California Real Estate Principles – 393
Questions and Answers/ Already Graded A+
(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 - Answer: 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
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,a. acceptable
b. mandated
c. discouraged
d. prohibited - Answer: 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 - Answer: 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
a. acceptable
b. mandated
c. discouraged
d. prohibited - Answer: prohibited
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,(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 - Answer: 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 - Answer: 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
a. acceptable
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, b. mandated
c. discouraged
d. prohibited - Answer: 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 - Answer: prohibited
(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
c. discouraged
d. prohibited - Answer: acceptable
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Questions and Answers/ Already Graded A+
(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 - Answer: 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
Page 1 of 103
,a. acceptable
b. mandated
c. discouraged
d. prohibited - Answer: 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 - Answer: 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
a. acceptable
b. mandated
c. discouraged
d. prohibited - Answer: prohibited
Page 2 of 103
,(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 - Answer: 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 - Answer: 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
a. acceptable
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, b. mandated
c. discouraged
d. prohibited - Answer: 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 - Answer: prohibited
(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
c. discouraged
d. prohibited - Answer: acceptable
Page 4 of 103
