California
Department of Real Estate -
Salesperson
LATEST EXAM GUIDE
Q&S
© 2024/2025
,1. When considering land use controls, which entity is typically
responsible for zoning ordinances?
a) State government
b) Local government
c) Federal government
d) Homeowners association
Correct Answer: b) Local government
2. In California, a fiduciary duty is best described as:
a) A contractual agreement between buyer and seller
b) A legal obligation of one party to act in the best interest of
another
c) A non-binding promise made by a real estate agent
d) A financial responsibility to a lending institution
Correct Answer: b) A legal obligation of one party to act in the
best interest of another
3. The capitalization rate in property valuation is used to:
a) Calculate the gross rental income
b) Estimate the property's market value based on income
© 2024/2025
, c) Determine the cost of property insurance
d) Assess the amount of property tax due
Correct Answer: b) Estimate the property's market value based
on income
4. Which of the following is NOT a method of financing real estate
transactions in California?
a) Conventional loans
b) FHA-insured loans
c) Seller carryback financing
d) Rent-to-own agreements
Correct Answer: d) Rent-to-own agreements
5. The process of transferring property in California is formalized
by:
a) Verbal agreement
b) Handshake deal
c) Written contract
d) Public announcement
Correct Answer: c) Written contract
© 2024/2025
Department of Real Estate -
Salesperson
LATEST EXAM GUIDE
Q&S
© 2024/2025
,1. When considering land use controls, which entity is typically
responsible for zoning ordinances?
a) State government
b) Local government
c) Federal government
d) Homeowners association
Correct Answer: b) Local government
2. In California, a fiduciary duty is best described as:
a) A contractual agreement between buyer and seller
b) A legal obligation of one party to act in the best interest of
another
c) A non-binding promise made by a real estate agent
d) A financial responsibility to a lending institution
Correct Answer: b) A legal obligation of one party to act in the
best interest of another
3. The capitalization rate in property valuation is used to:
a) Calculate the gross rental income
b) Estimate the property's market value based on income
© 2024/2025
, c) Determine the cost of property insurance
d) Assess the amount of property tax due
Correct Answer: b) Estimate the property's market value based
on income
4. Which of the following is NOT a method of financing real estate
transactions in California?
a) Conventional loans
b) FHA-insured loans
c) Seller carryback financing
d) Rent-to-own agreements
Correct Answer: d) Rent-to-own agreements
5. The process of transferring property in California is formalized
by:
a) Verbal agreement
b) Handshake deal
c) Written contract
d) Public announcement
Correct Answer: c) Written contract
© 2024/2025
