Perry Real Estate Exam 100 Questions and Correct Answers Latest Updated 2026

Perry Real Estate Exam 100 Questions and Correct Answers Latest Updated 2026 Zoning is under the control of: - Correct Ans-government agencies. A contract that is binding and enforceable in a court of law is said to be: - Correct Ans valid. Escrows base monthly prorations on how many days? - Correct Ans-30 The area of a rectangular lot that is 50 feet wide by 100 feet deep is: - Correct Ans 5,000 sq. ft. For about how much assessed value is the Homeowner's Property Tax Exemption? - Correct Ans-$7,000 Misuse of the real estate appraisal report or coercion of the appraiser are now: - Correct Ans-federal felonies. A person who is authorized by the Secretary of State to witness the acknowledgement of documents is known as a(n): - Correct Ans-notary public. A broker who mixes personal funds with his or her principal's funds is guilty of: - Correct Ans-commingling. Real property consists of: - Correct Ans-land and structures on the land anything incidental to the land anything appurtenant to the land Which of the following is NOT one of the forces that affect the value of a neighborhood? - Correct Ans-Past sales considerations The federal civil rights law that applies to people with disabilities and protects them from discrimination is the: - Correct Ans-Americans with Disabilities Act When prices rise due to shortages of available properties, it is known as a: - Correct Ans-seller's market. Other than the initial small deposit to open the account, when are money deposits the personal property of the broker? - Correct Ans-Never Real Estate Real Estate Which "American" title insurance is usually requested by lenders? - Correct Ans-ALTA policy Which of the following is a requirement of a lease? - Correct Ans-length of lease amount of rent names of parties Which of the following is NOT an essential element of a real estate contract? - Correct Ans-Cash The California Department of Veteran's Affairs loan program is commonly known as the: - Correct Ans-CalVet Program. The market data method (comparison approach) is the most common approach for: - Correct Ans-houses condos vacant land What is the section in the Residential Listing Agreement (Exclusive Authorization and Right to Sell) that can entitle a broker to a commission even after the termination of the listing? - Correct Ans-Safety Clause How many square feet are in 1 acre? - Correct Ans-43.560 A month-to-month rental agreement is usually a: - Correct Ans-periodic tenancy. You are a landlord who discovers that one of your tenants is having new carpet installed in his apartment without your consent. To protect yourself, you should file a(n): - Correct Ans-notice of non-responsibility. Which of the following is FALSE concerning a grant deed? - Correct Ans-It is signed only by the grantee. Which of the following is NOT a type of property lot? - Correct Ans-Curb lot. The rate the borrower is actually paying (including interest, points, and loan fees) is called: - Correct Ans-the effective interest rate. For all practical purposes, discrimination laws evolved from Title VIII of the Civil Rights Act of 1968, 13th Amendment to the U.S. Constitution, and the U.S. Supreme Court Case? - Correct Ans-Jones v. Mayer The closing date is: - Correct Ans-the date the documents are recorded. The Real Estate Commissioner: - Correct Ans-enforces the Real Estate Law. Real Estate Real Estate When an improvement is permanently attached to real property it becomes: - Correct Ans-real property. If the "exact" terms of the listing agreement are met, the listing broker is entitled to a commission, even if the: - Correct Ans-owner refuses to sell to the buyer. Which of the following is TRUE concerning negotiable instruments? - Correct Ans--They are easily transferable from one person to another. -Promissory notes are considered negotiable instruments. -The most common example of a negotiable instrument is a personal check. Which advisory form reminds the buyer and seller of the importance of investigating a property before the sale? - Correct Ans-Statewide Buyer and Seller Advisory The term "EER" is used to measure: - Correct Ans-energy efficiency (the higher the better) A lien placed on more than one parcel, all parcels having the same owner, is known as a: - Correct Ans-blanket encumbrance. An ownership interest in real property that only exists for the life of any designated person or persons (often the grantee) is called a(n): - Correct Ans-life estate. The salesperson exam requires what percent of correct answers to pass? - Correct Ans-70% Of the following, who is permitted to purchase property in California without court approval? - Correct Ans-Foreign persons (aliens) The seller must provide the buyer of a condominium with: - Correct Ans-the CC&Rs the bylaws a copy of the most recent financial statement Which of the following is considered the most popular real estate brokerage websites? - Correct A and If the prospective investor of real property is most concerned with making money off the usefulness of the improvements, he or she would be most concerned with: - Correct Ans-economic life remaining in the improvements. A recorded public history of a specific property is called a: - Correct Ans-chain of title. CC&Rs refer to: - Correct Ans-covenants, conditions, and restrictions. Real Estate Real Estate Prior to receiving communication of its acceptance, a buyer can withdraw an offer: - Correct Ans-in writing personally by registered mail The current status of items from the county records affecting the property's title is called the: - Correct Ans-preliminary title report. An appraiser using the market approach collects many recent comparable sales. If a comparable property has a feature that is NOT present in the subject property, the estimated value of the feature is: - Correct Ans-subtracted from the sales price of the comparable. An oath or affirmation made before a notary public that the content of an instrument is true is called a(n): - Correct Ans-verification. Which of the following is NOT a California starting point in the U.S. Government Survey system? - Correct Ans-Baja Base Line and Meridian Which of the following statements constitutes and example of progression? - Correct Ans-A home of lesser value is worth more when located among homes of greater value. An agent who intentionally shows minorities homes for sale in a minority neighborhood only and refuses to communicate the availability of housing in other neighborhoods is guilty of: - Correct Ans-steering. Which of the following are considered non-institutional lenders? - Correct Ans-private lenders mortgage companies credit unions An agency is terminated by operation of law when: - Correct Ans-the agency agreement expires the broker or seller dies the property is destroyed The nominal interest rate is: - Correct Ans-stated on the note If a rental property is sold, the rents of the tenants are: - Correct Ans-prorated in escrow. An incompetent person: - Correct Ans-is of unsound mind cannot individually contract must have court approval to contract An "REIT" is a: - Correct Ans-real estate investment trust. Real Estate Real Estate The cost of approach is most effective: - Correct Ans-with new, unique, or public buildings. In real estate, the person who acts for and with the authority of another is called a(n): - Correct Ans-agent. Which of the following forms are included in the "Listing Package?" - Correct Ans- Disclosure Regarding Real Estate Agency Relationship -Possible Representation of More than One Buyer or Seller - Disclosure and Consent -Wire Fraud and Electronic Funds Transfer Advisory To be valid, a lease need NOT include the: - Correct Ans-words "let or demise" Which of the following is an example of a voluntary lien? - Correct Ans-Trust deed. Which word best describes the effects of income taxes as your income increases? - Correct Ans-Progressive If a property is to be returned to the grantor after a life estate is terminated, it is referred to as a(n): - Correct Ans-estate in reversion. An information booth is called a(n): - Correct Ans-kiosk. In a trust deed, the beneficiary is the: - Correct Ans-lender. The original housing law in California that deals with discrimination in business is called the: - Correct Ans-Unruh Civil Rights Act. The acronym "CLTA" stands for: - Correct Ans-California Land Title Association Which of the following is true about the salesperson's exam? - Correct Ans-150 multiple choice questions lasts three hours and fifteen minutes requires 70% correct score to pass How many square feet are in an acre? - Correct Ans-43,560 Which of the following is an important tax date to remember? - Correct Ans-November 1 December 10 February 1 A document given to a tenant stating that he or she must pay past due rent or vacate is known as a(n): - Correct Ans-three-day notice to pay Which of the following would best describe an open listing? - Correct Ans-nonexclusive Real Estate Real Estate If a buyer defaults on a conditional sales purchase contract (land contract), who would file a quiet title action to remove the cloud on the title? - Correct Ans-Seller. The "Purchase Agreement Package" includes which of the following forms? - Correct Ans--Disclosure Regarding Real Estate Agency Relationship -Buyer's Inspection Advisory -Wire Fraud and Electronic Funds Transfer Advisory Depreciation can be: - Correct Ans-curable incurable loss in value from any cause A mechanic's lien can be filed against a property by someone who has furnished which of the following services? - Correct Ans-landscaping roofing plumbing Noninstitutional lenders who usually lend their own money and then sell their loans to others and service the loans are called: - Correct Ans-mortgage bankers. A fee estate that is subject to particular limitations imposed by the grantor of the estate is called: - Correct Ans-a fee simple defeasible estate Mello-Roos liens: - Correct Ans--require a seller and/or salesperson to disclose -are municipal bonds -usually fund street improvements You enter a hardware store where you have an account, pick up a pair of $5.00 pliers, and wave them at the manager as you leave the store. This would be an example of a(n): - Correct Ans-implied contract. Which of the following is NOT a test to determine whether an item is a fixture? - Correct Ans-Date of purchase Which of the following statements is FALSE concerning economic obsolescence? - Correct Ans-It is due to wear and tear. A real estate professional who assists agents and brokers in the processing of a real estate transaction all the way through escrow is known as a(n): - Correct Ans transaction coordinator Real property subject to a lien is referred to as: - Correct Ans-encumbered. Which of the following is NOT usually prorated in escrow? - Correct Ans-Title insurance Real Estate Real Estate The "Pest Control Inspection Report and Certification" is also called the: - Correct Ans termite inspection. A Federal Estate tax return must be filed for any U.S. resident whose gross estate exceeds: - Correct Ans-$10,000,000. An outdated kitchen would be an example of: - Correct Ans-functional obsolescence What is the term used when a person leasing a property remains after the expiration of the stated term? - Correct Ans-estate at sufferance. A real estate license for both salesperson and a broker must be renewed every: - Correct Ans-four years. One-half of a section has how many acres? - Correct Ans-320 The bottom portion lining a doorway or window is the: - Correct Ans-sill. In order for victims of domestic violence to terminate a lease, they must provide the landlord a copy of a police report that a domestic violence report has been filed and a written: - Correct Ans-30-day termination notice. The Fair Employment and Housing Act prohibits: - Correct Ans-redlining. If a landlord knows that there is a current bed bug infestation, he or she: - Correct Ans cannot show or rent vacant units. When the Federal Reserve wants a "loose" money market, it: - Correct Ans-buys back bonds lowers the discount rate lowers the reserve requirements of banks When a residential tenant vacates a residential rental unit, the landlord has how long to return any unused portion of the tenant's security deposit? - Correct Ans-21 calendar days The fundamental goal of the California Housing Finance Agency (Cal HFA) is to: - Correct Ans-help minority buyers obtain financing for new home purchases. Under the Department of Real Estate Commissioner's rules and regulations, which of the following would be required to have a written employment contract with a broker? - Correct Ans-A real estate broker working for another real estate broker. When property is legally described using the U.S. Government Rectangular Survey System, the intersections of the north-south lines with the east-west lines are known as: - Correct Ans-base lines and meridian lines. Real Estate The type of misrepresentation which occurs least often in a real estate sale would be: - Correct Ans-malicious misrepresentation Real Estate