Practice Midterm -Rockwell
One of the legal obligations of a seller's agent is providing a copy of the seller's transfer
disclosure statement to:
a. the county recorder
b. the listing brokerage and all its agents
c. the multiple listing service
d. the buyer - CORRECT ANSWER-d. the buyer
Explanation: The seller's agent is responsible for providing a copy of the transfer
disclosure statement to a buyer.
Which California law prohibits discrimination by business establishments in general?
a. Fair Employment and Housing Act
b. Housing Financial Discrimination Act
c. Unruh Civil Rights Act
d. Real estate license law - CORRECT ANSWER-c. Unruh Civil Rights Act
Explanation: The Unruh Civil Rights Act prohibits discrimination by business
establishments, including real estate brokerages.
Which of the following actions by a broker would be illegal under the federal Fair
Housing Act?
a. Imposing a rule that if African-American clients ask to see "some less expensive
houses," agents should show them houses in predominantly black neighborhoods
b. Matching up potential buyers with salespersons based on race
c. Neither A nor B; both actions are legal
d. Both A and B; both actions are illegal - CORRECT ANSWER-d. Both A and B; both
actions are illegal
Explanation: The Fair Housing Act prohibits discrimination based on race (or other
characteristics protected under the act) in the provision of services related to the sale or
rental of housing, so both of these actions would be illegal under the act.
,Once a listing agreement has been signed:
a. it can't be modified
b. it can be modified only by the seller
c. it can be modified only by the agent
d. it can be modified only with the written consent of all parties - CORRECT ANSWER-
d. it can be modified only with the written consent of all parties
Explanation: Like any written contract, once a listing agreement has been signed, it can
be modified only with the written consent of all of the parties. The MLS may provide a
form that can be used for this purpose.
For which of the following acts might a broker be subject to disciplinary action?
a. Failing to include a termination date in an exclusive listing agreement
b. Failing to include a termination date in an open listing agreement
c. Keeping trust funds from different clients in a single trust account
d. Basing a commission amount on the property's selling price - CORRECT ANSWER-
a. Failing to include a termination date in an exclusive listing agreement
Explanation: Failure to include a termination date in an exclusive listing agreement is a
violation of the Real Estate Law, so the broker could be subject to disciplinary action.
On Thursday, Angie decided to accept Harry's counteroffer for the purchase of his
house. She signed the counteroffer and placed it in the mail. On Friday, Harry decided
that he had asked too low a price for the house, so he faxed Angie stating that the
counteroffer was withdrawn. On Saturday, Harry received Angie's acceptance in the
mail. Under the mailbox rule, which of the following is true?
a. Harry withdrew his offer, so no contract was formed
b. Harry did not withdraw his counteroffer in time, so a contract was formed
c. Harry may not make a counteroffer
d. Harry's withdrawal was ineffective since it was not in writing - CORRECT ANSWER-
b. Harry did not withdraw his counteroffer in time, so a contract was formed
, Explanation: Angie's acceptance was placed in the mail before Harry communicated his
revocation of the counteroffer. If the mailbox rule applies, as in this scenario, this means
that Angie's acceptance was effective and a binding contract was formed. (Note that
some commonly-used purchase agreements state that the mailbox rule does not apply.)
All of these are typical tasks that an unlicensed real estate assistant may do, except:
a. negotiating counteroffers
b. maintaining transaction files
c. greeting visitors at open houses
d. answering phones - CORRECT ANSWER-a. negotiating counteroffers
Explanation: Real estate assistants are commonly responsible for maintaining files,
answering phones, and assisting with open houses. The task of negotiating a
counteroffer must be left to a licensee.
Which of these factors would tend to lower overall property values most in a single-
family residential neighborhood?
a. Construction of smaller and less valuable homes
b. Homogeneity in socioeconomic levels
c. Small changes in zoning laws
d. Purchase of existing homes by first-time buyers - CORRECT ANSWER-a.
Construction of smaller and less valuable homes
Explanation: The introduction of less valuable homes into a neighborhood tends to
lower the value of the more expensive homes.
A buyer makes and signs a written offer. The seller writes in one small change to the
offer and signs it. This document is known as:
a. an addendum
b. an amendment
c. a modification
d. a counteroffer - CORRECT ANSWER-d. a counteroffer
One of the legal obligations of a seller's agent is providing a copy of the seller's transfer
disclosure statement to:
a. the county recorder
b. the listing brokerage and all its agents
c. the multiple listing service
d. the buyer - CORRECT ANSWER-d. the buyer
Explanation: The seller's agent is responsible for providing a copy of the transfer
disclosure statement to a buyer.
Which California law prohibits discrimination by business establishments in general?
a. Fair Employment and Housing Act
b. Housing Financial Discrimination Act
c. Unruh Civil Rights Act
d. Real estate license law - CORRECT ANSWER-c. Unruh Civil Rights Act
Explanation: The Unruh Civil Rights Act prohibits discrimination by business
establishments, including real estate brokerages.
Which of the following actions by a broker would be illegal under the federal Fair
Housing Act?
a. Imposing a rule that if African-American clients ask to see "some less expensive
houses," agents should show them houses in predominantly black neighborhoods
b. Matching up potential buyers with salespersons based on race
c. Neither A nor B; both actions are legal
d. Both A and B; both actions are illegal - CORRECT ANSWER-d. Both A and B; both
actions are illegal
Explanation: The Fair Housing Act prohibits discrimination based on race (or other
characteristics protected under the act) in the provision of services related to the sale or
rental of housing, so both of these actions would be illegal under the act.
,Once a listing agreement has been signed:
a. it can't be modified
b. it can be modified only by the seller
c. it can be modified only by the agent
d. it can be modified only with the written consent of all parties - CORRECT ANSWER-
d. it can be modified only with the written consent of all parties
Explanation: Like any written contract, once a listing agreement has been signed, it can
be modified only with the written consent of all of the parties. The MLS may provide a
form that can be used for this purpose.
For which of the following acts might a broker be subject to disciplinary action?
a. Failing to include a termination date in an exclusive listing agreement
b. Failing to include a termination date in an open listing agreement
c. Keeping trust funds from different clients in a single trust account
d. Basing a commission amount on the property's selling price - CORRECT ANSWER-
a. Failing to include a termination date in an exclusive listing agreement
Explanation: Failure to include a termination date in an exclusive listing agreement is a
violation of the Real Estate Law, so the broker could be subject to disciplinary action.
On Thursday, Angie decided to accept Harry's counteroffer for the purchase of his
house. She signed the counteroffer and placed it in the mail. On Friday, Harry decided
that he had asked too low a price for the house, so he faxed Angie stating that the
counteroffer was withdrawn. On Saturday, Harry received Angie's acceptance in the
mail. Under the mailbox rule, which of the following is true?
a. Harry withdrew his offer, so no contract was formed
b. Harry did not withdraw his counteroffer in time, so a contract was formed
c. Harry may not make a counteroffer
d. Harry's withdrawal was ineffective since it was not in writing - CORRECT ANSWER-
b. Harry did not withdraw his counteroffer in time, so a contract was formed
, Explanation: Angie's acceptance was placed in the mail before Harry communicated his
revocation of the counteroffer. If the mailbox rule applies, as in this scenario, this means
that Angie's acceptance was effective and a binding contract was formed. (Note that
some commonly-used purchase agreements state that the mailbox rule does not apply.)
All of these are typical tasks that an unlicensed real estate assistant may do, except:
a. negotiating counteroffers
b. maintaining transaction files
c. greeting visitors at open houses
d. answering phones - CORRECT ANSWER-a. negotiating counteroffers
Explanation: Real estate assistants are commonly responsible for maintaining files,
answering phones, and assisting with open houses. The task of negotiating a
counteroffer must be left to a licensee.
Which of these factors would tend to lower overall property values most in a single-
family residential neighborhood?
a. Construction of smaller and less valuable homes
b. Homogeneity in socioeconomic levels
c. Small changes in zoning laws
d. Purchase of existing homes by first-time buyers - CORRECT ANSWER-a.
Construction of smaller and less valuable homes
Explanation: The introduction of less valuable homes into a neighborhood tends to
lower the value of the more expensive homes.
A buyer makes and signs a written offer. The seller writes in one small change to the
offer and signs it. This document is known as:
a. an addendum
b. an amendment
c. a modification
d. a counteroffer - CORRECT ANSWER-d. a counteroffer
