1
California Certification 2025: Real Estate
Principles Practice Exam 2-A| Questions
and Verified Answers
A seller refuses to disclose a known defect in a house’s foundation. How would this affect the
validity of the sales contract?
A) Contract remains valid because the buyer should inspect
B) Contract is voidable due to nondisclosure
C) Contract is automatically terminated
D) Contract must be renegotiated
The seller’s failure to disclose material facts makes the contract voidable at the buyer’s
option due to misrepresentation.
A real estate agent receives an offer but does not present it to the seller because they believe the
price is too low. What ethical violation might this represent?
A) Breach of fiduciary duty
B) Unlawful detainment of funds
C) Dual agency without disclosure
D) No violation occurred
The agent breached fiduciary duty by not presenting all offers promptly to the client.
A listing agreement states the agent will receive commission if the property sells within 90 days.
, 2
After 100 days, a buyer the agent introduced purchases the property. Is the agent entitled to
commission?
A) Yes, agent is entitled
B) No, the period expired
C) Only if the seller agrees
D) Only if the buyer signs a new contract
An exclusive agency or protection period typically extends commission rights beyond the
listing period for buyers procured during that time.
Which zoning classification would most likely allow for a residential duplex to be built on a
property?
A) Commercial
B) Industrial
C) Residential multi-family
D) Agricultural
Residential multi-family zoning permits structures like duplexes.
If a house has a sewer line problem, which party is generally responsible for repair if the issue is
discovered during escrow?
A) Buyer
B) Seller
C) Escrow company
D) Real estate agent
, 3
Sellers must disclose and typically repair major defects found during escrow unless
otherwise agreed.
A contract includes a clause that allows either party to cancel within 3 days after signing without
penalty. This clause is called:
A) Contingency
B) Option period
C) Right of rescission
D) Earnest money agreement
The right of rescission allows cancellation within a specified period.
How does adverse possession allow someone to gain ownership of land?
A) By purchasing it from the government
B) By occupying the property openly, continuously, and hostilely for a statutory period
C) By inheriting from a deceased owner
D) By signing a lease agreement
Adverse possession requires open and continuous possession without permission for a set
time.
Which of the following is NOT considered a material fact in real estate transactions?
A) Past flooding of the property
B) Presence of lead-based paint
California Certification 2025: Real Estate
Principles Practice Exam 2-A| Questions
and Verified Answers
A seller refuses to disclose a known defect in a house’s foundation. How would this affect the
validity of the sales contract?
A) Contract remains valid because the buyer should inspect
B) Contract is voidable due to nondisclosure
C) Contract is automatically terminated
D) Contract must be renegotiated
The seller’s failure to disclose material facts makes the contract voidable at the buyer’s
option due to misrepresentation.
A real estate agent receives an offer but does not present it to the seller because they believe the
price is too low. What ethical violation might this represent?
A) Breach of fiduciary duty
B) Unlawful detainment of funds
C) Dual agency without disclosure
D) No violation occurred
The agent breached fiduciary duty by not presenting all offers promptly to the client.
A listing agreement states the agent will receive commission if the property sells within 90 days.
, 2
After 100 days, a buyer the agent introduced purchases the property. Is the agent entitled to
commission?
A) Yes, agent is entitled
B) No, the period expired
C) Only if the seller agrees
D) Only if the buyer signs a new contract
An exclusive agency or protection period typically extends commission rights beyond the
listing period for buyers procured during that time.
Which zoning classification would most likely allow for a residential duplex to be built on a
property?
A) Commercial
B) Industrial
C) Residential multi-family
D) Agricultural
Residential multi-family zoning permits structures like duplexes.
If a house has a sewer line problem, which party is generally responsible for repair if the issue is
discovered during escrow?
A) Buyer
B) Seller
C) Escrow company
D) Real estate agent
, 3
Sellers must disclose and typically repair major defects found during escrow unless
otherwise agreed.
A contract includes a clause that allows either party to cancel within 3 days after signing without
penalty. This clause is called:
A) Contingency
B) Option period
C) Right of rescission
D) Earnest money agreement
The right of rescission allows cancellation within a specified period.
How does adverse possession allow someone to gain ownership of land?
A) By purchasing it from the government
B) By occupying the property openly, continuously, and hostilely for a statutory period
C) By inheriting from a deceased owner
D) By signing a lease agreement
Adverse possession requires open and continuous possession without permission for a set
time.
Which of the following is NOT considered a material fact in real estate transactions?
A) Past flooding of the property
B) Presence of lead-based paint
