T/F: The two things real estate licensees have to sell are residential and commercial properties
The primary responsibility of a real estate licensee is:
Strength or weakness in a marketplace is determined by
The perceived value of a property
In California, theo nly person authorized to be compensated directly by a client for selling, buying or leasing real property is:
T/F: The goal of every licensee is to earn a profit for providing service and protect the interest of buyers and sellers
T/F: Failure to communicate effectively with clients, customers and each other is the biggest shortcoming among real estate professionals
The two things a licensee has to sell are
The Multiple Listing Service and Advertising
In a brokerage office of more than one hundred licensee there is/are:
Only one real estate agent
T/F: Financing and its availability has little or no effect on real estate markets
Identical properties are often found
T/F: Most real estate professionals begin their real estate career by listing and selling residential estate
In general terms and independent contractor is one who is
Hired to perform a certain act or service
T/F: If a licensee in one office sells the listing of a licensee from the same company buy in a different city the broker is a single agent.
The Multiple Listing Service benefits
All of the above: FSBO's, buyers and sellers, licensees
T/F: Commercial investment real estate requires specializing training
T/F: On-site sales of new homes never involves an employer/employee relationship with the broker
The knowledge required to obtain a real estate license is all that is needed to be a competent professional in the area of
None of the above: industrial property sales, commercial property sales, residential property sales
The IRS requires an Independent Contractor to contribute what percentage of earned income to social security (FICA)?
The professional designation, CRB stands of
Certified Real Estate Brokerage Manager
A licensee working as an "on-site" salesperson would likely be:
In order to qualify as an "adults only" community 80 percent of the residents must be:
The basis for discipling a REALTOR under the Code of Ethics may be A. Any of the seventeen articles B. C. The preamble of the Code of Ethics D.
A. Any of the seventeen articles
T/F: Ethics is a system of moral principles
T/F: Members of the National Association of Real Estate Brokers are called "Realists"
The REALTORS Code of Ethics is based on: A. The concept of "let the buyer beware" B. The Business and Professions Code C. The Commissioner's Regulations D. The concept of service to the public
D. The concept of service to the public
Blockbusting, Redlining and Steering were made illegal by: A. The Civil Rights Act of 1866 B. The Dred Scott Decision C. The Commissioner's Regulations D. The Civil Rights Act of 1968
D. The Civil Rights Act of 1968
The earliest US Supreme Court decision that dealt with slavery was A. The Missouri Compromise B. The Dred Scott Decision C. Jones vs. Mayer D. The Civil Rights Act of 1866
B. The Dred Scott Decision
Licensees bound by the duties imposed by the REALTOR Code of Ethics include A. All licensees B. Residential licensees C. All REALTORS D. Commercial licenses
T/F: There are four major categories of articles in the NAR Code of Ethics
T/F: The NAR Code of Ethics was build on the concept of the Golden Rule
A Transfer Disclosure Statement delivered to a buyer by mail gives that buyer A. Five days to terminate the purchase agreement B. Four days to terminate the purchase agreement C. Three days to terminate the purchase agreement D. Two days to terminate the purchase agreement
A. Five days to terminate the purchase agreement
Agency disclosures to a buyer or a seller must occur at the earliest practicable moment A. Prior to closing the escrow B. Prior to entering the listing in the MLS C. Prior to signing either contract D. Prior to any inspections
C. Prior to signing either contract
As a licensee representing your broker you have a fiduciary duty to the A. Third party B. Principal C. Buyer D. FSBO
T/F: "When in doubt, disclose," is a good rule to follow
T/F: The first disclosure made to a seller after obtaining a signed listing is the Agency Disclosure
A material fact disclosed separately from the TDS and personally delivered to a buyer gives the buyer A. An additional five days to terminate the purchase agreement B. An additional four days to terminate the purchase agreement C. An additional three days to terminate the purchase agreement D. An additional two days to terminate the purchase agreement
C. An additional three days to determine the purchase agreement
A real estate agent representing buyers and sellers for compensating in California can only be A. A licensed California real estate salesperson B. A licensed California real estate broker C. A licensed California real estate specialist D. A licensed California real estate mortgage banker
B. A licensed California real estate broker
T/F: A material fact relates to specific building materials
T/F: A real estate licensee must disclose all known material facts
An ostensible agency is an agency that occurs as a result
of
A. Actions of the parties rather than by express agreement
B. Specific agreement rather than actions of the parties
C. A signed contract rather than actions of the parties
D. A buyer's representative and un unrepresented seller
A. Actions of the parties rather than by express agreement
One measures of success in real estate in the number of _ a licensee can
generate.
A. Buyers
B. Sellers
C. Referrals
D. All of the above
Prospecting effectiveness is determined by an analysis of
A. The source of the leads
B. The conversion of those leads
C. Time spent on the particular activity vs. sales generated
D. All of the above
The purpose of a thorough risk/reward analysis of a geographic
area is:
A. To discover the business potential of a specific area
B. To check for unrepresented sellers in the area
C. To discover the number of expired listings in the area
D. To discover the number of expired listings in the area
A. To discover the business potential of a specific area
T/F: Many leads to prospective buyers and sellers come from holding an open house
The most important thing to be aware of when talking to prospects is
A. Your tone of voice
B. Your attitude
C. The subject matter of your conversation
D. Finding the right house
T/F: Lead generation is only about finding buyers
Making prospecting to calls to people on the DNC
list
A. Is mandated at the sate and federal levels of government
B. Carries a new $11,000 fine for each infraction (used to be $10,000)
C. Does not apply to real estate licensee's
D. Is seldom necessary
B. Carries a new $11,000 fine for each infraction (used to be $10,000)
Before committing time and resources to a prospecting activity, a licensee should
A.
Conduct a risk/reward analysis
B. Set an annual budget for that activity
C. Get the opinion of another licensee
D. Both a and b
T/F: When looking for sellers and buyers, attitude can be the difference between success and failure
T/F: Looking for leads may involve what some choose to perceive as "rejection"
T/F: The key to effective floor time is preparation
T/F: A thorough knowledge of the current listing inventory is not possible for a new licensee
T/F: It is not necessary to have information on alternative properties for all your broker's listing when you are taking floor time
Before showing a buyer any properties a licensee should meet the buyer at
their office and
A. Conduct a buyer-needs assessment, if not previously done
B. Pre-qualify the buyers, if not previously done
C. Suggest they contact a lender and get pre-approved
D. All of the above
T/F: Most buyers buy the home they initially call in on
When an offer is presented to a seller, which one of the following can happen?
A. Acceptance
B. Rejection
C. Counter offer
D. All of the above
T/F: Most buyers are at least somewhat fearful when they make their initial call to a real estate office
Floor time can be an opportunity for
A. A new licensee to acquire potential buyers and sellers
B. A money saving opportunity for the broker
C. A way to avoid hiring office staff
D. An excellent
time to finish a novel
A. A new licensee to acquire potential buyers and sellers
A licensee's first meeting with a buyer should be held
A. At the home they called about
B. At the buyer's home
C. In the licensee's office
D. At an open house
C. In the licensee's office
Pre-qualifying buyers involves
A. Determining the buyers' needs and interests
B. Determining the buyers' motivations
C. Determining the buyers' financial ability
D. All of the above
One of the most common objections made by prospective buyers is the
A. Debt service
B. The view
C. Closets are too big
D. Price is too high
T/F: The counseling process helps clients clarify their most important goals
According to the California Statue of Frauds, which of the follow does not have to be in writing?
A. A purchase agreement for a single family residence
B. A purchase agreement for an office building
C. A month-to-month rental agreement
D. A commercial lease for 4 years it's an
option to renew
C. A month-to-month rental agreement
All of the following are effective closing techniques except
A. Alternating close
B. Alternate-of-choice close
C. Trial close
D. Assumptive close
T/F: In the buying process features carry more weight than benefits
People may choose not to buy a home for which of the following reasons?
A. Tax benefits
B. Capital gains
C. Lack of mobility
D. Family
T/F: Open ended questions may begin with who, what, when, where or how
How many different types of real estate purchase contracts are available in California?
A. 1
B. Many
C. 2
D. 6
All of the following are important incentives for owning property except
A. Security
B. Liquidity of capital
C. Restricted mobility
D. Pride of ownership
T/F: Closed end questions can create an emotional involvement in a property
Since the only two things a licensee has to sell are her time and knowledge going on a listing
presentation without being fully prepared is the same as
A. Showing a seller you have nothing to sell
B. Proving your lack of value to a seller
C. Asking the seller to question your credibility
D. All of the above
A licensee should never do which of the following when creating a CMA?
A. Print out all recent sales and listings and drive by them to become familiar with the neighborhood
B. Make an appointment and see as many of the current listings as possible
C. Base the seller's list price on what is currently for sales in the area
D. Give or take away value from the seller's home for amenities such as condition of the property, etc.
C. Base the seller's list price on what is currently for sales in the area
The only
way to ensure that you are in control at a listing presentation is to
A. Obtain a reasonable guesstimate of value
B. Create a cost analysis of the seller's neighborhood
C. Present your three point marketing plan with fervor
D. Be prepared with current and accurate market knowledge
D. Be prepared with current and accurate market knowledge
T/F: To be effective a marketing plan should include as many open houses as possible
T/F: The acronym CMA stands for comparable market analysis
A complete CMA will include all of the following except
A. Properties sold in the neighborhood for the past year
B. The solder properties for the last six-months
C. Expired listings for the past six months to one year
D.
Currently listed properties in the neighborhood
A. Properties sold in the neighborhood for the past year
A licensee should always consider which of the following when analyzing the value of a property?
A. The date of sale of the comparable properties used in the analysis
B. The list price of any expired listings
C. The price of
withdrawn listings
D. The price of any FSBO listings in the area
A. The date of sale of the comparable properties used in the analysis
T/F: Preparation is the key to a successful listing presentation
T/F: A thorough search of the MLS database for comps is among the most important first steps to creating an accurate CMA
T/F: Being fully prepared for a listing presentation gives a licensee personal self-confidence and credibility with the seller's
An open listing is
A. A unilateral contract
B. A listing given to a number of brokers
C. Often used by contractors or builders
D. All of the above
T/F: The exclusive authorization and right to sell agreement is a service agreement between the broker and the seller
It is advisable to use an exclusive buyer representation agreement when showing
A. Open listings
B. For Sale by Owners (FSBO) properties
C. Unlisted properties
D. All of the above
T/F: Signing an exclusive authorization to sell agreement does not create an agency relationship between the seller and broker
An exclusive authorization and right to sell agreement
A. Defines the broker's duties and rights
B. Gives the broker a right to a commission
C. Is an employment agreement
D. All of the above
A listing agreement is what type of agreement
A. Bilateral
B. Unilateral
C. Both a and b
D. Neither
T/F: An exclusive
authorization and right to sell agreement must have a start date and a termination date to be legally binding on the seller
T/F: A good example of a unilateral contract is the Exclusive Authorization and Right to Sell
The terms and conditions of an exclusive right to locate real property listing and closest to the terms and conditions of which of the
following?
A. An exclusive agency listing
B. An open listing
C. An exclusive authorization to sell listing
D. None of the above
C. An exclusive authorization to sell listing
T/F: The residential listing agreement - agency has essentially the same broker compensation provision as the exclusive authorization and right to sell agreement
The listing licensee must. Conduct with of the following investigations when completing his or her part of the transfer disclosure statement?
A. An oral investigation with the seller's
B. A visual investigation of the structures on the property
C. A visual investigation of the land and appurtenances
D. All of the above
T/F: If the broker or manager does not approve of the terms of a listing agreement as written by a licensee she has the right to cancel the listing agreement in writing within five days after its execution
T/F: When conducting a walk through inspection, the listing licensee should only be concerned with the structures and not the land
T/F: A good way to present your marketing plan to a seller is most often in the form of a checklist
T/F: At the second meeting with the seller's after the listing is signed, the licensee should install the keybox and do a walk through with the owners to assess what work needs to be done, if any
When hosting an MLS tour or caravan, a licensee should do which of the following?
A. Be sure the owners are home to answer licensees' questions
B. Be sure no one is at
the property so the licensee's will feel more at home
C. Have property brochures available and hand one to each licensee that tours the house
D. Have the licensee's favorite lender supply a tray of food, but not be at the tour and not leave any brochures about his or her company
C. Have property brochures available and hand one to each licensee that tours the house
A new
listing must be reviewed, approved and signed by the broker or manager within how many days?
A. One
B. Three
C. Five
D. Seven
Good communication with the seller's involves which of the following?
A. A written weekly activity report to the seller's
B. A "thank you" letter to the seller's from the broker
C. A and B
D. None of the above
B. A "thank you" letter to the seller's from the broker
T/F: A licensee's second visit to the property after the listing is signed is usually a good time to conduct the Transfer Disclosure Statement walk through inspection
A licensee's marketing plan should include
A. A detailed list of all activities the licensee will
perform
B. An overview of the general activities the licensee will perform
C. All activities for the first 30 days
D. A list of institutional advertising sources
A. A detailed list of all activities the licensee will perform