CA Real Estate Practice Course PRACTICE EXAM
Questions With Complete Solutions
______ managers live in and manage apartment buildings.
Correct Answer Resident
______ tend to benefit most in a cold market. Correct Answer
Buyers
A couple of licensees you know from different firms are tired of
competing with one another for the same listings. You overhear
them saying, "You take the north side of town and I'll take the
south, so we aren't stepping on each other's toes." You stop their
conversation to tell them they're committing an antitrust
violation. Which one is it? Correct Answer Market allocation
A parking structure has 150 total spaces. How many of these
spaces must be accessible? Correct Answer Five
A property has 10 units and is 90% occupied. Rent is $500 per
month. Total vacancy and collection loss equals 10%. What's the
potential gross income? Correct Answer $60,000
A property is generating $100,000 in income and has expenses
of $25,000. The investor pays $3,000 toward mortgage principal
each year and $32,000 toward interest, plus another $4,000 in
income taxes. What is the before-tax cash flow? Correct
Answer $40,000
A property on the market was the site of a double murder. The
surviving owner moved out and put the home up for sale. The
, event happened more than one year ago. How does this affect
the property? Correct Answer The murders may create a stigma
on the property, and must be disclosed.
According to the NAR Code of Ethics, what responsibility do
licensees have related to material facts? Correct Answer Make
a reasonable effort to ascertain all material facts concerning each
property for which an agency is accepted.
Are immigrants to the United States covered under federal fair
housing laws? Correct Answer Yes, regardless of immigration
or resident status
Bethenney is Jason's agent. Jason made an offer on a property
and wrote an earnest money check, which he gave to Bethenney.
What should Bethenney do with the check? Correct Answer
Follow brokerage procedure for handling monies entrusted to
agents by clients.
Bob and Dina are putting together an offer on the property.
Which of these items would make their offer LESS competitive
and possibly cause another buyer's offer to be accepted? Correct
Answer Seller pays a portion of the buyer's closing costs
Bonnie always schedules an in-person meeting with prospective
buyers before she begins sending them data on properties. Why
might this be? Correct Answer She needs to define the buyers'
needs and wants.
Butch and Meg listed their five-bedroom Colonial and are
looking for a three-bedroom luxury townhome to buy. Now that
Questions With Complete Solutions
______ managers live in and manage apartment buildings.
Correct Answer Resident
______ tend to benefit most in a cold market. Correct Answer
Buyers
A couple of licensees you know from different firms are tired of
competing with one another for the same listings. You overhear
them saying, "You take the north side of town and I'll take the
south, so we aren't stepping on each other's toes." You stop their
conversation to tell them they're committing an antitrust
violation. Which one is it? Correct Answer Market allocation
A parking structure has 150 total spaces. How many of these
spaces must be accessible? Correct Answer Five
A property has 10 units and is 90% occupied. Rent is $500 per
month. Total vacancy and collection loss equals 10%. What's the
potential gross income? Correct Answer $60,000
A property is generating $100,000 in income and has expenses
of $25,000. The investor pays $3,000 toward mortgage principal
each year and $32,000 toward interest, plus another $4,000 in
income taxes. What is the before-tax cash flow? Correct
Answer $40,000
A property on the market was the site of a double murder. The
surviving owner moved out and put the home up for sale. The
, event happened more than one year ago. How does this affect
the property? Correct Answer The murders may create a stigma
on the property, and must be disclosed.
According to the NAR Code of Ethics, what responsibility do
licensees have related to material facts? Correct Answer Make
a reasonable effort to ascertain all material facts concerning each
property for which an agency is accepted.
Are immigrants to the United States covered under federal fair
housing laws? Correct Answer Yes, regardless of immigration
or resident status
Bethenney is Jason's agent. Jason made an offer on a property
and wrote an earnest money check, which he gave to Bethenney.
What should Bethenney do with the check? Correct Answer
Follow brokerage procedure for handling monies entrusted to
agents by clients.
Bob and Dina are putting together an offer on the property.
Which of these items would make their offer LESS competitive
and possibly cause another buyer's offer to be accepted? Correct
Answer Seller pays a portion of the buyer's closing costs
Bonnie always schedules an in-person meeting with prospective
buyers before she begins sending them data on properties. Why
might this be? Correct Answer She needs to define the buyers'
needs and wants.
Butch and Meg listed their five-bedroom Colonial and are
looking for a three-bedroom luxury townhome to buy. Now that
