REAL ESTATE PRINCIPLES 2025/2026 QUESTIONS WITH
ANSWERS RATED A+
✔✔A remedy for a breach of contract is to sue to fulfill the terms of the contract, which
is called
A) specific performance B) liquidated damages C) unilateral rescission D) suit for actual
damages - ✔✔A) Specific performance
✔✔Undisclosed dual agency is
A) permitted so long as no injury is sustained B) illegal C) permitted so long as the
principal paying the commission consents. D) permitted on residential property - ✔✔B)
illegal
✔✔Loans that do NOT involve government cooperation, such as a guarantee or
insurance, are known as
A) conventional loans B) hard money loans C) mortgage-backed securities D)
secondary funding loans - ✔✔A) conventional loans
✔✔Which of the following is NOT a less-than-freehold estate?
A) Periodic tenancy B) Estate for years C) life estate D) Estate at will - ✔✔C) Life Estate
✔✔An easement by necessity is often created by the courts to prevent
A) landlocked property B) Ingress and egress C) easement by prescription D) eminent
domain - ✔✔A) landlocked property
✔✔An agent owes which of the following duties to the principal
A) Obedience B) full disclosure of all material facts C) all of these D) good faith and
honesty - ✔✔C) all of these
✔✔A counteroffer is legally considered
A) a contract B) a rejection C) a rescission D) a novation - ✔✔A) a contract
✔✔Real estate licensees are authorized to help people buy and sell mobilehomes
provided
A) the licensee gets a special permit from the Bureau of Real Estate B) the licensee
registers as a mobilehome broker with the California Department of Motor Vehicles C)
, the mobile home has been registered with the Department of Housing and Community
Development D) the buyer and seller consent - ✔✔C) the mobile home has been
registered with the Department of Housing and Community Development.
✔✔The financing instrument favored in California is
A) the mortgage B) the deed of trust C) the quitclaim deed D) the grant deed - ✔✔B) the
deed of trust
✔✔A listing agreement in which the owner retains the right to sell the property without
paying a commission to the listing agent is known as
A) an open listing B) an exclusive agency C) a net listing D) an exclusive right-to-sell -
✔✔B) an exclusive agency
✔✔All of the following are basic elements of value EXCEPT
A) demand B) Location C) scarcity D) utility - ✔✔B) location
✔✔Ginnie Mae is a federal agency that backs A) conventional loans B) FHA and VA
residential loans C) hard money lenders D) private lenders - ✔✔B) FHA and VA
residential loans
✔✔Parallel wooden beams that support flooring are called A) sills B) joists C) posts D)
anchor bolts - ✔✔B) Joists
✔✔According to the statute of frauds, a lease for more than one year must be A) written
by an attorney B) in writing C) acknowledged by a notary public D) signed by both the
lessor and lessee - ✔✔B) in writing
✔✔A simplified alternative to capitalization of net income that does not take into account
vacancies, bad debts or expenses is called A) building residual B) gross income
multiplier C) 4-3-2-1 rule D) land residual - ✔✔B) gross income multiplier
✔✔An example of an appurtenance that "runs with " or is transferred with the land is A)
a tree B) an emblement C) a fixture D) stock in a mutual water company - ✔✔D) stock
in a mutual water company
✔✔A real estate broker who acts as a dual agent and represents both the buyer and the
seller in the same transaction must make sure that both parties A) sign the escrow
instructions B) act in good faith C) pay a commission D) give their consent - ✔✔D) give
their consent
ANSWERS RATED A+
✔✔A remedy for a breach of contract is to sue to fulfill the terms of the contract, which
is called
A) specific performance B) liquidated damages C) unilateral rescission D) suit for actual
damages - ✔✔A) Specific performance
✔✔Undisclosed dual agency is
A) permitted so long as no injury is sustained B) illegal C) permitted so long as the
principal paying the commission consents. D) permitted on residential property - ✔✔B)
illegal
✔✔Loans that do NOT involve government cooperation, such as a guarantee or
insurance, are known as
A) conventional loans B) hard money loans C) mortgage-backed securities D)
secondary funding loans - ✔✔A) conventional loans
✔✔Which of the following is NOT a less-than-freehold estate?
A) Periodic tenancy B) Estate for years C) life estate D) Estate at will - ✔✔C) Life Estate
✔✔An easement by necessity is often created by the courts to prevent
A) landlocked property B) Ingress and egress C) easement by prescription D) eminent
domain - ✔✔A) landlocked property
✔✔An agent owes which of the following duties to the principal
A) Obedience B) full disclosure of all material facts C) all of these D) good faith and
honesty - ✔✔C) all of these
✔✔A counteroffer is legally considered
A) a contract B) a rejection C) a rescission D) a novation - ✔✔A) a contract
✔✔Real estate licensees are authorized to help people buy and sell mobilehomes
provided
A) the licensee gets a special permit from the Bureau of Real Estate B) the licensee
registers as a mobilehome broker with the California Department of Motor Vehicles C)
, the mobile home has been registered with the Department of Housing and Community
Development D) the buyer and seller consent - ✔✔C) the mobile home has been
registered with the Department of Housing and Community Development.
✔✔The financing instrument favored in California is
A) the mortgage B) the deed of trust C) the quitclaim deed D) the grant deed - ✔✔B) the
deed of trust
✔✔A listing agreement in which the owner retains the right to sell the property without
paying a commission to the listing agent is known as
A) an open listing B) an exclusive agency C) a net listing D) an exclusive right-to-sell -
✔✔B) an exclusive agency
✔✔All of the following are basic elements of value EXCEPT
A) demand B) Location C) scarcity D) utility - ✔✔B) location
✔✔Ginnie Mae is a federal agency that backs A) conventional loans B) FHA and VA
residential loans C) hard money lenders D) private lenders - ✔✔B) FHA and VA
residential loans
✔✔Parallel wooden beams that support flooring are called A) sills B) joists C) posts D)
anchor bolts - ✔✔B) Joists
✔✔According to the statute of frauds, a lease for more than one year must be A) written
by an attorney B) in writing C) acknowledged by a notary public D) signed by both the
lessor and lessee - ✔✔B) in writing
✔✔A simplified alternative to capitalization of net income that does not take into account
vacancies, bad debts or expenses is called A) building residual B) gross income
multiplier C) 4-3-2-1 rule D) land residual - ✔✔B) gross income multiplier
✔✔An example of an appurtenance that "runs with " or is transferred with the land is A)
a tree B) an emblement C) a fixture D) stock in a mutual water company - ✔✔D) stock
in a mutual water company
✔✔A real estate broker who acts as a dual agent and represents both the buyer and the
seller in the same transaction must make sure that both parties A) sign the escrow
instructions B) act in good faith C) pay a commission D) give their consent - ✔✔D) give
their consent
