CA 45 hr Real Estate Principals Course Exam -
Questions With Verified Solutions
XYZ trust would like to sell its property which of the following is the legal title
holder. Right Ans - The trustee
What must you do too convert a percentage to a decimal number? Right
Ans - Move the decimal .2 places to the left and remove the percent symbol.
Javier represents Marcus, who's selling his rental property to Ben. Ben is
represented by another real estate licensee, Francis. What is Ben's
relationship to Javier? Right Ans - Customer
Marsha Weinstein died, and her property wasn't held in the trust. Thus, her
estate will go through_______to ensure her property is distributed to her
beneficiaries in accordance with her will. Right Ans - Probate
Ken signed a contract to purchase Debra's condo. Ken signed the contract two
weeks prior to turning 18, which is the age of majority in his state. Deborah
found out about his age prior to the closing but honored the contract, and they
closed on the condo a month after Ken's birthday. What was the status of the
contract when Ken and Debra entered into it. Right Ans - Voidable
How does the office of fair housing and equal opportunity support real estate
consumers? Right Ans - The FHEO provides support for protected classes
through the fair housing complaint process.
Which of the following statements about asbestos is true? Right Ans - No
amount of it is considered safe.
I licensee must perform which of the following tasks for a buyer client?
Right Ans - Ensure the buyer understands the importance of due diligence,
including a professional inspection of the property.
Which of the following examples describe a pre-payment penalty? Right
Ans - A Monetary Penalty imposed on a bar for paying off a loan before it's
intended time.
, An investor is analyzing a property by looking at its ability to produce future
income. The property is a 10 unit apartment building. Which of the following
would be used to determine this value? Right Ans - Gross income multiplier
How many feet are in a yard? Right Ans - 3 feet
Lewis and Elliot started a real estate investment business together. After
much discussion with their attorney, they decided to incorporate, but in such
a way that they are treated like a partnership and don't have to pay corporate
taxes. What form of business do they have? Right Ans - Subchapter S
corporation
A private individual owner doesn't own more than three single-family homes
at one time, which exemption from the fair housing act could apply? Right
Ans - Single-family housing sold or rented without the use of a broker.
What is the purpose of the title search? Right Ans - To determine whether
the title is marketable (i.e., free of encumbrances)
The buyer you're working with doesn't want to enter into an agency
relationship. However the buyer begins to rely more and more on your advice
and indeed implied agency has begun you could have avoided this issue by
providing appropriate disclosures, but now that you've created implied
agency, what should you do? Right Ans - Ratify the implied agreement by
getting assigned agency agreement.
If an agent fails to perform the duties of obedience, what might the legal
consequences be? Right Ans - The agent may be charged with
misrepresentation.
Which of the following actions toward an appraiser would be considered
proper. Right Ans - Asking an appraiser to correct errors in the appraisal
report.
What institution was formed in 1968 and took over the sale of the
government loan market? Right Ans - Ginnie Mae (GNMA)
What recourse does a subdivision developer have to D&R order? Right Ans
- They can write a request to have a hearing and contest the order.
Questions With Verified Solutions
XYZ trust would like to sell its property which of the following is the legal title
holder. Right Ans - The trustee
What must you do too convert a percentage to a decimal number? Right
Ans - Move the decimal .2 places to the left and remove the percent symbol.
Javier represents Marcus, who's selling his rental property to Ben. Ben is
represented by another real estate licensee, Francis. What is Ben's
relationship to Javier? Right Ans - Customer
Marsha Weinstein died, and her property wasn't held in the trust. Thus, her
estate will go through_______to ensure her property is distributed to her
beneficiaries in accordance with her will. Right Ans - Probate
Ken signed a contract to purchase Debra's condo. Ken signed the contract two
weeks prior to turning 18, which is the age of majority in his state. Deborah
found out about his age prior to the closing but honored the contract, and they
closed on the condo a month after Ken's birthday. What was the status of the
contract when Ken and Debra entered into it. Right Ans - Voidable
How does the office of fair housing and equal opportunity support real estate
consumers? Right Ans - The FHEO provides support for protected classes
through the fair housing complaint process.
Which of the following statements about asbestos is true? Right Ans - No
amount of it is considered safe.
I licensee must perform which of the following tasks for a buyer client?
Right Ans - Ensure the buyer understands the importance of due diligence,
including a professional inspection of the property.
Which of the following examples describe a pre-payment penalty? Right
Ans - A Monetary Penalty imposed on a bar for paying off a loan before it's
intended time.
, An investor is analyzing a property by looking at its ability to produce future
income. The property is a 10 unit apartment building. Which of the following
would be used to determine this value? Right Ans - Gross income multiplier
How many feet are in a yard? Right Ans - 3 feet
Lewis and Elliot started a real estate investment business together. After
much discussion with their attorney, they decided to incorporate, but in such
a way that they are treated like a partnership and don't have to pay corporate
taxes. What form of business do they have? Right Ans - Subchapter S
corporation
A private individual owner doesn't own more than three single-family homes
at one time, which exemption from the fair housing act could apply? Right
Ans - Single-family housing sold or rented without the use of a broker.
What is the purpose of the title search? Right Ans - To determine whether
the title is marketable (i.e., free of encumbrances)
The buyer you're working with doesn't want to enter into an agency
relationship. However the buyer begins to rely more and more on your advice
and indeed implied agency has begun you could have avoided this issue by
providing appropriate disclosures, but now that you've created implied
agency, what should you do? Right Ans - Ratify the implied agreement by
getting assigned agency agreement.
If an agent fails to perform the duties of obedience, what might the legal
consequences be? Right Ans - The agent may be charged with
misrepresentation.
Which of the following actions toward an appraiser would be considered
proper. Right Ans - Asking an appraiser to correct errors in the appraisal
report.
What institution was formed in 1968 and took over the sale of the
government loan market? Right Ans - Ginnie Mae (GNMA)
What recourse does a subdivision developer have to D&R order? Right Ans
- They can write a request to have a hearing and contest the order.
