Final Exam A California real estate
2025 Questions and Answers
All of the following are ways by which an offer to purchase real estate would be terminate, except -
ANSWER✔✔-Failure to communicate notice of revocation before the other party has
communicated his or her acceptance
When using their closing statement, escrow would debit the seller of income property for which of
the following items - ANSWER✔✔-Prepaid rent
When a Cal-Vet wishes to purchase a home and use his California veteran's benefit he would make
the application to - ANSWER✔✔-Department of Veterans Affairs
Which of the following loans would most likely be made without requiring down payment from the
borrower - ANSWER✔✔-VA Loan
Recorded title to a parcel of property was vested in Mary Wilson a single woman. After her marriage
to John Roberts she executed a deed to the property only in the name of Mary Roberts, a married
woman. The discrepancy in the grantor's name is - ANSWER✔✔-A defect, which may cause a
cloud on the title
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 1
,If a salesperson wishes to advertise his or her services, the advertisement must include -
ANSWER✔✔-The brokers name
Which of the following statements is incorrect with regard to an "in-house" sale - ANSWER✔✔-
The listing broker can be the agent of the buyer only
For income tax purposes, capital expenditures for improvements & alterations are - ANSWER✔✔-
Added to the "cost basis" of the property
The document which transfers title but contains no express or implied warranties is a -
ANSWER✔✔-Quitclaim deed
Land, which is subject to an easement is said to be - ANSWER✔✔-Encumbered
After completion of a new building in which the owner did not record a Notice of Completion, any
unpaid claimant must file a Mechanics's Lien within - ANSWER✔✔-90 days
Mr. Smith employed the XYZ Pool Construction Company to install a swimming pool at his home.
After completion, the contractor filed a lien to obtain payment of the contract price. The
encumbrance created was - ANSWER✔✔-A specific lien
Which of the following has control over the approval of a subdivision under the Subdivision Map
Act? - ANSWER✔✔-Planning Commission
Mutual mortgage insurance on a FHA loan - ANSWER✔✔-Protects the lender against ant
deficiency in the event of default
A Land developer offers a free prize to anyone who replies to his direct mail advertisement & visits
his subdivision site. Prior to awarding the prize, however, the developer requires the party to attend
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 2
, a sales presentation at the site. Then sales presentation requirement was not mentioned anywhere in
the advertisement. This type of promotion is - ANSWER✔✔-Illegal because it did not disclose the
sales representation attendance requirement
Which of the following statements most accurately describes mortgage companies who act as
mortgage loan correspondents. Such companies - ANSWER✔✔-Prefer negotiating loans ,which are
sold on the secondary market
A real estate broker who desires to operate a real estate office that is both competitive & profitable,
is vitally concerned with "Desk Cost'. "Desk Cost" is calculated by dividing the - ANSWER✔✔-
Total cost of rent, utilities, telephone advertising & other operating expense by the number of
salespersons
Which of the following would a tenant in an apartment building & an owner in a condominium
project have in common - ANSWER✔✔-Both have an estate in real property
The principal purpose of the Federal Truth in Lending Act was to - ANSWER✔✔-Require creditors
to disclosed complete credit terms to prospective borrowers
The number of acres in a tract of land that is 1/2 mile square is - ANSWER✔✔-160
Which of the following statements is incorrect with regard to an"in-houses" sale - ANSWER✔✔-
The listing broker can be the agent of the buyer only
A policy of title insurance requires a careful search of the public records. The public records covered
are found at - ANSWER✔✔-County recorder's office, Federal land office records, county clerk's
office
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 3
2025 Questions and Answers
All of the following are ways by which an offer to purchase real estate would be terminate, except -
ANSWER✔✔-Failure to communicate notice of revocation before the other party has
communicated his or her acceptance
When using their closing statement, escrow would debit the seller of income property for which of
the following items - ANSWER✔✔-Prepaid rent
When a Cal-Vet wishes to purchase a home and use his California veteran's benefit he would make
the application to - ANSWER✔✔-Department of Veterans Affairs
Which of the following loans would most likely be made without requiring down payment from the
borrower - ANSWER✔✔-VA Loan
Recorded title to a parcel of property was vested in Mary Wilson a single woman. After her marriage
to John Roberts she executed a deed to the property only in the name of Mary Roberts, a married
woman. The discrepancy in the grantor's name is - ANSWER✔✔-A defect, which may cause a
cloud on the title
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 1
,If a salesperson wishes to advertise his or her services, the advertisement must include -
ANSWER✔✔-The brokers name
Which of the following statements is incorrect with regard to an "in-house" sale - ANSWER✔✔-
The listing broker can be the agent of the buyer only
For income tax purposes, capital expenditures for improvements & alterations are - ANSWER✔✔-
Added to the "cost basis" of the property
The document which transfers title but contains no express or implied warranties is a -
ANSWER✔✔-Quitclaim deed
Land, which is subject to an easement is said to be - ANSWER✔✔-Encumbered
After completion of a new building in which the owner did not record a Notice of Completion, any
unpaid claimant must file a Mechanics's Lien within - ANSWER✔✔-90 days
Mr. Smith employed the XYZ Pool Construction Company to install a swimming pool at his home.
After completion, the contractor filed a lien to obtain payment of the contract price. The
encumbrance created was - ANSWER✔✔-A specific lien
Which of the following has control over the approval of a subdivision under the Subdivision Map
Act? - ANSWER✔✔-Planning Commission
Mutual mortgage insurance on a FHA loan - ANSWER✔✔-Protects the lender against ant
deficiency in the event of default
A Land developer offers a free prize to anyone who replies to his direct mail advertisement & visits
his subdivision site. Prior to awarding the prize, however, the developer requires the party to attend
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 2
, a sales presentation at the site. Then sales presentation requirement was not mentioned anywhere in
the advertisement. This type of promotion is - ANSWER✔✔-Illegal because it did not disclose the
sales representation attendance requirement
Which of the following statements most accurately describes mortgage companies who act as
mortgage loan correspondents. Such companies - ANSWER✔✔-Prefer negotiating loans ,which are
sold on the secondary market
A real estate broker who desires to operate a real estate office that is both competitive & profitable,
is vitally concerned with "Desk Cost'. "Desk Cost" is calculated by dividing the - ANSWER✔✔-
Total cost of rent, utilities, telephone advertising & other operating expense by the number of
salespersons
Which of the following would a tenant in an apartment building & an owner in a condominium
project have in common - ANSWER✔✔-Both have an estate in real property
The principal purpose of the Federal Truth in Lending Act was to - ANSWER✔✔-Require creditors
to disclosed complete credit terms to prospective borrowers
The number of acres in a tract of land that is 1/2 mile square is - ANSWER✔✔-160
Which of the following statements is incorrect with regard to an"in-houses" sale - ANSWER✔✔-
The listing broker can be the agent of the buyer only
A policy of title insurance requires a careful search of the public records. The public records covered
are found at - ANSWER✔✔-County recorder's office, Federal land office records, county clerk's
office
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 3
