Free CA Real Estate Transfer of Property Questions and Answers

Question 1

Agent advice to owners on showing their home would NOT include

Accepted Answer

instructions to be present so they can volunteer information

Answer

Real estate agents typically advise owners *not* to be present during showings. Owners tend to volunteer too much information, which can inadvertently reveal weaknesses in their negotiating position or deter potential buyers. The agent's role is to control the showing experience and information flow to best represent the seller's interests, making the property more appealing without unnecessary disclosures.

Question 2

A broker showed African American prospective buyers homes in African American and racially mixed neighborhoods. He would show African American prospects homes in predominantly Caucasian areas only if the prospects specifically requested to see homes in those areas. The broker's action would be described as

Accepted Answer

all of these

Answer

The broker's actions constitute 'steering,' which is the illegal practice of guiding prospective buyers to or away from certain neighborhoods based on their race or other protected characteristics. This practice is a violation of fair housing laws, making it illegal. Furthermore, it is unethical as it perpetuates discrimination and limits housing choices, thus all options accurately describe the broker's conduct.

Question 3

When you ask prospective buyers if they prefer June 1, July 1, or August 1 for possession, what type of closing technique are you using

Accepted Answer

positive choice

Answer

A positive choice closing technique offers the buyer a choice between two or more desirable options, assuming they have already decided to purchase. By asking about preferred possession dates (June 1, July 1, or August 1), the agent bypasses the 'if you buy' question and moves directly to 'when you buy.' This subtly encourages the buyer to commit by focusing on a minor detail of the transaction, making the purchase seem like a foregone conclusion.

Question 4

Property managers can be protected against receiving no fees when managing a vacant property they are unable to rent by a

Accepted Answer

minimum fee

Answer

A minimum fee clause in a property management agreement protects the property manager by guaranteeing a base payment even if the property remains vacant and unrented. This ensures the manager is compensated for their time and effort in marketing and attempting to lease the property, regardless of whether a tenant is secured. Without such a clause, the manager might receive no income for their work on a vacant unit.

Question 5

The principle reason owners try to sell their homes without an agent is?

Accepted Answer

to save the commission

Answer

The primary motivation for owners attempting to sell their homes without a real estate agent (For Sale By Owner or FSBO) is almost always to avoid paying the commission typically charged by agents. This commission, often a significant percentage of the sale price, represents a substantial cost that sellers hope to save and keep for themselves. While other factors might play a role, cost savings is the dominant reason.

CA Real Estate - California Real Estate Exam Practice Test

CA Real Estate - California Real Estate Exam Practice Test

Free CA Real Estate Transfer of Property Questions and Answers