PPP 7: CA Real Estate Broker Exam Prep Questions With
Complete Solutions
A 60-day safety clause in a listing contract provides that:
Correct Answers If the broker has shown the property to a
specific buyer during the term of the listing, and that buyer buys
the property within 60 days of the expiration of the listing, the
broker has earned the commission
A broker negotiates a new amortized loan on real property. The
Trust Deed Note is for $2,000 and the term is for two years and
nine months. Under the Loan Broker law, such loan: Correct
Answers Must provide for substantially equal payments and no
balloon payment
A broker would be guilty of commingling if the broker did not
withdraw earned commissions and fees from the trust account
within: Correct Answers 30 Days
A buyer agrees not to sell alcoholic beverages on the property
being acquired. This fact is noted in the deed granting him title.
The buyer has: Correct Answers Acquired the property subject
to a condition subsequent
A buyer defaults on a loan, therefore the lender would be able to
cause the promissory note to become due and payable. This
clause is a/an: Correct Answers Acceleration Clause
A CLTA policy (coverage of the standard policy of title
insurance) does not cover a/an: Correct Answers Unrecorded
easements and liens
,A dual agency may be created when: Correct Answers A buyer
and a seller are represented by different salespersons employed
by the same broker.
A gift deed: Correct Answers May take the form of either a
grant deed or a quitclaim deed.
A licensed real estate broker who is representing the seller in a
transaction, becomes the gratuitous agent (no fee) of the buyer
and accepts all of the fiduciary responsibilities as the buyers
agent when he or she: Correct Answers Sets up a financing
package for the buyer including a purchase money loan
A note coupled with a lien comprise: Correct Answers A
secured loan
A person and his property that is encumbered by a first deed of
trust are in Chapter 7 bankruptcy. The: Correct Answers Court
can sell the property and use the proceeds therefrom to pay debts
owed to unsecured creditors
A property is not listed for sale. A person, who wants to buy the
property, executes an offer to purchase it via a real estate agent.
In doing so, he gives the broker a $5,000 check as a deposit.
Under these circumstances, the broker: Correct Answers Can
accept the check as the exclusive agent of the buyer
A real estate broker who is charged with discriminatory
practices for refusing to rent his principals property to person
other than Caucasian, may be subject to which of the following
, penalties: Correct Answers Liable to pay $250 to the person
against whom he discriminates, Have his license suspended or
revoked, and Actual damages.
A real estate licensee may lawfully refuse to show a home to a
black prospect who has requested to see it in which of the
following situations: Correct Answers When the owner is out
of town and has instructed the licensee that no showing may be
made in his absence
A release clause: Correct Answers Allows portions of a
property (securing a blanket encumbrance) to be removed from
a trust deed which is security for a loan
A seller sued a real estate broker for misrepresentation of a
material fact that the broker had made to him during the sales
transaction. In defending the suit, the broker was able to prove
that the listing contract with the seller had been an oral
agreement. Under these circumstances: Correct Answers This
defense is not a bar because it was not the issue
A subordination clause in a trust deed benefits: Correct
Answers The Trustor
A township is: Correct Answers 36 Sections
A verbal acceptance of an offer for the purchase of real estate
with a broker would constitute a contract that was: Correct
Answers Unenforceable
Complete Solutions
A 60-day safety clause in a listing contract provides that:
Correct Answers If the broker has shown the property to a
specific buyer during the term of the listing, and that buyer buys
the property within 60 days of the expiration of the listing, the
broker has earned the commission
A broker negotiates a new amortized loan on real property. The
Trust Deed Note is for $2,000 and the term is for two years and
nine months. Under the Loan Broker law, such loan: Correct
Answers Must provide for substantially equal payments and no
balloon payment
A broker would be guilty of commingling if the broker did not
withdraw earned commissions and fees from the trust account
within: Correct Answers 30 Days
A buyer agrees not to sell alcoholic beverages on the property
being acquired. This fact is noted in the deed granting him title.
The buyer has: Correct Answers Acquired the property subject
to a condition subsequent
A buyer defaults on a loan, therefore the lender would be able to
cause the promissory note to become due and payable. This
clause is a/an: Correct Answers Acceleration Clause
A CLTA policy (coverage of the standard policy of title
insurance) does not cover a/an: Correct Answers Unrecorded
easements and liens
,A dual agency may be created when: Correct Answers A buyer
and a seller are represented by different salespersons employed
by the same broker.
A gift deed: Correct Answers May take the form of either a
grant deed or a quitclaim deed.
A licensed real estate broker who is representing the seller in a
transaction, becomes the gratuitous agent (no fee) of the buyer
and accepts all of the fiduciary responsibilities as the buyers
agent when he or she: Correct Answers Sets up a financing
package for the buyer including a purchase money loan
A note coupled with a lien comprise: Correct Answers A
secured loan
A person and his property that is encumbered by a first deed of
trust are in Chapter 7 bankruptcy. The: Correct Answers Court
can sell the property and use the proceeds therefrom to pay debts
owed to unsecured creditors
A property is not listed for sale. A person, who wants to buy the
property, executes an offer to purchase it via a real estate agent.
In doing so, he gives the broker a $5,000 check as a deposit.
Under these circumstances, the broker: Correct Answers Can
accept the check as the exclusive agent of the buyer
A real estate broker who is charged with discriminatory
practices for refusing to rent his principals property to person
other than Caucasian, may be subject to which of the following
, penalties: Correct Answers Liable to pay $250 to the person
against whom he discriminates, Have his license suspended or
revoked, and Actual damages.
A real estate licensee may lawfully refuse to show a home to a
black prospect who has requested to see it in which of the
following situations: Correct Answers When the owner is out
of town and has instructed the licensee that no showing may be
made in his absence
A release clause: Correct Answers Allows portions of a
property (securing a blanket encumbrance) to be removed from
a trust deed which is security for a loan
A seller sued a real estate broker for misrepresentation of a
material fact that the broker had made to him during the sales
transaction. In defending the suit, the broker was able to prove
that the listing contract with the seller had been an oral
agreement. Under these circumstances: Correct Answers This
defense is not a bar because it was not the issue
A subordination clause in a trust deed benefits: Correct
Answers The Trustor
A township is: Correct Answers 36 Sections
A verbal acceptance of an offer for the purchase of real estate
with a broker would constitute a contract that was: Correct
Answers Unenforceable
