1
Real Estate Exam Finals: CA
Certification 2025| Real Estate
Principles| Questions and Approved
Marksheet|100%
A seller provides a disclosure form stating no known issues, but the buyer discovers a significant
plumbing defect after closing. Analyze the seller's responsibility and whether legal action is
warranted.
If the seller knew about the defect and concealed it, they could be liable for
misrepresentation. Legal action might be justified if evidence supports this.
A homeowner discovers unpermitted work completed by a previous owner when applying for a
permit. Evaluate how this could impact property value and future transactions.
Unpermitted work can lower property value, complicate financing, or require costly fixes to
meet code, which could deter future buyers.
Explain the rationale behind requiring sellers to disclose natural hazard zones, like flood or fire
zones, to prospective buyers.
These disclosures ensure buyers understand potential risks and insurance needs, reducing
legal disputes over undisclosed dangers.
A condo owner is selling their unit and hasn't disclosed a recent HOA lawsuit. Assess the
consequences of this omission.
, 2
Failure to disclose the lawsuit could lead to legal claims from the buyer for nondisclosure, as
it impacts the property's financial health.
A buyer suspects the seller intentionally omitted details about a roof leak in the disclosure.
Propose steps the buyer could take to address this issue.
The buyer should hire a professional inspector and consult an attorney to determine if the
omission was intentional and seek remedies.
A buyer learns that a property is in a historic district after closing, limiting remodeling plans.
Evaluate how this could have been prevented.
Reviewing property disclosures, zoning laws, and title reports before closing could have
clarified restrictions and avoided surprises.
A seller discloses prior termite damage but doesn’t mention recent repairs. Analyze whether this
meets the disclosure requirements.
Disclosures must include all material facts. Leaving out recent repairs may lead to claims of
incomplete or misleading disclosure.
A property listed as a single-family home turns out to have a rental unit without proper permits.
Assess the buyer's options if this wasn't disclosed.
The buyer could negotiate repairs or compensation, or rescind the sale if they relied on the
misrepresentation when purchasing.
, 3
A title search reveals a lien on the property during escrow. Propose how the buyer and seller
should handle this issue before closing.
The seller should resolve the lien by paying it off or negotiating with the lienholder. The
buyer might delay closing until it's cleared.
A buyer discovers the property lacks legal access after purchasing. Evaluate the implications for
usability and resale.
Lack of access can significantly limit use and resale value. The buyer may need to negotiate
easements or pursue legal action against the seller.
A seller fails to disclose that a neighboring property is undergoing a large construction project.
Explain how this could affect the transaction.
This omission could lead to disputes if the buyer claims the construction impacts property
enjoyment or value. Disclosure is key.
Analyze the factors contributing to the need for disclosing environmental hazards, like asbestos
or lead paint, in older homes.
These hazards pose health risks, and disclosure helps buyers make informed decisions about
safety and renovations.
A seller uses an "as-is" clause in the sale but fails to disclose a major foundation issue. Assess
whether the clause protects the seller from liability.
, 4
"As-is" doesn't shield the seller from liability for intentional nondisclosure of known
material defects like foundation problems.
A buyer discovers that a shared driveway isn't covered by a recorded easement after purchasing.
Propose a strategy to resolve this issue.
Negotiate an easement with the neighbor or consult an attorney to establish access rights
legally.
Evaluate the implications of not disclosing a known mold problem during a property sale.
Nondisclosure could lead to health concerns, lawsuits, and significant costs for remediation
and damages.
A homeowner selling their property fails to mention a death occurred on the premises. Explain
when this must be disclosed in California.
Deaths within three years must be disclosed if the buyer asks. Failure to disclose could result
in legal consequences.
Assess how inaccurate property boundary disclosures could lead to disputes with neighbors after
a sale.
Misrepresented boundaries can result in legal disputes, requiring costly surveys or
negotiations to resolve.
Real Estate Exam Finals: CA
Certification 2025| Real Estate
Principles| Questions and Approved
Marksheet|100%
A seller provides a disclosure form stating no known issues, but the buyer discovers a significant
plumbing defect after closing. Analyze the seller's responsibility and whether legal action is
warranted.
If the seller knew about the defect and concealed it, they could be liable for
misrepresentation. Legal action might be justified if evidence supports this.
A homeowner discovers unpermitted work completed by a previous owner when applying for a
permit. Evaluate how this could impact property value and future transactions.
Unpermitted work can lower property value, complicate financing, or require costly fixes to
meet code, which could deter future buyers.
Explain the rationale behind requiring sellers to disclose natural hazard zones, like flood or fire
zones, to prospective buyers.
These disclosures ensure buyers understand potential risks and insurance needs, reducing
legal disputes over undisclosed dangers.
A condo owner is selling their unit and hasn't disclosed a recent HOA lawsuit. Assess the
consequences of this omission.
, 2
Failure to disclose the lawsuit could lead to legal claims from the buyer for nondisclosure, as
it impacts the property's financial health.
A buyer suspects the seller intentionally omitted details about a roof leak in the disclosure.
Propose steps the buyer could take to address this issue.
The buyer should hire a professional inspector and consult an attorney to determine if the
omission was intentional and seek remedies.
A buyer learns that a property is in a historic district after closing, limiting remodeling plans.
Evaluate how this could have been prevented.
Reviewing property disclosures, zoning laws, and title reports before closing could have
clarified restrictions and avoided surprises.
A seller discloses prior termite damage but doesn’t mention recent repairs. Analyze whether this
meets the disclosure requirements.
Disclosures must include all material facts. Leaving out recent repairs may lead to claims of
incomplete or misleading disclosure.
A property listed as a single-family home turns out to have a rental unit without proper permits.
Assess the buyer's options if this wasn't disclosed.
The buyer could negotiate repairs or compensation, or rescind the sale if they relied on the
misrepresentation when purchasing.
, 3
A title search reveals a lien on the property during escrow. Propose how the buyer and seller
should handle this issue before closing.
The seller should resolve the lien by paying it off or negotiating with the lienholder. The
buyer might delay closing until it's cleared.
A buyer discovers the property lacks legal access after purchasing. Evaluate the implications for
usability and resale.
Lack of access can significantly limit use and resale value. The buyer may need to negotiate
easements or pursue legal action against the seller.
A seller fails to disclose that a neighboring property is undergoing a large construction project.
Explain how this could affect the transaction.
This omission could lead to disputes if the buyer claims the construction impacts property
enjoyment or value. Disclosure is key.
Analyze the factors contributing to the need for disclosing environmental hazards, like asbestos
or lead paint, in older homes.
These hazards pose health risks, and disclosure helps buyers make informed decisions about
safety and renovations.
A seller uses an "as-is" clause in the sale but fails to disclose a major foundation issue. Assess
whether the clause protects the seller from liability.
, 4
"As-is" doesn't shield the seller from liability for intentional nondisclosure of known
material defects like foundation problems.
A buyer discovers that a shared driveway isn't covered by a recorded easement after purchasing.
Propose a strategy to resolve this issue.
Negotiate an easement with the neighbor or consult an attorney to establish access rights
legally.
Evaluate the implications of not disclosing a known mold problem during a property sale.
Nondisclosure could lead to health concerns, lawsuits, and significant costs for remediation
and damages.
A homeowner selling their property fails to mention a death occurred on the premises. Explain
when this must be disclosed in California.
Deaths within three years must be disclosed if the buyer asks. Failure to disclose could result
in legal consequences.
Assess how inaccurate property boundary disclosures could lead to disputes with neighbors after
a sale.
Misrepresented boundaries can result in legal disputes, requiring costly surveys or
negotiations to resolve.
