California Real Estate Study Guide Exam #2 Questions with Complete Answers

California Real Estate Study Guide Exam #2 Questions with Complete Answers 54. Which of the following would terminate an agency? (A) Mutual consent; (B) Death of the broker or seller; (C) Destruction of the property; (D) All of the above - Answer-d 55. The solicitation of a fee from an owner to promote the sale or rental of any property by any means other than advertising in a newspaper of general circulation is called: (A) A promotion fee; (B) An advertising fee; (C) An advance fee; (D) None of the above - Answer-c 56. Sanderson purchased a home in which he expects to live. As part of the purchase price, he contracted for a first mortgage with a federal savings and loan association. Under the provisions of the Federal Truth-in-Lending Act, he may: (A) Have a right to cancel because the mortgage creates a lien against his property; (B) Not cancel because a federal savings and loan iS exempt from the Act; (C) Cancel because all real estate loans are entitled to certain cancellation rights under the Act; (D) Not cancel because first mortgage to finance the purchase of his home carries no right to cancel - Answer-d 57. Two buildings are located in the same area, of comparable size, and both with long term leases. One building is leased to the government as a post office and the other to hardware store. The capitalization rates would be: (A) The same; (B) Higher for the hardware store; (C) Higher for the post office; (D) Proportional - Answer-b 58. Cordera Realty presented an offer for ABC Corporation on a $40,000 parcel of land. It turns out that broker Cordera and his associates are officers in ABC Corporation. Which of the following is correct regarding Cordera's responsibility to disclose his interest in ABC Corporation: (A) Since Cordera iS acting as a broker and not as a buyer, he has no duty to disclose that he and his associates are officers in ABC Corporation; (B) If the offer is full price, the fact that Cordera and his associates are officers in ABC Corporation is not relevant and need not be disclosed; (C) Broker Cordera must reveal that he IS acting as a broker and that he and his associates are officers in ABC Corporation, as this information would be considered a material fact; (D) Broker Cordera does not have to disclose that he and his associates are officers of ABC as long has he waives his commission - Answer-c 59. When a buyer of a residence, after signing a valid agreement of sale, asks the broker for permission to move into the property before the sale closes, the broker should: (A) Deny the permission; (B) Grant the buyer oral permission; (C) Have the buyer sign a temporary lease for the property; (D) Obtain written consent from the owner - Answer-d