California Real Estate Practice Final Exam (Questions & Answers)

California Real Estate Practice Final Exam (Questions & Answers) Using time-management to increase income, you should realize that doubling "A" time activities should double your income. What are the advantages of a good time-management program? Improved efficiency Increased income A release from time pressures One of the requirements for a real estate salesperson to be regarded as an independent contractor by the IRS is that the broker-salesperson contract states that the salesperson shall be treated as an independent contractor for tax purposes. Which of the following statements regarding the use of goal-setting is FALSE? Once set, goals should never be changed. Brokers have liability to commission salespeople as to workers compensation. The purpose of a broker providing a sliding commission scale that rises as sales volume increases is to both motivate salespeople and retain top producers. If you are going to be buying a new car for real estate sales, you should consider a full-sized, four-door car for easy entrance and exit. You can find out how things are done in your office by studying your office procedure manual. Which of the following statements regarding mobile home sales is TRUE? Both A real estate agent can sell a mobile home in a rental park space and A real estate agent can sell a mobile home with the land it is sited on. The following statements are all examples of abstract goals I will strive to improve my sales techniques. I will improve my communication skills. I will become a better salesperson. Advertising a home in an area occupied solely by members of a minority group only in newspapers directed toward that minority group would be regarded as steering. The Civil Rights Act that applied only to race was the Civil Rights Act of 1866. A broker may discriminate against a tenant who neither has AIDS nor has a guide dog. The Real Estate Commissioner's suggestions for professional conduct include that the agent Report violations of the real estate law to the Bureau of Real Estate. Stay in close communication with clients or customers. Submit all written offers in a prompt and timely manner. The California Act that prohibits discrimination by all California businesses is the Unruh Act. Redlining is prohibited by the Holden Act. The Civil Rights Act of 1968 prohibits both blockbusting and steering. Which of the following statements regarding ethics is TRUE? Ethics tends to precede the law. Redlining refers to a refusal to loan in designated areas. What is the best test to evaluate if an act is ethical? The Golden Rule The Seller Financing Disclosure Statement provided to both buyer and seller provides Credit terms. Disclosure of deferred interest. A warning as to balloon payments. An agent need not disclose to a buyer that: Both a former owner had AIDS or there was a death by murder or suicide on the property more than 3 years ago. Compliance with environmental hazards disclosure requires the buyer sign that they have received a booklet titled Environmental Hazards: A Guide for Homeowners, Buyers, Landlords, and Tenants. An agent's inspection under Easton v. Strassburger (as codified by state statutes) applies to Visual inspections. Accessible areas only. 1 to 4 residential units. The earthquake safety disclosure statement both applies to 1 to 4 residential units and must be signed by buyer and seller. A Transfer Disclosure Statement must be provided to the buyer when the sale involves A commercial building. A vacant lot. A 3-unit residential building. Real estate disclosure laws apply primarily for 1 to 4 residential units. A fiduciary relationship applies to a real estate licensee and to his or her principal. The proper order of the steps taken in agency disclosure is disclose, elect, confirm. A selling agent must comply with agency disclosures to the buyer before the buyer executes an offer. The "endless chain" refers to asking every prospect to recommend another prospect. The phrase "centers of influence" refers to influential people in the community. The fine for making a single unauthorized solicitation call to a residential number listed on the do-not-call registry can be up to $16,000 A major reason owners attempt to sell without an agent is to save paying the commission. In real estate, the term "farming" refers to working an area for buyers and sellers. A geographic farm could be a particular subdivision. The CAN-SPAM Act applies to restrictions on e-mail solicitations. Non-geographic farms include ethnic groups. A reverse directory allows an agent to have the occupant's name from the address. Prospecting from legal notices can be effective. Which of the following is NOT a legal notice? For Sale By Owner In describing sales successes, it would NOT be advantageous to point out that your firm sells 50% of its listings. A comparative market analysis would be LEAST valuable in indicating market value for a commercial property. Which of the following statements regarding selling time is TRUE? None of these: -Properties listed below market value tend to take longer to sell than properties listed at market value. -Properties listed above market value tend to sell faster than properties listed at prices closer to market value. -Because buyers seldom offer the list price, the list price has no effect on time to sell. Benefits that an owner receives by listing with an agent include All of these: -The benefit of multiple listing. -Qualification of prospects. -Promotion and advertising paid by the agent. As an indication of value, which of the following would BEST indicate the market value of a home? Similar properties sold within the past 3 months Serious buyers contact real estate agents because both agents have inventory and they want to quickly locate property that meets their needs. A listing presentation manual should include All of these: -Information about yourself. -Benefits of listing. -Information about your firm.