CALIFORNIA REAL ESTATE EXAM 3 LATEST VERSIONS (VERSION A, B AND C) 2023-2024 ACTUAL EXAM 350
QUESTIONS AND CORRECT DETAILED ANSWERS
Licensee A has out-of-town relatives come to visit and he shows them several listings. He ends up
helping them rent a property with an option to purchase. He should make a disclosure to: - (answer)
The Seller
Which of the following cannot obtain a broker's license? - (answer) Partnership
A person who had leased a property for three years had to move out of state before the lease expired.
In reading the lease, there was no mention of either subleasing or assigning the lease. The lessee: -
(answer) May sublease or assign the lease
Which of the following would not be required payment for the lessee under a net lease: - (answer)
Lease commission
Which of the following phrases in a rental ad would not be illegal? - (answer) "Female roommate"
In the eyes of the Real Estate Commissioner, any individual employed as a salesperson by a licensed real
estate broker is considered to be: - (answer) An employee
A landlord is trying to evict a tenant and serves an eviction notice. Under what circumstances could the
tenant remain in the property: - (answer) The tenant has not had hot water for months; Unlawful entry
by the landlord; The lessor failed to repair a weak staircase
A buyer sings the Offer to Purcahse and the seller accepts the offer. The buyer's agent delivers the
signed acceptance to the buyer along with the Seller's Transfer Disclosure Statement. How long does the
buyer have to rescind the contract? - (answer) 3 days
Richard owned a vacant lot free and clear. He decided to build a home on the lot. On May 1, lumber was
delivered to the lot at a cost of $8,000. On May 2, a first trust deed $150,000 was recorded against the
property to finance the construciton. On September 15, painters started work on the property with their
bill totaling $3,000. The project was completed and Joe did not pay the bills for the lumber and the
painting. Two mechanic's liens were filed for $8,000 and $3,000. The property went into foreclosure and
sold for $150,000. Ignoring the expenses of the sale, approximately how much did the lender on the first
trust deed received as a result of the sale? - (answer) $139,000
,CALIFORNIA REAL ESTATE EXAM 3 LATEST VERSIONS (VERSION A, B AND C) 2023-2024 ACTUAL EXAM 350
QUESTIONS AND CORRECT DETAILED ANSWERS
The year in which brokers became required to disclose asbestos is: - (answer) 1986
In applying the principles of Easton v. Strassburger case, real estate licensees are obligated to give
prospective buyers of certain real estate: - (answer) A list of known defect and those that should be
known
Broker Ortiz takes a buyer Tom out to see several properties. They work together for about 3 weeks. A
couple of weeks later, Broker Davis shows Tom a house which Tom buys. The commission would be paid
to: - (answer) Broker Davis receives the entire commission and could share with Broker Ortiz if he
wishes
A sublease is: - (answer) Less than an assignment
Which of the following is not deducted from gross income to determine annual net income when using
the capitalization approach to appraise an income producing property: - (answer) Cost of capital
Brokers A and B each have an open listing on a property. Broker A shows the property to a buyer and
carries on negotiations, but the buyer decides not to buy. Two weeks later Broker B contacts the same
buyer and arranges a sale of the property. The seller is obligated to pay a commission as follows: -
(answer) Full amount to Broker B only
When a deed contains discriminatory language or clauses: - (answer) The discriminatory words or
clauses are unenforceable
Pest control reports which contain information concerning wood destroying insects are kept on file with:
- (answer) The Structural Pest Control Board
A tenant has a three year lease with the lessor of an apartment building. At the end of year one, the
tenant is transferred to another city. The lease between the lessor and lessee is silent on the tenant's
ability to sublease or assign the lease. In this case: - (answer) The lessee may either assign or sublease
the apartment, without the lessor's permission
, CALIFORNIA REAL ESTATE EXAM 3 LATEST VERSIONS (VERSION A, B AND C) 2023-2024 ACTUAL EXAM 350
QUESTIONS AND CORRECT DETAILED ANSWERS
Taylor was injured while swimming in Smith's new pool. Taylor obtained a $2,500 judgment against
Smith and recorded an abstract of judgment with the county recorder. This created: - (answer) A
general lien
Evans owns a new personal residence. The transportation agency is widening the street in front of his
residence. This will cause Evans to lose 10 feet along the front of his property which border the street.
This is an example of: - (answer) Economic obsolescence
How long does a buyer have to sue the seller of a single family dwelling for something that was not
disclosed, but should have been disclosed, after the buyer moves into the home? - (answer) 2 years
An appraiser using the cost approach to appraise property would be least concerned about the
economy in the are of the subject property when appraising: - (answer) An electronic assembly plant
A general contractor hired a subcontractor to install the hardwood floors in a home under construction.
If the subcontractor had to file a mechanic's lien in order to get paid, the mechanic's lien would date
back to the date: - (answer) Work began on the house
Once an offer has been made and accepted, the buyer would have: - (answer) No title
A buyer walks into a broker's office and asks for information on a property the broker's office has listed.
The agent gives the buyer some information and the buyer asks the agent to mail her more information
to her house. An agency relationship has been created when: - (answer) There is no agency
relationship
An agent often receives confidential information from a principal. The agent has a duty to maintain this
confidentiality. This duty of confidentiality: - (answer) Never terminates
When a tenant holds possession of a landlord's property without a current lease agreement and
without the landlord's approval: - (answer) This would be an estate at sufferance
QUESTIONS AND CORRECT DETAILED ANSWERS
Licensee A has out-of-town relatives come to visit and he shows them several listings. He ends up
helping them rent a property with an option to purchase. He should make a disclosure to: - (answer)
The Seller
Which of the following cannot obtain a broker's license? - (answer) Partnership
A person who had leased a property for three years had to move out of state before the lease expired.
In reading the lease, there was no mention of either subleasing or assigning the lease. The lessee: -
(answer) May sublease or assign the lease
Which of the following would not be required payment for the lessee under a net lease: - (answer)
Lease commission
Which of the following phrases in a rental ad would not be illegal? - (answer) "Female roommate"
In the eyes of the Real Estate Commissioner, any individual employed as a salesperson by a licensed real
estate broker is considered to be: - (answer) An employee
A landlord is trying to evict a tenant and serves an eviction notice. Under what circumstances could the
tenant remain in the property: - (answer) The tenant has not had hot water for months; Unlawful entry
by the landlord; The lessor failed to repair a weak staircase
A buyer sings the Offer to Purcahse and the seller accepts the offer. The buyer's agent delivers the
signed acceptance to the buyer along with the Seller's Transfer Disclosure Statement. How long does the
buyer have to rescind the contract? - (answer) 3 days
Richard owned a vacant lot free and clear. He decided to build a home on the lot. On May 1, lumber was
delivered to the lot at a cost of $8,000. On May 2, a first trust deed $150,000 was recorded against the
property to finance the construciton. On September 15, painters started work on the property with their
bill totaling $3,000. The project was completed and Joe did not pay the bills for the lumber and the
painting. Two mechanic's liens were filed for $8,000 and $3,000. The property went into foreclosure and
sold for $150,000. Ignoring the expenses of the sale, approximately how much did the lender on the first
trust deed received as a result of the sale? - (answer) $139,000
,CALIFORNIA REAL ESTATE EXAM 3 LATEST VERSIONS (VERSION A, B AND C) 2023-2024 ACTUAL EXAM 350
QUESTIONS AND CORRECT DETAILED ANSWERS
The year in which brokers became required to disclose asbestos is: - (answer) 1986
In applying the principles of Easton v. Strassburger case, real estate licensees are obligated to give
prospective buyers of certain real estate: - (answer) A list of known defect and those that should be
known
Broker Ortiz takes a buyer Tom out to see several properties. They work together for about 3 weeks. A
couple of weeks later, Broker Davis shows Tom a house which Tom buys. The commission would be paid
to: - (answer) Broker Davis receives the entire commission and could share with Broker Ortiz if he
wishes
A sublease is: - (answer) Less than an assignment
Which of the following is not deducted from gross income to determine annual net income when using
the capitalization approach to appraise an income producing property: - (answer) Cost of capital
Brokers A and B each have an open listing on a property. Broker A shows the property to a buyer and
carries on negotiations, but the buyer decides not to buy. Two weeks later Broker B contacts the same
buyer and arranges a sale of the property. The seller is obligated to pay a commission as follows: -
(answer) Full amount to Broker B only
When a deed contains discriminatory language or clauses: - (answer) The discriminatory words or
clauses are unenforceable
Pest control reports which contain information concerning wood destroying insects are kept on file with:
- (answer) The Structural Pest Control Board
A tenant has a three year lease with the lessor of an apartment building. At the end of year one, the
tenant is transferred to another city. The lease between the lessor and lessee is silent on the tenant's
ability to sublease or assign the lease. In this case: - (answer) The lessee may either assign or sublease
the apartment, without the lessor's permission
, CALIFORNIA REAL ESTATE EXAM 3 LATEST VERSIONS (VERSION A, B AND C) 2023-2024 ACTUAL EXAM 350
QUESTIONS AND CORRECT DETAILED ANSWERS
Taylor was injured while swimming in Smith's new pool. Taylor obtained a $2,500 judgment against
Smith and recorded an abstract of judgment with the county recorder. This created: - (answer) A
general lien
Evans owns a new personal residence. The transportation agency is widening the street in front of his
residence. This will cause Evans to lose 10 feet along the front of his property which border the street.
This is an example of: - (answer) Economic obsolescence
How long does a buyer have to sue the seller of a single family dwelling for something that was not
disclosed, but should have been disclosed, after the buyer moves into the home? - (answer) 2 years
An appraiser using the cost approach to appraise property would be least concerned about the
economy in the are of the subject property when appraising: - (answer) An electronic assembly plant
A general contractor hired a subcontractor to install the hardwood floors in a home under construction.
If the subcontractor had to file a mechanic's lien in order to get paid, the mechanic's lien would date
back to the date: - (answer) Work began on the house
Once an offer has been made and accepted, the buyer would have: - (answer) No title
A buyer walks into a broker's office and asks for information on a property the broker's office has listed.
The agent gives the buyer some information and the buyer asks the agent to mail her more information
to her house. An agency relationship has been created when: - (answer) There is no agency
relationship
An agent often receives confidential information from a principal. The agent has a duty to maintain this
confidentiality. This duty of confidentiality: - (answer) Never terminates
When a tenant holds possession of a landlord's property without a current lease agreement and
without the landlord's approval: - (answer) This would be an estate at sufferance
