California Salesperson Exam Prep Progress Exam Questions with Correct Answers 2024-2025., Exams of Community Corrections

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California Salesperson Exam Prep Progress Exam Questions

with Correct Answers 2024-2025.

An agency relationship is created by all of the following except: A. agreement B. ratification C. specific performance D. estoppel - Ans-C. specific performance When a real estate agent acts as a dual agent for both the buyer and seller in a 1031 exchange, and does not disclose his dual agency to both parties, he may: A. provide grounds for either party to rescind the purchase agreement B. be prevented from receiving any commission C. be disciplined by the Real Estate Commissioner D. any of the above - Ans-D. any of the above Broker Bob collected rents from an apartment house under agreement with the owner. He had been collecting rents on the 1st of each month for several months and as of July 1, he had collected all but one. On July 2 the owner died. On July 3 the broker went to collect the last rental but the tenant refused to give the rent to the broker on the grounds that the owner had died and, therefore, the agency between broker and the owner was terminated. Which of the following is correct? A. The tenant is correct B. The broker has the right to collect rents until an executor has been appointed C. The death of the owner did not terminate the agreement D. Under the law of agency, the broker has the right to continue collecting rents but he must place all monies received in a neutral trust account until the court appoints someone else to collect the rents - Ans-A. The tenant is correct Under Article 3, Section 10176, of the California Real Estate Law, a broker could not be disciplined for which of the following? A. Acting for more than one party in a transaction with the knowledge and consent of all parties thereto B. Making any substantial misrepresentation C. Making any false promises of a character likely to influence D. Any conduct whether of a same or different character than specified in this Section which constitutes fraud - Ans-A. Acting for more than one party in a transaction with the knowledge and consent of all parties thereto Broker Jones secured an agency listing in writing from the Johnson Co. on a commercial building that had been vacant for some months. The listing broker entered into a verbal

agreement to share his commission with a cooperating broker. The cooperating broker procured a buyer, but broker Jones refused to split the commission. The cooperating broker: A. may recover his share in court B. may not recover his share in court because this was only a verbal agreement C. should ask the Commissioner to arbitrate the dispute D. should go to the Labor Commissioner - Ans-A. may recover his share in court An agent who pays part of the commission to the buyer: A. must inform the seller. B. is subject to criminal prosecution. C. is subject to discipline by the Real Estate Commissioner. D. is subject to a civil lawsuit by the seller, even if he disclosed everything to the seller. - Ans-A. must inform the seller. California Real Estate Law imposes upon a real estate agent the highest obligation of undivided interest and loyalty to his principal. This relationship is comparable to that of: A. a lessee to the lessor. B. a trustee to his beneficiary. C. a vendor to the purchaser. D. a salesperson to his broker. - Ans-B. a trustee to his beneficiary. When a broker is representing the buyer exclusively under a buyer agency contract, which of the following is true? A. The buyer's broker has no liability for acts of the listing broker B. The buyer's broker is responsible for his own and the listing broker's acts C. The buyer's broker has a fiduciary duty to the buyer and seller D. The buyer's broker must represent both parties - Ans-A. The buyer's broker has no liability for acts of the listing broker California Real Estate Law imposes upon a real estate agent the highest obligation of undivided interest and loyalty to his principal. This relationship is comparable to that of a: A. lessee to the lessor. B. trustee to the beneficiary. C. vendor to the purchaser. D. salesman to his or her broker. - Ans-B. trustee to the beneficiary. Which of the following would not be essential in order to create an agency relationship? A. A fiduciary relationship B. The agreement of the party to the agency C. An agreement to pay commission

D. A competent principal - Ans-C. An agreement to pay commission Michelle, a real estate broker, sold a condo that was listed by a broker from another company. What is her relationship to the listing broker? A. Principal B. Third party C. Co-agent D. Selling broker - Ans-D. Selling broker Which of the following is not required of a licensee under the current agency disclosure law? A. Disclosure B. Election C. Confirmation D. Representation - Ans-D. Representation The real estate listing is classified as an employment contract under whose terms the owner of the property appoints and authorizes a real estate broker to act as his or her agent. Which of the following statements is CORRECT? A. An owner is liable for a commission if he or she sells his property himself during the term of an exclusive agency listing. B. The owner is liable for a suit for specific performance if he or she refuses a buyer's offer that meets the exact terms of an exclusive right to sell listing. C. A broker has an enforceable right to a commission in an open listing if he is the "procuring cause" even if the owner sells through another broker. D. Death does not terminate an exclusive right to sell listing. - Ans-C. A broker has an enforceable right to a commission in an open listing if he is the "procuring cause" even if the owner sells through another broker. Which of the following is true of a buyer's agent? A. They are illegal in California B. They are not entitled to a commission C. They do not form an agency relationship D. Compensation may not necessarily come from the buyer - Ans-D. Compensation may not necessarily come from the buyer Acting for more than one party in a transaction: A. is illegal. B. is unethical. C. is within the law. D. makes the transaction void. - Ans-C. is within the law.

When acting as a listing agent, a real estate broker is liable to third parties for: A. only written contracts made in the name of his or her principal. B. actions of a cooperating broker who is the authorized subagent of the seller. C. his or her own torts. D. torts committed by his or her principal in the transaction. - Ans-C. his or her own torts. An agency relationship, such as in a listing, may be terminated by all of the following methods except: A. resignation of the agency by the real estate broker. B. mutual termination by agreement of both the agent and the seller. C. destruction of the property with which the agency is concerned. D. revocation by the principal if the agent has an interest in the subject matter of the agency. - Ans-D. revocation by the principal if the agent has an interest in the subject matter of the agency. A licensee who misrepresents property to the buyer while acting as an agent of the seller, is subject to: A. discipline B. civil lawsuits. C. criminal penalties. D. all of the above - Ans-D. all of the above By accepting the actions of an agent, even though there is no contract, a seller may create an agency by: A. estoppel B. express agreement. C. ratification. D. collaboration - Ans-C. ratification. What kind of agency is a listing? A. A special agency B. A general agency C. An executive agency D. A dual agency - Ans-A. A special agency Ms. Seller had been showing homes to a young, newly married couple for quite some time and finally found one which they wanted to buy. But even with the best loan available, they did not have enough cash for the down payment. They felt that they could raise the additional money they needed by borrowing against their automobile and other sundry personal property. Under these circumstances, the broker should: A. advise against it.

B. tell them it is their decision to make, but point out the pitfalls of this kind of financing. C. advise them to go ahead because real estate always appreciates in value. D. tell them nothing and let them make their own decision. - Ans-B. tell them it is their decision to make, but point out the pitfalls of this kind of financing. Which of the following forms must be completed before an offer can be written? A. Agency disclosure B. Deposit receipt C. Real estate transfer disclosure D. Listing - Ans-A. Agency disclosure The relationship of loyalty and trust that exists between a principal and agent most nearly resembles the relationship between: A. broker and salesperson. B. trustee and beneficiary. C. lessor and lessee. D. optionor and optionee. - Ans-B. trustee and beneficiary. Which of the following is not essential to the creation of an agency relationship? A. Consent of the principal B. Competency of the principal C. A fiduciary relationship D. Agreement to pay consideration - Ans-D. Agreement to pay consideration The person who gives authority to an agent to represent his or her interests in dealing with a third party is the: A. client B. Real Estate Commissioner. C. principal D. escrow agent. - Ans-C. principal An agent has only a duty of honesty and fairness in dealing with: A. third parties. B. principals. C. attorneys. D. city officials. - Ans-A. third parties. A broker acting as agent for a principal has as much authority as: A. other parties believe the agent to possess. B. the agent chooses to accept.

C. the principal actually or ostensibly confers upon him. D. he chooses to accept as limited by the Statute of Limitations. - Ans-C. the principal actually or ostensibly confers upon him. All of the following statements concerning agency relationships are correct, except: A. most broker-seller relationships are expressed agencies. B. the seller of a home is responsible for the misrepresentations of his real estate broker as long as the broker is acting within the scope of his authorized duties. C. the real estate broker is not responsible for losses suffered by a buyer who acted upon misrepresentations of the seller passed on to him by the broker as long as the broker was unaware of the seller's misrepresentations. D. net listings are encouraged in California, because they avoid conflicts of interest in the agency relationship. - Ans-D. net listings are encouraged in California, because they avoid conflicts of interest in the agency relationship. When may a real estate broker, acting as agent for the seller, refuse to submit a buyer's offer? A. When the owner has already accepted an offer B. When the owner has already accepted a better offer C. When the owner has given broker express instructions not to submit any further offers D. Never, all offers must be presented - Ans-C. When the owner has given broker express instructions not to submit any further offers In regards to a listing contract, a fiduciary relationship exists between the broker and: A. the buyer. B. the seller. C. both buyer and seller. D. all of the above - Ans-B. the seller. Broker White obtained a deposit from buyer Farley. The seller did not accept the offer, however, and broker would not return deposit. Farley contacted the Real Estate Commissioner. The Commissioner can: A. act only as mediator. B. investigate as required by real estate law. C. not act on this since it involves a real estate license. D. not act on this since it involves civil court action. - Ans-B. investigate as required by real estate law. If a broker dies after he or she has taken a listing, what happens to the agency relationship it created? A. The listing remains in effect until the property is sold. B. Another broker from the firm will work with the seller.

C. The agency immediately terminates. D. The agency will terminate when the seller lists the property with another broker. - Ans-C. The agency immediately terminates. A has given "B" the impression that "X" is "A"'s agent even though "X" was never given the authority to represent "A". From "B"'s standpoint, the agency is: A. power-of-attorney. B. constructive agency. C. ostensible D. rectified agency. - Ans-C. ostensible An agent who acts exclusively as the agent for the buyer may: A. present offers to the seller only. B. present offers to the seller with the seller's agent present. C. present offers to the seller's agent only. D. is acting illegally. - Ans-B. present offers to the seller with the seller's agent present. The fiduciary relationship between an agent and the principal is comparable to the relationship of a: A. trustor to beneficiary. B. mortgagor to mortgagee. C. trustor to trustee. D. trustee to beneficiary. - Ans-D. trustee to beneficiary. Broker Jones had signed an agreement to locate some property for her principal. Having found a property which suited the principal, Broker Jones determined that it could be purchased for less than her principal was willing to pay. She then bought the property and later sold it to her principal at the higher figure and kept the difference for herself. This would be called: A. commingling B. conversion C. divided agency. D. secret profit. - Ans-D. secret profit. To which of the following does a real estate agent owe a fiduciary duty? A. Third party B. Principal C. Escrow agent D. Customer - Ans-B. Principal When a real estate agent acts exclusively as a buyer's agent, he can do all of the following except:

A. present offers directly to the seller. B. present offers to the seller and seller's agent. C. withhold confidential information about the buyer from the seller. D. act as an exclusive agent of the seller. - Ans-D. act as an exclusive agent of the seller. The relationship of a real estate salesperson to his or her broker under the License Law is as: A. an employee. B. an independent contractor. C. a special agent. D. either (a) or (b) - Ans-A. an employee.