CALIFORNIA: REAL ESTATE

CALIFORNIA: REAL ESTATE

PRINCIPLES FINAL EXAM

Question (1): The Real Estate Law is found in the

• Licensing Code
• Business and Professions Code
• Health and Safety Code
• Corporations Code

CORRECT ANSWER : Business and Professions Code

Question (2): The Real Estate Commissioner reports to the

• California Bureau of Real Estate
• governor
• Real Estate Advisory Commission
• legislature

CORRECT ANSWER : governor

Question (3): Salesperson Sam owns 25% of the outstanding

shares of Rollo Realty, Inc., and broker Barbara Rollo owns the remaining shares. This division of ownership is?

• acceptable
• mandated
• discouraged
• prohibited

CORRECT ANSWER : acceptable

Question (4): Salesperson Sam is part owner of Rollo Realty,

Inc. In the broker's absence, Sam frequently reviews the work of sales associates. This is?

• acceptable
• mandated
• discouraged
• prohibited

CORRECT ANSWER : prohibited

Question (5): A real estate business that is a partnership can

have more than one office location, provided

• a broker partner obtains an additional license for each

location

• all partners are real estate licensees
• there is a designated broker-officer
• there is at least one partner at each location

CORRECT ANSWER : a broker partner obtains an

additional license for each location

Question (6): The sale or transfer of goods ordinarily held for

sale in the course of business is governed in California by the?

• Business Opportunity Code
• Commercial Transfer Law
• Uniform Commercial Code
• Real Estate Law

CORRECT ANSWER : Uniform Commercial Code

Question (7): Todd, an officer of Ajax Corporation and not a

real estate licensee, successfully negotiated the purchase of the Smith Widget Plant on behalf of Ajax. Todd received a commission on the sale in addition to his normal salary. Todd

• did not need a real estate license for the deal

• should have had a real estate license
• is exempt from licensing requirements
• None of these

CORRECT ANSWER : should have had a real estate license

Question (8): If a real estate license is NOT renewed before it

expires, the licensee?

• is allowed to complete transactions in progress
• is allowed to finish transactions that are substantially

complete

• must cease all real estate activities
• may act under authority of another agent's license for a

period not to exceed 60 days

CORRECT ANSWER : must cease all real estate activities

Question (9): A real estate licensee can offer a mobile home

for sale that is?

• in a manufacturing plant, ready for delivery
• transportable under an exemption from the vehicle code