RE EXAM PREP: LATEST KEY QUESTIONS AND ANSWERS FOR AN
A+
It is unlawful for someone to sell any franchise that is regulated by the Franchise
Investment Law unless such a person has made application to the Corporations
Commissioner or is licensed by the
a. Real Estate Commissioner
b. Franchise Tax Board
c. Corporations Commissioner
d. either A or C
d. A person licensed by either the Real Estate Commissioner or the Corporations
Commissioner may sell a franchise
A buyer gave a salesperson a $1,000 personal note to act as the earnest money
deposit in an offer to buy a home, The salesperson
a. should not tell the seller form of earnest accompanies the offer
b. should inform the seller that the earnest money deposit is a personal note,
prior to as an earnest money deposit,
c. should not have accepted a personal note as an earnest money deposit.
d. should refuse to present the offer until the buyer replaces the $1,000 personal
note with cash
b. The salesperson should inform the seller that the earnest money deposit is a
personal note, prior to the seller's acceptance of the offer
When may a real estate broker, acting as agent for a seller., refuse to submit a
buyers offer?
a. when the owner has already accepted an offer.
b. when the owner has already accepted a better offer
c. when the owner has given broker express instructions not to submit any
further offers
d. never, all offers must be presented
c. a broker must present all offers unless they aer frivolous or unless seller has
expressly instructed broker to submit no further offers
,An option to buy real estate becomes a mutually binding contract, when
a. the option is given to the optionee by the optionor
b. the optionee exercises the right to purchase
c. the consideration for the option is given
d. any of the above
b. an option to purchase becomes a mutually binding contract when the optionee
(buyer) exercises the right to buy.
Mr Johnson told broker BOB 'while I will not sign a listing for my home, if you can
find a buyer who will pay at least $250,000 for it, I'll pay you a commission ' three
weeks later, broker Bob found a buyer who gave him a $1,000 deposit on the
purchase price of $255,00 along with a signed offer to purchase. when the offer
was presented to Mrs Johnson, she accepted it and then demanded that the
deposit be given to her. Which of the following is true?
a. Once the offer is accepted, the deposit belong to the seller, broker Bob must
give it to her upon demand.
b. Broker Bob may not give the buyer 's deposit to the seller without the buyers
written consent
c. because the listing was not in writing, broker Bob is not obligated to follow the
sellers's orders
d. Brokers Bob should deposit the money into escrow and then let the escrow
officer worry about it.
b. The broker must get the consent of the buyer before releasing the check to the seller.
How many square miles does a section contain?
a. 1
b. 6
c 36
d. 180
a.a section is one mile by one mile, one mile square and contains one square mile 640
acres.
Which of the following is not essential to the creation of an agency relationship?
a. consent of the principal
, b. competency of the principal
c a fiduciary relationship
d. agreement to pay consideration
d. Agency does not require consideration. A broker could act as an agent without
getting paid.
When a real estate agent acts exclusively as a buyers's agent, he can do all of the
following, except
a. present offers directly to the seller
b. present offers to the seller's agent
c. withhold confidential information about the buyer from the seller
d. act as an exclusive agent of the seller
d. When the licensee is the exclusive agent of the buyer, he may not be the exclusive
agent for the seller .
A subcontractor was hired to install hardwood floors on a home under
construction. If the subcontractor had to file a mechanic's lien to get paid, the
mechanic's lien would take priority as of the date
a. the installation of the hardwood floors began
b. the entire project began
c. work was completed on the entire project
d. work was completed on the hardwood
b. a subcontractor's mechanics lien would take priority as of the date the entire project
began
With promissory note and trust deed signed by two or more co borrowers
defaults, what is the liability?
a. personal and corporate liability
b. all are together liable as individual borrowers
c. each is jointly and severally liable
d. each is individually and severely liable
c. each of the co borrowers on a loan will be held jointly and severally liable
what listing requires an owner to pay a commission if she sells the property
herself?
A+
It is unlawful for someone to sell any franchise that is regulated by the Franchise
Investment Law unless such a person has made application to the Corporations
Commissioner or is licensed by the
a. Real Estate Commissioner
b. Franchise Tax Board
c. Corporations Commissioner
d. either A or C
d. A person licensed by either the Real Estate Commissioner or the Corporations
Commissioner may sell a franchise
A buyer gave a salesperson a $1,000 personal note to act as the earnest money
deposit in an offer to buy a home, The salesperson
a. should not tell the seller form of earnest accompanies the offer
b. should inform the seller that the earnest money deposit is a personal note,
prior to as an earnest money deposit,
c. should not have accepted a personal note as an earnest money deposit.
d. should refuse to present the offer until the buyer replaces the $1,000 personal
note with cash
b. The salesperson should inform the seller that the earnest money deposit is a
personal note, prior to the seller's acceptance of the offer
When may a real estate broker, acting as agent for a seller., refuse to submit a
buyers offer?
a. when the owner has already accepted an offer.
b. when the owner has already accepted a better offer
c. when the owner has given broker express instructions not to submit any
further offers
d. never, all offers must be presented
c. a broker must present all offers unless they aer frivolous or unless seller has
expressly instructed broker to submit no further offers
,An option to buy real estate becomes a mutually binding contract, when
a. the option is given to the optionee by the optionor
b. the optionee exercises the right to purchase
c. the consideration for the option is given
d. any of the above
b. an option to purchase becomes a mutually binding contract when the optionee
(buyer) exercises the right to buy.
Mr Johnson told broker BOB 'while I will not sign a listing for my home, if you can
find a buyer who will pay at least $250,000 for it, I'll pay you a commission ' three
weeks later, broker Bob found a buyer who gave him a $1,000 deposit on the
purchase price of $255,00 along with a signed offer to purchase. when the offer
was presented to Mrs Johnson, she accepted it and then demanded that the
deposit be given to her. Which of the following is true?
a. Once the offer is accepted, the deposit belong to the seller, broker Bob must
give it to her upon demand.
b. Broker Bob may not give the buyer 's deposit to the seller without the buyers
written consent
c. because the listing was not in writing, broker Bob is not obligated to follow the
sellers's orders
d. Brokers Bob should deposit the money into escrow and then let the escrow
officer worry about it.
b. The broker must get the consent of the buyer before releasing the check to the seller.
How many square miles does a section contain?
a. 1
b. 6
c 36
d. 180
a.a section is one mile by one mile, one mile square and contains one square mile 640
acres.
Which of the following is not essential to the creation of an agency relationship?
a. consent of the principal
, b. competency of the principal
c a fiduciary relationship
d. agreement to pay consideration
d. Agency does not require consideration. A broker could act as an agent without
getting paid.
When a real estate agent acts exclusively as a buyers's agent, he can do all of the
following, except
a. present offers directly to the seller
b. present offers to the seller's agent
c. withhold confidential information about the buyer from the seller
d. act as an exclusive agent of the seller
d. When the licensee is the exclusive agent of the buyer, he may not be the exclusive
agent for the seller .
A subcontractor was hired to install hardwood floors on a home under
construction. If the subcontractor had to file a mechanic's lien to get paid, the
mechanic's lien would take priority as of the date
a. the installation of the hardwood floors began
b. the entire project began
c. work was completed on the entire project
d. work was completed on the hardwood
b. a subcontractor's mechanics lien would take priority as of the date the entire project
began
With promissory note and trust deed signed by two or more co borrowers
defaults, what is the liability?
a. personal and corporate liability
b. all are together liable as individual borrowers
c. each is jointly and severally liable
d. each is individually and severely liable
c. each of the co borrowers on a loan will be held jointly and severally liable
what listing requires an owner to pay a commission if she sells the property
herself?
