California Real Estate Principles Questions & Answers Already Graded A +| Updated 2024

(1) 1. The Real Estate Law is found in the a. Licensing Code b. Business and Professions Code c. Health and Safety Code d. Corporations Code - Answer Business and Professions Code (1) 2. The Real Estate Commissioner reports to the a. California Bureau of Real Estate b. governor c. Real Estate Advisory Commission d. legislature - Answer governor (1) 3. Salesperson Sam owns 25% of the outstanding shares of Rollo Realty, Inc., and broker Barbara Rollo owns the remaining shares. This division of ownership is? a. acceptable b. mandated c. discouraged d. prohibited - Answer acceptable (1) 4. Salesperson Sam is part owner of Rollo Realty, Inc. In the broker's absence, Sam frequently reviews the work of sales associates. This is? a. acceptable b. mandatedc. discouraged d. prohibited - Answer prohibited (1) 5. A real estate business that is a partnership can have more than one office location, provided a. a broker partner obtains an additional license for each location b. all partners are real estate licensees c. there is a designated broker-officer d. there is at least one partner at each location - Answer a broker partner obtains an additional license for each location (1) 6. The sale or transfer of goods ordinarily held for sale in the course of business is governed in California by the? a. Business Opportunity Code b. Commercial Transfer Law c. Uniform Commercial Code d. Real Estate Law - Answer Uniform Commercial Code (1) 7. Todd, an officer of Ajax Corporation and not a real estate licensee, successfully negotiated the purchase of the Smith Widget Plant on behalf of Ajax. Todd received a commission on the sale in addition to his normal salary. Todd a. did not need a real estate license for the deal b. should have had a real estate license c. is exempt from licensing requirements d. None of these - Answer should have had a real estate license (1) 8. If a real estate license is NOT renewed before it expires, the licensee?a. is allowed to complete transactions in progress b. is allowed to finish transactions that are substantially complete c. must cease all real estate activities d. may act under authority of another agent's license for a period not to exceed 60 days - Answer must cease all real estate activities