California Real Estate Principles -
Questions and Answers 100% Correct
(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 - correct answers ✔✔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 - correct answers ✔✔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 - correct answers ✔✔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. mandated
c. discouraged
d. prohibited - correct answers ✔✔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 - correct answers ✔✔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 - correct answers ✔✔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 - correct answers ✔✔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 -
correct answers ✔✔must cease all real estate activities
(1) 9. A real estate licensee can offer a mobile home for sale that is?
a. in a manufacturing plant, ready for delivery
b. transportable under an exemption from the vehicle code
c. presold
d. in a location where it can legally remain for one year - correct answers ✔✔in a location
where it can legally remain for one year
(1) 10. The Browns desperately want to move to Pine Bend, and they like the Smith House,
which is listed by broker Bob. The Browns tell Bob they will make it worth his while if he can
persuade the Smith's to accept the Brown offer on their house, and the Browns send an
expensive food basket to Bob as a sign of their good faith. Bob neglects to mention this to the
Smiths. This practice is
, a. acceptable
b. mandated
c. discouraged
d. prohibited - correct answers ✔✔prohibited
(1) 11. Broker Bob routinely places earnest money deposits in his personal account for overnight
safekeeping. This practice is
a. acceptable
b. mandated
c. discouraged
d. prohibited - correct answers ✔✔prohibited
(1) 12. Broker Luis has an exclusive listing agreement with the Pierces. The listing will terminate
"when the parties agree". This practice is
a. acceptable
b. mandated
c. discouraged
d. prohibited - correct answers ✔✔prohibited
(1) 13. When broker Bob exercised his option to buy Whiteacre, he presented to the owner of
Whiteacre a written statement of his expected profit in the transaction. The seller agreed to
proceed with the sale. This conduct is
a. acceptable
b. mandated
Questions and Answers 100% Correct
(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 - correct answers ✔✔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 - correct answers ✔✔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 - correct answers ✔✔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. mandated
c. discouraged
d. prohibited - correct answers ✔✔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 - correct answers ✔✔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 - correct answers ✔✔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 - correct answers ✔✔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 -
correct answers ✔✔must cease all real estate activities
(1) 9. A real estate licensee can offer a mobile home for sale that is?
a. in a manufacturing plant, ready for delivery
b. transportable under an exemption from the vehicle code
c. presold
d. in a location where it can legally remain for one year - correct answers ✔✔in a location
where it can legally remain for one year
(1) 10. The Browns desperately want to move to Pine Bend, and they like the Smith House,
which is listed by broker Bob. The Browns tell Bob they will make it worth his while if he can
persuade the Smith's to accept the Brown offer on their house, and the Browns send an
expensive food basket to Bob as a sign of their good faith. Bob neglects to mention this to the
Smiths. This practice is
, a. acceptable
b. mandated
c. discouraged
d. prohibited - correct answers ✔✔prohibited
(1) 11. Broker Bob routinely places earnest money deposits in his personal account for overnight
safekeeping. This practice is
a. acceptable
b. mandated
c. discouraged
d. prohibited - correct answers ✔✔prohibited
(1) 12. Broker Luis has an exclusive listing agreement with the Pierces. The listing will terminate
"when the parties agree". This practice is
a. acceptable
b. mandated
c. discouraged
d. prohibited - correct answers ✔✔prohibited
(1) 13. When broker Bob exercised his option to buy Whiteacre, he presented to the owner of
Whiteacre a written statement of his expected profit in the transaction. The seller agreed to
proceed with the sale. This conduct is
a. acceptable
b. mandated
