California Real Estate Broker Exam 2026 – 190 Practice Questions
with Answers & Detailed Rationales, Property Ownership,
Brokerage Management, Agency, Contracts, Financing, Valuation,
California Real Estate Law & Regulations
Section 1: Property Ownership and Land Use Controls (Questions 1–28)
Question 1
A property owner conveys land to a church "so long as the premises are used for religious
worship." The church later converts the building into a for-profit banquet hall. Which future
interest does the original grantor retain?
A. Fee simple absolute
B. Life estate
C. Possibility of reverter
D. Remainder interest
Correct Answer: C
Explanation: A fee simple determinable creates a possibility of reverter in the grantor when
the stated condition ends. The grantor may reclaim title automatically when religious use
ceases.
Question 2
A developer owns a 40-acre parcel and wishes to subdivide it into 80 residential lots. Which
California law primarily governs the design and improvement standards for this subdivision?
A. Subdivision Map Act
B. Coastal Act
C. California Environmental Quality Act
,D. Subdivided Lands Law
Correct Answer: A
Explanation: The Subdivision Map Act governs local regulation of subdivision design,
improvements, and map approval. The Subdivided Lands Law applies to out-of-state or
multi-state offerings.
Question 3
An owner grants a neighbor the right to cross the owner's property to reach a public beach.
The right is for the neighbor's lifetime only. What type of interest has been created?
A. Easement appurtenant in fee simple
B. Profit à prendre
C. Easement in gross for the life of the neighbor
D. License revocable at will
Correct Answer: C
Explanation: An easement in gross benefits a specific person rather than a parcel of land.
Limiting it to the neighbor's lifetime creates a personal, life-tenancy easement.
Question 4
A property owner in a California coastal zone wants to demolish a small single-family home
and build a larger one. Which government review is most directly required?
A. DRE subdivision approval
B. Local coastal development permit
C. Federal Housing Administration approval
D. California Public Utilities Commission review
,Correct Answer: B
Explanation: Development within the coastal zone requires a coastal development permit
from the local government or Coastal Commission. The review ensures consistency with the
Local Coastal Program.
Question 5
A homeowner receives a notice from the city stating that the property has been rezoned
from R-1 (single-family) to R-3 (multi-family). What is this an example of?
A. Taking
B. Downzoning
C. Upzoning
D. Variance
Correct Answer: C
Explanation: Upzoning increases the permitted density or intensity of land use. Rezoning
from single-family to multi-family increases development potential.
Question 6
A seller wants to build a garage that will extend two feet into the side-yard setback required
by local ordinance. What must the seller obtain?
A. Conditional use permit
B. Variance
C. Nonconforming use certificate
D. Subdivision approval
Correct Answer: B
, Explanation: A variance permits a deviation from strict zoning requirements due to unique
property hardship. It requires demonstration that the variance will not harm neighbors.
Question 7
Two brothers own a property as "joint tenants." One brother sells his interest to a third party
without the other's consent. What is the result?
A. The joint tenancy continues with the new owner.
B. The joint tenancy is severed and converted to tenancy in common.
C. The sale is void without the co-owner's consent.
D. The property becomes community property.
Correct Answer: B
Explanation: A joint tenant's unilateral transfer severs the joint tenancy as to that share. The
buyer and remaining owner hold as tenants in common.
Question 8
A lender records a deed of trust against a property. The borrower fails to make payments.
Which document does the lender record to begin the nonjudicial foreclosure process?
A. Notice of default
B. Lis pendens
C. Notice of trustee's sale
D. Mechanic's lien
Correct Answer: A
Explanation: A notice of default initiates nonjudicial foreclosure under a deed of trust. It
must be recorded after the borrower is at least three months delinquent.
with Answers & Detailed Rationales, Property Ownership,
Brokerage Management, Agency, Contracts, Financing, Valuation,
California Real Estate Law & Regulations
Section 1: Property Ownership and Land Use Controls (Questions 1–28)
Question 1
A property owner conveys land to a church "so long as the premises are used for religious
worship." The church later converts the building into a for-profit banquet hall. Which future
interest does the original grantor retain?
A. Fee simple absolute
B. Life estate
C. Possibility of reverter
D. Remainder interest
Correct Answer: C
Explanation: A fee simple determinable creates a possibility of reverter in the grantor when
the stated condition ends. The grantor may reclaim title automatically when religious use
ceases.
Question 2
A developer owns a 40-acre parcel and wishes to subdivide it into 80 residential lots. Which
California law primarily governs the design and improvement standards for this subdivision?
A. Subdivision Map Act
B. Coastal Act
C. California Environmental Quality Act
,D. Subdivided Lands Law
Correct Answer: A
Explanation: The Subdivision Map Act governs local regulation of subdivision design,
improvements, and map approval. The Subdivided Lands Law applies to out-of-state or
multi-state offerings.
Question 3
An owner grants a neighbor the right to cross the owner's property to reach a public beach.
The right is for the neighbor's lifetime only. What type of interest has been created?
A. Easement appurtenant in fee simple
B. Profit à prendre
C. Easement in gross for the life of the neighbor
D. License revocable at will
Correct Answer: C
Explanation: An easement in gross benefits a specific person rather than a parcel of land.
Limiting it to the neighbor's lifetime creates a personal, life-tenancy easement.
Question 4
A property owner in a California coastal zone wants to demolish a small single-family home
and build a larger one. Which government review is most directly required?
A. DRE subdivision approval
B. Local coastal development permit
C. Federal Housing Administration approval
D. California Public Utilities Commission review
,Correct Answer: B
Explanation: Development within the coastal zone requires a coastal development permit
from the local government or Coastal Commission. The review ensures consistency with the
Local Coastal Program.
Question 5
A homeowner receives a notice from the city stating that the property has been rezoned
from R-1 (single-family) to R-3 (multi-family). What is this an example of?
A. Taking
B. Downzoning
C. Upzoning
D. Variance
Correct Answer: C
Explanation: Upzoning increases the permitted density or intensity of land use. Rezoning
from single-family to multi-family increases development potential.
Question 6
A seller wants to build a garage that will extend two feet into the side-yard setback required
by local ordinance. What must the seller obtain?
A. Conditional use permit
B. Variance
C. Nonconforming use certificate
D. Subdivision approval
Correct Answer: B
, Explanation: A variance permits a deviation from strict zoning requirements due to unique
property hardship. It requires demonstration that the variance will not harm neighbors.
Question 7
Two brothers own a property as "joint tenants." One brother sells his interest to a third party
without the other's consent. What is the result?
A. The joint tenancy continues with the new owner.
B. The joint tenancy is severed and converted to tenancy in common.
C. The sale is void without the co-owner's consent.
D. The property becomes community property.
Correct Answer: B
Explanation: A joint tenant's unilateral transfer severs the joint tenancy as to that share. The
buyer and remaining owner hold as tenants in common.
Question 8
A lender records a deed of trust against a property. The borrower fails to make payments.
Which document does the lender record to begin the nonjudicial foreclosure process?
A. Notice of default
B. Lis pendens
C. Notice of trustee's sale
D. Mechanic's lien
Correct Answer: A
Explanation: A notice of default initiates nonjudicial foreclosure under a deed of trust. It
must be recorded after the borrower is at least three months delinquent.
