D. If the buyer rejects the first counteroffer, the seller can accept the first offer. C. Your plan for finding the buyer a home. Which of these actions might have caused their upset? Does not need to be familiar with office policy. Loan terms are from 15 to 25 years. \text { Annual rework cost } & 34,679 \\ 7 of 10 Which of the following is not a national real estate trade organization? California: Real Estate Practice Chapter 18 Quiz with no answers. B. 8 of 12 Fannie Mae does all of the following activities except which? Hes no longer interested in seeing the inside and Marge agrees. What should Bill do? 2 of 10 Which is not a true statement about the Americans with Disabilities Act? 6 of 10 Which of the following is not a true statement? Why or why not? 4- Why is it important to talk to the sellers about the buyers? 6 of 10 Which booklet is not part of the Combined Hazards Book? 12,800 square feet 90- Marsha has been keeping track of the effectiveness of her advertising campaigns. 3- For whom do property tax exemptions exist and for how much? D. The casement windows have broken seals. This mortgage type is popular among the elderly. D. Property evaluations from other agents have valuable information for sellers. Buyer Amanda asks if she can measure the windows to see if her current drapes will fit. 2. 3- When making your presentation, what topics should you cover? Bob should not have presented the offer after the property was under contract to another buyer. plane rides is 0.5 and the price elasticity of demand for train rides is 0.2. B. B. A. of a train ride will leave the quantity demanded of train rides unchanged. He made $150,000 of improvements during the three years he lived in it before he sold it. A. 2- When looking at homes currently for sale, what is important for a prospective seller to know about asking price? For purposes of federal income tax, which statement is true? 8- Why is it important to have a written prospecting plan? They agree on a price and both parties execute the contract. 5 of 10 What would be the least effective way to get to know your buyers needs? A secondary bid for a property that is less than the first offer How can you prepare your sellers for receiving offers? 3- Differentiate between mortgage brokers and mortgage bankers. 1 of 12 California law requires that a licensee acting as a loan broker keep the Mortgage Loan Disclosure Statement on file for how long? 4- Describe a reverse annuity mortgage. B. 1- What is a competitive market analysis? D. Discrimination on the basis of race is strictly prohibited, meaning no exceptions whatsoever. 8- What does the Water Heater Statement of Compliance address? Allows quick repayment of the loan through accelerated payments. 34- Sarah is an employee and Ken is an independent contractor at Kerns Realty. 3 of 10 How long must trust account records be kept? How would you classify this essay (high or low comedy)? Making a Best Offer | eBay Maximize the return to the property management firm. 8- Which section of the purchase agreement does not apply directly to the buyers and sellers? A. 4- What items are not covered by any title insurance policy? When You Should Make a Purchase Offer - The Balance What is the major difference between an employee and an independent contractor? \text { Annual warranty cost } & 1,546,000 \\ Buyers looking at FSBO homes are usually looking for a bargain. 18 of 50 The listing type that assures a broker that he or she will receive compensation no matter who procures the buyer is what kind of agreement? 4- Describe how a property manager can receive his or her fees. Here are the steps to follow to make an offer to purchase: Step 1. California: Real Estate Practice Ch7 Quiz with no answers. 4- What do Fannie Mae and Ginnie Mae do that Freddie Mac does not? The buyers have been pre-qualified by a lender. A net listing is illegal in all states. D. Goals must be realistic if you hope to accomplish them. A. D. A basis of $140,000 and no taxable gain. 2- What is important to remember about multiple offers? 45- Kirk wants to get an FHA loan. If the terms offered by the Buyer are acceptable to the Seller, the Seller signs the Offer Form to begin the sale. A. Gross income must be based on production. 11- Broker Jill has an agreement with seller Alice that says Jill will receive compensation if anyone except Alice sells Alices home, what kind of agreement is this? Give housing choices to the widest range of people. A counteroffer by a seller to a buyer turns the seller from offeree to offeror. B. 5- What actions can the sellers take regarding the purchase offer? Access to over 100 million course-specific study resources, 24/7 help from Expert Tutors on 140+ subjects, Full access to over 1 million Textbook Solutions. Jim should not use this flier as a: 94- Sellers agent Pam was unaware of the fact that the heating system of a home she had listed was defective. 8 of 10 Which disclosure is required by the Real Estate Settlement Procedures Act? A. Salesperson Harry can solicit his own listings. 7 of 10 Which document shows the assets and liabilities of a business? C. Clearly written contractor agreement must exist. 10- What is the right to rescind and what is not covered by this rule? Refusing to make loans based on the racial composition of a neighborhood is called. 98- Grant moves into his new office space while he awaits the completion of the negotiations of the lease terms. 3 of 12 All of the following are primary mortgage market lenders except which? The agent should, Something of value given to another as an inducement for entering into a contract is termed, To emphasize the timely performance as an essential part of the contract, a contract would use the words. What property type will be his specialty? 44 of 50 Fair Housing laws are designed to: A. A. John offers weekly training seminars. D. Must start out as a part-time employee. Rule 21 The offer that has the shortest closing date, Answer: B- The offer with the highest price that is the most likely to close. 1- What is the most important factor for a prospective homebuyer to consider in the decision to purchase? B. Answer: A- Write a contingent counteroffer, Which of the following statements best describes a backup offer? Executor Fred calls Agent Tom to list a vacant tract of land, instructing him to list the land for $700,000. Tommy asks his real estate agent to prepare a lease agreement instead of a purchase agreement now that he has decided to rent rather than buy. 2 of 12 Which of the following statements is not true about the Federal Reserve? Skip the activity report for that week. 5 of 10 Which of these is not a true statement? D. All repairs must be in compliance with existing building codes. C. Alice is getting a conventional loan and making a 15% down payment. 1- What do you need to check if you want to conduct a door-to-door canvass in a neighborhood? D. Employee status versus independent contractor status is an IRS issue. Elaine parks across the street from the home and Mike is disappointed by what he sees. How does ALTA-R differ from ALTA? Whoever brings the buyer will get the commission. California: Real Estate Practice Chapter 16 Quiz with no answers, 1 of 10 According to FIRPTA, what percent would a buyer who is buying the property as a personal residence need to withhold when purchasing a $200,000 home from a foreigner?. California: Real Estate Practice Ch9 Quiz with no answers. He succeeds in setting up an appointment to meet with the caller. 57- Under federal income tax law, the basis for a personal residence is which of the following: 27 of 50 Tim and Sue have obtained a buydown loan on their newly built home. Answer: B- Licensee Fred should take the offer to the seller and determine if the escrow deposit is acceptable. 6- What is the Real Estate Transfer Disclosure Statement and who is responsible for providing it? 12 of 50 The manager of a large hotel refuses to rent a room to a blind person with a guide dog. Underline each word that should be capitalized in the following items. This is not true of which duty? 1 of 10 All of the following are good newspaper sections to read for prospecting except which? 9 of 10 All of these might be a buying signal except which? 4 of 10 Timeshare buyers have the right to rescind a transaction within what timeframe after signing the purchase contract? Name and define the two forms of advertising. Nam ri, Explore over 16 million step-by-step answers from our library, m ipsum dolor sit amet, consectetur adipiscing elit. B. 7- How can a builder help you generate leads? How to Write a Purchase Agreement? 1 of 10 Which of the following types of agency is not allowed in California? Availability of multiple listing service, C. Broker-paid advertising and promotion, D. Assistance with filling out disclosures. $5,500 the first year, plus a maximum 2% increase in market value per year, B. 70- Which of these items would be a credit to the buyer on the settlement statement? Make no recommendations and let the sellers decide on their own. A. A. A broker may advertise that he or she is an escrow agent. Nam risus ante, dapibus a molestie consequat, ultrices ac magna. A. 7 of 11 In which of the following types of loans is the payment allocated only to interest? 37 of 50 Which of the following economic characteristics is true? In order to supplement their fixed income, the Sandlers receive monthly checks from their bank. Terminate the first contract and accept the higher offer. 11 of 12 ECOA requires that a lender send a denial notice within: 12 of 12 The amount of debt, time and method of payment, interest rate and other loan terms are part of the: 1- What is the role of the Fed? Real Estate Transfer Disclosure Statement, C. Natural Hazard Disclosure Statement. A counteroffer represents a rejection of an offer. Harry has some buyers that he believes are ready to make an offer. 41 of 50 What was the important ruling in Jones v. Mayer? Ask the buyers to sign a real estate transfer disclosure statement. 9 of 10 Which of the following items would not usually be included in a presentation manual for buyers? 17 of 50 Kathy is a personal assistant at Action Realty. Listen carefully to everything your prospects say and repeat some specifics back at appropriate times so that they know you have heard what they said. A. 6 of 10 Which of the following is not an item that a buyer usually pays at closing? 52- Which statement is true about a listing contract? 1.555.555.555 | frontier airlines crash history. buyer randy makes an offer to purchase - 740alvarado.com 59- Which of the following is a sellers request that an agent cannot honor? Three days later, the agent shows the property; at that time the customer reveals her financial abilities and motivation. Download an offer to purchase document and refer to the annotated Agreement of Purchase and Sale to help you fill it out. 58- Mortgage lenders are prohibited from discriminating in giving credit to prospective borrowers based on race, color, religion, national origin, sex, marital status, age or dependency on public assistance under which law or regulation? 2 of 10 Which of these is not a good technique to get the name of a caller who is reluctant to give you that information? C. Pam should recommend that they counteroffer with a price halfway between asking and offering price. A. I think theyre asking a fair price., C. What do you think would be a fair price?, D. The comps say that this price is right on target.. B. D. Once the offer or counteroffer is accepted and the offeror has been notified, a legal contract is formed. Plastic dishes last a long time because they are unbreakable. 81- Jake has decided to specialize in working with clients who purchase schools. 6- List four sections of an Internet website that might be of particular appeal to prospective buyers. What type of relationship best describes how a real estate broker represents her principal in the sale of the principal's single-family home? Nam risus ante, dapibus a molestie consequat, ultrices ac magna. 43 Offer To Purchase Real Estate Templates (& Letters) 74- Which statement is not true about an agency relationship? 10 of 10 If an agent does not comply with the requirement of conducting a visual inspection of a property, how long after possession does the buyer have to file a suit? D. The appraised value prior to sale If a person feels like he or she has been discriminated against, how long does that person have to file a complaint? B. A. What California Fair Housing law has the manager violated? lumberton man killed; guggenheim annuity rates. The seller must file a bill of sale with the county clerk. 5- What should a good management contract contain? 21 of 50 Once signed, escrow instructions can be changed only by: 22 of 50 What is one of the major objectives of professional property management? What kind of mortgage might they get? Negotiate agreements regarding commission structuring. 1- The amount that a seller takes away from a sale is termed: 2- Which of the following best describes prospecting? B. 4 of 10 Which of the following would be the least desirable phone handling technique? 9 of 10 An agent must give a copy of the listing agreement to the sellers: A. D. The owner has 45 days to file a change in ownership statement. C. Once you set a goal you should never change it. He succeeds in setting up an appointment to meet with the caller. A. whether the property's buildings encroach on neighboring land, A right that goes along with the ownership of real property is, Plants and trees cultivated for harvest best describes. C. It creates an agency relationship. 8 of 10 A lease that has no time limit is an: 9 of 10 Which of the following represents an intangible business asset? What would we call Hannah? 8. D. Administers special assistance programs. 82- What is the minimum period of time over which the owner of an apartment building can depreciate the improvements? D. Chris is a buyer's agent. \text { Annual testing cost } & 543,000 \\ Retired persons are a good source of neighborhood information. B. The steps to make an offer to purchase | DuProprio Checking your browser. 8- When studying the characteristics of an area in which an investment property is located, what factors should the investor look at carefully? 69- According to ECOA, lenders cannot discriminate against potential borrowers on the basis of all but which of the following? The adjusted cost basis of the first home was $140,000. 1 of 10 Which of these statements is not true? The offer with the highest price that is the most likely to close Answer: C- A secondary bid for a property that the seller will accept if the first offer fails. 11- Greg and Joyce purchased a home from the builder who offered to pay $5,000 at closing as an incentive to get them to buy. D. Allows viewing access to strangers. What would be a good approach for Pam to take? 7 of 10 Which of these is not a good thing to do when writing a counteroffer? They will have a number of new expenses as a result of this purchase. A. 1. 80 feet of frontage x 160 feet of depth = 12,800 square feet allowed by local ordinance. 3- An agents fiduciary responsibilities to a client usually end when the transaction closes. Agent Sally tries to match her clients with neighborhoods that have similar cultural and racial backgrounds. 58- Mortgage lenders are prohibited from discriminating in giving credit to prospective borrowers based on race, color, religion, national origin, sex, marital status, age or dependency on public assistance under which law or regulation? For what type of loan is the borrower applying? 3- What is the difference between CLTA and ALTA policies? buyer randy makes an offer to purchase. Which is a true statement? A. C. Payments will not be enough to retire the loan. Allows the agent to determine community market trends. Copyright - CaliforniaRealEstateExamAnswers.com - 2023 -, >Real Estate Practice Class Questions with no Answers for Preview (ALL R.E. C. Bake muffins or cinnamon rolls to create a homey feel. B. 1- What are the three important considerations for a good property investment? 4 of 11 Which of these is also called a contract for deed? 5- What does the safety clause in the listing agreement do? On what amount will he pay capital gains tax? Suggest that the buyer look at a different house. 2- Name one advantage and one disadvantage of telephone contacts. B. A. I will complete the GRI certification in the next four years. 11 of 50 Jake and Janet are required to pay 4 points on the $80,000 loan they are getting. Which of the following items can Matt not add to the original cost when doing the computation? C. Payments will not be enough to retire the loan. 15 of 50 Agent Will has had a listing with the Bryants for 6 weeks. 29- Which of the following is not a good direct mail technique? The broker will owe fiduciary responsibilities to the seller as well as the buyer. She tells them that this action could decrease their property values. B. 8 of 10 Which of the following circumstances would concern you about working for Broker John? They called Wills office and told the secretary they are upset and need to speak with Will. 35 of 50 Agent John just listed a home in a mid-range priced neighborhood. California: Real Estate Practice Ch10 Quiz with no answers. Making An Offer To Buy A Business - 6 Key Considerations - Forbes D. Is best left to experienced brokers. This is not true of which duty? Seller Stuart calls buyer Bruce, stating that he has changed his mind and now has no intention, under any circumstance, of coming to the closing table to complete the transaction set forth in their executed contract. C. Real Estate Settlement and Procedures Act. 1- What is important to know about unlicensed real estate assistants? C. I will open my own office within nine years. Give the prospects a black copy of a purchase agreement to look over. Smoke Detector Statement of Compliance, D. Sellers Affidavit of Nonforeign Status and/or California Withholding Exemption. Next, determine the amount to apply toward the loan origination fee and discount points; $185,000 - $2,000 - $14,500 = $168,500. Write a contingent counteroffer. C. Write and sign commission checks to salespersons. 5 of 10 When all members have unlimited liability for debts and obligations of the group, the organization is a: 6 of 10 What is the foremost reason people invest in property? This would be the maximum the purchaser would be permitted to borrow. Now, calculate the origination fee; $168,500 x 0.02 = $3,370. It never was effective since Sam had not notified Mary of the acceptance. C. The date the lender receives her application. Installation of central air conditioning, D. Addition of a tenant laundry facility. What law creates an automatic lien on a commercial property, subject to the listing agreement? 5- What does the safety clause in the listing agreement do? 2- What are some tax benefits associated with investing? Recommend a counteroffer back to list price. 8- When does a purchase offer become a legal contract? 5 of 10 Which of the following is not a source of information for professional ethics codes? Courtesy of RealtyPact. The borrower gives the lender a note and a mortgage in exchange for the funds. B. What kinds of things should he be looking for? 33 of 50 Sal bought a personal residence for $150,000. D. Meet with the buyers lender to ensure theyre getting a good deal. C. Greg has violated the duty of confidentiality to Kim. D. The advertiser must prove he was grandfathered in as a licensee. 101- Which type of loan typically carries the most loan points? B. 5- How do life insurance companies get involved in the investment market? 10- Whats the difference between a lease purchase and a lease option? A. Lead-based paint was used in the home. Tommy Gee encounters an owner of a property who has no equity in the home because of a sharp decline in market values. 6 of 10 How often can a tenant call his or her own professional to make repairs and then deduct the amount from the next months rent? 10 of 10 Which of these individuals could not act as an escrow agent without an escrow license? Sending cards and newsletters is a good way to keep in contact with clients and prospects. A. C. Giving buyers your opinion of what works best for them. D. Similar expired listings that didnt sell. There is nothing that can offset this problem. Broker Bob has a listing with Sam Seller and calls Sam to tell him Bob has received an offer from a buyer. 8 of 10 An association of two or more people who combine financial resources to achieve investment objectives is: 9 of 10 Which statement is not true about a Real Estate Investment Trust? B. Newsletters can be a very effective advertising forum for niche marketers. 15- Karen and Al obtained a 30-year fixed-rate, fully amortized loan when they purchased their home. B. Preparation of an appraisal of the property, D. Help with required forms and disclosures. Broker Ashley has been working for a seller for the past seven months. B. Pam is not liable since it was summer and the heating problem was not obvious. What should Bob do? D. John expects his agents to spend 5 hours a week on unsupervised telephone duty. A. 12- What are grant programs typically used for? D. The monthly payments increase overtime. D. Is permissible in amounts under $50. 2. 8- Why should agent Grace give her client a Combined Hazards Book? 65- Which of the following items is usually not prorated at closing? Seeking buyers for your listings B. C. Mortgage bankers are a large source of residential loans in California. 42 of 50 Alex makes an offer to purchase one of Bills listings. 7- Name three benefits of listing a home with an agent that you could share with sellers. 8- When considering making a loan to a borrower, which of the following factors would probably exert the least amount of influence on the lender? D. Supply cannot be moved to a high demand area. 3 of 10 Jake has received two offers on one of his listings. A. \text { Annual cost of scrap materials } & 286,000 \\ Needs a license to perform activities that are not strictly administrative in nature. C. An assistant can keep track of the progress of activities during escrow. 49 of 50 Greg and Wanda Sandler purchased their home 35 years ago and it was paid off at the end of thirty years. 2- Name one advantage and one disadvantage of telephone contacts. A broker may require licensees to carry high levels of automobile insurance. 2 of 10 Offering a buyer more than one option and having him or her choose is using what kind of closing technique? 9- What is the basic purpose of Truth in Lending Regulation Z? 1 of 10 Which of the following actions by an agent would most probably upset the sellers? Information on current loan programs. 5 of 10 You should try to attach a rider strip to your For Sale sign that has: 6 of 10 If there is no interest in the property on a given week, the agent should: A. A. D. Placing a classified ad in the weekend paper. Which of the following is Kirk himself not likely to do during the application process? A buyer has obtained a mortgage in which the LTV is 95% of the first $40,000 of the sale price and 90% of the remainder of the sale price. 6- What is the main reason sellers choose to sell their property without an agents help? This broker is guilty of what prohibited activity? C. The court has ordered the transfer of Sally Greens home to her friend Penny Jacobs as part of the settlement of Sallys estate. C. Mike has been late with his rent payments seven times in the past year, D. He had a serious physical altercation with his downstairs neighbor. 9 of 10 Which of these words or phrases might be considered discriminatory when used in advertising? Virtual tours are a very expensive marketing tool to use. B. 3- When handling a telephone inquiry, why should you limit the amount of information you give out about the property? Now, calculate the amount by which the remaining $145,000 is reduced; $145,000 x 0.10 = $14,500 (100% - 90% = 10% not covered). Give $250 to the buyer and $250 to the seller. D. The property is in a state fire responsibility area. The loan value is based on the appraised value, not the sale price. What should Tom do? 3- For whom do property tax exemptions exist and for how much? He must withdraw his representation of one of the parties. Point out that the roof is not leaking despite its age. A rental condominium for a recreational vehicle. B. I will practice my listing presentations. B. Is there a contract between the buyer and seller? 7- What are the capital gains exclusions associated with the sale of a personal residence? Her asking price was $560,000 and the property sold for $575,000. It is determined by who pays the compensation. \end{array} 7 of 10 If a broker receives a deposit check with a purchase contract, which of these is he not allowed to do?