CA REAL ESTATE PRACTICE EXAM 1
MIDTERM 1 2026 QUESTIONS AND
CORRECT ANSWERS WITH DETAILED
EXPLANATIONS CALIFORNIA REAL
ESTATE STUDY GUIDE
43 of 50 - Missy, a licensee, desperately wants to be appointed the next
California Real Estate Commissioner. For the three years she has held her
California real estate license, she has been ranked in the top five in new
home sales in her office. Missy has never had her license suspended or
revoked, and prides herself on being ethical in every transaction and
interaction. Does Missy have a chance? - CORRECT ANSWER-No, not at
this point in her career. In order to be appointed to the post by the
governor, she must have a minimum of five years' experience as a real
estate broker.
44 of 50 - Drew is leasing his apartment from Reggie. The lease is for one
year and they have agreed on all areas of the contract. The lease is in
written form, and Reggie is the only party that has signed. Without Drew's
signature, is the lease now invalid? - CORRECT ANSWER-No, the lessee is
not required to sign, only the lessor. The lessee's occupation of the property
is proof the lease agreement was accepted.
45 of 50 - Which of the following is exempt from the Natural Hazards
Disclosure? - CORRECT ANSWER-A geological hazard
, 46 of 50 - Marcus wants to have the deed to his new home recorded to
protect his ownership rights. In order to record the deed, it must be
notarized. Marcus must go before a notary public and verify the signing of
the deed. The notary then signs the deed. The verification of Marcus'
signature in the signing of the deed is known as: - CORRECT ANSWER-
Attestation
47 of 50 - Chip is a veteran who fought in Desert Storm. He has just retired
from the military. He has been told he qualifies for a property tax
exemption based on his military service during wartime. Which exemption
applies to Chip? - CORRECT ANSWER-Section 205
48 of 50 - Brian and Leslie have made an offer on Rudy and Judith's home.
The first offer was rejected by the sellers. Brian and Leslie made another
offer; Rudy and Judith rejected that offer. Never quitters, Brian and Leslie
decided to try one last time and present their last and best offer. Rudy and
Judith decide the prospective buyers are close, and make a counteroffer.
What's the situation after a counteroffer is made by the sellers? -
CORRECT ANSWER-Once the counteroffer is made by the seller, the
buyer's original offer becomes invalid. If the buyers accepts the offer the
seller has made, the same process takes place as with a regular offer.
49 of 50 - Jack is leasing a home from Justin for a year. He has decided to
lease until he gets a good feel for the area and knows where he wants to
buy. In this relationship, who has the reversionary right and who has the
possessory right ? - CORRECT ANSWER-Jack has t Lillian is buying
Julia's home in Malibu. Julia, after selling her home to Lillian, is buying
Anne Marie's condo in San Francisco. In these transactions, who is the
grantor and who is the grantee? - CORRECT ANSWER-Lillian is the
MIDTERM 1 2026 QUESTIONS AND
CORRECT ANSWERS WITH DETAILED
EXPLANATIONS CALIFORNIA REAL
ESTATE STUDY GUIDE
43 of 50 - Missy, a licensee, desperately wants to be appointed the next
California Real Estate Commissioner. For the three years she has held her
California real estate license, she has been ranked in the top five in new
home sales in her office. Missy has never had her license suspended or
revoked, and prides herself on being ethical in every transaction and
interaction. Does Missy have a chance? - CORRECT ANSWER-No, not at
this point in her career. In order to be appointed to the post by the
governor, she must have a minimum of five years' experience as a real
estate broker.
44 of 50 - Drew is leasing his apartment from Reggie. The lease is for one
year and they have agreed on all areas of the contract. The lease is in
written form, and Reggie is the only party that has signed. Without Drew's
signature, is the lease now invalid? - CORRECT ANSWER-No, the lessee is
not required to sign, only the lessor. The lessee's occupation of the property
is proof the lease agreement was accepted.
45 of 50 - Which of the following is exempt from the Natural Hazards
Disclosure? - CORRECT ANSWER-A geological hazard
, 46 of 50 - Marcus wants to have the deed to his new home recorded to
protect his ownership rights. In order to record the deed, it must be
notarized. Marcus must go before a notary public and verify the signing of
the deed. The notary then signs the deed. The verification of Marcus'
signature in the signing of the deed is known as: - CORRECT ANSWER-
Attestation
47 of 50 - Chip is a veteran who fought in Desert Storm. He has just retired
from the military. He has been told he qualifies for a property tax
exemption based on his military service during wartime. Which exemption
applies to Chip? - CORRECT ANSWER-Section 205
48 of 50 - Brian and Leslie have made an offer on Rudy and Judith's home.
The first offer was rejected by the sellers. Brian and Leslie made another
offer; Rudy and Judith rejected that offer. Never quitters, Brian and Leslie
decided to try one last time and present their last and best offer. Rudy and
Judith decide the prospective buyers are close, and make a counteroffer.
What's the situation after a counteroffer is made by the sellers? -
CORRECT ANSWER-Once the counteroffer is made by the seller, the
buyer's original offer becomes invalid. If the buyers accepts the offer the
seller has made, the same process takes place as with a regular offer.
49 of 50 - Jack is leasing a home from Justin for a year. He has decided to
lease until he gets a good feel for the area and knows where he wants to
buy. In this relationship, who has the reversionary right and who has the
possessory right ? - CORRECT ANSWER-Jack has t Lillian is buying
Julia's home in Malibu. Julia, after selling her home to Lillian, is buying
Anne Marie's condo in San Francisco. In these transactions, who is the
grantor and who is the grantee? - CORRECT ANSWER-Lillian is the
