Question 1

Which of the following is not an essential element in creating a real estate agency?

Accepted Answer

A)  fiduciary relationship 
B)  amount of the commission 
C)  parties must be competent 
D)  agreement between principal and agent 
A)  fiduciary relationship 
B)  amount of the commission 
C)  parties must be competent 
D)  agreement between principal and agent B

Question 2

A licensed real estate broker states that a lot is 1/3 of an acre, when in fact the lot is 1/4 of an acre. The agent is guilty of:

Accepted Answer

A)  false promise 
B)  divided agency 
C)  secret profit 
D)  misrepresentation 
A)  false promise 
B)  divided agency 
C)  secret profit 
D)  misrepresentation D

Question 3

The broker of a real estate office wanted to deposit funds from a recently opened transaction. He had his trust account, business account, and personal account all at the same bank. Inadvertently, he made out the deposit slip to deposit the client's funds into his personal account.

Accepted Answer

A)  This was an innocent mistake. He can just redeposit the money into his trust account before the close of escrow. 
B)  The broker should call and immediately transfer the funds into his trust account. 
C)  The broker doesn't have to worry unless the DRE audits his account. 
D)  the broker is guilty of commingling funds. 
A)  This was an innocent mistake. He can just redeposit the money into his trust account before the close of escrow. 
B)  The broker should call and immediately transfer the funds into his trust account. 
C)  The broker doesn't have to worry unless the DRE audits his account. 
D)  the broker is guilty of commingling funds. D

Question 4

The maximum dollar amount for an individual claim against the Real Estate Recovery Fund is:

Accepted Answer

A)  $10,000 
B)  $50,000 
C)  $20,000 
D)  $100,000 
A)  $10,000 
B)  $50,000 
C)  $20,000 
D)  $100,000

Question 5

Real estate agencies can be terminated by:

Accepted Answer

A)  Completion, expiration, mutual consent, and secret profit. 
B)  Completion, expiration, mutual consent, and estoppel. 
C)  Completion, expiration, mutual consent, and death of the agent. 
D)  Completion, expiration, mutual consent, and with the Real Estate Commissioner's permission. 
A)  Completion, expiration, mutual consent, and secret profit. 
B)  Completion, expiration, mutual consent, and estoppel. 
C)  Completion, expiration, mutual consent, and death of the agent. 
D)  Completion, expiration, mutual consent, and with the Real Estate Commissioner's permission.

Question 6

Conversion is a violation of real estate law and carries with it a heavy penalty. Which example best illustrates conversion?

Accepted Answer

A)  broker receives offer and check and puts check in a personal account, mixing it with the broker's own money 
B)  broker receives offer, check, and buyer's instructions to hold check until acceptance and puts check in office desk 
C)  broker gets signed offer and cash deposit; broker puts cash in a personal account after the offer is accepted and seller instructs broker to keep the money as part of the commission 
D)  broker receives offer and a $500 deposit in cash; before the acceptance, broker spends the money for supplies, then replaces the $500 when it is time to close escrow 
A)  broker receives offer and check and puts check in a personal account, mixing it with the broker's own money 
B)  broker receives offer, check, and buyer's instructions to hold check until acceptance and puts check in office desk 
C)  broker gets signed offer and cash deposit; broker puts cash in a personal account after the offer is accepted and seller instructs broker to keep the money as part of the commission 
D)  broker receives offer and a $500 deposit in cash; before the acceptance, broker spends the money for supplies, then replaces the $500 when it is time to close escrow

Question 7

For a single person, under 65 years and not of low income, the homestead exemption is:

Accepted Answer

A)  $50,000 
B)  $75,000 
C)  $100,000 
D)  $150,000 
A)  $50,000 
B)  $75,000 
C)  $100,000 
D)  $150,000

Question 8

According to real estate licensing law, for supervising purposes, the relationship between a salesperson and a broker is:

Accepted Answer

A)  fiduciary 
B)  independent contractor 
C)  employer-employee 
D)  ostensible 
A)  fiduciary 
B)  independent contractor 
C)  employer-employee 
D)  ostensible

Question 9

Before giving a listing to a broker, the owner informed the broker that the roof was in bad shape. The broker later showed the house and assured the buyer that the house was in excellent condition, without any known problems. After the first rain, the house suffered heavy water damage due to a leaky roof. The buyer is angry and will probably sue the:

Accepted Answer

A)  broker and the seller 
B)  broker 
C)  broker, seller, and escrow company 
D)  title insurance company 
A)  broker and the seller 
B)  broker 
C)  broker, seller, and escrow company 
D)  title insurance company

Question 10

An owner lists a property with Broker A. Prospective buyer is found by other Broker B. Broker B is a:

Accepted Answer

A)  dual agent 
B)  general agent 
C)  cooperating agent 
D)  power of agent 
A)  dual agent 
B)  general agent 
C)  cooperating agent 
D)  power of agent

Question 11

A California broker wants to sell her brother's property in Las Vegas.

Accepted Answer

A)  She can do this with the permission of the state of California. 
B)  She can do this with the Real Estate Commissioner's permission. 
C)  She can refer the listing to a Nevada real estate broker and they can agree to share the commission. 
D)  She cannot do this because she does not know Nevada real estate law. 
A)  She can do this with the permission of the state of California. 
B)  She can do this with the Real Estate Commissioner's permission. 
C)  She can refer the listing to a Nevada real estate broker and they can agree to share the commission. 
D)  She cannot do this because she does not know Nevada real estate law.

Question 12

Real estate agencies are created by:

Accepted Answer

A)  special agency. 
B)  agreement in writing. 
C)  appointment. 
D)  none of the above. 
A)  special agency. 
B)  agreement in writing. 
C)  appointment. 
D)  none of the above.

Question 13

A broker is authorized in the listing agreement to accept a deposit from the buyer on behalf of the seller and receives same from a buyer. The broker then uses the money received from the buyer to pay for a vacation and refuses to restore the money. The person(s) liable to the buyer for the loss would be the:

Accepted Answer

A)  seller only 
B)  broker and seller 
C)  broker only 
D)  real estate commissioner 
A)  seller only 
B)  broker and seller 
C)  broker only 
D)  real estate commissioner

Question 14

A real estate broker, in order to influence a person to buy, states that the property will absolutely double in value in six months. The sale takes place and 6 months later the property has declined in value. This broker could be considered guilty of:

Accepted Answer

A)  duress 
B)  acting in a legal manner 
C)  false promise 
D)  ostensible promise 
A)  duress 
B)  acting in a legal manner 
C)  false promise 
D)  ostensible promise

Question 15

An easement 15 feet wide and 150 feet long is approximately what percent of an acre?

Accepted Answer

A)  20% 
B)  15% 
C)  10% 
D)  5% 
A)  20% 
B)  15% 
C)  10% 
D)  5%

Question 16

An easement is valid for

Accepted Answer

A)  ten years 
B)  three years 
C)  indefinitely 
D)  as long as you own the property 
A)  ten years 
B)  three years 
C)  indefinitely 
D)  as long as you own the property

Question 17

If a real estate agent knowingly makes a substantial misrepresentation of the likely value of real property, it is:

Accepted Answer

A)  an agency violation 
B)  an innocent mistake 
C)  unethical, but not illegal 
D)  an accepted practice in the industry 
A)  an agency violation 
B)  an innocent mistake 
C)  unethical, but not illegal 
D)  an accepted practice in the industry

Question 18

The misappropriation and use of a client's funds by an agent is called:

Accepted Answer

A)  conversion 
B)  commingling 
C)  secret profit 
D)  misrepresentation 
A)  conversion 
B)  commingling 
C)  secret profit 
D)  misrepresentation

Question 19

A broker receives a deposit from a buyer late Friday night, with instructions to hold the check uncashed pending the seller's acceptance of the offer. The broker decides to put it in a safe in the office for security purposes until the offer can be submitted to the seller. In doing so the broker is:

Accepted Answer

A)  guilty of conversion 
B)  innocent of any wrongdoing 
C)  guilty of commingling 
D)  required to place the deposit into a trust fund 
A)  guilty of conversion 
B)  innocent of any wrongdoing 
C)  guilty of commingling 
D)  required to place the deposit into a trust fund

Question 20

Salesperson Schmidt works for Broker Hassan. On May 1, Schmidt takes a listing on Home X for 90 days. Twenty days later, Salesperson Schmidt transfers her license and becomes a salesperson for Broker Meeks. As of May 21, the listing on Home X belongs to:

Accepted Answer

A)  Broker Hassan 
B)  Salesperson Schmidt 
C)  Broker Meeks 
D)  no one, as this cancels the agency with the seller 
A)  Broker Hassan 
B)  Salesperson Schmidt 
C)  Broker Meeks 
D)  no one, as this cancels the agency with the seller

Which of the following is not an essential element in creating a real estate agency?

A licensed real estate broker states that a lot is 1/3 of an acre, when in fact the lot is 1/4 of an acre. The agent is guilty of:

The broker of a real estate office wanted to deposit funds from a recently opened transaction. He had his trust account, business account, and personal account all at the same bank. Inadvertently, he made out the deposit slip to deposit the client's funds into his personal account.

The maximum dollar amount for an individual claim against the Real Estate Recovery Fund is:

Real estate agencies can be terminated by:

Conversion is a violation of real estate law and carries with it a heavy penalty. Which example best illustrates conversion?

For a single person, under 65 years and not of low income, the homestead exemption is:

According to real estate licensing law, for supervising purposes, the relationship between a salesperson and a broker is:

An owner lists a property with Broker A. Prospective buyer is found by other Broker B. Broker B is a:

A California broker wants to sell her brother's property in Las Vegas.

Real estate agencies are created by:

A real estate broker, in order to influence a person to buy, states that the property will absolutely double in value in six months. The sale takes place and 6 months later the property has declined in value. This broker could be considered guilty of:

An easement 15 feet wide and 150 feet long is approximately what percent of an acre?

An easement is valid for

If a real estate agent knowingly makes a substantial misrepresentation of the likely value of real property, it is:

The misappropriation and use of a client's funds by an agent is called:

A broker receives a deposit from a buyer late Friday night, with instructions to hold the check uncashed pending the seller's acceptance of the offer. The broker decides to put it in a safe in the office for security purposes until the offer can be submitted to the seller. In doing so the broker is:

Salesperson Schmidt works for Broker Hassan. On May 1, Schmidt takes a listing on Home X for 90 days. Twenty days later, Salesperson Schmidt transfers her license and becomes a salesperson for Broker Meeks. As of May 21, the listing on Home X belongs to:

Introduction to Real Estate

Part I: Legal Description, Method of Acquiring Title , and Deeds

Encumbrances, Liens, and Homesteads

Real Estate Contracts and Mandated Disclosures

Practical Real Estate Mathematics

Introduction to Real Estate Finance

Part I: Real Estate Lenders

Real Estate Appraisal

The Role of Escrow and Title Insurance Companies

Landlord and Tenant Relations

Land-Use Planning, Subdivisions, Fair Housing, and Other Public Controls

Introduction to Taxation

Single-Family Homes and Mobile Homes

A Career in Real Estate

Filters

Exam 4: Real Estate Agency

Which of the following is not an essential element in creating a real estate agency?

A licensed real estate broker states that a lot is 1/3 of an acre, when in fact the lot is 1/4 of an acre. The agent is guilty of:

The broker of a real estate office wanted to deposit funds from a recently opened transaction. He had his trust account, business account, and personal account all at the same bank. Inadvertently, he made out the deposit slip to deposit the client's funds into his personal account.

The maximum dollar amount for an individual claim against the Real Estate Recovery Fund is:

Real estate agencies can be terminated by:

Conversion is a violation of real estate law and carries with it a heavy penalty. Which example best illustrates conversion?

For a single person, under 65 years and not of low income, the homestead exemption is:

According to real estate licensing law, for supervising purposes, the relationship between a salesperson and a broker is:

An owner lists a property with Broker A. Prospective buyer is found by other Broker B. Broker B is a:

A California broker wants to sell her brother's property in Las Vegas.

Real estate agencies are created by:

A real estate broker, in order to influence a person to buy, states that the property will absolutely double in value in six months. The sale takes place and 6 months later the property has declined in value. This broker could be considered guilty of:

An easement 15 feet wide and 150 feet long is approximately what percent of an acre?

An easement is valid for

If a real estate agent knowingly makes a substantial misrepresentation of the likely value of real property, it is:

The misappropriation and use of a client's funds by an agent is called:

Salesperson Schmidt works for Broker Hassan. On May 1, Schmidt takes a listing on Home X for 90 days. Twenty days later, Salesperson Schmidt transfers her license and becomes a salesperson for Broker Meeks. As of May 21, the listing on Home X belongs to:

Introduction to Real Estate

Part I: Legal Description, Method of Acquiring Title , and Deeds

Encumbrances, Liens, and Homesteads

Real Estate Contracts and Mandated Disclosures

Practical Real Estate Mathematics

Introduction to Real Estate Finance

Part I: Real Estate Lenders

Real Estate Appraisal

The Role of Escrow and Title Insurance Companies

Landlord and Tenant Relations

Land-Use Planning, Subdivisions, Fair Housing, and Other Public Controls

Introduction to Taxation

Single-Family Homes and Mobile Homes

A Career in Real Estate

Filters