Real Estate Prep #1

9. Agency relationships may not be solely created by:

• 
  a) voluntary offer by the agent.
  

• b) implied contract.

• c) ratification

• d) necessity or emergency.

11. Gloria is considering an income-producing property to purchase as an investment. In analyzing its suitability for investment, what is Gloria most interested in?

• a) The net operating income.

• b) Taxes to be paid on the property.

• c) The property's operating expenses.

• d) The capitalization (cap) rate.

17. The final step in the appraisal process is to:

• a) reconcile the different approaches and arrive at a conclusion.

• b) average the values from the different approaches to arrive at a conclusion.

• c) assign values and estimate the total.

• d) justify the sales price.

8. The principle that housing passes down to lower economic groups would be:

• a) Crane's Law.

• b) supply and demand.

• c) filtering down.

• d) correlative theorem.

19. When a broker solicits and accepts a deposit on the purchase of real property without express written authorization from the owner to sell the property, the broker is:

• a) guilty of converting a customer's funds for their own benefit.

• b) guilty of violating their fiduciary duty to the owner.

• c) acting as an agent for the buyer.

• d) acting under a restricted listing.
  

A(n)____________ is an individual's opinion or estimate of a property's value on a specific date.

• a) termite inspection

• b) home inspection

• c) appraisal

• d) open house

23. The employment agreement between a broker and a salesperson needs to be retained by the broker and salesperson for:

• a) three years from the date of the execution of the contract.

• b) three years from the date of the termination of the salesperson's employment.

• c) four years from the date of the termination of the salesperson's employment.

• d) five years from the date of the termination of the salesperson's employment.

1. Real property that is acquired by a neighbor through natural processes such as erosion is an example of:

• a) appurtenance.

• b) a prescriptive easement.

• c) accretion.

• d) avulsion.

2. If evidence of active infestation is found, a structural pest control report is required to be provided:

• a) when the home being purchased is financed by a Federal Housing Administration (FHA)-insured loan or U.S. Department of Veterans Affairs (VA)-guaranteed loan.

• b) whenever requested by the buyer, whether or not the seller agreed to do so in the contract.

• c) in every sale involving a wood-frame residence.

• d) in every sale of a foreclosed property that has been unoccupied for greater than one year.

3. A purchaser of a condominium unit requests a copy of the conditions, covenants and restrictions (CC&Rs) and bylaws. These documents need to be provided within:

• a) one week.

• b) ten days.

• b) ten days.

• d) any time prior to close of escrow.