BSRV4601 Fundamentals of Real Estate: Exam 1 - Questions
with Correct Answers
100 questions
1. A licensee changes agencies. They must:
A. Ensure their licence details and supervision arrangements are updated with the REA
B. Do nothing
C. Stop all CPD
D. Surrender titles
Correct Answer: A. Ensure their licence details and supervision arrangements are updated
with the REA
Rationale: Register reflects current employer.
2. Carrying out real estate agency work without a licence is:
A. Permitted for small sales
B. Allowed if the seller agrees
C. An offence under the Real Estate Agents Act 2008
D. Only a breach of contract
Correct Answer: C. An offence under the Real Estate Agents Act 2008
Rationale: Unlicensed work is prohibited.
3. The public register of licensees allows consumers to:
A. Find property values
B. Search titles
C. Check whether a person is licensed and see disciplinary history
D. Lodge caveats
Correct Answer: C. Check whether a person is licensed and see disciplinary history
Rationale: Transparency.
4. The disciplinary regime focuses mainly on:
A. Maintaining professional standards and protecting the public
B. Punishing buyers
C. Raising revenue
D. Setting commission levels
Correct Answer: A. Maintaining professional standards and protecting the public
Rationale: Public protection.
5. The 'fit and proper person' requirement relates to a licensee's:
A. Physical fitness
B. Age only
C. Honesty, integrity and suitability to hold a licence
D. Sales figures
Correct Answer: C. Honesty, integrity and suitability to hold a licence
Rationale: Character and conduct.
6. Licensees must keep records of agency transactions mainly to:
A. Increase commission
B. Provide accountability and evidence of compliance
C. Hide information
D. Avoid audits
Correct Answer: B. Provide accountability and evidence of compliance
Rationale: Record keeping obligations.
,7. Licensees can appeal a decision of the Disciplinary Tribunal to the:
A. Disputes Tribunal
B. Commerce Commission
C. M■ori Land Court
D. High Court
Correct Answer: D. High Court
Rationale: Appeals go to the High Court.
8. If a salesperson makes an error while supervised, responsibility:
A. Lies only with the buyer
B. Can extend to the supervising agent or branch manager as well
C. Lies only with the REA
D. Disappears
Correct Answer: B. Can extend to the supervising agent or branch manager as well
Rationale: Supervision obligations.
9. Licensees must act competently, which includes:
A. Guessing the law
B. Relying only on intuition
C. Avoiding training
D. Having knowledge of relevant law and practice
Correct Answer: D. Having knowledge of relevant law and practice
Rationale: Competence obligation.
10. Licensees must ensure that any representations they make about a property are:
A. Exaggerated for marketing
B. Accurate and able to be substantiated
C. Based on guesses
D. Unrelated to facts
Correct Answer: B. Accurate and able to be substantiated
Rationale: Avoid misrepresentation.
11. Using undue pressure tactics like 'sign now or lose it forever' when untrue may breach:
A. The Building Act
B. The Privacy Act only
C. The Land Transfer Act
D. The Rules and the Fair Trading Act
Correct Answer: D. The Rules and the Fair Trading Act
Rationale: Pressure and misleading conduct.
12. A licensee must not offer financial or legal advice:
A. Ever
B. Unless they are qualified to do so
C. Only to vendors
D. Only to friends
Correct Answer: B. Unless they are qualified to do so
Rationale: Stay within competence.
, 13. Rules about client care require licensees to provide clients with information about:
A. Other clients' private details
B. The licensee's personal finances
C. The agency's complaints process
D. Buyers' bank balances
Correct Answer: C. The agency's complaints process
Rationale: Required disclosure.
14. A licensee who believes a vendor lacks capacity to sign an agreement should:
A. Proceed quickly
B. Sign on their behalf
C. Not proceed until capacity or proper authority is established
D. Ignore the concern
Correct Answer: C. Not proceed until capacity or proper authority is established
Rationale: Valid consent.
15. A licensee must not engage in discrimination, harassment or:
A. Open homes
B. Price negotiations
C. Misleading or deceptive conduct
D. Auctions
Correct Answer: C. Misleading or deceptive conduct
Rationale: Prohibited conduct.
16. Licensees should keep up to date with changes in law because:
A. It is optional
B. Laws never change
C. Only lawyers need to
D. Competence requires current knowledge
Correct Answer: D. Competence requires current knowledge
Rationale: Professional duty.
17. Buyers must be given the approved residential property sale and purchase guide:
A. After settlement
B. Only at auction
C. Before they sign a sale and purchase agreement
D. Only in writing after deposit
Correct Answer: C. Before they sign a sale and purchase agreement
Rationale: Consumer information.
18. Licensees should explain GST implications of commission to vendors because:
A. Commission is usually subject to GST
B. GST never applies
C. Buyers pay commission
D. It is irrelevant
Correct Answer: A. Commission is usually subject to GST
Rationale: Cost clarity.
with Correct Answers
100 questions
1. A licensee changes agencies. They must:
A. Ensure their licence details and supervision arrangements are updated with the REA
B. Do nothing
C. Stop all CPD
D. Surrender titles
Correct Answer: A. Ensure their licence details and supervision arrangements are updated
with the REA
Rationale: Register reflects current employer.
2. Carrying out real estate agency work without a licence is:
A. Permitted for small sales
B. Allowed if the seller agrees
C. An offence under the Real Estate Agents Act 2008
D. Only a breach of contract
Correct Answer: C. An offence under the Real Estate Agents Act 2008
Rationale: Unlicensed work is prohibited.
3. The public register of licensees allows consumers to:
A. Find property values
B. Search titles
C. Check whether a person is licensed and see disciplinary history
D. Lodge caveats
Correct Answer: C. Check whether a person is licensed and see disciplinary history
Rationale: Transparency.
4. The disciplinary regime focuses mainly on:
A. Maintaining professional standards and protecting the public
B. Punishing buyers
C. Raising revenue
D. Setting commission levels
Correct Answer: A. Maintaining professional standards and protecting the public
Rationale: Public protection.
5. The 'fit and proper person' requirement relates to a licensee's:
A. Physical fitness
B. Age only
C. Honesty, integrity and suitability to hold a licence
D. Sales figures
Correct Answer: C. Honesty, integrity and suitability to hold a licence
Rationale: Character and conduct.
6. Licensees must keep records of agency transactions mainly to:
A. Increase commission
B. Provide accountability and evidence of compliance
C. Hide information
D. Avoid audits
Correct Answer: B. Provide accountability and evidence of compliance
Rationale: Record keeping obligations.
,7. Licensees can appeal a decision of the Disciplinary Tribunal to the:
A. Disputes Tribunal
B. Commerce Commission
C. M■ori Land Court
D. High Court
Correct Answer: D. High Court
Rationale: Appeals go to the High Court.
8. If a salesperson makes an error while supervised, responsibility:
A. Lies only with the buyer
B. Can extend to the supervising agent or branch manager as well
C. Lies only with the REA
D. Disappears
Correct Answer: B. Can extend to the supervising agent or branch manager as well
Rationale: Supervision obligations.
9. Licensees must act competently, which includes:
A. Guessing the law
B. Relying only on intuition
C. Avoiding training
D. Having knowledge of relevant law and practice
Correct Answer: D. Having knowledge of relevant law and practice
Rationale: Competence obligation.
10. Licensees must ensure that any representations they make about a property are:
A. Exaggerated for marketing
B. Accurate and able to be substantiated
C. Based on guesses
D. Unrelated to facts
Correct Answer: B. Accurate and able to be substantiated
Rationale: Avoid misrepresentation.
11. Using undue pressure tactics like 'sign now or lose it forever' when untrue may breach:
A. The Building Act
B. The Privacy Act only
C. The Land Transfer Act
D. The Rules and the Fair Trading Act
Correct Answer: D. The Rules and the Fair Trading Act
Rationale: Pressure and misleading conduct.
12. A licensee must not offer financial or legal advice:
A. Ever
B. Unless they are qualified to do so
C. Only to vendors
D. Only to friends
Correct Answer: B. Unless they are qualified to do so
Rationale: Stay within competence.
, 13. Rules about client care require licensees to provide clients with information about:
A. Other clients' private details
B. The licensee's personal finances
C. The agency's complaints process
D. Buyers' bank balances
Correct Answer: C. The agency's complaints process
Rationale: Required disclosure.
14. A licensee who believes a vendor lacks capacity to sign an agreement should:
A. Proceed quickly
B. Sign on their behalf
C. Not proceed until capacity or proper authority is established
D. Ignore the concern
Correct Answer: C. Not proceed until capacity or proper authority is established
Rationale: Valid consent.
15. A licensee must not engage in discrimination, harassment or:
A. Open homes
B. Price negotiations
C. Misleading or deceptive conduct
D. Auctions
Correct Answer: C. Misleading or deceptive conduct
Rationale: Prohibited conduct.
16. Licensees should keep up to date with changes in law because:
A. It is optional
B. Laws never change
C. Only lawyers need to
D. Competence requires current knowledge
Correct Answer: D. Competence requires current knowledge
Rationale: Professional duty.
17. Buyers must be given the approved residential property sale and purchase guide:
A. After settlement
B. Only at auction
C. Before they sign a sale and purchase agreement
D. Only in writing after deposit
Correct Answer: C. Before they sign a sale and purchase agreement
Rationale: Consumer information.
18. Licensees should explain GST implications of commission to vendors because:
A. Commission is usually subject to GST
B. GST never applies
C. Buyers pay commission
D. It is irrelevant
Correct Answer: A. Commission is usually subject to GST
Rationale: Cost clarity.
