Simulated Exam-1_Redacted

2 provided [f evidence of active infestation is found, a structural pest COntr0l repOrt is required to be

3 A puIchaSeT_0f a C0nd0minium unit requests a copy of the conditi0ns, c0venants and TeStn1ctions (CC&Rs) and bylaws. These d0cuments need to be provided within

4 The expression “company dollar” refers to

5 loan assignment, they may be guil [fan appraiseI use5 improper valuation methods or is negligent in cOmpleting a g0vemment ty of

6 The calendar date that is of m0st c0ncem to an appraiser is the date

7 Fee amounts are always

8 The temm “kiosk” refers to a(n)

9 Agency relationships may not be solely created by

170 Unlocking the DRB Salesperson and Broker Exam, Sixth Edition

12 occurs when a listing agent deletes provisions on the face of a buyer’s signed

purchase agreement and adds copy to replace the deleted material

13 A contract has been fully executed when it has been

14 Real property that builds up along a riverbank is acquired through

15 A metropolitan area where the cities within it have grown together is known as a(n)

16 When a salesperson’s employing broker dies, the salesperson needs to

17 The final step in the appraisal prOcess is tO

Q reconcile the different approaches and arrive at a conclusion

18 The principle that housing passes down to lower economic groups would be

19 When a broker solicits and accepts a deposit on the purchase 0f real property without expresS written authorization from the owner to sell the property,the broker is

20 A real estate broker generally acts from a p0sition oftrust forthe seller orbuyer.This is described

legally as a(n)

22 A(n) __ is an individual’s opini0n 0r estimate of a property’s value on a specific date

23 The employment agreement between a broker and a salesperson needs to be retained by the

broker and salesperson for

24 H0w s00n must a br0ker dep0sit a client check that is made out to the broker’s trust account?

25 Who must receive a copy of the stru ctural pest control report?

26 A broker presented a writte tten offer to their seller from a buyer. The offer stated that upon

aCCeptanCe, the buyer w0uld dep0sit $25,ooo in escrow.The seller made a counteroffer but did

not change the amount ofthe deposit and sent it back to the buyer.The buyer agreed to all the

changes, but lowered the amount ofthe deposit to $10,ooo. All of the following statements ar e

COITeCt, eXCept

27 The relati0nship between a vendor and vendee under a land sales contract is most similar to

the relationship between a(n)

172 Unlocking the DRE Salesperson and Broker Exam, Sixth Edition

28 If a lessee assigns their lease to someone else, the lessee

29 Mineral and water rights are included in the _ which are transfered with the

sale of a property

30 Insulation values are rated as “R”. What does this represent?

31 A violation of a condition in a homeowners’ association’s (HOA’s) conditions, covenan ts and

restrictions (CC&Rs) is

32 Peter sold his home to Matt. Matt didn’t record the grant deed, but moved into the house

Peter then sold the same property to Isabella, who reviewed the county recorder’s records but

did not look at the house. Peter gave Isabella a deed, which she recorded. All of the followin g

statements are false concemning title to the property, except

33 A listing broker may not be

34 The task of evaluating a property to qualify it as collateral for the repayment of a loan is

completed by a(n)

35 All of the following statements are true regarding the cost method of appraisal, except

36 Whether property functions as adequate security for a real estate loan depends on th e

Simulated Exam # 1 173

37 A property owner lost their job. The owner’s loan payments were made for them since they

had a(n)

38 Alienation of title refers to

39 All of the following statements are true regarding a notary acknowledgement contained in a

grant deed, except

40 Successful marketing materials are generally held to include the following four critical

elements

41 If a newspaper advertisement run by a licensee fails to identify their name or license number,

this is referred to as

42 Confidential financial information about a principal obtained by a broker during the course of

a real estate transaction needs to be kept confidential for how long?

43 A seller enters into an exclusive right-to-sell listing with an agent but does not receive a copy|

ofthe signed agreement.The seller, believing this relieves them of any obligations, personally

sells the property while the listing is in effect. What is the outcome?

174 Unlocking the DRE Salesperson and Broker Exam, Sixth Edition

44 A buyer’s agent submitted on offer to purchase a h0me t0 a seller along with a $10,000 personal

n0te as the eamest money deposit. The buyer’s agent is to

45 A residential mortgage primarily for personal, family or household use and secured by a deed

of trust on a dwelling is known as a

47 All of the following are essential to creating a valid contract, except

48 Broker Wallace represented a young man in the sale of his home. After purchase terms

had been agreed to and the grant deed had been signed and delivered into escrow, the title

company discovered the seller was not yet 18 years old and was not emancipated. The gran t

deed is

49 In order to form a binding agreement, an offer or counteroffer

50 In a S1031 real estate exchange, “boot” does not refers to

51 A group of competing brokers who collectively set commissions based upon an agreed-to

minimum commission schedule are

Simulated Exam # 1 175

52 To avoid a taxable gain, a property owner may exchange their commercial property wi th

53 On appraisals of older apartment buildings, a major problem in the cost method is

54 When an appraiser attempts to establish the value of a commerci ercial building, what type of

property is least affected by changing economic conditions?

55 All of the following information is included in the form style of an appraisal report, except

56 The land residual method of appraisal is used to determine the value of the

57 What must an appraiser do when they are hired t0 appraise a property owned by a corporation

in which the appraiser owns a share?

58 When the due-on clause in a trust deed is triggered, the lender may recast or call the loan, also

known as

59 Who pays the points on a CalVet Home Loan?

60 A mortgage broker’s fee is customarily paid by the

176 Unlocking the DRE Salesperson and Broker Exam, Sixth Edition

61 Assemblage is closest to

62 In a buyer’s closing statement, the selling price is listed as

63 Under the Real Estate Law, a real estate salesperson is

64 A brokerage office with a high degree of tumover and failure amongst its staff is most likely a

result of

65 The designation “CPM” stands for

66 A fictitious business name statement expires

67 A lost right caused by an unreasonable delay in the pursuit of a claim is called

68 A real property land sales contract does not need to show

69 A walk-up refers to

70 A 60 ft. by 45 ft. building is to be carpeted. 60% of the square footage will be covered at a cost of

$6 per square yard. The total cost of the carpeting will be

Simulated Exam #1 177

72 As opposed to condominium ownership, cooperative ownership has the disadvantage that

73 The federal Loan Estimate is to be delivered to a borrower

74 A seller’s broker receives a written offer on a listed property.The broker is certain the seller will

not accept it. The broker may do all of the following, except

75 The Federal Tru th-in-Lending A ct (TILA) defines the annual percentage rate (APR) as

76 A loan that allows the borrower to make monthly payments less than the interest accruing is

referred to as a(n)

77 The lowest closing costs other than the down payment are realized using a

78 A bank loans La uren $850,000. Part of the loan agreement calls for Lauren to keep $20,ooo of

the loan funds on deposit with the bank for the life of the loan. This is an example of

79 All of the following statements are false regarding the agency duty held by a buyer’s agent,

eXCept

178 Unlocking the DRE Salesperson and Broker Exam, Sixth Edition

80 Unless fraud is involved, an action against a licensee by the Real Estate Commissioner needs

to be initiated within __ofthe occurence of the alleged violation

81 The organization resp0nsible forthe enforcementofproper sewage and sanitation constru Ct10n

practices in a subdivision is the

82 Harold wills the family estate to his son Patrick on the condition Patrick m arry before title will

be transferred. This is an example of a

83 A real estate agent may not represent all principals in a transaction when

85 Marc purchased an apartment building for $2,ooo,ooo. The list price was $2,50o,ooo. Marc

put $50o,ooo down and acquired a new first trust deed for the difference. Marc’s cost basis for

1nC0Me taX purpOSes 1s

86 The proper order of events in a court proceeding involving real estate is

87 The Real Estate Commissioner is prim arily concemned with financial arrangements in a

subdivision. If the Commissioner wishes to rescind approval of a subdivision, they would

Simulated Ex am #1 179

88 Who may withdraw trust funds?

89 It is unethical for a property manager’s compensation to be structured as

90 The f0ur essential elements of an enforceable contract are

91 When advertising on the intemnet, the broker needs to

92 A real estate salesperson may only be paid a commission by

93 The existence of the following is not required under disclosure law, except

95 David listed his h0use for sale with Broker Paulson for $40o,ooo. David told Broker Paulson

Lt was imperative that the property be sold quickly. Broker Paulson showed the property to Henry and told him David was financially insolvent and would accept $380,ooo. Based on

offer. Conceming Broker Pauls0n’s actions, which of the following is true? Broker Paulson’s statement, Henry ofered David $380,ooo for his property. David accepted the

S imulated Exam #1 181

S1NCe

broker’s fiduciary agency with the various parties to the transaction?

182 Unlocking the DRE Salesperson and Broker Exam, Sixth Edition

113 Amelia deeds a property to Buster which is never recorded. How would Buster transfer title

back to Amelia?

buyer the Agency Law Disclosure form?

Q As soon as practicable

115 In addition to a general duty owed to the other party in a transaction, a licensee owes a(n)

to act with the utmost good faith and diligence forthebenefitoftheir principal

is called

much was the property sold for?

principal

million?

Simulated Exam #1 183

121 An appraiser was hired by Whitney to appraise DuPont’s property. With whom does the

appraiser discuss their findings?

homes receive a disclosure concemning the

than an old property?

to-value ratio (LTV) wi th a 20% down payment.The property was appraised for $290,ooo. How

much will the buyer need as a down payment?

eXCept

184 Unlocking the DRE Salesperson and Broker Exam, Sixth Edition

131 Broker Gerry sold a property to Sarah that was marketed “as is.” Broker Gery knew that

the property’s plumbing was in a major state of disrepair but did not tell Sarah. The problem

with the plumbing is not apparent to an ordin ary, prudent person. If Sarah sued the seller for

damages, the court action would likely be

directly,is known as a(n)

approval of the home by the buyer’s father. The buyer informed the broker their father w aS

out of the country for an unknown duration. The broker presented the offer to the seller

without disclosing that the buyer’s father was out ofthe country.The seller accepted the offer

In this example, the broker’s conduct was

submit the proposed solicitation to the Department of Real Estate (DRE) for approval?

Simulated Exi am #1 185

141 Real estate investments may include

143 If homes in an area represent the highest an d best use of the land and are similar in

architectural design, which of the following principles of appraisal apply?

146: Acme Development sent postcardst0 25,00o AARP members offering prizes without disclosing the requirement tO visit the retirement community and attend a sales presentati0n in 0rder to win. Is this legal?

Q aCCret10n

180 Unlocking the DRE Salesperson and Broker Exam, Sixth Edition

96 All of the following transactions do not require compliance wi th the agency law, except

97 An appraisal is valid for what length of time?

98 All ofthe following are not required in order to transfer fee title to a parcel ofreal estate, except

99 Which ofthe following parties is in the weakest position againstloss of property due to a claim

of title by a third party?

intestate succession?

102. A seller entered into an oral listing agreement to sell real estate with a broker without a follow

up written verification.The payment ofa commission to the broker underthese circumstances

1S

continuing education (CE) every four years to renew their Department of Real Estate

(DRE) license

186 Unlocking the DRB Salesperson and Broker Exam, Sixth Edition

148 149 Ifanewspaper advertisement forthe sale ofa condominium states only the annualpercentage Information about the thickness and material used for the foundation footing of a property are contained in b Q plot plans elevation plans d C foundation plans c0unty records

rate (APR)