CALIFORNIA 8-HOUR SURVEY
Actual_fraud_may_include_-
_Correct_answer~_false_suggestion,_false_assertion,_and_false_promises.
true_or_false:_A_broker_has_a_duty_to_disclose_material_facts_that_are_known_to_him,
_but_does_not_have_the_duty_to_disclose_facts_that_should_be_known_to_him_through
_reasonable_diligence._-_Correct_answer~_False
true_or_false:_An_agency_relationship_does_not_depend_on_the_existence_of_a_written
_contract._-_Correct_answer~_True
True_or_false:_One_who_is_employed_by_a_principal_as_an_agent_for_a_particular_tran
saction_or_purpose_is_a_general_agent._-_Correct_answer~_False._
An_agent_for_a_particular_transaction_or_purpose_is_a_special_agent._All_other_agents_
are_general_agent.
True_or_false:_A_"waterfront_specialist"_listed_a_home_on_the_Sacramento_River_with_
a_20-
foot_river_wall._There_were_vertical_cracks_in_the_wall,_which_a_prospective_buyer_wa
s_quick_to_ask_about._The_agent_told_the_buyers_that_vertical_cracks_were_common_a
nd_that_horizontal_cracks_were_the_ones_to_look_out_for_-
_a_well_known_fact._After_the_closing,_a_flood_caused_six_panels_of_the_river_wall_to
_collapse._The_buyers_sued,_but_they_had_no_real_argument_because_the_agent_had_
openly_discussed_the_cracks_prior_to_closing._-_Correct_answer~_False
True_or_false"_The_laws_of_agency_apply_exclusively_to_real_estate_licenses._-
_Correct_answer~_False
,True_or_False:_A_buyer's_broker_convinces_the_buyer_to_place_an_offer_on_one_of_her
_listings._Since_the_broker_has_fully_informed_her_client_that_the_property_is_her_listin
g,_she_is_no_longer_acting_in_a_dual_agency_capacity._-_Correct_answer~_False
True_or_false:_It_is_all_right_for_agents_to_act_for_their_own_benefit_in_an_agency_rel
ationship_as_long_as_the_principals_share_in_the_agents'_profits._-
_Correct_answer~_False
Ona,_wishing_to_sell_her_house,_grants_her_brother_a_general_power_of_attorney._The
_brother_-_Correct_answer~_has_full_authority_to_seek_buyers_for_the_property.
A_listing_agent_in_San_Mateo_County_was_trying_to_sell_a_property_to_an_out-of-
state_buyer._Observing_two_cracks_in_the_foundation,_the_buyer_asked_whether_the_c
ause_was_earthquakes_and_where_the_San_Andreas_Fault_was_located._The_agent_repl
ied_that_the_cracks_were_due_to_foundation_settling,_which_was_common._As_to_the_
fault,_the_agent_"wasn't_sure"_where_it_was._What_BEST_characterizes_the_agent's_sit
uation_concerning_disclosure?_-_Correct_answer~_He's_risking_trouble_on_both_counts.
True_or_false:_A_listing_agent_and_the_seller_are_trying_to_pin_down_the_listing_price.
_The_seller_asks_the_agent_what_a_fair_listing_price_would_be,_and_the_agent_says_th
at,_while_a_lot_of_the_"beginners"_in_the_brokerage_community_run_CMAs_to_estimat
e_value,_he_has_all_the_confidence_in_the_world_that_$209,000_is_a_good_number,_gi
ven_current_market_conditions._They_list_at_the_price,_and_the_property_sells_in_less_t
han_three_days._The_seller_is_delighted_until_the_buyer_inform_her_that_they_stole_th
e_property!_Comparable_properties,_it_turns_out,_are_going_for_at_least_$255,000._At_
this_point,_the_listing_agent_is_exposed_to_liability_for_negligence._-
_Correct_answer~_True
True_or_false:_A_real_estate_licensee_works_full_time_for_a_fast-
food_franchise._The_agent_maintains_regular_office_hours_at_the_company_and_must_f
ollow_the_company's_methods_for_analyzing_potential_restaurant_sites._The_licensee_is
, _paid_a_commission_for_every_site_she_puts_under_lease._This_person_would_MOST_li
kely_be_considered_an_employee_of_the_franchise._-_Correct_answer~_True
True_or_false:_An_owner_is_thoroughly_unsatisfied_with_an_agent's_performance_and_d
ecides_to_list_with_another_brokerage._The_owner_cancels_the_agreement_and_refuses
_to_pay_for_the_agent's_advertising_and_promotional_expenses._Since_the_agent_perfor
med_unsatisfactorily,_the_agent's_only_recourse_is_to_comply_and_absorb_the_marketin
g_expenses._-_Correct_answer~_False
True_or_False:_A_flood_zone_code_prohibits_ground-
floor_improvement_of_newly_constructed_homes._Numerous_residents_in_the_area_imp
rove_these_areas_anyway_in_violation_of_the_code._One_such_resident_lists_his_proper
ty_with_the_advertisement_that_the_home_contains_2,000_square_feet_of_living_area,_i
nclusive_of_the_ground-
floor_recreation_room._The_listing_agent_represents_to_a_buyer_that_the_home_has_w
onderful_extra_room_for_the_kids-
_which_is_why_the_listing_price_is_a_little_higher_than_that_of_other_similar_homes._In
_this_case,_the_agent_has_committed_fraud._-_Correct_answer~_True
An_agent_knew_that_a_property_would_be_coming_on_the_market,_since_the_homeow
ner_had_told_the_agent_about_an_upcoming_job_transfer._When_the_agent_produced_
a_full-
price_buyer_for_the_property,_a_completely_surprised_seller_informed_the_agent_that_h
e_would_consider_the_offer_but_was_not_liable_for_any_commission_since_there_was_n
o_listing_agreement._In_this_case,_the_-
_Correct_answer~_seller_could_become_liable_for_the_commission_if_he_accepts_the_of
fer_that_includes_the_commission.
True_or_false:_An_agent_is_eagerly_trying_to_gain_a_buyer's_loyalty_before_showing_ho
mes._He_does_not_want_to_do_a_lot_of_work_only_to_have_the_prospect_run_off_with
_another_agent._The_buyer_isn't_sure_about_the_agent's_qualifications_and_ability_to_fi
nd_the_right_home._The_agent_responds_that_his_area_of_specialization_is_buyer_broke
rage._In_addition,_he_says,_"I_am_a_member_of_an_MLS,_so_I_can_access_any_availabl
Actual_fraud_may_include_-
_Correct_answer~_false_suggestion,_false_assertion,_and_false_promises.
true_or_false:_A_broker_has_a_duty_to_disclose_material_facts_that_are_known_to_him,
_but_does_not_have_the_duty_to_disclose_facts_that_should_be_known_to_him_through
_reasonable_diligence._-_Correct_answer~_False
true_or_false:_An_agency_relationship_does_not_depend_on_the_existence_of_a_written
_contract._-_Correct_answer~_True
True_or_false:_One_who_is_employed_by_a_principal_as_an_agent_for_a_particular_tran
saction_or_purpose_is_a_general_agent._-_Correct_answer~_False._
An_agent_for_a_particular_transaction_or_purpose_is_a_special_agent._All_other_agents_
are_general_agent.
True_or_false:_A_"waterfront_specialist"_listed_a_home_on_the_Sacramento_River_with_
a_20-
foot_river_wall._There_were_vertical_cracks_in_the_wall,_which_a_prospective_buyer_wa
s_quick_to_ask_about._The_agent_told_the_buyers_that_vertical_cracks_were_common_a
nd_that_horizontal_cracks_were_the_ones_to_look_out_for_-
_a_well_known_fact._After_the_closing,_a_flood_caused_six_panels_of_the_river_wall_to
_collapse._The_buyers_sued,_but_they_had_no_real_argument_because_the_agent_had_
openly_discussed_the_cracks_prior_to_closing._-_Correct_answer~_False
True_or_false"_The_laws_of_agency_apply_exclusively_to_real_estate_licenses._-
_Correct_answer~_False
,True_or_False:_A_buyer's_broker_convinces_the_buyer_to_place_an_offer_on_one_of_her
_listings._Since_the_broker_has_fully_informed_her_client_that_the_property_is_her_listin
g,_she_is_no_longer_acting_in_a_dual_agency_capacity._-_Correct_answer~_False
True_or_false:_It_is_all_right_for_agents_to_act_for_their_own_benefit_in_an_agency_rel
ationship_as_long_as_the_principals_share_in_the_agents'_profits._-
_Correct_answer~_False
Ona,_wishing_to_sell_her_house,_grants_her_brother_a_general_power_of_attorney._The
_brother_-_Correct_answer~_has_full_authority_to_seek_buyers_for_the_property.
A_listing_agent_in_San_Mateo_County_was_trying_to_sell_a_property_to_an_out-of-
state_buyer._Observing_two_cracks_in_the_foundation,_the_buyer_asked_whether_the_c
ause_was_earthquakes_and_where_the_San_Andreas_Fault_was_located._The_agent_repl
ied_that_the_cracks_were_due_to_foundation_settling,_which_was_common._As_to_the_
fault,_the_agent_"wasn't_sure"_where_it_was._What_BEST_characterizes_the_agent's_sit
uation_concerning_disclosure?_-_Correct_answer~_He's_risking_trouble_on_both_counts.
True_or_false:_A_listing_agent_and_the_seller_are_trying_to_pin_down_the_listing_price.
_The_seller_asks_the_agent_what_a_fair_listing_price_would_be,_and_the_agent_says_th
at,_while_a_lot_of_the_"beginners"_in_the_brokerage_community_run_CMAs_to_estimat
e_value,_he_has_all_the_confidence_in_the_world_that_$209,000_is_a_good_number,_gi
ven_current_market_conditions._They_list_at_the_price,_and_the_property_sells_in_less_t
han_three_days._The_seller_is_delighted_until_the_buyer_inform_her_that_they_stole_th
e_property!_Comparable_properties,_it_turns_out,_are_going_for_at_least_$255,000._At_
this_point,_the_listing_agent_is_exposed_to_liability_for_negligence._-
_Correct_answer~_True
True_or_false:_A_real_estate_licensee_works_full_time_for_a_fast-
food_franchise._The_agent_maintains_regular_office_hours_at_the_company_and_must_f
ollow_the_company's_methods_for_analyzing_potential_restaurant_sites._The_licensee_is
, _paid_a_commission_for_every_site_she_puts_under_lease._This_person_would_MOST_li
kely_be_considered_an_employee_of_the_franchise._-_Correct_answer~_True
True_or_false:_An_owner_is_thoroughly_unsatisfied_with_an_agent's_performance_and_d
ecides_to_list_with_another_brokerage._The_owner_cancels_the_agreement_and_refuses
_to_pay_for_the_agent's_advertising_and_promotional_expenses._Since_the_agent_perfor
med_unsatisfactorily,_the_agent's_only_recourse_is_to_comply_and_absorb_the_marketin
g_expenses._-_Correct_answer~_False
True_or_False:_A_flood_zone_code_prohibits_ground-
floor_improvement_of_newly_constructed_homes._Numerous_residents_in_the_area_imp
rove_these_areas_anyway_in_violation_of_the_code._One_such_resident_lists_his_proper
ty_with_the_advertisement_that_the_home_contains_2,000_square_feet_of_living_area,_i
nclusive_of_the_ground-
floor_recreation_room._The_listing_agent_represents_to_a_buyer_that_the_home_has_w
onderful_extra_room_for_the_kids-
_which_is_why_the_listing_price_is_a_little_higher_than_that_of_other_similar_homes._In
_this_case,_the_agent_has_committed_fraud._-_Correct_answer~_True
An_agent_knew_that_a_property_would_be_coming_on_the_market,_since_the_homeow
ner_had_told_the_agent_about_an_upcoming_job_transfer._When_the_agent_produced_
a_full-
price_buyer_for_the_property,_a_completely_surprised_seller_informed_the_agent_that_h
e_would_consider_the_offer_but_was_not_liable_for_any_commission_since_there_was_n
o_listing_agreement._In_this_case,_the_-
_Correct_answer~_seller_could_become_liable_for_the_commission_if_he_accepts_the_of
fer_that_includes_the_commission.
True_or_false:_An_agent_is_eagerly_trying_to_gain_a_buyer's_loyalty_before_showing_ho
mes._He_does_not_want_to_do_a_lot_of_work_only_to_have_the_prospect_run_off_with
_another_agent._The_buyer_isn't_sure_about_the_agent's_qualifications_and_ability_to_fi
nd_the_right_home._The_agent_responds_that_his_area_of_specialization_is_buyer_broke
rage._In_addition,_he_says,_"I_am_a_member_of_an_MLS,_so_I_can_access_any_availabl
