CA Real Estate Exam Prep:
Comprehensive Practice Exam 2025
Questions and Answers
Which document is used to give a buyer an overview of the title history and information about what
is or isn't covered in an insurance policy? - Correct Answer✔️✔️-Preliminary report
Buyer Maria and seller Doug are closing on June 1. Maria's mortgage loan is $927.86, and $871.86
will go to interest in the first month. Maria will have to pre-pay interest for June using the 360-day
proration method. If Doug owns the closing day, what Maria's prepaid interest cost be at closing? -
Correct Answer✔️✔️-$842.74
Which of the following is one of the primary reasons that developers like to invest in unimproved
land?
A. It looks good to top investors to have a portfolio of unimproved land.
B. It's easier to build on a blank canvas than it is to retrofit existing infrastructure.
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 1
,C. It's profitable immediately.
D. Structures are already erected on the land, limiting the development that needs to be done. -
Correct Answer✔️✔️-B. It's easier to build on a blank canvas than it is to retrofit existing
infrastructure.
Buyer Peter is eager to make an offer on the two-story home you just showed him, but you're
concerned about the back bedroom, since it looks like a relatively recent addition. When Peter asks
you why it's an issue, how do you respond? - Correct Answer✔️✔️-You recommend that Peter
check on the permits for it, so that he doesn't buy the house and then have to correct or even
remove the addition because it wasn't built to code.
According to national standards for measuring square footage of a dwelling, which space should be
included? - Correct Answer✔️✔️-Attached accessory apartment
Which physical characteristic of land addresses the concept that land isn't interchangeable, and one
piece of land isn't exactly like another? - Correct Answer✔️✔️-Uniqueness
What's the definition of a qualified mortgage? - Correct Answer✔️✔️-One that meets stringent
CFPB guidelines
Jim would like to sell his own home. What is the minimum real estate license he must possess? -
Correct Answer✔️✔️-None
Jason, your client, is developing a subdivision of 140 houses. He may place deed restrictions on as
many as ______ properties. - Correct Answer✔️✔️-140 (100%)
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 2
,How old must an individual be to qualify for a real estate broker license in California? - Correct
Answer✔️✔️-18
The ______ was enacted in 2010 to create stricter regulation of the financial services industry to
reduce costs for consumers from (for instance), undisclosed kickbacks. - Correct Answer✔️✔️-
Dodd-Frank Wall Street Reform and Consumer Protection Act
In which type of common interest subdivision are the owner's shareholders in a corporation that
owns the property? - Correct Answer✔️✔️-Stock cooperative project
Which option describes a real property tax lien? - Correct Answer✔️✔️-Specific and involuntary
Mark is offering to purchase Sarah's house. They agree, and open an escrow account together. Mark
and Sarah would be considered what to the escrow? - Correct Answer✔️✔️-Principals
Lawrence is a buyer closing on a home purchase for which he's obtaining financing. He receives a
Loan Estimate from his lender. What's one purpose of this document? - Correct Answer✔️✔️-To
provide the estimated closing costs for Lawrence's loan
Non-lawful possession after the expiration of a lease is called ______. - Correct Answer✔️✔️-
Estate at sufferance
What is it called when property is taken by the state after the owner dies without heirs? - Correct
Answer✔️✔️-Escheat
To develop a marketing plan for the property owner, the property manager should ______. -
Correct Answer✔️✔️-Compare the competition to the rates, condition, amenities, and location of
the owner's property
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 3
, Lot and Block Realty received a cease-and-desist order from the FTC due to misleading ads the firm
was running. When does the order become effective? - Correct Answer✔️✔️-Immediately upon
issuance
Borrowers who fall into the ______ category may be faced with paying interest 1% to 5% over the
current market rate. - Correct Answer✔️✔️-Subprime
Reggie has thoroughly reviewed the sales contract with his clients, the Arnolds, and has confirmed
that they understand all of the terms and provisions. What should Reggie do next? - Correct
Answer✔️✔️-Recommend that the Arnolds review the sales contract with an attorney before
signing it.
What's the name of the clause in a promissory note where this language appears: "If the Note
Holder has not received the full amount of any monthly payment by the end of ______ calendar
days after the date it is due, I will pay a late charge to the Note Holder"? - Correct Answer✔️✔️-
Late charge provision
Which type of antitrust violation occurs when the providing of one service is made dependent on
the customer or client obtaining another recommended service? - Correct Answer✔️✔️-Tie-in
arrangement
Kenny is updating a bathroom. Under what circumstances is a contractor's license required? -
Correct Answer✔️✔️-If he is preparing his house to sell
When working with a developer who's purchasing undeveloped land for a new subdivision, ABC
Realty stipulates in the contract that in order to purchase the undeveloped land, the developer must
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 4
Comprehensive Practice Exam 2025
Questions and Answers
Which document is used to give a buyer an overview of the title history and information about what
is or isn't covered in an insurance policy? - Correct Answer✔️✔️-Preliminary report
Buyer Maria and seller Doug are closing on June 1. Maria's mortgage loan is $927.86, and $871.86
will go to interest in the first month. Maria will have to pre-pay interest for June using the 360-day
proration method. If Doug owns the closing day, what Maria's prepaid interest cost be at closing? -
Correct Answer✔️✔️-$842.74
Which of the following is one of the primary reasons that developers like to invest in unimproved
land?
A. It looks good to top investors to have a portfolio of unimproved land.
B. It's easier to build on a blank canvas than it is to retrofit existing infrastructure.
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 1
,C. It's profitable immediately.
D. Structures are already erected on the land, limiting the development that needs to be done. -
Correct Answer✔️✔️-B. It's easier to build on a blank canvas than it is to retrofit existing
infrastructure.
Buyer Peter is eager to make an offer on the two-story home you just showed him, but you're
concerned about the back bedroom, since it looks like a relatively recent addition. When Peter asks
you why it's an issue, how do you respond? - Correct Answer✔️✔️-You recommend that Peter
check on the permits for it, so that he doesn't buy the house and then have to correct or even
remove the addition because it wasn't built to code.
According to national standards for measuring square footage of a dwelling, which space should be
included? - Correct Answer✔️✔️-Attached accessory apartment
Which physical characteristic of land addresses the concept that land isn't interchangeable, and one
piece of land isn't exactly like another? - Correct Answer✔️✔️-Uniqueness
What's the definition of a qualified mortgage? - Correct Answer✔️✔️-One that meets stringent
CFPB guidelines
Jim would like to sell his own home. What is the minimum real estate license he must possess? -
Correct Answer✔️✔️-None
Jason, your client, is developing a subdivision of 140 houses. He may place deed restrictions on as
many as ______ properties. - Correct Answer✔️✔️-140 (100%)
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 2
,How old must an individual be to qualify for a real estate broker license in California? - Correct
Answer✔️✔️-18
The ______ was enacted in 2010 to create stricter regulation of the financial services industry to
reduce costs for consumers from (for instance), undisclosed kickbacks. - Correct Answer✔️✔️-
Dodd-Frank Wall Street Reform and Consumer Protection Act
In which type of common interest subdivision are the owner's shareholders in a corporation that
owns the property? - Correct Answer✔️✔️-Stock cooperative project
Which option describes a real property tax lien? - Correct Answer✔️✔️-Specific and involuntary
Mark is offering to purchase Sarah's house. They agree, and open an escrow account together. Mark
and Sarah would be considered what to the escrow? - Correct Answer✔️✔️-Principals
Lawrence is a buyer closing on a home purchase for which he's obtaining financing. He receives a
Loan Estimate from his lender. What's one purpose of this document? - Correct Answer✔️✔️-To
provide the estimated closing costs for Lawrence's loan
Non-lawful possession after the expiration of a lease is called ______. - Correct Answer✔️✔️-
Estate at sufferance
What is it called when property is taken by the state after the owner dies without heirs? - Correct
Answer✔️✔️-Escheat
To develop a marketing plan for the property owner, the property manager should ______. -
Correct Answer✔️✔️-Compare the competition to the rates, condition, amenities, and location of
the owner's property
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 3
, Lot and Block Realty received a cease-and-desist order from the FTC due to misleading ads the firm
was running. When does the order become effective? - Correct Answer✔️✔️-Immediately upon
issuance
Borrowers who fall into the ______ category may be faced with paying interest 1% to 5% over the
current market rate. - Correct Answer✔️✔️-Subprime
Reggie has thoroughly reviewed the sales contract with his clients, the Arnolds, and has confirmed
that they understand all of the terms and provisions. What should Reggie do next? - Correct
Answer✔️✔️-Recommend that the Arnolds review the sales contract with an attorney before
signing it.
What's the name of the clause in a promissory note where this language appears: "If the Note
Holder has not received the full amount of any monthly payment by the end of ______ calendar
days after the date it is due, I will pay a late charge to the Note Holder"? - Correct Answer✔️✔️-
Late charge provision
Which type of antitrust violation occurs when the providing of one service is made dependent on
the customer or client obtaining another recommended service? - Correct Answer✔️✔️-Tie-in
arrangement
Kenny is updating a bathroom. Under what circumstances is a contractor's license required? -
Correct Answer✔️✔️-If he is preparing his house to sell
When working with a developer who's purchasing undeveloped land for a new subdivision, ABC
Realty stipulates in the contract that in order to purchase the undeveloped land, the developer must
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 4
