California Real Estate Exam Common
Questions with Complete Solutions
who is responsible for disclosing a Mello-roos tax to the buyer? - Answer-Seller
Whenever there is a real estate sales transaction, it must be reported to the Internal
Revenue Service by the: - Answer-Escrow
which of the following would create a dual agency situation: - Answer-two agents
working under a broker representing the buyer and seller in the same transaction
under California law, the real estate commissioner has authority to do which of the
following: - Answer-impose fines, revokes licenses and promulgate rules and
regulations
In assessing the profitability of a real estate office, the broker must consider "desk cost."
Which answer best describes how to calculate "desk cost:" - Answer-divide the total
operating expenses of the office, including salaries, rent, insurance etc, by the number
of salespersons
A subordination clause in a trust deed: - Answer-gives priority to a more recent lien
recorded against a property.
the prospective purchaser may withdraw the offer at any time before the sellers
acceptance of an offer: - Answer-for any reason
When a real estate agent acts exclusively as a buyer's agent, he can: - Answer-present
offer to the seller or the a sellers agent
which of the following "runs with the lan"? - Answer-all the other options are correct;
what are the right of a borrower who falls two months in making his or her trust deep
payments? - Answer-he or she has the right of reinstatement
When a title company issues a California standard policy of title insurance, the
policyholder is insured against loss which occurs because of: - Answer-forgery in the
chain of recorded title
which of the following is NOT required for a contract to be legally binding? - Answer-
proper writing
A title company could make make a title search by searching the records of the: -
Answer-county recorders federal land and county clerks office
Questions with Complete Solutions
who is responsible for disclosing a Mello-roos tax to the buyer? - Answer-Seller
Whenever there is a real estate sales transaction, it must be reported to the Internal
Revenue Service by the: - Answer-Escrow
which of the following would create a dual agency situation: - Answer-two agents
working under a broker representing the buyer and seller in the same transaction
under California law, the real estate commissioner has authority to do which of the
following: - Answer-impose fines, revokes licenses and promulgate rules and
regulations
In assessing the profitability of a real estate office, the broker must consider "desk cost."
Which answer best describes how to calculate "desk cost:" - Answer-divide the total
operating expenses of the office, including salaries, rent, insurance etc, by the number
of salespersons
A subordination clause in a trust deed: - Answer-gives priority to a more recent lien
recorded against a property.
the prospective purchaser may withdraw the offer at any time before the sellers
acceptance of an offer: - Answer-for any reason
When a real estate agent acts exclusively as a buyer's agent, he can: - Answer-present
offer to the seller or the a sellers agent
which of the following "runs with the lan"? - Answer-all the other options are correct;
what are the right of a borrower who falls two months in making his or her trust deep
payments? - Answer-he or she has the right of reinstatement
When a title company issues a California standard policy of title insurance, the
policyholder is insured against loss which occurs because of: - Answer-forgery in the
chain of recorded title
which of the following is NOT required for a contract to be legally binding? - Answer-
proper writing
A title company could make make a title search by searching the records of the: -
Answer-county recorders federal land and county clerks office
