Free CA Real Estate Transfer of Property Questions and Answers — Questions and Answers
Question 1: Agent advice to owners on showing their home would NOT include
- instructions to be present so they can volunteer information (Correct answer)
- cleaning instructions
- landscaping instructions
- repair instructions
Correct answer: instructions to be present so they can volunteer information
Real estate agents typically advise owners *not* to be present during showings. Owners tend to volunteer too much information, which can inadvertently reveal weaknesses in their negotiating position or deter potential buyers. The agent's role is to control the showing experience and information flow to best represent the seller's interests, making the property more appealing without unnecessary disclosures.
Question 2: A broker showed African American prospective buyers homes in African American and racially mixed neighborhoods. He would show African American prospects homes in predominantly Caucasian areas only if the prospects specifically requested to see homes in those areas. The broker's action would be described as
- illegal
- unethical
- steering
- all of these (Correct answer)
Correct answer: all of these
The broker's actions constitute 'steering,' which is the illegal practice of guiding prospective buyers to or away from certain neighborhoods based on their race or other protected characteristics. This practice is a violation of fair housing laws, making it illegal. Furthermore, it is unethical as it perpetuates discrimination and limits housing choices, thus all options accurately describe the broker's conduct.
Question 3: When you ask prospective buyers if they prefer June 1, July 1, or August 1 for possession, what type of closing technique are you using
- inducement
- positive choice (Correct answer)
- fear of loss
- narrative close
Correct answer: positive choice
A positive choice closing technique offers the buyer a choice between two or more desirable options, assuming they have already decided to purchase. By asking about preferred possession dates (June 1, July 1, or August 1), the agent bypasses the 'if you buy' question and moves directly to 'when you buy.' This subtly encourages the buyer to commit by focusing on a minor detail of the transaction, making the purchase seem like a foregone conclusion.
Question 4: Property managers can be protected against receiving no fees when managing a vacant property they are unable to rent by a
- holdover clause
- recapture clause
- minimum fee (Correct answer)
- separate leasing fee
Correct answer: minimum fee
A minimum fee clause in a property management agreement protects the property manager by guaranteeing a base payment even if the property remains vacant and unrented. This ensures the manager is compensated for their time and effort in marketing and attempting to lease the property, regardless of whether a tenant is secured. Without such a clause, the manager might receive no income for their work on a vacant unit.
Question 5: The principle reason owners try to sell their homes without an agent is?
- to have a quick sale
- to save the commission (Correct answer)
- to be able to pick the buyer
- none of these
Correct answer: to save the commission
The primary motivation for owners attempting to sell their homes without a real estate agent (For Sale By Owner or FSBO) is almost always to avoid paying the commission typically charged by agents. This commission, often a significant percentage of the sale price, represents a substantial cost that sellers hope to save and keep for themselves. While other factors might play a role, cost savings is the dominant reason.
Free CA Real Estate Transfer of Property Questions and Answers
Agent advice to owners on showing their home would NOT include