CALIFORNIA REAL ESTATE EXAM 2023-2024 MULTIPLE CHOICE EXAM 500 QUESTIONS AND CORRECT
DETAILED ANSWERS
In reference to Property Taxes, "basis" or "cost" is - (answer) Purchase price of prop plus cost of
improvements.
How is a condominium unit owned? - (answer) Separate interest
How are common interests in a condo owned? - (answer) Equally in undivided interest
Subdivided Land Laws refer to - (answer) Subdivisions of 5+ parcels on 160 acres, regulated marketing
& financing, and requires disclosures in public report.
How long is a disclosure in public report for Subdivided Land Laws good for? - (answer) 5 Years
When does a tax year run? - (answer) July 1-June 30
Legally combining smaller, adjacent parcels of land to form a larger parcel. - (answer) Plottage or
assemblage
Separating large parcels into smaller lots - (answer) Subdividing or separating
Amount or size of land being increased by natural forces such as deposits by wind or water. - (answer)
Accretion
Gradual uncovering of land previously covered by water such as when a stream changes course. -
(answer) Reliction
The Statute of Limitations in the state of California allows how long to take action? - (answer) 4 years
The process by which the court may seize real or personal property as security for a satisfaction of
monetary judgement. - (answer) Attachment
,CALIFORNIA REAL ESTATE EXAM 2023-2024 MULTIPLE CHOICE EXAM 500 QUESTIONS AND CORRECT
DETAILED ANSWERS
When is a 20-day preliminary notice of a mechanics lien need to be issued? - (answer) 20-days after
the claimant (contractor) has first furnished labor, services, equipment, or materials.
What is the purpose of issuing a preliminary notice of a mechanics lien to a claimant? - (answer) To
inform concerned parties that the property may be subject to liens arising out of contract.
What is the brokers relationship to the customer? - (answer) The broker is the agent to the customer
(customer employs the broker).
What is the agents (salesperson) relationship to the broker? - (answer) The salesperson is the agent to
the broker (the broker gives the salesperson authority to act on his/her behalf).
A Home Equity Line of Credit is - (answer) An Open Ended Mortgage
An Open Ended Mortgage is - (answer) A type of note that permits the borrower to obtain more
money at a future date under the same deed of trust.
Zoning is an example of - (answer) Police power
Local jurisdictions have the authority to divide land into districts and impose land use regulations to
promote health, safety, and welfare of the public--this is known as - (answer) Zoning
When can restrictions placed on a deed be removed? - (answer) Never
What is the only restriction placed on a deed that is considered illegal? - (answer) Race restrictions
Is an option contract bilateral or unilateral? - (answer) Unilateral
, CALIFORNIA REAL ESTATE EXAM 2023-2024 MULTIPLE CHOICE EXAM 500 QUESTIONS AND CORRECT
DETAILED ANSWERS
What does an option contract NOT do? - (answer) Create a legal interest in a property
If a buyer has defaulted on on an original land contract which had been recorded, this would result in a
defective title, requiring legal action to clear the title. This is called - (answer) a Quiet Title Action.
A promise is also known as a - (answer) Covenant
A court action is mandatory to evict a delinquent tenant. This process is called - (answer) Unlawful
Detainer
A verbal contract is considered - (answer) Valid
California Statute of Frauds require a real estate agreement to be - (answer) In writing
What kind of listing agreement offers a listing broker to receive a commission regardless of who is the
"procuring" cause? Is also considered the greatest protection for the agent. - (answer) Exclusive right to
sell
What does a deed NOT need to be considered valid? - (answer) A date
A valid deed must have 3 components - (answer) Be in writing, be signed by the grantor, and delivered
to the grantee
For a deed to be recorded, it must - (answer) Be acknowledged (notarized)
A chattel - (answer) Is most accurately described as personal property
Which is NOT corporeal property? A fee simple estate, a leasehold, an easement, or a fixture? -
(answer) An easement
DETAILED ANSWERS
In reference to Property Taxes, "basis" or "cost" is - (answer) Purchase price of prop plus cost of
improvements.
How is a condominium unit owned? - (answer) Separate interest
How are common interests in a condo owned? - (answer) Equally in undivided interest
Subdivided Land Laws refer to - (answer) Subdivisions of 5+ parcels on 160 acres, regulated marketing
& financing, and requires disclosures in public report.
How long is a disclosure in public report for Subdivided Land Laws good for? - (answer) 5 Years
When does a tax year run? - (answer) July 1-June 30
Legally combining smaller, adjacent parcels of land to form a larger parcel. - (answer) Plottage or
assemblage
Separating large parcels into smaller lots - (answer) Subdividing or separating
Amount or size of land being increased by natural forces such as deposits by wind or water. - (answer)
Accretion
Gradual uncovering of land previously covered by water such as when a stream changes course. -
(answer) Reliction
The Statute of Limitations in the state of California allows how long to take action? - (answer) 4 years
The process by which the court may seize real or personal property as security for a satisfaction of
monetary judgement. - (answer) Attachment
,CALIFORNIA REAL ESTATE EXAM 2023-2024 MULTIPLE CHOICE EXAM 500 QUESTIONS AND CORRECT
DETAILED ANSWERS
When is a 20-day preliminary notice of a mechanics lien need to be issued? - (answer) 20-days after
the claimant (contractor) has first furnished labor, services, equipment, or materials.
What is the purpose of issuing a preliminary notice of a mechanics lien to a claimant? - (answer) To
inform concerned parties that the property may be subject to liens arising out of contract.
What is the brokers relationship to the customer? - (answer) The broker is the agent to the customer
(customer employs the broker).
What is the agents (salesperson) relationship to the broker? - (answer) The salesperson is the agent to
the broker (the broker gives the salesperson authority to act on his/her behalf).
A Home Equity Line of Credit is - (answer) An Open Ended Mortgage
An Open Ended Mortgage is - (answer) A type of note that permits the borrower to obtain more
money at a future date under the same deed of trust.
Zoning is an example of - (answer) Police power
Local jurisdictions have the authority to divide land into districts and impose land use regulations to
promote health, safety, and welfare of the public--this is known as - (answer) Zoning
When can restrictions placed on a deed be removed? - (answer) Never
What is the only restriction placed on a deed that is considered illegal? - (answer) Race restrictions
Is an option contract bilateral or unilateral? - (answer) Unilateral
, CALIFORNIA REAL ESTATE EXAM 2023-2024 MULTIPLE CHOICE EXAM 500 QUESTIONS AND CORRECT
DETAILED ANSWERS
What does an option contract NOT do? - (answer) Create a legal interest in a property
If a buyer has defaulted on on an original land contract which had been recorded, this would result in a
defective title, requiring legal action to clear the title. This is called - (answer) a Quiet Title Action.
A promise is also known as a - (answer) Covenant
A court action is mandatory to evict a delinquent tenant. This process is called - (answer) Unlawful
Detainer
A verbal contract is considered - (answer) Valid
California Statute of Frauds require a real estate agreement to be - (answer) In writing
What kind of listing agreement offers a listing broker to receive a commission regardless of who is the
"procuring" cause? Is also considered the greatest protection for the agent. - (answer) Exclusive right to
sell
What does a deed NOT need to be considered valid? - (answer) A date
A valid deed must have 3 components - (answer) Be in writing, be signed by the grantor, and delivered
to the grantee
For a deed to be recorded, it must - (answer) Be acknowledged (notarized)
A chattel - (answer) Is most accurately described as personal property
Which is NOT corporeal property? A fee simple estate, a leasehold, an easement, or a fixture? -
(answer) An easement
