ACEABLE AGENT: REAL ESTATE
PRINCIPLES: REVIEW EXAM
QUESTIONS AND ANSWERS GRADED A+
2025/2026
The Real Estate Law is found in
A. The Licensing Code
B. The Business and Professions Code
C. The Health and Safety Code
D. The Corporations Code - ANS B. Business and Professions Code
The Real Estate Commissioner reports to
a. the California Bureau of Real Estate.
b. the governor.
c. the Department of Housing and Urban Development.
d. the legislature. - ANS B. the governor
A salesperson owns 25% of the outstanding shares of Rollo Reality Inc and the broker owns the
remaining shares. The division of ownership is
a. acceptable.
b. mandated.
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,c. discouraged.
d. prohibited. - ANS A. Acceptable
A salesperson is part owner of Rollo Realty Inc. In the broker's absence, the salesperson
frequently reviews the work of sales associates. This is
a. acceptable.
b. mandated.
c. discouraged.
d. prohibited. - ANS D. Prohibited
A real estate business that is a partnership can have more than one office location, provided
a. a broker partner obtains an additional license for each location.
b. all partners are real estate licensees.
c. there is a designated broker-officer.
d. there is at least one partner at each location. - ANS A. A broker partner obtains an
additional license for each location.
The sale or transfer of goods ordinarily held for sale in the course of business is governed in
California by
a. the Business Opportunity Code.
b. the Commercial Transfer Law.
c. the Uniform Commercial Code.
d. the Real Estate Law. - ANS C. The Uniform Commercial Code
An officer of Ajax Corporation, who is not a real estate license, successfully negotiated the
purchase of the Smith Widget Plant on behalf of Ajax. The officer received a commission on the
sale in addition to his normal salary. The officer of Ajax Corporation.
a. did not need a real estate license for the deal.
b. should have had a real estate license.
c. is exempt from licensing requirements.
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,d. None of these - ANS B. Should have had a real estate license.
If a real estate license is NOT renewed before it expires, the licensee
a. is allowed to complete transactions in progress.
b. is allowed to finish transactions that are substantially complete.
c. must cease all real estate activities.
d. may act under authority of another agent's license for a period not to exceed 60 days. -
ANS C. Must cease all real estate activities
A real estate licensee can offer a mobile home for sale that is
a. in a manufacturing plant, ready for delivery.
b. transportable under an exemption from the Vehicle Code.
c. presold.
d. in a location where it can legally remain for one year. - ANS D. In a location where it can
legally remain for one year.
A couple desperately wants to move to Pine Bend, and they like the seller's house, which is
listed with a broker. The couple tells the broker they will "make it worth his while" if he can
persuade the sellers to accept their offer, and they send an expensive food basket to the broker
as a sign of their good faith. The broker neglects to mention this to the sellers. This practice is
a. acceptable.
b. mandated.
c. discouraged.
d. prohibited. - ANS D. Prohibited.
A broker routinely places earnest money deposits in his personal account for overnight
safekeeping. This practice is
a. acceptable.
b. mandated.
c. discouraged.
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, d. prohibited. - ANS D. Prohibited
A broker has an exclusive listing agreement with a property owner. The listing will terminate
"when the parties agree." This practice is
A. acceptable
B. mandated
C. Discouraged
D. Prohibited - ANS D. Prohibited
When a broker exercised his option to buy Whiteacre, he presented to the owner of Whiteacre
a written statement of his expected profit in the transaction. The seller agreed in writing to
proceed with the sale. This conduct is
A. Acceptable
B. Mandated
C. Discouraged
D. Prohibited - ANS B. Mandated
The broker-office of XYZ Realty, Inc., does not like the overly aggressive sales tactics of XYZ's
salespeople but has not reprimanded them because business is so good. The broker's conduct is
A. Acceptable
B. Mandated
C. Discouraged
D. Prohibited - ANS C. Discouraged
A broker wants to help out his neighbor's son, who recently acquired a B.A. in history from Back
East University. The broker hires the graduate to show property to prospective buyers. Because
the new employee has no real estate license, the broker handles all of the negotiating. This
practice is
A. acceptable
B. mandated
C. discouraged
4 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
PRINCIPLES: REVIEW EXAM
QUESTIONS AND ANSWERS GRADED A+
2025/2026
The Real Estate Law is found in
A. The Licensing Code
B. The Business and Professions Code
C. The Health and Safety Code
D. The Corporations Code - ANS B. Business and Professions Code
The Real Estate Commissioner reports to
a. the California Bureau of Real Estate.
b. the governor.
c. the Department of Housing and Urban Development.
d. the legislature. - ANS B. the governor
A salesperson owns 25% of the outstanding shares of Rollo Reality Inc and the broker owns the
remaining shares. The division of ownership is
a. acceptable.
b. mandated.
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,c. discouraged.
d. prohibited. - ANS A. Acceptable
A salesperson is part owner of Rollo Realty Inc. In the broker's absence, the salesperson
frequently reviews the work of sales associates. This is
a. acceptable.
b. mandated.
c. discouraged.
d. prohibited. - ANS D. Prohibited
A real estate business that is a partnership can have more than one office location, provided
a. a broker partner obtains an additional license for each location.
b. all partners are real estate licensees.
c. there is a designated broker-officer.
d. there is at least one partner at each location. - ANS A. A broker partner obtains an
additional license for each location.
The sale or transfer of goods ordinarily held for sale in the course of business is governed in
California by
a. the Business Opportunity Code.
b. the Commercial Transfer Law.
c. the Uniform Commercial Code.
d. the Real Estate Law. - ANS C. The Uniform Commercial Code
An officer of Ajax Corporation, who is not a real estate license, successfully negotiated the
purchase of the Smith Widget Plant on behalf of Ajax. The officer received a commission on the
sale in addition to his normal salary. The officer of Ajax Corporation.
a. did not need a real estate license for the deal.
b. should have had a real estate license.
c. is exempt from licensing requirements.
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,d. None of these - ANS B. Should have had a real estate license.
If a real estate license is NOT renewed before it expires, the licensee
a. is allowed to complete transactions in progress.
b. is allowed to finish transactions that are substantially complete.
c. must cease all real estate activities.
d. may act under authority of another agent's license for a period not to exceed 60 days. -
ANS C. Must cease all real estate activities
A real estate licensee can offer a mobile home for sale that is
a. in a manufacturing plant, ready for delivery.
b. transportable under an exemption from the Vehicle Code.
c. presold.
d. in a location where it can legally remain for one year. - ANS D. In a location where it can
legally remain for one year.
A couple desperately wants to move to Pine Bend, and they like the seller's house, which is
listed with a broker. The couple tells the broker they will "make it worth his while" if he can
persuade the sellers to accept their offer, and they send an expensive food basket to the broker
as a sign of their good faith. The broker neglects to mention this to the sellers. This practice is
a. acceptable.
b. mandated.
c. discouraged.
d. prohibited. - ANS D. Prohibited.
A broker routinely places earnest money deposits in his personal account for overnight
safekeeping. This practice is
a. acceptable.
b. mandated.
c. discouraged.
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, d. prohibited. - ANS D. Prohibited
A broker has an exclusive listing agreement with a property owner. The listing will terminate
"when the parties agree." This practice is
A. acceptable
B. mandated
C. Discouraged
D. Prohibited - ANS D. Prohibited
When a broker exercised his option to buy Whiteacre, he presented to the owner of Whiteacre
a written statement of his expected profit in the transaction. The seller agreed in writing to
proceed with the sale. This conduct is
A. Acceptable
B. Mandated
C. Discouraged
D. Prohibited - ANS B. Mandated
The broker-office of XYZ Realty, Inc., does not like the overly aggressive sales tactics of XYZ's
salespeople but has not reprimanded them because business is so good. The broker's conduct is
A. Acceptable
B. Mandated
C. Discouraged
D. Prohibited - ANS C. Discouraged
A broker wants to help out his neighbor's son, who recently acquired a B.A. in history from Back
East University. The broker hires the graduate to show property to prospective buyers. Because
the new employee has no real estate license, the broker handles all of the negotiating. This
practice is
A. acceptable
B. mandated
C. discouraged
4 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
