California Real Estate Principles Exam 2026 | Questions &
Verified Answers | California Real Estate License Review
1. What type of listing agreement guarantees a broker a commission
regardless of who sells the property?
Net listing
Open listing
Exclusive agency listing
Exclusive right to sell
2. What is the validity period of a prepaid rental listing service (PRLS)
license?
Indefinitely
Five years
One year
Two years
3. A listing agreement allows the agent to:
Place the property on the market
Find a suitable buyer
All of the above are correct
Receive a commission when the property sells
4. Describe how economic obsolescence can impact property values.
Economic obsolescence can reduce property values due to
factors outside the property, such as changes in the
neighborhood or economy.
, Economic obsolescence has no impact on property values.
Economic obsolescence is solely related to the physical
condition of the property.
Economic obsolescence increases property values by enhancing
neighborhood appeal.
5. What is the name of the form that lenders are required to provide to
borrowers for federally related residential mortgage loans?
Deed of Trust
Loan Estimate
Closing Disclosure
Mortgage Note
6. Describe the significance of the Civil Rights Act of 1866 in the context of
real estate transactions.
The Civil Rights Act of 1866 focuses solely on employment
discrimination.
The Civil Rights Act of 1866 prohibits racial discrimination in
property transactions, ensuring equal rights in real estate.
The Civil Rights Act of 1866 mandates property taxes for all real
estate transactions.
The Civil Rights Act of 1866 allows for gender discrimination in
property transactions.
7. What is the complete designation for a real estate broker's or
salesperson's license in California?
California Property License
California Real Estate License
, California Salesperson Certification
California Broker's Permit
8. Describe the significance of a listing agreement in the context of real
estate transactions.
A listing agreement is significant because it determines the
market value of the property.
A listing agreement is significant because it outlines the
responsibilities of the agent and the seller, ensuring both
parties understand their roles in the sale process.
A listing agreement is significant because it is a legally binding
contract that guarantees the sale.
A listing agreement is significant because it allows the seller to
avoid paying commissions.
9. Or someone to obtain title through adverse possession, one must:
Have open, notorious, exclusive and actual possession of
property for the statutory period of time
Have occupied property for the statutory sever-year period
Have taken permission from the owner
Have been able to occupy property without being noticed by
the owner
10. Which type of loans are guaranteed by Ginnie Mae?
Commercial loans
Government-backed loans
Subprime loans
Conventional loans
, 11. The vertical supports of a house frame are called
girders
anchor bolts
studs
sills
12. Describe the concept of adverse possession and its significance in
California real estate law.
Adverse possession requires the original owner to abandon the
property.
Adverse possession is only applicable to commercial properties.
Adverse possession allows a person to claim ownership of
land under certain conditions, including continuous
possession and payment of property taxes.
Adverse possession is a method to legally transfer property
through a written contract.
13. What is the term used in appraisal that describes the opposite of
progression?
Conformity
Depreciation
Regression
Appreciation
14. Describe the significance of mutual consent in the formation of a
contract in real estate transactions.
Mutual consent is only necessary for verbal agreements, not
written contracts.
Verified Answers | California Real Estate License Review
1. What type of listing agreement guarantees a broker a commission
regardless of who sells the property?
Net listing
Open listing
Exclusive agency listing
Exclusive right to sell
2. What is the validity period of a prepaid rental listing service (PRLS)
license?
Indefinitely
Five years
One year
Two years
3. A listing agreement allows the agent to:
Place the property on the market
Find a suitable buyer
All of the above are correct
Receive a commission when the property sells
4. Describe how economic obsolescence can impact property values.
Economic obsolescence can reduce property values due to
factors outside the property, such as changes in the
neighborhood or economy.
, Economic obsolescence has no impact on property values.
Economic obsolescence is solely related to the physical
condition of the property.
Economic obsolescence increases property values by enhancing
neighborhood appeal.
5. What is the name of the form that lenders are required to provide to
borrowers for federally related residential mortgage loans?
Deed of Trust
Loan Estimate
Closing Disclosure
Mortgage Note
6. Describe the significance of the Civil Rights Act of 1866 in the context of
real estate transactions.
The Civil Rights Act of 1866 focuses solely on employment
discrimination.
The Civil Rights Act of 1866 prohibits racial discrimination in
property transactions, ensuring equal rights in real estate.
The Civil Rights Act of 1866 mandates property taxes for all real
estate transactions.
The Civil Rights Act of 1866 allows for gender discrimination in
property transactions.
7. What is the complete designation for a real estate broker's or
salesperson's license in California?
California Property License
California Real Estate License
, California Salesperson Certification
California Broker's Permit
8. Describe the significance of a listing agreement in the context of real
estate transactions.
A listing agreement is significant because it determines the
market value of the property.
A listing agreement is significant because it outlines the
responsibilities of the agent and the seller, ensuring both
parties understand their roles in the sale process.
A listing agreement is significant because it is a legally binding
contract that guarantees the sale.
A listing agreement is significant because it allows the seller to
avoid paying commissions.
9. Or someone to obtain title through adverse possession, one must:
Have open, notorious, exclusive and actual possession of
property for the statutory period of time
Have occupied property for the statutory sever-year period
Have taken permission from the owner
Have been able to occupy property without being noticed by
the owner
10. Which type of loans are guaranteed by Ginnie Mae?
Commercial loans
Government-backed loans
Subprime loans
Conventional loans
, 11. The vertical supports of a house frame are called
girders
anchor bolts
studs
sills
12. Describe the concept of adverse possession and its significance in
California real estate law.
Adverse possession requires the original owner to abandon the
property.
Adverse possession is only applicable to commercial properties.
Adverse possession allows a person to claim ownership of
land under certain conditions, including continuous
possession and payment of property taxes.
Adverse possession is a method to legally transfer property
through a written contract.
13. What is the term used in appraisal that describes the opposite of
progression?
Conformity
Depreciation
Regression
Appreciation
14. Describe the significance of mutual consent in the formation of a
contract in real estate transactions.
Mutual consent is only necessary for verbal agreements, not
written contracts.
