California Real Estate Principles – 393 Questions and Answers (COMPLETE SOLUTION)

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(1) 1. The Real Estate Law is found in the a. Licensing Code b. Business and Professions Code c. Health and Safety Code d. Corporations Code - ✔✔Business and Professions Code (1) 2. The Real ... Estate Commissioner reports to the a. California Bureau of Real Estate b. governor c. Real Estate Advisory Commission d. legislature - ✔✔governor (1) 3. Salesperson Sam owns 25% of the outstanding shares of Rollo Realty, Inc., and broker Barbara Rollo owns the remaining shares. This division of ownership is? a. acceptable b. mandated c. discouraged d. prohibited - ✔✔acceptable (1) 4. Salesperson Sam is part owner of Rollo Realty, Inc. In the broker's absence, Sam frequently reviews the work of sales associates. This is? a. acceptableb. mandated c. discouraged d. prohibited - ✔✔prohibited (1) 5. A real estate business that is a partnership can have more than one office location, provided a. a broker partner obtains an additional license for each location b. all partners are real estate licensees c. there is a designated broker-officer d. there is at least one partner at each location - ✔✔a broker partner obtains an additional license for each location (1) 6. The sale or transfer of goods ordinarily held for sale in the course of business is governed in California by the? a. Business Opportunity Code b. Commercial Transfer Law c. Uniform Commercial Code d. Real Estate Law - ✔✔Uniform Commercial Code (1) 7. Todd, an officer of Ajax Corporation and not a real estate licensee, successfully negotiated the purchase of the Smith Widget Plant on behalf of Ajax. Todd received a commission on the sale in addition to his normal salary. Todd a. did not need a real estate license for the deal b. should have had a real estate license c. is exempt from licensing requirements d. None of these - ✔✔should have had a real estate license (1) 8. If a real estate license is NOT renewed before it expires, the licensee?a. is allowed to complete transactions in progress b. is allowed to finish transactions that are substantially complete c. must cease all real estate activities d. may act under authority of another agent's license for a period not to exceed 60 days - ✔✔must cease all real estate activities (1) 9. A real estate licensee can offer a mobile home for sale that is? a. in a manufacturing plant, ready for delivery b. transportable under an exemption from the vehicle code c. presold d. in a location where it can legally remain for one year - ✔✔in a location where it can legally remain for one year (1) 10. The Browns desperately want to move to Pine Bend, and they like the Smith House, which is listed by broker Bob. The Browns tell Bob they will make it worth his while if he can persuade the Smith's to accept the Brown offer on their house, and the Browns send an expensive food basket to Bob as a sign of their good faith. Bob neglects to mention this to the Smiths. This practice is a. acceptable b. mandated c. discouraged d. prohibited - ✔✔prohibited (1) 11. Broker Bob routinely places earnest money deposits in his personal account for overnight safekeeping. This practice is a. acceptable b. mandated c. discouragedd. prohibited - ✔✔prohibited (1) 12. Broker Luis has an exclusive listing agreement with the Pierces. The listing will terminate "when the parties agree". This practice is a. acceptable b. mandated c. discouraged d. prohibited - ✔✔prohibited (1) 13. When broker Bob exercised his option to buy Whiteacre, he presented to the owner of Whiteacre a written statement of his expected profit in the transaction. The seller agreed to proceed with the sale. This conduct is a. acceptable b. mandated c. discouraged d. prohibited - ✔✔mandated (1) 14. Maya is a broker-officer of XYZ Realty, Inc. She does not like the overly aggressive sales tactic's of XYZ's salespeople but has not reprimanded them because business is so good. Maya's conduct is a. acceptable b. mandated c. discouraged d. prohibited - ✔✔discouraged (1) 15. Broker Bob wants to help out his neighbor's son, Igor, who recently acquired a BA in history from Back East University. Broker Bob hires Igor to show property to prospective buyers. Because Igor has no real estate license, Bob handles all of the negotiating. This practice isa. acceptable b. mandated c. discouraged d. prohibited - ✔✔prohibited (1) 16. Salesperson Sally is selling the Martinez Mansion. An offer has been accepted, and the closing will take place in two weeks. While the owners are out of town, the buyer asks if the closing can be put off for one day. Sally agrees on behalf of the owners, for she is sure they will not object. Sally's conduct is a. acceptable b. mandated c. discouraged d. prohibited - ✔✔prohibited (1) 17. The Anderson house is for sale following the murder of Mrs. Anderson by Mr. Anderson in the breakfast room six months earlier. Salesperson Sam, showing an out-of-town prospect through the house, decides to keep information about the murder to himself. Sam's conduct is a. acceptable b. mandated c. discouraged d. prohibited - ✔✔prohibited (1) 18. Broker Luis is so busy that he never has the time to return the phone calls of his principals. He prefers to spend his time in the field making sales and acquiring new listings. This practice is a. acceptable b. mandated c. discouraged d. prohibited - ✔✔discouraged(1) 19. After attending a get-rich-quick real estate seminar, Kim wants to buy a house cheap. She tells broker Bob she will offer $50,000, with seller financing and no down payment, on the Henderson house. The Henderson house has an asking price of $125,000. Bob presents the offer with one of his own for $85,000, telling the Hendersons that the expected market conditions make their asking price unrealistic. His conduct is a. acceptable b. mandated c. discouraged d. prohibited - ✔✔prohibited (1) 20. Rudy opens his brokerage office and immediately places an ad in the local newspaper: List Your House with Me and I Will Pay You $500 at closing. This practice is a. acceptable b. mandated c. discouraged d. prohibited - ✔✔acceptable [Show More]

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