CA Real Estate Real Estate Practice and Ethics

Question 1

Under California law, how long must a real estate broker retain transaction records?

Accepted Answer

3 years

Answer

1 year

Answer

2 years

Answer

5 years

Question 2

Which term describes the illegal practice of directing buyers toward or away from neighborhoods based on race or ethnicity?

Accepted Answer

Steering

Answer

Blockbusting

Answer

Redlining

Answer

Churning

Question 3

A licensee who has a personal interest in a transaction MUST:

Accepted Answer

Disclose the interest to all parties

Answer

Withdraw from the transaction immediately

Answer

Charge a reduced commission

Answer

Obtain DRE approval before proceeding

Question 4

What is 'blockbusting' in real estate?

Accepted Answer

Inducing owners to sell by exploiting fears about changing neighborhood demographics

Answer

Buying multiple properties simultaneously

Answer

Redeveloping an entire city block

Answer

Subdividing a large property into many smaller lots

Question 5

Under California real estate law, a listing agent owes which duties to the seller?

Accepted Answer

Loyalty, disclosure, confidentiality, diligence, and accounting

Answer

Only honesty and fair dealing

Answer

Only the duty to present all offers

Answer

Loyalty only, as the seller is the principal

Question 6

What must a California real estate licensee provide to buyers and sellers at the first substantive contact?

Accepted Answer

The Disclosure Regarding Real Estate Agency Relationships form

Answer

A purchase agreement

Answer

A home inspection report

Answer

An appraisal of the property