COMBINED QUESTIONS - CA REAL ESTATE EXAM 2025/2026 UPDATED QUESTIONS AND 100% CORRECT ANSWERS|GUARANTEED A+

EXAM 2025/2026 UPDATED QUESTIONS AND
100% CORRECT ANSWERS|GUARANTEED


Which of the following is the best example of investment leverage?
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a. Buying multiple properties at once
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b. Buying properties on a systematic basis
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c. Financing most of an investment and putting very little cash in
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d. Paying all cash for an investment to avoid interest payments -
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B ANSWER c. Financing most of an investment and putting very little cash in
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An investor is analyzing a three-
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unit property by looking at its ability to produce future income. Which of the following would
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most likely be used to determine this value?
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B a. Effective gross income
B B B




B b. Gross income multiplier
B B B




B c. Gross rent multiplier
B B B




B d. Potential gross income - ANSWER
B B B B B c. Gross rent multiplier
B B B




Charlie, who owns and leases out a commercial building, pays taxes, maintenance, and insura
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nce on the building. What type of lease agreement does Charlie have with his tenants?
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B a. GrossB




B b. Net B




B c. Percentage
B




B d. Triple net - ANSWER
B B B B c. Percentage
B




Which of the following duties is part of the licensee's role in a residential lease transaction for
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a tenant client?
B B




1
Wicky

,B a. Collect the tenant's first month's rent and security deposit and present it to the owner after
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B the lease agreement has been signed.
B B B B B




b. Determine what clauses should be included in the lease agreement and the monthly lease
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amount.



B c. Market the property that is being leased.
B B B B B B B




d. Represent the client's interest in all negotiations and transactions regarding the property le
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ase. - B



ANSWER
B d. Represent the client's interest in all negotiations and transactions regardin
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g the property lease.
B B B




Your buyer client, Percy, needs to obtain financing to buy his dream house. What's his first ste
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p?

B a. Complete a loan application.
B B B B




B b. Obtain a pre-qualification letter.
B B B B




B c. Sign a purchase agreement.
B B B B




B d. Write an offer. - ANSWER
B B B B B b. Obtain a pre-qualification letter.
B B B B




Blane owns a barbershop. He polls his customers and learns that they tend to come from less t
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han a mile away. That's probably because Blane's store is in this type of location.
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B a. Factory outlet mall
B B B




B b. Neighborhood center
B B




B c. Regional shopping center
B B B




B d. Strip mall - ANSWER
B B B B d. Strip mall
B B




Sarah is a property manager who needs to determine the amount of coverage for property ins
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urance for her owner/client. If she uses the cost to purchase the property today as the basis, s
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he would be using the __________method.
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B a. Blanket coverage
B B




2
Wicky

,B b. Cash value
B B




B c. Depreciation
B




B d. Replacement cost - ANSWER
B B B B d. Replacement cost
B B




When a deed of trust is used as a security instrument, who holds the deed and the note?
B B B B B B B B B B B B B B B B B




B a. The lender holds the deed and the note
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B b. The lender holds the deed, and the trustee holds the note.
B B B B B B B B B B B




B c. The trustee holds the deed, and the lender holds the note.
B B B B B B B B B B B




B d. The trustee holds the mortgage and the note. -
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B ANSWER c. The trustee holds the deed, and the lender holds the note.
B B B B B B B B B B B




SARA is an amendment to which environmental act?
B B B B B B B




B a. CERCLA
B




B b. Clean Air Act
B B B




B c. Clean Water Act
B B B




B d. Environmental Responsibility Act - ANSWER
B B B B B a. CERCLA
B




Mick focuses on originating mortgage loans at a company that has in-
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house loan processors and underwriters. The options he offers consumers are limited to the p
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roducts his company offers. What's Mick's position?
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B a. Mortgage banker
B B




B b. Mortgage broker
B B




B c. Mortgage servicer
B B




B d. Real estate investor - ANSWER
B B B B B a. Mortgage banker
B B




Who is responsible for obtaining evidence of title and title insurance?
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B a. The buyer
B B




B b. The lender
B B




B c. The seller
B B




3
Wicky

, B d. Title insurance representative - ANSWER
B B B B B a. The buyer
B B




Tom, the seller, is financing his buyer Jerry's mortgage. Jerry will give this mortgage to Tom, wh
B B B B B B B B B B B B B B B B



ich will go toward the purchase price. Jerry will use this mortgage for his down payment. What
B B B B B B B B B B B B B B B B



Bkind of mortgage is this?
B B B B




B a. Package mortgage
B B




B b. Purchase money mortgage
B B B




B c. Reverse mortgage
B B




B d. Wrap-around mortgage - ANSWER
B B B B b. Purchase money mortgage
B B B




The smallest property on the block is also priced lower than any others, but the higher-
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priced properties that surround it help to drive the property's market value up. What economi
B B B B B B B B B B B B B B



c principle is at work here?
B B B B B




B a. Anticipation
B




B b. Contribution
B




B c. Progression
B




B d. Regression - ANSWER
B B B c. Progression
B




Danette hasn't paid the first quarter water bill on her property that was due on April 1. She's cl
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osing with her buyer, Jason, on April 1. What type of expense is this and how will it appear on t
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he settlement statement?
B B




B a. This is an accrued expense and will appear as a buyer debit and a seller credit.
B B B B B B B B B B B B B B B B




B b. This is an accrued expense and will appear as a seller debit and a buyer credit.
B B B B B B B B B B B B B B B B




B c. This is a prepaid expense and will appear as a buyer debit and a seller credit.
B B B B B B B B B B B B B B B B




4
Wicky