CA RE EXAM PREP questions with
complete solutions A+ rated
The planning commission, after reviewing an environmental impact report, directed the clerk to publish
a negative declaration. This means - correct answer ✔✔A negative declaration means that the
subdivision would have no significant impact on the environment.
What is the best definition of economic rent? - correct answer ✔✔The amount the property would rent
for if it was available in today's market
Trust funds may be placed in an interest bearing account if - correct answer ✔✔1. funds are covered by
fed gov agency insurance
2. account is in name of broker as trustee
3. funds are kept separate
When a business is sold with real property, - correct answer ✔✔two deposit receipts may be used.
The opposite of collusion is - correct answer ✔✔bona fide
Under a power-of-sale clause, the trustee has a minimum of three months from recording a notice of
default before - correct answer ✔✔publication of sale.
A prospective buyer pays $200 for a four-month OPTION to purchase a $30,000 property. - correct
answer ✔✔1. the agreement imposes no obligation on the optionee to purchase the property.
2.the optionor's temporary surrender of the right to sell is valuable consideration.
3. a unilateral contract has been established.
Mr. Kale wants to purchase a mountain lot from an owner on which a final report has not been issued by
the real estate commissioner. He is concerned about a possible blanket encumbrance, deed restrictions,
, utility easements, who is responsible for street maintenance, financing, et cetera. The BEST single source
to find the answers to these questions would be - correct answer ✔✔the local title company.
An investor in apartment properties would LEAST likely choose an apartment located in an area - correct
answer ✔✔bordering a remote suburb.
In a sales transaction, an agent is paid by both parties, but he did not reveal his dual agency. What could
happen in these circumstances? - correct answer ✔✔1. The agent may not be able to enforce payment
of his commission.
2. The agent would be subject to discipline by the real estate commissioner.
3.The sale could be rescinded.
An ALTA extended coverage policy of title insurance would - correct answer ✔✔be limited to stated
conditions and title as of the date of issuance.
In filing its corporation income taxes, what is the characteristic of a corporation that files as a subchapter
S corporation? - correct answer ✔✔The earnings and losses of the corporation are passed through to the
stockholders, who will include them on their personal income tax returns.
In addition to municipal or county controls imposed through zoning ordinances and the Subdivision Map
Act, other government controls are exercised by - correct answer ✔✔1. agencies that insure and
guarantee FHA and VA loans.
2. the California Department of Real Estate.
3. health, fire, and safety requirements.
Assessments become liens on newly constructed improvements when - correct answer ✔✔completed
and levied.
An appurtenant easement involves two parcels of land. The owner of the dominant tenement may -
correct answer ✔✔not retain easement rights with the transfer of the parcel.
ooper has a fee simple estate and transfers possession for a term less than the fee estate. Cooper has -
correct answer ✔✔a reversion.
complete solutions A+ rated
The planning commission, after reviewing an environmental impact report, directed the clerk to publish
a negative declaration. This means - correct answer ✔✔A negative declaration means that the
subdivision would have no significant impact on the environment.
What is the best definition of economic rent? - correct answer ✔✔The amount the property would rent
for if it was available in today's market
Trust funds may be placed in an interest bearing account if - correct answer ✔✔1. funds are covered by
fed gov agency insurance
2. account is in name of broker as trustee
3. funds are kept separate
When a business is sold with real property, - correct answer ✔✔two deposit receipts may be used.
The opposite of collusion is - correct answer ✔✔bona fide
Under a power-of-sale clause, the trustee has a minimum of three months from recording a notice of
default before - correct answer ✔✔publication of sale.
A prospective buyer pays $200 for a four-month OPTION to purchase a $30,000 property. - correct
answer ✔✔1. the agreement imposes no obligation on the optionee to purchase the property.
2.the optionor's temporary surrender of the right to sell is valuable consideration.
3. a unilateral contract has been established.
Mr. Kale wants to purchase a mountain lot from an owner on which a final report has not been issued by
the real estate commissioner. He is concerned about a possible blanket encumbrance, deed restrictions,
, utility easements, who is responsible for street maintenance, financing, et cetera. The BEST single source
to find the answers to these questions would be - correct answer ✔✔the local title company.
An investor in apartment properties would LEAST likely choose an apartment located in an area - correct
answer ✔✔bordering a remote suburb.
In a sales transaction, an agent is paid by both parties, but he did not reveal his dual agency. What could
happen in these circumstances? - correct answer ✔✔1. The agent may not be able to enforce payment
of his commission.
2. The agent would be subject to discipline by the real estate commissioner.
3.The sale could be rescinded.
An ALTA extended coverage policy of title insurance would - correct answer ✔✔be limited to stated
conditions and title as of the date of issuance.
In filing its corporation income taxes, what is the characteristic of a corporation that files as a subchapter
S corporation? - correct answer ✔✔The earnings and losses of the corporation are passed through to the
stockholders, who will include them on their personal income tax returns.
In addition to municipal or county controls imposed through zoning ordinances and the Subdivision Map
Act, other government controls are exercised by - correct answer ✔✔1. agencies that insure and
guarantee FHA and VA loans.
2. the California Department of Real Estate.
3. health, fire, and safety requirements.
Assessments become liens on newly constructed improvements when - correct answer ✔✔completed
and levied.
An appurtenant easement involves two parcels of land. The owner of the dominant tenement may -
correct answer ✔✔not retain easement rights with the transfer of the parcel.
ooper has a fee simple estate and transfers possession for a term less than the fee estate. Cooper has -
correct answer ✔✔a reversion.
