WorksheetsPractice of Real Estate Progress Exam 2
Total questions: 40
Worksheet time: 20mins
A policy manual is a(n):
outline of the Code of Ethics.
book describing insurance coverage.
floor schedule for salespeople.
outline of the procedures under which an office operates.
Assume you are in need of money and ask broker John Jones to negotiate a second trust deed loan for you. Which of the following will be the broker's responsibility?
Make sure that the trust deed has the proper amount of revenue stamps on it
Have the broker's loan statement signed by all three parties
Make sure that the property is appraised to justify the loan
See to it that the trust deed is recorded and names the lender as the beneficiary
With the broker's authorization, which of the following may withdraw funds from the broker's trust account?
A salesperson who works for the broker
A corporate officer of a corporation acting as a broker for the corporation
An unlicensed employee of the broker working under a fiduciary bond
All of the above
The Code of Ethics in the field of real estate was formulated and adopted by the:
National Association of Real Estate Brokers.
National Association of Real Estate Brokers.
National Association of Realtors.
Real Estate Board.
A real estate licensee is using strong efforts to obtain listings in a nonintegrated community. He finds success by insinuation that if minorities move in, the value of the property will decrease. His activities may be best described as:
steering.
panic peddling.
blockbusting
both b and c
Margaret, a broker, earned a commission on the sale of one of her listings. At the closing, the seller refused to pay the commission. What remedy is available to Margaret?
She can hold up the closing of escrow
She can file a complaint with the Real Estate Commissioner
She can file a lis pendens on the property
She can sue the seller in civil court
When an agent receives two offers on his principal's property at the same time, and one is better for the agent, he should submit:
both offers and let the owner decide.
the best offer first.
the deal which he thinks is best for his principal.
the deal which would pay the most commission.
Rick, a real estate salesperson, worked for Pier Realty. During the course of his business, a seller offered to pay him a discounted commission with the suggestion that he not tell his broker, and thus net the entire amount himself. Is this a violation of the Real Estate Law? Why or why not?
No, because Rick is an independent contractor and can make his own decisions about commissions
No, because Rick has an agreement with his broker about accepting discounted commissions
Yes, because commissions may not be discounted
Yes, because all commissions earned by Rick, discounted or not, must be paid to his broker, who then pays Rick according to their commission split agreement
The real estate listing is classified as an employment contract under whose terms the owner of the property appoints and authorizes a real estate broker to act as his agent. Which of the following statements is correct?
An owner is liable for a commission if he sells his property himself during the term of an Exclusive Agency Listing.
The owner is liable for a suit for specific performance if he refuses a buyer's offer that meets the exact terms of an Exclusive Right to Sell Listing.
A broker has an enforceable right to a commission in an open listing if he is the "procuring cause" even if the owner sells through another broker.
Death terminates an Exclusive Agency Listing, but not an Exclusive Right to Sell Listing.
The name adopted by the National Association of Real Estate Brokers is:
NAREB.
Realtors.
realtist.
brokers.
If a salesperson leaves a broker, the broker must notify the Commissioner in writing:
within 10 days.
within 5 days.
within 15 days.
within 30 days.
When a buyer gives the agent a postdated check, it:
may not be accepted by the agent.
must be cashed immediately.
must be delivered to the seller within one day.
may be retained but must be disclosed to the seller.
An untrue statement made by an agent who knows he or she is not telling the truth is:
puffing.
fraudulent misrepresentation.
steering
redlining.
All of the following statements concerning a broker's trust account are correct except:
no minimum balance is required.
a savings and loan association may not be used as a depository.
a columnar cash receipts and disbursements journal must be maintained; however, a separate ledger account for each client need not be maintained.
trust monies received by a broker must be deposited in a trust account.
An individual has been appointed by a life insurance company to solicit loans on real property which will be secured by first trust deeds on the properties. He will receive a commission for each such loan consummated. Under these circumstances, it will be required that he:
possess an active real estate broker's license.
secure a mortgage loan originator endorsement.
obtain a surety bond in the amount of $5,000.
have both (a) and (b).
A real estate broker keeps records of all money transactions handled by him in a book usually called:
an off-set statement book.
a trust ledger.
closing statement.
profit and loss statement.
A broker cannot accept a deposit from a buyer unless:
directed to by the buyer.
authorized specifically in the listing.
authorized in the deposit receipt.
it is a promissory note.
Provisions are made in the Real Estate Law whereby a real estate broker may seek reimbursement directly from his principal for expenses incurred by the broker in conjunction with his employment under which of the following transactions?
The sale of a home
The sale of a business opportunity
Negotiating a loan in which a Broker's Loan Statement is required
All of the above
A false statement of fact is considered to be:
menace.
misrepresentation.
false promise.
duress.
Trust fund money can be withdrawn by whom?
Any person employed by the broker
An unlicensed person
A corporate director
Any authorized employee of the broker
When the broker balances his trust account with the bank statement, this is called:
balancing the books.
reconciliation.
account balancing.
beneficiary statement.
With respect to the Real Estate Commission:
it consists of the Commissioner and 8 other members, all of whom must have been active as real estate brokers for 5 years.
the Commissioner is elected by state vote; however, the other members are appointed by county.
the Commissioner has the power to create regulations that have the force and effect of law.
five members are selected from the general public and need not be licensed brokers.
Which of the following is correct regarding trust fund bank accounts?
The broker may have a minimum of $100 of his or her own money in the trust account
The broker may have a maximum of $200 of his or her own money in the trust account
The broker may have a maximum of $500 of his or her own money in the trust account
There is no limit on the amount of the broker's own money in the trust account
Salesperson Green is employed by Broker Brown. Broker Brown can employ Salesperson Green to all except:
collect rents.
list property.
appraise property.
sell vacant lots.
Of the following, who would not be required to possess a valid real estate license?
An attorney acting as a broker
A person soliciting door-to-door for listings of real property for a specific broker
A corporation leasing 3 or more of its own properties
A person soliciting borrowers or lenders for or negotiating loans secured by real property or a business opportunity
A national organization of African-American real estate brokers is known as:
National Association of Real Estate Boards.
National Association of Real Estate Brokers.
National Institute of Real Estate Brokers.
none of the above
Broker Smith operates a small business in a small room in his home. The room has its own entrance with just a sign over the door reading "Smith Realtor." He has no salesman working for him except a 17-year-old student he has in training for the business and to whom he pays $5.00 for each listing the student brings in. Broker Smith is not a member of a real estate board. Since he lives outside of town he holds all deposits received until he goes to town, about once a week. From the information given, broker Smith is in violation of the Real Estate Law in all of the following, except:
paying compensation to an unlicensed person.
using the term "Realtor."
location of his office.
commingling.
If you were asked to prepare newspaper ads for a home in a nice quiet area, $500,000 price range, you would appeal to:
prestige.
higher income families.
pride of ownership.
all of the above
Broker Jones secured an exclusive agency listing in writing from the Johnson Co. on a commercial building that had been vacant for some months. The listing broker entered into a verbal agreement to share his commission with a cooperating broker. The cooperating broker procured a buyer, but broker Jones refused to split the commission. The cooperating broker:
may recover his share in court.
may not recover his share in court because this was only a verbal agreement.
should ask the Real Estate Commissioner to arbitrate the dispute.
should go to the Labor Commissioner.
Why do many brokers open client trust fund accounts?
To commingle funds
To avoid regulation
To separate the client's money from broker's money
To get a free credit card
Salesperson Ames tells his broker that he is quitting and will be going to work for another broker. His present broker should:
notify the Real Estate Commissioner immediately and request cancellation of Ames' license.
give Ames his license and immediately notify the Real Estate Commissioner.
notify the Real Estate Commissioner immediately and hold on to Ames' license until he has obtained his new one.
send Ames' license to the Real Estate Commissioner within 5 days.
Section 10131.1 of the Real Estate Law defines "in the business" as "the acquisition for resale to the public, and not as an investment, of more than 7 real property sales contracts or promissory notes secured by liens on real property during a calendar year. " This means:
a person who purchases 8 notes secured by trust deeds for investment purposes must have a license.
a person who buys even one note in a year for resale to the public must have a license.
the acquisition for resale of 8 land contracts or 8 notes secured by trust deeds in one calendar year requires a license.
none of the above is correct
Causing panic selling by telling people that values in a neighborhood will decline because of a specific event is known as:
steering.
blockbusting.
redlining.
undervaluing.
On April 2, a buyer gave a broker a personal check as a deposit to accompany an offer. The buyer told the broker to hold the check uncashed until after April 15. What should the broker do?
The broker cannot legally accept the check
The broker should present the offer and hope the seller does not ask about the check
The broker should present the offer to the seller, but must tell the seller about buyer's instruction to hold the check until after April 15
The broker should immediately deposit the check in his trust account
California Real Estate Law prohibits anyone licensed as a broker or salesperson from:
participating in a transaction as a principal.
taking an option.
taking a listing and an option on the same property.
none of the above
Regarding broker's trust fund accounts, which is not a requirement?
Must be able to withdraw trust funds on demand
Must keep records of trust funds being held in escrow
Broker must be named as trustee
Must maintain a minimum balance
You are a California real estate broker. A prospect is referred to you by an out-of-state broker and a sale is consummated by you. You want to split your commission with the cooperating broker. Under the California Real Estate Law:
you may pay a commission to a broker of another state.
you cannot divide a commission with a broker of another state.
you can pay a commission to a broker of another state only if he or she is also licensed in California.
none of the above
Any real estate licensee is subject to discipline by the Commissioner. Which of the following would be grounds for discipline?
A licensed broker belonging to NAR and working exclusively as a loan broker using the term "Realtor" on his advertising
Providing for the termination date of an exclusive listing to be 5 days after the close of escrow
Failure to provide for a definite termination date of an open listing
Presenting an offer to his principal from a real estate syndicate of which he is a limited partner with disclosure of his interest on the offer
A salesman sold a home in California. His commission would be paid by the:
buyer.
seller.
real estate broker.
escrow company involved.
The amount of personal money a broker may keep in his trust account is:
up to $50.
up to $60.
up to $170
up to $200
