California Real Estate Salesperson practice questions
227 free questions with answers and explanations.
- 51.A broker drafts a listing agreement to sell a property that is currently zoned exclusively for agricultural use, but the contract calls for construction of a shopping center prohibited by that zoning. What is the legal status of this contract?Contracts
- 52.An investigation by the DRE reveals that a broker deposited client trust funds into the same bank account used for office operating expenses. Which disciplinary consequence is most likely for this violation?Practice of Real Estate and Disclosures
- 53.A buyer's agent, without the buyer's knowledge or consent, tells the listing agent the maximum price the buyer is willing to pay. This disclosure breaches which duty owed to the buyer?Laws of Agency and Fiduciary Duties
- 54.A homeowners association's CC&Rs prohibit any structure taller than one story within the subdivision. A homeowner begins building a two-story addition in violation of this restriction. What is the most likely legal remedy available to enforce the CC&Rs?Property Ownership and Land Use Controls
- 55.A lender forecloses on a deed of trust through a nonjudicial trustee's sale after the borrower defaults on a purchase-money loan. If the sale proceeds are insufficient to cover the full debt, what can the lender do under California law?Financing
- 56.A real estate agent representing a seller in a diverse neighborhood consistently shows minority buyers listings only in certain zip codes while showing similar listings in other areas to non-minority buyers. This practice is best described as:Practice of Real Estate and Disclosures
- 57.A buyer submits a personal check as a good faith deposit with written instructions asking the broker to hold the check uncashed until the seller accepts the offer. What is the broker's obligation regarding this arrangement?Practice of Real Estate and Disclosures
- 58.Several competing brokers in a local market informally agree to all charge the same 6% commission rate on residential listings. What is the legal problem with this arrangement?Laws of Agency and Fiduciary Duties
- 59.A developer sells lots in a new subdivision without ever obtaining a Public Report from the California Department of Real Estate as required by the Subdivided Lands Act. What remedy is generally available to a buyer who purchased a lot under these circumstances?Property Ownership and Land Use Controls
- 60.A promissory note calls for the borrower to pay only accrued interest each month, with the entire principal balance due in a single lump-sum payment at maturity. This type of note is known as a:Financing
- 61.A property owner in a single-family residential zone wants to build a detached garage that would encroach 3 feet into the required 10-foot side-yard setback due to the unusual narrow shape of the lot. What must the owner apply for from the local planning agency?Property Ownership and Land Use Controls
- 62.A property owner gives a neighbor oral permission to park a boat trailer in the owner's driveway whenever needed. The owner retains the right to revoke this permission at any time. This arrangement is best classified as a:Property Ownership and Land Use Controls
- 63.A tenant with a documented disability requests permission to keep an emotional support animal in a no-pets apartment complex, and asks that the pet deposit be waived. The landlord must:Practice of Real Estate and Disclosures
- 64.A broker hires an unlicensed personal assistant to help with office tasks. Which of the following activities may the unlicensed assistant legally perform?Practice of Real Estate and Disclosures
- 65.Under Proposition 19, a parent transfers their primary residence—assessed (Prop 13 base year) value of $300,000 and current market value of $900,000—to their child, who moves into the home as their primary residence within one year of the transfer. Assuming the property qualifies for the parent-child exclusion, what will the property's new assessed value be for property tax purposes?Transfer of Property
- 66.A homeowner tells three different real estate agents that whichever one first brings a buyer who completes the purchase will earn the commission, with no exclusivity granted to any single agent. This arrangement is best described as:Contracts
- 67.A salesperson creates a personal business card listing only her name and phone number, omitting her employing broker's name and license identification number. Under California law, this advertising practice is:Practice of Real Estate and Disclosures
- 68.A rental home in a subject neighborhood rents for $1,800 per month. Comparable rental properties in the area indicate a market Gross Rent Multiplier (GRM) of 130. What is the estimated value of the subject property using the GRM method?Property Valuation and Financial Analysis
- 69.During a real estate transaction, why must an escrow holder remain a neutral third party who acts only under mutual written instructions from buyer and seller?Transfer of Property
- 70.A property owner mails a written offer to sell her lot to a buyer. Before the buyer receives or accepts the offer, the owner suddenly dies. What is the legal effect on the offer?Contracts
- 71.A seller enters into an open listing with three different brokers simultaneously, retaining the right to sell the property herself without owing any commission. The seller personally finds a buyer through a friend and completes the sale without involving any of the three brokers. What commission, if any, is owed to the brokers?Laws of Agency and Fiduciary Duties
- 72.A dishonest seller sells the same parcel to two different buyers. Buyer A purchases first but does not record. Buyer B purchases later, has no actual or constructive notice of Buyer A's earlier purchase, and records immediately. Under California's recording statute, who generally prevails?Transfer of Property
- 73.A broker's unlicensed personal assistant, acting without express authorization, negotiates a price reduction with a buyer that the broker later learns about and knowingly accepts by proceeding with the sale at that price. What type of agency relationship has been created regarding the assistant's negotiation?Laws of Agency and Fiduciary Duties
- 74.A seller mails a written offer to sell a rental property to a buyer for $600,000. Two days later, before the buyer has responded, the seller changes her mind and mails a letter to the buyer revoking the offer. The buyer receives the seller's revocation letter on Monday but had already mailed an acceptance letter on Sunday, before receiving the revocation. Under California contract law, is a binding contract formed?Contracts
- 75.A residential purchase contract in California includes a provision notifying the buyer about a public database maintained by law enforcement. This provision relates to which required disclosure?Practice of Real Estate and Disclosures
- 76.A home is 20 years old chronologically, but due to excellent maintenance, recent upgrades, and modernized systems, an appraiser estimates it has the condition and utility of a 10-year-old home. What term describes this 10-year estimate?Property Valuation and Financial Analysis
- 77.A broker deposits $200 of personal funds into the trust fund bank account and leaves it there permanently for record-keeping convenience. How is this practice classified under California Real Estate Law?Laws of Agency and Fiduciary Duties
- 78.A landlord adopts a race-neutral policy requiring all rental applicants to have a minimum credit score of 750. Statistical evidence shows this policy disproportionately excludes applicants of a particular national origin, even though the policy was not intended to discriminate. This scenario illustrates which fair housing violation theory?Practice of Real Estate and Disclosures
- 79.A city plans to approve a large shopping center development that could significantly increase traffic congestion and air pollution in the surrounding area. Under the California Environmental Quality Act (CEQA), what must the city prepare before approving the project?Property Ownership and Land Use Controls
- 80.A homeowner purchased their house in 2010 for $400,000, which became the Prop 13 base year value. In 2023, they sell it for $750,000 to a new buyer. What happens to the property's assessed value for tax purposes as a result of this sale?Transfer of Property
- 81.An adjustable-rate mortgage is tied to a 1-year Treasury index currently at 4.2%, with a lender margin of 2.75%. What is the fully indexed rate the borrower's interest rate would adjust to at the next reset, assuming no rate caps apply?Financing
- 82.A listing agent receives three written offers on a property in the same week. One buyer's agent asks whether other offers exist. Under California agency practice, the listing agent's proper course of action is to:Practice of Real Estate and Disclosures
- 83.An appraiser develops three separate value indications for the same property: $250,000 by the cost approach, $245,000 by the sales comparison approach, and $238,000 by the income approach. In the final step of the appraisal process, how should the appraiser arrive at a single value opinion?Property Valuation and Financial Analysis
- 84.A property owner who listed with a broker dies suddenly while the listing is still active and before any buyer has been secured. What is the legal effect on the agency relationship?Laws of Agency and Fiduciary Duties
- 85.A purchase agreement requires the buyer to obtain financing as a condition of closing. Before the loan is approved, a new state law is passed that makes it illegal to finance or transfer that specific type of property. Neither party is at fault. What is the legal effect on the contract?Contracts
- 86.A buyer receives a properly completed Transfer Disclosure Statement (TDS) delivered in person by the seller's agent on March 1. Under California law, the buyer has the right to rescind the purchase agreement based on the TDS if the buyer acts by which deadline?Practice of Real Estate and Disclosures
- 87.A buyer enters into a valid purchase agreement to buy a duplex. Before closing, the buyer wants to transfer their rights and obligations under the contract to a business partner. Assuming the contract is silent on the issue, which statement is most accurate under California contract law?Contracts
- 88.A homeowner tells a broker, "If you find me a buyer, I'll pay you a 6% commission," but the broker makes no promise to perform any specific act. This type of contract, where only one party makes a promise in exchange for the other party's performance, is best classified as:Contracts
- 89.An appraiser is comparing a subject property to Comparable A, which sold for $310,000 and has an in-ground pool. The subject property does not have a pool. The appraiser determines the pool adds $8,000 in value. What adjusted value should be used for Comparable A when comparing it to the subject?Property Valuation and Financial Analysis
- 90.Which of the following is protected under California's Fair Employment and Housing Act (FEHA) but is NOT one of the seven protected classes under the federal Fair Housing Act?Practice of Real Estate and Disclosures
- 91.A vacant parcel of land in a growing commercial corridor could be developed as either a small retail strip or a surface parking lot. The retail strip is legally permitted, physically suitable, and financially feasible, and produces the highest net return to the land among all reasonably probable uses. According to appraisal theory, this retail strip use represents the property's:Property Valuation and Financial Analysis
- 92.A tenant with a physical disability requests permission to install a wheelchair ramp at her own expense at the entrance to her rental unit. Under the Fair Housing Act, this request is best classified as a:Practice of Real Estate and Disclosures
- 93.Under DRE trust fund accounting requirements, how often must a broker perform a written reconciliation comparing the trust account bank balance with the broker's separate record of individual client balances?Practice of Real Estate and Disclosures
- 94.A seller, without cause, revokes a broker's exclusive listing agreement two weeks before its expiration date, after the broker had already spent significant funds on advertising the property. Which statement best describes the legal effect of this revocation?Laws of Agency and Fiduciary Duties
- 95.During escrow, a seller's agent learns that the property's septic system failed inspection after the TDS was already delivered to the buyer. What is the seller's obligation under California law?Practice of Real Estate and Disclosures
- 96.A salesperson working under a broker commits a violation of the Real Estate Law while acting within the scope of employment. Which statement best reflects the broker's responsibility under California law?Laws of Agency and Fiduciary Duties
- 97.A homeowner has a 30-year fully amortized fixed-rate loan. As the loan matures over time, which of the following occurs with each successive monthly payment?Financing
- 98.A broker orders a Natural Hazard Disclosure (NHD) report from a reputable third-party company for a listing. The report later turns out to contain an error the broker had no way of knowing about. Under California law, the broker's liability for this error is:Practice of Real Estate and Disclosures
- 99.For a contract to be legally valid, which combination of elements must all be present?Contracts
- 100.A broker collects an advance fee from a prospective client to cover the cost of advertising a property before any services have been rendered. Under California law, what must the broker do with this advance fee?Practice of Real Estate and Disclosures