171. Interest rates on trust deed loans are primarily determined by which of the following?

A. Demand for and supply of money

B. National defense policies and status of federally insured loans

C. The relative value of the U.S. dollar

D. None of the above

Answer: A. Demand for and supply of money

172. The transfer disclosure document by the seller can be filled out by the broker entirely when:

A. The seller hasn’t seen the property

B. The seller instructs the broker to do so

C. The seller is not available

D. Never

Answer: D. Never

173. A real estate investor who wishes to operate by using the Principle of Leverage would:

A. Use personal funds as much as possible

B. Use borrowed funds and personal funds on an equal basis

C. Use borrowed money to the maximum extent possible

D. Invest in real properties with values that are declining

Answer: C. Use borrowed money to the maximum extent possible

174. The maximum fine that may be imposed by the Real Estate Commissioner against a broker who pays an unlicensed person for soliciting or negotiating real estate loans is:

A. $1,000

B. $5,000

C. $10,000

D. $50,000

Answer: C. $10,000

175. Which of the following best describes “puffing”?

A. A misleading statement made by the property owner

B. A superlative statement about a property made by the seller or agent that shouldn’t be considered an assertion of fact

C. A deliberate misrepresentation made in reckless disregard of its truth or falsity

D. Having the buyer agree to release you from any future liability

Answer: B. A superlative statement about a property made by the seller or agent that shouldn’t be considered an assertion of fact

176. Which of the following would not be subject to prorating in an escrow?

A. Title insurance premium

B. Property taxes

C. Rents

D. Condominium assessments

Answer: A. Title insurance premium

177. An appraiser intends that the estimate of value as disclosed in his appraisal report on a property be valid:

A. As of the date of the appraisal only

B. For a period of three months after the appraisal date

C. Until the close of escrow

D. Until a loan is funded

Answer: A. As of the date of the appraisal only

178. In the eyes of The Real Estate Commissioner, any individual employed as a salesperson by a licensed real estate broker is considered to be:

A. An independent contractor

B. An employee

C. A special agent

D. A sub-agent

Answer: B. An employee

179. Title to property can be acquired by accession by:

A. The state

B. The property owner adjacent to the flow of water

C. The county in which it occurred

D. No one

Answer: B. The property owner adjacent to the flow of water

180. Under which situation is a real estate agent not required to deposit a buyer’s check into a trust account within three days?

A. If the agency disclosure states the agent is not required to do so

B. Only when the buyer told the agent he may deposit the money in the bank

C. The seller told the agent he has not decided whether to accept the buyer’s offer and the agent may hold the check without depositing it.

D. Any of the above

Answer: C. The seller told the agent he has not decided whether to accept the buyer’s offer and the agent may hold the check without depositing it.