California Real Estate Principles Practice Exam 1 | 100% Correct Answers | Salesperson License Prep

California Real Estate Principles – Practice Exam 1
Instructions: Answer all questions. Each correct answer = 1 point. Total Score = 100%. Passing score:
70%.

1. In California, who enforces the real estate law?
A. Federal Trade Commission
B. Department of Housing and Urban Development (HUD)
C. Department of Real Estate (DRE)
D. National Association of Realtors
Answer: C

2. Which of the following is considered real property in California?
A. Leasehold estate
B. Crops planted and harvested annually
C. Trade fixtures
D. A single-family home and the land it is built on
Answer: D

3. A real estate broker in California must have at least how many years of experience as a salesperson
before applying for a broker’s license?
A. None
B. 1 year
C. 2 years
D. 5 years
Answer: C

4. Which type of listing is illegal in California?
A. Exclusive agency
B. Exclusive right to sell
C. Net listing
D. Open listing
Answer: C

5. The Real Estate Settlement Procedures Act (RESPA) applies to:
A. Commercial real estate loans
B. Agricultural property loans
C. Federally related residential loans
D. Business opportunity sales
Answer: C

6. The bundle of rights in real estate ownership includes all EXCEPT:
A. Right of possession
B. Right of use
C. Right of exclusion
D. Right of taxation
Answer: D

7. Which lien has the highest priority in California?
A. Judgment lien
B. Property tax lien
C. Deed of trust lien
D. Mechanic’s lien