CALIFORNIA REAL ESTATE LICENSE EXAM | QUESTIONS
AND ANSWERS | VERIFIED ANSWERS PLUS RATIONALES |
EXAM ALREADY GRADED A+ | LATEST EXAM
1. Which California agency regulates real estate licensing?
A. Department of Consumer Affairs
B. California Department of Real Estate
C. Bureau of Real Estate Appraisers
D. Department of Housing and Urban Development
Answer: B. The California Department of Real Estate (DRE) regulates licensing, education, and
enforcement for real estate professionals in California.
2. To qualify for a California real estate salesperson license, an applicant must be at least:
A. 16 years old
B. 18 years old
C. 21 years old
D. 25 years old
Answer: B. Applicants must be at least 18 years old to apply for a salesperson license.
3. How many college-level course units are required for a California salesperson license?
A. 3 courses
B. 2 courses
C. 5 courses
D. 8 courses
Answer: A. Three courses (Real Estate Principles, Real Estate Practice, and one elective) are
required.
4. A real estate broker can be described as:
A. An unlicensed assistant
B. A person licensed to represent buyers only
C. A person licensed to operate independently and employ salespersons
D. A property manager only
Answer: C. Brokers may operate independently and supervise licensed salespersons.
5. A listing agreement that allows multiple brokers to sell the property and only pays the
broker who produces the buyer is:
A. Exclusive right-to-sell
B. Exclusive agency
,C. Open listing
D. Net listing
Answer: C. An open listing allows multiple brokers; only the procuring broker earns the
commission.
6. The maximum term of a listing agreement in California is:
A. 6 months
B. 1 year
C. 2 years
D. No statutory maximum
Answer: D. California law does not set a specific maximum term, but agreements must have a
definite expiration date.
7. Commingling refers to:
A. Mixing personal funds with trust funds
B. Sharing commissions
C. Dual agency
D. Escrow fraud
Answer: A. Commingling is the illegal mixing of a broker’s personal funds with client trust
funds.
8. The statute requiring certain disclosures about property condition in residential
transactions is:
A. Truth in Lending Act
B. Civil Code 1102
C. Sherman Antitrust Act
D. RESPA
Answer: B. California Civil Code 1102 requires a Transfer Disclosure Statement (TDS).
9. A broker acting for both buyer and seller in the same transaction is practicing:
A. Subagency
B. Dual agency
C. Fiduciary breach
D. Commingling
Answer: B. Dual agency occurs when the broker represents both parties with informed consent.
10. Earnest money is:
A. A broker’s commission
B. A refundable security deposit
C. Consideration showing buyer’s good faith
D. An escrow fee
,Answer: C. Earnest money demonstrates the buyer’s serious intent to purchase.
11. Which type of deed provides the greatest protection to the grantee?
A. Quitclaim deed
B. Grant deed
C. Warranty deed
D. Trustee’s deed
Answer: C. A warranty deed provides the most comprehensive guarantees of title.
12. A fee simple estate is:
A. The highest form of ownership
B. A leasehold estate
C. A life estate
D. A future interest
Answer: A. Fee simple is the most complete ownership interest recognized by law.
13. A lien that results from a court judgment is:
A. Voluntary lien
B. Mechanic’s lien
C. Judgment lien
D. Tax lien
Answer: C. A judgment lien arises from a court decision against a debtor.
14. Real property includes:
A. Furniture
B. Fixtures
C. Personal vehicles
D. Stocks
Answer: B. Fixtures are attached to the land and are considered real property.
15. The doctrine of emblements refers to:
A. Water rights
B. Crop rights of tenants
C. Mineral rights
D. Air rights
Answer: B. Emblements allow tenants to harvest crops planted before lease termination.
16. A tenancy in common is characterized by:
A. Right of survivorship
B. Equal ownership required
, C. Separate transferable interests
D. Married couples only
Answer: C. Each tenant owns a separate interest that can be transferred independently.
17. Community property in California generally applies to:
A. Business partnerships
B. Property acquired during marriage
C. Property inherited before marriage
D. Joint tenancy only
Answer: B. Community property includes assets acquired during marriage (with some
exceptions).
18. An encumbrance is:
A. Ownership interest
B. Physical improvement
C. Claim or liability on property
D. Survey error
Answer: C. An encumbrance is a claim, lien, or restriction affecting title.
19. The federal law prohibiting discrimination in housing is:
A. Fair Housing Act
B. Civil Rights Act of 1866 only
C. ADA
D. Sherman Act
Answer: A. The Fair Housing Act prohibits discrimination based on protected classes.
20. Redlining refers to:
A. Legal zoning
B. Refusal to lend in certain neighborhoods
C. Environmental hazard marking
D. Title insurance exclusion
Answer: B. Redlining is the illegal practice of denying loans in specific areas.
21. A broker must deposit trust funds into a trust account within:
A. 24 hours
B. 3 business days
C. 5 business days
D. 7 calendar days
Answer: B. Trust funds must be deposited within three business days of receipt.
AND ANSWERS | VERIFIED ANSWERS PLUS RATIONALES |
EXAM ALREADY GRADED A+ | LATEST EXAM
1. Which California agency regulates real estate licensing?
A. Department of Consumer Affairs
B. California Department of Real Estate
C. Bureau of Real Estate Appraisers
D. Department of Housing and Urban Development
Answer: B. The California Department of Real Estate (DRE) regulates licensing, education, and
enforcement for real estate professionals in California.
2. To qualify for a California real estate salesperson license, an applicant must be at least:
A. 16 years old
B. 18 years old
C. 21 years old
D. 25 years old
Answer: B. Applicants must be at least 18 years old to apply for a salesperson license.
3. How many college-level course units are required for a California salesperson license?
A. 3 courses
B. 2 courses
C. 5 courses
D. 8 courses
Answer: A. Three courses (Real Estate Principles, Real Estate Practice, and one elective) are
required.
4. A real estate broker can be described as:
A. An unlicensed assistant
B. A person licensed to represent buyers only
C. A person licensed to operate independently and employ salespersons
D. A property manager only
Answer: C. Brokers may operate independently and supervise licensed salespersons.
5. A listing agreement that allows multiple brokers to sell the property and only pays the
broker who produces the buyer is:
A. Exclusive right-to-sell
B. Exclusive agency
,C. Open listing
D. Net listing
Answer: C. An open listing allows multiple brokers; only the procuring broker earns the
commission.
6. The maximum term of a listing agreement in California is:
A. 6 months
B. 1 year
C. 2 years
D. No statutory maximum
Answer: D. California law does not set a specific maximum term, but agreements must have a
definite expiration date.
7. Commingling refers to:
A. Mixing personal funds with trust funds
B. Sharing commissions
C. Dual agency
D. Escrow fraud
Answer: A. Commingling is the illegal mixing of a broker’s personal funds with client trust
funds.
8. The statute requiring certain disclosures about property condition in residential
transactions is:
A. Truth in Lending Act
B. Civil Code 1102
C. Sherman Antitrust Act
D. RESPA
Answer: B. California Civil Code 1102 requires a Transfer Disclosure Statement (TDS).
9. A broker acting for both buyer and seller in the same transaction is practicing:
A. Subagency
B. Dual agency
C. Fiduciary breach
D. Commingling
Answer: B. Dual agency occurs when the broker represents both parties with informed consent.
10. Earnest money is:
A. A broker’s commission
B. A refundable security deposit
C. Consideration showing buyer’s good faith
D. An escrow fee
,Answer: C. Earnest money demonstrates the buyer’s serious intent to purchase.
11. Which type of deed provides the greatest protection to the grantee?
A. Quitclaim deed
B. Grant deed
C. Warranty deed
D. Trustee’s deed
Answer: C. A warranty deed provides the most comprehensive guarantees of title.
12. A fee simple estate is:
A. The highest form of ownership
B. A leasehold estate
C. A life estate
D. A future interest
Answer: A. Fee simple is the most complete ownership interest recognized by law.
13. A lien that results from a court judgment is:
A. Voluntary lien
B. Mechanic’s lien
C. Judgment lien
D. Tax lien
Answer: C. A judgment lien arises from a court decision against a debtor.
14. Real property includes:
A. Furniture
B. Fixtures
C. Personal vehicles
D. Stocks
Answer: B. Fixtures are attached to the land and are considered real property.
15. The doctrine of emblements refers to:
A. Water rights
B. Crop rights of tenants
C. Mineral rights
D. Air rights
Answer: B. Emblements allow tenants to harvest crops planted before lease termination.
16. A tenancy in common is characterized by:
A. Right of survivorship
B. Equal ownership required
, C. Separate transferable interests
D. Married couples only
Answer: C. Each tenant owns a separate interest that can be transferred independently.
17. Community property in California generally applies to:
A. Business partnerships
B. Property acquired during marriage
C. Property inherited before marriage
D. Joint tenancy only
Answer: B. Community property includes assets acquired during marriage (with some
exceptions).
18. An encumbrance is:
A. Ownership interest
B. Physical improvement
C. Claim or liability on property
D. Survey error
Answer: C. An encumbrance is a claim, lien, or restriction affecting title.
19. The federal law prohibiting discrimination in housing is:
A. Fair Housing Act
B. Civil Rights Act of 1866 only
C. ADA
D. Sherman Act
Answer: A. The Fair Housing Act prohibits discrimination based on protected classes.
20. Redlining refers to:
A. Legal zoning
B. Refusal to lend in certain neighborhoods
C. Environmental hazard marking
D. Title insurance exclusion
Answer: B. Redlining is the illegal practice of denying loans in specific areas.
21. A broker must deposit trust funds into a trust account within:
A. 24 hours
B. 3 business days
C. 5 business days
D. 7 calendar days
Answer: B. Trust funds must be deposited within three business days of receipt.
