Deck 15: A Career in Real Estate

Question 1

The Real Estate Commissioner's Regulations apply to:
(a) REALTORS^® only
(b) REALISTS^® only
(c) real estate brokers only
(d) all California real estate licensees

Answer 1

D

Question 2

In California, the majority of the laws that regulate the real estate industry originate from:
(a) Commissioner's Code of Ethics
(b) legislation passed by the California Legislature
(c) the Treaty of Guadalupe Hidalgo
(d) the Business and Professions Code

Answer 2

B

Question 3

A real estate licensee can sell used mobile homes provided the mobile homes have been registered with the:
(a) Department of Housing and Community Development
(b) Federal Housing Administration
(c) Department of Veterans Affairs
(d) Department of Real Estate

Answer 3

A

Question 4

One advantage a two-story home has over a one-story home is:
(a) usually less cost per square foot to build
(b) ease of access to the roof
(c) convenient floor plan for disabled people
(d) easier to maintain

Question 5

All registration fees on the transfer of title to a mobile home must be paid within:
(a) 5 days
(b) 10 days
(c) 15 days
(d) 30 days

Question 6

A gambrel roof would most likely be found on a
(a) Contemporary
(b) barn
(c) Mediterranean
(d) Victorian

Question 7

A statement that shows the financial position of a business as of a certain date is called:
(a) profit and loss
(b) Schedule E
(c) balance sheet
(d) Schedule C

Question 8

Before purchasing a house, a person must decide whether to rent or buy. In considering the pros and cons, which would be considered an advantage of owning rather than renting?
(a) tax deductions
(b) possible appreciation
(c) control
(d) all of the above

Question 9

Commission rates for real estate agents are established by:
(a) the Real Estate Commissioner
(b) local boards of real estate
(c) multiple listing organizations
(d) negotiations

Question 10

A real estate broker's license enables a person to handle the sale of:
(a) registered mobile homes
(b) business opportunities
(c) trust deeds
(d) all of these

Question 11

In order to protect a building from seepage of water to the inside, around chimneys, and in the valley of the roof, builders use what is known as:
(a) flashing
(b) matting
(c) drain pipe
(d) curbing

Question 12

The fine for an unlicensed person who receives an illegal commission is:
(a) $100
(b) $1,000
(c) $20,000
(d) $50,000

Question 13

What is not a factor to consider when to determine investment potential? a() Risk
B() Liquidity
C() Carpet quality
D() Management requirements

Question 14

A passing score on the real estate salesperson's examination is:
(a) 50%
(b) 70%
(c) 75%
(d) 80%

Question 15

The trade name Realtist designates a member of the:
(a) National Association of Realtors
(b) Consolidated Brokers of America
(c) National Association of Real Estate Professionals
(d) National Association of Real Estate Brokers

Question 16

A candidate for the real estate broker's examination must:
(a) be 21 years or older
(b) have completed 8 college-level real estate courses
(c) have at least 4 years' experience as a real estate salesperson
(d) be a resident of California

Question 17

Which of the following regarding mobile homes is true?
(a) interest rates on loans are usually lower than on conventional homes
(b) they usually depreciate more rapidly than a conventional home
(c) they cannot be financed using FHA, VA, or Cal-Vet programs
(d) in most cities, they are allowed to be placed in any residential area

Question 18

What portion of the building do the upright beams, known as studs, rest upon?
(a) collar beam
(b) floor joist
(c) fire stops
(d) sole plate

Question 19

A one story house with a low pitched roof and sprawling floor plan is
(a) California bungalow
(b) Monterey
(c) Cape Cod
(d) California Ranch

Question 20

Members of the National Association of Real Estate Brokers are called:
(a) Realtors
(b) Realtists
(c) MAI
(d) RECI

Question 21

A salesperson who wishes to become a real estate broker must have which of the following?
(a) eight required real estate courses
(b) two years' full-time experience as a real estate salesperson, or its equivalent
(c) pass a 200 question broker examination
(d) all of the above

Question 22

Which of the following is correct?
(a) there are no continuing education requirements for the salesperson's license
(b) examination prep courses satisfy continuing education requirements for license renewal
(c) no transcripts, approval numbers or certificates are required to verify course requirements for license renewal
(d) all of the above are incorrect

Question 23

To obtain a real estate sales license, an applicant must pass approved college-level courses in:
(a) business ethics
(b) psychology
(c) real estate principles, practice, and one other DRE approved course
(d) sales skills

Question 24

To obtain a broker's license, a person must: a() Be 25 years of age
B() Score 80% or higher on the broker's exam
C() Hold a salesperson's license for two years
D() Hold a salesperson's license for one year

Question 25

The Real Estate Law exempts some people from needing a real estate license. Which of the following are not exempt?
(a) onsite resident managers of apartment buildings
(b) clerical employees of lending institutions
(c) any person who receives compensation (commission) for performance of an act defined within the realm of a salesperson's licensing
(d) attorneys while practicing law

Question 26

A passing score on the real estate broker's examination is:
(a) 55%
(b) 60%
(c) 70%
(d) 75%

Question 27

The maximum time allowed an applicant to take the salesperson's examination is:
(a) five hours
(b) one and one-half hours
(c) three hours and 15 minutes
(d) as long as the applicant wishes to take

Question 28

Which of the following is a license issued by the California Real Estate Commissioner?
(a) corporate real estate license
(b) appraisal license
(c) escrow license
(d) two of the above are correct

Question 29

The California Association of Realtors is a professional real estate organization. The major purposes of this association include:
(a) promotion of high standards among members
(b) safeguarding the real estate-buying public
(c) fostering of legislation for the benefit and protection of California real estate
(d) all of the above

Question 30

In a business opportunity sale, the payment for continued patronage is called:
(a) bulk sale
(b) goodwill
(c) blue sky
(d) net worth

Question 31

Under certain conditions, a corporation can be licensed as a real estate broker. Which of the following is one of those conditions?
(a) the corporation must have an office in California
(b) declared dividends are used to pay sales commissions
(c) chairman of the board must have a real estate salesperson's license
(d) a principal officer of the corporation must be licensed as a broker

Question 32

Once an individual has been licensed by the Department of Real Estate, which of the following is considered a violation of law and/or regulation and may result in suspension or revocation of the license?
(a) false promise
(b) commingling of funds
(c) secret profits
(d) all of the above

Question 33

If an applicant fails an examination, he or she:
(a) may not apply for a re-examination at any time
(b) must wait a reasonable time after failure notice to apply
(c) may apply for a re-examination immediately after notification of failure
(d) is limited as to the number of times that an examination may be taken

Question 34

In order to get a real estate broker's license, an applicant must fulfill which of the following requirements?
(a) complete 8 statutory courses designated by law
(b) pass a 150-question examination
(c) live in the State of California
(d) get at least a grade of 70% on the exam

Question 35

Required real estate courses may be taken at which of the following institutions?
(a) accredited community colleges
(b) accredited California universities
(c) some private vocational schools that have acquired formal approval from the Real Estate Commissioner
(d) all of the above

Question 36

Which of the following is correct?
(a) a real estate salesperson and a broker may form a partnership to run a real estate brokerage business
(b) the fine for paying a commission to an unlicensed person is $5,000
(c) appraisers need a real estate license
(d) the Real Estate Commissioner is appointed by the legislature

Question 37

A real estate broker's license is issued for:
(a) 2 years
(b) 4 years
(c) 6 years
(d) life

Question 38

Which of the following needs a real estate license?
(a) a person selling their own home
(b) a person managing their own rental
(c) a full service property manager
(d) none of the above need a real estate license

Question 39

After first obtaining a real estate sales license, said licensee must take how many DRE core three-hour approved continuing education courses in order to renew their license?
(a) 3
(b) 4
(c) 5
(d) 6