Real Estate Salesperson Pre-licensing
Pre-Test Questions
Course Introduction
The Real Estate Salesperson Pre-licensing course is designed to prepare aspiring real estate professionals for obtaining their salesperson license. This comprehensive course covers fundamental topics such as property ownership, land use controls, agency relationships, contracts, real estate finance, property valuation, and applicable state and federal laws. Students will learn ethical practices, client communication, listing procedures, and negotiation skills critical to a career in real estate. The curriculum includes interactive discussions, case studies, and exam preparation materials, ensuring that participants gain the knowledge and confidence required to pass the licensing exam and succeed in the dynamic real estate industry.
Recommended Textbook
California Real Estate Principles 9th Edition by Dennis J. McKenzie
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15 Chapters
624 Verified Questions
624 Flashcards
Source URL: https://quizplus.com/study-set/3880 Page 2
Chapter 1: Introduction to Real Estate
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45 Verified Questions
45 Flashcards
Source URL: https://quizplus.com/quiz/77312
Sample Questions
Q1) The foundation of a standard built home sits on the:
A) mudsill
B) collar beam
C) footing
D) stud
Answer: C
Q2) A legal definition of real estate includes many elements and parts. Which of the following items would not be a part of real estate?
A) farm equipment
B) fences
C) growing trees
D) permanent two-story buildings
Answer: A
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3
Chapter 2: Part I: Legal Description, Method of Acquiring
Title , and Deeds
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69 Verified Questions
69 Flashcards
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Sample Questions
Q1) Which of the following is not a principal baseline and meridian?
A) Humboldt
B) Mount Diablo
C) Riverside
D) San Bernardino
Answer: C
Q2) Shelves in a retail store are an example of:
A) real estate
B) encumbrances
C) trade fixtures
D) real property
Answer: C
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4
Chapter 3: Encumbrances, Liens, and Homesteads
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40 Verified Questions
40 Flashcards
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Sample Questions
Q1) A utility easement held by the telephone company for the installation of a telephone line would be best described as:
A) easement in gross
B) easement appurtenant
C) dominant tenement
D) lien right
Answer: A
Q2) Per the formally declared homestead law, an owner's equity within the allowed amount is protected for how many months in the event the homeowner sells and purchases another home?
A) 3 months
B) 6 months
C) 12 months
D) 18 months
Answer: B
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Page 5
Chapter 4: Real Estate Agency
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40 Verified Questions
40 Flashcards
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Sample Questions
Q1) The broker of a real estate office wanted to deposit funds from a recently opened transaction. He had his trust account, business account, and personal account all at the same bank. Inadvertently, he made out the deposit slip to deposit the client's funds into his personal account.
A) This was an innocent mistake. He can just redeposit the money into his trust account before the close of escrow.
B) The broker should call and immediately transfer the funds into his trust account.
C) The broker doesn't have to worry unless the DRE audits his account.
D) the broker is guilty of commingling funds.
Q2) Real estate commissions are:
A) negotiable
B) established by the California Association of Realtors
C) limited per the Commissioner's Code of Ethics
D) determined by local Boards of Realtors
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6
Chapter 5: Real Estate Contracts and Mandated
Disclosures
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40 Verified Questions
40 Flashcards
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Sample Questions
Q1) At what minimum age is a civilian single person, who has not had any court or guardianship intervention, legally capable of entering into an enforceable real estate contract?
A) 21 years
B) 18 years
C) 19 years
D) 16 years
Q2) An exclusive right to sell listing is given to Broker Pardo, a sole owner, but Pardo dies prior to finding a buyer; the listing:
A) passes to the estate of Pardo
B) terminates
C) continues if another broker buys the Pardo real estate office
D) none of the above is correct
Q3) When would a broker be legally required to reveal the amount of commission under a net listing?
A) when the property is listed
B) after the close of escrow
C) whenever the seller asks
D) before the seller accepts the buyer's offer
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Chapter 6: Practical Real Estate Mathematics
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40 Verified Questions
40 Flashcards
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Sample Questions
Q1) Real estate broker José, lists a property for $300,000. A six percent commission is agreed upon. Another agent brings an offer for $280,000. The seller then asks Jose to reduce his side if the commission to two and a half percent. José agrees. What is the difference between the reduction in commission and the original commission that Jose will receive?
A) $18,000
B) $2,000
C) $7,000
D) $9,000
Q2) Investor X owns a studio condo that rents for $637.50 per month net after expenses and has a market value of $127,500. Investor Y has a similar condo that rents for a net of $700 per month. Using Investor X's home as a guide, what is the estimated value of Investor Y's condo? (round to nearest $1,000)
A) $127,500
B) $135,000
C) $140,000
D) $145,500
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Page 8
Chapter 7: Introduction to Real Estate Finance
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34 Verified Questions
34 Flashcards
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Sample Questions
Q1) A lender foreclosed on a California home that had a VA loan. The proceeds from the sale were not enough to cover the outstanding loan amount. Which of the following statements are true?
A) The lender takes the loss and cannot do anything about it.
B) The lender can sue the seller who sold the home to the veteran.
C) The lender cannot sue because California is an anti-deficiency judgment state.
D) The lender can sue for a deficiency judgment.
Q2) An investor wants to acquire income property that will generate a 10% cap rate. A 6-unit apartment complex rents for $950 per unit per month. Vacancies are 5% of gross rents and operating expenses total $20,500 per year. What is the maximum the investor should offer for this property? (round to nearest $1,000)
A) $684,000
B) $573,000
C) $445,000
D) $403,000
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Chapter 8: Part I: Real Estate Lenders
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40 Verified Questions
40 Flashcards
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Sample Questions
Q1) The VA will guarantee loans on the following properties:
A) mobile homes
B) townhomes
C) both a and b
D) none of the above
Q2) When the Department of Veteran's Affairs "guarantees" a loan, it does so in order to protect the:
A) lender
B) veteran
C) seller
D) assets of the Federal National Mortgage Association
Q3) An enforceable due-on-sale clause is correctly called a/an:
A) acceleration clause
B) alienation clause
C) wraparound clause
D) prepay clause
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Chapter 9: Real Estate Appraisal
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40 Verified Questions
40 Flashcards
Source URL: https://quizplus.com/quiz/77304
Sample Questions
Q1) Find the value by use of the income approach. (round to the nearest $100)
1) an older three-unit apartment rents for $1,000 per month per unit
2) vacancy factor of 5%
3) annual operating expenses $10,000
4) capitalization rate of 8%
A) $302,500
B) $288,000
C) $276,500
D) $275,000
Q2) For gross income purposes, most lenders want the borrower to have at least a:
A) 1-year work history
B) 2-year work history
C) 3-year work history
D) 4-year work history
Q3) The appraisal principle that states that the value of a property tends to be influenced by the price of acquiring an equally desirable property:
A) principle of supply and demand
B) principle of highest and best use
C) principle of substitution
D) principle of change
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Chapter 10: The Role of Escrow and Title Insurance Companies
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40 Verified Questions
40 Flashcards
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Sample Questions
Q1) Which of the following is not exempt from the escrow licensing law?
A) trust companies
B) escrow companies
C) title insurance companies
D) real estate brokers when acting as an agent in the transaction
Q2) Termination of an escrow can occur:
A) when the escrow officer completes the paperwork
B) when the listing agent says it is okay
C) upon completion of the sale
D) none of the above
Q3) An appraisal is good for what amount of time
A) six months
B) three months
C) the day it is signed by the appraiser
D) it depends on the lender
Q4) In Northern California, most escrows are handled by:
A) escrow companies.
B) real estate agents.
C) title companies.
D) all of the above.
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Chapter 11: Landlord and Tenant Relations
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40 Verified Questions
40 Flashcards
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Sample Questions
Q1) A professional property manager
A) is required to have a real estate license
B) must reside on the premises
C) is typically a salaried employee of the property owner
D) all charge the same amount for their services
Q2) Which is not an obligation of the tenant:
A) To pay rent
B) to not interfere with other tenants
C) To give a 60 notice before vacating on a month to month tenancy
D) not to damage the premises
Q3) An onsite property manager:
A) must be a broker
B) must be certified.
C) must be licensed
D) none of the above
Q4) Which title policy do lender's require?
A) CLTA policy
B) standard policy
C) ALTA policy
D) ABRA policy
Page 13
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Chapter 12: Land-Use Planning, Subdivisions, Fair Housing, and
Other Public Controls
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39 Verified Questions
39 Flashcards
Source URL: https://quizplus.com/quiz/77301
Sample Questions
Q1) It is illegal to disqualify a person who wishes to buy or rent a home based on:
A) physical handicap
B) income levels
C) credit rating
D) all of these
Q2) Discrimination due to race, color, or creed in housing under both federal and state legislation is:
A) illegal
B) unlawful
C) unenforceable
D) all of the above
Q3) All of the following are common interest developments, except:
A) condominiums
B) PUDs
C) stock cooperatives
D) standard tract homes
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Chapter 13: Introduction to Taxation
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39 Verified Questions
39 Flashcards
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Sample Questions
Q1) This event could trigger a new property tax assessment:
A) a refinance by the current owner
B) a real estate transfer
C) a construction loan
D) the rental of a single family residence
Q2) The county tax assessor's duty is to determine:
A) the tax rate to be applied to assessed values
B) assignment of parcel numbers to current secured tax rolls
C) tax to be paid by the property owner
D) value of the property for tax purposes
Q3) The Subdivision Map Act is enforced by
A) the Real Estate Commissioner
B) Housing and Urban Development (HUD)
C) the local city or county
D) the Attorney General
Q4) City Council members:
A) set city property tax rates as allowed by law
B) establish city budgets
C) both a and b
D) neither a nor b
Page 15
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Chapter 14: Single-Family Homes and Mobile Homes
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39 Verified Questions
39 Flashcards
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Sample Questions
Q1) Regarding a second (vacation) home:
A) they are considered excellent tax shelters
B) mortgage interest is deductible to the extent allowed by law
C) they are considered excellent investments
D) all of the above are correct
Q2) When a special assessment is made on a piece of property under the Street Improvement Act of 1911:
A) the property owner can deduct principal and interest
B) it is based on the front footage of the property
C) it is appraised as per the amount of square footage
D) assessment must be paid within six months
Q3) The rental operation of a mobile home park is within the jurisdiction of the:
A) Department of Real Estate
B) Department of Housing and Urban Development
C) Department of Veterans Affairs
D) State Department of Housing and Community Development
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Chapter 15: A Career in Real Estate
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39 Verified Questions
39 Flashcards
Source URL: https://quizplus.com/quiz/77298
Sample Questions
Q1) What is not a factor to consider when to determine investment potential?
A) Risk
B) Liquidity
C) Carpet quality
D) Management requirements
Q2) Under certain conditions, a corporation can be licensed as a real estate broker. Which of the following is one of those conditions?
A) the corporation must have an office in California
B) declared dividends are used to pay sales commissions
C) chairman of the board must have a real estate salesperson's license
D) a principal officer of the corporation must be licensed as a broker
Q3) The Real Estate Law exempts some people from needing a real estate license. Which of the following are not exempt?
A) onsite resident managers of apartment buildings
B) clerical employees of lending institutions
C) any person who receives compensation (commission) for performance of an act defined within the realm of a salesperson's licensing
D) attorneys while practicing law
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