Real Estate Principles Exam | Practice Questions & Answers | Exam Prep
1. The _____ oversees, regulates, administers and b) Department of Real Estate (DRE)
enforces the real estate law.
2. To be eligible for an agent license, the applicant needs d) make the application on the proper form prescribed by the DRE.
to complete mandatory education, pass the qualifying
exam and _____ :
3. Brokers and agents are required complete a minimum of b) 45-Hours
_____ of continuing education (CE) every four years to
renew a license issued by the Department of Real Estate
(DRE).
4. A fictitious business name license, also known as a b) DBA (Doing Business As)
_____ will be qranted to a broker who has complied with
the filing requirements.
5. A _____ is the sale or lease of the operations and a) business opportunity
goodwill of an existing business enterprise or opportunity.
6. The _____ compensates individuals who have obtained d) Real Estate Recovery Fund
a judgment against a licensee and are unable to recover
the judgment from the licensee.
7. Agency in real estate related transactions includes c) Both a and b
relationships between brokers and their:
8. The Agency Law Disclosure needs to be attached to d. All of the above.
which of the following documents and signed by all parties (A purchase contract, Seller's listing agreement, A Lease Agreement for a term
in targeted transactions? exceeding one year)
9. A(n) _____ exists when an agent has a positive or a) conflict of interest
negative bias toward an opposing party in a transaction
which might hinder their ability to fully represent the needs
of their client.
10. A broker who simultaneously represents the best b) dual agent
interests of opposing parties in a transaction is known as
a:
11. When a dual agency is established in a one-to-four unit a) pass on confidential pricing information to the opposing parties.
residential sales transaction, the broker may not:
12. _____ are funds belonging to others which a broker c) Trust funds
and their agents handle when acting in a transaction.
13. While the federal Civil Rights Act provides general d) Federal Fair Housing Act (FFHA)
protection against all prohibited discriminatory activity, the
_____ protections are specifically limited to dwellings,
including rental housing.
14. The restriction of a person seeking to buy or rent c) steering
housing in a manner that perpetuates segregated housing
patterns is referred to as
Grade A+ | Updated
, Real Estate Principles Exam | Practice Questions & Answers | Exam Prep
15. _____ refers to the failure of lenders to provide a) Redlining
financing in certain targeted communities.
16. Under the _____ lenders are required to compile and b) Home Mortgage Disclosure Act (HMDA)
submit home loan origination data to supervisory agencies.
17. A broker prudently refuses to use phrases that indicate d) Any of the above
a preference in advertising, such as: ("black home, adult building, Jewish home.")
18. A property defect which affects the price a buyer would b) a material fact.
be willing to pay for a property is referred to as:
19. A seller's broker and their agents have a _____ owed a) fiduciary agency duty
solely to the seller who has employed the broker, to
diligently market the listed property for sale.
20. A seller of a one-to-four unit residential property c) Transfer Disclosure Statement (TDS)
delivers a mandatory statutory form to prospective buyers
called a(n):
21. _____ are noxious or annoying conditions which are d) Environmental hazards
man-made hazards that are injurious to health or interfere
with an individual's sensitivities.
22. The use of a(n) _____ to prepare a Natural Hazard c) natural hazard expert
Disclosure Statement (NHD) relieves the seller's agent of
any liability not known to the agent to exist.
23. The Natural Hazard Disclosure Statement (NHD) a) is located in a fault zone
discloses whether the seller has knowledge the property:
24. The federal lead-based paint (LBP) disclosure needs to a) before 1978
be delivered by the seller of residential property
constructed:
25. A real estate agent has no duty to voluntarily disclose a) three years
information regarding a prior occupant whose death
occurred on the real estate more than _____ before.
26. Ownership of a unit in a condominium project includes a) the homeowners' association (HOA)
compulsory membership in:
27. All records of an agent's activities during the listing b) three years
period need to be retained for:
28. A written employment contract between a client and a a) Listing Agreement
real estate broker is referred to as a:
29. A nonlicensed _____ may solicit and refer potential a) finder
real estate clients to brokers in exchange for a fee.
Grade A+ | Updated
1. The _____ oversees, regulates, administers and b) Department of Real Estate (DRE)
enforces the real estate law.
2. To be eligible for an agent license, the applicant needs d) make the application on the proper form prescribed by the DRE.
to complete mandatory education, pass the qualifying
exam and _____ :
3. Brokers and agents are required complete a minimum of b) 45-Hours
_____ of continuing education (CE) every four years to
renew a license issued by the Department of Real Estate
(DRE).
4. A fictitious business name license, also known as a b) DBA (Doing Business As)
_____ will be qranted to a broker who has complied with
the filing requirements.
5. A _____ is the sale or lease of the operations and a) business opportunity
goodwill of an existing business enterprise or opportunity.
6. The _____ compensates individuals who have obtained d) Real Estate Recovery Fund
a judgment against a licensee and are unable to recover
the judgment from the licensee.
7. Agency in real estate related transactions includes c) Both a and b
relationships between brokers and their:
8. The Agency Law Disclosure needs to be attached to d. All of the above.
which of the following documents and signed by all parties (A purchase contract, Seller's listing agreement, A Lease Agreement for a term
in targeted transactions? exceeding one year)
9. A(n) _____ exists when an agent has a positive or a) conflict of interest
negative bias toward an opposing party in a transaction
which might hinder their ability to fully represent the needs
of their client.
10. A broker who simultaneously represents the best b) dual agent
interests of opposing parties in a transaction is known as
a:
11. When a dual agency is established in a one-to-four unit a) pass on confidential pricing information to the opposing parties.
residential sales transaction, the broker may not:
12. _____ are funds belonging to others which a broker c) Trust funds
and their agents handle when acting in a transaction.
13. While the federal Civil Rights Act provides general d) Federal Fair Housing Act (FFHA)
protection against all prohibited discriminatory activity, the
_____ protections are specifically limited to dwellings,
including rental housing.
14. The restriction of a person seeking to buy or rent c) steering
housing in a manner that perpetuates segregated housing
patterns is referred to as
Grade A+ | Updated
, Real Estate Principles Exam | Practice Questions & Answers | Exam Prep
15. _____ refers to the failure of lenders to provide a) Redlining
financing in certain targeted communities.
16. Under the _____ lenders are required to compile and b) Home Mortgage Disclosure Act (HMDA)
submit home loan origination data to supervisory agencies.
17. A broker prudently refuses to use phrases that indicate d) Any of the above
a preference in advertising, such as: ("black home, adult building, Jewish home.")
18. A property defect which affects the price a buyer would b) a material fact.
be willing to pay for a property is referred to as:
19. A seller's broker and their agents have a _____ owed a) fiduciary agency duty
solely to the seller who has employed the broker, to
diligently market the listed property for sale.
20. A seller of a one-to-four unit residential property c) Transfer Disclosure Statement (TDS)
delivers a mandatory statutory form to prospective buyers
called a(n):
21. _____ are noxious or annoying conditions which are d) Environmental hazards
man-made hazards that are injurious to health or interfere
with an individual's sensitivities.
22. The use of a(n) _____ to prepare a Natural Hazard c) natural hazard expert
Disclosure Statement (NHD) relieves the seller's agent of
any liability not known to the agent to exist.
23. The Natural Hazard Disclosure Statement (NHD) a) is located in a fault zone
discloses whether the seller has knowledge the property:
24. The federal lead-based paint (LBP) disclosure needs to a) before 1978
be delivered by the seller of residential property
constructed:
25. A real estate agent has no duty to voluntarily disclose a) three years
information regarding a prior occupant whose death
occurred on the real estate more than _____ before.
26. Ownership of a unit in a condominium project includes a) the homeowners' association (HOA)
compulsory membership in:
27. All records of an agent's activities during the listing b) three years
period need to be retained for:
28. A written employment contract between a client and a a) Listing Agreement
real estate broker is referred to as a:
29. A nonlicensed _____ may solicit and refer potential a) finder
real estate clients to brokers in exchange for a fee.
Grade A+ | Updated
