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California Real Estate Exam Multiple
Choice Questions| LATEST Update 2024-
2026 Q&A Bundle| Complete and Verified
Marksheet
A seller lists their property with a brokerage but wants to continue marketing it themselves. How
would an exclusive agency listing agreement accommodate this, and what risk does it pose to the
agent?
The seller can market the property and avoid paying commission if they find the buyer
themselves, which risks the agent not being compensated for their efforts.
A buyer interested in a listed property discovers it has undisclosed water damage. What are the
potential legal implications for the listing agent?
The agent may face liability for failing to disclose known material defects, violating state
disclosure laws.
During a multiple-offer situation, how should a listing agent ethically communicate competing
offers to the seller?
Present all offers objectively, disclose their terms accurately, and advise the seller on their
best options without favoring any specific buyer.
A property listed on the MLS receives offers over the asking price. How can the listing agent
ensure transparency while managing seller expectations?
, 2
Provide the seller with a summary of all offers, explain contingencies, and ensure they
understand their rights before accepting one.
A seller insists on concealing known roof damage to secure a higher price. How should the agent
respond, and why?
Advise the seller that concealing material defects violates disclosure laws and could result in
legal action against both the seller and the agent.
Evaluate the potential benefits and drawbacks of dual agency in representing both the buyer and
seller in a property transaction.
Benefits include streamlined communication and faster negotiations; drawbacks include
conflicts of interest and limited advocacy for each party.
How should an agent handle a situation where a seller wants to withdraw from a signed listing
agreement before its expiration date?
Discuss the seller's reasons and explain any contractual penalties or obligations, offering a
mutual cancellation agreement if necessary.
A seller complains about insufficient marketing efforts by the agent. How can the agent address
this concern to maintain the listing agreement?
Provide a detailed marketing report, outline efforts made so far, and propose additional
strategies to address the seller's concerns.
, 3
Analyze the importance of accurate MLS data entry for the marketing and sale of a listed
property.
Accurate data ensures proper exposure, avoids misleading buyers, and reduces liability risks
for the agent and brokerage.
A buyer expresses interest in an MLS listing marked “contingent.” How should the agent advise
the buyer about pursuing the property?
Explain that the property has an accepted offer with conditions and advise them to submit a
backup offer if interested.
The seller receives an all-cash offer significantly below the asking price. What strategies should
the agent use to guide the seller’s response?
Highlight the benefits of a cash deal, such as a quick close and fewer contingencies, while
considering counteroffers to bridge the price gap.
Explain the rationale behind obtaining a comparative market analysis (CMA) before finalizing a
listing agreement.
It helps determine a realistic listing price based on local market trends, ensuring
competitiveness and faster sales.
A property fails to sell after 90 days on the market. How should the agent adjust their marketing
strategy to attract new interest?
, 4
Reassess pricing, update listing photos, expand advertising channels, and consider offering
buyer incentives.
Evaluate the implications of failing to include required disclosure documents in a listing packet.
It could delay the transaction, lead to buyer withdrawal, or result in legal penalties for non-
compliance.
A seller’s agent discovers that the property boundaries on the MLS are incorrect. How should
this error be rectified?
Update the MLS with correct boundary information, notify the seller and buyers, and include
an accurate legal description in the listing.
A potential buyer asks the listing agent for advice about making an offer below the asking price.
How should the agent respond within ethical boundaries?
Refer the buyer to their own agent, as advising could create a conflict of interest with the
seller.
Analyze how restrictive covenants disclosed in a property listing might impact its marketability.
Restrictions, like limits on home additions or renting, could deter buyers and affect the
property's appeal to specific markets.
A seller wants to exclude certain fixtures from the sale but does not specify this in the MLS
listing. How should the agent address this issue?
Amend the MLS listing and purchase agreement to clearly state the exclusions, preventing
disputes during negotiations.
The listing agent receives an inquiry about whether the neighborhood is "safe." How should the
agent respond in compliance with fair housing laws?
California Real Estate Exam Multiple
Choice Questions| LATEST Update 2024-
2026 Q&A Bundle| Complete and Verified
Marksheet
A seller lists their property with a brokerage but wants to continue marketing it themselves. How
would an exclusive agency listing agreement accommodate this, and what risk does it pose to the
agent?
The seller can market the property and avoid paying commission if they find the buyer
themselves, which risks the agent not being compensated for their efforts.
A buyer interested in a listed property discovers it has undisclosed water damage. What are the
potential legal implications for the listing agent?
The agent may face liability for failing to disclose known material defects, violating state
disclosure laws.
During a multiple-offer situation, how should a listing agent ethically communicate competing
offers to the seller?
Present all offers objectively, disclose their terms accurately, and advise the seller on their
best options without favoring any specific buyer.
A property listed on the MLS receives offers over the asking price. How can the listing agent
ensure transparency while managing seller expectations?
, 2
Provide the seller with a summary of all offers, explain contingencies, and ensure they
understand their rights before accepting one.
A seller insists on concealing known roof damage to secure a higher price. How should the agent
respond, and why?
Advise the seller that concealing material defects violates disclosure laws and could result in
legal action against both the seller and the agent.
Evaluate the potential benefits and drawbacks of dual agency in representing both the buyer and
seller in a property transaction.
Benefits include streamlined communication and faster negotiations; drawbacks include
conflicts of interest and limited advocacy for each party.
How should an agent handle a situation where a seller wants to withdraw from a signed listing
agreement before its expiration date?
Discuss the seller's reasons and explain any contractual penalties or obligations, offering a
mutual cancellation agreement if necessary.
A seller complains about insufficient marketing efforts by the agent. How can the agent address
this concern to maintain the listing agreement?
Provide a detailed marketing report, outline efforts made so far, and propose additional
strategies to address the seller's concerns.
, 3
Analyze the importance of accurate MLS data entry for the marketing and sale of a listed
property.
Accurate data ensures proper exposure, avoids misleading buyers, and reduces liability risks
for the agent and brokerage.
A buyer expresses interest in an MLS listing marked “contingent.” How should the agent advise
the buyer about pursuing the property?
Explain that the property has an accepted offer with conditions and advise them to submit a
backup offer if interested.
The seller receives an all-cash offer significantly below the asking price. What strategies should
the agent use to guide the seller’s response?
Highlight the benefits of a cash deal, such as a quick close and fewer contingencies, while
considering counteroffers to bridge the price gap.
Explain the rationale behind obtaining a comparative market analysis (CMA) before finalizing a
listing agreement.
It helps determine a realistic listing price based on local market trends, ensuring
competitiveness and faster sales.
A property fails to sell after 90 days on the market. How should the agent adjust their marketing
strategy to attract new interest?
, 4
Reassess pricing, update listing photos, expand advertising channels, and consider offering
buyer incentives.
Evaluate the implications of failing to include required disclosure documents in a listing packet.
It could delay the transaction, lead to buyer withdrawal, or result in legal penalties for non-
compliance.
A seller’s agent discovers that the property boundaries on the MLS are incorrect. How should
this error be rectified?
Update the MLS with correct boundary information, notify the seller and buyers, and include
an accurate legal description in the listing.
A potential buyer asks the listing agent for advice about making an offer below the asking price.
How should the agent respond within ethical boundaries?
Refer the buyer to their own agent, as advising could create a conflict of interest with the
seller.
Analyze how restrictive covenants disclosed in a property listing might impact its marketability.
Restrictions, like limits on home additions or renting, could deter buyers and affect the
property's appeal to specific markets.
A seller wants to exclude certain fixtures from the sale but does not specify this in the MLS
listing. How should the agent address this issue?
Amend the MLS listing and purchase agreement to clearly state the exclusions, preventing
disputes during negotiations.
The listing agent receives an inquiry about whether the neighborhood is "safe." How should the
agent respond in compliance with fair housing laws?
