1. The __________ oversees, regulates, administers and enforces the real estate law.
a) Department of Motor Vehicles (DMV)
b) California Bureau of Real Estate (CalBRE)
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:
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 form prescribed by the CalBRE.
3. Brokers and agents are required to 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) NDP (nom de plume)
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) implied agency
d) subagency
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) referral agent.
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) Steering
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) Home Affordable Refinance Plan (HARP)
d) Glass-Steagall Act
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) Any of the above.
18. A property defect which affects the price a buyer would be willing to pay for a property is referred to as:
a) a discharge of indebtedness.
b) a material fact.
c) incriminating evidence.
d) cosmetic damage.
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 (TDS).
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 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) appraiser
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 needs to 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 __________ before.
a) three years
b) two years
c) one year
d) six months
26. Ownership of a unit in a condominium project includes compulsory membership in:
a) the homeowners' association (HOA).
b) the real estate trade association.
c) the golf club.
d) the board of directors.
27. All records of an agent's activities during the listing period need to be retained for:
a) four years.
b) three years.
c) two years.
d) one year.
28. A written employment contract between a client and a real estate broker is referred to as a:
a) listing agreement.
b) job application.
c) rental application.
d) certificate of insurance.
29. A nonlicensed __________ may solicit and refer potential real estate clients to brokers in exchange for a fee.
a) finder
b) dual agent
c) subagent
d) property manager
30. A __________ is the primary document used to negotiate a transaction between a buyer and seller.
a) fee agreement
b) counteroffer
c) waiver
d) purchase agreement
31. The ___________ states each broker's fiduciary agency with the various parties to the transaction.
a) hold harmless provision
b) attorney fee provision
c) agency confirmation provision
d) escrow instructions
32. The method used for an individual to determine an opinion of a property's value on a specific date is known as an:
a) open house.
b) home inspection.
c) appraisal.
d) home warranty.
33. The __________ of a property is the highest price on the date of valuation a willing seller and buyer would agree to.
a) replacement cost
b) rental value
c) depreciation schedule
d) fair market value
34. __________ is a process in which an independent agent manages the closing of a real estate transaction through the exchange of documents and money between two parties.
a) Loan pre-approval
b) Escrow
c) Property staging
d) Arbitration
35. __________ refers to the right of the government to take private property for public use.
a) Reverse mortgage
b) Trickle-down economics
c) Eminent domain
d) The power to tax
36. Land, the first component of real estate, includes:
a) rocks.
b) soil.
c) reasonable airspace above the earth.
d) All of the above.
37. Incidental rights to real estate which are not located on the real estate nor reflected on its title are called:
a) trade fixtures.
b) fructus industriales.
c) appurtenant rights.
d) leasehold rights.
38. A(n) ________ lasts for a specific length of time as stated in a lease agreement.
a) fill-time tenancy
b) part-term tenancy
c) fixed-term tenancy
d) life estate interest
39. A tenant who remains in possession of a property on expiration of a lease without an agreement or acceptance of rent by the landlord becomes a(n):
a) holdover tenant.
b) equity purchaser.
c) tenant-in-foreclosure.
d) subtenant.
40. Attached property improvements that become part of the underlying real estate include:
a) wash stations in a beauty salon.
b) chairs.
c) drapes and curtains.
d) attached carpeting.
41. A recorded restriction requiring a property to be used for a specific purpose is known as a(n):
a) affirmative covenant
b) negative covenant
c) arc of the covenant
d) sacred covenant
42. A(n) ________ is an improvement which acts as a demarcation of the property line.
a) implied boundary
b) constructive easement
c) common boundary improvement
d) prescriptive easement
43. A(n) _______ is the property which benefits from an easement.
a) dominant tenement.
b) servient tenement.
c) tenement-by-necessity.
d) superior tenement.
44. A(n) ___________ belongs to and benefits an adjacent property and is said to run with the land as an interest the adjacent property holds in the burdened real estate.
a) easement in gross
b) appurtenant easement
c) encroachment
d) covenant
45. Easements which restrict an owner's ability to maintain or construct improvements interfering with a neighbor's solar energy system are known as ____________ easements.
a) airborne
b) solar
c) galactic
d) greenway
46. A wrongful and unauthorized entry onto real estate in the possession of another is referred to as a(n):
a) easement in gross.
b) periodic tenancy.
c) transient occupancy.
d) trespass.
47. A nuisance which affects an entire segment of the population, such as a neighborhood, is known as a(n):
a) private nuisance.
b) public nuisance.
c) abatable misdemeanor.
d) annoyance.
48. Recovery of money losses for a _________________ cannot include lost property value since the nuisance can be entirely eliminated.
a) continuing nuisance
b) permanent nuisance
c) perpetual nuisance
d) temporary nuisance
49. Owners of adjacent properties uncertain over the true boundary may agree to establish the location of their common lot line under the:
a) doctrine of estoppel.
b) statute of limitations.
c) law of diminishing returns.
d) agreed-boundary doctrine.
50. Written or oral agreements on a boundary's location are called _________ since they are not implied.
a) void agreements
b) express agreements
c) uncertain agreements
d) probable agreements