CALIFORNIA REAL ESTATE EXAM PRACTICE
CONCEPTS 2026
◉ condition subsequent. Answer: A stipulation in a contract or
transfer of property that already has taken effect that will extinguish
the contract or defeat the property transfer
◉ Condominium. Answer: A subdivision providing an exclusive
ownership (fee) interest in the airspace of a particular portion of
real property, as well as an interest in common in a portion of that
property
◉ Confidentiality. Answer: Obligation to safeguard the principal's
confidence and secrets (any information that might weaken the
principal's bargaining position if it were revealed).
◉ Conflict of Interest. Answer: Anything that benefits an agent's self-
interest or that of someone related to the agent, which would
interfere with the objective fulfillment of an agent's obligations to a
principal.
◉ Conforming Loan. Answer: A loan that meets the requirements
established for purchase by Fannie Mae
,◉ Conformity, Principle of. Answer: Holds that property values are
maximized when buildings are similar in design, construction, and
age, particularly in residential neighborhoods
◉ Consideration. Answer: Anything of value given or promised by a
party to induce another to enter into a contract; may be a benefit
conferred on one party or a detriment suffered by the other.
◉ Constructive Eviction. Answer: Interference by the landlord in a
tenant's legitimate use of leased property, such as by making
unwarranted alterations to the property
◉ Constructive Fraud. Answer: Any representation made without a
deliberate intent to deceive.
◉ Consumer Financial Protection Bureau (CFPB). Answer: A federal
agency created by the Dodd-Frank Act in 2010 to oversee consumer
protection via financial regulations within seven federal agencies.
◉ Contract. Answer: A written or oral agreement to do or not to do
certain things. There may be an express agreement of the parties or
a contract may be implied by their conduct. A unilateral contract
imposes an obligation on only one of the parties, whereas both
parties to a bilateral contract have an obligation to perform. A
contract is executory when a contract obligation is to be performed
in the future, and executed when all obligations have been
,performed and the contract transaction has been completed. A real
estate contract must be signed writing made by competent parties,
for valuable consideration, with an offer by one party that is
accepted by the other.
◉ Valid Listing Four Components. Answer: Competent Parties,
Lawful Object, Mutual Content, Consideration
◉ Contractor's State License Board. Answer: State agency that
licenses and regulates building contractors
◉ Contract Rent. Answer: The rent agreed to by lessor and lessee
◉ Contractual Obligation. Answer: The agreed-on performance by
one of the parties to a contract
◉ Contribution, Principle of. Answer: A component part of a
property is valued in proportion to its contribution to the value of
the entire property, regardless of its separate actual cost.
◉ Conventional Loan. Answer: A loan secured by a mortgage or trust
deed that is made without governmental underwriting (FHA-insured
or VA-guaranteed)
, ◉ Cooperating Broker. Answer: The broker who finds a buyer for a
property listed for sale by another broker
◉ Cooperating Split. Answer: Sharing of the compensation (usually,
a commission) received by the listing broker with the broker who
brings the buyer to the transaction
◉ Corporation. Answer: A legal entity that acts through its board of
directors and officers, generally without liability on the part of the
person or persons owning it. A domestic corporation is one
chartered in California- any other corporation is a foreign
corporation in California
◉ Correction Lines. Answer: Guide meridians running every 24
miles east and west of a meridian, and standard parallels running
every 24 miles north and south of a base line, used to correct
inaccuracies in the rectangular survey system of land description
caused by the earth's curvature
◉ Correlative Use. Answer: Doctrine that states that property
owners may use a reasonable amount of water from an underground
source, but not to the detriment of adjoining property owners
◉ Costa-Hawkins Rental Housing Act. Answer: California law and
preempts rent control for new construction, single-family
CONCEPTS 2026
◉ condition subsequent. Answer: A stipulation in a contract or
transfer of property that already has taken effect that will extinguish
the contract or defeat the property transfer
◉ Condominium. Answer: A subdivision providing an exclusive
ownership (fee) interest in the airspace of a particular portion of
real property, as well as an interest in common in a portion of that
property
◉ Confidentiality. Answer: Obligation to safeguard the principal's
confidence and secrets (any information that might weaken the
principal's bargaining position if it were revealed).
◉ Conflict of Interest. Answer: Anything that benefits an agent's self-
interest or that of someone related to the agent, which would
interfere with the objective fulfillment of an agent's obligations to a
principal.
◉ Conforming Loan. Answer: A loan that meets the requirements
established for purchase by Fannie Mae
,◉ Conformity, Principle of. Answer: Holds that property values are
maximized when buildings are similar in design, construction, and
age, particularly in residential neighborhoods
◉ Consideration. Answer: Anything of value given or promised by a
party to induce another to enter into a contract; may be a benefit
conferred on one party or a detriment suffered by the other.
◉ Constructive Eviction. Answer: Interference by the landlord in a
tenant's legitimate use of leased property, such as by making
unwarranted alterations to the property
◉ Constructive Fraud. Answer: Any representation made without a
deliberate intent to deceive.
◉ Consumer Financial Protection Bureau (CFPB). Answer: A federal
agency created by the Dodd-Frank Act in 2010 to oversee consumer
protection via financial regulations within seven federal agencies.
◉ Contract. Answer: A written or oral agreement to do or not to do
certain things. There may be an express agreement of the parties or
a contract may be implied by their conduct. A unilateral contract
imposes an obligation on only one of the parties, whereas both
parties to a bilateral contract have an obligation to perform. A
contract is executory when a contract obligation is to be performed
in the future, and executed when all obligations have been
,performed and the contract transaction has been completed. A real
estate contract must be signed writing made by competent parties,
for valuable consideration, with an offer by one party that is
accepted by the other.
◉ Valid Listing Four Components. Answer: Competent Parties,
Lawful Object, Mutual Content, Consideration
◉ Contractor's State License Board. Answer: State agency that
licenses and regulates building contractors
◉ Contract Rent. Answer: The rent agreed to by lessor and lessee
◉ Contractual Obligation. Answer: The agreed-on performance by
one of the parties to a contract
◉ Contribution, Principle of. Answer: A component part of a
property is valued in proportion to its contribution to the value of
the entire property, regardless of its separate actual cost.
◉ Conventional Loan. Answer: A loan secured by a mortgage or trust
deed that is made without governmental underwriting (FHA-insured
or VA-guaranteed)
, ◉ Cooperating Broker. Answer: The broker who finds a buyer for a
property listed for sale by another broker
◉ Cooperating Split. Answer: Sharing of the compensation (usually,
a commission) received by the listing broker with the broker who
brings the buyer to the transaction
◉ Corporation. Answer: A legal entity that acts through its board of
directors and officers, generally without liability on the part of the
person or persons owning it. A domestic corporation is one
chartered in California- any other corporation is a foreign
corporation in California
◉ Correction Lines. Answer: Guide meridians running every 24
miles east and west of a meridian, and standard parallels running
every 24 miles north and south of a base line, used to correct
inaccuracies in the rectangular survey system of land description
caused by the earth's curvature
◉ Correlative Use. Answer: Doctrine that states that property
owners may use a reasonable amount of water from an underground
source, but not to the detriment of adjoining property owners
◉ Costa-Hawkins Rental Housing Act. Answer: California law and
preempts rent control for new construction, single-family
