California Real Estate Test 2

Question 1

Under the Alquist-Priolo Special Studies Act, a subdivider is required to disclose to potential purchasers:

Accepted Answer

earthquake fault lines

Answer

environmental issues

Answer

flood hazard zones.

Answer

the existence of nearby military  ordinances

Question 2

Under no circumstances may a real estate broker misrepresent a material fact to a buyer. If they do, the broker faces:

Accepted Answer

Any of the above.

Answer

disciplinary action by the California Bureau of Real Estate (CalBRE).

Answer

criminal action.

Answer

civil action

Question 3

It is least likely to be a violation of the Real Estate Law for a broker to pay a portion of the commission to a(n):

Accepted Answer

buyer or seller in the transaction.

Answer

unlicensed assistant.

Answer

a salesperson working for another broker.

Answer

unlicensed person who obtained the listing

Question 4

A Natural Hazard Disclosure Statement (NHD) needs to be given to a buyer when a natural hazard exists. Which of the following does not trigger delivery of an NHD?

Accepted Answer

A property that contains lead-based paint.

Answer

A property located in a very high fire hazard severity zone

Answer

A property located in an earthquake fault zone.

Answer

A property situated in a special flood hazard area.

Question 5

Earthquake fault zones need to be disclosed to prospective buyers of certain properties in California. Typically, earthquake fault zones are:

Accepted Answer

0.25 miles wide.

Answer

0.5 miles wide.

Answer

1 mile wide.

Answer

2.5 miles wide.

Question 6

A verbal agreement to sell real estate is enforceable when:

Accepted Answer

the buyer makes a down payment, takes possession and improves the property

Answer

the sale is for unimproved land

Answer

the purchase price is less than $900.

Answer

the parties have given an oath regarding the agreement

Question 7

Discriminatory acts in the sale or rental of residential housing accommodations based on sex, religion or national origin of the prospective tenant or buyer are:

Accepted Answer

Any of the above

Answer

unenforceable

Answer

illegal.

Answer

contrary to public policy.

Question 8

Which of the following state agencies is empowered to prevent acts of discrimination in housing accommodations in California due to race, color, sex, national origin or ancestry

Accepted Answer

the Department of Fair Employment and Housing.

Answer

the California Bureau of Real Estate (CalBRE).

Answer

the Unruh Department.

Answer

the Department of Housing and Urban Development (HUD)

Question 9

A Latino real estate agent working in a Hispanic neighborhood informed current owners they should move out because another ethnic group is moving into the area. This conduct is an example of all of the following, except:

Accepted Answer

a legal practice, but unethical.

Answer

blockbusting.

Answer

panic selling.

Answer

an illegal practice

Question 10

An agreement between two parties in which one party is granted the right to offer, sell, or distribute goods or services under a marketing plan described by the other party is commonly known as:

Accepted Answer

a franchise agreement.

Answer

a real property securities transaction.

Answer

a business opportunity transaction.

Answer

a personal securities investment.