California Real Estate Exam Questions
and Answers Graded A+
In reference to Property Taxes, "basis" or "cost" is - Correct answer-Purchase price
of prop plus cost of improvements.
How is a condominium unit owned? - Correct answer-Separate interest
How are common interests in a condo owned? - Correct answer-Equally in
undivided interest
Subdivided Land Laws refer to - Correct answer-Subdivisions of 5+ parcels on 160
acres, regulated marketing & financing, and requires disclosures in public report.
How long is a disclosure in public report for Subdivided Land Laws good for? -
Correct answer-5 Years
When does a tax year run? - Correct answer-July 1-June 30
Legally combining smaller, adjacent parcels of land to form a larger parcel. -
Correct answer-Plottage or assemblage
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,Separating large parcels into smaller lots - Correct answer-Subdividing or
separating
Amount or size of land being increased by natural forces such as deposits by wind
or water. - Correct answer-Accretion
Gradual uncovering of land previously covered by water such as when a stream
changes course. - Correct answer-Reliction
The Statute of Limitations in the state of California allows how long to take
action? - Correct answer-4 years
The process by which the court may seize real or personal property as security for
a satisfaction of monetary judgement. - Correct answer-Attachment
When is a 20-day preliminary notice of a mechanics lien need to be issued? -
Correct answer-20-days after the claimant (contractor) has first furnished labor,
services, equipment, or materials.
What is the purpose of issuing a preliminary notice of a mechanics lien to a
claimant? - Correct answer-To inform concerned parties that the property may be
subject to liens arising out of contract.
What is the brokers relationship to the customer? - Correct answer-The broker is
the agent to the customer (customer employs the broker).
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
, What is the agents (salesperson) relationship to the broker? - Correct answer-The
salesperson is the agent to the broker (the broker gives the salesperson authority to
act on his/her behalf).
A Home Equity Line of Credit is - Correct answer-An Open Ended Mortgage
An Open Ended Mortgage is - Correct answer-A type of note that permits the
borrower to obtain more money at a future date under the same deed of trust.
Zoning is an example of - Correct answer-Police power
Local jurisdictions have the authority to divide land into districts and impose land
use regulations to promote health, safety, and welfare of the public--this is known
as - Correct answer-Zoning
When can restrictions placed on a deed be removed? - Correct answer-Never
What is the only restriction placed on a deed that is considered illegal? - Correct
answer-Race restrictions
Is an option contract bilateral or unilateral? - Correct answer-Unilateral
What does an option contract NOT do? - Correct answer-Create a legal interest in a
property
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
and Answers Graded A+
In reference to Property Taxes, "basis" or "cost" is - Correct answer-Purchase price
of prop plus cost of improvements.
How is a condominium unit owned? - Correct answer-Separate interest
How are common interests in a condo owned? - Correct answer-Equally in
undivided interest
Subdivided Land Laws refer to - Correct answer-Subdivisions of 5+ parcels on 160
acres, regulated marketing & financing, and requires disclosures in public report.
How long is a disclosure in public report for Subdivided Land Laws good for? -
Correct answer-5 Years
When does a tax year run? - Correct answer-July 1-June 30
Legally combining smaller, adjacent parcels of land to form a larger parcel. -
Correct answer-Plottage or assemblage
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
,Separating large parcels into smaller lots - Correct answer-Subdividing or
separating
Amount or size of land being increased by natural forces such as deposits by wind
or water. - Correct answer-Accretion
Gradual uncovering of land previously covered by water such as when a stream
changes course. - Correct answer-Reliction
The Statute of Limitations in the state of California allows how long to take
action? - Correct answer-4 years
The process by which the court may seize real or personal property as security for
a satisfaction of monetary judgement. - Correct answer-Attachment
When is a 20-day preliminary notice of a mechanics lien need to be issued? -
Correct answer-20-days after the claimant (contractor) has first furnished labor,
services, equipment, or materials.
What is the purpose of issuing a preliminary notice of a mechanics lien to a
claimant? - Correct answer-To inform concerned parties that the property may be
subject to liens arising out of contract.
What is the brokers relationship to the customer? - Correct answer-The broker is
the agent to the customer (customer employs the broker).
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
, What is the agents (salesperson) relationship to the broker? - Correct answer-The
salesperson is the agent to the broker (the broker gives the salesperson authority to
act on his/her behalf).
A Home Equity Line of Credit is - Correct answer-An Open Ended Mortgage
An Open Ended Mortgage is - Correct answer-A type of note that permits the
borrower to obtain more money at a future date under the same deed of trust.
Zoning is an example of - Correct answer-Police power
Local jurisdictions have the authority to divide land into districts and impose land
use regulations to promote health, safety, and welfare of the public--this is known
as - Correct answer-Zoning
When can restrictions placed on a deed be removed? - Correct answer-Never
What is the only restriction placed on a deed that is considered illegal? - Correct
answer-Race restrictions
Is an option contract bilateral or unilateral? - Correct answer-Unilateral
What does an option contract NOT do? - Correct answer-Create a legal interest in a
property
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
