Page 1 of 286
CALIFORNIA REAL ESTATE EXAM |
FREQUENTLY TESTED QUESTIONS WITH
CORRECT ANSWERS | BRAND NEW!
The Truth-in-Lending Law would apply to which of the following?
a. First trust deed and junior loans
b. Construction loans
c. All loan transactions
d. None of the above - ✔✔✔ Correct Answer > a. First trust deed and
junior loans
Does NOT apply to ALL loans, i.e., construction loans to
developers or builders.
A salesperson brought in an offer on an office lot listing for
$18,500. The broker, when taking the listing, was informed by the
seller that they would take $18,000. What must the broker do?
a. Do nothing and close the deal at $18,000.
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b. Inform the buyer of the $18,000 acceptable price.
c. Say nothing to the seller, and split the $500 equally with the
selling salesperson.
d. Present the $18,500 offer to the sellers for approval. - ✔✔✔
Correct Answer > d. Present the $18,500 offer to the sellers for
approval.
A salesperson must present all reasonable offers to the seller at
the same time.
Characteristics of a particular lender are: prefers short-term
loans; prefers interim loans; buyer costs are higher than other
lenders; past relationships with borrowers are important. What
kind of lender is this?
a. Savings bank
b. Insurance company
c. Private individual
d. Commercial bank - ✔✔✔ Correct Answer > d. Commercial bank
A house sold for $120,000 on which a seller was to pay 6%
brokerage fee. Other costs were 1% prepayment penalty on
existing $90,000 first loan balance, escrow fees of $500, title
insurance premium of $400, and 3 points (%) loan discount fee on
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a new loan of $110,000 (VA). The seller's costs would be what
percent of his equity?
a. 10.25%
b. 17%
c. 41%
d. 13.7% - ✔✔✔ Correct Answer > c. 41%
Total costs: Broker's fee $7,200
Prepayment penalty $900
Escrow and title fees $900
Discount fee on new loan $3,300
Total Costs $12,300
Equity = Sale Price - Old Loan Balance
= $120,000 - 90,000 = $30,000
Percentage = $12,300 ÷ $30,000 x (100) = 41%
An appraisal is an:
a. estimate of value.
b. opinion of value.
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c. opinion of listing price.
d. opinion of selling price - ✔✔✔ Correct Answer > b. opinion of value.
Appraisers are licensed and certified to provide a professional
opinion of value. Anyone may estimate. Answers "c" and "d" are
professional services provided by licensed real estate agents
and brokers engaged in the sale of real estate.
You have taken an exclusive right to sell listing to assist an
owner in selling his home. The owner could lease the property
for a maximum of:
a. as long as he wishes, with consent of broker.
b. not more than 99 years, with or without the broker's consent.
c. not beyond the listing period, without the broker's consent.
d. the owner cannot lease the property without the consent of the
broker, as is clearly spelled out in the listing agreement. - ✔✔✔
Correct Answer > b. not more than 99 years, with or without the
broker's consent.
The owner can do as he wishes, with or without the consent of
the broker. However, violation of the listing agreement could
create a condition whereby the owner was liable to the broker
for a full commission. Under no circumstances can the owner
CALIFORNIA REAL ESTATE EXAM |
FREQUENTLY TESTED QUESTIONS WITH
CORRECT ANSWERS | BRAND NEW!
The Truth-in-Lending Law would apply to which of the following?
a. First trust deed and junior loans
b. Construction loans
c. All loan transactions
d. None of the above - ✔✔✔ Correct Answer > a. First trust deed and
junior loans
Does NOT apply to ALL loans, i.e., construction loans to
developers or builders.
A salesperson brought in an offer on an office lot listing for
$18,500. The broker, when taking the listing, was informed by the
seller that they would take $18,000. What must the broker do?
a. Do nothing and close the deal at $18,000.
,Page 2 of 286
b. Inform the buyer of the $18,000 acceptable price.
c. Say nothing to the seller, and split the $500 equally with the
selling salesperson.
d. Present the $18,500 offer to the sellers for approval. - ✔✔✔
Correct Answer > d. Present the $18,500 offer to the sellers for
approval.
A salesperson must present all reasonable offers to the seller at
the same time.
Characteristics of a particular lender are: prefers short-term
loans; prefers interim loans; buyer costs are higher than other
lenders; past relationships with borrowers are important. What
kind of lender is this?
a. Savings bank
b. Insurance company
c. Private individual
d. Commercial bank - ✔✔✔ Correct Answer > d. Commercial bank
A house sold for $120,000 on which a seller was to pay 6%
brokerage fee. Other costs were 1% prepayment penalty on
existing $90,000 first loan balance, escrow fees of $500, title
insurance premium of $400, and 3 points (%) loan discount fee on
,Page 3 of 286
a new loan of $110,000 (VA). The seller's costs would be what
percent of his equity?
a. 10.25%
b. 17%
c. 41%
d. 13.7% - ✔✔✔ Correct Answer > c. 41%
Total costs: Broker's fee $7,200
Prepayment penalty $900
Escrow and title fees $900
Discount fee on new loan $3,300
Total Costs $12,300
Equity = Sale Price - Old Loan Balance
= $120,000 - 90,000 = $30,000
Percentage = $12,300 ÷ $30,000 x (100) = 41%
An appraisal is an:
a. estimate of value.
b. opinion of value.
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c. opinion of listing price.
d. opinion of selling price - ✔✔✔ Correct Answer > b. opinion of value.
Appraisers are licensed and certified to provide a professional
opinion of value. Anyone may estimate. Answers "c" and "d" are
professional services provided by licensed real estate agents
and brokers engaged in the sale of real estate.
You have taken an exclusive right to sell listing to assist an
owner in selling his home. The owner could lease the property
for a maximum of:
a. as long as he wishes, with consent of broker.
b. not more than 99 years, with or without the broker's consent.
c. not beyond the listing period, without the broker's consent.
d. the owner cannot lease the property without the consent of the
broker, as is clearly spelled out in the listing agreement. - ✔✔✔
Correct Answer > b. not more than 99 years, with or without the
broker's consent.
The owner can do as he wishes, with or without the consent of
the broker. However, violation of the listing agreement could
create a condition whereby the owner was liable to the broker
for a full commission. Under no circumstances can the owner
