1.

Alex makes an offer to purchase one of Bill's

listings. Bill cannot contact the seller. In the
meantime, Bill gets another offer on the property
from another buyer at a higher price. What should
Bill do?: Present both offers to the seller. 2. Fair
Housing laws are designed to:: Prohibit
discrimination.

3. Once signed, escrow instructions can be changed

only by:: Mutual consent of both parties
4. When doing a competitive market analysis, the
recently sold properties you include should have sold
within what timeframe?: Past three to six months

5. Jane has been working with some buyers for

several weeks. 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?:
"What do you think would be a fair price?"
6. Greg grew up in and lives in a rural area. He's very
comfortable selling that type of property and knows
he can work well with clients in that area. What
property type will be his specialty?: Agricultural
7. Agent John just listed a home in a mid-range
priced neighborhood.Which of these ad headlines
would probably be the least effective for this home?:
Needs Paint
8. What is one way the Federal Reserve System
regulates the money supply?- : Buying government
bonds.
9. Alice is an employee of Mid-State Realty Services.
She would likely be required to do which of the
following?: Attend weekly staff meetings at the
office. 10. After six months time, manager Tim wants
to terminate the lease of one of his month-to-month
tenants. What must Tim do?: Give the tenant a 30-
day notice.
11. Broker Tami has a very low advertising budget.
Which of these forms of advertising is she most
likely to avoid?: Magazine ad
12. Tim thinks his buyers are ready to make an offer.
He asks, "Which one of the children gets the
basement bedroom with the private entrance?" What
kind of closing technique is Tim using?: Ownership
13. Buyer Kirk submits an offer to seller Larry. Later
that day, Kirk finds a home he likes better; so he
withdraws his offer to Larry. Which is a true
statement?: Kirk's offer to Larry is legally cancelled.
14. Greg and Wanda Sandler purchased their home
35 years ago and it was paid off at the end of thirty
years. In order to supplement their fixed income, the
Sandlers receive monthly checks from their bank.
Most likely, what did they get?: Reverse annuity
mortgage
15. Agent Pam receives an offer on one of her
listings for less than the asking price. The home has
been listed for several months; so Pam does a CMA
and

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determines that the offer is more than reasonable in

today's market. However, she believes the sellers
will not be willing to accept the offering price. What
would be a good approach for Pam to take?: Pam
should recommend that they counteroffer with a
price halfway between asking and offering price.

16. Tim and Sue have obtained a buydown loan on

their newly built home. Which of the following
statements is not true?: They will have to make a
large down payment.
17. Mortgage lenders are required to disclose
financing costs and annual per- centage rate to the
borrower under which law or regulation?: Truth in
Lending 18. Kathy is a personal assistant at Action
Realty. She doesn't need a license to perform many
activities at the firm, but which of the following
would require her to have a license?: Giving
information about a listing to prospective buyers. 19.
Glenna and Amanda just bought their first home.
They will have a number of new expenses as a result
of this purchase. Which of these expenses is not
associated with owning a home?: Personal property
tax
20. Sal bought a personal residence for $150,000. He
made $150,000 of im- provements during the three
years he lived in it before he sold it. He sold the
home for $750,000 and paid $50,000 in selling
expenses, including the broker's commission. On
what amount will he pay capital gains tax?: $150,000

21. The manager of a large hotel refuses to rent a

room to a blind person with a guide dog. What
California Fair Housing law has the manager
violated?: Unruh Civil Rights Act
22. Eric is acting as a disclosed dual agent in a
transaction. Which statement is true?: Eric may not
represent the seller's interests to the detriment of
the buyer. 23. Which of these lenders would be the
least likely to lend money for an investor to purchase
an apartment building?: Commercial bank

24. hich of the following economic characteristics is

true?: Supply cannot be moved to a high demand
area.
25. Which of the following Internet pages might not
be of particular interest to buyers?: Curb appeal
information

26. There has been very little interest in the Bowers'

home this past week. What should agent Phil do?:
Send the weekly report as usual, emphasizing what
your upcoming plans are for the week.
27. Veteran Bill has applied and been approved for a
non-VA-guaranteed Cal- Vet loan. Which of the
following statements is not true?: Bill is purchasing a
6-family apartment building.

28. Which of the following is a credit to the seller on

the settlement statement?- : Sales price

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29. What was the important ruling in Jones v.

Mayer?: Discrimination on the basis of race is strictly
prohibited, meaning no exceptions whatsoever.
30. Prospects Mike and Marge arrive with agent
Elaine at a showing. Elaine parks across the street
from the home and Mike is disappointed by what he
sees. He's no longer interested in seeing the inside
and Marge agrees. What should Elaine do?: Call the
sellers immediately and let them know you won't be
coming by.

31. What is the Federal Housing Administrations

primary role in the mortgage market?: To insure
loans made by approved lenders
32. What is one of the major objectives of
professional property manage- ment?: Minimize
expenses while maximizing profits for the owner.
33. What is the primary role of Fannie Mae?: To
purchase conventional, FHA and VA loans
34. Which of the following newspaper information is
not helpful in developing a Prospecting Plan?:
Editorials and Bid Proposals

35. The title report on a property shows there is a

lien on the property. Who is responsible for removing
the lien to clear the title?: Seller
36. What is the most common reason that owners try
to sell their homes themselves?: To save on
commission

37. Which of the following statements best describes

what happens in a mortgage loan transaction?: The
borrower gives the lender a note and a mortgage in
exchange for the funds.
38. Seller Kim tells her agent Greg that she would be
willing to accept $185,000 on her $205,000 listed
home. There are no offers on the property during the
6-month listing period and the listing expires.
Several weeks later when show- ing another home to
a buyer, Greg mentions that Kim would have
accepted less for her home. Which is true?: Greg has
violated the duty of confidentiality to Kim.
39. Seller Patsy wants to net $150,000 from the sale
of her home. She tells Broker Al that he can list the
property for whatever price he wants and anything
he gets above the $150,000 he can keep as his
commission. What is this agreement called?: Net
listing
40. The listing type that assures a broker that he or
she will receive compen- sation no matter who
procures the buyer is what kind of agreement?:
Exclu- sive-authorization-and-right-to-sell agreement
41. At a community meeting, Broker Amanda tells a
group of families in an established neighborhood that
several Indian families are planning to buy homes in
their neighborhood. She tells them that this action
could decrease their property values.Which
statement is true?: Amanda is guilty of blockbusting.

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42. Which of the following AIDA characteristics is

the most critical in the ad?: Capturing attention
43. Which one of these statements would not be
considered a measurable goal?: I will practice my
listing presentations.

44. ake and Janet are required to pay 4 points on the

$80,000 loan they are getting. What will they have to
pay the lender?: $3,200
45. Agent Will has had a listing with the Bryants for 6
weeks. They called Will's office and told the
secretary they are upset and need to speak with Will.
Which of these actions might have caused their
upset?: The Bryants have not received any feedback
from any showings in the past month.

46. Prospecting ends:: Never

47. Paul is filling out the Natural Hazard Disclosure
Statement. Which of the following conditions is Paul
not required to report on this form?: Lead-based
paint was used in the home.
48. Residential property includes all of the following
EXCEPT which?: Motel 49. Which of the following
would not qualify as a 1031 exchange?: A rental
condominium for a recreational vehicle
50. When doing research to recommend a reasonable
listing price for a home, the most critical part of the
research deals with analyzing:: Selling prices of
recently sold homes

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