Common Questions on the California
Real estate exam (2025) Questions and
Answers
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.
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 1
, 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
Joe is a listing agent, cannot legally answer a sellers question about the buyers race, due to the: -
ANSWER✔✔-rumford act
The title to real estate passes when a valid deed is: - ANSWER✔✔-delivered and accepted
mechanics liens are based on - ANSWER✔✔-California Civil Code
An impound or reserve account MOST benefits whom? - ANSWER✔✔-lender
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 2
Real estate exam (2025) Questions and
Answers
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.
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 1
, 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
Joe is a listing agent, cannot legally answer a sellers question about the buyers race, due to the: -
ANSWER✔✔-rumford act
The title to real estate passes when a valid deed is: - ANSWER✔✔-delivered and accepted
mechanics liens are based on - ANSWER✔✔-California Civil Code
An impound or reserve account MOST benefits whom? - ANSWER✔✔-lender
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 2
