1. The rate of commission to be charged for selling a business is determined by:
A. The Real Estate Commissioner
B. Agreement between seller and broker
C. Agreement between buyer and broker
D. The State Law
Answer: B. Agreement between seller and broker
12. Which of the following is an existing Fair Housing Law which every licensee should be
fully aware of?
A. Rumford Act
B. Unruh Civil Rights ActC. United States Civil Rights Act of 1968
D. All of the above
Answer: D. All of the above
13. Lenders are vitally concerned with the element of “risk” when loans are made on
homes. When borrowers can obtain loans with no down payments, the greatest protection
against defaults on such loans would be:
A. Low interest rates
B. Friendly and fair loan servicing
C. Appreciation of the property
D. Low monthly payments
Answer: C. Appreciation of the property
14. Which of the following is required for an individual to obtain a California Real Estate
Salespersons License:
A. Pass the license examination
B. Pay the licensing fee
C. Show proof of completion of a Real Estate Principles course
D. All of the above
Answer: D. All of the above
15. Which of the following is not an essential requirement to create a leasehold:
A. Competent parties
B. Description of the premises
C. Mutual consent
D. Notarized signature of lessee
Answer: D. Notarized signature of lessee
16. A simple contract may be best defined as:
A. An agreement in writing
B. An oOer and an acceptanceC. A promise
D. A recorded agreement
Answer: B. An oOer and an acceptance
17. An executory contract is a contract that:
A. Has been fully performed
B. Is yet to be performed
C. Must be in writing
D. Has been notarized
Answer: B. Is yet to be performed
18. The second installment of county real property taxes become delinquent on:
A. February 10
B. December 31
C. April 10
D. March 15
Answer: C. April 10
19. Upon the termination of lease, trade fixtures can usually be:
A. Removed by the tenant, if removal can be eOected without damage
B. Removed only by written consent of the lessor
C. Sold by the lessor
D. Removed by the tenant only if he reimburses the lessor for their value
Answer: A. Removed by the tenant, if removal can be eOected without damage
20. One of the steps in the replacement cost approach to the appraisal of a building is to:
A. Calculate the gross rent
B. Order a credit report on the owner
C. Estimate the cost to construct an equally desirable substitute building
D. Contact the Department of Veterans AOairs
Answer: C. Estimate the cost to construct an equally desirable substitute building