Legal Aspects of Real Estate Quizzes
UPDATED ACTUAL Exam Questions and
CORRECT Answers
In most cases, a decision rendered in an arbitration proceeding is binding upon the parties.
True or False - CORRECT ANSWER - True
Arbitration is an alternative dispute resolution process in which an impartial third party hears the
positions of the parties to a dispute and renders a decision. In most cases, the decision is binding.
California's community property law originated with Spanish civil law.
True or False - CORRECT ANSWER - True
The concept of community property was imported from Spain.
Cases relating to real estate matters are first brought at the
A) appellate court level.
B) trial court level. - CORRECT ANSWER -B
trial courts (one per county) < appellate courts (court of appeals + Cali supreme court)
Cases regarding real estate matters or real estate-related issues are first brought at the trial court
level.
A lawsuit begins when a plaintiff files a complaint with the court.
,True or False - CORRECT ANSWER - True
A lawsuit begins when a plaintiff files a complaint with the court. A complaint describes the
claim and the relief requested.
California is the location of the Federal Circuit Court for the Ninth Judicial Circuit.
True or False - CORRECT ANSWER - True
The federal court system is divided into 13 regions, known as circuits. Each circuit has District
Courts and an Appellate Court known as a Circuit Court. California is the location of the Circuit
Court for the Ninth Judicial Circuit.
The main California state agency charged with the enforcement of the real estate law is the
A) Department of Real Estate (DRE).
B) Department of Business Oversight (DBO).
C) Real Estate Division (RED).
D) Office of Real Estate Appraisers. - CORRECT ANSWER -A
The California Department of Real Estate (DRE) is dedicated to administering and enforcing the
state's real estate licensing law.
Under California law, property acquired by spouses during their marriage is owned as
community property.
True or False - CORRECT ANSWER - True
,Under community property law, property acquired during a marriage is owned equally by a
husband and wife. California is a community property state.
Police power is the right of the government to seize private property for public use.
True or False - CORRECT ANSWER - False
Police power relates to the government's right to enact laws to protect the health, safety, morals,
and general welfare of the community. The right to seize property for public use is called
eminent domain.
Many civil lawsuits result in settlement once the discovery stage has been completed.
True or False - CORRECT ANSWER - True
At the end of the discovery stage, each side evaluates the strength of its case. At this stage the
case may be resolved by settlement offers.
The highest court, also known as the court of last resort, is
A) the Ninth Circuit Court of Appeals.
B) the United States Supreme Court. - CORRECT ANSWER -B
The United States Supreme Court is the court of last resort. It generally operates under
discretionary review, meaning that it can pick and choose cases (through grants of writ of
certiorari) and hear only the non-frivolous appeals that present truly novel issues.
Which one of the following is TRUE about a California real estate broker?
, A) Brokers are not liable for the actions of affiliated licensees if supervision and control is not
adequately exerted.
B) A broker should establish a policy and procedures manual.
C) A broker may not hire unlicensed personnel such as a bookkeeper to maintain the client trust
account.
D) A broker is not required to supervise affiliated licensees if they are hired as independent
contractors. - CORRECT ANSWER -B
Each brokerage company operating in California should have a Policy and Procedure Manual.
The broker must be active in a supervisory role, whether the licensee is an employee or
independent contractor, and may hire unlicensed personnel as long as they do not engage in
licensed real estate activity.
The person who hires another and delegates authority to that person to act on their behalf is
known as
A) an agent.
B) a customer.
C) a third party.
D) a principal. - CORRECT ANSWER -D
The principal is the individual who hires another, the agent, and delegates to that agent the
authority of representing the principal's interests.
The employment contract between the broker and affiliated licensees should include
A) the authority being given to the licensee.
B) the employment relationship.
C) all responsibilities and duties of the licensee.
D) All of the above - CORRECT ANSWER -D
UPDATED ACTUAL Exam Questions and
CORRECT Answers
In most cases, a decision rendered in an arbitration proceeding is binding upon the parties.
True or False - CORRECT ANSWER - True
Arbitration is an alternative dispute resolution process in which an impartial third party hears the
positions of the parties to a dispute and renders a decision. In most cases, the decision is binding.
California's community property law originated with Spanish civil law.
True or False - CORRECT ANSWER - True
The concept of community property was imported from Spain.
Cases relating to real estate matters are first brought at the
A) appellate court level.
B) trial court level. - CORRECT ANSWER -B
trial courts (one per county) < appellate courts (court of appeals + Cali supreme court)
Cases regarding real estate matters or real estate-related issues are first brought at the trial court
level.
A lawsuit begins when a plaintiff files a complaint with the court.
,True or False - CORRECT ANSWER - True
A lawsuit begins when a plaintiff files a complaint with the court. A complaint describes the
claim and the relief requested.
California is the location of the Federal Circuit Court for the Ninth Judicial Circuit.
True or False - CORRECT ANSWER - True
The federal court system is divided into 13 regions, known as circuits. Each circuit has District
Courts and an Appellate Court known as a Circuit Court. California is the location of the Circuit
Court for the Ninth Judicial Circuit.
The main California state agency charged with the enforcement of the real estate law is the
A) Department of Real Estate (DRE).
B) Department of Business Oversight (DBO).
C) Real Estate Division (RED).
D) Office of Real Estate Appraisers. - CORRECT ANSWER -A
The California Department of Real Estate (DRE) is dedicated to administering and enforcing the
state's real estate licensing law.
Under California law, property acquired by spouses during their marriage is owned as
community property.
True or False - CORRECT ANSWER - True
,Under community property law, property acquired during a marriage is owned equally by a
husband and wife. California is a community property state.
Police power is the right of the government to seize private property for public use.
True or False - CORRECT ANSWER - False
Police power relates to the government's right to enact laws to protect the health, safety, morals,
and general welfare of the community. The right to seize property for public use is called
eminent domain.
Many civil lawsuits result in settlement once the discovery stage has been completed.
True or False - CORRECT ANSWER - True
At the end of the discovery stage, each side evaluates the strength of its case. At this stage the
case may be resolved by settlement offers.
The highest court, also known as the court of last resort, is
A) the Ninth Circuit Court of Appeals.
B) the United States Supreme Court. - CORRECT ANSWER -B
The United States Supreme Court is the court of last resort. It generally operates under
discretionary review, meaning that it can pick and choose cases (through grants of writ of
certiorari) and hear only the non-frivolous appeals that present truly novel issues.
Which one of the following is TRUE about a California real estate broker?
, A) Brokers are not liable for the actions of affiliated licensees if supervision and control is not
adequately exerted.
B) A broker should establish a policy and procedures manual.
C) A broker may not hire unlicensed personnel such as a bookkeeper to maintain the client trust
account.
D) A broker is not required to supervise affiliated licensees if they are hired as independent
contractors. - CORRECT ANSWER -B
Each brokerage company operating in California should have a Policy and Procedure Manual.
The broker must be active in a supervisory role, whether the licensee is an employee or
independent contractor, and may hire unlicensed personnel as long as they do not engage in
licensed real estate activity.
The person who hires another and delegates authority to that person to act on their behalf is
known as
A) an agent.
B) a customer.
C) a third party.
D) a principal. - CORRECT ANSWER -D
The principal is the individual who hires another, the agent, and delegates to that agent the
authority of representing the principal's interests.
The employment contract between the broker and affiliated licensees should include
A) the authority being given to the licensee.
B) the employment relationship.
C) all responsibilities and duties of the licensee.
D) All of the above - CORRECT ANSWER -D
