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EXIT REALTY EXAM

Total questions: 25

Worksheet time: 13mins

Name
Class
Date
1.

The __________ oversees, regulates, administers and enforces the real estate law

a)

Department of Motor Vehicles(DMV)

b)

Department of Real Estate(DRE)

c)

National Real Estate Alliance

d)

California Bureau of Veterans

2.

To be eligible for an agent license, the applicant needs to complete mandatory education, pass the qualifying exam and:T

a)

be at least 16 years of age.

b)

 provide proof of legal presence in the U.S.

c)

have previously worked as an unlicensed assistant.

d)

make the application on the proper from prescribed by the DRE

3.

Brokers and agents are required to complete a minimum of __________ of continuing education (CE) every four years to renew a license issued by the California Bureau of Real Estate (CalBRE).

a)

50 hours

b)

45 hours

c)

30 hours

d)

15 hours

4.

A fictitious business name license, also known as a __________, will be granted to a broker who has complied with the filing requirements.

a)

MIA(missing in action)

b)

DBA(doing business as)

c)

DOA(dead on arrival)

d)

None of the above

5.

A __________ is the sale or lease of the operations and goodwill of an existing business enterprise or opportunity.

a)

business opportunity

b)

business proposition

c)

bulk sale

d)

short sale

6.

The __________ compensates individuals who have obtained a judgment against a licensee and are unable to recover the judgment from the licensee. 

a)

Homeowner Bailout Fund

b)

Broker Relief Account

c)

Bail Bond Account

d)

Real Estate Recovery Fund

7.

Agency in real estate related transactions includes relationships between brokers and their:

a)

principals

b)

agents

c)

both A and B

d)

Neither A nor B

8.

The Agency Law Disclosure needs to be attached to which of the following documents and signed by all parties in

targeted transactions?

a)

Leases for one year or less

b)

Month-to-month rental agreements

c)

Financing arrangements

d)

A purchase agreement

9.

A(n) __________ exists when an agent has a positive or negative bias toward an opposing party in a transaction which might hinder their ability to fully represent the needs of their client.

a)

conflict of interest

b)

business opportunity

c)

Both A and B

d)

Neither A nor B

10.

A broker who simultaneously represents the best interests of opposing parties in a transaction is known as a:      

a)

finder

b)

dual agent

c)

subagent

d)

None of the above

11.

When a dual agency is established in a one-to-four unit residential sales transaction, the broker may not:

a)

pass on confidential pricing information to the opposing parties.

b)

collect their fee when the sale closes

c)

communicate to one of the parties without the express consent of the other.

d)

disclose materials facts about the property which might dissuade the buyer from submitting an offer to purchase the property.

12.

 __________ are funds belonging to others which a broker and their agents handle when acting in a transaction. 

a)

cash advances

b)

retainer fees

c)

trust funds

d)

Bonds

13.

While the federal Civil Rights Act provides general protection against all prohibited discriminatory activity, the __________

protections are specifically limited to dwellings, including rental housing.

a)

Freedom of Information Act

b)

Unruh Civil Rights Act

c)

Federal Securities Act

d)

Federal Fair Housing Act (FFHA)

14.

The restriction of a person seeking to buy or rent housing in a manner that perpetuates segregated housing patterns is referred to as:

a)

gentrification

b)

redeveloping

c)

steering

d)

blockage

15.

___________ refers to the failure of lenders to provide financing in certain targeted communities. 

a)

Redlining

b)

Panic Selling

c)

Eminent domain

d)

All of the above

16.

Under the __________, lenders are required to compile and submit home loan origination data to supervisory agencies. 

a)

Home Affordable Modification Plan (HAMP).

b)

Home Mortgage Disclosure Act (HMDA)

c)

Both A and B

d)

Neither A nor B

17.

A broker prudently refuses to use phrases that indicate a preference in advertising, such as:

a)

"black home

b)

"adult building"

c)

"Jewish home"

d)

All of the above

18.

A property defect which affects the price a buyer would be wiling to pay for a property is referred to as:

a)

discharge of indebtedness

b)

a material fact

c)

incriminating evidence

d)

All of the above

19.

A seller’s broker and their agents have a ___________, owed solely to the seller who has employed the broker, to

diligently market the listed property for sale.

a)

fiduciary agency duty

b)

non-fiduciary general duty

c)

limited general duty

d)

implied agency duty

20.

A seller of a one-to-four unit residential property delivers a mandatory statutory form to prospective buyers called a(n):

a)

agency law disclosure

b)

counteroffer

c)

Transfer Disclosure Statement

d)

Condition of Title Statement

21.

__________ are noxious or annoying conditions which are man-made hazards that are injurious to health or interfere

with an individual’s sensitivities.

a)

Fire hazards

b)

Seismic hazards

c)

Natural hazards

d)

Environmental hazards

22.

The use of a(n) __________ to prepare a Natural Hazard Disclosure Statement (NHD) relieves the seller’s agent of any liability for errors not known to the agent to exist.

a)

accountant

b)

escrow officer

c)

natural hazard expert

d)

All of the above

23.

The Natural Hazard Disclosure Statement (NHD) discloses whether the seller has knowledge the property:

a)

is located in a fault zone

b)

is located in an area with a high crime rate

c)

has an indoor pool

d)

has a roof greater than seven years old.

24.

The federal lead-based paint (LBP) disclosure must be delivered by the seller of residential property constructed:

a)

before 1978

b)

after 1978

c)

before 1998

d)

after 2008

25.

A real estate agent has no duty to voluntarily disclose information regarding a prior occupant whose death occurred on the real estate more than __________ years before. 

a)

three

b)

two

c)

one

d)

All of the above