California Real Estate Principles – Questions and Answers Exam – 100% Solved
(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
(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
(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
(1) 12. Broker Luis has an exclusive listing agreement with the Pierces. The listing will terminate
"when the parties agree". This practice is
,California Real Estate Principles – Questions and Answers Exam – 100% Solved
a. acceptable
b. mandated
c. discouraged
d. prohibited - ✔✔✔-prohibited
(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
c. discouraged
d. prohibited - ✔✔✔-mandated
(1) 14. Maya is a broker-officer of XYZ Realty, Inc. She does not like the overly aggressive sales
tactic's of XYZ's salespeople but has not reprimanded them because business is so good. Maya's
conduct is
a. acceptable
b. mandated
c. discouraged
d. prohibited - ✔✔✔-discouraged
(1) 15. Broker Bob wants to help out his neighbor's son, Igor, who recently acquired a BA in
history from Back East University. Broker Bob hires Igor to show property to prospective buyers.
Because Igor has no real estate license, Bob handles all of the negotiating. This practice is
,California Real Estate Principles – Questions and Answers Exam – 100% Solved
a. acceptable
b. mandated
c. discouraged
d. prohibited - ✔✔✔-prohibited
(1) 16. Salesperson Sally is selling the Martinez Mansion. An offer has been accepted, and the
closing will take place in two weeks. While the owners are out of town, the buyer asks if the
closing can be put off for one day. Sally agrees on behalf of the owners, for she is sure they will
not object. Sally's conduct is
a. acceptable
b. mandated
c. discouraged
d. prohibited - ✔✔✔-prohibited
(1) 17. The Anderson house is for sale following the murder of Mrs. Anderson by Mr. Anderson
in the breakfast room six months earlier. Salesperson Sam, showing an out-of-town prospect
through the house, decides to keep information about the murder to himself. Sam's conduct is
a. acceptable
b. mandated
c. discouraged
d. prohibited - ✔✔✔-prohibited
(1) 18. Broker Luis is so busy that he never has the time to return the phone calls of his
principals. He prefers to spend his time in the field making sales and acquiring new listings. This
practice is
, California Real Estate Principles – Questions and Answers Exam – 100% Solved
a. acceptable
b. mandated
c. discouraged
d. prohibited - ✔✔✔-discouraged
(1) 19. After attending a get-rich-quick real estate seminar, Kim wants to buy a house cheap. She
tells broker Bob she will offer $50,000, with seller financing and no down payment, on the
Henderson house. The Henderson house has an asking price of $125,000. Bob presents the offer
with one of his own for $85,000, telling the Hendersons that the expected market conditions
make their asking price unrealistic. His conduct is
a. acceptable
b. mandated
c. discouraged
d. prohibited - ✔✔✔-prohibited
(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
(1) 20. Rudy opens his brokerage office and immediately places an ad in the local newspaper:
List Your House with Me and I Will Pay You $500 at closing. This practice is
a. acceptable
b. mandated
(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
(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
(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
(1) 12. Broker Luis has an exclusive listing agreement with the Pierces. The listing will terminate
"when the parties agree". This practice is
,California Real Estate Principles – Questions and Answers Exam – 100% Solved
a. acceptable
b. mandated
c. discouraged
d. prohibited - ✔✔✔-prohibited
(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
c. discouraged
d. prohibited - ✔✔✔-mandated
(1) 14. Maya is a broker-officer of XYZ Realty, Inc. She does not like the overly aggressive sales
tactic's of XYZ's salespeople but has not reprimanded them because business is so good. Maya's
conduct is
a. acceptable
b. mandated
c. discouraged
d. prohibited - ✔✔✔-discouraged
(1) 15. Broker Bob wants to help out his neighbor's son, Igor, who recently acquired a BA in
history from Back East University. Broker Bob hires Igor to show property to prospective buyers.
Because Igor has no real estate license, Bob handles all of the negotiating. This practice is
,California Real Estate Principles – Questions and Answers Exam – 100% Solved
a. acceptable
b. mandated
c. discouraged
d. prohibited - ✔✔✔-prohibited
(1) 16. Salesperson Sally is selling the Martinez Mansion. An offer has been accepted, and the
closing will take place in two weeks. While the owners are out of town, the buyer asks if the
closing can be put off for one day. Sally agrees on behalf of the owners, for she is sure they will
not object. Sally's conduct is
a. acceptable
b. mandated
c. discouraged
d. prohibited - ✔✔✔-prohibited
(1) 17. The Anderson house is for sale following the murder of Mrs. Anderson by Mr. Anderson
in the breakfast room six months earlier. Salesperson Sam, showing an out-of-town prospect
through the house, decides to keep information about the murder to himself. Sam's conduct is
a. acceptable
b. mandated
c. discouraged
d. prohibited - ✔✔✔-prohibited
(1) 18. Broker Luis is so busy that he never has the time to return the phone calls of his
principals. He prefers to spend his time in the field making sales and acquiring new listings. This
practice is
, California Real Estate Principles – Questions and Answers Exam – 100% Solved
a. acceptable
b. mandated
c. discouraged
d. prohibited - ✔✔✔-discouraged
(1) 19. After attending a get-rich-quick real estate seminar, Kim wants to buy a house cheap. She
tells broker Bob she will offer $50,000, with seller financing and no down payment, on the
Henderson house. The Henderson house has an asking price of $125,000. Bob presents the offer
with one of his own for $85,000, telling the Hendersons that the expected market conditions
make their asking price unrealistic. His conduct is
a. acceptable
b. mandated
c. discouraged
d. prohibited - ✔✔✔-prohibited
(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
(1) 20. Rudy opens his brokerage office and immediately places an ad in the local newspaper:
List Your House with Me and I Will Pay You $500 at closing. This practice is
a. acceptable
b. mandated
