COMBINED - CA REAL ESTATE EXAM
2025 QUESTIONS & UPDATED
ANSWERS PASSED ALREADY
GRADED A+
Which of the following is the best example of investment leverage?
a. Buying multiple properties at once
b. Buying properties on a systematic basis
c. Financing most of an investment and putting very little cash in
d. Paying all cash for an investment to avoid interest payments - CORRECT ANSWER
c. Financing most of an investment and putting very little cash in
An investor is analyzing a three-unit property by looking at its ability to produce future
income. Which of the following would most likely be used to determine this value?
a. Effective gross income
b. Gross income multiplier
c. Gross rent multiplier
d. Potential gross income - CORRECT ANSWER c. Gross rent multiplier
Charlie, who owns and leases out a commercial building, pays taxes, maintenance, and
insurance on the building. What type of lease agreement does Charlie have with his
tenants?
a. Gross
b. Net
c. Percentage
d. Triple net - CORRECT ANSWER c. Percentage
Which of the following duties is part of the licensee's role in a residential lease
transaction for a tenant client?
a. Collect the tenant's first month's rent and security deposit and present it to the owner
after the lease agreement has been signed.
b. Determine what clauses should be included in the lease agreement and the monthly
lease amount.
c. Market the property that is being leased.
, d. Represent the client's interest in all negotiations and transactions regarding the
property lease. - CORRECT ANSWER d. Represent the client's interest in all
negotiations and transactions regarding the property lease.
Your buyer client, Percy, needs to obtain financing to buy his dream house. What's his
first step?
a. Complete a loan application.
b. Obtain a pre-qualification letter.
c. Sign a purchase agreement.
d. Write an offer. - CORRECT ANSWER b. Obtain a pre-qualification letter.
Blane owns a barbershop. He polls his customers and learns that they tend to come
from less than a mile away. That's probably because Blane's store is in this type of
location.
a. Factory outlet mall
b. Neighborhood center
c. Regional shopping center
d. Strip mall - CORRECT ANSWER d. Strip mall
Sarah is a property manager who needs to determine the amount of coverage for
property insurance for her owner/client. If she uses the cost to purchase the property
today as the basis, she would be using the __________method.
a. Blanket coverage
b. Cash value
c. Depreciation
d. Replacement cost - CORRECT ANSWER d. Replacement cost
When a deed of trust is used as a security instrument, who holds the deed and the
note?
a. The lender holds the deed and the note
b. The lender holds the deed, and the trustee holds the note.
c. The trustee holds the deed, and the lender holds the note.
d. The trustee holds the mortgage and the note. - CORRECT ANSWER c. The trustee
holds the deed, and the lender holds the note.
SARA is an amendment to which environmental act?
a. CERCLA
b. Clean Air Act
c. Clean Water Act
d. Environmental Responsibility Act - CORRECT ANSWER a. CERCLA
Mick focuses on originating mortgage loans at a company that has in-house loan
processors and underwriters. The options he offers consumers are limited to the
products his company offers. What's Mick's position?
a. Mortgage banker
b. Mortgage broker
,c. Mortgage servicer
d. Real estate investor - CORRECT ANSWER a. Mortgage banker
Who is responsible for obtaining evidence of title and title insurance?
a. The buyer
b. The lender
c. The seller
d. Title insurance representative - CORRECT ANSWER a. The buyer
Tom, the seller, is financing his buyer Jerry's mortgage. Jerry will give this mortgage to
Tom, which will go toward the purchase price. Jerry will use this mortgage for his down
payment. What kind of mortgage is this?
a. Package mortgage
b. Purchase money mortgage
c. Reverse mortgage
d. Wrap-around mortgage - CORRECT ANSWER b. Purchase money mortgage
The smallest property on the block is also priced lower than any others, but the higher-
priced properties that surround it help to drive the property's market value up. What
economic principle is at work here?
a. Anticipation
b. Contribution
c. Progression
d. Regression - CORRECT ANSWER c. Progression
Danette hasn't paid the first quarter water bill on her property that was due on April 1.
She's closing with her buyer, Jason, on April 1. What type of expense is this and how
will it appear on the settlement statement?
a. This is an accrued expense and will appear as a buyer debit and a seller credit.
b. This is an accrued expense and will appear as a seller debit and a buyer credit.
c. This is a prepaid expense and will appear as a buyer debit and a seller credit.
d. This is a prepaid expense and will appear as a seller debit and a buyer credit. -
CORRECT ANSWER b. This is an accrued expense and will appear as a seller debit
and a buyer credit.
Roberta worked with an attorney to prepare her will. What kind of will is this?
a. Descent
b. Functional
c. Holographic
d. Statutory - CORRECT ANSWER d. Statutory
Being a retail property manager includes responsibility for ______.
, a. Establishing some leases as percentage leases where a base rent per square foot is
augmented by a percentage share in the tenant's gross
b. Leading the construction of large office buildings and warehouses
c. Negotiating with the homeowners association
d. Understanding residential fair housing rules - CORRECT ANSWER a. Establishing
some leases as percentage leases where a base rent
With this type of commercial lease, when the lease expires, any improvement made to
the property by the tenant belongs to the landowner.
a. Full service lease
b. Ground lease
c. Oil or gas lease
d. Proprietary lease - CORRECT ANSWER b. Ground lease
Which party at closing requires the property to be free and clear of encumbrances and
requires title insurance and hazard insurance?
a. The broker
b. The lender
c. The seller
d. The title insurance rep - CORRECT ANSWER b. The lender
In addition to the property address, the lease agreement start and end dates, and the
monthly rent and deposit amounts, which of the following should all commercial leases
contain?
a. A complete list of the other tenants and their rental rates
b. A copy of the tenant's credit report
c. A detailed description of the property
d. The purpose for which the space is being rented - CORRECT ANSWER d. The
purpose for which the space is being rented
Joanie sees herself as a mover and shaker, a leader, someone who jumps in and gets
things done. She likes to be involved and in charge. When she decides to start investing
in real estate, which of these choices is she most likely to select as her investment
vehicle?
a. A multi-family residential income property
b. A real estate investment trust
c. A real estate mortgage investment conduit
d. A real estate syndicate membership - CORRECT ANSWER a. A multi-family
residential income property
With the cost approach to value, what is the replacement cost?
a. Cost of the materials used in construction
b. Cost to build a functionally equivalent improvement
c. Cost to build an exact replica of the subject, with the same materials and deficiencies
2025 QUESTIONS & UPDATED
ANSWERS PASSED ALREADY
GRADED A+
Which of the following is the best example of investment leverage?
a. Buying multiple properties at once
b. Buying properties on a systematic basis
c. Financing most of an investment and putting very little cash in
d. Paying all cash for an investment to avoid interest payments - CORRECT ANSWER
c. Financing most of an investment and putting very little cash in
An investor is analyzing a three-unit property by looking at its ability to produce future
income. Which of the following would most likely be used to determine this value?
a. Effective gross income
b. Gross income multiplier
c. Gross rent multiplier
d. Potential gross income - CORRECT ANSWER c. Gross rent multiplier
Charlie, who owns and leases out a commercial building, pays taxes, maintenance, and
insurance on the building. What type of lease agreement does Charlie have with his
tenants?
a. Gross
b. Net
c. Percentage
d. Triple net - CORRECT ANSWER c. Percentage
Which of the following duties is part of the licensee's role in a residential lease
transaction for a tenant client?
a. Collect the tenant's first month's rent and security deposit and present it to the owner
after the lease agreement has been signed.
b. Determine what clauses should be included in the lease agreement and the monthly
lease amount.
c. Market the property that is being leased.
, d. Represent the client's interest in all negotiations and transactions regarding the
property lease. - CORRECT ANSWER d. Represent the client's interest in all
negotiations and transactions regarding the property lease.
Your buyer client, Percy, needs to obtain financing to buy his dream house. What's his
first step?
a. Complete a loan application.
b. Obtain a pre-qualification letter.
c. Sign a purchase agreement.
d. Write an offer. - CORRECT ANSWER b. Obtain a pre-qualification letter.
Blane owns a barbershop. He polls his customers and learns that they tend to come
from less than a mile away. That's probably because Blane's store is in this type of
location.
a. Factory outlet mall
b. Neighborhood center
c. Regional shopping center
d. Strip mall - CORRECT ANSWER d. Strip mall
Sarah is a property manager who needs to determine the amount of coverage for
property insurance for her owner/client. If she uses the cost to purchase the property
today as the basis, she would be using the __________method.
a. Blanket coverage
b. Cash value
c. Depreciation
d. Replacement cost - CORRECT ANSWER d. Replacement cost
When a deed of trust is used as a security instrument, who holds the deed and the
note?
a. The lender holds the deed and the note
b. The lender holds the deed, and the trustee holds the note.
c. The trustee holds the deed, and the lender holds the note.
d. The trustee holds the mortgage and the note. - CORRECT ANSWER c. The trustee
holds the deed, and the lender holds the note.
SARA is an amendment to which environmental act?
a. CERCLA
b. Clean Air Act
c. Clean Water Act
d. Environmental Responsibility Act - CORRECT ANSWER a. CERCLA
Mick focuses on originating mortgage loans at a company that has in-house loan
processors and underwriters. The options he offers consumers are limited to the
products his company offers. What's Mick's position?
a. Mortgage banker
b. Mortgage broker
,c. Mortgage servicer
d. Real estate investor - CORRECT ANSWER a. Mortgage banker
Who is responsible for obtaining evidence of title and title insurance?
a. The buyer
b. The lender
c. The seller
d. Title insurance representative - CORRECT ANSWER a. The buyer
Tom, the seller, is financing his buyer Jerry's mortgage. Jerry will give this mortgage to
Tom, which will go toward the purchase price. Jerry will use this mortgage for his down
payment. What kind of mortgage is this?
a. Package mortgage
b. Purchase money mortgage
c. Reverse mortgage
d. Wrap-around mortgage - CORRECT ANSWER b. Purchase money mortgage
The smallest property on the block is also priced lower than any others, but the higher-
priced properties that surround it help to drive the property's market value up. What
economic principle is at work here?
a. Anticipation
b. Contribution
c. Progression
d. Regression - CORRECT ANSWER c. Progression
Danette hasn't paid the first quarter water bill on her property that was due on April 1.
She's closing with her buyer, Jason, on April 1. What type of expense is this and how
will it appear on the settlement statement?
a. This is an accrued expense and will appear as a buyer debit and a seller credit.
b. This is an accrued expense and will appear as a seller debit and a buyer credit.
c. This is a prepaid expense and will appear as a buyer debit and a seller credit.
d. This is a prepaid expense and will appear as a seller debit and a buyer credit. -
CORRECT ANSWER b. This is an accrued expense and will appear as a seller debit
and a buyer credit.
Roberta worked with an attorney to prepare her will. What kind of will is this?
a. Descent
b. Functional
c. Holographic
d. Statutory - CORRECT ANSWER d. Statutory
Being a retail property manager includes responsibility for ______.
, a. Establishing some leases as percentage leases where a base rent per square foot is
augmented by a percentage share in the tenant's gross
b. Leading the construction of large office buildings and warehouses
c. Negotiating with the homeowners association
d. Understanding residential fair housing rules - CORRECT ANSWER a. Establishing
some leases as percentage leases where a base rent
With this type of commercial lease, when the lease expires, any improvement made to
the property by the tenant belongs to the landowner.
a. Full service lease
b. Ground lease
c. Oil or gas lease
d. Proprietary lease - CORRECT ANSWER b. Ground lease
Which party at closing requires the property to be free and clear of encumbrances and
requires title insurance and hazard insurance?
a. The broker
b. The lender
c. The seller
d. The title insurance rep - CORRECT ANSWER b. The lender
In addition to the property address, the lease agreement start and end dates, and the
monthly rent and deposit amounts, which of the following should all commercial leases
contain?
a. A complete list of the other tenants and their rental rates
b. A copy of the tenant's credit report
c. A detailed description of the property
d. The purpose for which the space is being rented - CORRECT ANSWER d. The
purpose for which the space is being rented
Joanie sees herself as a mover and shaker, a leader, someone who jumps in and gets
things done. She likes to be involved and in charge. When she decides to start investing
in real estate, which of these choices is she most likely to select as her investment
vehicle?
a. A multi-family residential income property
b. A real estate investment trust
c. A real estate mortgage investment conduit
d. A real estate syndicate membership - CORRECT ANSWER a. A multi-family
residential income property
With the cost approach to value, what is the replacement cost?
a. Cost of the materials used in construction
b. Cost to build a functionally equivalent improvement
c. Cost to build an exact replica of the subject, with the same materials and deficiencies
