150 CALIFORNIA REAL ESTATE PRACTICE EXAM QUESTIONS WITH CORRECT VERIFIED ANSWERS |ALL GRADED A+

Ace the California Real Estate Salesperson or Broker Exam with the most comprehensive practice test available. This resource contains 150 exam-style questions with correct verified answers (all graded A+) covering every major topic tested by the California Bureau of Real Estate (CalBRE/DRE). What's Inside: Agency & Fiduciary Duties: Fiduciary responsibility – to whom does an agent owe loyalty? (The principal) Single agency vs. dual agency – broker represents buyer or seller, but not both. Listing agent obligations to unrepresented buyers (honesty and fairness). Exclusive agency listing – seller finds own buyer, agent not entitled to compensation. Commingling is the opposite of separation. Contracts & Agreements: Unilateral contract (only one party makes a promise to perform). Bilateral contract (promise exchanged for promise). Purchase agreement – legally binds buyer and seller. Voidable contracts (minor signing, fraud) vs. void contracts (incompetent party). Novation – substituting one party for another on a contract. Amendment (changes terms) vs. addendum (adds terms). Specific performance lawsuit – buyer forces seller to complete sale. Injunction – court order to stop action until resolution. Liquidated damages clause – found in purchase contracts. Property Ownership & Interests: Fee simple absolute – highest form of ownership recognized by law. Life estate – interest held for duration of a designated person's life. Joint tenancy with right of survivorship (equal interest, survivorship). Tenancy by the entirety and community property – both pertain to spouses. Condominium (condo) – units owned outright, not leased. Dominant estate (has easement over another property) vs. servient tenement (subject to easement). Appurtenant easement – runs with the land. Deeds & Title: General warranty deed – offers grantee the most protection (covenants and warranties). Deed – written legal document conveying ownership. Color of title – appearance of valid title but actual defect exists. Alienation – act of transferring title or interest from one party to another. Real Estate Finance: Hypothecation – pledging asset as collateral for a loan. Conventional loan – not insured or guaranteed by government. Mortgagee = lender. Acceleration clause – requires full repayment upon breach (associated with mortgages). Alienation clause (due-on-sale clause) – lender must be paid in full if property sold. Release clause – frees property from blanket mortgage claim as paid. Prepayment penalty clause – found in real estate contract. Package loan – includes personal property (e.g., appliances). Usury – lending money at unreasonably high interest rate. Predatory lending practices – fee packing, equity stripping, balloon payment abuses. Appraisal & Valuation: Market data approach (sales comparison approach) – compares to recently sold similar properties – used for vacant lot. Cost approach – used for special purpose properties (schools, churches, post offices). Income approach formula: Net operating income / Capitalization rate = Market value. Contribution principle – used for feasibility study (e.g., adding swimming pool to apartments). Economic life – length of time property can be profitably utilized (shorter than physical life). Depreciation – loss in value (economic obsolescence, functional obsolescence, physical deterioration). Economic obsolescence – flight patterns above house. Functional obsolescence – outdated plumbing. Appreciation – increase in value over time. Reconciliation – final step where appraiser weighs each approach. Fair Housing & Discrimination: Fair Housing Act – prohibits discrimination based on race, religion, color, sex, disability, children, nationality. Civil Rights Act of 1866 – prohibits discrimination based on race only. Blockbusting – alerting neighborhood that is changing to encourage selling. Discriminatory advertising – "Catholics preferred" violates federal fair housing law. Senior housing – may refuse to rent to families if all units occupied by persons over 62. HUD definition of family – includes single parent with foster child (age 11) and son (age 18). Environmental & Disclosure: Lead-based paint pamphlet – required for dwellings built before 1978 (seller's obligation). Radon – second leading cause of lung cancer (after smoking); naturally occurring gas in rocks, soil, water. SDWA (Safe Drinking Water Act) – EPA control over contaminant levels, water testing, notification. Septic tank – buyer not informed has right to rescind contract. Government Powers & Regulations: Police power – zoning (common example). Condemnation – procedure to take privately owned real estate. Escheat – property reverts to government when owner dies with no will and no heirs. Riparian rights – landowners adjoining river/stream have right to reasonable use. Accretion – ownership of land deposited by river running through property. Zoning permits – monitor compliance with zoning ordinances. Conditional use permit or zoning variance – obtain permission to build grocery store in residential zone. License Law & CalBRE: California Real Estate Commissioner – appointed by the Governor. California Consumer Recovery Account – funded by California real estate agents; provides recourse for uncollected judgments against licensees. CalBRE purpose – protect the public interest. License applicant – has one year after passing state exam to apply for license. Trust Accounts & Earnest Money: Earnest money – must be deposited in timely manner according to state laws. Holding earnest money without deposit – legal with written authority. State-specific license law dictates trust accounts and deposit timing. Antitrust & Legal Issues: Sherman Antitrust Act – comparing commission rates with other agents is a violation (price fixing). Antitrust violations include price fixing (competing brokers cannot agree on commission rates). Probate & Death: Probate court – handles transfer of assets of deceased person without a will. Miscellaneous Key Terms: Mechanics lien – filed by unpaid construction company. Constructive eviction – making premises uninhabitable to remove tenant. Lease option – tenant has right to buy property within specified period. Blind offer – purchase contract written without seeing property. Time is of the essence clause – relates to performance. Ad valorem – Latin for "according to value" (property taxes). Ginnie Mae – guarantees security of loans. Novation – substituting Paul for Philip on lawn service contract. Why This Guide is Different: 150 Real Questions – exactly what you will see on the California exam. Verified Answers (ANS....) – all correct and graded A+. Exam-Ready – covers DRE/CalBRE content outline. Quick Reference – perfect for last-minute review before test day.