California Real Estate Test 3

Question 1

The Transfer Disclosure Statement (TDS) form is required on:

Accepted Answer

the sale of a one-to-four unit residential property

Answer

the sale of a commercial building.

Answer

all foreclosure sales

Answer

all foreclosure sales

Question 2

If a seller refuses to fill out their section of the Transfer Disclosure Statement (TDS), the seller’s agent is advised to:

Accepted Answer

complete the listing agent’s portion of the TDS and deliver it to the buyer without the seller completing their section of the form.

Answer

give written notice to the buyer of their right to receive such a TDS.

Answer

accept the listing and obey the seller’s direction not to disclose any negative property issues.

Answer

obtain the buyer’s waiver of their right to receive a copy of the TDS

Question 3

The total positive balances due to all beneficiaries of a broker’s trust account need to at all times equal the account’s:

Accepted Answer

balance

Answer

shortage.

Answer

overage

Answer

fidelity bond coverage.

Question 4

Both a seller and a buyer ask the broker to give them the trust funds deposited by the buyer. How is the broker to respond?

Accepted Answer

Commence an interpleader action to resolve the dispute

Answer

Begin a surrender action.

Answer

Turn the funds over to the Real Estate Recovery Fund

Answer

Declare an equitable assignment of the funds

Question 5

Freddie, an unlicensed employee of a real estate broker, hands out door hangers and makes telephone solicitations seeking buyers and sellers. Under the real estate law, these activities are:

Accepted Answer

unlawful for both Freddie and his employing broker.

Answer

unethical for the broker who employs Freddie as an unlicensed employee.

Answer

commonly accepted behavior in the brokerage community.

Answer

unlawful for Freddie.

Question 6

An unlicensed assistant in a real estate office cannot:

Accepted Answer

discuss the price and term of a transaction with a principal.

Answer

sit at open houses conducted by the broker’s office.

Answer

type listings and sales contracts for licensees.

Answer

hand out brochures

Question 7

An abandonment can be noticed and carried out when a tenant stops paying rent and:

Accepted Answer

voluntarily vacates the leased premises with no intention to reoccupy.

Answer

voluntarily vacates the leased premises with an intention to reoccupy.

Answer

involuntarily vacates the leased premises with an intention to reoccupy.

Answer

involuntarily vacates the leased premises and leaves their possessions behind.

Question 8

A public walkway within a condominium community:

Accepted Answer

exists in a common area.

Answer

needs to be at least five feet wide.

Answer

must be made of concrete.

Answer

is maintained by individual owners.

Question 9

_____________activities refer to the concerted and continuing efforts taken by an agent to meet the objectives of their client under their employment agreement.

Accepted Answer

Due diligence

Answer

Conflict of interest

Answer

Unlicensed

Answer

Advance fee

Question 10

When a real estate license expires, how long is the agent’s grace period in which they may reinstate their license?

Accepted Answer

Two years

Answer

One year

Answer

Three years.

Answer

Four years