CA DRE Salesperson Exam Practice Questions

CA DRE Salesperson Exam Practice Questions When agent Andy took a listing, he promised the seller that he would advertise the property in a magazine until it was sold. Andy told the seller he submitted the ad, but the magazine said Andy never contacted them what is Andy guilt of? A)Objective Fraud B) Constructive Fraud C) Actual Fraud D) Comprehensive Fraud - ANSWER- C) Actual Fraud A fee simple estate is: A) a leasehold B) an estate for years C) a less-than-freehold estate D) an estate of inheritance - ANSWER- D) an estate of inheritance If an appraiser is appraising a special purpose property he would probably use the: A) Income approach B) Market data approach C) Land residual approach D) Cost approach - ANSWER- D) Cost Approach Definitions of market value is least concerned with: A) Market cost B) Objective Value C) Value in exchange D) Open Market - ANSWER- A) Market Cost What type of an appraisal license is required to appraise a commercial strip mall valued at $700,000: A) Certified general license B) Retail appraisal license C) Certified residential license D) Residential real estate - ANSWER- A) Certified general license In order to comply with the regulations of the state Housing Law, a person should seek the issuance of a building permit from: A) the California DRE B) the local Department of Building and Safety C) the nearest office of the Department of Housing and Community Development D) the California Department of Urban Renewal - ANSWER- B) the local Department of Building and Safety Property taxes are described as "ad valorem" taxes. "Ad valorem" most nearly means A) Replacement Value B) According to value C) Market value D) Reproduction value - ANSWER- B) According to value One of the main benefits of a sale-leaseback transaction would be: A) You can get the deposit back with no objection B) You have the option to lease the property back after the termination of the lease C) the ability of the seller to deduct all of his future rent payments as business expenditures D) the ability to maintain the book value of the new buyer - ANSWER- C) the ability of the seller to deduct all of his future rent payments as business expenditures The main purpose of "RESPA" (Real Estate Settlement Producers Act) is to: A) To provide consumers with enough info to enable them to shop for settlement services B)Place a fixed limit on settlement costs on residential property of four units or less C) To standardize settlement services throughout the US D) Place a fixed limit on settlement costs in all real estate transactions - ANSWER- A) To provide consumers with enough info to enable them to shop for settlement services A broker who holds a valid listing on a property places a classified ad for the property containing only the following information "For Sale: 3 bedroom, 2 bath home with swiiming pool. Asking price $165,00. Telephone 555-9276" This type of ad is a: A) Silent Ad B) Qualified Ad C) Display Ad D) Blind Ad - ANSWER- D) Blind Ad A property owner lists his property for sale with a broker. During the negotiations, the owner told the broker that the owner wanted $138,00 for the property, and anything above that amount the broker could keep as his commission. The listing with tis type of provision is known as: A) open listing B) gross listing C) non exclusive listing D) net listing - ANSWER- D) net listing Which of the following is an example of a less than freehold estate? A) estate in severalty B) fee simple determinable estate C) leasehold estate D) fee simple estate - ANSWER- C) leasehold estate When a lender loans a borrower 100% of the purchase price of a house, and the loan is not government-related, the lender would be best protected by: A) a downturn in the economy B) low monthly payments C) low interest rate D) appreciation - ANSWER- D) appreciation The term "warehousing" as used in real estate financing, means: A) The financing of industrial warehouse B) A mortgage company collection loans prior to resale C) A large bank or savings and loan D) Unregulated real estate loans - ANSWER- B) A mortgage company collection loans prior to resale When a lender makes a loan regulated by the Real Estate Settlement Procedures Act, the loan applicant must be provided with which of the following: A) An application for private mortgage insurance B) A loan estimate C) A bill of sale D) Forms for applying for the homeowners exemption - ANSWER- B) A loan of estimate