CALIFORNIA REAL ESTATE BROKER EXAM ,
QUESTIONS AND CORRECT ANSWERS (VERIFIED
ANSWERS) PLUS RATIONALES 2026 Q&A |
INSTANT DOWNLOAD PDF
1. A broker may legally share a commission with:
A) A licensed salesperson from another state
B) An unlicensed friend
C) Another licensed California broker
D) Any client
Answer: C) Another licensed California broker
Rationale: Only licensed brokers can legally share commissions. Sharing
with unlicensed individuals is illegal.
2. A real estate broker must retain records of real estate transactions
for at least:
A) 1 year
B) 2 years
C) 3 years
D) 5 years
Answer: C) 3 years
Rationale: California law requires brokers to maintain transaction
records for 3 years from the date of closing.
3. The Real Estate Commissioner has the authority to:
,A) Create property tax law
B) Issue real estate licenses
C) Represent clients in court
D) Set mortgage rates
Answer: B) Issue real estate licenses
Rationale: The Commissioner regulates licensing, enforces real estate
law, and protects the public.
4. When a broker acts as a dual agent, the broker must:
A) Represent only the buyer
B) Represent only the seller
C) Obtain written consent from both parties
D) Split the commission equally
Answer: C) Obtain written consent from both parties
Rationale: Dual agency requires full disclosure and written consent from
both the buyer and the seller.
5. A real estate license is required for:
A) Selling one’s own property
B) Managing your own rental units
C) Receiving compensation for selling another person’s property
D) Buying a property for personal use
Answer: C) Receiving compensation for selling another person’s
property
Rationale: Licenses are required whenever you receive compensation for
assisting in real estate transactions.
,6. A broker’s trust fund account must:
A) Be insured by the FDIC
B) Be in a separate bank account from personal funds
C) Include the broker’s personal money
D) Be in cash only
Answer: B) Be in a separate bank account from personal funds
Rationale: Trust funds must be held separate from the broker’s own
money to avoid commingling.
7. An exclusive right-to-sell listing guarantees:
A) The seller will sell the property
B) The broker will receive a commission if the property sells, regardless
of who finds the buyer
C) The buyer will get the lowest price
D) No commission is due unless the broker finds the buyer
Answer: B) The broker will receive a commission if the property sells,
regardless of who finds the buyer
Rationale: Exclusive right-to-sell agreements protect the broker’s
commission regardless of the source of the buyer.
8. Which type of agency relationship is automatically created when a
broker lists a property?
A) Buyer’s agency
B) Seller’s agency
C) Dual agency
D) Designated agency
, Answer: B) Seller’s agency
Rationale: Listing a property establishes a fiduciary relationship with the
seller.
9. A property manager acting for the owner is considered:
A) An agent
B) A principal
C) A dual agent
D) A client
Answer: A) An agent
Rationale: The property manager acts on behalf of the owner, making
them an agent.
10. Commingling of trust funds occurs when:
A) The broker deposits client funds into the broker’s personal account
B) The broker deposits funds into a trust account
C) Funds are held for more than 30 days
D) The broker disburses funds according to instructions
Answer: A) The broker deposits client funds into the broker’s personal
account
Rationale: Commingling is illegal and occurs when personal and client
funds are mixed.
11. The Real Estate Law that governs California real estate licenses is
the:
QUESTIONS AND CORRECT ANSWERS (VERIFIED
ANSWERS) PLUS RATIONALES 2026 Q&A |
INSTANT DOWNLOAD PDF
1. A broker may legally share a commission with:
A) A licensed salesperson from another state
B) An unlicensed friend
C) Another licensed California broker
D) Any client
Answer: C) Another licensed California broker
Rationale: Only licensed brokers can legally share commissions. Sharing
with unlicensed individuals is illegal.
2. A real estate broker must retain records of real estate transactions
for at least:
A) 1 year
B) 2 years
C) 3 years
D) 5 years
Answer: C) 3 years
Rationale: California law requires brokers to maintain transaction
records for 3 years from the date of closing.
3. The Real Estate Commissioner has the authority to:
,A) Create property tax law
B) Issue real estate licenses
C) Represent clients in court
D) Set mortgage rates
Answer: B) Issue real estate licenses
Rationale: The Commissioner regulates licensing, enforces real estate
law, and protects the public.
4. When a broker acts as a dual agent, the broker must:
A) Represent only the buyer
B) Represent only the seller
C) Obtain written consent from both parties
D) Split the commission equally
Answer: C) Obtain written consent from both parties
Rationale: Dual agency requires full disclosure and written consent from
both the buyer and the seller.
5. A real estate license is required for:
A) Selling one’s own property
B) Managing your own rental units
C) Receiving compensation for selling another person’s property
D) Buying a property for personal use
Answer: C) Receiving compensation for selling another person’s
property
Rationale: Licenses are required whenever you receive compensation for
assisting in real estate transactions.
,6. A broker’s trust fund account must:
A) Be insured by the FDIC
B) Be in a separate bank account from personal funds
C) Include the broker’s personal money
D) Be in cash only
Answer: B) Be in a separate bank account from personal funds
Rationale: Trust funds must be held separate from the broker’s own
money to avoid commingling.
7. An exclusive right-to-sell listing guarantees:
A) The seller will sell the property
B) The broker will receive a commission if the property sells, regardless
of who finds the buyer
C) The buyer will get the lowest price
D) No commission is due unless the broker finds the buyer
Answer: B) The broker will receive a commission if the property sells,
regardless of who finds the buyer
Rationale: Exclusive right-to-sell agreements protect the broker’s
commission regardless of the source of the buyer.
8. Which type of agency relationship is automatically created when a
broker lists a property?
A) Buyer’s agency
B) Seller’s agency
C) Dual agency
D) Designated agency
, Answer: B) Seller’s agency
Rationale: Listing a property establishes a fiduciary relationship with the
seller.
9. A property manager acting for the owner is considered:
A) An agent
B) A principal
C) A dual agent
D) A client
Answer: A) An agent
Rationale: The property manager acts on behalf of the owner, making
them an agent.
10. Commingling of trust funds occurs when:
A) The broker deposits client funds into the broker’s personal account
B) The broker deposits funds into a trust account
C) Funds are held for more than 30 days
D) The broker disburses funds according to instructions
Answer: A) The broker deposits client funds into the broker’s personal
account
Rationale: Commingling is illegal and occurs when personal and client
funds are mixed.
11. The Real Estate Law that governs California real estate licenses is
the:
