California Real Estate Exam Questions and Answers Latest Updated

Broker A receives two offers on Seller B's house, which is listed for sale at $250,000. The first offer is for all cash at $200,000. The second offer is for 20% down with 80% financing for the full price. What should the broker do with respect to both offers? - ANSWER-Present both offers to the seller as soon as possible. The two primary documents dealing with payment of a loan are the mortgage or deed of trust and a - ANSWER-promissory note. The term that best describes a continuous urban corridor joining at least two cities is - ANSWER-megalopolis. The term real property can also be described as - ANSWER-the bundle of rights. The rights of a landowner to a river bordering her property are known as - ANSWER-riparian rights. In the case of a transfer of ownership of a piece of real estate, a fixture is normally - ANSWER-assumed to be included in the transfer. A tenant who operates a jewelry store wants to take his jewelry cases with him at the expiration of the lease. What is the best solution? - ANSWER-He may take the cases if removal will not cause substantial damage. A legal description of property is not adequate unless - ANSWER-land boundaries are defined. The lot and block system of property description is not also known as the - ANSWER-rectangular survey system. What best describes the interests of the holder of a life estate? - ANSWER-possession, use, and ownership How many acres does a section of land contain? - ANSWER-640 The requirement that multiple owners take title to property at the same time is a characteristic of - ANSWER-joint tenancy. The type of ownership that provides the most complete bundle of rights is - ANSWER-fee simple absolute. Which are most similar to each other with respect to inheriting property? - ANSWER-joint tenancy and community property with right of survivorship (both allow for reversion to remaining owners) A statement of the goals and policies regarding growth of a community is a good definition of the - ANSWER-general plan. The primary difference between a common interest subdivision and a standard subdivision is - ANSWER-ownership of common areas. Which of the following is a generic term for a group of people joining together to invest in real estate? - ANSWER-syndicate The proper way for a landowner who has physical difficulty in developing his property to get relief is to obtain a - ANSWER-variance. When is a landowner entitled to compensation for a change in zoning? - ANSWER-when the landowner is denied all practical economic use of the property At which lot does the Subdivided Lands Law take effect? - ANSWER-the fifth lot The state has enacted legislation providing special consideration or control for development of - ANSWER-rangeland, earthquake areas & coastal areas The land that benefits from an easement is referred to as the - ANSWER-dominant tenement. All liens are encumbrances. All encumbrances are - ANSWER-limitations. A deed restriction prohibiting the sale of property to certain ethnic groups - ANSWER-is illegal and unenforceable. A mechanic's lien creates - ANSWER-a cloud on title. A private deed restriction that places a restraint on alienation - ANSWER-is void, restricts the sale of property and is unenforceable. An easement is an encumbrance - ANSWER-always. The seller of a one-family house is required to disclose to buyers - ANSWER-the structural and mechanical condition of the property. The process by which eminent domain occurs is called - ANSWER-police power. An agent represents a - ANSWER-principal. Which of the following types of easement does not run with the land? - ANSWER-the electric company's easement to cross over your land with their power lines What is another term for an agent entrusted to act on someone's behalf? - ANSWER-fiduciary The agent who brings a ready, willing, and able buyer to a seller is commonly called the - ANSWER-procuring cause. Broker A agrees to represent Seller B in the sale of her house. Seller B agrees to pay Broker A a commission if he successfully sells the house. What do we know for certain based on these facts? - ANSWER-A bilateral express contract exists between Broker A and Seller B Broker A has a listing agreement to sell Seller B's house. Broker A brings an offer to Seller B on behalf of Buyer C. Seller B rejects the offer and a week later attempts to negotiate directly with Buyer C. Seller B has violated - ANSWER-the duty of care. Seller A wants to walk away with $200,000 after the sale of her house and all expenses are paid. She agrees that Broker B can keep, as his fee, anything he gets above that. What type of agreement have they made? - ANSWER-a net listing Seller A has signed a listing agreement with Broker B. Without the assistance of Broker B, Seller A sells her property and under the terms of the listing agreement owes no commission to Broker B. What type of listing agreement did Seller A sign? - ANSWER-an exclusive agency listing A cooperating broker may represent - ANSWER-the buyer or the seller or the listing broker This is not a type of listing agreement? - ANSWER-multiple listing Broker A has a listing to market Sell