California Real State Exam Practice Test 1 Multiple Choice Questions and Answers (100% Verified Answers) Latest Update 2024

1. Broker A accepted a deposit from Buyer B with an offer on a property, and promptly deposited the Buyer's check into his Trust Account. Seller rejected the offer and Buyer demanded the deposit back—immediately. Broker wrote check to Buyer from Trust Account, but later learned that Buyer's original check had not cleared due to insufficient funds. Which of the following statements is correct? a. Broker violated Real Estate Law by refunding Buyer's deposit before receiving notice it had cleared b. Broker has shortages in his Trust Account c. Broker should have given Buyer a postdated check d. All of the above - b. broker has shortages in his trust account 2. The resale of which of the following would NOT require a notice to the Bureau of Real Estate (BRE)? a. 2 units in a planned development b. 5 units in a condominium project c. 5 lots in a standard subdivision d. 5 units in a stock cooperative - a. 2 units in a planned development 3. A real estate broker lends his own money to Buyer to aid in purchasing a home. The note is for $4,000, and will be secured by a trust deed on the purchased property. The note interest rate is 12% per year, with monthly payments of $40. Final payoff will be on the 48th monthly payment. Which of the following is true? a. Broker holds legal title to property b. Broker is in violation of usury c. Final amount of payoff on the 48th month will be $4,040 d. None of the above - c. Final amount of payoff on the 48th month will be $4,040 4. National Fair Housing principles are founded on: a. First Amendment to the Constitution b. Unruh Act c. 13th Amendment to the Constitution d. Rumford Act. - c. 13th Amendment of the Constitution 5. If Notification of Default was filed on July 15 and publication of sale was started on Oct. 15, the right of the Trustor after Oct. 15 is: a. pay the back payments and late charges and fees b. pay the balance due, including all penalties and late charges c. neither a nor b d. either a or b - d. either a or b 6. What is NOT required to be disclosed under the Truth-in-Lending Law? a. Annual percentage rate (APR) b. Length of loan c. Monthly payment d. Total finance charge in purchase of single-family, owner-occupied dwelling - d. Total finance charge in purchase of single-family, owner-occupied dwelling