he sale of discounted trust deeds, business and finance homework help

  1. A broker advertised the sale of discounted trust deeds. In her ad, she stated a specific yield based on previous performance over the last year. Is she permitted to advertise this information?
    a. She can if the claim is an estimate made in good faith
    b. She can if she also includes the interest rate specified in the note and the amount of the discount from the original principal balance
    c. She can’t, because the Truth in Lending Act doesn’t allow such guarantees
    d. She can’t unless the Bureau of Real Estate has verified the specific yield

1 points

QUESTION 2

  1. A broker can disburse funds directly from a trust account to pay:
    a. the broker’s business expenses, when the client owes the broker money
    b. licensing renewal fees owed to the Bureau of Real Estate
    c. a commission share owed to a salesperson
    d. a commission share owed to a cooperating broker

1 points

QUESTION 3

  1. A buyer of a business opportunity should obtain a Certificate of Clearance from the:
    a. state Board of Equalization
    b. county tax assessor
    c. Secretary of State
    d. state Franchise Tax Board

1 points

QUESTION 4

  1. A contract in which one party grants another the right to sell goods or services under the grantor’s marketing plan is a:
    a. business opportunity
    b. real property security
    c. franchise agreement
    d. bill of sale

1 points

QUESTION 5

  1. After a broker placed the prospective buyer’s good faith deposit into escrow, the deal broke down and a disagreement arose between the buyer and the seller as to the ownership of the deposit. The broker deposited the funds with a court, filing this type of action:
    a. partition
    b. interpleader
    c. assignment
    d. equitable disposition

1 points

QUESTION 6

  1. After it has been proven in a disciplinary hearing that the accused licensee has violated the license law, the Commissioner may:
    a. suspend the license
    b. revoke the license
    c. impose a monetary penalty instead of suspension
    d. Any of the above

1 points

QUESTION 7

  1. All of the following activities could be considered unlawful price fixing in violation of antitrust laws, except:
    a. a discussion between two competing brokers about their respective commission rates
    b. publication of a report on commission rates charged by members of a multiple listing service
    c. a discussion between a broker and a salesperson working for the broker regarding commission rates charged by the brokerage
    d. a public announcement by a broker that he intends to raise his commission rates in the coming year

1 points

QUESTION 8

  1. All of the following are exempt from the real estate licensing requirement except:
    a. a resident manager of a residential apartment complex
    b. an owner of a rental self-storage facility
    c. a certified property manager (CPM)
    d. a trustee in bankruptcy

1 points

QUESTION 9

  1. Betty allowed her real estate license to expire ten months ago. In order to engage in real estate activities, she must:
    a. apply to have her license reinstated
    b. pay a penalty in order to be able to renew her license
    c. take the license exam
    d. complete 60 clock hours of approved real estate courses

1 points

QUESTION 10

  1. If the Real Estate Recovery Account pays funds to a judgment creditor of a licensee, that individual’s license won’t be reinstated until he:
    a. reimburses the Recovery Account for the entire amount, plus interest
    b. pays $20,000 back to the Recovery Account
    c. pays the judgment creditor any amount not covered by the Recovery Account
    d. pays back the judgment creditor and the Recovery Account

1 points

QUESTION 11

  1. The Real Estate Commissioner’s regulations require that broker-salesperson agreements:
    a. must be in writing
    b. must be kept on file at the broker’s office
    c. must be available for inspection by the Bureau of Real Estate
    d. All of the above

1 points

QUESTION 12

  1. The amount of money that remains after all commissions are subtracted from a brokerage’s gross income is known as the:
    a. desk cost
    b. company dollar
    c. desk fee
    d. effective gross income

1 points

QUESTION 13

  1. The duties of the Real Estate Commissioner include all of the following except:
    a. holding disciplinary hearings
    b. granting or denying licenses
    c. appointing the Attorney General
    d. issuing rules and regulations governing real estate licensees

1 points

QUESTION 14

  1. The license law requires real estate brokers to keep adequate records of their transactions:
    a. until closing
    b. for at least three years after closing
    c. for at least seven years after closing
    d. until authorized by the Bureau of Real Estate to destroy them

1 points

QUESTION 15

  1. The owner of a small investment firm has been selling real estate without a license. Who would criminally prosecute this person for her actions?
    a. Local police
    b. Real Estate Commissioner
    c. Attorney General
    d. District attorney of the county where the violations occurred

1 points

QUESTION 16

  1. When a broker’s license is issued to a corporation, the license:
    a. is issued in the name of the firm, with at least one officer of the corporation named as the designated broker
    b. names all officers of the corporation as designated brokers
    c. names an officer as broker and the firm as designated broker
    d. is issued in the name of the designated broker only

1 points

QUESTION 17

  1. When a licensed salesperson advertises his own property for sale, the advertisement must disclose:
    a. the name of the salesperson’s broker
    b. the name of the salesperson
    c. the fact that the salesperson is a licensed real estate agent
    d. None of the above

1 points

QUESTION 18

  1. Which of the following is NOT a violation of license regulations concerning trust accounts?
    a. A trust account shortage
    b. A trust account overage
    c. Not depositing advance fees into a trust account
    d. Keeping $200 of personal funds in the trust account to pay account service charges

1 points

QUESTION 19

  1. Which of the following persons is required to have a real estate license?
    a. An attorney at law, in the performance of her duties as a lawyer
    b. One who sells property for a family member and keeps a small percentage of the selling price as compensation
    c. A property owner who sells his own property
    d. An authorized attorney in fact, acting without compensation

1 points

QUESTION 20

  1. Which of the following is NOT true of a broker’s trust account?
    a. Trust funds must be deposited in the account no later than three business days after receipt
    b. A broker must maintain only one trust account
    c. The account must be specifically designated as a trust account
    d. The account may not be interest-bearing (unless the owner of the funds requests that funds be placed in an interest-bearing account)
 
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