CALIFORNIA REAL ESTATE EXAM
CALIFORNIA REAL ESTATE EXAM
STUDY GUIDE QUESTIONS AND
ANSWERS 2025
The judge has just issued a decision for ethical violations of a real estate salesperson.
What is the role of the California Real Estate Commissioner in the proceeding? -Correct
Answer ✔Dismiss the findings if the charges are not sustained at the hearing, as well as
to reduce the proposed penalty and make an official decision.
Bill the broker received a very high offer on a piece of property from a buyer. Bill makes
a low offer through a dummy purchase, or an accomplice who is not a buyer at all. Bill
sells the property for the higher price. What's the violation? -Correct Answer ✔Secret
Profit
Katrina had her license suspended for making false promises to clients. She could
never follow through with her statements and several complaints were filed. Which
guidelines constitute most suspensions? -Correct Answer ✔Sections 10176 and 10177
of Business and Professions Code
California licensing laws define which of the following: -Correct Answer ✔Real Estate
Brokerage, Handling Trust Funds, Managing Escrow Account
Which portion of the California Business and Professions Code consists of the
subdivided lands law? -Correct Answer ✔Part 2, Sections 11000 to 11200 of the
Business and Professions Code
A Nevada real estate licensee has been advertising his services online to California
citizens. Is this permissible? -Correct Answer ✔It is not permissible to solicit California
residents if you don't have a California real estate license.
A California licensee has been advertising on the Internet. She has been violating the
Business and Professions Code, Sections 10235.5 and 10140.6. What has she done? -
Correct Answer ✔She failed to indicate her license status in the ad.
Upon completion of this course, you should understand: -Correct Answer ✔The facts
regarding disclosure of commissions earned to all parties in a transaction, real estate
taxes and special assessments, encumbrances (a claim against a property by another
party. Encumbrance usually impacts the transferability of the property and can restrict
its free use until the encumberance is removed), liens, easements (non-possessory
right to use and/or enter onto the real property of another without possessing it), and
encroachments (property owner violates the property rights of his neighbor by building
something on the neighbor's land)
CALIFORNIA REAL ESTATE EXAM
,CALIFORNIA REAL ESTATE EXAM
Which regulation apply to the use of the internet for advertising in California? -Correct
Answer ✔Commission's Regulation 2770
Where can Mike find the exam's purpose and requirements? -Correct Answer
✔California Business and Professions Code Section 10153
John is trying to learn about "Professional Code". What sources have input on this
topic? -Correct Answer ✔General and state legislation, industry self-regulation through
trade associations and institutes, state real estate licensing regulation
Where does a person go with a complaint regarding discrimination? -Correct Answer
✔The Office of Fair Housing and Equal Opportunity (OFHEO)
A couple with excellent credit and good careers are denied a loan. What's the violation?
-Correct Answer ✔The couple has been denied the full protection of the Equal Credit
Opportunity Act (ECOA). The ECOA is a part of the Fair Financing Laws.
Jane has filed her complaint of discrimination. She also wants to seek punitive
damages. What are her options? -Correct Answer ✔Jane may file suit within two years
of the violation. She may seek a restraining order, actual damages, and punitive
damages of up to $1,000.
What is the largest area of Standards and Practices? -Correct Answer ✔Article 16 -
Ethics and Agency Relationships
There are shutters installed throughout the home, and the owner wants to take them
with him to his new home. Which of the five tests for real and personal property applies?
-Correct Answer ✔Method of attachment, adaptability (built-in vs. not), and intent
(agents should write into the offer items that may lead to misunderstandings, such as a
ceiling fan).
A family is clearing many trees to build a guest house. They plan on selling the wood to
the neighbors. What process applies? -Correct Answer ✔Severance- Changes real
property to personal property.
Jonathan decides to sell his home and transfer all of his property ownership rights to the
new buyer. This bundling and selling of rights is known as: -Correct Answer ✔Livery of
Seisin- when you sell the entire bundle of rights.
Which are water rights? -Correct Answer ✔Littoral Right (beaches), Doctrine of Prior
Appropriation (irrigation), and Riparian Right (River).
CALIFORNIA REAL ESTATE EXAM
, CALIFORNIA REAL ESTATE EXAM
The beach has disappeared from John's property after a violent storm. Which term
describes the damage? -Correct Answer ✔Avulsion- The sudden loss of land by an act
of nature.
John pays rent for his apartment and is also considered a stockholder in his building
and owns property. In what type of apartment does John live? -Correct Answer
✔Cooperative- the cooperative owns property and owns stock. They have long-term
leases (proprietary leases)
Melinda's mother recently passed away. She is thinking of selling her belongings in an
estate sale. What are the legal differences between real and personal property? -
Correct Answer ✔An agreement for a sale of real property must be in writing and signed
by buyer. If the amount or value is $500 or more in the sale of personal property, it must
be in writing.
A couple are in the process of refinancing their townhouse, and find they have a lien on
their home for non-payment of the previous year's property taxes. What type of lien is
on their property, and what do they need to do? -Correct Answer ✔The couple have an
involuntary lien placed on their home for delinquent property taxes. The couple needs to
pay the taxes, any interest and/or late fees, and have the lien removed.
What terms can be used to describe the owner and the renter? -Correct Answer ✔The
owners own the condo in freehold (means "I own the property") and rent it to the renter
in leasehold (means "I rent the property").
The owners own all rights to the property and the property is always inherited by the
oldest child. Which type of estate is the family vineyard? -Correct Answer ✔Fee Simple
Absolute (Owns the bundle of rights). Highest degree of ownership, has unlimited
duration, is inheritable, and is subject to only the government powers.
If a person purchases a historical home, it must be on the condition the original
architectural features are never removed. If she sells the home, the same condition
must be in the sales contract. What type of freehold estate is this historic home? -
Correct Answer ✔Fee Simple Defeasible (based on occurrence or a non-occurance of
something). An estate that dictates,"on the condition that...".
Which of the following is considered the six distinct forms of ownership in California? -
Correct Answer ✔Severalty (sole ownership). Tenancy in Common and Joint Tenancy
(both concurrent ownership)
A shopping/restaurant company is the sole owner of the property. Which form of
ownership does this property fall under? -Correct Answer ✔Severalty (sole ownership)
Upon the sale of the property, the grantor in a written agreement established that the
lake may never be touched and the property may only be used for commercial
CALIFORNIA REAL ESTATE EXAM
CALIFORNIA REAL ESTATE EXAM
STUDY GUIDE QUESTIONS AND
ANSWERS 2025
The judge has just issued a decision for ethical violations of a real estate salesperson.
What is the role of the California Real Estate Commissioner in the proceeding? -Correct
Answer ✔Dismiss the findings if the charges are not sustained at the hearing, as well as
to reduce the proposed penalty and make an official decision.
Bill the broker received a very high offer on a piece of property from a buyer. Bill makes
a low offer through a dummy purchase, or an accomplice who is not a buyer at all. Bill
sells the property for the higher price. What's the violation? -Correct Answer ✔Secret
Profit
Katrina had her license suspended for making false promises to clients. She could
never follow through with her statements and several complaints were filed. Which
guidelines constitute most suspensions? -Correct Answer ✔Sections 10176 and 10177
of Business and Professions Code
California licensing laws define which of the following: -Correct Answer ✔Real Estate
Brokerage, Handling Trust Funds, Managing Escrow Account
Which portion of the California Business and Professions Code consists of the
subdivided lands law? -Correct Answer ✔Part 2, Sections 11000 to 11200 of the
Business and Professions Code
A Nevada real estate licensee has been advertising his services online to California
citizens. Is this permissible? -Correct Answer ✔It is not permissible to solicit California
residents if you don't have a California real estate license.
A California licensee has been advertising on the Internet. She has been violating the
Business and Professions Code, Sections 10235.5 and 10140.6. What has she done? -
Correct Answer ✔She failed to indicate her license status in the ad.
Upon completion of this course, you should understand: -Correct Answer ✔The facts
regarding disclosure of commissions earned to all parties in a transaction, real estate
taxes and special assessments, encumbrances (a claim against a property by another
party. Encumbrance usually impacts the transferability of the property and can restrict
its free use until the encumberance is removed), liens, easements (non-possessory
right to use and/or enter onto the real property of another without possessing it), and
encroachments (property owner violates the property rights of his neighbor by building
something on the neighbor's land)
CALIFORNIA REAL ESTATE EXAM
,CALIFORNIA REAL ESTATE EXAM
Which regulation apply to the use of the internet for advertising in California? -Correct
Answer ✔Commission's Regulation 2770
Where can Mike find the exam's purpose and requirements? -Correct Answer
✔California Business and Professions Code Section 10153
John is trying to learn about "Professional Code". What sources have input on this
topic? -Correct Answer ✔General and state legislation, industry self-regulation through
trade associations and institutes, state real estate licensing regulation
Where does a person go with a complaint regarding discrimination? -Correct Answer
✔The Office of Fair Housing and Equal Opportunity (OFHEO)
A couple with excellent credit and good careers are denied a loan. What's the violation?
-Correct Answer ✔The couple has been denied the full protection of the Equal Credit
Opportunity Act (ECOA). The ECOA is a part of the Fair Financing Laws.
Jane has filed her complaint of discrimination. She also wants to seek punitive
damages. What are her options? -Correct Answer ✔Jane may file suit within two years
of the violation. She may seek a restraining order, actual damages, and punitive
damages of up to $1,000.
What is the largest area of Standards and Practices? -Correct Answer ✔Article 16 -
Ethics and Agency Relationships
There are shutters installed throughout the home, and the owner wants to take them
with him to his new home. Which of the five tests for real and personal property applies?
-Correct Answer ✔Method of attachment, adaptability (built-in vs. not), and intent
(agents should write into the offer items that may lead to misunderstandings, such as a
ceiling fan).
A family is clearing many trees to build a guest house. They plan on selling the wood to
the neighbors. What process applies? -Correct Answer ✔Severance- Changes real
property to personal property.
Jonathan decides to sell his home and transfer all of his property ownership rights to the
new buyer. This bundling and selling of rights is known as: -Correct Answer ✔Livery of
Seisin- when you sell the entire bundle of rights.
Which are water rights? -Correct Answer ✔Littoral Right (beaches), Doctrine of Prior
Appropriation (irrigation), and Riparian Right (River).
CALIFORNIA REAL ESTATE EXAM
, CALIFORNIA REAL ESTATE EXAM
The beach has disappeared from John's property after a violent storm. Which term
describes the damage? -Correct Answer ✔Avulsion- The sudden loss of land by an act
of nature.
John pays rent for his apartment and is also considered a stockholder in his building
and owns property. In what type of apartment does John live? -Correct Answer
✔Cooperative- the cooperative owns property and owns stock. They have long-term
leases (proprietary leases)
Melinda's mother recently passed away. She is thinking of selling her belongings in an
estate sale. What are the legal differences between real and personal property? -
Correct Answer ✔An agreement for a sale of real property must be in writing and signed
by buyer. If the amount or value is $500 or more in the sale of personal property, it must
be in writing.
A couple are in the process of refinancing their townhouse, and find they have a lien on
their home for non-payment of the previous year's property taxes. What type of lien is
on their property, and what do they need to do? -Correct Answer ✔The couple have an
involuntary lien placed on their home for delinquent property taxes. The couple needs to
pay the taxes, any interest and/or late fees, and have the lien removed.
What terms can be used to describe the owner and the renter? -Correct Answer ✔The
owners own the condo in freehold (means "I own the property") and rent it to the renter
in leasehold (means "I rent the property").
The owners own all rights to the property and the property is always inherited by the
oldest child. Which type of estate is the family vineyard? -Correct Answer ✔Fee Simple
Absolute (Owns the bundle of rights). Highest degree of ownership, has unlimited
duration, is inheritable, and is subject to only the government powers.
If a person purchases a historical home, it must be on the condition the original
architectural features are never removed. If she sells the home, the same condition
must be in the sales contract. What type of freehold estate is this historic home? -
Correct Answer ✔Fee Simple Defeasible (based on occurrence or a non-occurance of
something). An estate that dictates,"on the condition that...".
Which of the following is considered the six distinct forms of ownership in California? -
Correct Answer ✔Severalty (sole ownership). Tenancy in Common and Joint Tenancy
(both concurrent ownership)
A shopping/restaurant company is the sole owner of the property. Which form of
ownership does this property fall under? -Correct Answer ✔Severalty (sole ownership)
Upon the sale of the property, the grantor in a written agreement established that the
lake may never be touched and the property may only be used for commercial
CALIFORNIA REAL ESTATE EXAM
