviews the work of sales
associates. This is?
a. acceptable
b. mandated
c. discouraged
d. prohibited: prohibited
5. (1) 5. A real estate business that is a partnership can have
more than one office location, provided
,a. a broker partner obtains an additional license for each location
b. all partners are real estate licensees
c. there is a designated broker-officer
d. there is at least one partner at each location: a broker partner obtains an
additional license for each location
6. (1) 6. The sale or transfer of goods ordinarily held for sale in the
course of business is governed in California by the?
a. Business Opportunity Code
b. Commercial Transfer Law
c. Uniform Commercial Code
d. Real Estate Law: Uniform Commercial Code
7. (1) 7. Todd, an officer of Ajax Corporation and not a real estate
licensee, successfully negotiated the purchase of the Smith Widget
Plant on behalf of Ajax. Todd received a commission on the sale in
addition to his normal salary.
Todd
a. did not need a real estate license for the deal
b. should have had a real estate license
c. is exempt from licensing requirements
d. None of these: should have had a real estate license
8. (1) 8. If a real estate license is NOT renewed before it expires, the
licensee?
a. is allowed to complete transactions in progress
b. is allowed to finish transactions that are substantially complete
c. must cease all real estate activities
d. may act under authority of another agent's license for a period not
to exceed 60 days: must cease all real estate activities
9. (1) 9. A real estate licensee can offer a mobile home for sale that
is?
,a. in a manufacturing plant, ready for delivery
b. transportable under an exemption from the vehicle code
c. presold
d. in a location where it can legally remain for one year: in a location where it
can legally remain for one year
, 10. (1) 10. The Browns desperately want to move to Pine Bend,
and they like the Smith House, which is listed by broker Bob. The
Browns tell Bob they will make it worth his while if he can persuade
the Smith's to accept the Brown offer on their house, and the
Browns send an expensive food basket to Bob as a sign of their good
faith. Bob neglects to mention this to the Smiths. This practice is
a. acceptable
b. mandated
c. discouraged
d. prohibited: prohibited
11. (1) 11. Broker Bob routinely places earnest money deposits
in his personal account for overnight safekeeping. This practice is
a. acceptable
b. mandated
c. discouraged
d. prohibited: prohibited
12. (1) 12. Broker Luis has an exclusive listing agreement with
the Pierces. The listing will terminate "when the parties agree". This
practice is
a. acceptable
b. mandated
c. discouraged
d. prohibited: prohibited
13. (1) 13. When broker Bob exercised his option to buy Whiteacre,
he presented to the owner of Whiteacre a written statement of his
expected profit in the transaction. The seller agreed to proceed
with the sale. This conduct is
a. acceptable
b. mandated
Answers
1. (1) 1. The Real Estate Law is found in the
a. Licensing Code
b. Business and Professions Code
c. Health and Safety Code
d. Corporations Code: Business and Professions Code
2. (1) 2. The Real Estate Commissioner reports to the
a. California Bureau of Real Estate
b. governor
c. Real Estate Advisory Commission
d. legislature: governor
3. (1) 3. Salesperson Sam owns 25% of the outstanding shares of
Rollo Realty, Inc., and broker Barbara Rollo owns the remaining
shares. This division of ownership is?
a. acceptable
b. mandated
c. discouraged
d. prohibited: acceptable
4. (1) 4. Salesperson Sam is part owner of Rollo Realty, Inc. In
the broker's absence, Sam frequently reviews the work of sales
associates. This is?
a. acceptable
b. mandated
c. discouraged
d. prohibited: prohibited
5. (1) 5. A real estate business that is a partnership can have
more than one office location, provided
,a. a broker partner obtains an additional license for each location
b. all partners are real estate licensees
c. there is a designated broker-officer
d. there is at least one partner at each location: a broker partner obtains an
additional license for each location
6. (1) 6. The sale or transfer of goods ordinarily held for sale in the
course of business is governed in California by the?
a. Business Opportunity Code
b. Commercial Transfer Law
c. Uniform Commercial Code
d. Real Estate Law: Uniform Commercial Code
7. (1) 7. Todd, an officer of Ajax Corporation and not a real estate
licensee, successfully negotiated the purchase of the Smith Widget
Plant on behalf of Ajax. Todd received a commission on the sale in
addition to his normal salary.
Todd
a. did not need a real estate license for the deal
b. should have had a real estate license
c. is exempt from licensing requirements
d. None of these: should have had a real estate license
8. (1) 8. If a real estate license is NOT renewed before it expires, the
licensee?
a. is allowed to complete transactions in progress
b. is allowed to finish transactions that are substantially complete
c. must cease all real estate activities
d. may act under authority of another agent's license for a period not
to exceed 60 days: must cease all real estate activities
9. (1) 9. A real estate licensee can offer a mobile home for sale that
is?
,a. in a manufacturing plant, ready for delivery
b. transportable under an exemption from the vehicle code
c. presold
d. in a location where it can legally remain for one year: in a location where it
can legally remain for one year
, 10. (1) 10. The Browns desperately want to move to Pine Bend,
and they like the Smith House, which is listed by broker Bob. The
Browns tell Bob they will make it worth his while if he can persuade
the Smith's to accept the Brown offer on their house, and the
Browns send an expensive food basket to Bob as a sign of their good
faith. Bob neglects to mention this to the Smiths. This practice is
a. acceptable
b. mandated
c. discouraged
d. prohibited: prohibited
11. (1) 11. Broker Bob routinely places earnest money deposits
in his personal account for overnight safekeeping. This practice is
a. acceptable
b. mandated
c. discouraged
d. prohibited: prohibited
12. (1) 12. Broker Luis has an exclusive listing agreement with
the Pierces. The listing will terminate "when the parties agree". This
practice is
a. acceptable
b. mandated
c. discouraged
d. prohibited: prohibited
13. (1) 13. When broker Bob exercised his option to buy Whiteacre,
he presented to the owner of Whiteacre a written statement of his
expected profit in the transaction. The seller agreed to proceed
with the sale. This conduct is
a. acceptable
b. mandated
