1
PRINCIPLES OF REAL ESTATE 2 FINAL EXAM PREP
2025/2026 ACCURATE QUESTIONS WITH CORRECT
DETAILED ANSWERS || 100% GUARANTEED PASS
<RECENT VERSION>
1. One of the elements of a valid contract is mutual consent—an offer and an
acceptance. A contract becomes binding between the seller and the buyer when
the:
a. buyer signs the counteroffer.
b. broker is notified of the seller's acceptance.
c. offer is accepted by the broker.
d. buyer is notified of the seller's acceptance. - (answers)a. buyer signs the
counteroffer.
2. What type of development combines the individual ownership of private
dwellings with the shared ownership of common facilities of the entire project?
a. Common interest development
b. Standard subdivision
c. In-zoning subdivision
d. Shared development - (answers)a. Common interest development
3. Which of the following causes real estate prices to increase?
, 2
a. Demand is not an issue
b. Demand is greater than supply
c. Supply and demand are the same
d. Supply is greater than demand - (answers)b. Demand is greater than supply
4. A(n) _____ may be unilaterally terminated by a lessor or lessee.
a. tenancy at sufferance
b. tenancy for years
c. tenancy at will
d. estate of periodic tenancy - (answers)c. tenancy at will
5. A listing agreement allows a broker to:
a. be an independent contractor.
b. complete a specific task.
c. complete general tasks.
d. transfer title. - (answers)c. complete general tasks.
6. The development of vacant parcels in existing urban and suburban areas is
known as:
, 3
a. brownfields.
b. urban sprawl.
c. mansionization.
d. infill development. - (answers)d. infill development.
7. Under which government financing program are approved applicants required
to apply for life insurance—not mortgage insurance?
a. F.H.A.
b. CalVet
c. Fannie Mae
d. V.A. - (answers)b. CalVet
8. Which document is used by a seller to describe the condition of his property to
the buyer?
a. Uniform Settlement Statement
b. Loan Broker Disclosure Statement
c. Transfer Disclosure Statement
d. Alquist-Priolo Disclosure Statement - (answers)c. Transfer Disclosure Statement
9. The escrow holder is the:
, 4
a. real estate salesperson.
b. buyer.
c. escrow officer.
d. seller. - (answers)c. escrow officer.
10. Documentary transfer tax is usually based on _____ per $1,000 of the
purchase price.
a. $1.55
b. $1.65
c. $0.55
d. $1.10 - (answers)d. $1.10
11. The Commissioner can issue citations and fines to both licensees and
unlicensed persons for minor violations of the Real Estate Law. A citation:
a. enumerates the laws violated and states the amount of the administrative fine.
b. describes the basis of the complaint and contains an order to correct the
violation and a reasonable time period in which to correct it.
c. orders the violator to appear in court.
PRINCIPLES OF REAL ESTATE 2 FINAL EXAM PREP
2025/2026 ACCURATE QUESTIONS WITH CORRECT
DETAILED ANSWERS || 100% GUARANTEED PASS
<RECENT VERSION>
1. One of the elements of a valid contract is mutual consent—an offer and an
acceptance. A contract becomes binding between the seller and the buyer when
the:
a. buyer signs the counteroffer.
b. broker is notified of the seller's acceptance.
c. offer is accepted by the broker.
d. buyer is notified of the seller's acceptance. - (answers)a. buyer signs the
counteroffer.
2. What type of development combines the individual ownership of private
dwellings with the shared ownership of common facilities of the entire project?
a. Common interest development
b. Standard subdivision
c. In-zoning subdivision
d. Shared development - (answers)a. Common interest development
3. Which of the following causes real estate prices to increase?
, 2
a. Demand is not an issue
b. Demand is greater than supply
c. Supply and demand are the same
d. Supply is greater than demand - (answers)b. Demand is greater than supply
4. A(n) _____ may be unilaterally terminated by a lessor or lessee.
a. tenancy at sufferance
b. tenancy for years
c. tenancy at will
d. estate of periodic tenancy - (answers)c. tenancy at will
5. A listing agreement allows a broker to:
a. be an independent contractor.
b. complete a specific task.
c. complete general tasks.
d. transfer title. - (answers)c. complete general tasks.
6. The development of vacant parcels in existing urban and suburban areas is
known as:
, 3
a. brownfields.
b. urban sprawl.
c. mansionization.
d. infill development. - (answers)d. infill development.
7. Under which government financing program are approved applicants required
to apply for life insurance—not mortgage insurance?
a. F.H.A.
b. CalVet
c. Fannie Mae
d. V.A. - (answers)b. CalVet
8. Which document is used by a seller to describe the condition of his property to
the buyer?
a. Uniform Settlement Statement
b. Loan Broker Disclosure Statement
c. Transfer Disclosure Statement
d. Alquist-Priolo Disclosure Statement - (answers)c. Transfer Disclosure Statement
9. The escrow holder is the:
, 4
a. real estate salesperson.
b. buyer.
c. escrow officer.
d. seller. - (answers)c. escrow officer.
10. Documentary transfer tax is usually based on _____ per $1,000 of the
purchase price.
a. $1.55
b. $1.65
c. $0.55
d. $1.10 - (answers)d. $1.10
11. The Commissioner can issue citations and fines to both licensees and
unlicensed persons for minor violations of the Real Estate Law. A citation:
a. enumerates the laws violated and states the amount of the administrative fine.
b. describes the basis of the complaint and contains an order to correct the
violation and a reasonable time period in which to correct it.
c. orders the violator to appear in court.
