California Real Estate Paper 35

C.
All we know for sure is that she is a cooperating broker, because cooperating brokers may be sellers’ or buyers’ agents and less likely dual agents.

A.
For purposes of supervision, salespersons are always considered employees.

A.
A listing agent must provide the disclosure before the listing agreement is signed. A buyer’s agent must provide the disclosure to the buyer as soon as practical, but certainly before the buyer signs an offer to purchase. The disclosure form must again be presented to the seller before the offer is submitted and accepted by the seller. Choice A is the best choice here primarily because it is the obligation of the buyer’s agent to present the agency disclosure form to the seller before presenting the offer and certainly before the seller signs acceptance of the offer. In those situations in which the buyer’s agent does not directly present the offer to the seller, it is still the obligation of the buyer’s agent to have the form prepared so that the listing agent can proceed in accordance with law.

B.
The only close choice is D but the broker would not be breaking the law if the seller knew, so the word always makes this answer wrong.

A.
The remaining activities listed in the choices require specific permission from the principal.

A.
Potential gross income is an estimate of market income from all sources including rent, parking, vending, and laundry machines.

B.
The cost approach is most useful for special-purpose or unique properties where there would be few comparables and no rental income.

C.
This is a particularly difficult question because all the answers will likely have some effect on the value of the house. The fact that the question focuses on the relationship of the smaller homes to the larger one should lead you to the specific principle of regression.

D.
An appraiser never adjusts the subject, so choices A and B can be eliminated. Then remember to ask yourself the question “What do I have to do to the comparable to make it like the subject?” In this case, because the comparable is better, you take away (subtract the value of) the feature.

D.
Anticipation is an economic principle. The fourth characteristic of value is scarcity.