• A real estate sales agent may be employed by:
• a) any member of the public.
• b) their broker.
• c) Both a and b.
• d) Neither a nor b.
• 2. As a prerequisite to an agent's use of an income and expense data worksheet, the agent asks a prospective broker:
• a) the price range of property the agent is most likely to list and sell.
• b) the number of sales the agent will likely close in that price range during their first year.
• c) the gross broker fees generated by the number of sales during the first year.
• d) All of the above.
• 3. A _______________ occurs when a broker or their agent has a professional or personal bias which hinders their ability to fulfill the fiduciary duties owed to their client.
• a) dual agency
• b) conflict of interest
• c) fiduciary relationship
• d) agency hazard
• 4. A _______________ is referred to as a selling agent in agency law.
• a) buyer's agent
• b) seller's agent who is not in direct contact with a buyer
• c) dual agent.
• d) seller without a broker.
• 5. A broker who fails to disclose their dual agency is subject to:
• a) loss of their broker fee.
• b) liability for their client's money losses.
• c) disciplinary action by the California Bureau of Real Estate (CalBRE).
• d) All of the above.
• 6. When a dual agency is established in a one-to-four unit residential sales transaction (i.e., both parties are represented by the same broker) the broker and their agents may not pass on any information from one party to the other relating to:
• a) the price the buyer may be willing to pay.
• b) the terms of payment the seller may be willing to accept.
• c) Both a and b.
• d) Neither a nor b.
• 7. Brokers supervise and police the business-related conduct of their agents by:
• a) setting the number of listings and sales to be acquired and closed.
• b) overseeing the agents' management of time spent working for the broker.
• c) analyzing the agents' incomes and expenses.
• d) All of the above.
• 8. The Agency Law Disclosure form is mandated to be presented to all parties by a broker or their agent when listing, selling, buying or leasing for a term greater than one year:
• a) commercial property.
• b) property containing one-to-four residential units.
• c) Both a and b.
• d) Neither a nor b.
• 9. Failure of the seller's agent to provide the seller with the Agency Law Disclosure prior to entering into a listing agreement:
• a) results in the loss of the broker fee on the sale if challenged by the seller.
• b) does not result in the loss of the broker fee if later disclosed as an addendum to the purchase agreement.
• c) only results in the loss of a broker fee when selling a one-to-four residential unit property.
• d) has no effect on whether the agent is entitled to a broker fee.
• 10. The _____________ relationship established on entering into a listing agreement specifies the scope of activities the broker and their agents are to undertake and authorizes the broker to carry them out.
• a) adversarial
• b) management
• c) employment
• d) selling
• 11. An _____________ listing does not need to contain an expiration date.
• a) open
• b) exclusive agency
• c) exclusive right-to-buy
• d) None of the above.
• 12. An exclusive right-to-sell listing agreement entitles a broker to a fee from a seller when:
• a) the seller accepts an offer from a buyer submitted by the broker.
• b) anyone acquires the property during the listing period.
• c) the seller acquires replacement property in a transaction negotiated by the broker.
• d) All of the above.
• 13. Rejection occurs when:
• a) a seller seeks different terms by a counteroffer.
• b) a seller refuses to accept a full listing offer.
• c) Both a and b.
• d) Neither a nor b.
• 14. A withdrawal-from-sale clause entitles a broker to be paid a full listing fee if, during the listing period, the owner's conduct causes the property to be:
• a) withdrawn from the market.
• b) transferred to others.
• c) made unmarketable.
• d) All of the above.
• 15. On a breach by a seller of a listing which does not contain a termination-of-agency clause, the terminated broker is only entitled to:
• a) the out-of-pocket costs expended to service the listing.
• b) the value of the time and effort expended under the listing.
• c) Both a and b.
• d) Neither a nor b.
• 16. A broker earns a fee under a safety clause when:
• a) property information is provided to prospective buyers by the seller's agent during the listing period.
• b) the seller is notified of the identification of the prospective buyers as soon as possible after termination of the listing.
• c) the property is acquired by a prospective buyer disclosed on the list as a result of negotiations conducted during the safety period.
• d) All of the above.
• 17. The amount of the broker fee sought by a seller's agent on a property is implicitly related to:
• a) when escrow closes.
• b) how long the agent has been employed by the broker.
• c) the time and effort the agent spent servicing the listing.
• d) the seller's tax benefits obtained on the sale.
• 18. A Statement of Account for trust funds needs to include:
• a) the amount of each disbursement of funds from the trust account.
• b) an attached copy of any advertisements paid for from the advance cost deposit.
• c) Both a and b.
• d) Neither a nor b.
• 19. "For Sale" signs posted outside of a mobilehome can be of a(n) _________ design and need to face the street, but cannot extend into the street.
• a) A-frame
• b) L-frame
• c) I-frame
• d) Any of the above.
• 20. The legal basis for a broker's recovery against a seller for intentional interference with the payment of a fee is a:
• a) contract law theory.
• b) tort law theory.
• c) Both a and b.
• d) Neither a nor b.
• 21. Broker fee provisions in a buyer's listing agreement may include:
• a) a fee on any sale provision.
• b) a termination fee provision.
• c) a safety clause fee provision.
• d) Any of the above.
• 22. Judicially and based on legislation, a cooperating broker is defined as a subagent with specific affirmative duties of cared owed:
• a) the seller.
• b) the buyer.
• c) the broker.
• d) All of the above.
• 23. A seller's broker does not have a contractual right to collect a fee from a breaching buyer when the broker lacks:
• a) a client relationship with the buyer which carries with it the implied promise to avoid interference with the payment of a fee.
• b) a written agreement signed by the buyer to pay a fee in lieu of the seller on the buyer' breach.
• c) Both a and b.
• d) Neither a nor b.
• 24. When a buyer and seller both agree in writing to the payment of a broker fee, ___________ are considered third party beneficiaries.
• a) their lenders
• b) their escrow officer
• c) their brokers
• d) All of the above.
• 25. All assurances to pay a broker fee on a real estate transaction are required by the __________ to be in writing and signed by the person who agreed a fee will be paid.
• a) Statute of Corporations
• b) Statute of Frauds
• c) Statute of Torts
• d) All of the above.