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CALIFORNIA REAL ESTATE EXAM REAL
QUESTIONS AND ANSWERS 2025
In reference to Property Taxes, "basis" or "cost" is - correct
answer- Purchase price of prop plus cost of improvements.
How is a condominium unit owned? - correct answer- Separate
interest
How are common interests in a condo owned? - correct
answer- Equally in undivided interest
Subdivided Land Laws refer to - correct answer- Subdivisions
of 5+ parcels on 160 acres, regulated marketing & financing,
and requires disclosures in public report.
How long is a disclosure in public report for Subdivided Land
Laws good for? - correct answer- 5 Years
When does a tax year run? - correct answer- July 1-June 30
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Legally combining smaller, adjacent parcels of land to form a
larger parcel. - correct answer- Plottage or assemblage
Separating large parcels into smaller lots - correct answer-
Subdividing or separating
Amount or size of land being increased by natural forces such
as deposits by wind or water. - correct answer- Accretion
Gradual uncovering of land previously covered by water such
as when a stream changes course. - correct answer- Reliction
The Statute of Limitations in the state of California allows how
long to take action? - correct answer- 4 years
The process by which the court may seize real or personal
property as security for a satisfaction of monetary judgement. -
correct answer- Attachment
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When is a 20-day preliminary notice of a mechanics lien need
to be issued? - correct answer- 20-days after the claimant
(contractor) has first furnished labor, services, equipment, or
materials.
What is the purpose of issuing a preliminary notice of a
mechanics lien to a claimant? - correct answer- To inform
concerned parties that the property may be subject to liens
arising out of contract.
What is the brokers relationship to the customer? - correct
answer- The broker is the agent to the customer (customer
employs the broker).
What is the agents (salesperson) relationship to the broker? -
correct answer- The salesperson is the agent to the broker (the
broker gives the salesperson authority to act on his/her behalf).
A Home Equity Line of Credit is - correct answer- An Open
Ended Mortgage
An Open Ended Mortgage is - correct answer- A type of note
that permits the borrower to obtain more money at a future date
under the same deed of trust.
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Zoning is an example of - correct answer- Police power
Local jurisdictions have the authority to divide land into districts
and impose land use regulations to promote health, safety, and
welfare of the public--this is known as - correct answer- Zoning
When can restrictions placed on a deed be removed? - correct
answer- Never
What is the only restriction placed on a deed that is considered
illegal? - correct answer- Race restrictions
Is an option contract bilateral or unilateral? - correct answer-
Unilateral
What does an option contract NOT do? - correct answer-
Create a legal interest in a property
CALIFORNIA REAL ESTATE EXAM REAL
QUESTIONS AND ANSWERS 2025
In reference to Property Taxes, "basis" or "cost" is - correct
answer- Purchase price of prop plus cost of improvements.
How is a condominium unit owned? - correct answer- Separate
interest
How are common interests in a condo owned? - correct
answer- Equally in undivided interest
Subdivided Land Laws refer to - correct answer- Subdivisions
of 5+ parcels on 160 acres, regulated marketing & financing,
and requires disclosures in public report.
How long is a disclosure in public report for Subdivided Land
Laws good for? - correct answer- 5 Years
When does a tax year run? - correct answer- July 1-June 30
,2 | Page
Legally combining smaller, adjacent parcels of land to form a
larger parcel. - correct answer- Plottage or assemblage
Separating large parcels into smaller lots - correct answer-
Subdividing or separating
Amount or size of land being increased by natural forces such
as deposits by wind or water. - correct answer- Accretion
Gradual uncovering of land previously covered by water such
as when a stream changes course. - correct answer- Reliction
The Statute of Limitations in the state of California allows how
long to take action? - correct answer- 4 years
The process by which the court may seize real or personal
property as security for a satisfaction of monetary judgement. -
correct answer- Attachment
,3 | Page
When is a 20-day preliminary notice of a mechanics lien need
to be issued? - correct answer- 20-days after the claimant
(contractor) has first furnished labor, services, equipment, or
materials.
What is the purpose of issuing a preliminary notice of a
mechanics lien to a claimant? - correct answer- To inform
concerned parties that the property may be subject to liens
arising out of contract.
What is the brokers relationship to the customer? - correct
answer- The broker is the agent to the customer (customer
employs the broker).
What is the agents (salesperson) relationship to the broker? -
correct answer- The salesperson is the agent to the broker (the
broker gives the salesperson authority to act on his/her behalf).
A Home Equity Line of Credit is - correct answer- An Open
Ended Mortgage
An Open Ended Mortgage is - correct answer- A type of note
that permits the borrower to obtain more money at a future date
under the same deed of trust.
, 4 | Page
Zoning is an example of - correct answer- Police power
Local jurisdictions have the authority to divide land into districts
and impose land use regulations to promote health, safety, and
welfare of the public--this is known as - correct answer- Zoning
When can restrictions placed on a deed be removed? - correct
answer- Never
What is the only restriction placed on a deed that is considered
illegal? - correct answer- Race restrictions
Is an option contract bilateral or unilateral? - correct answer-
Unilateral
What does an option contract NOT do? - correct answer-
Create a legal interest in a property
