California - Real estate
salesperson/broker exam required
Questions With Correct Answers
(Verified Answers) Plus Rationales 2026
Q&A | Instant Download Pdf.
1. A buyer enters into an exclusive right-to-buy agreement with a
broker. The buyer finds a property on their own and completes the
purchase without the broker’s assistance. Under this agreement,
the broker is entitled to:
A. No commission because the broker did not participate
B. A commission only if the seller agrees
C. A full commission regardless of who found the property
D. Half commission due to limited involvement
Correct Answer: C
Rationale: In an exclusive right-to-buy agreement, the broker earns a
commission if the buyer purchases any property during the contract
term, regardless of who located the property or how it was acquired.
This protects the broker’s compensation for exclusivity.
2. Which of the following BEST describes “blockbusting”?
,A. Encouraging owners to sell due to rising property values
B. Soliciting listings by suggesting declining neighborhood conditions
due to demographic change
C. Overpricing homes to manipulate market value
D. Refinancing properties in distressed neighborhoods
Correct Answer: B
Rationale: Blockbusting involves inducing property owners to sell by
implying that members of a protected class are moving into the
neighborhood, leading to panic selling. It is prohibited under fair
housing laws.
3. Under California law, a real estate salesperson must:
A. Work independently if licensed
B. Operate under the supervision of a licensed broker
C. Handle escrow funds directly
D. Own at least one property
Correct Answer: B
Rationale: Salespersons in California cannot act independently and must
be employed and supervised by a licensed real estate broker who is
responsible for their actions.
4. A property is sold “as-is.” This means:
A. The seller is exempt from all disclosures
B. The buyer waives the right to inspections
C. The seller makes no warranties about condition, but disclosure
,obligations remain
D. The broker is not responsible for disclosure
Correct Answer: C
Rationale: “As-is” does not eliminate the seller’s duty to disclose known
material defects. Buyers may still inspect, and brokers still have
disclosure obligations.
5. Which document transfers ownership of real property?
A. Lease agreement
B. Grant deed
C. Mortgage note
D. Listing agreement
Correct Answer: B
Rationale: A grant deed is used to transfer title from grantor to grantee.
Other documents may create obligations but do not transfer ownership.
6. The statute of frauds requires that:
A. All real estate contracts be notarized
B. Real estate contracts be in writing to be enforceable
C. Oral agreements are preferred in real estate
D. Brokers must sign all contracts
Correct Answer: B
Rationale: The statute of frauds requires certain contracts, including
those for the sale of real property, to be in writing to be enforceable in
court.
, 7. Which fiduciary duty requires a broker to put the client’s interests
above their own?
A. Obedience
B. Loyalty
C. Accounting
D. Disclosure
Correct Answer: B
Rationale: Loyalty requires the broker to act solely in the best interest of
the client, avoiding conflicts of interest and self-dealing.
8. In a variable-rate mortgage, the interest rate is typically tied to:
A. Property taxes
B. Federal Reserve reserve requirements
C. A financial index plus a margin
D. The purchase price
Correct Answer: C
Rationale: Adjustable-rate mortgages are linked to an index (such as
SOFR or Treasury rates) plus a lender-defined margin.
9. A “fixture” is best defined as:
A. Personal property always removable
B. Land that is leased
C. Personal property that has become real property through attachment
D. A temporary structure
salesperson/broker exam required
Questions With Correct Answers
(Verified Answers) Plus Rationales 2026
Q&A | Instant Download Pdf.
1. A buyer enters into an exclusive right-to-buy agreement with a
broker. The buyer finds a property on their own and completes the
purchase without the broker’s assistance. Under this agreement,
the broker is entitled to:
A. No commission because the broker did not participate
B. A commission only if the seller agrees
C. A full commission regardless of who found the property
D. Half commission due to limited involvement
Correct Answer: C
Rationale: In an exclusive right-to-buy agreement, the broker earns a
commission if the buyer purchases any property during the contract
term, regardless of who located the property or how it was acquired.
This protects the broker’s compensation for exclusivity.
2. Which of the following BEST describes “blockbusting”?
,A. Encouraging owners to sell due to rising property values
B. Soliciting listings by suggesting declining neighborhood conditions
due to demographic change
C. Overpricing homes to manipulate market value
D. Refinancing properties in distressed neighborhoods
Correct Answer: B
Rationale: Blockbusting involves inducing property owners to sell by
implying that members of a protected class are moving into the
neighborhood, leading to panic selling. It is prohibited under fair
housing laws.
3. Under California law, a real estate salesperson must:
A. Work independently if licensed
B. Operate under the supervision of a licensed broker
C. Handle escrow funds directly
D. Own at least one property
Correct Answer: B
Rationale: Salespersons in California cannot act independently and must
be employed and supervised by a licensed real estate broker who is
responsible for their actions.
4. A property is sold “as-is.” This means:
A. The seller is exempt from all disclosures
B. The buyer waives the right to inspections
C. The seller makes no warranties about condition, but disclosure
,obligations remain
D. The broker is not responsible for disclosure
Correct Answer: C
Rationale: “As-is” does not eliminate the seller’s duty to disclose known
material defects. Buyers may still inspect, and brokers still have
disclosure obligations.
5. Which document transfers ownership of real property?
A. Lease agreement
B. Grant deed
C. Mortgage note
D. Listing agreement
Correct Answer: B
Rationale: A grant deed is used to transfer title from grantor to grantee.
Other documents may create obligations but do not transfer ownership.
6. The statute of frauds requires that:
A. All real estate contracts be notarized
B. Real estate contracts be in writing to be enforceable
C. Oral agreements are preferred in real estate
D. Brokers must sign all contracts
Correct Answer: B
Rationale: The statute of frauds requires certain contracts, including
those for the sale of real property, to be in writing to be enforceable in
court.
, 7. Which fiduciary duty requires a broker to put the client’s interests
above their own?
A. Obedience
B. Loyalty
C. Accounting
D. Disclosure
Correct Answer: B
Rationale: Loyalty requires the broker to act solely in the best interest of
the client, avoiding conflicts of interest and self-dealing.
8. In a variable-rate mortgage, the interest rate is typically tied to:
A. Property taxes
B. Federal Reserve reserve requirements
C. A financial index plus a margin
D. The purchase price
Correct Answer: C
Rationale: Adjustable-rate mortgages are linked to an index (such as
SOFR or Treasury rates) plus a lender-defined margin.
9. A “fixture” is best defined as:
A. Personal property always removable
B. Land that is leased
C. Personal property that has become real property through attachment
D. A temporary structure
