Chapter 1 Quiz A

Question 1
A real estate agent can withhold material information from the other party
because they think it might confuse him or scare him off （False）

Question 2
A real estate agent can receive compensation from the seller even though
they signed a buyer representation agreement with the buyer （True）

Question 3
A real estate agent can represent both the buyer and the seller, with their written consent
（True）

Question 4
If a buyer’s agent receives compensation from the seller, the agent must
represent both the buyer’s interests and the seller’s interests in the
transaction. （False）

Question 5
Vicarious liability protects the principal from being sued for harm caused by the
principal’s agent. (False)

Question 6
A real estate agent can receive compensation for just introducing a buyer
and a seller (even though they don’t do any other work on the transaction).
(true）

Question 7
A real estate agent can disclose confidential information about a past client
that is helpful to a new client （False）

Question 8
A person can become another person’s agent without giving express consent to the agency.
（True）

Question 9
A real estate agent can use information from another agent’s visual
inspection of a property instead of doing their own inspection. （False）

Question 10
A buyer’s agent can only be compensated by the buyer. （False）
Question 11
A principal can be held liable for having knowledge of certain information even if
her agent never actually shared that information with her. （True）

Question 12
An agent’s fiduciary duties require him to put his principal’s interests before
all other interests, except for his own. （False）

Question 13
A finder or middleman owes fiduciary duties to both parties in a transaction.
（False）

Question 14
In California, it’s illegal for a real estate licensee to represent both parties in a real
estate transaction. （False）

Question 15
A real estate agent owes the duty of reasonable care and skill to the
principal only. （False）

Question 16
A seller’s agent may provide information about the property and
the neighborhood to a prospective buyer without violating her
fiduciary duties to the seller. （True）

Question 17
An agent is prohibited from disclosing confidential information about a
principal even after their relationship has ended. （True）

Question 18
A real estate agent can act in ways that contradict your agency
representation disclosure
（False）

Question 19
A real estate agent can Disclose material facts or latent defects, even if it
hurts the client’s chances of selling the property. （True）

Question 20
In California, a dual agency relationship is allowed only with the informed
written consent of both the buyer and the seller. （True）
Question 21
An inspection has revealed that the house you are trying to sell has termites
in the foundation. If your client asks you to keep that information
confidential, your fiduciary duty to the principal requires you to do so.
（False）

Question 22
Both an agent and the principal owe other parties a duty of honesty and
good faith. （True）

Question 23
A real estate agent can withhold material information from their principal
because they don’t want to upset her. （False）

Question 24
A real estate agent can have the parties sign the agency disclosure form and
agency confirmation statement at closing, to save time. （False）

Chapter 1 Quiz B (错 1 题)
Question 1
Which of the following situations does not involve dual agency?
A.A buyer and seller consent in writing to be represented by the same broker
B. A licensee introduces a seller to a prospective buyer without providing any
additional services
C. A listing agent gives advice to prospective buyers about pricing for their
offer
D. A broker employs both the selling agent, who is representing the buyer in
this transaction, and the listing agent

Question 2
A principal may be held liable for the actions of a real estate broker and a
broker’s salesperson under the doctrine of:
A. imputed knowledge 估算知道
B. caveat emptor
C. receivership
D. vicarious liability 替代责任

Question 3
Which of the following is not one of the common forms of real estate agency
relationships in California?
A. Seller agency
B. Dual agency
C. Net agency
D. Buyer agency

Question 4
The legal theory that makes a principal liable for all information her agent
has (even if the agent didn’t actually give the principal the information) is
called:
A. power of attorney
B. imputed knowledge
C. vicarious liability
D. virtual knowledge

Question 5
Because of the fiduciary duty of loyalty, an agent must:
A. keep confidential information from third parties
B. put the interests of third parties above his own interests
C. refuse net listings
D. keep secret profits out of the client’s trust account

Question 6
A buyer’s agent has a fiduciary duty to:
A. use utmost care, integrity and honesty, and loyalty when dealing with the
buyer
B. tell the buyer which title company to use
C. tell the seller the maximum price the buyer will pay for the property
D. advise the buyer on how best to take title

Question 7
A buyer’s agent may be compensated by: (赔偿金)
A. broker-paid fees only
B. both seller-paid and buyer-paid fees
C. buyer-paid fees only
D. seller-paid fees only

Question 8
An agency relationship can be terminated by: (Choose all that apply)
A. expiration
B. renunciation
C. revocation

Question 9
Under California law, all of the following would have to be disclosed as latent
defects except:
A. a deep scratch in the middle of the hardwood floor in the front hall
B. the property was the site of an illegal drug lab
C. the roof of the house leaks during heavy rains
D. indications of flooding found during an agent’s visual inspection

Question 10
When one agent represents both the buyer and seller in a transaction, it is
known as:
A. a conflict of interest
B. dual agency
C. a third party transaction
D. an in-house transaction

Question 11
In California, the written disclosure that specifies which party each agent is
representing in the transaction is called the:
A. agency confirmation statement （书面）
B. listing agreement
C. purchase agreement
D. agency disclosure form （口头）

Question 12
Which of the following would be considered a material fact that an agent
would be required to disclose?
A. The house was the site of a suicide five years ago
B. The roof leaks during rainy weather
C. The house was once rented by gang members
D. The house was once the headquarters for a doomsday cult

Question 13
Proper agency confirmation may be made: (Choose all that apply)
A. in a separate paragraph in the purchase agreement
B. in a separate document
C. anywhere in the purchase agreement

Question 14
California law requires an agent to give a copy of the agency disclosure form
to: (Choose all that apply)
A. both parties before the purchase agreement is signed
B. the buyer, before an offer to purchase is signed
C. the seller, before a listing agreement is signed

Question 15
An agent’s duty to disclose which party he is representing in a transaction is
owed to:
A. the buyer
B. Both the buyer and the seller
C. the seller

Chapter 1 Quiz C （17.5，错 3 题）

Question 1
You represent the seller. Which of the following could not be considered
confidential information?
A. The seller has already made an offer on another house
B. The basement is subject to flooding during winter rains
C. The sellers are divorcing and need a quick sale
D. The seller is facing bankruptcy

Question 2
At an open house, the listing agent begins giving advice to a prospective
buyer regarding how much to offer for the house, without explaining that she
represents the sellers. Which of the following statements is NOT true?
A. The agent has breached fiduciary duties to both parties
B. The agent is not acting in accordance with her agency status
C. The agent is acting as an undisclosed dual agent
D. The agent has not violated any duties, because she is not performing real
estate services for the buyers

Question 3
Which of the following is the customary method for compensating a buyer’s
agent?
A. Percentage of sales price, paid by buyer
B. Flat fee paid by buyer
C. Hourly rate
D. Commission split with listing agent

Question 4
Services a seller’s agent may lawfully provide to a buyer include all of the
following EXCEPT:
A. providing advice regarding an amount to offer the sellers
B. disclosing pertinent information about the property and neighborhood
C. presenting the buyer’s offer to the seller
D. helping the buyer secure financing

Question 5
In a real estate transaction, the law requires which persons to inspect the
property and disclose any latent defects they observe?
A. Seller
B. Listing agent only
C. Listing agent and selling agent
D. Buyer

Question 6
You represent the seller in a transaction. You receive a lowball offer from a
buyer that you represented several years ago when he was selling a
property. You know that he is wealthy and will be able to afford the full
amount. You may:
A. not tell the seller, unless you receive both parties’ consent to dual agency
B. tell the seller if the statute of limitations has run out on your agency
agreement with the buyer
C. tell the seller, since it’s in her best interest
D. not tell the seller, since you continue to owe the duty of confidentiality

Question 7
Which of the following isn’t an example of dual agency?
A. A seller’s agent provides advice to potential buyers, creating the
impression that he was acting in the buyers’ best interest
B. Both the buyer’s and seller’s agents work for the same broker
C. An agent represents both parties in a transaction with their written
consent
D. An agent represents a seller whom the agent represented as a buyer a
decade ago

Question 8
All of the following are potential benefits of buyer’s agency, EXCEPT:
A. duty of reasonable care and skill (对第三方的)
B. objective advice on properties
C. help with negotiation
D. confidentiality

Question 9
A person who has been authorized by another person to represent that
person in a transaction is a/an:
A. principal
B. fiduciary
C. agent

Question 10
At what point in a transaction should you disclose your agency status?
A. As soon as practical
B. After the parties sign the purchase agreement
C. At closing
D. When a party asks who you represent

Question 11
Alex is a salesperson who works for Bristol Real Estate. Alex is representing
Candace, who is selling her house. Alex negotiates with Dale, a prospective
buyer. In this scenario, Dale would be a/an:
A. customer
B. client
C. principal
D. agent

Question 12
In a dual agency, the duty of loyalty requires the agent to:
A. choose which party’s interest is the most important
B. disclose the negotiating positions of the parties
C. disclose all confidential information to both parties
D. take no action that is harmful to either party’s interest

Question 13
A dual agent owes the duty of loyalty to:
A. the seller
B. whichever party she began working with first
C. both parties
D. neither party

Question 14
Which of the following would be considered a material fact that an agent
would be compelled to disclose?
A. The house was the site of a suicide five years ago
B. The house was once rented by gang members
C. The roof leaks during rainy weather
D. The house was once the headquarters for a doomsday cult

Question 15
An agent receives an offer of $350,000 on a property that she has listed for
$355,000. When she is about to present the offer to the sellers, another offer
comes in for $300,000. She should:
A. present both offers at the same time
B. present the lower offer only if the sellers reject the higher offer
C. present the higher offer only after the sellers reject the lower offer
D. discard the lower offer, as it is clearly frivolous
Question 16
A real estate licensee who introduces the buyer and seller to each other, but
does not represent either party in the transaction, would be a:
A. finder
B. subagent
C. cooperating agent
D. dual agent

Question 17
Disclosure of and consent to a dual agency:
A. allow the agent to promote the interest of one party over that of another
party
B. are not required in a transaction where both agents work for the same
broker
C. must occur only after the parties sign the purchase agreement
D. must be in writing

Question 18
Which of the following is not a duty owed to every party in a transaction?
A. Honesty and good faith
B. Reasonable care and skill
C. Confidentiality
D. Agency disclosure

Question 19
In which of the following real estate transactions would a principal not be
vicariously liable for the actions of her agent?
A. An agent arranged a sale of a property without revealing latent defects,
from which the seller profited
B. An agent commingled the principal’s trust funds with the agent’s own
money
C. A principal instructed an agent not to mention a latent defect
D. A principal learned that an agent had not revealed a latent defect, and
approved the agent’s actions after the fact

Question 20
Which of the following is not a method of creating an agency relationship?
A. By ratification
B. By express agreement
C. By estoppel
D. By necessity

“Chapter Quiz D
[Link] listing agent knows that a suicide took place in the house four years
ago. A buyer asks the agent if he knows about any deaths that have
occurred on the property. The agent says he’s not aware of any. What duty
has the agent breached?
a. The duty to disclose material facts
b. The duty of reasonable care and skill
c. The duty of good faith and fair dealing
d. None; the agent acted properly

2. Which of the following property defects would not have to be disclosed to

buyers, even if the seller and his agent are aware of it?
a. There are some indications of past flooding in the basement
b. There’s a deep scratch in the middle of the hardwood floor in the front hall
c. The property was the site of an illegal drug lab, and chemical residues
may linger
d. The roof of the house leaks during heavy rains”

3. “The duty of accounting does not include which of the following responsibilities?
a. To disclose the terms of the listing salesperson’s share of the commission
b. To be able to account for all funds or valuables entrusted to the broker
c. To avoid commingling trust funds with the broker’s own funds
d. To report to clients on the status of all trust funds regularly

4. A buyer’s agent is most commonly compensated with a/an:

a. hourly rate
b. seller-paid commission split
c. retainer
d. flat fee

5. Which of the following situations clearly does not involve dual agency?
a. A listing agent gives advice to prospective buyers about how much to offer for the property
b. A licensee introduces a seller to a prospective buyer without providing further representation
c. A buyer and a seller consent in writing to be represented by the same broker”
d. “A broker employs both the selling agent, who is representing the buyer in this transaction,
and the listing agent”

6. “Because of the fiduciary duty of loyalty, an agent must:

a. keep secret profits out of the client’s trust account
b. put the interests of third parties above his own interests
c. keep confidential information from third parties
d. refuse net listings

7. Whether or not you have an agency relationship with a particular party in a transaction does
not affect:
a. whether that party may be held liable for your actions
b. the extent of the duties you owe to that party
c. whether your actions will be binding on that party
d. whether you are required to answer that party’s questions in good faith

8. Proper agency confirmation may be made:

a. anywhere in the purchase agreement
b. in a separate document
c. in a separate paragraph in the purchase agreement
d. Both b and c

9. Which of the following is not one of the basic types of real estate agency relationships in
California?
a. Net agency
b. Seller agency
c. Dual agency
d. Buyer agency

10. Which of the following situations involves a change from one type of agency relationship to
another?
a. A finder explains to the seller and the buyer that she is acting only as a facilitator in the
transaction
b. The buyer’s agent receives the selling broker’s share of the commission, even though the
commission was paid by the seller
c. A real estate agent representing a buyer helps the buyer make an offer on one of the agent’s
own listings
d. A buyer representation agreement provides that the buyer’s agent will accept a commission
split if available, but otherwise the buyer will pay the agent’s fee

Chapter 2 Quiz A
Question 1
With either an open listing or an exclusive agency listing, the property owner
won’t have to pay any broker a commission if the owner sells the property
himself. (True)

Question 2
A transfer disclosure statement must be used in “for sale by owner”
transactions. (True)

Question 3
To save time in filling out the transfer disclosure statement, it’s helpful to have the listing agent
fill out the seller’s portion of the form as well as the agent’s section. (False)
Question 4
A safety clause in a listing agreement protects the broker from liability for
false or misleading information provided by the seller. (False)

Question 5
Net listings are legal in California only if the agent discloses the amount of
the commission before the seller becomes committed to the transaction.
(True)

Question 6
In California, exclusive listing agreements cannot last for longer than one
year. (False)

Question 7
A buyer who decides to rescind a purchase agreement may do so within seven business days of
receiving a transfer disclosure statement. (False)

Question 8
A listing agreement can only be terminated by mutual agreement. (False)

Question 9
An agent must use a pre-printed MLS form to meet the requirement that a
listing agreement be in writing. (False)

Question 10
A seller may give a buyer copies of inspection reports in lieu of filling out a
transfer disclosure statement. (False)

Chapter 2 Quiz B. (18 out of 21,错 3 个)

Question 1
Under which kind of listing agreement will an agent be compensated only if
she is the procuring cause of the sale?
A. Exclusive agency listing
B. Open listing
C. Exclusive right to sell listing
D. Net listing

Question 2
The decision about the listing price for a property will ultimately be decided
by the:
A. appraiser
B. multiple listing service
C. seller
D. listing agent

Question 3
What protects a broker from liability for damages incurred as a result of
inaccurate property information provided by the seller?
A. Habendum clause
B. Safety clause
C. Keybox clause
D. Hold harmless clause

Question 4
A transfer disclosure statement is required for all of the following properties
except:
A. retail space in commercial district
B. a mobile home and the real property to which it is attached
C. a three-unit multi-family dwelling
D. a single-family home listed for sale by owner

Question 5
Which of the following would not be an adequate property description?
A. Street address
B. Government survey description
C. Attached copy of description in deed
D. Lot and block description

Question 6
If information in the listing agreement needs to be changed, who must give
written consent to the changes?
A. Seller only
B. Seller and buyer
C. Listing broker only
D. Seller and listing broker

Question 7
All of the following are legally required for a valid listing agreement except:
A. adequate property description
B. words of conveyance
C. in writing
D. signed by seller

Question 8
A listing agreement may be terminated in all of the following ways except:
A. abandonment 放弃
B. mutual agreement of the parties
C. death of the seller
D. renunciation by broke

Question 9
Which of the following is the maximum duration for listing agreements in the
state of California?
A. 30 days
B. Whatever period the broker and the seller agree on
C. 90 days
D. 180 days

Question 10
If the buyer breaches the purchase agreement and forfeits the good faith
deposit, typically the proceeds from the deposit will be used to pay any costs
incurred and the:
A. balance will go to the listing agent
B. remaining funds will go to the seller
C. remaining funds will be split evenly between the listing broker and the
selling broker
D. remaining funds will be split evenly between the listing broker and the
seller

Question 11 （难）
Transfer disclosure statement matches which of the following property
transactions below?
A. Sale of home built in 1970
B. Sale of property located in flood zone
C. Sale of home with special assessment lien
D. Duplex owner selling his interest to co-owner
E. Sale of residence located near military site
F. Condo owner selling unit

Question 12
All of the following statements regarding the multiple listing service provision
in a standard listing agreement are true except:
A. the MLS is responsible for verifying information provided by the seller
B. the broker will cooperate with other MLS agents to sell the property
C. the MLS is not a party to the transaction
D. information about the listing will be shared with other MLS agents

Question 13
“No disclosure required” matches which of the following property
transactions below? F？
A. Sale of home built in 1970
B. Sale of property located in flood zone
C. Sale of home with special assessment lien
D. Sale of residence located near military site
E. Condo owner selling unit
F. Duplex owner selling his interest to co-owner

Question 14
If a broker agrees to be compensated under a net listing agreement, the
broker must:
A. give the seller a right of rescission
B. have the arrangement approved by the Commissioner of Real Estate
C. disclose the actual commission amount before the seller is committed
D. disclose the commission arrangement to the buyer

Question 15
If a buyer receives a transfer disclosure statement in the mail, how many
days does he have to rescind the purchase agreement?
A. 7 days from the date when the seller signed the disclosure statement
B. 3 days from when buyer received the disclosure
C. 5 days from the date escrow was opened
D. 5 days from when the statement was mailed

Question 16
Lead-based paint disclosure matches which of the following property
transactions below?
A. Condo owner selling unit
B. Sale of home with special assessment lien
C. Duplex owner selling his interest to co-owner
D. Sale of home built in 1970
E. Sale of property located in flood zone
F. Sale of residence located near military site

Question 17
When a listing agreement contains a safety clause, the broker is protected
from:
A. a sale of the property in the period right after the listing expires
B. a suit against the broker by the buyer due to misinformation
C. an agreement to purchase seller’s home before buyer sells his property
D. the theft of property from the seller’s house when it is being shown

Question 18
If a property owner has to pay a broker a commission for any sale other than
a sale procured by the owner herself, they have signed a/an:
A. net listing
B. exclusive agency listing
C. open listing agreement
D. exclusive right to sell listing

Question 19
Natural hazard disclosure statement matches which of the following property
transactions below?
A. Sale of home with special assessment lien
B. Sale of residence located near military site
C. Condo owner selling unit
D. Duplex owner selling his interest to co-owner
E. Sale of home built in 1970
F. Sale of property located in flood zone

Question 20
Supplemental statutory disclosure form matches which of the following
property transactions below?
A. Sale of property located in flood zone
B. Sale of home built in 1970
C. Sale of residence located near military site
D. Duplex owner selling his interest to co-owner
E. Sale of home with special assessment lien
F. Condo owner selling unit

Question 21
Mello-Roos disclosure matches which of the following property transactions
below?
A. Sale of property located in flood zone
B. Condo owner selling unit
C. Duplex owner selling his interest to co-owner
D. Sale of home built in 1970
E. Sale of residence located near military site
F. Sale of home with special assessment lien

Chapter 2 Quiz C (19 out of 20)

Question 1
Under which type of listing will the seller owe a commission to the listing
agent regardless of who is the procuring cause of the sale?
A. Net listing
B. Exclusive right to sell
C. Exclusive agency
D. Open listing
Question 2
If a listing agreement contains a safety clause, this offers the broker
protection in the event of:
A. an agreement to purchase the seller’s home before the buyer has sold his
property
B. the sale of the property in the period after the listing expires
C. a suit against the broker by the buyer resulting from misinformation
provided by the seller
D. the theft of property from the seller’s house when it is being shown

Question 3
Which of the following is not a way in which a listing agreement may
terminate?
A. Mutual agreement between the parties
B. Renunciation by broker
C. Upon the death of the broker
D. Abandonment

Question 4
Under which of the following listings will an agent receive a commission only
if he is the procuring cause of the sale?
A. Exclusive right to sell
B. Exclusive agency
C. Open listing
D. Net listing

Question 5
A transfer disclosure statement would not be required in the sale of which of
the following properties?
A. Mobile home when sold along with the real property to which it is attached
B. Retail space in commercial district
C. Single-family home listed for sale by owner
D. Three-unit multi-family dwelling

Question 6
Which of the following persons is not authorized to sign a listing agreement?
A. A real estate broker on behalf of an out-of-state seller
B. An attorney in fact whose power of attorney has been recorded in the
county where the property is located
C. An officer of a corporation who has been authorized by the corporate
board of directors to list the property
D. Any partner in a general partnership

Question 7
All of the following are legal requirements of a valid listing agreement
EXCEPT:
A. in writing
B. signed by seller
C. words of conveyance
D. adequate property description

Question 8
A transfer disclosure statement isn’t required for a:
A. six-unit apartment building
B. mobile home
C. tri-plex
D. condo

Question 9
The listing agreement must be signed by the seller in order to satisfy which
law?
A. The agency disclosure laws
B. The statute of frauds
C. The property transfer disclosure laws
D. The real estate license law

Question 10
The most common means of compensation in a listing agreement is:
A. a percentage of the sales price
B. an hourly rate
C. a set dollar amount
D. all of the sales price above a specified amount

Question 11
Which of the following would not be an adequate property description?
A. Attached photocopy of description from deed
B. Lot and block description
C. Government survey description
D. Street address

Question 12
What information does California law require to appear in boldface type in all
listing agreements?
A. The broker will be listing the property with a multiple listing service
B. Net listings are discouraged, and the broker must disclose the commission
amount
C. The statute of frauds requires the listing agreement to be in writing
D. The amount or rate of commission is not set by law, and must be
negotiable
Question 13
Which of the following is the duration for listing periods in the state of
California?
A. Whatever the broker and seller agree upon
B. 30 days
C. 180 days
D. 90 days

Question 14
Which of the following clauses protects the broker against any liability for
damages incurred because of information given to the broker by the seller in
the listing agreement?
A. Habendum clause
B. Safety clause
C. Hold harmless clause
D. Keybox clause

Question 15
The decision of what listing price to set for the property ultimately rests with:
A. the multiple listing service
B. the seller
C. the listing agent
D. the appraiser

Question 16
The supplemental statutory disclosure form can be used if the seller needs to
disclose which of the following?
A. The property is located in a seismic hazard zone
B. The seller has new information that makes the transfer disclosure
statement inaccurate
C. An illegal controlled substance has been released on the property
D. The property is located in an area designated as a flood hazard area

Question 17
Which form asks for detailed information about the property that will be
submitted to the MLS?
A. Preliminary title report
B. Supplementary disclosure form
C. Agency confirmation statement
D. Listing input sheet 上市输入表

Question 18
Which of the following statements regarding the multiple listing service
provision of a standard listing agreement is NOT correct?
A. The MLS is not a party to the transaction
B. The MLS is responsible for verifying information provided by the seller
C. The broker will cooperate with other MLS agents to sell the property
D. Information about the listing will be shared with other MLS member
agents

Question 19
What is the main difference between the natural hazards disclosure
statement and the real property transfer disclosure statement?
A. The transfer disclosure statement is required for all properties, while the
natural hazards disclosure is only for residential properties
B. The transfer disclosure statement is limited to information that the seller
has, while the natural hazards disclosure requires additional research
C. The transfer disclosure statement is filled out by the seller, while the
natural hazards disclosure is filled out by local authorities
D. The transfer disclosure statement is the seller’s responsibility, while the
natural hazards disclosure is the buyer’s responsibility

Question 20
If information on the listing agreement must be changed, who must provide
written consent?
A. Seller and buyer
B. Seller and listing broker
C. Listing broker only
D. Seller only

“Chapter Quiz D

1. One disadvantage of an open listing agreement is that it:

a. does not state the broker’s compensation as a fixed amount
b. requires the agent to put more effort into marketing the property
c. may lead to a dispute over which agent was the procuring cause, if the seller gives the listing
to more than one broker
d. prevents sellers from listing their property with as many brokers as they want

2. Which of the following types of listings offers the listing agent the greatest protection?
a. Open listing
b. Exclusive agency listing
c. Exclusive right to sell listing
d. Non-exclusive listing

3. A typical listing agreement form does not authorize the broker to:
a. act as the agent of the seller
b. accept good faith deposits from prospective buyers on behalf of the seller
c. accept an offer to purchase the property
d. submit offers to purchase to the seller

4. A hold harmless clause:

a. protects the listing broker, in that the seller takes responsibility for the information she
provided to the broker
b. relieves the agent from liability for any theft or damage during an open house
c. states that the seller will pay the agent’s attorney’s fees if the seller loses a legal dispute with
the agent regarding payment of a commission
c. contains a warranty that there are no undisclosed encumbrances against the property

5. “A transfer disclosure statement:

a. is considered part of the listing agreement
b. is considered part of the purchase contract between the seller and the buyer
c. provides warranty protection to a buyer who acts in reliance on the statement
d. reflects the seller’s knowledge of the condition of the property and the title

6. A safety clause might provide that:

a. the seller must pay a commission if the property is sold within the extension period to a
buyer you negotiated with during the listing period
b. the seller will not owe you a commission if the property is listed with another broker during
the extension period
c. the provision will not be enforceable unless you give the seller a list of all potential buyers
you negotiated with during the listing period
d. All of the above

7. Which of the following disclosures does not require a separate disclosure form?
a. Disclosure that the property is in a flood hazard zone
b. Disclosure of a Mello-Roos lien
c. Disclosure of presence of lead-based paint
d. Disclosure that the house has not been seismically retrofitted

8. The purpose of a listing input sheet is to:

a. explain the agency relationships of MLS members to the seller
b. allow the MLS to verify the accuracy of information about the listing
c. gather information about the property for publication in MLS databases
d. disclose information the seller is required to give to the buyer

9. With respect to the transfer disclosure statement, all of the following statements concerning
the buyer’s rights are true, except:
a. if the buyer rescinds the purchase agreement based on the disclosure statement, she gives
up her good faith deposit
b. the buyer can rescind the purchase agreement if she does not like something in the
disclosure statement, no matter how trivial
c. the buyer has three days after personal delivery of the disclosure statement to accept it or
rescind the purchase agreement
d. if the seller fails to provide a disclosure statement, the transaction is still valid but the seller
may be liable for any damages suffered by the buyer as a result

10. If new information comes to light that makes the transfer disclosure statement inaccurate,
the:
a. seller is required to take action to fix the problem so that the disclosure statement is
accurate again
b. seller does not have to give the buyer an amended disclosure statement if he can correct the
problem so that the original statement is accurate again
c. buyer must accept the amended disclosure statement if she accepted the original disclosure
statement
d. buyer has the right to rescind the purchase agreement after the sale closes”

Chapter 3 Quiz A
Question 1
Although a salesperson doesn’t refuse to work with minority buyers, he
schedules appointments at inconvenient times and cancels appointments
frequently. These actions violate the Unruh Civil Rights Act. (True)

Question 2
A listing states that a half-percent rebate of the seller’s commission will be
paid to the selling salesperson as a bonus. The listing agent can pay this
bonus directly to the selling salesperson. (False)

Question 3
A salesperson has a limited marketing budget, so she decides to place the
advertisements for a property located in a primarily Latino neighborhood
only in a few Spanish-language publications. Although her motivation is
financial, not discriminatory, her actions are still illegal. (True)

Question 4
The federal Fair Housing Act applies to the sale or lease of commercial
buildings. (False)

Question 5
To comply with the Americans with Disabilities Act, a listing agent or a seller
may be required to modify a home to make it accessible to the disabled.
(False)
Question 6
A discount broker who charges 4% for commissions opens a new office. Other brokers in the
area make a joint decision not to send any referrals to the new broker. This is an example of
illegal price fixing under the Sherman Act. (False)

Question 7
Asbestos was once commonly used in insulation and roofing materials, and it
generally is not hazardous in its intact condition. (True)

Question 8
The Clean Water Act regulates liability for hazardous waste cleanup, and it
also created a fund to facilitate that process. (False)

Question 9
Someone who violates housing discrimination laws may be ordered to sell or
lease the property to the injured party. (True)

Question 10
Examples of geologic hazards that a real estate agent should be aware of
include underground storage tanks, mold, and radon gas. (False)
environmental hazards

Chapter 3 Quiz B (19.67 out of 22)

Question 1
Which of the following is protected class under the federal Fair Housing Act?
(Choose all that apply)
A. Gender
B. Familial status
C. National origin

Question 2
Under this law, no development is allowed in a coastal zone without a permit
from the appropriate local government agency.
A. Clean Water Act
B. California Coastal Act
C. Mold
D. Radon
E. Asbestos
F. Urea formaldehyde
G. Lead-based paint

Question 3
This can grow in damp, unexposed areas inside a house, causing respiratory
problems for those who are particularly susceptible.
A. Radon
B. Mold
C. Urea formaldehyde
D. Clean Water Act
E. Lead-based paint
F. Asbestos
G. California Coastal Act

Question 4
A seller lists her home for sale, and her broker subsequently submits to her a
full-price offer from a ready, willing, and able buyer. The seller refuses the
offer and tells the broker it’s because the buyer is black. The broker may:
(Choose all that apply)
A. sue the seller for his full commission
B. inform the buyer of his right to file a complaint with HUD
C. tell the seller that she is in violation of the Fair Housing Act

Question 5
A broker’s office is located in a diverse part of a city, but all of the pictures in
his marketing materials contain white models only, with a small Fair Housing
logo in the corner. Could this broker be open to a possible discrimination
lawsuit under fair housing laws?
A. No, because fair housing laws require discriminatory intent, and the fair
housing logo is evidence there’s no intent to discriminate
B. Yes, because the lack of diversity in the broker’s models could give the
impression that the housing isn’t open to everyone
C. Yes, because the fair housing logo should be more prominently displayed
on materials, to show the broker’s commitment to fair housing
D. No, because pictures in real estate advertising are optional (so no law
applies)

Question 6
This carcinogenic gas, associated with underground uranium deposits, can
enter a house through cracks in foundations or floor drains.
A. Asbestos
B. Lead-based paint
C. Mold
D. California Coastal Act
E. Urea formaldehyde
F. Clean Water Act
G. Radon

Question 7
A real estate broker refuses to represent a paraplegic buyer, citing the
difficulty in locating an appropriate house for her. He could be punished
under all of these laws except:
A. Unruh Civil Rights Act
B. Federal Fair Housing Act
C. Fair Employment and Housing Act
D. Americans with Disabilities Act

Question 8
A landlord needs to rent two apartments. Because he believes married
couples and single women tend to be better tenants, he decides to charge a
higher security deposit for single men. He also places a newspaper ad
stating “Women and married couples only.” Which of the following
statements is true?
A. The newspaper ad violates the Fair Housing Act
B. Neither of these actions violate the Fair Housing Act
C. The higher security deposit violates the Fair Housing Act
D. Both the security deposit and the ad violate the Fair Housing Act

Question 9
What carcinogenic substance must be enclosed or encapsulated to prevent
its disintegration and inhalation?
A. Urea formaldehyde
B. Radon
C. Lead-based paint
D. Asbestos

Question 10
What federal law assigns liability for the cleanup of sites contaminated by
hazardous waste, and established a fund to help pay for those expenses?
A. Clean Water Act
B. FIRPTA
C. CERCLA
D. NEPA

Question 11
A multiple listing service issues a listing agreement form on which the
commission rate is pre-printed. This would be considered:
A. price fixing
B. a tie-in arrangement
C. market allocation
D. a group boycott
Question 12
An agent is inspecting the exterior of a property on a hillside, and notices
cracks in the soil, areas of slumping ground, and tilting trees. These are
warning signs the property is at risk for:
A. flooding
B. earthquakes
C. landslides
D. radon

Question 13
Which of the following accommodations is not exempt from the requirements
of the Fair Employment and Housing Act?
A. An apartment tenant subletting an extra bedroom
B. A condominium whose bylaws only allow married couples to own units
C. A homeowner renting space to a boarder

Question 14
This law assigns cleanup costs associated with properties contaminated with
hazardous waste.
A. Asbestos
B. Radon
C. Mold
D. CERCLA
E. Urea formaldehyde
F. Lead-based paint
[Link] Water Act

Question 15
Which of the following methods of advertising is legal?
A. Only asking current tenants, who are mostly white, to refer friends
B. Only advertising in an ethnic newspaper
C. Only asking current tenants to refer minority friends
D. Only asking white tenants to refer their friends

Question 16
This chemical, sometimes found in items made of pressed wood materials,
can cause cancer and breathing problems.
A. Mold
B. Radon
C. Clean Water Act
D. California Coastal Act
E. Lead-based paint
F. Urea formaldehyde
G. Asbestos
Question 17
Ingestion of this substance, which hasn’t been used since the 1970s, can
cause brain damage, especially in small children.
A. Radon
B. Urea formaldehyde
C. Clean Water Act
D. Mold
E. Asbestos
F. California Coastal Act
G. Lead-based paint

Question 18
Broker Bill specializes in listings in a particular neighborhood. He may
lawfully refuse to accept a listing agreement in that area for which of the
following reasons?
A. The seller is a minority and most of the residents in that area are white
B. The seller’s price is substantially above fair market value
C. The home is listed in a particular area with mostly minority residents

Question 19
Under CERCLA, liability for clean-up expenses for hazardous waste disposal
can be imposed on: (Choose all that apply)
A. previous property owners
B. current property owners

Question 20
A real estate broker agrees to manage a property for its owner, but only on
the condition that the owner list the property with the broker when he
decides to sell it. This is a violation of the:
A. Interstate Land Sales Full Disclosure Act
B. Fair Housing Act
C. Sherman Act
D. Mann Act

Question 21
A real estate agent who only rents to women is in violation of the Unruh Civil
Rights Act. Which of the following penalties could be imposed? (Choose all
that apply)
A. Cease and desist order
B. Out-of-pocket expenses
C. Damages for emotional distress

Question 22
Once commonly used in insulation and roofing material, this can cause lung
cancer if disintegrated particles are inhaled.
A. Radon
B. Asbestos
C. Mold
D. Lead-based paint
E. Urea formaldehyde
F. Clean Water Act
G. California Coastal Act

Chapter 3 Quiz C (20 out of 20)

Question 1
Which of the following statements from an advertisement would most likely
be considered discriminatory?
A. Safe neighborhood with hard-working people
B. Close-knit Asian neighborhood
C. Neighborhood with traditional values
D. Desirable and prestigious location

Question 2
A landowner and the government agree upon a Habitat Conservation Plan
before the landowner begins development of a subdivision. What law is the
landowner complying with?
A. CERCLA
B. California Coastal Act
C. Endangered Species Act
D. NEPA

Question 3
A salesperson is listing a property in a mostly Latino neighborhood that is
owned by Latino sellers. He advertises the property in several Spanish-
language community newspapers, thinking the most likely buyers would
already be renting in the neighborhood. What additional step would best help
him avoid charges of discrimination?
A. Distribute flyers around the neighborhood
B. Mail Spanish-language flyers to other Latino neighborhoods
C. Go door-to-door in the neighborhood and ask residents to refer potential
buyers to him
D. Advertise the property in newspapers of general circulation

Question 4
An agent is inspecting the exterior of a property on a hillside, and notices
cracks in the soil, areas of slumping ground, and tilting trees. These are
warning signs that the property is at high risk for:
A. flooding
B. radon
C. earthquakes
D. landslides

Question 5
Miguel is a new salesperson for Imperial Realty. Dissatisfied with the lack of
mentoring he has received, he decides to work for Millennium Real Estate
instead, and has his license transferred. At the time of the switch, he had
listed two properties. What happens to his listings?
A. The listings will stay with Imperial Realty, but when the properties sell,
Imperial will still compensate Miguel directly
B. The commission will be divided on a prorated basis between Imperial and
Millennium
C. Miguel can keep the listings; they belong to him
D. Miguel cannot keep the listings; they belong to Imperial Realty

Question 6
A real estate broker agrees to manage a property for its owner, but only on
the condition that when the owner decides to sell, he must list the property
with the broker. This would be a violation of the:
A. Interstate Land Sales Full Disclosure Act
B. Mann Act
C. Sherman Act
D. Fair Housing Act

Question 7
Salesperson Dana works for the brokerage Paulson Realty. Dana is
representing Irving in the sale of his house. Irving rejects an offer from a
ready, willing, and able buyer that meets the terms of the listing agreement.
Dana decides to sue Irving for her commission. Which of the following is
true?
A. Only Dana may sue Irving
B. Only Paulson may sue Irving; if the brokerage wins, it should give Dana
her share
C. There is no basis for a lawsuit against Irving
D. Dana and Paulson may join together in a suit against Irving

Question 8
What carcinogenic substance must be enclosed or encapsulated to prevent
its disintegration and inhalation?
A. Lead-based paint
B. Urea formaldehyde
C. Radon
D. Asbestos

Question 9
What law states that a private landowner may fill or drain wetlands only after
receiving a proper permit?
A. Clean Water Act
B. California Coastal Act
C. CEQA
D. Endangered Species Act

Question 10
A real estate broker refuses to represent a paraplegic buyer, citing the
difficulty in locating an appropriate house for her. He could be punished
under all of these statutes, except the:
A. Unruh Civil Rights Act
B. Fair Employment and Housing Act
C. Americans with Disabilities Act
D. Fair Housing Act

Question 11
What federal law assigns liability for the cleanup of sites contaminated with
hazardous waste, and created a fund to facilitate cleanup?
A. Clean Water Act
B. NEPA
C. FIRPTA
D. CERCLA

Question 12
Which of the following accommodations is not exempt from the requirements
of the Fair Employment and Housing Act?
A. A nonprofit fraternal organization renting an apartment only to members
of the organization
B. A condominium whose bylaws only allow married couples to own units
C. A single-family, owner-occupied home renting space to one boarder
D. A church-owned apartment complex that only accepts church members as
tenants

Question 13
Two brokers in a small community felt that another local broker was
unethical and dishonest. They agreed not to send him any referral business,
and encouraged other area brokers to do the same. They could be accused
of:
A. price fixing
B. a group boycott
C. a list-back arrangement
D. extortion

Question 14
Which of the following actions would be characterized as steering?
A. Charging a higher rent for non-white tenants than for white tenants
B. Refusing to show properties in white neighborhoods to buyers of other
races
C. Warning homeowners about people from a particular race moving into a
neighborhood in order to generate listings
D. Refusing to lend money in particular neighborhoods, based on their racial
composition

Question 15
A salesperson obtains several listings by going door-to-door in a
neighborhood and warning residents that property values will drop once
members of another race begin moving into the neighborhood. This would be
considered:
A. inducement
B. undue influence
C. blockbusting
D. steering

Question 16
Which of the following actions would not be a violation of California’s
antidiscrimination laws?
A. Requiring a larger downpayment from an African-American buyer
B. Refusal to make a counteroffer because the offeror is African-American
C. Refusal to make a counteroffer in response to a clearly frivolous offer
D. Making a more extensive inquiry into the financial condition of an African-
American loan applicant

Question 17
A multiple listing service issues a listing agreement form where the
commission rate is pre-printed. This would be considered:
A. a tie-in arrangement
B. false advertising
C. a group boycott
D. price fixing

Question 18
Which of the following actions would not be a violation of antidiscrimination
laws?
A. Failure to clarify fair housing laws when a client makes a racist joke
B. Showing Mexican-American buyers only homes in Mexican-American
neighborhoods, under the assumption that’s where they would be most
comfortable
C. Encouraging a homeowner to list her property before people of other
races begin moving into a neighborhood
D. Providing a truthful response to a buyer’s inquiries about the racial
composition of a neighborhood

Question 19
Which of the following is not a protected class under the federal Fair Housing
Act?
A. National origin
B. Sex
C. Citizenship status
D. Familial status

Question 20
Disclosure of what potentially harmful substance is important, since it tends
to grow out of sight in damp, enclosed spaces?
A. Urea formaldehyde
B. Mold
C. Radon
D. Asbestos

“Chapter Quiz D

1. Salesperson Jackson and Salesperson Robinson work for the same broker,
Stellar Properties. They’ve both worked closely with a particular buyer. When
that buyer finally purchases a house, Stellar Properties receives the selling
broker’s share of the commission and pays Jackson half of it. Jackson then
gives half of her share of the commission to Robinson. This is:
A. legal, because once a commission share has been paid to a salesperson,
she is entitled to do whatever she wants with it
b. legal, because agents are allowed to share compensation if they work for
the same broker
c. illegal, because a broker can share a commission only with another
licensed broker
d. illegal, because a commission split must be handled by the broker or
brokers involved

2. Violations of the Rumford Act are investigated by the:

a. Department of Real Estate
b. Department of Fair Employment and Housing
c. Department of Housing and Urban Development
d. California Coastal Commission
3. Which of the following is not an example of illegal steering?
a. An agent working with a buyer who has a disability calls his attention to a
property with modifications that meet his needs
b. An agent avoids showing an unmarried buyer houses in neighborhoods
where most residents are married couples with children
c. An agent working with a white couple doesn’t tell them about homes in
predominantly minority neighborhoods
d. An agent working with a minority couple doesn’t tell them about homes in predominantly
white neighborhoods

4. Your advertising for residential properties should always include:

a. models from the same ethnic group as the residents of the neighborhood you are advertising
in
b. models of a different ethnic background from the residents of the neighborhood you are
advertising in
c. the Equal Housing Opportunity logo or slogan
d. a specific explanation of the standards of the community

5. Which of the following actions is most likely to be considered discriminatory?

a. When a white buyer asks about the racial composition of a neighborhood, an agent truthfully
answers that it is predominantly minority
b. The listing agent for a home in a predominantly minority neighborhood decides to advertise
only in the neighborhood newspaper because he thinks other minorities are most likely to be
interested in the home
c. A brokerage uses a marketing plan to let minority buyers know about properties in
predominantly white neighborhoods that they might not otherwise be aware of
d. A white couple expresses a desire not to be shown homes in a minority neighborhood, and
their agent complies with their request

6. Which of the following is an example of price fixing?

a. A listing broker and a selling broker discuss a commission split in a cooperative sale
b. An agent making a listing presentation tells the seller that she is asking for a 7% commission,
but emphasizes that the commission is negotiable
c. A broker holds a staff meeting with her sales agents to discuss commission rates for the office
d. A broker is having lunch with two other brokers and mentions that he is raising his
commission rate, but there is no further discussion of the matter

7. Which law requires an environmental impact report (EIR) for projects that
may have a significant effect on the environment?
a. California Environmental Quality Act
b. California Coastal Act
c. Clean Water Act
d. CERCLA
8. Which environmental law requires developers to obtain a permit from the
U.S. Army Corps of Engineers?
a. Clean Water Act
b. Endangered Species Act
c. National Environmental Policy Act
d. California Coastal Act

9. Asbestos is found:”
a. wherever uranium is deposited in the earth’s crust
b. in some older floor tiles and roofing material
c. in the adhesives used in some pressed wood building materials
d. in underground storage tanks

10. Under the Americans with Disabilities Act:

a. it is illegal to discriminate against disabled people in residential
transactions
b. places of public accommodation must provide equal access to disabled
people
c. all commercial facilities and places of public accommodation must have
elevators
d. All of the above”

Chapter 4 Quiz A (全对)

Question 1
A lot that’s steeply sloped will generally be more desirable and valuable than
a gently sloped lot, because it is more likely to have a good view. (False)

Question 2
A cash equivalent transaction is one in which the financing terms were
standard for the community. (True)

Question 3
In the event of a low appraisal, an agent should contact the appraiser
directly with his complaints. (False)

Question 4
When the market has been sluggish, it’s okay to use a comparable that sold
11 months ago for your CMA, without making adjustments. (False)

Question 5
Cost, price, and value all describe essentially the same thing. (False)
Question 6
The subjective value placed on a property by the person who uses it is
known as its value in exchange. (False)

Question 7
“The most probable price which a property should bring in a competitive and
open market” is the definition of market value. (True)

Question 8
If an owner sold a property to his nephew without an MLS listing, but with the
assistance of an attorney, it took place under normal conditions. (False)

Question 9
A competitive market analysis works because a buyer generally won’t pay
more for a particular property than she would have to pay for an equally
desirable substitute property. (True)

Question 10
A competitive market analysis (CMA) is also known as an appraisal. (False)

Chapter 4 Quiz B (13 of 15)

Question 1
Which of the following categories of comparable properties on a CMA form is
useful to the extent that it sets an upper bound on the price range, by
indicating what buyers are not willing to pay for a house with those
characteristics?
A. Foreclosure sales
B. Recent sales
C. Expired listings
D. Current listings

Question 2
Which of the following terms describes the objective value a property has to
an informed buyer in the open market?
A. Value in use
B. Value in exchange
C. Market value

Question 3
To help determine an appropriate listing price for a property an agent will
perform a/an ___, which is related to but less rigorous than a/an ____.
A. CMA/appraisal
B. CMA/reconciliation
C. appraisal/CMA
D. valuation/CMA

Question 4
Which of the following features would add the most value to a home?
A. Open carport
B. Attached garage 附设车库
C. Detached garage 独立车库
D. Enclosed carport

Question 5
A bathroom with sink and toilet, but no shower or bathtub, is a:
A. three-quarter bath
B. design deficiency
C. half-bath
D. full bath

Question 6
Which of the following appraisal methods is a competitive market analysis
based on?
A. Sales comparison approach
B. Cost approach
C. Replacement approach
D. Income approach

Question 7
A transaction used financing terms that are standard for the community and
did not affect the price paid for the property. This is known as:
A. an arm’s length transaction
B. cash equivalent financing
C. a purchase money loan
D. market value

Question 8
To be used as a comparable, a property should: (Choose all that apply)
A. be of a similar age, quality, and condition as the subject property
B. be in the same neighborhood as the subject property, or in a similar
neighborhood
C. have sold within the last six months, if possible

Question 9
Which of the following properties would most likely be the most valuable?
A. A property 80 feet wide and 100 feet deep, with 80 feet of river frontage
B. A triangular property that is 120 feet on one side, 160 feet on another
side, and 200 feet on the third side
C. A property 80 feet wide and 100 feet deep, on a steep slope
D. A property that is 80 feet wide and 120 feet deep

Question 10
The cost of a property is the:
A. amount a seller received for the property when there was no undue
pressure
B. amount of money the seller paid to obtain the property
C. market value of the property
D. most probable price the property would bring on the open market

Question 11
The decision regarding an appropriate listing price ultimately rests with the:
A. seller
B. agent
C. lender
D. appraiser

Question 12
The subject property is a 2,000 square foot home with 8 rooms. The most
similar comparable would probably be:
A. a 2,000 square foot home with 8 rooms in the same neighborhood that
sold in a foreclosure sale two months ago
B. a 2,100 square foot home with 9 rooms in the same neighborhood that
sold two months ago
C. a 1,900 square foot home with 8 rooms in the same neighborhood that
sold ten months ago
D. a 2,000 square foot home with 8 rooms in a different neighborhood that
sold two months ago

Question 13
Which of the following would not be considered a design deficiency in a
house?
A. Bedrooms open into living room
B. Bedroom only accessible through another bedroom
C. Dining room not accessible from kitchen
D. Back door opens into kitchen

Question 14
If a property receives a low appraisal, an agent may try to close the deal by:
(Choose all that could apply)
A. getting the seller to reduce the sales price
B. asking the buyer to make a larger downpayment
C. requesting a reconsideration of value from the lender
Question 15
Which of the following is not a valued characteristic in a neighborhood?
A. High level of conformity
B. Gently rolling topography
C. High level of owner occupancy
D. High level of vacancies

Chapter 4 Quiz C (全对)

Question 1
The decision of what price to set for a home ultimately belongs to the:
A. agent
B. seller
C. appraiser
D. lender

Question 2
If a property receives a low appraisal, an agent may try to salvage the sale
by: (Choose all that apply)
A. requesting a reconsideration of value
B. having the buyer make a larger downpayment
C. having the seller lower the sales price to the appraised value

Question 3
A bathroom has a sink and toilet only. This would be described as a:
A. full bath
B. one-quarter bath
C. three-quarter bath
D. half bath

Question 4
A house has a living area on its main floor of 1,500 square feet. The
unfinished basement is also 1,500 square feet, while the garage is 600
square feet. What should a real estate agent performing a competitive
market analysis list the square footage as?
A. 3,000 square feet
B. 3,600 square feet
C. 2,100 square feet
D. 1,500 square feet

Question 5
To determine an appropriate listing price for a property, an agent will
perform a/an _, which is related to but less rigorous than a/an ___.
A. valuation/CMA
B. appraisal/CMA
C. CMA/appraisal
D. CMA/reconciliation

Question 6
Which of the following phrases describes the objective value that would be
placed on a property by a buyer in an open market? Choose all that apply
A. Value in use
B. Market value
C. Value in exchange

Question 7
Which of the following is not a step in preparing a competitive market
analysis?
A. Choose comparable properties
B. Gather information about the subject property’s improvements
C. Calculate the replacement cost of the subject property
D. Gather information about the subject property’s neighborhood

Question 8
An appraiser is adjusting the price of comparables to use them in his report.
Comparable A is a three-bedroom house with an in-ground swimming pool; it
is valued at $275,000. Comparable B is a four-bedroom house with no pool; it
is valued at $280,000. If the value of an additional bedroom is $20,000, what
is the value added by a pool?
A. $10,000
B. $5,000
C. $15,000
D. $20,000

Question 9
The subject property has three bedrooms, no hot tub, and no fireplace.
Comparable A has three bedrooms, a hot tub, and no fireplace; it is valued at
$310,000. Comparable B has four bedrooms, a hot tub, and no fireplace; it is
valued at $360,000. Comparable C has four bedrooms, a hot tub, and a
fireplace; it is valued at $370,000. Which of the following would an appraiser
find is the likeliest value for the subject property?
A. Under $310,000
B. Over $370,000
C. Between $310,000 and $360,000
D. Between $360,000 and $370,000

Question 10
Which of the following is not an example of a nuisance?
A. Freeway noise
B. Frequent heavy fog
C. Only one bathroom for three bedrooms
D. Odors from nearby sausage factory

Question 11
The agent is short of good comparables and notices a foreclosure in the
neighborhood. The agent:
A. can use the foreclosure as a comparable if it has the same room count,
style, and appeal of the subject property
B. can use the foreclosure as a comparable after adding 10% to its price
C. can’t use the foreclosure as a comparable unless the subject property is
also a foreclosure
D. can freely use the foreclosure as a comparable

Question 12
To use a property as a comparable, it should: (Choose all that apply)
A. be in the same neighborhood as the subject property
B. be of a similar age and quality as the subject property
C. have sold within the last six months

Question 13
Which of the following is likeliest to be considered a sale under normal
conditions?
A. A sale from parents to a son
B. A sale by a seller who has been transferred by her employer to a different
state
C. A sale to an institutional investor who will use the property as a rental
D. A sale by a seller facing foreclosure

Question 14
A competitive market analysis may contain all of the following, except:
A. active listings
B. expired listings
C. cost to construct similar property
D. recent similar sales

Question 15
Which of the following is not a desirable characteristic in a neighborhood?
A. High level of conformity
B. High level of owner-occupancy
C. Gently rolling topography
D. High level of vacancies
Question 16
A transaction uses financing terms that are standard for the community and
that did not affect the price paid for the property. This is known as:
A. a purchase money loan
B. cash equivalent financing
C. an arm’s length transaction
D. market value

Question 17
The cost of a property is:
A. the most probable price a property would receive in a fair sale in an open
market
B. the amount of money the seller paid to originally obtain the property
C. the amount a seller received for the property when not affected by undue
stimulus
D. the market value of the property

“Chapter Quiz D

1. An appraisal is:
the same as a competitive market analysis
b. the same as a broker price opinion
c. a more casual estimate of value than a CMA
d. a more rigorous estimate of value than a CMA

2. A competitive market analysis (CMA) is an effective way to estimate value

because:
a. an informed buyer acting free of pressure will not pay more for a property
than she could pay for another property that is equally desirable
b. a buyer will never pay more than market value for a property
c. it takes more neighborhoods into account when evaluating the property
d. the income method of appraisal is the most reliable way to value
residential property

3. Which of the following is true about neighborhood characteristics?

a. The boundaries are defined by the county planning board
b. Neighborhood characteristics set the upper limit of value for the properties
located there
c. Neighborhood characteristics do not affect the value of vacant lots located
there
d. A neighborhood’s effect on property values is determined by the most
expensive properties located there

4. What kind of topography is considered most desirable for a residential

neighborhood?
a. Level
b. Sloping
c. Gently subsiding
d. Mildly rolling

5. A bathroom with a sink and toilet, but no shower or bathtub, is a:

a. half bath
b. three-quarter bath
c. full bath
d. design deficiency

6. Which of the following is a common design deficiency?

a. More bathrooms than bedrooms
b. Bedrooms not separated by bathroom or closets
c. Bedrooms not visible from living room
d. Kitchen too close to garage

7. Which of the following is an example of “normal market conditions”?

a. The seller of the property is the buyer’s uncle, but both the buyer and the
seller are being advised by attorneys
b. The seller of the property is the buyer’s aunt, but the buyer and the seller
are represented by different brokers
c. The seller is relocating to take a new job, so she lets her employer take
care of selling the house for her
d. The seller finds a buyer after the property has been on the market for two
months and the buyer has been looking in this area for some time

8. Which of the following elements might make it necessary to adjust the

listing price recommended by the CMA software?
a. Seller’s property has poor layout
b. Value in use
c. Cost
d. Calm market”

9. Your CMA software suggests a listing price range with an expected sales
price based on five comparables you viewed in person. The comparables are
all in good condition. However, your seller has lived in his house for more
than 30 years and has not kept the property maintained at all. Which
statement concerning the CMA price recommendation makes the best sense
when discussing the CMA during a listing presentation?
A. Computer analysis is very accurate and takes into account all relevant
factors, so we should use the suggested price range as is
b. The MLS prohibits changing the price range recommended by CMA
software
c. The CMA software can’t look inside your house and doesn’t evaluate
factors like condition, layout, and views; given the condition of your house, it
might be wise to shift the asking price downward
d. We need to bring this house up to tip-top condition before putting it on the
market or it won’t sell at all

10. To have the best chance of succeeding with a request for reconsideration
of value, you should use:
a. exactly the same comparables as the appraiser
b. the income approach to value
c. only currently listed properties as comparables
d. comparable sales that are more like the subject property than the
appraiser’s comparables

Chapter 5 Quiz A. (14 of 17)

Question 1
Which term below match this definition: “When an agent finds a buyer for a
FSBO”
A. FSBO
B. One-party listing
C. Floor duty
D. Triggering terms
E. Preapproval
F. Farming
G. Endless chain
H. Cold calls
I. Diversity
J. Centers of influence

Question 2
An agent can have his unlicensed assistant hold an open house if the agent
is too busy.
A. False
B. True

Question 3
People who are looking for smaller homes because their children have grown
up and moved out are referred to as trade-up buyers.
A. False
B. True

Question 4
Which term below match this definition: “Agent serving public contacts and
visitors”
FSBO
Centers of influence
Farming
Triggering terms
Endless chain
Cold calls
Diversity
Floor duty
Preapproval
One-party listing

Question 5
Which term below match this definition: “People with clout or connections”
Floor duty
Endless chain
FSBO
One-party listing
Triggering terms
Centers of influence
Cold calls
Farming
Preapproval
Diversity

Question 6
Which term below match this definition: “Variety in floor plans, sizes, and
prices in an area”
Centers of influence
Diversity
Preapproval
Endless chain
Cold calls
Floor duty
Triggering terms
One-party listing
Farming
FSBO

Question 7
First meetings with clients should take place at the agent’s office or in a
public place.
A. False
B. True
Question 8
Which term below match this definition: “Financial information that makes
other disclosures necessary”
Preapproval
Floor duty
Centers of influence
One-party listing
Diversity
Farming
Endless chain
Triggering terms
FSBO
Cold calls

Question 9
It’s usually a waste of time for agents to try do business with homeowners
who are offering their property “For Sale by Owner.”
A. True
B. False

Question 10
Which term below match this definition: “Agreeing to loan a buyer a
particular amount of money”
FSBO
Cold calls
Preapproval
Farming
Centers of influence
Diversity
Endless chain
Triggering terms
Floor duty
One-party listing

Question 11 ???
An agent should recommend that prospective buyers get preapproved as
soon as possible.
A. False
B. True

Question 12
An agent should bring an agency disclosure form, a listing agreement, and a
net proceeds estimate to a listing presentation.
A. True
B. False

Question 13
Which term below match this definition: “A property being sold without an
agent”
Preapproval
One-party listing
Diversity
Cold calls
Floor duty
Triggering terms
Centers of influence
Farming
FSBO
Endless chain

Question 14
If a listing agreement is set to expire but the seller and the agent believe
they are close to making a sale, they can agree to extend the contract for a
few more weeks without bothering with a written amendment.
A. True
B. False

Question 151 pts

Which term below match this definition: “Prospecting, with no prior
relationship or connection”
Farming
Triggering terms
Endless chain
Centers of influence
FSBO
Cold calls
Preapproval
Floor duty
Diversity
One-party listing

Question 16
An agent can delegate more tasks to a licensed assistant than an unlicensed
assistant.
A. False
B. True

Question 17
Which term below match this definition: “Concentrating client cultivation in a
specific area”
Endless chain
Centers of influence
Diversity
Floor duty
Preapproval
Triggering terms
One-party listing
Cold calls
FSBO
Farming

Chapter 5 Quiz B (全对)

Question 1
Before showing properties to a prospective buyer, the agent should: (Choose
all that apply)
A. preview the neighborhoods
B. preview the listings
C. choose a maximum of five or six homes for each showing

Question 2
An unlicensed real estate assistant may perform all of the following tasks
except:
A. scheduling an open house
B. copying, distributing, and filing transaction documents
C. updating listing information on broker’s website
D. answering questions about home’s price or financing options

Question 3
A homeowner preparing his home for sale should do all of the following
except:
A. fix broken fences and railings
B. replace worn carpeting
C. repaint interior in bright primary colors
D. mow lawn and prune trees

Question 4
When a buyer’s agent prepares an offer on behalf of his client, the next step
is to:
A. meet with the seller to present the offer and answer any questions
B. give the offer to his broker, who will schedule a meeting with the seller
C. give the offer to the listing agent to present to the seller
Question 5
Before making a listing presentation, an agent should: (Choose all that
apply)
A. visit the property to observe its features and qualities
B. complete a competitive market analysis form
C. complete a net proceeds to seller form

Question 6
When an agent obtains a listing, the first thing she should do is:
A. prepare a weekly activity report
B. hold an open house
C. enter the listing into the MLS

Question 7
If a listing broker receives multiple offers for a property at the same time,
she should:
A. give the seller the offer that’s closest to the asking price
B. present all offers to the seller
C. ask prospective buyers to write letters explaining why their offer is best

Question 8
Once an agent has found a prospective buyer, the next thing the agent
should do is:
A. take the buyer to see homes in the neighborhood
B. enter the buyer’s information into the MLS
C. preapprove the buyer
D. determine the buyer’s needs

Question 9
Servicing a listing typically involves all of the following except:
A. advertising the property
B. making cold calls
C. showing the property
D. installing a keybox

Question 10
Current homeowners with growing families are often referred to as:
A. trade-up buyers
B. novices
C. retirees
D. empty-nesters

Question 11
All of the following statements about open houses are true, except:
A. open houses aren’t a very efficient way to sell a house
B. a licensed assistant can do open house tours without violating the license
law
C. sellers should secure valuable property before an open house
D. sellers should be available during an open house, to answer questions

Question 12
The best indication of a property’s value is:
A. recently sold properties
B. expired listings
C. current listings

Question 13
“Triggering terms” that activate disclosure requirements under the Truth in
Lending Act include:
A. broker commission rate
B. downpayment amount
C. APR

Question 14
What prospecting method is a good listing source for agents, because the
owner has already demonstrated an interest in selling the property? (Choose
all that apply)
A. FSBOs
B. Expired listings
C. Cold calling

Question 15
Which method of finding listings is a long-term process that involves a close
association and a lot of visibility within a particular neighborhood?
A. Cold calling
B. Expired listings
C. FSBOs
D. Farming

Chapter 5 Quiz C
Question 1
An agency disclosure must be made to the buyer:
A. only once negotiations have begun
B. as soon as the buyer walks into the agent’s office
C. before the buyer signs an offer
D. at any point before a sale closes
Question 2
Showing a buyer properties that are outside of her budget:
A. typically increases the buyer’s agent’s commission
B. usually results in a sale
C. is recommended by most agents
D. may discourage the buyer from finding an affordable home

Question 3
Before listing their home for sale, it’s a good idea for sellers to:
A. remodel the kitchen
B. repaint the exterior a bright color
C. move the most fragile and expensive furniture into the main living areas
D. remove small valuable items from the home

Question 4
All of the following are typical tasks of a real estate assistant, except:
A. negotiating a counteroffer
B. maintaining transaction files
C. sending out mailings
D. answering phones

Question 5
A net proceeds to seller form is used to:
A. show buyers what they can expect to spend
B. estimate the property’s likely sale price
C. show sellers how much cash they are likely to receive from the sale

Question 6
What type of information should be conveyed in a listing agent’s regular
progress reports to the seller? (Choose all that apply)
A. Inquiries regarding the property
B. Summary of showings and open houses
C. Advertising for the listing

Question 7
Which of the following is a method commonly used by agents to generate
listings? (Choose all that apply)
A. Cold calling
B. Referrals
C. Farming

Question 8
Servicing a listing typically involves all of the following except:
A. installing a keybox
B. getting the seller preapproved
C. advertising the property
D. holding an open house

Question 9
For safety reasons, it’s good policy for real estate agents to:
A. make sure that keyboxes are used properly
B. All of these answers are correct
C. work with another agent when showing properties
D. ask visitors to an open house to sign the guest book

Question 10
Young, inexperienced buyers with limited funds are typically:
A. first-time buyers
B. retirees
C. empty-nesters
D. trade-up buyers

“Chapter Quiz D

1. Agent Kalliwaki spends one hour every day randomly calling 20

homeowners to ask if they are interested in selling their homes. This practice
is known as:
a. farming
b. cold calling
c. FSBO-ing
d. showing

2. An agent sees that another firm’s listing will expire soon, and she’d like to
list that property herself. The agent should:
a. contact the current listing agent and ask for an assignment of the listing
before it expires
b. wait until after the current listing expires before contacting the sellers
about listing their home with her firm instead
c. contact the sellers as soon as possible and persuade them to terminate
the current listing agreement
d. send the sellers a letter pointing out the current agent’s mistakes and
shortcomings

3. An agent should bring all of the following to a listing appointment, except

for a:
a. listing agreement
b. marketing plan
c. seller’s net sheet
d. loan estimate form”

4. The following ad is placed in a local newspaper: “Fixer-upper going cheap. Two bedrooms,
one bathroom. Good foundation and plumbing, but needs a lot of TLC. Seller offers financing
with small downpayment.” This ad:
a. violates the Truth in Lending Act
b. must include the APR of the seller financing
c. complies with the Truth in Lending Act
d. must include the interest rate of the seller financing

5. The house isn’t selling, and the listing agent thinks a price reduction is necessary. Which of
the following is correct?
a. Any change in the listing price must be approved in advance by the MLS
b. A listing agreement typically authorizes the agent to change the price during the listing term
c. The agent will have to persuade the seller to sign a listing modification
d. Unless the seller agrees to lower the price, the agent is required to terminate the listing

6. Open houses:
a. often generate potential buyers for other listings
b. should be conducted with the sellers present
c. are held just before the listing is submitted to the MLS
d. are a good way to determine what repairs need to be completed before the house will sell

7. Agent Brown receives two offers on the same house in the same hour. One offer is full price;
the other is $25,000 below the listing price. Which of the following is correct?
a. Brown must submit both offers to the seller immediately
b. Brown should submit only the most advantageous offer to the seller
c. Brown has the authority to accept the best offer on behalf of the seller
d. Brown must submit the best offer immediately, but can wait until the following day to submit
the less advantageous offer

8. Now that the Knolls’ youngest child has moved out, they are looking for a smaller house with
easier upkeep. They can afford a significant downpayment using the equity from their current
house. The Knolls would be considered:
a. first-time buyers
b. trade-up buyers
c. empty-nesters
d. retirees

9. Which of the following is not a precaution that agents should take?

a. Warn sellers to remove valuable items from the home prior to showing
b. Request that customers meet them at the property rather than at their office
c. Work in pairs when showing properties or holding open houses, if possible
d. Tell their office where they are going and when they will return

10. An unlicensed real estate assistant is permitted to perform all of the following tasks, except:
a. maintaining information in transaction folders
b. preparing flyers for mass mailings
c. coordinating appointments
d. discussing the features or condition of the kitchen with potential buyers at an open house

Chapter 6 Quiz A
Question 1
Even after a binding contract has been formed, the parties may modify the
terms of the agreement with an amendment to the contract.
False
True

Question 2
Which term below match this definition: “The seller’s option before any offer
has been accepted.”
A. Multiple counteroffers
B. Revocation of offer
C. Contingent counteroffer
D. Counteroffer
E. Good faith deposit
F. Deposit receipt
G. Backup offer
H. Contingency

Question 3
An agent may encourage a seller to back out of a contract with a first buyer
in order to accept a second offer that is more profitable for them both.
Group of answer choices
True
False

Question 4
Which term below match this definition: “A qualified acceptance of an offer.”
A. Counteroffer 有条件的接受
B. Revocation of offer
C. Multiple counteroffers
D. Deposit receipt
E. Contingency
F. Good faith deposit
G. Contingent counteroffer
H. Backup offer

Question 5
If a cancellation form is used to terminate an agreement, the good faith
deposit will automatically be returned to the buyer.
Group of answer choices
False
True

Question 6
A buyer’s offer to purchase real property must be in writing.
Group of answer choices
True
False

Question 7
Which term below match this definition: “An offer that’s contingent on the
failure of a prior sales contract.”
Group of answer choices
Counteroffer
Multiple counteroffers
Deposit receipt
Backup offer
Contingent counteroffer
Revocation of offer
Contingency
Good faith deposit

Question 8. ???
Which term below match this definition: “A condition that must be met in
order for the transaction to proceed, such as obtaining suitable financing.”
Group of answer choices
Good faith deposit ❌
Contingent counteroffer
Deposit receipt ❌
Contingency 意外应急
Revocation of offer
Multiple counteroffers
Counteroffer
Backup offer ❌

Question 9
Which term below match this definition: “Money a buyer provides when
making an offer, to demonstrate her commitment to the transaction to the
seller.”
Group of answer choices
Deposit receipt
Multiple counteroffers
Good faith deposit
Counteroffer
Contingency
Contingent counteroffer
Revocation of offer
Backup offer

Question 10
Which term below match this definition: “Another name for a purchase
agreement.”
Group of answer choices
Good faith deposit
Revocation of offer
Multiple counteroffers
Contingency
Deposit receipt
Counteroffer
Contingent counteroffer
Backup offer

Question 11
A seller has rejected a number of full-price offers from different minority
buyers. An agent who observes this should notify his broker immediately.
Group of answer choices
True
False

Question 12
An agent should present any new offer to a seller immediately, even if it is
clearly less desirable than other offers already presented.
Group of answer choices
True
False

Question 13
Which term below match this definition: “Withdrawal before acceptance.”
Group of answer choices
Backup offer
Multiple counteroffers
Deposit receipt
Good faith deposit
Counteroffer
Revocation of offer
Contingency
Contingent counteroffer

Question 14
Which term below match this definition: “The seller’s option when another,
more favorable, offer is received after she has accepted a previous offer.”
Group of answer choices
Counteroffer
Multiple counteroffers
Backup offer
Good faith deposit
Contingent counteroffer
Deposit receipt
Contingency
Revocation of offer

Chapter 6 Quiz B
Question 1
A buyer delivers an offer by fax. Which of the following is true?
Group of answer choices
A. The seller must deliver the acceptance by fax
B. The seller may deliver the acceptance by fax or any other reasonable
means
C. The seller must deliver the acceptance to the buyer’s attorney
D. The seller may accept the offer over the telephone

Question 2
A listing agent receives three offers on a house on the same morning. The
first two offers are for $4,000 and $5,000 less than the listing price, while the
third offer is $20,000 less than the listing price. The agent should:
Group of answer choices
A. submit the offers to the seller in the order they were received
B. hold back the third offer since it will be unattractive to the buyer
C. submit all three offers to the seller as soon as possible
D. submit the offers to the seller according to how attractive they are

Question 3
A buyer may revoke an offer to purchase until the point when:
Group of answer choices
A. the termination date on the offer has been reached
B. the offer has been submitted to the seller
C. her offer has been accepted and the acceptance has been communicated
to her
Question 4
A listing agent encourages his client to accept a higher offer from another
buyer, and breach the contract he has entered into with a previous buyer.
The agent and the seller will both receive more money from the second offer.
The agent: (Choose all that apply)
Group of answer choices
A. could be liable for any financial harm caused by his actions
B. should advise the seller to seek legal counsel before taking any action
C. may have committed tortious interference with a contractual relationship

Question 5
In which of the following situations would the buyer not be entitled to a
return of his good faith deposit?
Group of answer choices
A. The home inspector finds a termite infestation and the buyer is unwilling
to waive the inspection contingency
B. The sale is contingent on the buyer receiving financing, but no lender will
provide a loan
C. The buyer is unable to sell his current home in time to satisfy the
contingency
D. The buyer is transferred to a new job in another city, and must withdraw
from the transaction

Question 6
Which of the following is not a requirement for a valid offer?
Group of answer choices
A. It must express a willingness to contract
B. It must be definite and certain in its terms
C. It must be notarized
D. It must be in writing

Question 7
When a counteroffer is made:
Group of answer choices
A. the original offer is amended acceptance is signed
B. the offeror is accepting the terms without modification
C. the offeree becomes the offeror
D. the offeree can later go back and accept the original offer

Question 8
Bill phones Sandy and offers her $300,000 for her property. Sandy says that
would be acceptable. Bill fills out a purchase agreement and signs it. Before
he can put it in the mail, though, Sandy phones Bill and say that she has
accepted a better offer instead. Which of the following is true?
Group of answer choices
A. Bill’s offer and Sandy’s acceptance were not valid because they were not
in writing, so she is free to accept another offer
B. Sandy formed a contract with Bill upon her oral acceptance of his offer
C. Sandy has formed a contract with both Bill and the second buyer, and is
liable to both
D. Bill’s offer was valid, but Sandy’s oral acceptance was not valid so she
may accept another offer

Question 9
A counteroffer:
Group of answer choices
A. is used when a buyer wants to make an offer when the seller has already
accepted an offer
B. is used to cancel a previously existing contract
C. is used only to make an offer contingent on a particular event
D. acts as a rejection of the initial offer

Question 10
River Valley Realty works with a large number of Asian-American buyers, and
routinely instructs its agents to show them properties in a neighborhood with
a large Asian-American concentration, on the assumption that the buyers
would be most comfortable there. This practice is known as:
Group of answer choices
A. redlining
B. blockbusting
C. commingling
D. steering

Question 11
A buyer makes an offer and the seller accepts it, but then the transaction
collapses. Which of the following forms should be used to ensure that the
parties’ contractual obligations to each other have been terminated?
Group of answer choices
A. Cancellation agreement （已进行了一部分，取消）
B. Counteroffer
C. Contingency
D. Contract amendment

Question 12
In a sale of an owner-occupied home, in order for a buyer’s good faith
deposit to be treated as liquidated damages, all of the following
requirements must be met, except:
Group of answer choices
A. the deposit must be a certified check and placed in a neutral escrow
within five days after receipt
B. no more than 3% of the purchase price can be subject to forfeiture as
liquidated damages
C. the liquidated damages clause must be separately signed or initialed by
the parties
D. the liquidated damages clause must be in either 10-point bold type or 8-
point red type

Question 13
Which of the following payment methods is most preferred for a good faith
deposit?
Group of answer choices
A. Personal check
B. Promissory note
C. Cash
D. Bill of sale

Question 14
A buyer would make a backup offer if:
Group of answer choices
A. she wants to respond to the seller’s counteroffer
B. she wanted the offer to be contingent on the sale of the house she
currently owns
C. the seller had already accepted an offer from another buyer
D. she was waiving a contingency from her original offer

Question 15
A purchase agreement authorizes the selling agent to hold a good faith
deposit check uncashed until the seller accepts or rejects the offer. If the
seller accepts the offer, how long does the selling agent have to deposit the
check into her broker’s trust account?
Group of answer choices
A. One week
B. Two business days
C. One business day
D. Three business days

Chapter 6 Quiz C
Question 11 pts
An agent advises a seller who has accepted an offer from a buyer to breach
the contract and accept a higher offer from another buyer. The agent will
receive a larger commission as a result. The agent could be: (Choose all that
apply)
Group of answer choices
A. guilty of tortious interference with a contractual relationship
B. liable for any financial harm caused by his actions
C. subject to disciplinary action by the licensing authority

Question 2
A real estate licensee may draw up a contract for a party to a transaction
without engaging in the unauthorized practice of law:
Group of answer choices
A. when preparing a standard pre-printed purchase agreement form
B. when acting as a dual agent
C. if that party is being represented by a different licensee
D. when charging a separate fee for the services

Question 3
A salesperson may handle a good faith deposit in all of the following ways,
except:
Group of answer choices
A. deposit the check into the brokerage trust account within three days
B. hold the check uncashed until the offer is accepted
C. have the buyer make the deposit directly to an escrow agent
D. deposit the check into her personal account within three days

Question 4
An agent representing a Latino family of buyers overhears that a particular
seller is strongly prejudiced and will reject any offer from a minority family.
Not wanting to provoke a confrontation, the agent does not tell the buyers
that the house is available. Which of the following statements is true?
Group of answer choices
A. The agent’s actions were legal, since he was trying to avoid putting the
buyers into a situation where they would be discriminated against
B. The agent’s actions were illegal, since he refused to show a property
based on discriminatory considerations
C. The agent’s actions were legal, since he did not specifically tell the buyers
that he could not show them the house
D. The agent’s actions were illegal; this is an example of steering

Question 5
If the buyer and seller do not agree on who should get the good faith deposit,
the broker holding the deposit should:
Group of answer choices
A. leave the funds in the trust account until the buyer and seller reach an
agreement
B. turn the funds over to the escrow agent
C. file a lawsuit called an interpleader action and deposit the funds with the
court
D. divide the deposit evenly between the buyer and seller

Question 6
A buyer makes and signs a written offer. The seller writes in one small
change to the offer and signs it. This document is known as a/an:
Group of answer choices
A. amendment
B. modification
C. counteroffer
D. addendum

Question 7
Which of the following is not a requirement that must be met for the parties
to treat the good faith deposit as liquidated damages?
Group of answer choices
A. The liquidated damages clause must be in either 10-point bold type or 8-
point red type
B. The good faith deposit must be at least 5% of the purchase price
C. The liquidated damages clause of the purchase agreement must be
separately signed or initialed by the parties
D. The good faith deposit may not exceed 3% of the purchase price

Question 8
A transaction collapses after the buyer makes an offer and the seller accepts
the offer. Which of the following forms would be appropriate to use to ensure
that the parties’ legal duties to each other have terminated?
Group of answer choices
A. Cancellation agreement
B. Counteroffer
C. Contract amendment
D. Contingency

Question 9
Which of the following practices would NOT be an illegal discriminatory
action?
Group of answer choices
A. Using a different, longer prequalification form for African-American buyers
under the assumption that they are more likely to default
B. Failing to transmit an offer from an Asian buyer to the seller of a property
in an all-white neighborhood
C. Always assigning minority buyers to work with minority agents
D. Referring a buyer to a Spanish-speaking colleague after the buyer
expressed a preference to work with a Spanish-speaking agent
Question 10
All of the following are potential disadvantages (for the seller) of accepting a
very small good faith deposit, except:
Group of answer choices
A. The seller will have to sue in order to recover a significant amount of
money from the buyer in the event of default
B. The seller will not have a large deposit as consolation if the transaction
fails
C. The buyer will not be deterred from walking away from the sale if a better
opportunity arises
D. The buyer will lose a significant amount of money if he causes the
transaction to fail

Chapter Quiz D

1. Which of the following statements about an offer to purchase real property is true?
a. The offer needs to be in writing, but the acceptance does not
b. Both the offer and the acceptance must be in writing
c. Neither the offer nor the acceptance needs to be in writing, but the deed to transfer title
must be in writing
d. The offer does not have to be in writing, but the acceptance must include all of the terms of
the offer

2. Which of the following statements about preparing an offer to purchase is true?

a. The buyer cannot write her own offer without engaging in the unauthorized practice of law
b. A real estate agent may write special clauses for the parties as long as they are inserted into
a pre-printed form written and approved by attorneys
c. A real estate agent may not prepare an offer if he is also representing one of the parties
d. A real estate agent may be held liable for losses resulting from the agent’s negligence in
preparing an offer

3. A contingent counteroffer would be appropriate when:

a. the seller has already signed a purchase agreement, and then receives an attractive offer
from another buyer
b. the seller wants to accept the buyer’s offer, but modify some of the terms
c. the buyer wants to accept the seller’s counteroffer, but isn’t sure if he’ll qualify for financing
d. the seller has received multiple offers and wants to withdraw her previous counteroffer to
one buyer and accept another buyer’s offer

4. The seller’s acceptance would be effective (so that the buyer could no longer withdraw his
offer) in all of the following situations, except when the seller:
a. accepts the buyer’s offer over the phone
b. accepts the offer using electronic signature and delivery to the buyer’s agent
c. sends the buyer the signed form as an email attachment
d. hand delivers the signed form to the buyer’s agent

5. Once it has been signed by both the buyer and the seller, a purchase agreement can be
modified only if:
a. a contingency clause is not fulfilled
b. the buyer accepts the seller’s counteroffer in writing
c. both parties agree to the modifications in writing
d. the seller failed to disclose certain information he was legally required to disclose”

6. Which of the following is least likely to be found in a cancellation agreement?

a. A safety clause
b. A notice to the backup buyer
c. An agreement to allow the listing and selling brokers to share the good faith deposit in lieu of
a commission
d. The signatures of both parties

7. After accepting a good faith deposit from a buyer, you are required to tell the seller:
a. what form the deposit is in
b. if the deposit is a postdated check
c. the amount of the deposit
d. All of the above

8. If you accept cash as a good faith deposit, you:

a. may have violated your firm’s policy
b. must use the cash to purchase a certified check, to prevent the funds from being lost or
stolen
c. should have the buyer’s receipt notarized
d. may face disciplinary action for violating the Real Estate Law

9. Many purchase agreement forms have a provision allowing the broker to hold a check for the
good faith deposit for a specified period without depositing it in a trust account. One advantage
of this is that:
a. it gives the seller more time to consider the offer”
b. the broker can simply return the check to the buyer if the offer is rejected
c. it ensures that the buyer has sufficient funds in her account
d. the check can be postdated by a week or more

10. A buyer signs a purchase agreement for a duplex that she intends to occupy. If she forfeits
the good faith deposit as liquidated damages for breach of the purchase agreement:
a. the full amount of the deposit will be split between the selling broker and the listing broker in
lieu of a commission
b. any amount in excess of 3% of the purchase price must be refunded to the buyer
c. any amount in excess of $10,000 must be refunded to the buyer
d. the seller will be entitled to keep the entire amount, less any expenses incurred by the listing
broker

Chapter 7 Quiz A
Question 1
The buyer submits a promissory note as the good faith deposit, then
breaches the contract without justification. After mediation, the seller brings
a legal action against the buyer and wins a judgment in her favor. She may
also recover attorney’s fees and court costs from the buyer.
Group of answer choices
True
False

Question 2
When the parties agree that the seller will keep the good faith deposit if the
buyer breaches the contract, this is known as ______.
Group of answer choices
A. Legal action
B. Attorney’s fees
C. Liquidated damages
D. Arbitration
E. Mediation

Question 3
A party who doesn’t sign an arbitration provision will retain the right to
take ______.
Group of answer choices
A. Liquidated damages
B. Legal action
C. Arbitration
D. Mediation
E. Attorney’s fees

Question 4
Decisions rendered during ______ are binding on all parties, with no
opportunity to appeal.
Group of answer choices
Arbitration
Legal action
Mediation
Liquidated damages
Attorney’s fees
Question 51 pts
The terms of compensation for the brokers must be contained in the
purchase agreement.
False
True

Question 6
A lender will usually require a structural pest control inspection to be
performed by a licensed inspector.
True
False

Question 7
Under the terms of some mediation provisions, if a party takes legal action
before attempting to have the dispute mediated, he may end up forfeiting
his claim for ______.
Liquidated damages
Mediation
Arbitration
Legal action
Attorney’s fees

Question 8
The purchase agreement often provides that if the buyer breaches, and
forfeits the good faith deposit, the listing agent may be provided up to half of
the liquidated damages amount to cover the selling commission.
False
True

Question 9
In ______, a neutral third party tries to help the parties resolve their dispute
before legal action is taken.
Group of answer choices
Arbitration
Mediation
Attorney’s fees
Liquidated damages
Legal action

Question 10
The government may impose certain requirements or retrofit standards, such
as bracing water heaters. The party who must pay the cost of compliance is
designated by law.
True
False

Question 11
Transferring possession to the buyer before closing will not affect the seller’s
ability to market the property if something goes wrong with the transaction.
False
True

Question 12
A binding provision that determines which items will be included in or
excluded from a sale may be in either the listing agreement or the purchase
agreement.
False
True

Chapter 7 Quiz B (13.67 of 15)

Question 1
Which of the following would be the most accurate and unambiguous way to
describe a property in a purchase agreement?
A. Tax Parcel No. 4832050, Monterey County
B. All of my lands in Monterey County
C. 9037 Edgewater Road, Monterey, CA, 93940
D. Lot 17, Block 3 of Potts Addition, as recorded in Monterey County

Question 2
If someone has a power of attorney to sign a purchase agreement on behalf
of the seller, which of the following is the proper way to sign?
Group of answer choices
A. Phil Adams, by Alice Jackson, his Attorney in Fact
B. Alice Jackson, Attorney in Fact for the seller
C. Phil Adams, by his Attorney in Fact
D. Phil Adams, Seller

Question 3
The seller elects not to initial the liquidated damages paragraph in the
purchase agreement form, to keep her choice of remedies open. If the buyer
defaults on the transaction, which of the following would be a course of
action open to the seller? (Choose all that apply)
Group of answer choices
A. Accept a voluntary forfeiture of the good faith deposit by the buyer
B. Sue the buyer for specific performance
C. Sue the buyer for actual damages
Question 4
The purchase agreement must include a disclosure about Megan’s Law. What
information is contained in this disclosure?
Group of answer choices
A. A list of the names and addresses of any registered sex offenders living in
the area
B. Information about safety rules for conducting an open house
C. The requirement that the purchase agreement must contain clear, easy-
to-understand language
D. Information about the registered sex offender database

Question 5
How are costs allocated between the buyer and the seller?
Group of answer choices
A. Party receiving bill is obligated to pay it
B. Local custom and negotiation between the parties
C. Party responsible determined by real estate laws
D. All costs are prorated between the parties

Question 6
In which dispute resolution method does a neutral third party help the
parties reach a mutually acceptable solution?
A. Arbitration
B. Negotiation
C. Mediation
D. Trial by combat

Question 7
The parties must separately initial the appropriate section in the purchase
agreement if they want to use which form of dispute resolution?
A. Mediation
B. Lawsuit
C. Arbitration
D. Appeal

Question 8
Which of the following is true of the liquidated damages provision in a
purchase agreement?
Group of answer choices
A. The damage amount must be at least 3% of the sales price
B. Both parties must initial the liquidated damages paragraph for the
language to apply
C. The seller may collect punitive damages in addition to the deposit
D. Liquidated damages are not allowed in residential transactions
Question 9
Which type of issue normally requires an addendum to the purchase
agreement?
Group of answer choices
A. Attorney’s fees
B. Receipt for good faith deposit
C. Disposition of liquidated damages
D. Sale of buyer’s house contingency

Question 10
If the buyer or seller has to bring suit to enforce a purchase agreement, the
prevailing party will normally be entitled to:
Group of answer choices
A. liquidated damages
B. statutory award of $5,000
C. attorney’s fees
D. punitive damages

Question 11
The seller of a property is a corporation. Who may sign the purchase
agreement?
Group of answer choices
A. The chief executive officer for the corporation
B. Any member of the corporation’s board of directors
C. Any officer of the corporation
D. A corporate officer who has been authorized by the board of directors

Question 12
All of the following are typical contingencies in a purchase agreement
except:
A. buyer’s final verification of condition prior to closing
B. buyer’s ability to obtain financing at terms specified in agreement
C. buyer’s inspection of property and approval of condition (with repairs)
D. buyer’s ability to sell current home

Question 13
When choosing a closing date, all of the following should be considered,
except:
A. inspections of the property and repairs that may be necessary
B. the amount of time the buyer needs to save a downpayment
C. contract obligations the parties will need to fulfill
D. time for the buyer to apply for a loan and have the application processed
Question 14
Which of the following items will be included in a real property transaction?
Group of answer choices
A. All items not specifically listed as excluded items
B. Fixtures
C. Items listed as being included in the listing agreement
D. Items advertised as being included in the marketing materials

Question 15
Which of the following documents should be prepared if the seller wants to
keep possession of the property for a few days after the closing date?
A. Receipt for increased deposit
B. Sale of buyer’s home contingency
C. Backup offer
D. Rental agreement

Chapter 7 Quiz C
Question 1
A Cooperating Broker Compensation Agreement form is used to:
Group of answer choices
A. pay the seller’s broker based on the terms of the listing agreement
B. pay the buyer’s broker based on the terms of the buyer representation
agreement
C. handle a commission split
D. allow the seller to compensate a broker even if that broker does not
represent the seller

Question 2
All of the following are typically contingencies in a purchase agreement
except:
Group of answer choices
A. buyer’s ability to obtain financing at terms specified in the purchase
agreement
B. appraisal of the property at no less than the purchase price
C. buyer’s approval of the condition of the property
D. buyer’s final verification of condition prior to closing

Question 3
The seller wants to stay on in the house for two weeks after closing; the
buyer should: (Choose all that apply)
Group of answer choices
A. consult with an attorney
B. allow this under no circumstances
C. have the seller sign a rental agreement

Question 4
Which of the following items will ordinarily be included in a real property
transaction?
Group of answer choices
A. Fixtures and fittings
B. All items not specifically listed as excluded in the purchase agreement
C. Items advertised as being included items in the marketing materials
D. Items listed as included items in the listing agreement

Question 5
In choosing a closing date, you should take all of the following into account
except:
Group of answer choices
A. contract obligations that the parties will need to fulfill
B. inspections of the property and repairs that may be necessary
C. how long the buyer needs to save for a downpayment
D. time for the buyer to apply for a loan and have the application processed

Question 6
The buyer wants to move in three days before closing. This poses risks
because: (Chose all that apply)
Group of answer choices
A. if the sale fails to close, and the buyer refuses to leave, a court eviction is
necessary
B. such an arrangement is rarely legal
C. damage or injury caused by the tenant (the buyer) may not be covered by
insurance

Question 7
Your buyer has found a house she likes, but doesn’t have enough funds
available to make a significant good faith deposit. She has a CD maturing in
a week that will give her more cash. Which of these is probably the best way
for the buyer to proceed?
Group of answer choices
A. Wait to make an offer until she has the funds for the good faith deposit
B. Make an offer with a small deposit, and a promise to increase the deposit
once the CD matures
C. Don’t tell the seller the amount of the deposit
D. Use a postdated check as her good faith deposit

Question 8
The purpose of the Buyer’s Inspection Advisory form is to:
Group of answer choices
A. inform the buyer of the importance of conducting a thorough inspection
B. create an inspection contingency
C. allow the seller to disclose any latent defects in the property
D. disclose problems observed during the real estate agent’s visual
inspection of the property

Question 9
Which of the following would be the most clear and unambiguous way to
describe a property on a purchase agreement?
Group of answer choices
A. All of my lands in Monterey County
B. Tax Parcel No. 4832050, Monterey County
C. Lot 17, Block 3 of Potts Addition, as recorded in office of recorder of
Monterey County
D. 9037 Edgewater Road, Monterey, CA, 93940

Question 10
Generally, how many days does the Notice to Buyer to Perform give the
buyer to remove a contingency?
Group of answer choices
A. 3
B. 2
C. 10
D. 7

Question 11
The parties initial the liquidated damages paragraph in the purchase
agreement. The buyer defaults on the transaction. Which of the following is a
remedy that the seller can pursue?
Group of answer choices
A. Arbitration
B. Lawsuit for actual damages
C. Forfeiture of the good faith deposit

Question 12
Which of the following is not an element that should be included in every
purchase agreement?
Group of answer choices
A. Identification of parties
B. List of liens and encumbrances the buyer will assume or take title subject
to
C. Agent’s commission rate
D. Stated price and method of payment

Question 13
Which type of financing requires a separate addendum in addition to the
purchase agreement?
Group of answer choices
A. Seller financing
B. Adjustable-rate loan
C. FHA or VA loan
D. All cash offer

Question 14
If someone has a power of attorney to sign the purchase agreement on
behalf of the seller, which of the following would be the proper way to sign?
Group of answer choices
A. Philip Adams, by his attorney in fact
B. Philip Adams, by Alice Jackson, his attorney in fact
C. Philip Adams, seller
D. Alice Jackson, attorney in fact for the seller

Question 15
The seller of a commercial building is a corporation. Who may sign the
purchase agreement?
Group of answer choices
A. Any member of the corporation’s board of directors
B. An officer of the corporation who has been authorized to sell the property
by a resolution of the board of directors
C. Any officer of the corporation
D. The corporation’s chief executive officer

Question 16
The seller wants to stay on in the house for two weeks after closing; the
buyer should: (Choose all that apply)
Group of answer choices
A. allow this under no circumstances
B. have the seller sign a rental agreement
C. consult with an attorney

Chapter 7 Quiz D
1. If the seller is a minor, the purchase agreement should be signed by:
Group of answer choices
A. the seller’s legal guardian
B. the seller’s nearest living relative
C. both the seller and the seller’s attorney in fact
D. the seller’s husband or wife
Question 2
In setting a closing date, you should take into account all of the following
except:
A. how long the seller needs to make any necessary repairs
B. whether the buyer needs to sell her current home
C. the time needed for all of the inspections that will be required
D. when the next installment of the property taxes will be due

Question 3
The parties are required to initial the liquidated damages clause in a
purchase agreement:
Group of answer choices
A. to show that they were aware of the provision and consented to it
B. to provide that the selling broker can hold the good faith deposit check
uncashed until the seller accepts the offer
C. to allow the seller to choose what remedy to pursue in the event that the
buyer defaults
D. if the buyer’s deposit exceeds 3% of the sales price

Question 4
The buyer usually gives the good faith deposit to either the escrow agent or
the:
Group of answer choices
A. selling agent
B. listing agent
C. seller
D. listing broker

Question 5
Which document should be prepared if the buyer plans to take possession
before the closing date?
A. Sale of buyer’s home contingency
B. Rental agreement
C. Bump notice
D. Backup offer

Question 6
To be enforceable, an arbitration clause in a purchase agreement must be:
A. initialed by the selling agent and the listing agent
B. in a separate addendum
C. initialed by the buyer and the seller

Question 7
The purchase price stated in the purchase agreement should include any:
(Choose all that apply)
A. new loan to be obtained by the buyer
B. seller financing
C. mortgages or other liens being assumed by the buyer

Question 8
Because a purchase agreement has a “time is of the essence” clause:
A. the closing must take place within 45 days after the agreement is signed
B. the seller must accept the buyer’s offer within five days, or the offer will
terminate
C. failure to meet a deadline set in the agreement is a breach of contract
D. a check for the good faith deposit can be held for no more than three days

Question 9
If a buyer defaults on a purchase agreement, the good faith deposit is
typically:
A. forfeited to the listing broker
B. split between the buyer and seller
C. returned to the buyer
D. forfeited to the seller

Question 10
The included and excluded items paragraph is used to:
A. disclose the encumbrances on the property
B. specify fixtures and personal property that will be part of the sale
C. list the documents that are being attached to the agreement
D. determine how closing costs will be allocated

Chapter 8 Quiz A
Question 1
Which term below match this scenario: “The deadline for obtaining financing
has passed and the seller hasn’t heard back from the buyer; she wants to
terminate the agreement and sell the property to another buyer.”
Group of answer choices
Notice to Buyer to Perform
Purchase Agreement
Contingency for Sale of Buyer’s Property
Cancellation of Contract
Listing Agreement
Contract for Deed
Request for Repair
Interim Occupancy Agreement
Question 2
All inspections and repairs are made at the seller’s expense.
Group of answer choices
True
False

Question 3
Which term below match this scenario: “The buyer’s deal for selling his
current house has fallen through, so he decides to cancel the contract for the
new home and just stay where he is.”
Group of answer choices
Contingency for Sale of Buyer’s Property
Request for Repair
Cancellation of Contract
Interim Occupancy Agreement
Contract for Deed
Notice to Buyer to Perform
Listing Agreement
Purchase Agreement

Question 4
Which term below match this scenario: “The buyer wants to ask the seller to
pay for a new furnace.”
Group of answer choices
Interim Occupancy Agreement
Cancellation of Contract
Request for Repair
Purchase Agreement
Contract for Deed
Notice to Buyer to Perform
Listing Agreement
Contingency for Sale of Buyer’s Property

Question 5
The buyer’s ability to obtain funds for a downpayment is usually included in a
financing contingency.
Group of answer choices
True
False

Question 6
Which term below match this definition: “The buyer wants the right to have
the property inspected, and wants to make the sale contingent on the
inspection results.”
Group of answer choices
Listing Agreement
Interim Occupancy Agreement
Notice to Buyer to Perform
Contract for Deed
Request for Repair
Contingency for Sale of Buyer’s Property
Purchase Agreement
Cancellation of Contract

Question 7
A contingency for the sale of the buyer’s home should explain what happens
if the seller gets another offer during the contingency period.
Group of answer choices
True
False

Question 8
Which term below match this scenario: “The seller wants to be able to accept
backup offers while the buyer is trying to sell his current house.”
Group of answer choices
Notice to Buyer to Perform
Request for Repair
Contingency for Sale of Buyer’s Property
Interim Occupancy Agreement
Listing Agreement
Contract for Deed
Cancellation of Contract
Purchase Agreement

Question 9
A transaction is made contingent on the buyer obtaining a loan at 6%
interest or less. The buyer is unable to qualify for such a loan. The failure of
the contingency means the sale is automatically terminated.
Group of answer choices
True
False

Question 10
Every contingency clause should contain a deadline by which the
contingency must be met or removed.
Group of answer choices
False
True

Question 11
An inspection contingency should give the buyer an opportunity to reinspect
the property if the seller makes repairs.
Group of answer choices
False
True

Chapter 8 Quiz B ( 12 of 15)

Question 1
Which of the following types of contingency is the least common?
Group of answer choices
Seller’s purchase of replacement property contingency
Inspection contingency
Financing contingency
Sale of buyer’s home contingency

Question 2
Which party to a purchase agreement usually benefits from a contingency?
Group of answer choices
Seller
Buyer
Second buyer
Broker
Question 3
Pat and Abe’s purchase agreement does not include a contingency for the
sale of the buyer’s property. However, it’s clear that if Pat is unable to sell
her home, she won’t have the downpayment funds necessary to buy Abe’s
home. This is a:
Group of answer choices
standard sales practice
hidden contingency
de facto contingency
contingency by estoppel

Question 4
A sale is contingent on the buyer obtaining financing. The buyer later
decides she doesn’t want the property, so she doesn’t bother to fill out any
loan applications. The contingency is dropped from the agreement because:
Group of answer choices
it’s been fulfilled
the buyer did not make a reasonable, good faith effort to fulfill the
contingency
the only allowable contingencies are those that benefit the seller
the contingency has been fulfilled
Question 5
A provision that is related to a financing contingency, and often included as
part of that contingency, is a/an:
Group of answer choices
closing costs contingency
appraisal contingency
title insurance contingency
purchase of replacement contingency

Question 6
If the buyer requests repairs as the result of an inspection, the seller may do
any of the following except:
Group of answer choices
remove the inspection contingency
agree to perform only some of the repairs
ask that the buyer pay for requested repairs
reject the request

Question 7
What happens when the buyer has not notified the seller that he has fulfilled
a financing contingency by the contingency’s deadline?
Group of answer choices
A. The contingency is removed automatically and the sale will continue
B. The seller may immediately terminate the agreement and retain the good
faith deposit
C. The seller may notify the buyer that she intends to terminate the
agreement, at which point the buyer has a final chance to remove the
contingency
D. The seller may automatically terminate the agreement and the buyer will
be refunded the good faith deposit

Question 8
In which of the following circumstances involving a sale of a buyer’s home
contingency would the buyer not be entitled to a refund of the good faith
deposit?
Group of answer choices
A. The sale of the buyer’s property collapses during the closing process,
through no fault of the buyer
B. The buyer fails to sell her home before the contingency deadline, even
after making a reasonable good faith effort to do so
C. Buyer cancels agreement after the seller accepts a second offer and
notifies the buyer under a release clause
D. Buyer removes contingency after the seller accepts a second offer and
notifies the buyer under a release clause

Question 9
If an inspection reveals building code violations, the seller may: (Choose all
that apply)
Group of answer choices
A. cancel the sale and take the property off the market, to avoid making the
repairs
B. be required to make repairs even if the sale is terminated
C. refuse to make repairs and sell property “as is”

Question 10
Which type of clause allows a seller to keep a property on the market after
receiving a contingent offer, and to accept an offer from a second buyer?
Group of answer choices
Release clause
Safety clause
Extender clause
Hold harmless clause

Question 11
If a contingency is not fulfilled despite a good faith effort to fulfill it, what
may the person who benefits from the contingency do? (Choose all that
apply)
Group of answer choices
A. Remove the contingency and continue with the agreement
B. Sue the other party for a breach of contract
C. Terminate the agreement and have the good faith deposit returned

Question 12
Which of the following is not a necessary element in a contingency?
Group of answer choices
A. A clear description of how the condition can be met
B. The damages that the party not fulfilling the contingency will pay
C. The deadline by which point the condition must be met or removed
D. The rights of the parties if the condition isn’t met or removed

Question 13
A contingent sale collapses because the buyer is unable to sell his own
property. At this point the parties should complete a:
Group of answer choices
A. contingency removal
B. cancellation agreement
C. notice to perform
D. contingency supplement addendum

Question 14
Which of the following financing contingencies would a seller prefer?
Group of answer choices
A. A contingency calling for no closing costs for the loan
B. A contingency calling for a 15-year loan term
C. A contingency calling for below-market interest rates
D. A contingency calling for a loan on current market terms

Question 15
Carl agrees to purchase Anna’s property, subject to a contingency stating
that he will obtain financing from an institutional lender. Carl has 45 days to
remove or fulfill the contingency, but after 45 days has provided no notice of
having done either. At this point, what can Anna do?
Group of answer choices
A. Sue Carl for breach of contract
B. Terminate the agreement immediately and retain the good faith deposit
C. Terminate the agreement immediately
D. Give Carl a Notice to Perform, informing him that she will terminate the
agreement if he doesn’t remove the contingency within 24 hours

Chapter 8 Quiz C
Question 1
Which of the following is true about a sale of buyer’s home contingency?
Group of answer choices
A. It allows the seller to decide which offer the buyer will accept for her
property
B. It should only be used together with a contingency for the seller’s
purchase of replacement property
C. It commits the buyer to accept the first offer on her house that comes
along
D. The deadline for the buyer closing her sale is the date of her closing with
the seller (or a specified number of days before)

Question 2
If an inspection reveals problems with the property, the buyer may do any of
the following except:
Group of answer choices
A. request that the seller make repairs
B. have the problems repaired without telling the seller
C. cancel the agreement
D. negotiate a lower sales price

Question 3
Which party has the responsibility of ordering the inspection and paying for
the inspection?
Group of answer choices
Seller
Broker
Buyer
Lender

Question 4
Which type of clause enables a seller to keep a property on the market after
receiving a contingent offer, and to accept an offer from a second buyer?
Group of answer choices
Extender clause
Hold harmless clause
Safety clause
Release clause

Question 5
In which of the following circumstances involving a sale of buyer’s property
contingency would the buyer not be entitled to a refund of her good faith
deposit?
Group of answer choices
A. The sale of the buyer’s property collapses during the closing process,
through no fault of the buyer
B. Buyer cancels agreement after the seller accepts a second offer and
notifies the buyer under a release clause
C. The buyer fails to sell her home before the contingency deadline
D. Buyer removes contingency after the seller accepts a second offer and
notifies the buyer under a release clause

Question 6
A buyer and seller agree that the sale will be contingent on the buyer
obtaining financing. The buyer later decides that she doesn’t want the
property, so she doesn’t bother to fill out any loan applications. The
contingency is dropped from the agreement because:
Group of answer choices
A. the buyer did not make a reasonable, good faith effort to fulfill the
contingency
B. the contingency would be considered illegal
C. the contingency has been fulfilled
D. the only allowable contingencies are those that benefit the seller

Question 7
A seller accepts an offer from a second buyer and notifies the first buyer
under a release clause. The first buyer decides to remove the sale of buyer’s
property contingency. What happens?
Group of answer choices
A. The good faith deposit will be refunded to the first buyer
B. The seller and first buyer will complete the transaction, assuming the
buyer can still come up with the funds
C. The second buyer will be entitled to purchase the property only if she has
made a good faith deposit
D. The second buyer will then be obligated to complete the transaction with
the seller

Question 8
The seller accepts an offer that includes a contingency for the sale of the
buyer’s current property. What must the buyer do once he accepts an offer
on his current home?
Group of answer choices
A. Give the seller copies of any inspection reports for the buyer’s current
property
B. Give the seller a copy of the purchase agreement
C. Hand the good faith deposit on the buyer’s current home over to the seller
D. Remove the contingency

Question 9
If the sale of buyer’s home contingency only allows the seller to accept
additional offers as backup offers, then:
Group of answer choices
A. the seller is not allowed to advertise the property
B. a release clause would not apply
C. the buyer does not need to make a good faith effort to remove the
contingency
D. the contingency is meaningless

Question 10
A certain contingency benefits the seller. Whose consent is needed to
remove this contingency?
Group of answer choices
A. No consent is needed
B. Seller consent only
C. Both the buyer’s and the seller’s consent
D. Buyer consent only
Question 11
Which of these types of contingency is the least common?
Group of answer choices
A. Sale of buyer’s home contingency
B. Seller’s purchase of replacement property contingency
C. Financing contingency
D. Inspection contingency

Question 12
Pat and Abe do not sign a contingency for the sale of the buyer’s property.
However, it is clear that if Pat is not able to sell her home, she will not have
the downpayment funds necessary to buy Abe’s home. This is a/an:
Group of answer choices
A. de facto contingency
B. contingency by estoppel
C. hidden contingency
D. acceptable sales practice

Question 13
A provision that is related to a financing contingency and often included as
part of that contingency is a/an:
Group of answer choices
A. title insurance contingency
B. purchase of replacement property contingency
C. appraisal contingency
D. closing costs contingency

Chapter 8 Quiz D
Question 1
All of the following are typically found in contingency provisions except:
Group of answer choices
A. statutorily required language advising the parties to seek legal advice
B. a procedure for notifying the other party that the condition has been
removed or satisfied
C. a deadline for removing or satisfying the condition
D. the rights of the parties if a condition isn’t removed or satisfied

Question 2
If an inspection reveals building code violations, which of the following is
true? (Choose all that apply)
Group of answer choices
A. The buyer may require the seller to correct the violations before
proceeding with the contract
B. The buyer’s lender may require the seller to correct the violations as a
condition of loan approval
C. Public authorities may order the seller to correct the violations whether or
not the transaction closes

Question 3
After an inspection, the buyer requests that the seller make certain repairs.
Which of the following is not one of the ways in which the seller can respond?
Group of answer choices
A. Refusing to make the requested repairs
B. Removing the inspection contingency
C. Offering to make only some of the requested repairs
D. Offering to modify the contract

Question 4
With a sale of buyer’s home contingency, the common approaches to
resolving the conflicting needs of the buyer and seller do not include:
Group of answer choices
A. allowing the seller to keep his property on the market and accept other
offers
B. having the buyer get the funds to close the purchase of the seller’s home
with a swing loan
C. a cancellation agreement
D. a release clause

Question 5
Which of the following ways of including a contingency in a purchase
agreement would not be advisable?
Group of answer choices
A. Using a pre-printed contingency addendum form
B. Writing a special contingency clause yourself on an addendum form
C. Checking a contingency clause in the purchase agreement form itself
D. Having an attorney draft a special contingency clause

Question 6
A sale of buyer’s home contingency will usually state:
Group of answer choices
A. that the seller may continue to market her property until the contingency
is removed or fulfilled
B. that all contingencies must be waived on any offer on the buyer’s current
home
C. a price at which the buyer will be required to accept an offer on his
current home
D. a deadline for applying for a swing loan

Question 7
Which of the following is least likely to be included in a financing contingency
provision?
Group of answer choices
A. The amount of the buyer’s downpayment
B. A deadline for applying for the loan
C. The parties’ options in case of a low appraisal
D. The terms of the seller financing arrangement

Question 8
An inspection contingency provision will often contain a:
Group of answer choices
A. clause providing for a reinspection of the property after any repairs are
made
B. schedule of adjustments in the purchase price for different problems that
may be found during the inspection
C. release clause allowing the seller to keep the property on the market and
accept other offers
D. hidden contingency

Question 9
A contingency clause:
Group of answer choices
A. can only be removed by the benefited party
B. can only be removed with the consent of both parties
C. cannot be removed by either party
D. can be removed by either party

Question 10
Which of the following is true of most contingencies?
Group of answer choices
A. The seller is usually the party that benefits from the contingency
B. The benefiting party is not required to make any effort to fulfill the
contingency
C. Before the buyer removes the contingency, she must give the seller a
notice to perform
D. The seller wants the contingency resolved quickly so that he knows
whether the transaction will go through

Chapter 9 Quiz A (17 of 21, 错 4)

Question 1
Which term below match this description: “Letter to verify that borrower isn’t
required to repay certain funds”
Group of answer choices
Income ratio
Net worth
Gift letter
Regulation Z
Liquid assets
Credit score
Co-signer
APR (annual percentage rate)
Net equity
Preapproval letter

Question 2 ？？？
A buyer who wants to purchase the most expensive house she can possibly
afford should be advised to apply for a 15-year loan, for maximum
purchasing power.
Group of answer choices
True
False

Question 3
A lender may apply either a housing expense to income ratio or a debt to
income ratio, but not both.
Group of answer choices
True
False

Question 4
A lock-in enables the lender to cap interest rate increases and adjust the rate
downward if prevailing rates drop before closing.
Group of answer choices
False
True

Question 5
A lender may approve a buyer for a loan if he has above average net worth,
even if his income is marginal.
Group of answer choices
False
True

Question 6
Which term below match this description: “Cash and property that can easily
be converted to cash”
Group of answer choices
Co-signer
Net equity
Gift letter
Credit score
Preapproval letter
Regulation Z
Net worth
APR (annual percentage rate)
Income ratio
Liquid assets

Question 7
Which term below match this description: “Assets minus liabilities”
Group of answer choices
Preapproval letter
Net worth
Liquid assets
Co-signer
Gift letter
Regulation Z
Net equity
Credit score
APR (annual percentage rate)
Income ratio

Question 8
Which term below match this description: “Total finance charges as a
percentage of total amount financed”
Group of answer choices
APR (annual percentage rate)
Gift letter
Liquid assets
Preapproval letter
Co-signer
Income ratio
Credit score
Regulation Z
Net worth
Net equity

Question 9
A/an __ contains information about the loan terms and estimates of all costs
and expenses associated with the loan.
Group of answer choices
Seller financing disclosure law
TILA
Mortgage loan disclosure statement
Predatory lending law
Real property loan law

Question 10
A buyer who has been preapproved will have a negotiating advantage over
buyers who have not been preapproved.
Group of answer choices
False
True

Question 11
A buyer who plans to live in a house for only a few years before trading up to
a bigger house should consider an adjustable-rate mortgage.
Group of answer choices
True
False

Question 12
For a lender to consider rental income in the loan qualifying process, the
applicant must show that payments are dependable and that vacancies and
bad debts have been considered.
Group of answer choices
True
False

Question 13
The maximum loan amount is the maximum amount a lender will allow a
buyer to pay for a property.
Group of answer choices
False
True

Question 14 ？？？
If a real estate agent arranges seller financing, she must comply with the
disclosure requirements contained in the __.
Group of answer choices
TILA ❌
Mortgage loan disclosure statement ❌
Real property loan law ❌
Seller financing disclosure law
Predatory lending law ❌

Question 15
Which term below match this description: “When a family member or friend
agrees to be liable for a loan”
Group of answer choices
Income ratio
Preapproval letter
Co-signer
Net worth
Credit score
Regulation Z
APR (annual percentage rate)
Gift letter
Liquid assets
Net equity

Question 16
Which term below match this description: “Relationship between debt and
income, or housing expense and income”
Group of answer choices
Liquid assets
Co-signer
Credit score
Gift letter
Net worth
Net equity
Preapproval letter
Income ratio
Regulation Z
APR (annual percentage rate)

Question 17
__ is a federal law intended to enable borrowers to compare the effective
rates of different loans.
Group of answer choices
Predatory lending law
TILA
Mortgage loan disclosure statement
Real property loan law
Seller financing disclosure law

Question 18
Which term below match this description: “Property value minus outstanding
liabilities and selling costs”
Group of answer choices
Preapproval letter
Regulation Z
Income ratio
Net equity
Net worth
Liquid assets
Gift letter
Credit score
Co-signer
APR (annual percentage rate)

Question 19
California’s __ applies to loans where the total points and fees exceed 6% of
the loan amount.
Group of answer choices
Predatory lending law
Mortgage loan disclosure statement
Seller financing disclosure law
TILA
Real property loan law

Question 20
Which term below match this description: “Letter containing maximum loan
commitment”
Group of answer choices
Co-signer
APR (annual percentage rate)
Income ratio
Regulation Z
Net equity
Preapproval letter
Gift letter
Credit score
Liquid assets
Net worth

Question 21
A real estate agent who negotiates a mortgage loan will be subject to the __.
Group of answer choices
Seller financing disclosure law
Real property loan law
TILA
Predatory lending law
Mortgage loan disclosure statement

Chapter 9 Quiz B (全对)

Question 1
Which of the following would be considered a liquid asset?
Group of answer choices
Stocks
Real estate
Automobile
Jewelry

Question 2
Which of the following persons would be least likely to meet stable income
criteria?
Group of answer choices
A. A person who has worked as a junior copywriter for six months, after
having been an editorial assistant for two years
B. A person who has worked as a machine operator for seven months, after
working for an online media company for eight months
C. A person who has worked as an accountant for ten months, after having
been in college previously
D. A person who has been a self-employed landscape contractor for three
years

Question 3
The Latimers plan to buy a house using a 90% conventional loan. Knowing
their monthly income and current interest rates, you determine that the
maximum loan amount they can qualify for is $405,000. What is the
maximum purchase price they can afford?
Group of answer choices
$462,500
$450,000
$420,000
$364,500

Question 4
The Hutchinsons own a house that is currently appraised at $545,000. They
owe $397,000 on the deed of trust and anticipate $65,000 in selling
expenses. What is their net equity in the property?
Group of answer choices
$480,000
$83,000
$213,000
$148,000

Question 5
Which of the following would not be considered acceptable income for loan
qualifying?
Group of answer choices
Public assistance payments
Social Security
Court-ordered alimony
Unemployment benefits

Question 6
Which of the following considerations is not relevant in assessing an
applicant’s income?
Group of answer choices
Transferability
Quantity
Quality
Durability

Question 7
Each time a lender makes a loan, it assumes the risk that the: (Choose all to
apply)
Group of answer choices
A. loan will be nonconforming and unsaleable on the secondary market
B. security property will be worth less than the amount the applicant owes
the lender
C. applicant will fail to repay the loan

Question 8
Miranda owns a $156,000 condominium, owns her $5,600 car free and clear,
has $5,000 in savings, $15,000 in a 401(k), $7,200 in a mutual fund, and
$2,500 in personal property. She owes $110,000 on her mortgage, $18,000
in student loans, and $1,000 in credit card debt. What is her net worth?
Group of answer choices
$47,300
$172,300
$62,300
$191,300

Question 9
When a lender gives a prospective buyer a loan commitment before the
buyer has found a house, it’s called:
Group of answer choices
preapproval
funding the loan
prepayment
predetermination

Question 10
A fee charged by a lender to reserve an interest rate on a loan until closing is
a/an:
Group of answer choices
rate cap
origination fee
lock-in
prepayment penalty

Question 11
Which of the following is not derogatory credit information that could show
up on a borrower’s credit history?
Group of answer choices
Unemployment
Bankruptcy
Debt consolidation
Collections

Question 12
Which of the following would probably be considered acceptable income for a
loan applicant?
Group of answer choices
A. Income from commissions earned consistently for two years
B. Income from a sole proprietorship that has been in operation for six
months
C. Child support payments that are received only intermittently
D. Income from overtime earned over the past three months

Question 13
Which of the following will not be included in the calculation of a loan’s APR,
under the terms of the Truth in Lending Act?
Group of answer choices
Loan origination fee
Buyer-paid discount points
Appraisal fee
Interest

Question 14
A loan applicant earns $2,100 every two weeks. Her monthly income would
be:
Group of answer choices
$4,550
$2,100
$4,400
$4,200

Question 15
Which of the following laws requires calculation of an annual percentage
rate?
Group of answer choices
Seller financing disclosure law
Truth in Lending Act
Real property loan law
RESPA

Chapter 9 Quiz C
Question 1
A fee charged by a lender to reserve a particular interest rate on a loan is
a/an:
Group of answer choices
origination fee
lock-in
prepayment penalty
rate cap

Question 2
When a potential buyer approaches a lender prior to looking for a house, in
order to obtain a promise of a loan up to a certain amount, this is known as:
Group of answer choices
preapproval
predetermination
prepayment
prequalification

Question 3
Which one of the following laws is particularly aimed at protecting
unsophisticated borrowers from unfairly expensive loans?
Group of answer choices
Fair Credit Reporting Act
California predatory lending law
TILA
Mortgage loan broker law

Question 4
Which of the following considerations is relevant in assessing an applicant’s
job income?
Group of answer choices
Size of employer
Length of time job expected to last
Liquidity
White collar versus blue collar nature of job

Question 5
For a buyer, which of the following is NOT an advantage of having a
preapproval letter?
Group of answer choices
A. It signifies that the buyer is ready and able to buy at the agreed price
B. It enables buyers to look for a home without having to complete a loan
application
C. It gives the buyer an accurate idea of how much he can borrow
D. It provides assurance to the seller that a financing contingency won’t be a
problem

Question 6
Fee packing, loan flipping, and balloon payment abuses are all examples of:
Group of answer choices
derogatory credit information
rate lock-ins
predatory lending practices
preapproval techniques

Question 7
Which of the following persons would most likely not be considered to have
stable income?
Group of answer choices
A. A person who has worked as a machine operator for seven months, after
working for an online media company for eight months
B. A person who has been a self-employed landscape contractor for three
years
C. A person who has worked as an accountant for ten months, after having
been in college previously
D. A person who has worked as a junior copywriter for six months, after
having been an editorial assistant for two years

Question 8
The Truth in Lending Act requires a lender to use what disclosure form?
Group of answer choices
Good faith statement
Promissory note
Loan estimate

Question 9
Which of the following is not derogatory credit information that could show
up on a borrower’s credit report?
Group of answer choices
Bankruptcies
Collections
Unemployment
Debt consolidations

Question 10
Which of the following is a risk that a lender assumes each time it makes a
loan?
Group of answer choices
A. That the security property will be worth less than the amount the
applicant owes the lender
B. That the loan will be nonconforming and unable to be sold on the
secondary market
C. That the applicant will fail to repay the loan

Question 11
Miranda owns a $156,000 condominium, owns her $5,600 car free and clear,
$5,000 in a savings account, $15,000 in a 401(k), $7,200 in a mutual fund,
and $2,500 in personal property. She owes $110,000 on her mortgage,
$18,000 in student loans, and $1,000 in credit card debt. Without estimating
her possible selling expenses, what is her net worth?
Group of answer choices
$62,300
$172,300
$191,300
$47,300

Question 12
Which of the following would be considered to be a liquid asset?
Group of answer choices
Jewelry
Automobile
Stocks
Real estate

Question 13
A buyer has a proposed monthly mortgage payment of $1,300, a monthly car
payment of $350, a monthly student loan payment of $200, and a monthly
income of $4,800. He is applying for a conventional loan with a 28% housing
expense to income ratio and a 36% debt to income ratio. Which of the
following is true?
Group of answer choices
A. Both housing expense and debt to income ratios are acceptable
B. Debt to income ratio is acceptable, but housing expense to income ratio is
not acceptable
C. Housing expense to income ratio is acceptable, but debt to income ratio is
not acceptable
D. Neither housing expense nor debt to income ratio is acceptable

Question 14
Which of the following income sources would be considered to be acceptable
income?
Group of answer choices
A. Income from a contracting job that will terminate when the project is
complete
B. Employment income from a teenaged son living with the applicants
C. Income from a series of short-term consulting positions that have reliably
provided an income to the applicant for three years
D. Income from a temporary retail position during the holiday season

Question 15
Which of the following federal laws allows borrowers to investigate their
credit report and challenge erroneous information?
Group of answer choices
Truth in Lending Act
Fair Credit Reporting Act
Equal Credit Opportunity Act
Employee Retirement Income Security Act

Question 16
A debt to income ratio refers to:
Group of answer choices
A. the relationship between the loan balance and the loan amount
B. a tool for making loan underwriting decisions
C. a means of depreciating the property
D. a capitalization rate

Question 17
Benefits from which of the following programs would not be considered
acceptable income?
Group of answer choices
Pension
Unemployment
Court-ordered alimony
Social Security

Question 18
An applicant earns $2,100 every two weeks. Her monthly income would be:
Group of answer choices
$2,100
$4,550
$4,400
$4,200

Question 19
Which of the following would likely be considered to be acceptable income?
Group of answer choices
A. Income from commissions that have been earned consistently for two
years
B. Income from a sole proprietorship that has been in business for six months
C. Child support payments that are received sporadically
D. Income from overtime earned during the previous three months

Chapter 9 Quiz D
Question 1
Fee packing, loan flipping, and balloon payment abuses are all examples of:
Group of answer choices
rate lock-ins
predatory lending practices
derogatory credit information
preapproval techniques

Question 2
Which of the following would be most likely to have a negative effect on an
individual’s credit rating?
Group of answer choices
Obtaining a copy of his own credit report
A high FICO score
Unemployment
Debt consolidation

Question 3
Which of the following would a lender consider an acceptable secondary
income source?
Group of answer choices
A. Regular monthly income from a public assistance program, if the loan
applicant’s eligibility will expire at the end of the year
B. Rental income, with a percentage deducted to allow for vacancies or
uncollected rent
C. Child support payments for the loan applicant’s 17-year-old daughter
D. Interest on investments that the loan applicant will cash in to pay for
closing costs

Question 4
Which of the following is true about how a lender evaluates net worth?
Group of answer choices
A. The lender prefers non-liquid assets to liquid assets
B. If the loan applicant’s income is marginal, the lender may approve the
loan anyway if the applicant has significant net worth
C. When verifying bank accounts, the lender wants the present balance to be
significantly higher than the average balance in the past
D. The lender is primarily concerned with the appraised value of the real
estate that the loan applicant owns

Question 5
In contrast to a debt to income ratio, a housing expense to income ratio:
Group of answer choices
A. uses the applicant’s current housing expense instead of the proposed
mortgage payment
B. takes into account the loan applicant’s net worth as well as monthly
income
C. is based on the monthly mortgage payment alone, not on all of the loan
applicant’s debt payments
D. takes into account principal and interest on the mortgage, but not taxes
and insurance

Question 6
The APR for a real estate loan:
Group of answer choices
A. is usually lower than the quoted interest rate
B. expresses the relationship of the finance charge to the total amount
financed
C. must be disclosed before a loan application is submitted
D. includes interest, points, lock-in fees, closing costs, and the downpayment

Question 7
How would a lender calculate the net equity in real estate the loan applicant
owns?
Group of answer choices
A. Add the buyer’s downpayment to the market value of the property, then
subtract the sum of the liens against the property
B. Take the market value of the property and subtract between 10% and
13% for the estimated selling costs
C. Subtract the balance of the existing mortgage from the assessed value of
the property
D. Take the market value of the property and deduct the sum of the liens
against the property, plus the selling expenses

Question 8
A buyer will find it useful to have a preapproval letter because it:
Group of answer choices
A. tells the seller the maximum amount the buyer can afford
B. allows the buyer to extend the closing process
C. gives the seller confidence that the financing contingency won’t be a
problem
D. commits the lender to making a loan for whatever property the buyer
decides to purchase

Question 9
When a potential buyer approaches a lender prior to looking for a house, in
order to obtain a promise of a loan up to a certain amount, this is known as:
Group of answer choices
predetermination
preverification
preapproval
prepayment

Question 10
If a loan applicant’s primary source of income is self- employment, the lender
will consider this stable monthly income if the loan applicant:
Group of answer choices
A. also has secondary sources of income
B. does not have any other source of income
C. has been self-employed for at least one year
D. has a history of employment in the same field and can document a
reasonable chance for success

Chapter 10 Quiz A (20 of 21)

Question 1
Which term below match this description: “Initial interest rate charged for an
adjustable-rate loan”
Group of answer choices
A. Conversion option
B. Portfolio loan
C. Note rate
D. Margin
E. Negative amortization
F. Loan term
G. Secondary financing

Question 2
Which term below match this description: “Using new loan to pay off existing
obligation”
Group of answer choices
Balloon payment
Rate caps
Hybrid ARM
Origination fee
Refinancing
Index
Alienation clause

Question 3
Which term below match this description: “Difference between index rate
and interest rate charged”
Group of answer choices
Negative amortization
Portfolio loan
Margin 保证金
Secondary financing
Note rate
Conversion option
Loan term

Question 4
Which term below match this description: “When unpaid interest is added to
a loan’s principal balance”
Group of answer choices
Portfolio loan
Margin
Note rate
Loan term
Secondary financing
Negative amortization
Conversion option

Question 5
Which term below match this description: “Allows a borrower to change from
ARM to fixed-rate loan”
Group of answer choices
Conversion option
Margin
Portfolio loan
Secondary financing
Note rate
Loan term
Negative amortization

Question 6
Which term below match this description: “Statistical report lender uses to
measure changes in the cost of money”
Group of answer choices
Alienation clause
Refinancing
Balloon payment
Index
Rate caps
Hybrid ARM
Origination fee

Question 7
Which term below match this description: “Charge to cover loan processing
costs”
Group of answer choices
Balloon payment
Alienation clause
Hybrid ARM
Rate caps
Origination fee
Refinancing
Index

Question 8
With a temporary buydown, the loan’s interest rate may increase in steps, or
it may remain level until the end of the buydown period.
Group of answer choices
True
False

Question 9
Which term below match this description: “Combination of adjustable- and
fixed-rate loan”
Group of answer choices
Alienation clause
Balloon payment
Refinancing
Index
Rate caps
Hybrid ARM
Origination fee

Question 10
Which term below match this description: “Loan that lender doesn’t sell to
secondary market”
Group of answer choices
Margin
Secondary financing
Note rate
Negative amortization
Conversion option
Loan term
Portfolio loan

Question 11
If a seller taking back a second mortgage sets an interest rate that’s too
high, he might be penalized under the IRS imputed interest rule.
Group of answer choices
False
True

Question 12
Which term below match this description: “Amount of time borrower has to
repay loan”
Group of answer choices
Negative amortization
Note rate
Margin
Conversion option
Portfolio loan
Secondary financing
Loan term

Question 13
Which term below match this description: “Annual or life-of-loan limits on
interest increases”
Group of answer choices
Origination fee
Balloon payment
Index
Hybrid ARM
Alienation clause
Rate caps
Refinancing

Question 14
Because it’s intended to help low- and middle-income buyers, the FHA-
insured loan program has a maximum income limit based on median family
incomes.
Group of answer choices
True
False

Question 15
Which term below match this description: “Final amount that may be due at
end of loan term”
Group of answer choices
Origination fee
Alienation clause
Balloon payment
Refinancing
Index
Rate caps
Hybrid ARM

Question 16
A seller offering primary financing to a buyer on an unencumbered property
is guaranteed first lien position in the event of default.
Group of answer choices
False
True

Question 17
Which term below match this description: “Provision requiring lender’s
approval for loan assumption”
Group of answer choices
Hybrid ARM
Origination fee
Alienation clause
Rate caps
Balloon payment
Index
Refinancing

Question 18
An FHA borrower may have to pay annual mortgage insurance premiums
throughout the loan term.
Group of answer choices
True
False

Question 19
Which term below match this description: “Additional funds to use for
downpayment or closing costs”
Group of answer choices
Loan term
Secondary financing
Negative amortization
Margin
Note rate
Portfolio loan
Conversion option

Question 20
Cal-Vet loans use a land contract as the financing instrument.
Group of answer choices
True
False

Question 21
The underlying loan in a wraparound mortgage must not have a due-on-sale
clause.
Group of answer choices
True
False

Chapter 10 Quiz B
Question 1
Which of the following is characteristic of a VA loan?
Group of answer choices
Income limits
Downpayment
Mortgage insurance
Funding fee

Question 2
What feature would an ARM include in order to avoid a situation where the
borrower’s principal balance increases because the monthly interest exceeds
the monthly payments?
Group of answer choices
Negative amortization cap
Conversion option
Interest rate cap
Mortgage payment cap

Question 3
The Quimbys obtain a loan that starts out at 5.5% interest. After five years,
the interest rate will adjust to whatever the current market rate is. This is
known as a/an:
Group of answer choices
graduated payment mortgage
wraparound mortgage
two-step mortgage
interest-first mortgage

Question 4
Which of these loans would present the greatest risk to a lender?
Group of answer choices
90% LTV
95% LTV
97% LTV
80% LTV

Question 5
Tammy purchased a property for $320,000, and the amount of her loan was
$288,000. Her private mortgage insurance will cover up to 25% of the loan
amount. If Tammy defaulted and the lender ended up with an $82,600
deficiency after a foreclosure sale, how much of that loss would the lender
have to incur?
Group of answer choices
$0
$2,600
$10,600
$61,950
(The private mortgage insurance would reimburse the lender up to 25% of the loan amount,
or $72,000 ($288,000 X .25 =$72,000). Subtract this amount from the $82,600 loss to find that
the lender must absorb a $10,600 loss ($82,600 - $72,000 = $10,600).

Question 6
A buyer obtains a conventional loan for $175,000. The sales price of the
property is $200,000. What is the LTV?
Group of answer choices
87.5% loan
80% loan
nonconforming loan
95% loan

Question 71 pts
An adjustable-rate mortgage has a note rate of 6%. The lender charges a
margin of 2%. The rate can be adjusted only once a year, and the interest
rate is capped so that it cannot increase more than 2% per year. What is the
current index rate?
Group of answer choices
10%
8%
2%
4%

Question 8
A seller offers to pay six discount points on behalf of the buyers. This will
reduce the buyers’ interest rate from 9% to 8%. This is known as a/an:
Group of answer choices
lease/option
buydown
seller second
adjustable-rate mortgage

Question 9
Which of the following allows a lender to increase the upfront yield on a loan
and enables the lender to charge a below-market interest rate?
Group of answer choices
Origination fees
Prepayment penalty
Discount points
Administrative fees

Question 10
The mortgage insurance premium for a new 95% FHA loan will be paid:
(Choose all that apply)
Group of answer choices
annually
for the entire loan term
at closing

Question 11
In a wraparound mortgage:
Group of answer choices
the buyer gets a loan for several properties with one security instrument
the buyer assumes the mortgage and pays the lender directly
the buyer makes payments to the seller, who pays the underlying loan
the seller makes payments to the buyer, who pays the underlying loan

Question 12
Which of the following loans may involve a balloon payment? (Choose all that
apply)
Group of answer choices
Partially amortized
Interest-only
Fully amortized

Question 13
A buyer obtains a 90% institutional loan for $180,000, toward the purchase
of a $200,000 house. The buyer doesn’t have the necessary $20,000 for the
downpayment, so the seller takes back a $10,000 ten-year mortgage, and
the buyer contributes the other $10,000 in cash. This transaction is known as
a/an:
Group of answer choices
wraparound mortgage
equity exchange
seller second
buydown

Question 14
A loan in which a seller extends credit to a buyer, rather than providing cash
that will be used to purchase the property, is a:
Group of answer choices
wraparound loan
hard money loan
purchase money mortgage
swing loan

Question 15
The Jensen family has a monthly income of $5,000. They would like to qualify
for a 90% conventional loan. What would be their maximum allowable
monthly housing expense?
Group of answer choices
$1,900
$1,800
$1,300
$1,400
(The standard maximum housing expense to income ratio for a conventional loan is 28%.
Multiply 28% by $5,000 to determine that their maximum monthly housing expense
is $1,400. )

Chapter 10 Quiz C
Question 1
A buyer obtains an 90% institutional loan for $180,000 toward the purchase
of a $200,000 house. The buyer does not have the necessary $20,000 for the
downpayment, so the seller takes back a $10,000, ten-year mortgage and
the buyer contributes the other $10,000 in cash. This is known as a/an:
Group of answer choices
wraparound mortgage
buydown
equity exchange
seller second

Question 2
Hope is applying for an FHA loan to purchase a $360,000 condominium. Her
proposed monthly mortgage payment is $1,850 and she has a $500 car
payment and a $350 student loan payment. Using the fixed payment to
income ratio, what would be her minimum monthly income in order to afford
this loan?
Group of answer choices
$7,500
$6,607
$6,279
$5,968

Question 3
The mortgage insurance premium for an FHA loan will be paid: (Choose all
that apply)
Group of answer choices
annually
for 11 years, for loans with less than a 90% LTV
at closing

Question 4
Which of these loans would present the greatest level of risk to a lender?
Group of answer choices
97% LTV
80% LTV
90% LTV
95% LTV
Question 5
Which of the following must a veteran possess to qualify for his first VA loan?
Group of answer choices
Certificate of Eligibility
Guaranty entitlement
Certificate of Reasonable Value
Release of liability

Question 6
Tammy purchases a $320,000 property. The amount of her loan is $288,000.
Her private mortgage insurance will cover up to 25% of the loan amount. If
Tammy defaulted, and a lender wound up taking an $82,600 loss after
holding a foreclosure sale, how much of a loss would the lender have to
absorb?
Group of answer choices
$0
$10,600
$2,600
$61,950

Question 7
At what point must a lender automatically cancel private mortgage insurance
on a loan?
Group of answer choices
When the loan’s balance is 78% of the home’s current appraised value
When the loan’s balance is 78% of the home’s original value
When the loan’s balance is 80% of the home’s current appraised value
When the loan’s balance is 80% of the home’s original value

Question 8
A buyer obtains a conventional loan for $180,000. The sales price of the
property is $200,000. This is a/an:
Group of answer choices
80% LTV loan
non-conforming loan
95% LTV loan
90% LTV loan

Question 9
Which of the following would not be considered part of a borrower’s monthly
debt, for purposes of determining the applicant’s debt to income ratio?
Group of answer choices
Student loan payments
Hazard insurance
Property taxes
Anticipated costs of re-roofing the house

Question 10
The Jensen family has a monthly income of $10,000. They would like to
qualify for a 90% conventional loan. What would be their maximum allowable
monthly housing expense?
Group of answer choices
$2,400
$2,300
$3,800
$2,800

Question 11
Any loan in which a seller extends credit to a buyer, rather than providing
cash that will be used to purchase the property, is a:
Group of answer choices
wraparound loan
swing loan
purchase money loan
hard money loan

Question 12
All of the following are characteristics of FHA-insured loans, except:
Group of answer choices
no downpayment
mortgage insurance premiums
more lenient underwriting standards
owner-occupancy requirement

Question 13
What feature would an ARM include in order to limit a situation where the
borrower’s principal balance becomes larger each month because the
monthly interest has become greater than the monthly payment?
Group of answer choices
Interest rate cap
Conversion option
Negative amortization cap
Mortgage payment cap

Chapter 10 Quiz D
Question 1
A lender will usually charge a higher interest rate in which of the following
situations?
Group of answer choices
A. The seller is offering a buydown
B. The borrower wants an ARM instead of a fixed- rate mortgage
C. The borrower wants a 15-year loan instead of a 30-year loan
D. The borrower wants a 5/1 ARM instead of an ARM with a one-year initial
rate adjustment period

Question 2
Jack, a veteran who wants to buy a house with a VA loan, has full guaranty
entitlement. Which of the following is true?
Group of answer choices
A. The VA guaranty will cover the entire loan amount
B. The VA guaranty will cover only a portion of the loan amount
C. Jack is guaranteed a VA loan, so the VA’s usual qualifying standards will be
waived
D. Jack cannot be required to make a downpayment, regardless of the loan
amount

Question 3
To compensate for the extra risk, a lender making a conventional loan with a
high loan-to-value ratio: (Choose all that apply)
Group of answer choices
A. might charge higher loan fees
B. will require private mortgage insurance
C. might apply stricter qualifying standards

Question 4
With a graduated payment buydown plan for a fixed- rate loan, what rate will
a lender use to qualify the buyer for the loan?
Group of answer choices
A. A rate somewhere between the initial rate the borrower will pay and the
full note rate
B. A rate 1% or 2% above the note rate
C. The buydown rate
D. The note rate

Question 5
The Homeowners Protection Act requires:
Group of answer choices
A. borrowers to send a written request to their lender in order to cancel
private mortgage insurance
B. lenders to send all borrowers with private mortgage insurance an annual
notice concerning their PMI cancellation rights
C. all loans to be covered by private mortgage insurance
D. lenders to automatically cancel the PMI when a loan’s principal balance
reaches 78% of the home’s current appraised value

Question 6
If a seller wants to help a prospective buyer qualify for an institutional loan,
which of the following options may reduce the interest rate used to qualify
the buyer?
Group of answer choices
A. Equity exchange
B. Buydown
C. Silent wrap
D. Lease/option

Question 7
A loan requires monthly payments of both principal and interest, but leaves
some of the principal to be paid off in a balloon payment at the end of the
loan term. This loan is:
Group of answer choices
fully amortized
negatively amortized
non-amortized
partially amortized

Question 8
Which of the following can the borrower count as part of the minimum cash
investment required for an FHA loan?
Group of answer choices
A. Closing costs
B. Prepaid expenses
C. Discount points
D. None of these answers count as part of the minimum cash investment
required for an FHA loan

Question 9
A portfolio loan is a loan that:
Group of answer choices
A. the lender plans to keep as an investment
B. is sold on the secondary market
C. is insured or guaranteed by a government agency
D. conforms to the rules of Fannie Mae and Freddie Mac

Question 10
All of the following factors might justify making a conventional loan when the
borrower’s income ratios exceed the standard benchmarks, except:
Group of answer choices
A. substantial net worth
B. a high loan-to-value ratio
C. education that indicates strong potential for increased earnings
D. significant energy-efficient features in the home being purchased

Chapter 11 Quiz A （5 0f 8）
Question 1
The buyer is responsible for paying the documentary transfer tax.
Group of answer choices
True
False

Question 2
A broker may not charge a fee for providing escrow services in a transaction
she is handling.
Group of answer choices
True
False

Question 3
A real estate agent who accepted a referral fee from a lender would be guilty
of a RESPA violation.
Group of answer choices
True
False

Question 4
Fees for the appraisal, credit report, and survey are typically paid by the
buyer.
Group of answer choices
True
False

Question 5
Standard coverage title insurance protects against matters that could be
discovered by inspection of the property, including encroachments or
adverse possession.
Group of answer choices
False
True

Question 6
A lender’s policy covers the lender’s interest in the property, but not the
owner’s.
Group of answer choices
True
False

Question 7
An escrow agent relies on the purchase agreement for direction on how to
disburse funds.
Group of answer choices
False
True

Question 8
An escrow agent can obtain a beneficiary’s statement from the seller’s
lender to get a final payoff figure for the loan.
Group of answer choices
False
True

Chapter 11 Quiz B (12 of 15)

Question 1
Which of the following insurance policies will protect against defects that
only an inspection would reveal, such as encroachments or adverse
possession? (Choose all that apply)
Group of answer choices
A. Homeowner’s coverage title insurance
B. Standard coverage title insurance
C. Extended coverage title insurance

Question 2
What service that a real estate agent provides is similar, in principle, to an
appraisal?
Group of answer choices
A. Property management plan
B. Marketing plan
C. Listing agreement
D. Competitive market analysis

Question 3
Which of the following will a standard homeowner’s hazard insurance policy
not cover?
Group of answer choices
Freezing of plumbing
Vandalism
Earthquake
Fire

Question 4
What law requires 10% – 15% of the net proceeds from certain property
sales transactions to be withheld?
Group of answer choices
RESPA
ERISA
FCRA
FIRPTA (外国人)

Question 5
The buyer’s costs are a $360,000 purchase price, a $3,180 origination fee,
$400 for a lender’s policy of title insurance, $300 for an appraisal, $430 for
property taxes in advance, and $555 for hazard insurance. She has made a
$12,000 earnest money deposit and is receiving a $318,000 loan. What is
the cash balance (net cost) required from the buyer at closing?
Group of answer choices
$30,000
$46,865
$34,865
$4,865

Question 6
Which of the following typically would not be a cost to the seller?
Group of answer choices
Unpaid interest ❌
Prepayment penalty ❌
Commission ❌
Seller’s title insurance policy

Question 7
Which of the following forms must an escrow agent use to report the gross
proceeds of a sale to the IRS?
Group of answer choices
1099-S
Loan estimate
8300
Closing disclosure

Question 8
The annual hazard insurance bill for a property is $700. The seller has
already paid for insurance through December 31. The closing date for the
property is August 15. Assuming there are 365 days in the year, and the
buyer is responsible for the day of closing, how much will the seller receive
for his overpayment of the bill?
Group of answer choices
$270.28
$264.96
$266.88
$433.92

Question 9
Which of the following types of inspections would look for indications of
mold, asbestos, radon, and similar problems?
Group of answer choices
Structural inspection
Pest inspection
Environmental inspection
Soil inspection

Question 10
Which of the following would not be a cost for the buyer?
Group of answer choices
Origination fee
Documentary transfer tax
Appraisal
Purchase price

Question 11
Which of the following persons or institutions is not exempt from escrow
agent licensing requirements?
Group of answer choices
Broker performing escrow services for his own transaction
Title company
Broker performing escrow services for someone else’s transaction
Attorney

Question 121 pts

The escrow agent will decide how to disburse escrow funds based on what?
Group of answer choices
Listing agreement
Contingency addendum
Purchase agreement
Escrow instructions
Question 13
Which of these closing expenses is customarily split evenly between the two
parties?
Group of answer choices
Recording fees
Escrow fees
Appraisal fee
Attorney’s fees

Question 14
Which of the following is not a RESPA requirement?
Group of answer choices
Settlement service providers can’t pay each other kickbacks
A seller can’t require a buyer to use a particular title company
Financing advertisements must include the annual percentage rate
All settlement charges must be itemized on a closing disclosure

Question 15
Which of the following items is not part of the escrow process?
Group of answer choices
Recording mortgage documents
Paying off the remainder of the seller’s loan
Making a counteroffer
Ordering a preliminary title report

Chapter 11 Quiz C
Question 1
Which of the following is not covered by a standard homeowners’ hazard
insurance policy?
Group of answer choices
Freezing of plumbing
Earthquake
Vandalism
Fire

Question 2
An annual expense is $1,850. Using a 365-day year, what is the per diem
rate?
Group of answer choices
$5.14
$59.68
$5.07
$6.75
Question 3
What service that a real estate agent might provide is similar in principle, but
not as detailed, as an appraisal?
Group of answer choices
Competitive market analysis
Marketing plan
Listing agreement
Property management plan

Question 4
Which of the following is not a requirement of RESPA?
Group of answer choices
A buyer may not be required by the seller to use a particular title company
Loan advertisements must include the annual percentage rate
All settlement charges must be itemized on a Closing Disclosure
Borrowers cannot be required to make deposits into an impound account
that are larger than necessary

Question 5
Which of the following forms does an escrow agent use to report to the
Internal Revenue service the gross proceeds of a sale of real property?
Group of answer choices
1099-S
Settlement statement
Closing disclosure
Loan estimate

Question 6
The escrow agent will rely on what document when deciding how to disburse
the funds?
Group of answer choices
Listing agreement
Escrow instructions
Contingency addendum
Promissory note

Question 7
Which law has the intent of providing borrowers with accurate information
about their closing costs?
Group of answer choices
FIRPTA
Interstate Land Sales Full Disclosure Act
Real Estate Settlement Procedures Act
Real Estate Brokerage Relationships Act
Question 8
What law requires 10% of the net proceeds to be withheld in most
transactions when property is sold by a nonresident alien?
Group of answer choices
ERISA
FCRA
FIRPTA
RESPA

Question 9
A seller’s costs are a $23,400 commission, $396 in documentary transfer tax,
$650 for a buyer’s policy of title insurance, $250 in escrow fees, and a
$246,000 loan payoff. The seller will receive a $360,000 purchase price and
a $350 refund on property taxes paid in advance. How much are the seller’s
proceeds?
Group of answer choices
$114.000
$90,600
$88,954
$89,654

Question 10
Which of the following items is not a part of the escrow process?
Group of answer choices
Making a counteroffer
Recording mortgage documents
Ordering a preliminary title report
Paying off the remainder of the seller’s loan

Question 11
Which of the following is not a cost to the buyer?
Group of answer choices
Purchase price
Appraisal
Documentary transfer tax
Origination fee

Question 12
Which of the following is an advantage of the escrow process? (Choose all
that apply)
Group of answer choices
Parties are less able to back out of the transaction
Parties do not have to be present at same time for closing
Parties are protected against title defects of record

Question 13
Which of the following is not an important component of an inspection
report?
Group of answer choices
A. Provide an estimated valuation for the property ？？？
B. Summarize areas that need or will need repairs ❌
C. Compare the house’s condition against similar properties
D. Project a future budget for repair or remodeling work ❌

Question 14
The annual hazard insurance bill for a property is $700. The seller has
already paid for insurance through December 31. The closing date of the sale
of the property is August 15. Assuming there are 365 days in the year and
the buyer is responsible for the day of closing, how much will the seller be
refunded for his overpayment of the insurance bill?
Group of answer choices
$433.92
$266.88
$270.28
$264.96

Chapter 11 Quiz D
Question 1
On a settlement statement, the debits represent:
Group of answer choices
A. costs that a party must pay at closing
B. the amount of financing in the transaction
C. amounts that are owed to a party at closing
D. costs that the buyer must pay to the seller

Question 2
Although the terms are often used interchangeably, the technical difference
between an escrow agent and a closing agent is that:
Group of answer choices
A. an escrow agent is a licensed escrow company, while a closing agent is
anyone providing escrow services
B. a closing agent represents the interests of only one party to a transaction,
while an escrow agent acts on behalf of both parties
C. the term “closing agent” refers specifically to a real estate broker who is
providing escrow services
Question 3
An HO-3 hazard insurance policy would cover damages resulting from:
Group of answer choices
earthquakes
floods
encroachments
fires

Question 4
If a home buyer is concerned about title problems that do not show up in the
public record, he should:
Group of answer choices
A. require the seller to purchase a standard coverage title insurance policy
B. rely on the lender’s title insurance policy
C. make sure there are no problems listed in the preliminary title report
D. get a homeowner’s coverage title insurance policy

Question 5
The good faith deposit is: (Choose all that apply)
Group of answer choices
A. retained by the broker at closing as her commission
B. a credit for the buyer on the settlement statement
C. applied toward the purchase price at closing

Question 6
A loan secured by a deed of trust on the home the buyer is purchasing will
be considered a “federally related” loan if the:
Group of answer choices
A. loan is used to purchase more than 25 acres
B. closing agent is required to withhold part of the proceeds under FIRPTA
C. lender sells loans to Fannie Mae
D. person responsible for closing must report the sale to the IRS

Question 7
Which of the following is not one of the steps in the inspection process?
Group of answer choices
A. Ordering the inspection
B. Reinspection of any required repairs
C. Appraisal of the property
D. Approval or disapproval of the inspection report

Question 8
Prepaid interest refers to:
Group of answer choices
A. the interest owed by the seller at closing after paying off the principal
balance of her loan
B. the refund to the seller of reserves on deposit in an impound account with
her lender
C. the charge that the buyer must pay at closing to cover interest that will
accrue on his loan during the last part of the month in which closing occurs
D. the fact that mortgage interest is usually paid in advance

Question 9
The seller customarily pays the fee for recording the:
Group of answer choices
A. new mortgage or deed of trust
B. deed from the seller to the buyer
C. deed of reconveyance

Question 10
When choosing a home inspector, a buyer should look for a firm that:
Group of answer choices
A. does other business in addition to inspections
B. has recently changed its name
C. will offer to make the repairs recommended by the inspection
D. belongs to the American Society of Home Inspectors

Chapter 12 Quiz A
Question 1
Which term below match this description: “Cost that varies, such as utilities,
maintenance, or repairs”
Group of answer choices
Management agreement
Return
Fixed expense
Rental schedule
Leverage
Rent roll
Management plan
Appreciation
Variable expense
Cash flow

Question 2
Which term below match this description: “Establishes agency relationship
between owner and property manager”
Group of answer choices
Appreciation
Leverage
Fixed expense
Variable expense
Rent roll
Cash flow
Management agreement
Rental schedule
Management plan
Return

Question 3
Which term below match this description: “Report on rents received and
uncollected”
Group of answer choices
Return
Fixed expense
Management plan
Leverage
Rental schedule
Variable expense
Cash flow
Management agreement
Appreciation
Rent roll

Question 4
Which term below match this description: “Difference between revenues and
expenses”
Group of answer choices
Return
Fixed expense
Appreciation
Management plan
Management agreement
Rent roll
Cash flow
Variable expense
Leverage
Rental schedule

Question 5
Which term below match this description: “Strategies to achieve owner’s
investment goals”
Group of answer choices
Leverage
Return
Cash flow
Rent roll
Rental schedule
Variable expense
Management agreement
Fixed expense
Management plan
Appreciation

Question 6
Which term below match this description: “List of rates assigned to different
units or spaces in property”
Group of answer choices
Fixed expense
Leverage
Management agreement
Management plan
Rent roll
Rental schedule
Cash flow
Appreciation
Return
Variable expense

Question 7
Which term below match this description: “Use of borrowed funds to
purchase assets”
Group of answer choices
Return
Fixed expense
Rent roll
Rental schedule
Management agreement
Leverage
Appreciation
Cash flow
Management plan
Variable expense

Question 8
Which term below match this description: “Predictable cost, such as property
taxes, insurance premiums, or salaries”
Group of answer choices
Rent roll
Management agreement
Appreciation
Rental schedule
Fixed expense
Leverage
Variable expense
Cash flow
Management plan
Return

Question 9
Which term below match this description: “Increase in value due to the
economy or outside factors”
Group of answer choices
Variable expense
Rent roll
Fixed expense
Return
Appreciation
Management agreement
Leverage
Cash flow
Management plan
Rental schedule

Question 101 pts

Which term below match this description: “The profit generated by an
investment”
Group of answer choices
Cash flow
Leverage
Rental schedule
Fixed expense
Appreciation
Variable expense
Management plan
Management agreement
Return
Rent roll

Chapter 12 Quiz B
Question 1
Security deposits can be used to protect a property owner from: (Choose all
that apply)
Group of answer choices
a tenant who defaults on the payment of rent when due
damage to the property caused by a tenant

Question 2
The ability to take full advantage of an investment’s appreciation without
having to invest the full cost of the asset is a result of:
Group of answer choices
equity
leverage
cash flow
yield

Question 3
Which of the following properties would normally have the highest turnover
rate for tenants?
Group of answer choices
Shopping mall
Apartment complex
Industrial park
Office building

Question 4
Repairing a broken window in a building is an example of:
Group of answer choices
corrective maintenance
preventive maintenance
elective maintenance
housekeeping

Question 5
The difference between a property’s value and the total amount of liens
against it is called:
Group of answer choices
appreciation
cash on cash
cash flow
equity

Question 6
A property’s variable expenses include:
Group of answer choices
utilities and debt service ❌
utilities and maintenance expenses
property taxes and utilities ❌
maintenance expenses and insurance premiums ❌

Question 7
The property manager’s report to the property owner takes the form of a:
Group of answer choices
statement of operations
rental schedule ❌
property management agreement ❌
maintenance schedule ❌

Question 8
A property manager’s preliminary study usually covers four areas of analysis:
Group of answer choices
occupancy rates, absorption rates, interest rates, and property values
the economy, the site, the market, and occupancy rates
the building, the site, the neighborhood, and the city
the region, the neighborhood, the property, and the market

Question 9
Which of the following statements best describes the relationship between a
management proposal and a management plan?
Group of answer choices
There is no relationship between the management plan and the
management proposal
The management plan is put into effect by means of the management
proposal
The management plan is always developed first, before the management
proposal
The management proposal becomes the management plan when it is
accepted by the property owner

Question 10
A list of all the rental rates assigned to the various units in a property is
called a:
Group of answer choices
rental budget
rental schedule
rent roll
rental list

Question 11
The type of business operated by a tenant is usually of greatest concern to a
manager of:
Group of answer choices
residential property
office property
retail property
industrial property

Question 12
Which type of tenant is likely to want the longest lease term?
Group of answer choices
Office
Industrial
Retail
Residential

Question 13
A lease must be in writing if the:
Group of answer choices
property will be occupied by the tenant as her primary residence
tenant is an individual and not a business
annual rent is greater than $10,000
lease is for a fixed term longer than one year

Question 14
A description of the duties and powers of the property manager would most
likely be found in:
Group of answer choices
the management agreement
the management schedule
the management plan
the management proposal

Question 15
When occupancy rates are rising, property managers tend to:
Group of answer choices
lower rents
evict tenants
increase advertising
raise rents

Chapter 12 Quiz C
Question 1
A property’s variable expenses include:
Group of answer choices
utilities and debt service
maintenance expenses and insurance premiums
utilities and maintenance expenses
property taxes and utilities

Question 2
The types of businesses operated by tenants is usually of greatest concern to
a manager of:
Group of answer choices
industrial property
retail property
residential property
office property

Question 3
A property manager would prefer to renew an existing tenant’s lease rather
than find a new tenant for all of the following reasons except:
Group of answer choices
encouraging the existing tenant to pay overdue rent obligations
avoiding a period of vacancy between the time when the old tenant moves
out and the new tenant moves in
eliminating the need to market the property to find a new tenant
saving the expense of preparing the space for a new tenant

Question 4
A property manager would likely be concerned with all of the following
except:
Group of answer choices
trends in family size and lifestyles
labor force
market rental rates
local commission rates on real estate sales

Question 5
The most common form of advertising for residential rental property is:
Group of answer choices
broadcast advertising
display advertising
online or newspaper classified advertising
direct mail

Question 6
The difference between the value of a property and the total amount of the
liens against it is called:
Group of answer choices
cash on cash
cash flow
appreciation
equity

Question 7
A property manager’s preliminary study normally covers four basic areas of
analysis:
Group of answer choices
occupancy rates, absorption rates, interest rates, and property values
the region, the neighborhood, the property, and the market
the building, the site, the neighborhood, and the city
the economy, the site, the market ,and occupancy rates

Question 8
A clause in a lease stating that the lease will be automatically renewed at
the end of its term unless one of the parties gives the other notice of intent
to terminate the lease is called:
Group of answer choices
an option clause
an automatic renewal clause
a periodic renewal clause
a rollover clause

Question 9
Which of the following must take the form of a written document?
Group of answer choices
Management agreement
Property maintenance contract
Property management designation
Management plan

Question 10
One purpose of a market analysis performed as part of a property manager’s
preliminary study is in order to:
Group of answer choices
keep track of earnings and lifestyle trends among potential tenants
determine the number of competing units available to potential tenants
allow the property manager to become familiar with the property to be
managed
gain an understanding of regional economic conditions

Chapter 12 Quiz D
Question 1
To see which tenants are behind in their rent, a property owner would check
the:
Group of answer choices
rental schedule
rent roll
narrative report of operations
statement of disbursements

Question 2
The main disadvantage of investing in real estate is:
Group of answer choices
uniformly low returns
the use of leverage to increase returns
lack of liquidity
a constantly increasing supply, which decreases values

Question 3
Insurance premiums would be categorized as a:
Group of answer choices
pro rata expense
fixed expense
variable expense
daily expense

Question 4
The property manager’s main purpose must be to fulfill:
Group of answer choices
the owner’s objectives
cash flow goals for the manager’s office
the manager’s career goals
the government’s affordable housing goals

Question 5
The contract between a property manager and the owner of the property is
the:
Group of answer choices
lease-back agreement
management plan
management proposal
property management agreement

Question 6
If a regional analysis shows that the typical family size is four, with two
parents and two children, which of the following apartment units is most
marketable?
Group of answer choices
Three-bedroom
Studio
It is unlikely that one type of unit would be preferred over any other
Five-bedroom

Question 7
What document states the frequency and level of detail required in
management reports?
Group of answer choices
Statement of operations
Preliminary analysis
Management plan
Management agreement

Question 8
The most effective way to reduce expensive repair bills is to:
Group of answer choices
put off repairs for as long as possible
institute a policy of tenant-paid repairs
find cheap repair companies
emphasize preventive maintenance

Question 9
By completing a market analysis, a property manager discovers that the
average rental rate for comparable residential units is $1,650. For the
subject property, the property manager should set a rental rate of
approximately:
Group of answer choices
$1,650 per unit, to remain competitive
$1,550 per unit, to undercut the competition
$1,725 per unit, because tenants are not very well informed and will
probably pay a higher- than-average price

Question 10
The type of property that ordinarily demands the most marketing is:
Group of answer choices
residential
industrial
retail
office