California Real Estate Principles - Questions and Verified Answers Graded A

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California Real Estate Principles - Questions and Verified Answers Graded A

• 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 Smiths 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

• acceptable
• mandated
• discouraged
• prohibited

Correct Answer: prohibited

• A real estate business that is a partnership can have more than one office location,

provided

• a broker partner obtains an additional license for each location
• all partners are real estate licensees
• there is a designated broker-officer
• there is at least one partner at each location

Correct Answer: a broker partner obtains an additional license for each location

• The Real Estate Law is found in the
• Licensing Code
• Business and Professions Code
• Health and Safety Code
• Corporations Code

Correct Answer: Business and Professions Code

• The Real Estate Commissioner reports to the

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• California Bureau of Real Estate
• governor
• Real Estate Advisory Commission
• legislature

Correct Answer: governor

• 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?

• acceptable
• mandated
• discouraged
• prohibited

Correct Answer: acceptable

• A real estate licensee can offer a mobile home for sale that is?
• in a manufacturing plant, ready for delivery
• transportable under an exemption from the vehicle code
• presold
• in a location where it can legally remain for one year

Correct Answer: in a location where it can legally remain for one year

• Salesperson Sam is part owner of Rollo Realty, Inc. In the broker's absence, Sam

frequently reviews the work of sales associates. This is?

• acceptable
• mandated
• discouraged
• prohibited

Correct Answer: prohibited

• If a real estate license is NOT renewed before it expires, the licensee?
• is allowed to complete transactions in progress

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• is allowed to finish transactions that are substantially complete
• must cease all real estate activities
• may act under authority of another agent's license for a period not to exceed 60 days

Correct Answer: must cease all real estate activities

• The sale or transfer of goods ordinarily held for sale in the course of business is

governed in California by the?

• Business Opportunity Code
• Commercial Transfer Law
• Uniform Commercial Code
• Real Estate Law

Correct Answer: Uniform Commercial Code

• 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

• did not need a real estate license for the deal
• should have had a real estate license
• is exempt from licensing requirements
• None of these

Correct Answer: should have had a real estate license

• Broker Bob routinely places earnest money deposits in his personal account for

overnight safekeeping. This practice is

• acceptable
• mandated
• discouraged
• prohibited

Correct Answer: prohibited

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• Broker Luis has an exclusive listing agreement with the Pierces. The listing will

terminate "when the parties agree". This practice is

• acceptable
• mandated
• discouraged
• prohibited

Correct Answer: prohibited

• 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

• acceptable
• mandated
• discouraged
• prohibited

Correct Answer: mandated

• 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

• acceptable
• mandated
• discouraged
• prohibited

Correct Answer: discouraged

• 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 is

• acceptable