California Real Estate Practice Mid-Term Exam Rooks Summer 2005
1. An agent is showing a property that belongs to a seller with AIDS. What should the agent do? A. Disclose this fact since it is a material fact B. Disclose this fact only if asked C. Never disclose this fact D. Withdraw from the listing

2. In an in-house transaction, all of the following are true EXCEPT: A. A broker can present an offer on one of his own listings B. The broker will negotiate only on behalf of the seller C. The broker must obtain both parties’ written consent D. The broker owes certain fiduciary duties to each party

3. For which of the following would a lender be least likely to require deposits into an impound account? A. Mortgage interest B. Homeowners' association fees C. Property taxes D. Annual assessments

4. Under the Fair Housing and Employment Act, a person who has suffered from discrimination in housing may receive: A. an opportunity to buy or rent the property if it is still available B. an opportunity to buy or rent a similar property C. money damages D. Any of the above

5. A prudent lender who is deciding whether or not to make a real estate loan to a prospective borrower will ensure that: A. the market value of the property is greater than the loan amount B. the borrower's credit is satisfactory C. the borrower has adequate cash reserves after paying the downpayment and closing costs D. All of the above

6. A man owns a house and has a first deed of trust executed against the home. He has a substantial amount of equity in the home. He needs a loan of $9,600 for college tuition for his son. A real estate broker arranges the loan, which is secured by the home. What document does the broker need for this transaction? A. Real property security statement B. Broker’s loan disclosure statement C. Real property securities license D. None of the above

7. The buyer