California Real Estate Practice Exam 2
Questions And Answers With Verified
Solutions Already Passed Latest
Updated 2024
1.An escrow closed on May 16, 2002. Property taxes for the fiscal year 2002-03
are: (A) Seller's personal responsibility; (B) Buyer's personal responsibility; (C) A
lien on the property; (D) None of the above - ANSWER✔✔c
2.On June 10, a prospective buyer gave broker and signed the usual form of an
offer to deposit to a purchase property. The deposit form included the statement,
This offer is irrevocable for five days. On June 11, and before the offer had been
accepted by the seller, the buyer contacted the broker and withdrew his offer and
demanded the return of his deposit. The broker: (A) Has until June 16 to obtain the
seller's the acceptance; (B) Has until June 15 to obtain the seller's acceptance; (C)
Must retur deposit to the buyer as demanded; (D) Must place the deposit in a
neutral escrow until the five day period expires - ANSWER✔✔c
3. The lessee of an apartment and the owner of a condominium have many things
in common. Which of the following is true for both? They each hold: (A) A fee
interest; (B) An estate in real property; (C) A less than freehold estate; (D) An
estate of inheritance - ANSWER✔✔b
4. In a contingency sale, if the contingency cannot by met by the buyers, the
deposit: (A) s refunded to the buyers; (B) The buyers get 1\2 the deposit back, the
sellers keep 1\2; (C) The sellers are entitled to the full deposit; (D) The broker
keeps the deposit as damages. - ANSWER✔✔a
5.Who is responsible for the disclosure of Mello Roos bonds against the property:
(A) Seller, (B) Seller's agent (C) Buyer's agent; (D) Both buyer and seller's agent -
ANSWER✔✔a
,6. Ron owns a single family home which rents for $$00 per month. A home across
the street rents of 5690 month and Ron applies the same gross rent multiplier to his
home as per recently sold for $78,000. If was used on the home across, what would
be the value of Ron's home: (A) $50,000; (B) $67,800; (C) $69,565; (D) $70,909 -
ANSWER✔✔b
7.When a real estate licensee handles the sale of a personal property mobile home,
the agent must give written notice to the Department of Housing and Community
Development within how many days? (A) 3 calendar days; (B) 5 business days;
(C) 10 calendar days; (D) 10 business days - ANSWER✔✔c
8. The presence of a corporate seal on a deed: (A) Means that consideration was
paid; (B) Implies that the proper or authorized person signed the deed; (C) Would
indicate that title is being conveyed to a corporation; (D) Is needed for recording
this instrument - ANSWER✔✔b
9. of the purchase agreement is: (A) The date the buyer gave the deposit, (B) The
date the The date buyer signed the offer; (C) The date the seller accepted the
buyer's offer, (D) The date the buyer receives proper communication of the seller's
acceptance - ANSWER✔✔d
10. A prospective purchaser is interested in buying a lot in the mountains from a
subdivider who is not a real estate licensee. The buyer wishes to know about sewer
assessments, liens, and utilities to his lot, blanket encumbrances, and maintenance
of streets. The source that would provide all of this information is the: (A) County
engineer, (B) Real estate Commissioner; (C) County planning director; (D)
Subdivider - ANSWER✔✔b
11. If a licensed real estate broker wishes to operate an office under a fictitious
business name, the broker must: (A) File the name with the county recorder in the
,county of the place of business; (B) Publish the name in the newspaper as required
by law, (C) Have a license issued by the Department of Real Estate after the name
has been approved by the Commissioner; (D) Do all of the above - ANSWER✔✔d
12. A broker took an exclusive listing to negotiate a loan of $2,000 for a borrower.
The listing may not run for longer than: (A) 15 days; (B) 30 days; (C) 45 days; (D)
60 days - ANSWER✔✔c
13. An owner of a single family dwelling has leased the house for two years. One
day she drives by the rental and notices a painter is painting the house. The owner
did not hire the painter. In order to protect herself from a mechanic's lien, the
owner should file and post a: (A) Notice of Completion; (B) Notice of Cessation;
(C) Notice to Quit; (D) Notice of Non-responsibility - ANSWER✔✔d
14. A buyer gave the broker a deposit in connection with a purchase offer. The
buyer changed his mind before the offer was the agent do with the deposit: (A)
Give it all back to the accepted. What should Give buyer; (B) Keep part of it and
give the rest back to the buyer; (C) Place it in a trust account; (D) it to the seller as
liquidated damages - ANSWER✔✔a
15. When an agent is accused of "puffing," the agent might be guilty of which of
the following: (A) Trying to convince a potential seller of his wide popularity
among local people; (B) Convincing the appraiser to assign higher value the
property than is justified by the comparable recent sales in the area; (C) to the
features of the property or neighborhood when showing property to prospective
Exaggerating buyers; (D) Convincing a seller to offer a higher commission than is
customary for that type of property - ANSWER✔✔c
16. The Franchise Tax Board does not require a buyer to withhold a portion of the
sales price from the seller when: (A) The property is residential; (B) The seller
, refuses to pay the withholding; (C) It was the seller's principal residence or the
property is less than $100,000; (D) None of the above - ANSWER✔✔c
17. An agent becomes the agent of the seller when both the seller and the agent
sign: (A) Purchase agreement; (B) Transfer Disclosure Statement; (C) Agency
Disclosure Statement; (D) The Listing Agreement - ANSWER✔✔d
18. Which of the following is true concerning a "buyer agency?" (A) A buyer
agency is illegal in California; (B) In a "buyer agency" the agents represents buyers
only; (C) In a "buyer agency," there is still a possibility of a dual agency; (D)
There is no difference between a "buyer agency" and a listing agency -
ANSWER✔✔b
19. A broker is representing a subdivider selling a new large subdivision of single
family dwellings. The broker knows that conformity is the key to maintaining
optimum value in the new subdivision. The broker and his salesperson decide that
in order to achieve this goal, they will quote higher prices to minorities than to
other buyers. This would be: (A) Illegal for the broker and the salesperson; (B)
Illegal for the seller; (C) Not illegal for the broker or salesperson; (D) Acceptable
practice for all parties involved as this behavior is in the best interest of both the
seller and buyers - ANSWER✔✔a
20. Jackson sold a condominium unit to Williams for a total price of $90,750.
Williams assumed an existing loan of $30,000 with no other financing being
involved. Based on a documentary transfer tax rate of 55 cents per $500, the tax to
be paid is: (A) $57.10; (B) $100.10; (C) $83.10; (D) $67.10 - ANSWER✔✔d
21. An advance fee contract must be approved in advance by the Department of
Real Estate and must include all of the following, except: (A) A complete
description of the services to be rendered; (B) The total amount of the advance fee;
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