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Real Estate Certification| CA Borad
Exam| 2025/2026| Verified Q&A
A homeowner discovers that a neighbor has built a fence that extends into their property.
Evaluate the homeowner’s legal options and the likely steps to resolve this issue.
They can request a survey to confirm the boundary and then negotiate with the neighbor to
remove or relocate the fence. If negotiations fail, they can pursue a legal claim for encroachment.
A seller offers to sell a property “as is,” and the buyer later finds undisclosed water damage.
Analyze the buyer’s recourse and what protections they could have sought during the transaction.
The buyer might pursue legal action for non-disclosure if the seller intentionally withheld
information. A thorough inspection and including contingencies in the contract could have
provided protection.
During a closing process, a title defect is discovered. Explain the rationale behind obtaining title
insurance and how it protects the buyer in this situation.
Title insurance covers financial losses related to title defects, ensuring the buyer doesn’t lose
money or the property due to unresolved claims.
A couple purchasing their first home is unsure whether to take title as joint tenants or tenants in
common. Assess the differences and implications of each option.
Joint tenancy includes the right of survivorship, meaning the property goes to the surviving
owner. Tenants in common allow for separate shares, which can be willed to others.
, 2
A property is sold at a tax auction due to unpaid property taxes. Analyze how this affects the
original owner and what steps they could have taken to prevent the sale.
The original owner loses their ownership rights. They could have avoided this by paying
delinquent taxes, negotiating a payment plan, or redeeming the property during the redemption
period.
A landlord enters into a lease agreement with a tenant for a residential property. Propose a
solution to prevent disputes over property condition during the lease period.
Conduct a walkthrough with both parties, document the property’s condition with photos,
and include a detailed checklist in the lease agreement.
A commercial property is sold, but the buyer later discovers an easement that restricts
development plans. Explain how this could have been avoided during due diligence.
A title search and review of public records would reveal the easement, allowing the buyer to
negotiate terms or reconsider the purchase.
A real estate investor plans to purchase a multi-unit property but needs to calculate its
profitability. Analyze the key financial metrics they should evaluate.
Metrics include net operating income (NOI), capitalization rate (cap rate), cash-on-cash
return, and gross rent multiplier (GRM).
A tenant files a lawsuit claiming their landlord breached the implied warranty of habitability.
Evaluate what this warranty covers and its potential impact on the landlord.
, 3
It covers the tenant’s right to a livable property. A landlord who fails to maintain basic safety
and health standards may face legal penalties and financial losses.
A property owner dies without a will, and multiple heirs claim ownership. Explain the process of
intestate succession and its impact on the distribution of the property.
Intestate succession follows state laws, dividing the property among heirs based on their
relationship to the deceased. This may lead to disputes and delays.
A real estate agent is representing both the buyer and seller in a transaction. Assess the potential
conflicts of interest and how they can be mitigated.
Dual agency can lead to conflicts of interest. It should be disclosed in writing, and both
parties must consent. The agent should remain neutral and avoid favoring either party.
A seller backs out of a signed purchase agreement, claiming they found a better offer. Evaluate
the buyer’s legal options in this situation.
The buyer can sue for specific performance to enforce the contract or seek damages for
breach of contract.
A homeowner wants to refinance their mortgage but has a low credit score. Propose alternative
financing options they could explore.
Options include working with credit unions, exploring FHA refinance loans, or improving
their credit score before reapplying.
, 4
An investor purchases a property with tenants who have existing leases. Analyze the investor’s
obligations toward these tenants.
The new owner must honor the terms of existing leases, including rent amounts and duration,
until the leases expire.
A buyer notices discrepancies between the property’s advertised square footage and the
appraiser’s measurements. Assess the implications and how this could impact the transaction.
It may affect the property’s value and the buyer’s decision to proceed. They can negotiate a
price adjustment or reconsider the purchase.
A property owner grants an easement for a utility company to run power lines. Evaluate how this
affects the owner’s use of the property.
The owner retains ownership but must allow the utility company access to the area specified
in the easement, potentially limiting certain uses.
A buyer agrees to purchase a home but later discovers zoning restrictions that conflict with their
intended use. Explain how this issue could have been avoided.
Researching zoning laws and consulting with local authorities before closing would reveal
any restrictions.
A lender forecloses on a property due to non-payment. Analyze the timeline and process the
borrower typically faces before losing the property.
Real Estate Certification| CA Borad
Exam| 2025/2026| Verified Q&A
A homeowner discovers that a neighbor has built a fence that extends into their property.
Evaluate the homeowner’s legal options and the likely steps to resolve this issue.
They can request a survey to confirm the boundary and then negotiate with the neighbor to
remove or relocate the fence. If negotiations fail, they can pursue a legal claim for encroachment.
A seller offers to sell a property “as is,” and the buyer later finds undisclosed water damage.
Analyze the buyer’s recourse and what protections they could have sought during the transaction.
The buyer might pursue legal action for non-disclosure if the seller intentionally withheld
information. A thorough inspection and including contingencies in the contract could have
provided protection.
During a closing process, a title defect is discovered. Explain the rationale behind obtaining title
insurance and how it protects the buyer in this situation.
Title insurance covers financial losses related to title defects, ensuring the buyer doesn’t lose
money or the property due to unresolved claims.
A couple purchasing their first home is unsure whether to take title as joint tenants or tenants in
common. Assess the differences and implications of each option.
Joint tenancy includes the right of survivorship, meaning the property goes to the surviving
owner. Tenants in common allow for separate shares, which can be willed to others.
, 2
A property is sold at a tax auction due to unpaid property taxes. Analyze how this affects the
original owner and what steps they could have taken to prevent the sale.
The original owner loses their ownership rights. They could have avoided this by paying
delinquent taxes, negotiating a payment plan, or redeeming the property during the redemption
period.
A landlord enters into a lease agreement with a tenant for a residential property. Propose a
solution to prevent disputes over property condition during the lease period.
Conduct a walkthrough with both parties, document the property’s condition with photos,
and include a detailed checklist in the lease agreement.
A commercial property is sold, but the buyer later discovers an easement that restricts
development plans. Explain how this could have been avoided during due diligence.
A title search and review of public records would reveal the easement, allowing the buyer to
negotiate terms or reconsider the purchase.
A real estate investor plans to purchase a multi-unit property but needs to calculate its
profitability. Analyze the key financial metrics they should evaluate.
Metrics include net operating income (NOI), capitalization rate (cap rate), cash-on-cash
return, and gross rent multiplier (GRM).
A tenant files a lawsuit claiming their landlord breached the implied warranty of habitability.
Evaluate what this warranty covers and its potential impact on the landlord.
, 3
It covers the tenant’s right to a livable property. A landlord who fails to maintain basic safety
and health standards may face legal penalties and financial losses.
A property owner dies without a will, and multiple heirs claim ownership. Explain the process of
intestate succession and its impact on the distribution of the property.
Intestate succession follows state laws, dividing the property among heirs based on their
relationship to the deceased. This may lead to disputes and delays.
A real estate agent is representing both the buyer and seller in a transaction. Assess the potential
conflicts of interest and how they can be mitigated.
Dual agency can lead to conflicts of interest. It should be disclosed in writing, and both
parties must consent. The agent should remain neutral and avoid favoring either party.
A seller backs out of a signed purchase agreement, claiming they found a better offer. Evaluate
the buyer’s legal options in this situation.
The buyer can sue for specific performance to enforce the contract or seek damages for
breach of contract.
A homeowner wants to refinance their mortgage but has a low credit score. Propose alternative
financing options they could explore.
Options include working with credit unions, exploring FHA refinance loans, or improving
their credit score before reapplying.
, 4
An investor purchases a property with tenants who have existing leases. Analyze the investor’s
obligations toward these tenants.
The new owner must honor the terms of existing leases, including rent amounts and duration,
until the leases expire.
A buyer notices discrepancies between the property’s advertised square footage and the
appraiser’s measurements. Assess the implications and how this could impact the transaction.
It may affect the property’s value and the buyer’s decision to proceed. They can negotiate a
price adjustment or reconsider the purchase.
A property owner grants an easement for a utility company to run power lines. Evaluate how this
affects the owner’s use of the property.
The owner retains ownership but must allow the utility company access to the area specified
in the easement, potentially limiting certain uses.
A buyer agrees to purchase a home but later discovers zoning restrictions that conflict with their
intended use. Explain how this issue could have been avoided.
Researching zoning laws and consulting with local authorities before closing would reveal
any restrictions.
A lender forecloses on a property due to non-payment. Analyze the timeline and process the
borrower typically faces before losing the property.
