He sold the home for $750,000 and paid $50,000 in selling expenses, including the brokers commission. PRACTICE QUESTIONS), >CALIFORNIA REAL ESTATE PRACTICE PRELICENSE CLASS, >CALIFORNIA LEGAL ASPECTS OF REAL ESTATE PRELICENSE CLASS, >ALL Questions with Answers for ALL 3 PreLicense Classes Guides on 1 page, >ALL Real Estate Practice Class Questions with Answers & most with Explanations. C. Identifies buyers for other properties. 7 of 10 Which statement is not true about opening escrows? What kind of mortgage are they looking for? 10- Whats the difference between a lease purchase and a lease option? D. Kirks offer to Larry is legally cancelled. At time of license renewal, what is the renewal charge for a salespersons license? Most likely, what did they get? D. Interest rates are typically fixed rate. 3 of 10 Homeowners can deduct all but which of the following from their income taxes? Ordinary china is very fragile. Buys conventional, FHA and VA loans. California: Real Estate Practice Chapter 18 Quiz with no answers. Harry has some buyers that he believes are ready to make an offer. C. A counteroffer can give the buyers an out if they want one. B. Randy gives Tom an earnest money check for $1,000 and asks Tom to hold it until June 30, regardless of the date the seller accepts the offer. Making An Offer To Buy A Business - 6 Key Considerations - Forbes C. A seller can sell his or own home and owe home and owe no commission if he or she signs an exclusive agency listing. Listen carefully to everything your prospects say and repeat some specifics back at appropriate times so that they know you have heard what they said. Answer: D- Return the money to buyer Norm. 11- Greg and Joyce purchased a home from the builder who offered to pay $5,000 at closing as an incentive to get them to buy. They will have a number of new expenses as a result of this purchase. Which of the following is true, if you are licensed as a referral agent? 5- When must a licensee provide an agency disclosure to a prospective client? 1 of 10 Which figure represents the amount of income available as a return to an investor? During a phone call, a salesperson discusses showing a property to a prospect. Rule F-21 5 of 10 Which of the following is not a source of information for professional ethics codes? Which of these ad headlines would probably be the least effective for this home? What economic factors affect the real estate market as well as other goods and services? A. 75- All but which of the following is NOT an AIDA feature? 4 of 10 Which is true of an exclusive-authorization-to-acquire-property agreement? 3- What are the three general responsibilities of a property manager? A. 91- This paragraph of the purchase agreements informs the seller of the buyers right to inspect the property and can cancel or request maintenance based on findings. There are several steps in calculating the answer to this question. At the time the agent presents an offer. 1 of 10 What form can an agent use to show a seller what he or she will net on the sale of the property? 5 of 10 When all members have unlimited liability for debts and obligations of the group, the organization is a: 6 of 10 What is the foremost reason people invest in property? 9 of 10 An agent must give a copy of the listing agreement to the sellers: A. What would you say about Sallys behavior? Which of the following statements is not true? C. Can perform some real estate activities without a license. Ask the caller if he or she would like to receive e-mails on newly listed properties. 8- Which section of the purchase agreement does not apply directly to the buyers and sellers? Which of the following statements is not true? D. Broker Tom has only limited responsibility for the actions of his licensees. Only after receiving the tenants consent. Answer: C- 10% of the sales contract offer, What is the suggested response when a buyer asks "Do you think the seller will come down on the price?" The borrower gives the lender a note and a mortgage in exchange for the funds. Now, calculate how much you lost: $153,890 - $139,900 = $13,990. 1 of 10 All of these questions could help you determine a prospects capacity to make a purchase except which one? Now you have the numbers to plug into the loss formula; Percent of Loss = Loss / Cost or $13,990 / $153,890 = 0.0909. Bob writes the offer but is too embarrassed to submit it. B. Pam is not liable since it was summer and the heating problem was not obvious. CSP-Conlutas Central Sindical e Popular . 61- Bill and Sue secured a mortgage loan that is tied to an index which fluctuates over the life of the loan. He has put up $50,000 in preferred stock as earnest money. Q: Buyer Randy makes an offer to purchase one of Broker Tom's listings on June 15. D. All repairs must be in compliance with existing building codes. A. Lead-based paint was used in the home. Broker Alice holds an uncashed check until the offer is accepted. 2 of 10 Which of these is not an AIDA characteristic? 7- If an item is paid for in advance by the seller, how will it be handled on the settlement statement? B. Salesperson Julie can receive her commission from the cooperating broker in her latest transaction. The listing agent must provide the disclosure to the seller prior to securing the listing agreement. Who will pay the points? If a seller changes the terms of the offer to purchase, he has created a counteroffer. 7 of 10 Which paragraph of the purchase agreement must be initialed by both buyers and sellers for it to apply? 43 of 50 Which one of these statements would not be considered a measurable goal? B. The advertiser is subject to a fine. Give credit to all potential borrowers. A. Tell the buyer to submit the offer first and then take a copy to the attorney to review. C. Allow indoor pets to leave their designated area. Gross income must be based on production. What is the major difference between an employee and an independent contractor? The Haleys want to get a mortgage that will cover the purchase price plus all the furnishings. Broker compensation to other brokers. A. I will make two new contacts every day this week. A. D. There is a loan protection plan included with the loan. D. I will complete a property management seminar within the next year. The price of a plane ride rises by 10 percent. Point out that the roof is not leaking despite its age. B. : The Commission could suspend or revoke Rob's license. 3- What is the major difference between an exclusive-authorization-and-right-to-sell listing and an exclusive-agency listing? D. Avoid negative comments while hes inside the home. B. Billy's agent tells him that he needs, When using the cost approach to appraise a property, the appraiser is most likely working for the, insurance company trying to obtain a replacement cost on the property. The property is in an area that could flood. The other 75% came from an hourly wage paid by Tami. D. The borrower gets a note in exchange for a mortgage. \hline \text { Annual inspection costs } & \$ 155,000 \\ B. The following table lists all costs of quality incurred by Sam's Surf Shop last year. The ordinance also requires a 10-foot side set back. 49- Agent Dan tells his buyers that the seller will leave the washer and dryer if the buyers make an offer now. Nam lacinia pulvinar tortor nec facilisis. C. They can make payments directly to the original lender. of a train ride will leave the quantity demanded of train rides unchanged. 1. How long does he have to file a complaint with the Department of Housing and Urban Development? Has New Age violated any laws? C. When you have 200 names in your contact database. D. An exclusive listing must always be at least 30 days long. 50- Harry has some buyers that he believes are ready to make an offer. If the lot measures 100' x 200', which is the total allowable square footage of a single story building? Buyers make an offer to purchase property and to place $1000.00 earnest money into their broker's trust account. Entails entering into two agreements simultaneously. 39- When doing a competitive market analysis, an agent looks at all but which of the following factors? C. Tell the sellers you expect an offer to be coming soon. He paid $100,000 for it, and made $300,000 worth of improvements. C. It creates an agency relationship. B. Which statement is TRUE? He refuses to rent the other unit to families with children. Last year, about 25% of his income came from sales commissions. Tom violated the law by not providing notice of information that would affect Fred, When a broker received an unexpected bill, he deposited a client's earnest money check into his personal account to cover the expense. Which of these statements is true about the wraparound mortgage? 16 of 50 When doing research to recommend a reasonable listing price for a home, the most critical part of the research deals with analyzing: C. Listing prices of homes that expired unsold, D. Selling prices of recently sold homes. D. Gross income must be based on hours worked. 36 of 50 Agent Pam receives an offer on one of her listings for less than the asking price. Gross income must be based on production. C. Salespersons must perform all of their activities on behalf of their employing broker. I do not know (who\underline{\text{who}}who, whom) the guest speaker will be. 53- Greg sold an apartment building he owned for 20 years. A. 9 of 10 Which of the following statements is not true? Discourage Sam from accepting an offer so far below Sam's asking price. 1 of 10 All of the following are good newspaper sections to read for prospecting except which? 13 of 50 What is the most common reason that owners try to sell their homes themselves? D. The advertiser must prove he was grandfathered in as a licensee. He says to them, "Would you prefer to take possession on September 1 or October 1?" What should Jake do? Donec aliquet. Protect Your Family From Lead In Your Home, C. The Homeowners Guide to Earthquake Safety, D. Consumer Guide to Disclosure for Buyers. Which statement is true ? This term typically refers to. \text { Annual warranty cost } & 1,546,000 \\ \text { Annual cost of scrap materials } & 286,000 \\ C. Real Estate Settlement and Procedures Act. He sounds really excited about this property. 8- What actions does a lender take to sell a mortgage in the secondary market? A. Secure documents that are public information from the courthouse and other sources available to the public. buyer randy makes an offer to purchase buyer randy makes an offer to Launch into your list of the homes special features and hope she changes her mind. 6 of 10 Which of these is not a tool to help evaluate advertising effectiveness? 2 of 10 How long must buyers and brokers keep the documentation on a foreign sale? Answer: B- Encourage the buyer to get the attorney to review it quickly. 2 of 12 Which of the following statements is not true about the Federal Reserve? A. C. Sharing all visitor comments two weeks before the listing ends. C. Make up some statistics to share with the Bowers. 81- Jake has decided to specialize in working with clients who purchase schools. This is not true of which duty? What should Tom do? 4 of 10 What is a good method for an assistant to keep track of the various types of files a real estate broker must have? 49 of 50 Greg and Wanda Sandler purchased their home 35 years ago and it was paid off at the end of thirty years. B. 7 of 11 In which of the following types of loans is the payment allocated only to interest? 3 of 10 How long must trust account records be kept? 7- What are the capital gains exclusions associated with the sale of a personal residence? Bob Broker represents Sam Seller. B. Use as little white space as possible. 9 of 10 A reference list of alternative comparable properties is sometimes referred to as the: 10 of 10 Prospects Jim and Linda arrive with agent Bill at the first showing. 97- Buyer Randy makes an offer to purchase one of Broker Toms listings on June 15. Mary makes an offer to purchase a duplex from Sam. D. Collecting information and pre-qualifying buyers yourself is the easiest and best approach. C. Use an attractive first-class stamp. 4 of 11 Which of these is also called a contract for deed? 2. Follow the below steps to write a solid purchase agreement: Step 1 - Buyer and Seller Details. B. 8 of 10 What does the paragraph on repairs state? Broker John puts $500 into his trust account. Prior to bringing an offer to purchase. Terminate the first contract and accept the higher offer. Answer: C- A secondary bid for a property that the seller will accept if the first offer fails. Rob, a salesperson, tells a buyer that the location of the electric meter on a house is up to the buyer. 38 of 50 What is the primary role of Fannie Mae? practice test Flashcards | Quizlet Information on current loan programs. Only needs to be done periodically. 3 of 10 Sara just bought her first new home. Give the sellers a copy of some homeowners tips. 58- Mortgage lenders are prohibited from discriminating in giving credit to prospective borrowers based on race, color, religion, national origin, sex, marital status, age or dependency on public assistance under which law or regulation? Virtual tours are a very expensive marketing tool to use. D. Will conducted an agent open house last week that was attended by 25 agents. 5- Your listing presentation manual should be made up of two sections that address what issues? Alex Jones owns a duplex and lives in one unit. Set up a face-to-face meeting with the sellers as soon as possible. A. 8- What is an important issue for potential buyer clients to understand? The difference between what Sara owes and what her home is worth is known as what? Licensee Pat was in transit to the cooperating licensee's office with the offer. Which term is the process of joining several parcels of land into one larger parcel? 5- What kind of newspaper ad could you place to solicit a listing? 80 feet of frontage x 160 feet of depth = 12,800 square feet allowed by local ordinance. Deposit the check into his trust fund account on the next business day. residential transactions financed by federally related mortgage loans. 43 Offer To Purchase Real Estate Templates (& Letters) It became a contingent contract when Sam accepted Mary's offer. She thinks they are really interested in one particular property, but when she approaches them about it, the buyer says, The price is too high. What would be a good response to that comment? You bought if for the listing price plus 10% and sold it for the listing price. C. Pam should recommend that they counteroffer with a price halfway between asking and offering price. 7 of 50 Glenna and Amanda just bought their first home. Present the offer and tell the seller that the check needs to be held until June 30. 33- Which statement is true about a loan that has a negative amortization? C. Recommend a counteroffer back to list price. 7 of 10 Which of the following is not a national real estate trade organization? There . 6 of 10 Which of the following is not an item that a buyer usually pays at closing? 5 of 10 All of the following are valid listing agreements. 9 of 10 Janet is an unlicensed assistant. 33 of 50 Sal bought a personal residence for $150,000. The borrowers family in case of his or her death, B. D. After the agent has had time to make copies at the office. 48- The public report that a developer must provide when offering subdivided lands for sale is provided by which agency? Sharon and Steve have just taken a second mortgage on their home. When you meet with your sellers after you obtain the listing, what is one of the first things you should share with them to get them involved in the process? 4- What is a good method for estimating what a seller will net from the sale of the property? Nam risus an, View answer & additonal benefits from the subscription, Explore recently answered questions from the same subject, Explore documents and answered questions from similar courses. Explain the method used to write good advertising. What kind of listing agreement does Alice have with Jack? Next, determine the remainder of the loan; $185,000 - $40,000 = $145,000. One offer is for $208,000; the other is for $200,000. What should Tom do? D. Erics broker should appoint Eric as the designated agent in this transaction. What percent of loss did you have? Sunday afternoon, Mary is driving around and finds a property she likes better. Give $250 to the buyer and $250 to the seller. Underline the correct pronoun in parentheses in the following sentence. A. B. Several weeks later when showing another home to a buyer, Greg mentions that Kim would have accepted less for her home. A. John offers weekly training seminars. 6- What is the Real Estate Transfer Disclosure Statement and who is responsible for providing it? 3 of 10 Jake has received two offers on one of his listings. 98- Grant moves into his new office space while he awaits the completion of the negotiations of the lease terms. Enter your offer. A. California: Real Estate Practice Ch7 Quiz with no answers. B. buyer randy makes an offer to purchase 18- In a transaction that involves the purchase of a business, what document functions in the same way as the deed in a personal real estate transaction? Understanding the kind of responses your advertising generates, D. Being able to anticipate the callers requirements. B. 4- Why is it important to talk to the sellers about the buyers? A. Jake is getting a VA loan with no down payment. B. D. The UCC is a body of law that standardizes a number of business practices. \hline "What would you like to offer?" The advertiser can be sentenced to up to a year in prison. Pellentesque dapibus efficitur laoreet. B. What approach can Greg use to discourage the person from calling other agents? Which one is illegal in many states? Answer: D- Avoid telling him the price by setting up an immediate appointment. 4 of 10 If a person believes he or she has been discriminated against, how long does he or she have to file a HUD complaint? buyer randy makes an offer to purchase - cspconlutas.org.br Find a home that meets FHA requirements. 83- Matt is computing the adjusted cost basis of his apartment building for income tax purposes. First, determine the amount by which the first $40,000 is reduced; $40,000 x 0.05 = $2,000 (100% - 95% = 5% not covered). C. It must specify a definite termination date. buyer randy makes an offer to purchase - nubblesitesolutions.com Which statement is true? Is critical to your success in real estate. Her broker has asked her to be available for tasks in the field rather than in the office. B. Its a good idea for brokers to carry workers compensation coverage. C. The borrower pays a fixed rate of interest. A. 3- When handling a telephone inquiry, why should you limit the amount of information you give out about the property? Buyer Norm called and rescinded the offer. What do many firms do to avoid confusion with their advertising plan? 10 of 10 Which of the following is not a possible benefit of investing in real property? C. Give the tenant a 3-day notice to pay or quit. D. Their loan payments will gradually increase. What is meant by the term sphere of influence? 1- What is important to know about unlicensed real estate assistants? 8- When does a purchase offer become a legal contract? 3- What is the difference between CLTA and ALTA policies? D. The appraised value prior to sale buyer randy makes an offer to purchase. 6- According to California real estate law, how often must a broker balance his or her trust accounts? How does ALTA-R differ from ALTA? 7- What is the difference between an FHA loan and a VA loan? A. B. D. Reduces the monthly payment for a borrower during the initial years. What is the market value of the property? 8- What do you call those items that have been incurred by the seller but not paid, and how will they be handled on the settlement statement? The monthly net rental is $600. 8 of 10 Which statement is true about a real estate assistant? A. 2 of 10 Which is not a true statement about the Americans with Disabilities Act? buyer randy makes an offer to purchase - 740alvarado.com Which would NOT result from the exercise of police power? B. Their interest rate will rise after the first few years. 86- Which of the following is not considered a benefit of investing in real estate? Answer: A- Proceed as if the buyer has decided to make an offer. 6 of 10 In the listing agreement, a seller can choose to decline/disapprove all but which of the following items? 12- What does TRID require of lenders? Which statement is true? 3 of 10 Which paragraph of the purchase agreement states that if the buyer defaults after acceptance, he or she may be liable for the brokers commission? 1- What is a competitive market analysis? buyer randy makes an offer to purchase - pet-anneve.com 7- What does the net operating income of a property represent? 54- Jim and Jane are buying a home for $120,000. D. Gross income must be based on hours worked. A. D. Make the headline bold and all caps. B. Rule E-1 Ask the buyer if the buyer would like to make an offer taking the roof age into account. Before completing the form, discuss the following important points with the home seller: Price. Offer to mail the caller a set of fliers on interesting properties. What should a licensees written employment agreement contain? D. All adjustable rate mortgages have negative amortization. A. \text { Annual testing cost } & 543,000 \\ C. Johns office has a selection of books, CDs and tapes for agent use. The offer that has the shortest closing date, Answer: B- The offer with the highest price that is the most likely to close. The value of the property the borrower wants to purchase, D. The neighborhood in which the property is located. This would be the maximum the purchaser would be permitted to borrow. 3- What is a good approach to use when contacting the owner of an expired listing? 10 of 10 Which of these Internet pages might be of particular interest to sellers? This type of action might be viewed as: Buyer Frank has just signed a sales contract for a 2 million dollar property. 6- List the steps of underwriting. Yes, there was a contract when the seller mailed the offer, If, upon receipt of an offer to purchase under certain terms, the seller makes a counteroffer, the prospective buyer is. D. Meet with the buyers lender to ensure theyre getting a good deal.