Practice of Real Estate Progress Exam 1

Assume a broker's license is suspended by the Real Estate Commissioner. All of the following statements are correct, except:

• the broker and his salesmen may not continue to collect rents.

• commissions earned before the start of the suspension cannot be collected.

• all listings in force are voidable.

• pending executory contracts are voidable.

A cooperative service conducted by a group of brokers who are members of a real estate association:

• CAR.

• NAR.

• Multiple Listing Service.

• Legal Hotline Service.

A broker refuses to return buyer's deposit upon seller's refusal of buyer's offer. Buyer mails a verified complaint to the Commissioner, who should:

• investigate as the law requires.

• it is up to his discretion as to whether to investigate or not.

• act as mediator between broker and buyers.

• must not investigate as it is a matter for the civil court only.

Conversion is a violation of the Real Estate Law. If a broker is sued for conversion, he is alleged with:

•  misappropriating client's funds.

• making a secret profit.

• segregation.

• commingling.

Which of the following covers Federal Fair Housing laws?

• Rumford Act

• 13th Amendment to the U. S. Constitution

•  Unruh Civil Rights Act

• Title VIII, Civil Rights Act of 1968

When a broker receives an advance fee for advertising a listed property:

• he must cash the check immediately.

• he must hold it until the property is sold.

•  he must put the money in his client trust account.

• he must return it if the property is not sold.

The Real Estate Commissioner would most likely deny a license to which of the following applicants?

• A person unable to prove his reputation of honesty, truthfulness, and integrity

• A person having been acquitted of a felony

• A person having been adjudged a bankrupt

•   All of the above

Prior to holding a hearing to consider revoking or suspending a real estate license, the Real Estate Commission must first serve the license affected with a(n):

• complaint.

• demurrer.

•  accusation.

•  lis pendens.

For violations of the Real Estate Law, procedure for disciplinary action is set in the:

•  Business and Professions Code.

• Civil Code.

•  California Code of Regulations.

• none of the above

A broker may refuse to present an offer when the:

•   property has already been sold and the escrow has closed.

• offer is too low.

• agent wants to sell the buyer a different property.

• buyer is rude.