California Real Estate License Exam with complete solutions 2024_202
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Course
California Real Estate
Institution
California Real Estate
1.1. A title was recorded for a parcel of real property vested in the name of Johan Wilson, a single woman. After her marriage to William Roberts, she executed a deed to the property only in the name of Johan Roberts, a married woman. The discrepancy in the grantors name is:
A. Valid if William ...
California Real Estate License Exam with
complete solutions 2024/2025
1.A title was recorded for a parcel of real property vested in the name of Johan
Wilson, a single woman. After her marriage to William Roberts, she executed a
deed to the property only in the name of Johan Roberts, a married woman. The
discrepancy in the grantors name is:
A. Valid if William Roberts agrees to it
B. A defect on title that may cause title to be vested as tenants in common
C. Immaterial if the property is properly described
D. A defect which may cause a cloud on the title - ANSWER- A defect which may
cause a cloud on the title.
1.2. Which contract would be the most difficult for a buyer to obtain financing?
A. Land Contract
B. FHA
C. VA
D. Conventional - ANSWER- Land Contract
1.3. When a broker runs an advertisement, the broker must disclose:
A. Last name of the broker
B. Name of the broker
C. Name of broker and salesperson
D. Name of the salesperson - ANSWER- Name of the broker
,1.4. Following in-house sales are true, except:
A. The listing agent can act as a dual agent
B. The listing broker can act as a buyers agent only
C. The broker may purchase the property himself
D. The seller may represent the seller only - ANSWER- The seller may represent
the seller only
1.5. The Federal Housing Administration (FHA) was created primarily:
A. To provide insurance for home loans in the secondary market
B. To insure the borrower
C. To provide insurance for home loans made by approved lender
D. To improve the economy for mortgage bankers - ANSWER- To provide
insurance for home loans made by approved lenders
1.6. Which of the following loans on a home would probably be made without
requiring a down payment from the borrower?
A. VA Loan
B. CAL-VET
C. FHA
D. Conventional - ANSWER- VA Loan
1.7. A person who wishes to purchase a home using the Cal-Vet program would
send his application to:
A. Department of Real Estate
B. Real Estate Commissioner
C. Department of Veterans Affairs
D. Veterans Administration - ANSWER- Department of Veterans Affairs
1.8. The item that would appear on the debit side of a buyer's closing statement
would be:
A. Purchase Price
B. Prepaid Rents
C. Mortgage Insurance
D. Down Payment - ANSWER- Purchase Price
1.9. When dealing with the public, a broker may not:
,A. Disclose any of his duties to other agents
B. Remain silent concerning material facts about a property known only by
himself
C. Reject a listing if it is discriminatory or overpriced for minorities
D. All of the above - ANSWER- Remain silent concerning material facts about a
property known only by himself
1.10. Which of the following is the reason that a real estate agent must keep his
principal informed of material facts concerning a pending real estate transaction?
A. When the agent is a fiduciary
B. When it's printed on the purchase agreement
C. When the agent concerned with the commission which seller is paying
D. When the broker works only for the seller - ANSWER- When the agent is a
fiduciary
1.11. A buyer relied upon the fraudulent statement of the seller's agent and was
damaged. The seller was unaware of the agent's false statement, and he tried to
enforce the agreement. The buyer:
A. Could sue the seller for fraud
B. Could sue the seller's agent for fraud
C. Has sufficient grounds for recission
D. Could do any of the above - ANSWER- Could sue the seller for fraud, could sue
the seller's agent for fraud, has sufficient grounds for recission
1.12. Lenders know that the lower the loan-to-value ratio, the higher the:
A. Interest Rate
B. Risk
C. Loan to Value Ratio
D. Equity - ANSWER- Equity
1.13. An offer to purchase real estate could be terminated in all of the following
ways, except;
A. Acceptance with a counter offer to the offeror
B. Failure to communicate notice of revocation before the other party has
communicated his acceptance
C. Death of offeree or offeror
, D. Expiration of time to accept an offer - ANSWER- Failure to communicate notice
of revocation before the other party has communicated his acceptance
1.14. In which of the following contract will apply if one of the parties agrees not
to revoke an offer for a certain period of time:
A. Exclusive right to sell listing
B. Exclusive agency listing
C. Net listing
D. An option - ANSWER- Option
1.15. For Federal Tax purposes, the capital expenditures for improvements are:
A. A percentage depreciated
B. Subtracted from the cost basis of the property
C. Added to the cost basis of the property and depreciated
D. Cannot be depreciated - ANSWER- Added to the cost basis of the property and
depreciated
1.16. A property sold for $150,000 in a county which had established a
documentary transfer tax rate of $.55 for each $500. Of the purchase price of
$150,000, only $125,000 was subjected to tax. Which of the following is nearest to
the tax amount that would have been paid?
A. $165
B. $138
C. $27
D. $139 - ANSWER- $125, = 250
$.55 x 250 = $137.5
1.17. Leland uses an 8% capitalization rate for a 40-unit apartment building that
generates $174,000 net income. Which of the following is the most appropriate
value of this property?
A. $1,400,000
B. $1,566,000
C. $2,175,000
D. $2,170,000 - ANSWER- $174,000 / .08 = $2,175,000
1.18. A broker is negotiating a 25-year commercial lease at a strait annual rental
of $30,000. The broker is to receive a compensation for negotiating this lease as
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