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California Real Estate Broker Examination practice questions

215 free questions with answers and explanations.

Practice test
  1. 101.A real estate broker is acting as a property manager for a residential complex. A tenant submits a written request to install a satellite dish on their balcony, which faces a common area. The lease agreement prohibits alterations to the exterior of the building without prior written consent from the landlord. What should the broker do?Real Estate Practice
  2. 102.A buyer is interested in purchasing a property that is part of a federally regulated subdivision. Under the Interstate Land Sales Full Disclosure Act (ILSFDA), if the subdivision consists of 100 or more unimproved lots, what document must the developer provide to the prospective buyer prior to signing a purchase agreement?Real Estate Practice
  3. 103.A buyer's agent is assisting a client with purchasing a home in a common interest development (CID). Before the close of escrow, the agent must ensure the buyer receives and reviews specific documents related to the CID. Which of the following is NOT typically a required document for buyer review in a California CID transaction?Real Estate Practice
  4. 104.A property manager is overseeing an apartment complex. A tenant reports a persistent leak in their bathroom ceiling that has caused water damage. The manager has been notified multiple times over several weeks but has not sent anyone to fix it. This situation most likely constitutes a breach of which of the following?Real Estate Practice
  5. 105.A real estate broker is acting as an escrow agent in a transaction where they are also the listing broker. This situation is commonly referred to as a 'broker-controlled escrow.' Under California law, what specific requirement applies to such an arrangement?Real Estate Practice
  6. 106.A real estate broker is acting as a property manager for a commercial building. The tenant, a retail business, experiences a significant decrease in foot traffic due to prolonged street construction directly in front of their store. The tenant requests a reduction in rent due to the impact on their business. Which of the following best describes the property manager's obligation in this scenario?Real Estate Practice
  7. 107.A property manager for an apartment complex is creating a budget for the upcoming year. The complex has 50 units, and the manager anticipates a 5% vacancy rate. Each unit rents for $1,500 per month. What is the estimated annual gross scheduled income for the complex, before accounting for vacancies?Real Estate Practice
  8. 108.A real estate agent is preparing an advertisement for a residential property for sale. Which of the following statements, if included in the advertisement, would most likely violate California fair housing advertising guidelines?Real Estate Practice
  9. 109.A real estate licensee is preparing an advertisement for a property. The advertisement states, 'Beautiful home, perfect for young families, located in a quiet, established neighborhood with excellent schools.' Which of the following statements is true regarding this advertisement?Real Estate Practice
  10. 110.A real estate broker is negotiating the sale of a commercial property. The buyer's agent discovers that the property is subject to an unrecorded easement granting access to an adjoining parcel, which was not disclosed in the listing. The listing broker claims ignorance of this easement. Which of the following is the MOST appropriate action for the listing broker to take upon learning of the unrecorded easement?Real Estate Practice
  11. 111.A real estate broker is representing a buyer in the purchase of a residential property. During the final walk-through, the buyer discovers that several fixtures, including a custom-built bookshelf bolted to the wall and an antique chandelier previously installed by the seller, have been removed. The purchase agreement did not specifically list these items as exclusions. What is the most likely legal classification of these removed items?Real Estate Practice
  12. 112.A real estate broker is preparing an advertisement for a property in a diverse neighborhood. To comply with fair housing laws, which of the following phrases should the broker AVOID using in the advertisement?Real Estate Practice
  13. 113.A real estate broker is managing a commercial property. The property's HVAC system requires a major repair costing $15,000. The management agreement specifies that the broker can authorize repairs up to $5,000 without prior owner approval. What is the broker's appropriate course of action?Real Estate Practice
  14. 114.A tenant in a commercial office building is experiencing frequent interruptions to their internet service, which is provided through the building's shared infrastructure. The tenant's lease states that the landlord is responsible for maintaining all common services, including internet. After repeated requests to the property manager, the issue remains unresolved, significantly impacting the tenant's business operations. What is the tenant's most appropriate initial action?Real Estate Practice
  15. 115.A licensed California real estate broker manages an office with several salespersons. One of the salespersons consistently fails to provide adequate documentation for transaction files, often missing disclosures or signed agreements. What is the broker's primary responsibility regarding this salesperson's deficient record-keeping?Real Estate Practice
  16. 116.A real estate broker operating in California receives a $10,000 earnest money deposit from a buyer. The broker places this money into their general business operating account, intending to transfer it to the client trust account within a few days when they have time. What specific California Real Estate Law violation has occurred?Real Estate Practice
  17. 117.A group of real estate agents working for the same brokerage decides to informally agree on a fixed commission rate for all residential sales in their exclusive territory. This agreement is discussed and implemented among themselves, without the direct knowledge of their broker. This action is a clear violation of which of the following?Real Estate Practice
  18. 118.A California real estate broker receives an earnest money deposit check from a buyer. According to California Department of Real Estate (DRE) regulations, how long does the broker typically have to deposit these funds into a trust account or deliver them to the principal/escrow?Real Estate Practice
  19. 119.A real estate agent lists a property that has an easement running through the backyard for public utilities. The agent is aware of this easement but fails to mention it to a prospective buyer who expresses interest in building a large shed in that specific area. This omission, if discovered after the sale, would most likely constitute a violation of the agent's duty of:Real Estate Practice
  20. 120.A California real estate broker's license expires. To renew the license, the broker must complete a certain number of continuing education (CE) hours. How many hours of DRE-approved continuing education are generally required for a broker to renew their license in California?Real Estate Practice
  21. 121.A real estate broker receives an offer on a property listed for $500,000. The offer is for $480,000, with a contingency that the buyer must sell their current home within 30 days. The broker presents this offer to the seller. Which of the following is the broker's primary duty in this situation?Real Estate Practice
  22. 122.A California real estate broker manages a trust account for client funds. One month, the broker receives a $5,000 earnest money deposit, collects $10,000 in rents, and pays a $1,500 repair bill for a managed property directly from the trust account. The broker also deposits $500 of their own money into the trust account to cover a bank service charge. Which of these actions constitutes impermissible commingling?Real Estate Practice
  23. 123.A licensee is preparing an advertisement for a property that states, 'Charming home, perfect for a young couple starting a family!' This advertisement would most likely be considered a violation of which of the following?Real Estate Practice
  24. 124.A real estate broker is negotiating a lease agreement for a commercial property. The landlord instructs the broker to only present offers from tenants who have been in business for at least five years and who are not of a specific ethnic origin. What should the broker do?Real Estate Practice
  25. 125.A real estate licensee is managing an office and wants to implement a new policy for handling client files. To comply with California real estate regulations, how long must transactional records, such as purchase agreements, listing agreements, and disclosures, be retained from the date of closing or expiration?Real Estate Practice
  26. 126.A real estate broker is working with a seller of a single-family home. The seller informs the broker that the property was built in 1968 and has not had any lead-based paint remediation. What is the broker's primary responsibility regarding lead-based paint disclosure in this transaction?Real Estate Practice
  27. 127.A buyer is interested in purchasing a property that is located within a Mello-Roos Community Facilities District. The agent representing the seller is aware of this. What is the seller's agent's primary disclosure responsibility regarding the Mello-Roos lien?Real Estate Practice
  28. 128.A tenant in a commercial lease for an office space wants to install custom shelving and repaint the walls in a vibrant color. The lease agreement specifies that any alterations to the premises require prior written consent from the landlord. The tenant proceeds with the changes without obtaining permission. This action is most likely considered a:Real Estate Practice
  29. 129.A real estate agent is listing a property for sale. The seller is a recent immigrant who speaks very little English and relies heavily on the agent for all communication and understanding of the transaction. The agent, who is fluent in the seller's native language, prepares all documents in English but provides verbal translations and explanations. What ethical principle is most critical for the agent to uphold in this situation?Real Estate Practice
  30. 130.A real estate broker is representing a buyer who is interested in a property located in a designated Natural Hazard Disclosure (NHD) area in California. The seller has provided a Natural Hazard Disclosure Statement. What is the buyer's agent's primary responsibility regarding this disclosure?Real Estate Practice
  31. 131.A buyer's agent discovers that a property for sale has a history of a recent death on the premises due to natural causes. The seller has not disclosed this information. In California, what is the buyer's agent's obligation regarding this discovery?Real Estate Practice
  32. 132.A real estate transaction involves a property built in 1975. The seller's agent is aware that the property's original paint may contain lead-based paint. Under federal law, what is the seller's primary obligation regarding lead-based paint disclosure?Real Estate Practice
  33. 133.A buyer makes an offer on a property and includes a contingency that the sale is dependent on the buyer selling their current home within 60 days. The seller accepts this offer but includes a 'kick-out' clause. What does this 'kick-out' clause typically allow the seller to do?Real Estate Practice
  34. 134.A buyer is purchasing a newly constructed home in a subdivision. The developer has provided a Public Report (also known as a Final Subdivision Public Report) issued by the California Department of Real Estate (DRE). What is the primary purpose of this Public Report?Real Estate Practice
  35. 135.A California real estate broker's license is set to expire. To renew their license, the broker must complete 45 hours of continuing education (CE). Of these 45 hours, how many hours must be dedicated to consumer protection courses?Real Estate Practice
  36. 136.A real estate broker is managing a 12-unit apartment building. One of the tenants reports a persistent leak in their bathroom ceiling. The broker, after inspecting, determines it's a minor issue and decides to fix it themselves to save the landlord money, rather than hiring a licensed plumber. Which of the following is the most significant ethical breach committed by the broker?Real Estate Practice
  37. 137.A buyer is interested in a property located in a designated Natural Hazard Disclosure (NHD) zone. The seller's agent provides the buyer with a completed NHD statement, which includes information about seismic hazards, flood zones, and fire risk. Which of the following is true regarding the buyer's right to rescind the purchase agreement after receiving this disclosure?Real Estate Practice
  38. 138.A real estate licensee is preparing a comparative market analysis (CMA) for a seller. The licensee notices that a recently sold comparable property, similar in size and amenities, sold for significantly less than expected due to a known neighborhood nuisance (e.g., a noisy factory next door). How should the licensee account for this in the CMA?Real Estate Practice
  39. 139.A real estate broker is managing a commercial office building. One of the tenants, a small law firm, installs new custom-built reception desks, filing cabinets bolted to the wall for security, and a specialized server rack that is hardwired into the building's electrical system. Upon the expiration of their lease, which of these items can the law firm legally remove?Real Estate Practice
  40. 140.A buyer's agent is assisting a client with purchasing a home. During the inspection, significant structural damage is discovered that was not apparent during the initial viewing. The seller's agent claims they were unaware of the damage. What is the buyer's agent's primary responsibility regarding this discovery?Real Estate Practice
  41. 141.A buyer is making an offer on a property and wants to ensure they can withdraw from the purchase without penalty if their current home does not sell within 60 days. Which of the following clauses should be included in the purchase agreement?Real Estate Practice
  42. 142.A buyer is interested in purchasing a residential property built in 1975. The seller has no knowledge of lead-based paint hazards, nor have they had the property tested. Under federal law, what is the seller's primary obligation regarding lead-based paint disclosure?Practice of Real Estate and Mandated Disclosures
  43. 143.A developer plans to donate a portion of their land to the city for the construction of a new public park. This act of transferring private land for public use is known as:Transfer of Property
  44. 144.A California real estate broker's license was revoked two years ago due to a violation of trust fund handling. The broker now wishes to reapply for a license. Which of the following statements is true regarding their ability to reapply?Practice of Real Estate and Mandated Disclosures
  45. 145.A buyer is purchasing a home and receives a preliminary title report that shows a long list of previous owners, transfers, and encumbrances. The record of ownership, beginning with the first owner and continuing to the present owner, is known as the:Transfer of Property
  46. 146.A property owner passes away without a valid will. The distribution of their real and personal property will be determined by the laws of:Transfer of Property
  47. 147.A homeowner, suffering from a serious illness, executes a will leaving all their real property to their adult child. This type of transfer of property upon death, guided by a valid will, is known as:Transfer of Property
  48. 148.A government agency initiates proceedings to acquire private land for a new highway project, even though the property owner does not wish to sell. The legal right of the government to take private property for public use, with just compensation, is called:Transfer of Property
  49. 149.A homeowner died without a will, and the court appointed an administrator to manage the decedent's estate. Part of the estate includes real property. To transfer this property to the legal heirs, the administrator must follow a legal process. What is this process called?Transfer of Property
  50. 150.A real estate agent is listing a property located within a Mello-Roos Community Facilities District. Which of the following statements accurately describes the agent's disclosure obligations regarding Mello-Roos?Practice of Real Estate and Mandated Disclosures