RE Practice Exam Set #2 questions and
correct answers graded A+
"Complete remodel that's move-in ready!" is a phrase you'd most likely use when marketing a property
for a __________ investor. - correct answer ✔✔Fix-and-flip
You'd most likely use phrases like this when marketing a property for a fix-and-flip investor. (Buy-and-
hold)
Which of the following situations would qualify as "more than casual," and therefore require an agency
disclosure form to be signed? - correct answer ✔✔When a 'for sale by owner' seller asks a licensee
whether the licensee believes the house is overpriced
Reliance on the licensee's advice would be a tip off that a relationship has become more than casual.
(When a listing agent shows an unrepresented buyer their own listing)
According to the California real estate commissioner's regulations, which of these requirements are
correct if a broker chooses to use a method of keeping records other than columnar records? - correct
answer ✔✔They must be easy to trace; there is no requirement for quarterly audits, notarization, or
electronic form. (They must be notarized monthly)
Which of the following is a common problem with roof shingles? - correct answer ✔✔Discolored or
curling shingles mean roof repairs may be needed soon. (Water buildup and ice damming)
A property manager has just started working for a new property owner who owns a small apartment
building. The property manager learns that construction of a large apartment complex has been
approved one block away from his client's apartment building. What type of analysis would include this
information? - correct answer ✔✔A Competitive analysis includes investigation into competing
properties. (Market analysis)
What does a mortgage Real Estate Investment Trust invest in? - correct answer ✔✔Mortgage REITs don't
buy properties, but instead invest in RE debt, primarily commercial and residential mortgage-backed
securities. (RE Property)
, Which type of analysis performed by a property manager includes a look at the properties within the
market area that will be competing for tenants? - correct answer ✔✔Competitive analysis includes a
look at the properties within the market area that will be competing for tenants. Keep in mind that the
competitive analysis focuses on sizing up the competition. (Market analysis).
In what year was the Morgan Taxpayers' Bill of Rights enacted? - correct answer ✔✔1994 (2010)
_______ around pipes, vents, or other protrusions is a prime spot for roof damage or water leaks. -
correct answer ✔✔Flashing is a material that goes around pipes, vents, and other protrusions on a roof.
Improper installation or damage to the flashing can lead to water leaks and other roof damage. (Soffit)
Which type of contract allows a buyer to legally possess the property after all of the terms and
conditions have been met? - correct answer ✔✔Sale agreement allows a buyer to legally possess the
property after all of the terms and conditions have been met. (Mortgage loan commitment)
Savvy is a buyer's agent whose client made an offer on a property, but is having second thoughts. Savvy
tells her client that she'll ask the seller's agent for an extension on the inspection period "to gather more
bids," and use that time to look at other properties while avoiding losing out on the current property.
Savvy's client found a property she liked better, so they made an offer. The offer was accepted, so Savvy
contacted the first property's agent to terminate that offer. Is this wrong? - correct answer ✔✔Yes, she
did not treat the other party honestly, or act in good faith. Licensees can't let duties to their client blur
the duties of honesty and fairness to others. Savvy was deceptive when she told the seller's agent she
wanted to gather more bids. (Yes, she broke a contract)
Effective gross income ‒ ______________ = net operating income - correct answer ✔✔Operating
expenses (Debt services)
Per accessibility requirements, what is a doorway's minimum width? - correct answer ✔✔32 inches (36)
Use tax is owed to the state for the ____ of personal property - correct answer ✔✔Use (purchase)
An area 60 inches wide and located adjacent to accessible parking spaces is called a(n) ________. -
correct answer ✔✔Access aisle (Clearance)
correct answers graded A+
"Complete remodel that's move-in ready!" is a phrase you'd most likely use when marketing a property
for a __________ investor. - correct answer ✔✔Fix-and-flip
You'd most likely use phrases like this when marketing a property for a fix-and-flip investor. (Buy-and-
hold)
Which of the following situations would qualify as "more than casual," and therefore require an agency
disclosure form to be signed? - correct answer ✔✔When a 'for sale by owner' seller asks a licensee
whether the licensee believes the house is overpriced
Reliance on the licensee's advice would be a tip off that a relationship has become more than casual.
(When a listing agent shows an unrepresented buyer their own listing)
According to the California real estate commissioner's regulations, which of these requirements are
correct if a broker chooses to use a method of keeping records other than columnar records? - correct
answer ✔✔They must be easy to trace; there is no requirement for quarterly audits, notarization, or
electronic form. (They must be notarized monthly)
Which of the following is a common problem with roof shingles? - correct answer ✔✔Discolored or
curling shingles mean roof repairs may be needed soon. (Water buildup and ice damming)
A property manager has just started working for a new property owner who owns a small apartment
building. The property manager learns that construction of a large apartment complex has been
approved one block away from his client's apartment building. What type of analysis would include this
information? - correct answer ✔✔A Competitive analysis includes investigation into competing
properties. (Market analysis)
What does a mortgage Real Estate Investment Trust invest in? - correct answer ✔✔Mortgage REITs don't
buy properties, but instead invest in RE debt, primarily commercial and residential mortgage-backed
securities. (RE Property)
, Which type of analysis performed by a property manager includes a look at the properties within the
market area that will be competing for tenants? - correct answer ✔✔Competitive analysis includes a
look at the properties within the market area that will be competing for tenants. Keep in mind that the
competitive analysis focuses on sizing up the competition. (Market analysis).
In what year was the Morgan Taxpayers' Bill of Rights enacted? - correct answer ✔✔1994 (2010)
_______ around pipes, vents, or other protrusions is a prime spot for roof damage or water leaks. -
correct answer ✔✔Flashing is a material that goes around pipes, vents, and other protrusions on a roof.
Improper installation or damage to the flashing can lead to water leaks and other roof damage. (Soffit)
Which type of contract allows a buyer to legally possess the property after all of the terms and
conditions have been met? - correct answer ✔✔Sale agreement allows a buyer to legally possess the
property after all of the terms and conditions have been met. (Mortgage loan commitment)
Savvy is a buyer's agent whose client made an offer on a property, but is having second thoughts. Savvy
tells her client that she'll ask the seller's agent for an extension on the inspection period "to gather more
bids," and use that time to look at other properties while avoiding losing out on the current property.
Savvy's client found a property she liked better, so they made an offer. The offer was accepted, so Savvy
contacted the first property's agent to terminate that offer. Is this wrong? - correct answer ✔✔Yes, she
did not treat the other party honestly, or act in good faith. Licensees can't let duties to their client blur
the duties of honesty and fairness to others. Savvy was deceptive when she told the seller's agent she
wanted to gather more bids. (Yes, she broke a contract)
Effective gross income ‒ ______________ = net operating income - correct answer ✔✔Operating
expenses (Debt services)
Per accessibility requirements, what is a doorway's minimum width? - correct answer ✔✔32 inches (36)
Use tax is owed to the state for the ____ of personal property - correct answer ✔✔Use (purchase)
An area 60 inches wide and located adjacent to accessible parking spaces is called a(n) ________. -
correct answer ✔✔Access aisle (Clearance)
