California Broker Real Estate Exam
Questions with Answers
Broker A receives two offers on Seller B's house, which is listed for sale at $250,000. The first offer
is for all cash at $200,000. The second offer is for 20% down with 80% financing for the full price.
What should the broker do with respect to both offers? - Correct Answer✔️✔️-Present both offers
to the seller as soon as possible.
The two primary documents dealing with payment of a loan are the mortgage or deed of trust and a
- Correct Answer✔️✔️-promissory note.
The term that best describes a continuous urban corridor joining at least two cities is - Correct
Answer✔️✔️-megalopolis.
The term real property can also be described as - Correct Answer✔️✔️-the bundle of rights.
The rights of a landowner to a river bordering her property are known as - Correct Answer✔️✔️-
riparian rights.
In the case of a transfer of ownership of a piece of real estate, a fixture is normally - Correct
Answer✔️✔️-assumed to be included in the transfer.
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 1
,A tenant who operates a jewelry store wants to take his jewelry cases with him at the expiration of
the lease. What is the best solution? - Correct Answer✔️✔️-He may take the cases if removal will
not cause substantial damage.
A legal description of property is not adequate unless - Correct Answer✔️✔️-land boundaries are
defined.
The lot and block system of property description is not also known as the - Correct Answer✔️✔️-
rectangular survey system.
What best describes the interests of the holder of a life estate? - Correct Answer✔️✔️-possession,
use, and ownership
How many acres does a section of land contain? - Correct Answer✔️✔️-640 acres
The requirement that multiple owners take title to property at the same time is a characteristic of -
Correct Answer✔️✔️-joint tenancy.
The type of ownership that provides the most complete bundle of rights is - Correct Answer✔️✔️-
fee simple absolute.
Which are most similar to each other with respect to inheriting property? - Correct Answer✔️✔️-
joint tenancy and community property with right of survivorship (both allow for reversion to
remaining owners)
A statement of the goals and policies regarding growth of a community is a good definition of the -
Correct Answer✔️✔️-general plan.
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 2
,The primary difference between a common interest subdivision and a standard subdivision is -
Correct Answer✔️✔️-ownership of common areas.
Which of the following is a generic term for a group of people joining together to invest in real
estate? - Correct Answer✔️✔️-syndicate
The proper way for a landowner who has physical difficulty in developing his property to get relief is
to obtain a - Correct Answer✔️✔️-variance.
When is a landowner entitled to compensation for a change in zoning? - Correct Answer✔️✔️-
when the landowner is denied all practical economic use of the property
At which lot does the Subdivided Lands Law take effect? - Correct Answer✔️✔️-the fifth lot
The state has enacted legislation providing special consideration or control for development of -
Correct Answer✔️✔️-rangeland, earthquake areas & coastal areas
The land that benefits from an easement is referred to as the - Correct Answer✔️✔️-dominant
tenement.
All liens are encumbrances. All encumbrances are - Correct Answer✔️✔️-limitations.
A deed restriction prohibiting the sale of property to certain ethnic groups - Correct Answer✔️✔️-
is illegal and unenforceable.
A mechanic's lien creates - Correct Answer✔️✔️-a cloud on title.
A private deed restriction that places a restraint on alienation - Correct Answer✔️✔️-is void,
restricts the sale of property and is unenforceable.
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 3
, An easement is an encumbrance - Correct Answer✔️✔️-always.
The seller of a one-family house is required to disclose to buyers - Correct Answer✔️✔️-the
structural and mechanical condition of the property.
The process by which eminent domain occurs is called - Correct Answer✔️✔️-police power.
An agent represents a - Correct Answer✔️✔️-principal.
Which of the following types of easement does not run with the land? - Correct Answer✔️✔️-the
electric company's easement to cross over your land with their power lines
What is another term for an agent entrusted to act on someone's behalf? - Correct Answer✔️✔️-
fiduciary
The agent who brings a ready, willing, and able buyer to a seller is commonly called the - Correct
Answer✔️✔️-procuring cause.
Broker A agrees to represent Seller B in the sale of her house. Seller B agrees to pay Broker A a
commission if he successfully sells the house. What do we know for certain based on these facts? -
Correct Answer✔️✔️-A bilateral express contract exists between Broker A and Seller B
Broker A has a listing agreement to sell Seller B's house. Broker A brings an offer to Seller B on
behalf of Buyer C. Seller B rejects the offer and a week later attempts to negotiate directly with
Buyer C. Seller B has violated - Correct Answer✔️✔️-the duty of care.
Seller A wants to walk away with $200,000 after the sale of her house and all expenses are paid. She
agrees that Broker B can keep, as his fee, anything he gets above that. What type of agreement have
they made? - Correct Answer✔️✔️-a net listing
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 4
Questions with Answers
Broker A receives two offers on Seller B's house, which is listed for sale at $250,000. The first offer
is for all cash at $200,000. The second offer is for 20% down with 80% financing for the full price.
What should the broker do with respect to both offers? - Correct Answer✔️✔️-Present both offers
to the seller as soon as possible.
The two primary documents dealing with payment of a loan are the mortgage or deed of trust and a
- Correct Answer✔️✔️-promissory note.
The term that best describes a continuous urban corridor joining at least two cities is - Correct
Answer✔️✔️-megalopolis.
The term real property can also be described as - Correct Answer✔️✔️-the bundle of rights.
The rights of a landowner to a river bordering her property are known as - Correct Answer✔️✔️-
riparian rights.
In the case of a transfer of ownership of a piece of real estate, a fixture is normally - Correct
Answer✔️✔️-assumed to be included in the transfer.
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 1
,A tenant who operates a jewelry store wants to take his jewelry cases with him at the expiration of
the lease. What is the best solution? - Correct Answer✔️✔️-He may take the cases if removal will
not cause substantial damage.
A legal description of property is not adequate unless - Correct Answer✔️✔️-land boundaries are
defined.
The lot and block system of property description is not also known as the - Correct Answer✔️✔️-
rectangular survey system.
What best describes the interests of the holder of a life estate? - Correct Answer✔️✔️-possession,
use, and ownership
How many acres does a section of land contain? - Correct Answer✔️✔️-640 acres
The requirement that multiple owners take title to property at the same time is a characteristic of -
Correct Answer✔️✔️-joint tenancy.
The type of ownership that provides the most complete bundle of rights is - Correct Answer✔️✔️-
fee simple absolute.
Which are most similar to each other with respect to inheriting property? - Correct Answer✔️✔️-
joint tenancy and community property with right of survivorship (both allow for reversion to
remaining owners)
A statement of the goals and policies regarding growth of a community is a good definition of the -
Correct Answer✔️✔️-general plan.
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 2
,The primary difference between a common interest subdivision and a standard subdivision is -
Correct Answer✔️✔️-ownership of common areas.
Which of the following is a generic term for a group of people joining together to invest in real
estate? - Correct Answer✔️✔️-syndicate
The proper way for a landowner who has physical difficulty in developing his property to get relief is
to obtain a - Correct Answer✔️✔️-variance.
When is a landowner entitled to compensation for a change in zoning? - Correct Answer✔️✔️-
when the landowner is denied all practical economic use of the property
At which lot does the Subdivided Lands Law take effect? - Correct Answer✔️✔️-the fifth lot
The state has enacted legislation providing special consideration or control for development of -
Correct Answer✔️✔️-rangeland, earthquake areas & coastal areas
The land that benefits from an easement is referred to as the - Correct Answer✔️✔️-dominant
tenement.
All liens are encumbrances. All encumbrances are - Correct Answer✔️✔️-limitations.
A deed restriction prohibiting the sale of property to certain ethnic groups - Correct Answer✔️✔️-
is illegal and unenforceable.
A mechanic's lien creates - Correct Answer✔️✔️-a cloud on title.
A private deed restriction that places a restraint on alienation - Correct Answer✔️✔️-is void,
restricts the sale of property and is unenforceable.
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 3
, An easement is an encumbrance - Correct Answer✔️✔️-always.
The seller of a one-family house is required to disclose to buyers - Correct Answer✔️✔️-the
structural and mechanical condition of the property.
The process by which eminent domain occurs is called - Correct Answer✔️✔️-police power.
An agent represents a - Correct Answer✔️✔️-principal.
Which of the following types of easement does not run with the land? - Correct Answer✔️✔️-the
electric company's easement to cross over your land with their power lines
What is another term for an agent entrusted to act on someone's behalf? - Correct Answer✔️✔️-
fiduciary
The agent who brings a ready, willing, and able buyer to a seller is commonly called the - Correct
Answer✔️✔️-procuring cause.
Broker A agrees to represent Seller B in the sale of her house. Seller B agrees to pay Broker A a
commission if he successfully sells the house. What do we know for certain based on these facts? -
Correct Answer✔️✔️-A bilateral express contract exists between Broker A and Seller B
Broker A has a listing agreement to sell Seller B's house. Broker A brings an offer to Seller B on
behalf of Buyer C. Seller B rejects the offer and a week later attempts to negotiate directly with
Buyer C. Seller B has violated - Correct Answer✔️✔️-the duty of care.
Seller A wants to walk away with $200,000 after the sale of her house and all expenses are paid. She
agrees that Broker B can keep, as his fee, anything he gets above that. What type of agreement have
they made? - Correct Answer✔️✔️-a net listing
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 4
