California: Real Estate Principles
Practice Exam 2-A Verified Questions
And Elaborations
1 of 50 - Ensuring consumers are fully informed of all finance changes and aware of the
true annual interest rate are requirements of which regulation?
A. Article 7
B. RESPA
C. Truth in Lending
D. Uniform Settlement StatementVerified Elaborations C. Truth in Lending
2 of 50 - Patrice and Cornell are completing a sales contract with Mary, their agent. The
sales contract used at Mary's brokerage is preprinted. Mary, as a senior agent, has the
authority to waive one of the brokerage's fees. The fee is explained and preprinted on
the contract. Mary simply crosses it out, writes "waived," and both parties initial. Which
overrules the other? The preprinted or handwritten portions of the contract?
A. The preprinted portions of a contract always take precedence over handwritten.
B. It depends on the portion of the contract and the language involved.
C. Handwritten portions of real estate contracts always supersede preprinted forms.
D. None of the Above.Verified Elaborations C. Handwritten portions of real estate
contracts always supersede preprinted forms.
3 of 50 - Elliot has misrepresented himself by acting in the capacity of a real estate
salesperson without being licensed by the State of California. Elliot had his license
revoked three years ago for unethical actions. Elliot is guilty of what level of violation?
A. Misdemeanor
B. Felony
C. Held accountable in a possible civil suit.
D. Both B and CVerified Elaborations A. Misdemeanor
4 of 50 - The continuing education requirement in California is ____________hours
every __________ years.
A. 45, six
B. 40, five
C. 45, four
D. 6, fourVerified Elaborations C. 45, four
5 of 50 - What is the form of California State Real Estate licensing examinations?
, A. True or False Tests
B. Essay Tests
C. Multiple-Choice Tests
D. All of the AboveVerified Elaborations C. Multiple-Choice Tests
6 of 50 - Which of the following listing agreements is illegal in most states?
A. Open Listing
B. Exclusive Agency Listing
C. Net Listing
D. Agency Coupled with InterestVerified Elaborations C. Net Listing
7 of 50 - Agent Green is faced with an ethical dilemma. He was present when two
brokers were having an unethical discussion that could be considered collusion. He
doesn't know if he should act as if it never happened, or report the incident to his broker.
What steps should he employ when making this decision?
A. Concentrate on the pertinent facts of the case.
B. Think about who stands to gain and lose by his decision.
C. Explore different solutions to the problem.
D. All of the AboveVerified Elaborations D. All of the Above
8 of 50 - XYZ Corporation is interested in a piece of land for development. They are
selling off a bit of company stock to buy the property without any debt. Is XYZ's sale of
stock considered a form of financing?
A. It is actually considered a mortgage financing alternative.
B. NO, it is not considered a form of financing.
C. No, it is simply paying for land with cash proceeds.
D. None of the Above.Verified Elaborations A. It is actually considered a mortgage
financing alternative.
9 of 50 - Appraiser Jones appraises one-to-four unit residential properties, and non-
residential properties with a transaction value up to $250,000. What is this appraiser's
level? How many hours of appraiser education were completed?
A. Residential License, 150 hours
B. Certified Residential Real Estate Appraiser, 200 hours
C. Certified Residential Real Estate Appraiser, 180 hours
D. Certified General Real Estate Appraiser, 300 hoursVerified Elaborations B. Certified
Residential Real Estate Appraiser, 200 hours
10 of 50 - When can a violation that hasn't happened yet be a violation?
Practice Exam 2-A Verified Questions
And Elaborations
1 of 50 - Ensuring consumers are fully informed of all finance changes and aware of the
true annual interest rate are requirements of which regulation?
A. Article 7
B. RESPA
C. Truth in Lending
D. Uniform Settlement StatementVerified Elaborations C. Truth in Lending
2 of 50 - Patrice and Cornell are completing a sales contract with Mary, their agent. The
sales contract used at Mary's brokerage is preprinted. Mary, as a senior agent, has the
authority to waive one of the brokerage's fees. The fee is explained and preprinted on
the contract. Mary simply crosses it out, writes "waived," and both parties initial. Which
overrules the other? The preprinted or handwritten portions of the contract?
A. The preprinted portions of a contract always take precedence over handwritten.
B. It depends on the portion of the contract and the language involved.
C. Handwritten portions of real estate contracts always supersede preprinted forms.
D. None of the Above.Verified Elaborations C. Handwritten portions of real estate
contracts always supersede preprinted forms.
3 of 50 - Elliot has misrepresented himself by acting in the capacity of a real estate
salesperson without being licensed by the State of California. Elliot had his license
revoked three years ago for unethical actions. Elliot is guilty of what level of violation?
A. Misdemeanor
B. Felony
C. Held accountable in a possible civil suit.
D. Both B and CVerified Elaborations A. Misdemeanor
4 of 50 - The continuing education requirement in California is ____________hours
every __________ years.
A. 45, six
B. 40, five
C. 45, four
D. 6, fourVerified Elaborations C. 45, four
5 of 50 - What is the form of California State Real Estate licensing examinations?
, A. True or False Tests
B. Essay Tests
C. Multiple-Choice Tests
D. All of the AboveVerified Elaborations C. Multiple-Choice Tests
6 of 50 - Which of the following listing agreements is illegal in most states?
A. Open Listing
B. Exclusive Agency Listing
C. Net Listing
D. Agency Coupled with InterestVerified Elaborations C. Net Listing
7 of 50 - Agent Green is faced with an ethical dilemma. He was present when two
brokers were having an unethical discussion that could be considered collusion. He
doesn't know if he should act as if it never happened, or report the incident to his broker.
What steps should he employ when making this decision?
A. Concentrate on the pertinent facts of the case.
B. Think about who stands to gain and lose by his decision.
C. Explore different solutions to the problem.
D. All of the AboveVerified Elaborations D. All of the Above
8 of 50 - XYZ Corporation is interested in a piece of land for development. They are
selling off a bit of company stock to buy the property without any debt. Is XYZ's sale of
stock considered a form of financing?
A. It is actually considered a mortgage financing alternative.
B. NO, it is not considered a form of financing.
C. No, it is simply paying for land with cash proceeds.
D. None of the Above.Verified Elaborations A. It is actually considered a mortgage
financing alternative.
9 of 50 - Appraiser Jones appraises one-to-four unit residential properties, and non-
residential properties with a transaction value up to $250,000. What is this appraiser's
level? How many hours of appraiser education were completed?
A. Residential License, 150 hours
B. Certified Residential Real Estate Appraiser, 200 hours
C. Certified Residential Real Estate Appraiser, 180 hours
D. Certified General Real Estate Appraiser, 300 hoursVerified Elaborations B. Certified
Residential Real Estate Appraiser, 200 hours
10 of 50 - When can a violation that hasn't happened yet be a violation?
