CE SHOP REAL ESTATE TERMS EXAM
QUESTIONS WITH COMPLETE
SOLUTIONS
Is He Qualified? John is an honest and truthful 28 year old. He's successfully completed
courses on Real Estate Practice, Real Estate Finance, Real Estate Appraisal, Legal
Aspects of Real Estate, Accounting, Property Management, Escrows, and Business
Law. He's a legal U.S. resident and doesn't have any convictions or child support
obligations. Is he qualified to obtain a real estate broker license? - Answer-No
When a real estate license is issued in California, how long is that licensed valid? -
Answer-Four years
It's up to licensees to make sure they're completing their CE hours. They'll receive a
reminder about three months before their license expires, but trying to crunch in all of
the hours in this three-month period can be stressful. You can complete CE courses at
any time during the four years immediately preceding the license expiration. How many
hours of CE do licensees need to complete? - Answer-45
Licensees have some flexibility in courses they complete for CE, but there are
mandatory topics that must be taken. What are the mandatory topics? - Answer-
Agency, Fair Housing, Risk Management, Ethics, Trust Fund Handling
What are the two requirements to be exempt from taking CE courses? - Answer-70
years old and hold a license in good standing for 30 consecutive years.
Which agency must Real Estate licensees go through to gain the MLO endorsement? -
Answer-National Mortgage Licensing System and Registry (NMLS&R)
What is vicarious liability as it applies to real estate? - Answer-A broker is held
responsible for the actions or omissions of the broker's license.
What is the minimum amount of full-time real estate industry experience that an
individual must have to qualify for a broker's license? - Answer-Two years
Which federal act requires states to pass laws relating to mortgage loan originator
(MLO) endorsements? - Answer-SAFE Act
Years ago, Rachel held a real estate license. She took some time off to travel and start
a family. Now she's ready to get back in the saddle. Her license expired three years
ago. What must she do to renew her license and start practicing real estate again? -
Answer-Requalify for a real estate license by completing pre-licensing courses and
passing the state licensing exam.
, California licensee Donald has a new listing for the house next door to his. He's never
had problems with these neighbors and hopes to keep it this way by making sure the
"right" people move in. He doesn't show the property to any prospective buyers with
children. These actions soon bring complaints of a fair housing violation. What effect
does this have on Robert (Donald's sponsoring broker)? - Answer-Robert is liable for
Donald's actions and could be sanctioned along with Donald as a result of Donald's fair
housing violation.
The licensee informs their client of compensation they'll receive from the transaction. Is
this a violation? - Answer-Not a violation
A licensee deposits a buyer's $1000 check into their personal savings account for
safekeeping. Is this a violation ? - Answer-Violation
A licensee fails to disclose a material property defect they knew about. Is this a
violation? - Answer-Violation
Vivian has a new listing. In some areas of town, properties sell shortly after they hit the
market. This property, however, is in a different area of town. The sellers are in no rush
and are willing to wait for the right buyer to come along. Knowing this, Vivian writes up a
listing agreement for the clients with no termination date. Is this a violation? - Answer-
Yes
A licensee represents the buyers and sellers in the same transaction. Neither party
knows or consented. Is this a violation? - Answer-Violation
A licensee represents the buyers and sellers in the same transaction. Both parties know
and have consented. Is this a violation? - Answer-Not a violation
A licensee represents the buyers and sellers in the same transaction. Only the buyer
knows and provided consent. Is this a violation? - Answer-Violation
A licensee represents the buyers and the sellers in the same transaction. Only the seller
knows and provided consent. Is this a violation? - Answer-Violation
Goodwin knows an opportunity when he sees one. He obtained a listing in which the
seller has greatly underestimated the value of his property. Rather than pricing the
property higher, he agrees with the seller's value and lists the property. Goodwin plans
to buy it at list price, then resell it for at least $50,000 more. He doesn't want to raise
any suspicion of his plan, so he uses a "dummy" buyer to make the purchase. Is this a
violation? - Answer-Yes
Blanca is in the process of obtaining her broker license. She has one year of experience
as a salesperson, but her application reflects two years. Is this a violation? - Answer-
Violation
QUESTIONS WITH COMPLETE
SOLUTIONS
Is He Qualified? John is an honest and truthful 28 year old. He's successfully completed
courses on Real Estate Practice, Real Estate Finance, Real Estate Appraisal, Legal
Aspects of Real Estate, Accounting, Property Management, Escrows, and Business
Law. He's a legal U.S. resident and doesn't have any convictions or child support
obligations. Is he qualified to obtain a real estate broker license? - Answer-No
When a real estate license is issued in California, how long is that licensed valid? -
Answer-Four years
It's up to licensees to make sure they're completing their CE hours. They'll receive a
reminder about three months before their license expires, but trying to crunch in all of
the hours in this three-month period can be stressful. You can complete CE courses at
any time during the four years immediately preceding the license expiration. How many
hours of CE do licensees need to complete? - Answer-45
Licensees have some flexibility in courses they complete for CE, but there are
mandatory topics that must be taken. What are the mandatory topics? - Answer-
Agency, Fair Housing, Risk Management, Ethics, Trust Fund Handling
What are the two requirements to be exempt from taking CE courses? - Answer-70
years old and hold a license in good standing for 30 consecutive years.
Which agency must Real Estate licensees go through to gain the MLO endorsement? -
Answer-National Mortgage Licensing System and Registry (NMLS&R)
What is vicarious liability as it applies to real estate? - Answer-A broker is held
responsible for the actions or omissions of the broker's license.
What is the minimum amount of full-time real estate industry experience that an
individual must have to qualify for a broker's license? - Answer-Two years
Which federal act requires states to pass laws relating to mortgage loan originator
(MLO) endorsements? - Answer-SAFE Act
Years ago, Rachel held a real estate license. She took some time off to travel and start
a family. Now she's ready to get back in the saddle. Her license expired three years
ago. What must she do to renew her license and start practicing real estate again? -
Answer-Requalify for a real estate license by completing pre-licensing courses and
passing the state licensing exam.
, California licensee Donald has a new listing for the house next door to his. He's never
had problems with these neighbors and hopes to keep it this way by making sure the
"right" people move in. He doesn't show the property to any prospective buyers with
children. These actions soon bring complaints of a fair housing violation. What effect
does this have on Robert (Donald's sponsoring broker)? - Answer-Robert is liable for
Donald's actions and could be sanctioned along with Donald as a result of Donald's fair
housing violation.
The licensee informs their client of compensation they'll receive from the transaction. Is
this a violation? - Answer-Not a violation
A licensee deposits a buyer's $1000 check into their personal savings account for
safekeeping. Is this a violation ? - Answer-Violation
A licensee fails to disclose a material property defect they knew about. Is this a
violation? - Answer-Violation
Vivian has a new listing. In some areas of town, properties sell shortly after they hit the
market. This property, however, is in a different area of town. The sellers are in no rush
and are willing to wait for the right buyer to come along. Knowing this, Vivian writes up a
listing agreement for the clients with no termination date. Is this a violation? - Answer-
Yes
A licensee represents the buyers and sellers in the same transaction. Neither party
knows or consented. Is this a violation? - Answer-Violation
A licensee represents the buyers and sellers in the same transaction. Both parties know
and have consented. Is this a violation? - Answer-Not a violation
A licensee represents the buyers and sellers in the same transaction. Only the buyer
knows and provided consent. Is this a violation? - Answer-Violation
A licensee represents the buyers and the sellers in the same transaction. Only the seller
knows and provided consent. Is this a violation? - Answer-Violation
Goodwin knows an opportunity when he sees one. He obtained a listing in which the
seller has greatly underestimated the value of his property. Rather than pricing the
property higher, he agrees with the seller's value and lists the property. Goodwin plans
to buy it at list price, then resell it for at least $50,000 more. He doesn't want to raise
any suspicion of his plan, so he uses a "dummy" buyer to make the purchase. Is this a
violation? - Answer-Yes
Blanca is in the process of obtaining her broker license. She has one year of experience
as a salesperson, but her application reflects two years. Is this a violation? - Answer-
Violation
