CALIFORNIA REAL ESTATE EXAM
(MULTIPLE CHOICE EXAM | NEWEST
ACTUAL EXAM COMPREHENSIVE
QUESTIONS AND VERIFIED ANSWERS
GRADED A+ | 100% PASS | 2025 UPDATE!
Sally, a licensee, has been asked to be the sales agent for a company
selling new mobile homes. Can she sell these new mobile homes? If
not, what sort of mobile homes can she sell? - ✔✔✔ Correct
Answer
> Sally may not sell new mobile homes, but she may sell used mobile
homes, if they have been registered with the State of California and are
on a lot. She would have to become licensed by the California
Department of Housing and Community Development to sell new
mobile homes.
Who is the largest private mortgage insurer? - ✔✔✔ Correct Answer
> Mortgage Guarantee Insurance Corporation
What are the steps set forth for a real property securities dealer?
Which Article do the regulations fall under? - ✔✔✔ Correct Answer
> Obtaining a Commissioner's Permit; an RPSD endorsement on a
broker license; and proof of a $10,000 surety bond. The regulations fall
under Article 6.
,What category of borrowers sees Syndicate Equity Financing as a good
opportunity? - ✔✔✔ Correct Answer > Small investors. Syndicate
Equity Financing offers small investors the opportunities to invest in
high-yield real estate.
A small group of investors are in the initial stages of putting together a
real estate investment trust (REIT). Which of the following are
qualifications? - ✔✔✔ Correct Answer > A REIT must be beneficially
owned by at least 100 investors.
Each share of certificate of interest must carry with it an equivalent
vote.
No five, or fewer, persons may hold more than 50% of the beneficial
interests.
Why would a Contract for Deed (Installment Sale Contract) be
attractive to certain buyers? - ✔✔✔ Correct Answer > Buyers who
can only make a small down payment with monthly installments.
Usually they must meet certain conditions, and the Contract for Deed
does not require conveyance (transfer) within the same year.
Gordon makes a trip to his financial institution one morning. He has
conducted all of his banking transactions at the institution for more
than twenty years. Today he walks out with a loan on his new home
and one for a new boat. What method of financing has Gordon
secured? - ✔✔✔ Correct Answer > Commercial Loan: A straight
bank loan (aka term loan, in which only interest is paid during the term
of the loan with the entire principal amount due with the final interest
,payment) that the borrower obtains based either on good credit or
some NON-real property collateral.
Who benefits from a long-term lease? - ✔✔✔ Correct Answer > The
tenant - 100% of rent is deductible as an expense.
The tenant - The total debt load of the tenant remains the same.
Why are sales contracts no longer a popular financing instrument in
California? - ✔✔✔ Correct Answer > It is very difficult for the seller
to remove a buyer that is in default.
The buyer is at risk because he holds no immediate title to the
property.
Court battles involving both the seller and buyer could be lengthy and
costly.
Jim and Kim have been working with a mortgage broker to assist them
in finding the best loan. They complete the application, are approved
for a loan, and are now obligated to complete the loan. A week before
they are due to close, they receive the Mortgage Disclosure Statement,
outlining all the costs and terms associated with the loan. The costs and
terms are not what they had previously understood. Are they stuck
with this loan? - ✔✔✔ Correct Answer > No. The Mortgage
Disclosure Statement should have been presented to them within three
days of the broker's receipt of their written loan application, or before
the couple were obligated to take the loan.
, Jacinda makes collections on real estate loans. Last year, she made
approximately 20 collections and collected $38,000. Must Jacinda be
licensed? - ✔✔✔ Correct Answer > Yes, if a collector makes more
than ten annual collections, or collects more than $40,000, he/she must
be licensed as a california real estate broker.
Deanna is thinking of taking the step from renter to homeowner. She
has a very stable position as a surgical nurse and excellent credit. She
doesn't, however, have a large sum of cash handy for the down
payment. She notices advertising for new condos where "no down
payment is required." Should she look for any other information in the
ad? - ✔✔✔ Correct Answer > Yes, she should make sure the amount
or percentage of down payment is there; terms of repayment; annual
percentage rate and if an increase is possible; total finance charge; and
total number of payments and due dates.
What is included in the APR? - ✔✔✔ Correct Answer > The total
finance charge to the total amount to be financed. you vs them
Sam is selling one of his rental homes. His advertisements read: "For
Sale By Owner - Owner Will Finance - No Down Payment!" What are the
criteria for being considered a creditor under Truth in Lending? - ✔✔✔
Correct Answer > A lender must lend funds 25 times a year and/or
must lend the funds for at least five housing loans annually.
Lily, a licensee, has been referring her first-time homebuyers to an
insurance company for all their insurance needs. The insurance
(MULTIPLE CHOICE EXAM | NEWEST
ACTUAL EXAM COMPREHENSIVE
QUESTIONS AND VERIFIED ANSWERS
GRADED A+ | 100% PASS | 2025 UPDATE!
Sally, a licensee, has been asked to be the sales agent for a company
selling new mobile homes. Can she sell these new mobile homes? If
not, what sort of mobile homes can she sell? - ✔✔✔ Correct
Answer
> Sally may not sell new mobile homes, but she may sell used mobile
homes, if they have been registered with the State of California and are
on a lot. She would have to become licensed by the California
Department of Housing and Community Development to sell new
mobile homes.
Who is the largest private mortgage insurer? - ✔✔✔ Correct Answer
> Mortgage Guarantee Insurance Corporation
What are the steps set forth for a real property securities dealer?
Which Article do the regulations fall under? - ✔✔✔ Correct Answer
> Obtaining a Commissioner's Permit; an RPSD endorsement on a
broker license; and proof of a $10,000 surety bond. The regulations fall
under Article 6.
,What category of borrowers sees Syndicate Equity Financing as a good
opportunity? - ✔✔✔ Correct Answer > Small investors. Syndicate
Equity Financing offers small investors the opportunities to invest in
high-yield real estate.
A small group of investors are in the initial stages of putting together a
real estate investment trust (REIT). Which of the following are
qualifications? - ✔✔✔ Correct Answer > A REIT must be beneficially
owned by at least 100 investors.
Each share of certificate of interest must carry with it an equivalent
vote.
No five, or fewer, persons may hold more than 50% of the beneficial
interests.
Why would a Contract for Deed (Installment Sale Contract) be
attractive to certain buyers? - ✔✔✔ Correct Answer > Buyers who
can only make a small down payment with monthly installments.
Usually they must meet certain conditions, and the Contract for Deed
does not require conveyance (transfer) within the same year.
Gordon makes a trip to his financial institution one morning. He has
conducted all of his banking transactions at the institution for more
than twenty years. Today he walks out with a loan on his new home
and one for a new boat. What method of financing has Gordon
secured? - ✔✔✔ Correct Answer > Commercial Loan: A straight
bank loan (aka term loan, in which only interest is paid during the term
of the loan with the entire principal amount due with the final interest
,payment) that the borrower obtains based either on good credit or
some NON-real property collateral.
Who benefits from a long-term lease? - ✔✔✔ Correct Answer > The
tenant - 100% of rent is deductible as an expense.
The tenant - The total debt load of the tenant remains the same.
Why are sales contracts no longer a popular financing instrument in
California? - ✔✔✔ Correct Answer > It is very difficult for the seller
to remove a buyer that is in default.
The buyer is at risk because he holds no immediate title to the
property.
Court battles involving both the seller and buyer could be lengthy and
costly.
Jim and Kim have been working with a mortgage broker to assist them
in finding the best loan. They complete the application, are approved
for a loan, and are now obligated to complete the loan. A week before
they are due to close, they receive the Mortgage Disclosure Statement,
outlining all the costs and terms associated with the loan. The costs and
terms are not what they had previously understood. Are they stuck
with this loan? - ✔✔✔ Correct Answer > No. The Mortgage
Disclosure Statement should have been presented to them within three
days of the broker's receipt of their written loan application, or before
the couple were obligated to take the loan.
, Jacinda makes collections on real estate loans. Last year, she made
approximately 20 collections and collected $38,000. Must Jacinda be
licensed? - ✔✔✔ Correct Answer > Yes, if a collector makes more
than ten annual collections, or collects more than $40,000, he/she must
be licensed as a california real estate broker.
Deanna is thinking of taking the step from renter to homeowner. She
has a very stable position as a surgical nurse and excellent credit. She
doesn't, however, have a large sum of cash handy for the down
payment. She notices advertising for new condos where "no down
payment is required." Should she look for any other information in the
ad? - ✔✔✔ Correct Answer > Yes, she should make sure the amount
or percentage of down payment is there; terms of repayment; annual
percentage rate and if an increase is possible; total finance charge; and
total number of payments and due dates.
What is included in the APR? - ✔✔✔ Correct Answer > The total
finance charge to the total amount to be financed. you vs them
Sam is selling one of his rental homes. His advertisements read: "For
Sale By Owner - Owner Will Finance - No Down Payment!" What are the
criteria for being considered a creditor under Truth in Lending? - ✔✔✔
Correct Answer > A lender must lend funds 25 times a year and/or
must lend the funds for at least five housing loans annually.
Lily, a licensee, has been referring her first-time homebuyers to an
insurance company for all their insurance needs. The insurance
