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California Real Estate Salesperson practice questions

227 free questions with answers and explanations.

Practice test
  1. 151.Under California's Statute of Frauds, which of the following real estate-related agreements is generally required to be in writing to be enforceable?Contracts
  2. 152.A landowner sells the rear portion of her parcel to a buyer. The rear parcel has no direct access to any public road except by crossing the seller's remaining land. What type of easement is most likely to arise in favor of the rear parcel?Property Ownership and Land Use Controls
  3. 153.A landlord in California withholds a portion of a tenant's security deposit after move-out. Which of the following is a lawful use of the security deposit under California law?Practice of Real Estate and Disclosures
  4. 154.A single-family home recently sold for $240,000. Comparable rental data shows similar homes rent for $2,000 per month. What is the Gross Rent Multiplier (GRM) for this property?Property Valuation and Financial Analysis
  5. 155.A lender advertises a 30-year fixed loan with a note rate of 5.5%, but charges the borrower 2 discount points and $1,500 in additional finance charges at closing. Compared to the note rate, the Annual Percentage Rate (APR) disclosed under Truth in Lending will be:Financing
  6. 156.A small apartment building has a Gross Potential Income (GPI) of $100,000 per year. During the year, the owner experienced $8,000 in vacancy loss and $2,000 in uncollected rent (bad debt). What is the vacancy and collection loss rate for this property?Property Valuation and Financial Analysis
  7. 157.A comparable property sold six months ago for $280,000. Market research shows that property values in the area have been appreciating at a steady rate of 0.5% per month since that sale. What adjusted sale price should the appraiser use for this comparable to reflect current market conditions?Property Valuation and Financial Analysis
  8. 158.A property owner grants a tenant a clause in the lease stating that if the owner ever decides to sell the property, the tenant must be given the opportunity to match any bona fide offer received from a third party before the owner can sell to that third party. This clause is best described as a:Contracts
  9. 159.A 10-unit apartment building has a gross potential rental income of $120,000 per year. The appraiser applies a vacancy and collection loss factor of 5%. What is the Effective Gross Income (EGI)?Property Valuation and Financial Analysis
  10. 160.A broker represents both the buyer and the seller in the same transaction. What must the broker obtain from both parties for this dual agency to be lawful in California?Laws of Agency and Fiduciary Duties
  11. 161.A developer conveys a parcel 'to the City of Riverdale, so long as the land is used as a public park.' If the city stops using the land as a park, what happens to title?Property Ownership and Land Use Controls
  12. 162.A developer purchases two adjacent vacant lots. Lot 1 is worth $80,000 and Lot 2 is worth $75,000 when valued separately. Once combined into a single larger parcel suitable for a commercial development, the combined parcel appraises for $190,000. What term describes the $35,000 increase in value created by combining the lots?Property Valuation and Financial Analysis
  13. 163.A licensed broker completes a sale after an unlicensed acquaintance referred the buyer to him. The broker pays the acquaintance a $500 referral fee for the tip. Under California Business and Professions Code Section 10137, is this payment lawful?Laws of Agency and Fiduciary Duties
  14. 164.A salesperson's license is due for renewal. Under California law, how many hours of continuing education must a salesperson complete for a four-year renewal (first renewal after initial licensure)?Practice of Real Estate and Disclosures
  15. 165.A listing broker becomes personally interested in purchasing her own listed property because she believes it is significantly underpriced. Before making an offer, what must the broker do to comply with her fiduciary obligations to the seller?Laws of Agency and Fiduciary Duties
  16. 166.A contractor begins visible grading work on a construction site on March 1. The lender records a construction loan deed of trust on March 15, before framing begins. The contractor is not paid and records a mechanic's lien on June 1. Which statement about lien priority is correct?Property Ownership and Land Use Controls
  17. 167.A property manager refuses to rent a two-bedroom apartment to a family with three children, citing an occupancy limit of two persons per unit regardless of bedroom count. Under California fair housing law, this policy is most likely:Practice of Real Estate and Disclosures
  18. 168.Owner A holds an easement across Owner B's lot for driveway access. Owner A later purchases Owner B's entire lot, becoming sole owner of both the dominant and servient tenements. What happens to the easement?Property Ownership and Land Use Controls
  19. 169.An appraiser is applying the cost approach and estimates the cost to construct a building with the same utility as the subject, using modern materials, design standards, and construction methods, rather than an exact duplicate of the original structure. This cost estimate is known as:Property Valuation and Financial Analysis
  20. 170.A buyer records a deed to a property the day after closing. What is the primary legal effect of recording this deed at the county recorder's office?Transfer of Property
  21. 171.A divorcing spouse wants to release any interest they might have in a jointly titled property to the other spouse, without making any claims about the quality of title. Which deed is most appropriate?Transfer of Property
  22. 172.A seller's agent discovers that a property lies within a Special Flood Hazard Area as designated by FEMA. Under the Natural Hazard Disclosure Statement requirements, what must be disclosed to the buyer?Practice of Real Estate and Disclosures
  23. 173.An appraiser is applying the cost approach using the square foot method. A comparable new building of similar quality and design recently cost $150 per square foot to construct. The subject building has 2,000 square feet of gross building area. What is the estimated reproduction cost new of the subject building?Property Valuation and Financial Analysis
  24. 174.A buyer pays a seller $2,000 for the exclusive right to purchase a vacant lot at a fixed price anytime within the next 90 days. The buyer is not obligated to buy. What type of agreement is this?Contracts
  25. 175.A property owner transfers title to their personally owned property into their own revocable living trust for estate planning purposes, with no change in beneficial ownership and no consideration paid. What documentary transfer tax is owed on this transfer?Transfer of Property
  26. 176.An adjustable-rate loan includes a monthly payment cap limiting how much the payment can increase regardless of interest rate changes. During a period of rising rates, the capped payment is insufficient to cover all interest due, and the shortfall is added to the loan's principal balance. This outcome is called:Financing
  27. 177.A seller's exclusive listing agreement with Broker Yee expires on June 1 and includes a valid 90-day safety (extension) clause protecting the broker's commission for buyers introduced during the listing term. On May 20, during an open house hosted by Broker Yee, a buyer first views the home. The listing expires without an accepted offer. On July 15, the seller sells the home directly to that same buyer without involving any broker. Is Broker Yee entitled to a commission?Laws of Agency and Fiduciary Duties
  28. 178.A broker employs an unlicensed personal assistant to help with paperwork and scheduling. Which compensation arrangement would violate California Real Estate Law?Laws of Agency and Fiduciary Duties
  29. 179.An investor is evaluating a property valued at $500,000. Comparable properties in the market are selling at an 8% capitalization rate. Based on this cap rate, what is the property's estimated annual Net Operating Income (NOI)?Property Valuation and Financial Analysis
  30. 180.A landlord refuses to rent to a prospective tenant solely because the tenant intends to pay rent using a federal Section 8 housing voucher. Under California law, this refusal:Practice of Real Estate and Disclosures
  31. 181.A buyer orally agrees to purchase a small parcel of land from a seller, pays the full price in cash, and takes possession, making substantial improvements to the land in reliance on the oral agreement. The seller later refuses to sign a deed transferring title. In this situation, a court may:Contracts
  32. 182.A home sells for $620,000 in a California county that imposes only the standard county documentary transfer tax rate. What is the amount of documentary transfer tax due?Transfer of Property
  33. 183.After close of escrow, a buyer discovers a known roof leak that the seller was aware of but intentionally omitted from the Transfer Disclosure Statement. The buyer's most appropriate legal remedy is to:Practice of Real Estate and Disclosures
  34. 184.A well-maintained home located directly next to a newly built landfill has lost significant market value, even though the home itself has no physical or design defects. What term best describes this type of value loss?Property Valuation and Financial Analysis
  35. 185.Under RESPA, a mortgage broker refers a borrower to a title company in exchange for a referral fee, without providing any actual service for that fee. This arrangement is:Financing
  36. 186.A prospective tenant is denied a rental unit because of their sexual orientation. Which California law specifically prohibits this type of housing discrimination and is enforced by the state's Civil Rights Department?Practice of Real Estate and Disclosures
  37. 187.A broker acts as an undisclosed dual agent in a transaction without informing either party or obtaining consent. When this is discovered, what is the most likely consequence regarding the broker's commission?Laws of Agency and Fiduciary Duties
  38. 188.A grantor signs and dates a grant deed conveying property to a buyer but keeps the deed in a locked desk drawer, intending to give it to the buyer only after receiving full payment next month. The grantor dies before delivering the deed. What is the legal status of the attempted conveyance?Transfer of Property
  39. 189.Which of the following activities requires a California real estate license?Practice of Real Estate and Disclosures
  40. 190.A duplex produces a Net Operating Income (NOI) of $60,000 per year. Comparable properties in the area are selling at an 8% capitalization rate. Using the income approach, what is the estimated value of the duplex?Property Valuation and Financial Analysis
  41. 191.An appraiser determines that a building has a total economic life of 45 years and an effective age of 18 years based on its condition and upgrades. Based on this information, what is the building's remaining economic life?Property Valuation and Financial Analysis
  42. 192.A seller signs a net listing agreement specifying she must receive a net of $280,000 from the sale. The broker sells the home for $310,000, with the seller fully informed of and agreeing to this arrangement before closing. How much commission does the broker earn?Laws of Agency and Fiduciary Duties
  43. 193.A parcel of land borders a natural, year-round flowing stream. The owner wishes to use a reasonable amount of the stream's water on the land immediately adjacent to the watercourse without applying for a state permit. This type of water right is known as a:Property Ownership and Land Use Controls
  44. 194.A newly constructed home is being sold for the first time by the builder. Under California's Natural Hazard Disclosure Act, which statement is correct regarding NHD requirements for this transaction?Practice of Real Estate and Disclosures
  45. 195.A seller offers to sell a home for $450,000. The buyer responds in writing, "I accept, but only if you include the refrigerator." Under contract law principles tested on the California exam, this response:Contracts
  46. 196.For 6 continuous years, a rancher openly used a dirt trail across a neighbor's unfenced land to move cattle, without permission and in a manner visible to anyone. California's period for acquiring a prescriptive easement is 5 years. Which additional element must the rancher prove to establish a prescriptive easement?Property Ownership and Land Use Controls
  47. 197.A property was purchased in 2018 for $500,000, establishing its Prop 13 base year value. Assuming the maximum allowable annual increase and no changes in ownership or new construction, what is the assessed value in 2021 (three years later)?Transfer of Property
  48. 198.A developer plans to create 6 lots by dividing one large parcel through a recorded final map process, then sell the lots to individual buyers. Which California law primarily governs the local approval process for creating these lots, as distinct from the law governing the sale disclosures to buyers?Property Ownership and Land Use Controls
  49. 199.A broker represents a buyer under a buyer representation agreement. Under the accepted purchase contract, the seller pays the buyer's broker a commission through escrow. To whom does the broker owe fiduciary duties?Laws of Agency and Fiduciary Duties
  50. 200.A real estate agent places a newspaper ad stating 'Beautiful 3BR home, $650,000, call 555-0100' without including the agent's name or broker identification. This advertisement violates California law because it is:Practice of Real Estate and Disclosures