CALIFORNIA REAL ESTATE EXAM 2025/2026
MULTIPLE CHOICE EXAM 500+ QUESTIONS
AND CORRECT DETAILED ANSWERS WITH
RATIONALES|GRADED A+
The judge has just issued a decision for ethical violations of a real estate salesperson. What is t
B B B B B B B B B B B B B B B B B
he role of the California Real Estate Commissioner in the proceeding? -
B B B B B B B B B B B
BANSWER Dismiss the findings if the charges are not sustained at the hearing, as well as B B B B B B B B B B B B B B B
to reduce the proposed penalty and make an official decision.
B B B B B B B B B
Bill the broker received a very high offer on a piece of property from a buyer. Bill makes a low o
B B B B B B B B B B B B B B B B B B B B
ffer through a dummy purchase, or an accomplice who is not a buyer at all. Bill sells the proper
B B B B B B B B B B B B B B B B B B
ty for the higher price. What's the violation? - ANSWER
B B B B B B B B B Secret Profit B
Katrina had her license suspended for making false promises to clients. She could never follow
B B B B B B B B B B B B B B
through with her statements and several complaints were filed. Which guidelines constitute
B B B B B B B B B B B B B
most suspensions? - B B
B ANSWER Sections 10176 and 10177 of Business and Professions Code
B B B B B B B B
California licensing laws define which of the following: -
B B B B B B B B
B ANSWER Real Estate Brokerage, Handling Trust Funds, Managing Escrow Account
B B B B B B B B
Which portion of the California Business and Professions Code consists of the subdivided land
B B B B B B B B B B B B B
s law? - ANSWER
B B B Part 2, Sections 11000 to 11200 of the Business and Professions Code
B B B B B B B B B B B
A Nevada real estate licensee has been advertising his services online to California citizens. Is t
B B B B B B B B B B B B B B B
his permissible? -
B B
BANSWER It is not permissible to solicit California residents if you don't have a California
B B B B B B B B B B B B B B
real estate license. B B
1
Wicky
,A California licensee has been advertising on the Internet. She has been violating the Business
B B B B B B B B B B B B B B B
and Professions Code, Sections 10235.5 and 10140.6. What has she done? -
B B B B B B B B B B B
B ANSWER She failed to indicate her license status in the ad.
B B B B B B B B B
Upon completion of this course, you should understand: -
B B B B B B B B
BANSWER The facts regarding disclosure of commissions earned to all parties in a transa
B B B B B B B B B B B B
ction, real estate taxes and special assessments, encumbrances (a claim against a property by
B B B B B B B B B B B B B B
another party. Encumbrance usually impacts the transferability of the property and can restric
B B B B B B B B B B B B
t its free use until the encumberance is removed), liens, easements (non-
B B B B B B B B B B B
possessory right to use and/or enter onto the real property of another without possessing it),
B B B B B B B B B B B B B B B
and encroachments (property owner violates the property rights of his neighbor by building s
B B B B B B B B B B B B B
omething on the neighbor's land) B B B B
Which regulation apply to the use of the internet for advertising in California? -
B B B B B B B B B B B B B
B ANSWER Commission's Regulation 2770 B B
Where can Mike find the exam's purpose and requirements? -
B B B B B B B B B
B ANSWER California Business and Professions Code Section 10153
B B B B B B
John is trying to learn about "Professional Code". What sources have input on this topic? -
B B B B B B B B B B B B B B B
BANSWER General and state legislation, industry self- B B B B B
regulation through trade associations and institutes, state real estate licensing regulation
B B B B B B B B B B
Where does a person go with a complaint regarding discrimination? -
B B B B B B B B B B
B ANSWER The Office of Fair Housing and Equal Opportunity (OFHEO)
B B B B B B B B
A couple with excellent credit and good careers are denied a loan. What's the violation? -
B B B B B B B B B B B B B B B
ANSWER
B The couple has been denied the full protection of the Equal Credit Opportunit
B B B B B B B B B B B B
y Act (ECOA). The ECOA is a part of the Fair Financing Laws.
B B B B B B B B B B B B
Jane has filed her complaint of discrimination. She also wants to seek punitive damages. What
B B B B B B B B B B B B B B
Bare her options? -
B B B
2
Wicky
,ANSWER
B Jane may file suit within two years of the violation. She may seek a restraining B B B B B B B B B B B B B B B
order, actual damages, and punitive damages of up to $1,000.
B B B B B B B B B
What is the largest area of Standards and Practices? - ANSWER
B B B B B B B B B B Article 16 - B B
Ethics and Agency Relationships
B B B B
There are shutters installed throughout the home, and the owner wants to take them with hi
B B B B B B B B B B B B B B B
m to his new home. Which of the five tests for real and personal property applies? -
B B B B B B B B B B B B B B B B
BANSWER Method of attachment, adaptability (built- B B B B
in vs. not), and intent (agents should write into the offer items that may lead to misunderstand
B B B B B B B B B B B B B B B B
ings, such as a ceiling fan).
B B B B B
A family is clearing many trees to build a guest house. They plan on selling the wood to the nei
B B B B B B B B B B B B B B B B B B B
ghbors. What process applies? - ANSWER B B B B B Severance-
Changes real property to personal property.
B B B B B B
Jonathan decides to sell his home and transfer all of his property ownership rights to the new
B B B B B B B B B B B B B B B B B
buyer. This bundling and selling of rights is known as: - ANSWER
B B B B B B B B B B B Livery of Seisin- B B
when you sell the entire bundle of rights.
B B B B B B B B
Which are water rights? - B B B B
BANSWER Littoral Right (beaches), Doctrine of Prior Appropriation (irrigation), and Ripar B B B B B B B B B
ian Right (River).
B B
The beach has disappeared from John's property after a violent storm. Which term describes t
B B B B B B B B B B B B B B
he damage? - ANSWER
B B B Avulsion- The sudden loss of land by an act of nature.
B B B B B B B B B B
John pays rent for his apartment and is also considered a stockholder in his building and owns
B B B B B B B B B B B B B B B B B
property. In what type of apartment does John live? - ANSWER
B B B B B B B B B B Cooperative-
Bthe cooperative owns property and owns stock. They have long-
B B B B B B B B B
term leases (proprietary leases)
B B B
3
Wicky
, Melinda's mother recently passed away. She is thinking of selling her belongings in an estate s
B B B B B B B B B B B B B B B
ale. What are the legal differences between real and personal property? -
B B B B B B B B B B B
BANSWER An agreement for a sale of real property must be in writing and signed by buy B B B B B B B B B B B B B B B
er. If the amount or value is $500 or more in the sale of personal property, it must be in writing
B B B B B B B B B B B B B B B B B B B B
.
A couple are in the process of refinancing their townhouse, and find they have a lien on their h
B B B B B B B B B B B B B B B B B B
ome for non- B B
payment of the previous year's property taxes. What type of lien is on their property, and wha
B B B B B B B B B B B B B B B B
t do they need to do? -
B B B B B B
ANSWER
B The couple have an involuntary lien placed on their home for delinquent prop B B B B B B B B B B B B
erty taxes. The couple needs to pay the taxes, any interest and/or late fees, and have the lien r
B B B B B B B B B B B B B B B B B B
emoved.
What terms can be used to describe the owner and the renter? -
B B B B B B B B B B B B
B ANSWER The owners own the condo in freehold (means "I own the property") and rent B B B B B B B B B B B B B
B it to the renter in leasehold (means "I rent the property").
B B B B B B B B B B
The owners own all rights to the property and the property is always inherited by the oldest ch
B B B B B B B B B B B B B B B B B
ild. Which type of estate is the family vineyard? -
B B B B B B B B B
ANSWER
B Fee Simple Absolute (Owns the bundle of rights). Highest degree of ownershi B B B B B B B B B B B
p, has unlimited duration, is inheritable, and is subject to only the government powers.
B B B B B B B B B B B B B
If a person purchases a historical home, it must be on the condition the original architectural f
B B B B B B B B B B B B B B B B
eatures are never removed. If she sells the home, the same condition must be in the sales cont
B B B B B B B B B B B B B B B B B
ract. What type of freehold estate is this historic home? -
B B B B B B B B B B
ANSWER
B Fee Simple Defeasible (based on occurrence or a non- B B B B B B B B
occurance of something). An estate that dictates,"on the condition that...".
B B B B B B B B B
Which of the following is considered the six distinct forms of ownership in California? -
B B B B B B B B B B B B B B
ANSWER
B Severalty (sole ownership). Tenancy in Common and Joint Tenancy (both conc B B B B B B B B B B
urrent ownership) B
4
Wicky
MULTIPLE CHOICE EXAM 500+ QUESTIONS
AND CORRECT DETAILED ANSWERS WITH
RATIONALES|GRADED A+
The judge has just issued a decision for ethical violations of a real estate salesperson. What is t
B B B B B B B B B B B B B B B B B
he role of the California Real Estate Commissioner in the proceeding? -
B B B B B B B B B B B
BANSWER Dismiss the findings if the charges are not sustained at the hearing, as well as B B B B B B B B B B B B B B B
to reduce the proposed penalty and make an official decision.
B B B B B B B B B
Bill the broker received a very high offer on a piece of property from a buyer. Bill makes a low o
B B B B B B B B B B B B B B B B B B B B
ffer through a dummy purchase, or an accomplice who is not a buyer at all. Bill sells the proper
B B B B B B B B B B B B B B B B B B
ty for the higher price. What's the violation? - ANSWER
B B B B B B B B B Secret Profit B
Katrina had her license suspended for making false promises to clients. She could never follow
B B B B B B B B B B B B B B
through with her statements and several complaints were filed. Which guidelines constitute
B B B B B B B B B B B B B
most suspensions? - B B
B ANSWER Sections 10176 and 10177 of Business and Professions Code
B B B B B B B B
California licensing laws define which of the following: -
B B B B B B B B
B ANSWER Real Estate Brokerage, Handling Trust Funds, Managing Escrow Account
B B B B B B B B
Which portion of the California Business and Professions Code consists of the subdivided land
B B B B B B B B B B B B B
s law? - ANSWER
B B B Part 2, Sections 11000 to 11200 of the Business and Professions Code
B B B B B B B B B B B
A Nevada real estate licensee has been advertising his services online to California citizens. Is t
B B B B B B B B B B B B B B B
his permissible? -
B B
BANSWER It is not permissible to solicit California residents if you don't have a California
B B B B B B B B B B B B B B
real estate license. B B
1
Wicky
,A California licensee has been advertising on the Internet. She has been violating the Business
B B B B B B B B B B B B B B B
and Professions Code, Sections 10235.5 and 10140.6. What has she done? -
B B B B B B B B B B B
B ANSWER She failed to indicate her license status in the ad.
B B B B B B B B B
Upon completion of this course, you should understand: -
B B B B B B B B
BANSWER The facts regarding disclosure of commissions earned to all parties in a transa
B B B B B B B B B B B B
ction, real estate taxes and special assessments, encumbrances (a claim against a property by
B B B B B B B B B B B B B B
another party. Encumbrance usually impacts the transferability of the property and can restric
B B B B B B B B B B B B
t its free use until the encumberance is removed), liens, easements (non-
B B B B B B B B B B B
possessory right to use and/or enter onto the real property of another without possessing it),
B B B B B B B B B B B B B B B
and encroachments (property owner violates the property rights of his neighbor by building s
B B B B B B B B B B B B B
omething on the neighbor's land) B B B B
Which regulation apply to the use of the internet for advertising in California? -
B B B B B B B B B B B B B
B ANSWER Commission's Regulation 2770 B B
Where can Mike find the exam's purpose and requirements? -
B B B B B B B B B
B ANSWER California Business and Professions Code Section 10153
B B B B B B
John is trying to learn about "Professional Code". What sources have input on this topic? -
B B B B B B B B B B B B B B B
BANSWER General and state legislation, industry self- B B B B B
regulation through trade associations and institutes, state real estate licensing regulation
B B B B B B B B B B
Where does a person go with a complaint regarding discrimination? -
B B B B B B B B B B
B ANSWER The Office of Fair Housing and Equal Opportunity (OFHEO)
B B B B B B B B
A couple with excellent credit and good careers are denied a loan. What's the violation? -
B B B B B B B B B B B B B B B
ANSWER
B The couple has been denied the full protection of the Equal Credit Opportunit
B B B B B B B B B B B B
y Act (ECOA). The ECOA is a part of the Fair Financing Laws.
B B B B B B B B B B B B
Jane has filed her complaint of discrimination. She also wants to seek punitive damages. What
B B B B B B B B B B B B B B
Bare her options? -
B B B
2
Wicky
,ANSWER
B Jane may file suit within two years of the violation. She may seek a restraining B B B B B B B B B B B B B B B
order, actual damages, and punitive damages of up to $1,000.
B B B B B B B B B
What is the largest area of Standards and Practices? - ANSWER
B B B B B B B B B B Article 16 - B B
Ethics and Agency Relationships
B B B B
There are shutters installed throughout the home, and the owner wants to take them with hi
B B B B B B B B B B B B B B B
m to his new home. Which of the five tests for real and personal property applies? -
B B B B B B B B B B B B B B B B
BANSWER Method of attachment, adaptability (built- B B B B
in vs. not), and intent (agents should write into the offer items that may lead to misunderstand
B B B B B B B B B B B B B B B B
ings, such as a ceiling fan).
B B B B B
A family is clearing many trees to build a guest house. They plan on selling the wood to the nei
B B B B B B B B B B B B B B B B B B B
ghbors. What process applies? - ANSWER B B B B B Severance-
Changes real property to personal property.
B B B B B B
Jonathan decides to sell his home and transfer all of his property ownership rights to the new
B B B B B B B B B B B B B B B B B
buyer. This bundling and selling of rights is known as: - ANSWER
B B B B B B B B B B B Livery of Seisin- B B
when you sell the entire bundle of rights.
B B B B B B B B
Which are water rights? - B B B B
BANSWER Littoral Right (beaches), Doctrine of Prior Appropriation (irrigation), and Ripar B B B B B B B B B
ian Right (River).
B B
The beach has disappeared from John's property after a violent storm. Which term describes t
B B B B B B B B B B B B B B
he damage? - ANSWER
B B B Avulsion- The sudden loss of land by an act of nature.
B B B B B B B B B B
John pays rent for his apartment and is also considered a stockholder in his building and owns
B B B B B B B B B B B B B B B B B
property. In what type of apartment does John live? - ANSWER
B B B B B B B B B B Cooperative-
Bthe cooperative owns property and owns stock. They have long-
B B B B B B B B B
term leases (proprietary leases)
B B B
3
Wicky
, Melinda's mother recently passed away. She is thinking of selling her belongings in an estate s
B B B B B B B B B B B B B B B
ale. What are the legal differences between real and personal property? -
B B B B B B B B B B B
BANSWER An agreement for a sale of real property must be in writing and signed by buy B B B B B B B B B B B B B B B
er. If the amount or value is $500 or more in the sale of personal property, it must be in writing
B B B B B B B B B B B B B B B B B B B B
.
A couple are in the process of refinancing their townhouse, and find they have a lien on their h
B B B B B B B B B B B B B B B B B B
ome for non- B B
payment of the previous year's property taxes. What type of lien is on their property, and wha
B B B B B B B B B B B B B B B B
t do they need to do? -
B B B B B B
ANSWER
B The couple have an involuntary lien placed on their home for delinquent prop B B B B B B B B B B B B
erty taxes. The couple needs to pay the taxes, any interest and/or late fees, and have the lien r
B B B B B B B B B B B B B B B B B B
emoved.
What terms can be used to describe the owner and the renter? -
B B B B B B B B B B B B
B ANSWER The owners own the condo in freehold (means "I own the property") and rent B B B B B B B B B B B B B
B it to the renter in leasehold (means "I rent the property").
B B B B B B B B B B
The owners own all rights to the property and the property is always inherited by the oldest ch
B B B B B B B B B B B B B B B B B
ild. Which type of estate is the family vineyard? -
B B B B B B B B B
ANSWER
B Fee Simple Absolute (Owns the bundle of rights). Highest degree of ownershi B B B B B B B B B B B
p, has unlimited duration, is inheritable, and is subject to only the government powers.
B B B B B B B B B B B B B
If a person purchases a historical home, it must be on the condition the original architectural f
B B B B B B B B B B B B B B B B
eatures are never removed. If she sells the home, the same condition must be in the sales cont
B B B B B B B B B B B B B B B B B
ract. What type of freehold estate is this historic home? -
B B B B B B B B B B
ANSWER
B Fee Simple Defeasible (based on occurrence or a non- B B B B B B B B
occurance of something). An estate that dictates,"on the condition that...".
B B B B B B B B B
Which of the following is considered the six distinct forms of ownership in California? -
B B B B B B B B B B B B B B
ANSWER
B Severalty (sole ownership). Tenancy in Common and Joint Tenancy (both conc B B B B B B B B B B
urrent ownership) B
4
Wicky
