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California Real Estate Broker Examination practice questions

215 free questions with answers and explanations.

Practice test
  1. 201.A property owner wants to transfer their real estate to their grandchild but wishes to retain control and income from the property until their death. Which of the following deed types would best accomplish this objective?Transfer of Property
  2. 202.A licensed real estate broker in California, operating as a sole proprietor, is preparing to renew their license. Which of the following is a mandatory requirement for reactivating an expired license if it has been more than two years since the expiration date?Practice of Real Estate and Mandated Disclosures
  3. 203.A real estate agent is showing a property in California to a potential buyer. The property is located in an area that has been designated as a 'Special Flood Hazard Area' by the Federal Emergency Management Agency (FEMA). Which of the following disclosures is legally required for this property?Practice of Real Estate and Mandated Disclosures
  4. 204.A buyer is making an offer on a residential 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 wants to retain the ability to accept a better offer if one comes along, without having to wait the full 60 days. Which clause would typically be added to the purchase agreement to allow the seller this flexibility?Real Estate Practice
  5. 205.A real estate broker is managing a property for an owner. The broker collects rent from tenants and pays for property expenses from a trust account. According to California Real Estate Commissioner's Regulations, what is the maximum amount of the broker's own funds that can be kept in the client's trust account to cover bank charges or maintain minimum balance requirements?Practice of Real Estate and Mandated Disclosures
  6. 206.A buyer is interested in purchasing a property that is part of a federally regulated subdivision. The developer has provided the buyer with a 'Property Report' as required by law. The buyer reviews the report and decides they no longer wish to purchase the property. If the buyer received the Property Report less than three business days before signing the purchase agreement, what is their right regarding rescission?Real Estate Practice
  7. 207.A real estate broker is acting as a property manager for a residential apartment complex. A tenant reports a persistent, foul odor emanating from an unknown source within their unit, significantly impacting their ability to use and enjoy the premises. The property manager has been unresponsive to multiple requests for inspection and repair over several weeks. What potential legal action could the tenant pursue due to the property manager's inaction?Real Estate Practice
  8. 208.A buyer is concerned about potential hidden defects in the title of a property they are purchasing, such as forged documents or undisclosed heirs, which would not be revealed by a standard title search. What type of protection specifically covers these types of risks?Transfer of Property
  9. 209.A buyer's agent is representing a client interested in purchasing a property located within a Mello-Roos Community Facilities District (CFD). The property is subject to a special tax levied by the district. Which of the following statements regarding the Mello-Roos disclosure is most accurate for a California real estate transaction?Real Estate Practice
  10. 210.A licensed California real estate broker manages a trust account for client funds. The broker typically deposits earnest money, security deposits, and rents into this account. Which of the following items is the broker permitted to keep in the trust account without it being considered unlawful commingling?Real Estate Practice
  11. 211.An appraiser is evaluating a 40-year-old apartment building that has been meticulously maintained and recently upgraded with modern amenities, including new kitchens, bathrooms, and a state-of-the-art lobby. The appraiser determines that its physical condition and utility are comparable to a 15-year-old building. What term best describes the appraiser's assessment of the building's age?Valuation and Appraisal
  12. 212.A buyer is considering a mortgage where the interest rate is fixed for the initial five years and then adjusts annually based on a specified index. Which type of loan is this buyer most likely considering?Financing
  13. 213.A real estate agent is preparing a listing agreement for a seller who wants to retain the right to sell the property themselves without owing a commission to the agent. However, if the agent successfully finds a buyer, the seller agrees to pay a commission. Which type of listing agreement best fits this scenario?Contracts
  14. 214.A commercial property owner is considering adding a new, state-of-the-art climate control system to their existing building. They want to understand if the cost of this improvement will be fully recovered in the property's increased market value. Which principle of value is most relevant to their assessment?Valuation and Appraisal
  15. 215.A buyer and seller have a signed purchase agreement. Before the close of escrow, the buyer discovers that the property's foundation has significant, undisclosed structural damage. The buyer decides to terminate the contract and demands the return of their earnest money deposit. Which of the following legal remedies is the buyer most likely pursuing?Contracts