California Real Estate Exam

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Before California licenses you to become a certified real estate salesperson, you are required to pass the California Department of Real Estate Exam. Our guide will help prepare you for this exam. While the pass rate for the DRE exam is only around 50%, our students enjoy a pass rate of over 95%. Our method features practice exam questions created by industry experts. The questions are constantly updated to stay current with California’s licensing requirements. We are so sure that you will pass the real estate exam that we offer an exam pass guarantee. That means that if you don’t pass the exam, we will offer you your money back!

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California State Section #1

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Question 1

How much is a Salesperson license?

A	$200
B	$245
C	$235
D	$225

Question 2

The Real Estate License Law is administered by:

A	California Department of Real Estate
B	California Real Estate Commission
C	California State Department
D	California Commission of Real Estate

Question 3

How often is continuing education due?

A	Every year
B	Every 2 years
C	Every 3 years
D	Every 4 years

Question 4

How many continuing education hours are required?

A	30 Hours
B	35 Hours
C	40 Hours
D	45 Hours

Question 5

Which is NOT necessary for a valid contract?

A	Offer
B	Legal Object
C	Acceptance
D	Due Date

Question 6

Which of the following isn't part of a deed?

A	Premises
B	Habendum
C	Acknowledgement
D	Novation

Question 7

What term means "going to the state?"

A	Taxation
B	Eminent Domain
C	Police Power
D	escheat

Question 7 Explanation:

escheat, is if someone dies and there is no one to inherit or no will the property goes to the state.

Question 8

Does California have Dower laws?

A	Yes
B	No

Question 9

Is California a community property state?

A	Yes
B	No

Question 10

Does California allow Joint Tenancy or Tenancy by the entirety?

A	Joint Tenancy
B	Tenancy by the entirety
C	neither
D	Both

Question 11

Does California have Homestead Laws?

A	Yes
B	No

Question 12

What is Homestead protection?

A	The status provided to a home owner's principal residence that protects the home against judgement up to a specified amount.
B	The estimated value that an asset will have at then end of it's useful life
C	Net cash remaining to investor after sale of investment property
D	Gradual subsidence of waters, leaving dry land

Question 13

In California, how soon can a broker receive a commission check after a closing?

A	Once the transaction is completed and funded.
B	Once the seller moves out.
C	After the appraisal.
D	Once the offer sheet is signed.

Question 14

Which of the following is required for a California applicant to obtain a Real Estate License?

A	Must be 25 or older
B	Must have a bachelors degree
C	Must sit and pass the required exam
D	Must have lived in the state for 2 years

Question 15

Which of the following would NOT put a sales person in jeopardy of losing their license in California?

A	Being authorized to accept and excessive commission.
B	Placing an ad claiming to be a broker when they are not.
C	Convicted of a felony
D	Depositing his/her clients escrow money into a personal account

Question 16

Does California recognize Holographic wills?

A	Yes
B	No

Question 17

What are holographic wills?

A	a will and testament that has been entirely handwritten and signed by the testator.
B	a will that displays in 3D
C	a will that has been approved by each family member.
D	a standard boiler plate will.

Question 18

What are California's Reciprocity states?

A	Oregon, Nevada
B	Arizona, Oregon
C	None
D	Nevada Arizona, Oregon

Question 19

In California, standing trees would be considered:

A	Real Property
B	Personal Property
C	Chattels
D	Emblements

Question 20

In California, who is responsible for maintaining a habitable property and for complying with local housing and building codes?

A	Lessor
B	Lessee
C	Department of Health
D	Mortgage Lender

Question 21

In California, which of the following is a landlord's option for a tenant not paying rent?

A	Shut off the gas
B	Shut off the power
C	Lock the tenant out.
D	unlawful detainer action in court

Question 22

In order to obtain a California Real Estate License you must have a high-school diploma or equivalent:

A	True
B	False

Question 23

What is the minimum age required to obtain a California Real Estate License:

A	18
B	19
C	20
D	21

Question 24

In what circumstances, if any, can a broker in California who is serving as an intermediary representing both parties collect compensation from both the buyer and the seller?

A	None; the broker may only collect compensation from one party to a transaction
B	Only when both buyer and seller give informed consent to this arrangement
C	Only when both buyer and seller have legal representation
D	In most circumstances, except when the buyer and seller are related

Question 25

Mortgage "discount" points only apply if which of the following conditions are met?

A	The seller has agreed to pay 1% of the closing costs
B	The interest rate on the mortgage loan has been lowered by 1% for each point charged
C	The interest rate on the mortgage loan has been lowered by 2% for each point charged
D	The loan does not close and the buyer owes the lender for services rendered

Question 26

Tenants in common share in the unity of

A	Time
B	Title
C	Interest
D	Possession

Question 26 Explanation:

There is only unity to tenancy in common. That's the matter of possession. Do not confuse with the for unities that belong to joint tenancy.

Question 27

When comparing the economic life of improved property with the physical life of the property, the economic life

A	is longer
B	is shorter
C	is the same
D	depends on the type of improvements

Question 27 Explanation:

Economic life refers to the useful life of improved property, which is customarily shorter than the actual physical life of the property.

Question 28

The builders plan that display the piers, sub-floors, footing, and columns within a structure is called

A	A floor plan
B	An elevation plan
C	a foundation plan
D	a plot plan

Question 28 Explanation:

It is the foundation plan that will show the placement of the piers, sub-floors, footings, and columns withing the structure

Question 29

Federal law protects purchasers of subdivision properties that are located in the United States and are being offered for sale in interstate commerce. This law provides for a right of rescission within

A	3 days
B	5 days
C	7 days
D	10 days

Question 29 Explanation:

Under the Federal Interstate Land Sales Full Disclosure Act, right of rescission lasts for seven days. Also recall that the number of lots in discussion under this act would be 100 or more lots being sold from state to state with a seven day right of rescission.

Question 30

A mortgage company would give the LEAST consideration to which of the following in granting a loan?

A	Borrower's present and future income
B	Value of the property in relation to loan
C	Borrower's need for financial assistance
D	Amount of down payment

Question 30 Explanation:

The borrower's need for financial assistance is the least consideration that a mortgage company will give.

Question 31

In the event the parties to a bulk sale do not comply with the provisions of the bulk sales law, as outlined in the Uniform Commercial Code, the party that would probably be injured the MOST would be the

A	Seller
B	Buyer
C	Creditor
D	Lender

Question 31 Explanation:

If the requirements of the bulk sales law are not met, the creditor could move to unravel the sale between the seller and the buyer. The buyer would stand to lose any deposit monies presented into the escrow up to that time.

Question 32

In California, a broker must have an employment contract with each licensed employee in the office. This contract

A	Must be kept by the employee for five years after the term of employment.
B	Must be writing.
C	Must be renewed every 2 years
D	Can be verbal

Question 32 Explanation:

The employment contract between the broker and the salesperson must be in writing because of statutory requirement. A copy of this employment contract must be kept by both the broker and the salesperson for up to three years after termination of employment.

Question 33

Through valid contractual assignment of a lease, the assignee purchases the leasehold interest and becomes a

A	Landlord
B	Guarantor
C	Sub lessee
D	Tenant

Question 33 Explanation:

The assignee takes over all rights and interest of the original tenant in a lease agreement. The assignee becomes a tenant, replacing the original tenant.

Question 34

Which of the following is TRUE with respect to an impound account?

A	The lender holding the account pays the same interest rate on funds as that paid by a savings and loan on savings account.
B	It benefits both the trustor and the beneficiary
C	The maximum amount cannot exceed 5% of the annual disbursements
D	It is required on all home loans

Question 34 Explanation:

An impound account benefits both the trustor (borrower) and the beneficiary (lender). By impounding taxes and insurance, the lender is certain that these debts will be paid. The borrower is also certain that the payments will be made.

Question 35

Upon payment of a fee, information on inspection reports issued by any licensed structural pest control operator may be obtained from the Structural Pest Control Board for up to two years by

A	The seller only
B	The buyer only
C	The seller and buyer only
D	Anyone who requests it and pays fee

Question 35 Explanation:

The Structural Pest Control Board in Sacramento retains information on pest control reports for up to two years. This information may be secured by anyone who requests it and pays a fee.

Question 36

An unlicensed secretary working in a real estate office may legally

A	Discuss terms for sale of a property advertised by the broker
B	Type listing agreements for salespersons
C	Collect rent on properties managed by the office
D	Quote prices on listed property over the telephone

Question 36 Explanation:

Of the four choices, an unlicensed person can only type listing agreements for salesperson

Question 37

A man granted a woman a subsurface easement to remove the minerals from the land but never designated the place of removal, so the

A	Woman must obtain the man's consent as to right of entry.
B	Woman has an implied easement to enter and use the surface of land to extract the minerals
C	Woman has no right of entry to remove the minerals
D	Woman's easement rights are land-locked.

Question 37 Explanation:

An implied right of entry hoes along with a reservation of rights, as stated in the question

Question 38

If a salesperson misinforms a buyer as to deed restrictions,

A	There is no liability if the restrictions are a matter of record
B	The salesperson and the broker may both be liable for damages
C	Only the salesperson is liable
D	Only the principal is liable

Question 38 Explanation:

If there is any form of misinformation or misrepresentation by a salesperson to a potential buyer, both the salesperson and the broker may be liable for damages

Question 39

A real estate broker negotiates a $4,000 second trust deed note secured by real property. The loan was to be paid in full in five years. The MOST the broker could charge as a commission for their services would be

A	3%
B	6%
C	10%
D	15%

Question 39 Explanation:

Under Article 7 (loans) with reference to junior trust deed that is under $20,000, the maximum commission that a broker can earn if the payment of the debt is in three years or more is 15%

Question 40

The trustor under a trust deed is the party who

A	Signs the note as maker
B	Holds the title to the property in trust
C	Acknowledges the note for recording
D	Lends the money

Question 40 Explanation:

The trustor is the borrower under a deed of trust and is the one who signs the note and the deed of trust itself

Question 41

The act providing for civil action against persons conducting business establishments by aggrieved persons claiming discrimination on account of sex, color, religion, ancestry, or national origin is the

A	Civil Rights Act
B	Rumford Act
C	Unruh Act
D	Act of 1969

Question 41 Explanation:

The Unruh civil Rights Act that prohibits discrimination by businesses

Question 42

A licensed real estate broker is accused of violating the Unruh Act for refusing to rent property to anyone other than persons of the Caucasian race. If found guilty, the broker

A	Must pay $250 to the party infringed on as punitive damages
B	Is subject to actual
C	Must pay $250 to the party infringed on as punitive damages and is subject to actual damages
D	Is none of the above

Question 42 Explanation:

Under the Unruh Civil Rights Act, payment of both punitive damages and actual damages for discrimination activities are both possible.

Question 43

The act that empowers the State Department of Fair Employment and Housing to act against discrimination in both publicly assisted and private housing accommodations under specified conditions is the

A	Civil Rights Act.
B	Rumford Act
C	Unruh Act
D	Act of 1969

Question 43 Explanation:

The Rumford Act, also called the California Fair Housing Act, empowers this commission to take action for discrimination violations.

Question 44

In a tight money market, which of the following would be a TRUE statement regarding conventional loans?

A	The buyer will pay a lower origination fee
B	The buyer will pay more points
C	The seller will pay greater discount points
D	The seller will pay a higher origination fee.

Question 44 Explanation:

In a tight money market, the cost of existing available dollars would increase. Therefore, buyers would be expected to pay more points for securing a loan.

Question 45

Which of the following BEST describes a "complete" escrow?

A	It is considered a perfect escrow
B	The escrow holder has ceased being an agent for both parties
C	All papers are properly drawn up and ready for final steps to be taken to close the escrow
D	All services of the escrow holder are involved

Question 45 Explanation:

A complete escrow is one wherein all documents have been properly drawn and are prepared for final signature, allowing that escrow to close.

Question 46

When an escrow is in progress and all the conditions have been satisfied, the escrow officer becomes

A	A counselor to both the buyer and the seller
B	An advocate to safeguard the interest of the principal
C	The independent agent for each of the parties to the escrow
D	None of these

Question 46 Explanation:

The escrow agent is truly an independent agent for each of the parties to the escrow and can act neither as an advocate nor as a counselor

Question 47

A life insurance company engaged in making real estate loans would normally create these loans with the assistance of

A	The VA or thought the FHA
B	A federal-chartered or state-chartered savings and loan association
C	A mortgage banker
D	Any of these

Question 47 Explanation:

Most life insurance company loans are made through a loan correspondent that could be defined as a mortgage banker or mortgage broker.

Question 48

For a homestead to be effective, it must be filed before the

A	Judgment is rendered
B	Judgment is recorded
C	Lawsuit is filed
D	Lis pendens is recorded

Question 48 Explanation:

For the homestead to be effective, the recording must occur before an ultimate judgment is recorded. Notice the difference between recorded and rendered. Recording occurs after a judgement is rendered

Question 49

Gary, Louis, and Tom are joint tenants. Gary conveys his interest to Jacob. Which of the following is TRUE?

A	Louis, Tom, and Jacob are each tenants.
B	Louis, Tom, and Jacob are each Jacob one-third tenants in common
C	Jacob owns one-third as a tenant in common with Louis and Tom, who now own two-thirds as joint tenants.
D	None of these

Question 49 Explanation:

Jacob becomes a one-third tenant in common with Louis and Tom, who remains as joint tenants.

Question 50

Should a dispute regarding a commission arise between two sales license who are members of the National Association of REALTORS, by the provisions of that organization's Code of Ethics, they will settle the matter by

A	Litigation
B	Estoppel
C	Arbitration or Mediation
D	Mandamus

Question 50 Explanation:

The National Association of REALTORS encourages settlement of disputes between the parties by mediation or arbitration whenever that can be arranged

Question 51

A liquidated damages clause in a real estate contract

A	Allows the buyer to withdraw her offer anytime before acceptance.
B	is looked on with disfavor by the courts
C	Determines the damages to be paid in case of fire during escrow
D	Sets up a procedure to be followed in case of foreclosure

Question 51 Explanation:

Liquidated damage agreements have been disliked by the courts. However, they are often allowed if the amount discussed is not unusually high and it might perhaps be difficult to fix actual damages suffered by the insured party.

Question 52

With regard to a deed of trust and promissory note, which of the following statements is TRUE?

A	The provisions of the promissory note prevail over the deed of trust.
B	The promissory note secures the trust deed and the property
C	The provisions of the trust deed prevail over the promissory note
D	The trust deed secures the promissory note.

Question 52 Explanation:

The promissory note is merely evidence of the debt and must be secured by another device commonly called the trust deed. Hence, a trust deed is a security device.

Question 53

A man is leasing a property for a 8 year term. A woman asks the man to grant her an easement over the property. In these circumstances, which statement is TRUE?

A	This would be illegal because only the lessor can grant such a use
B	This would be legal for the term of the lease
C	This would be illegal because the owner must join in such a grant with the lessee
D	The tenant can legally grant such a right for an indefinite period.

Question 53 Explanation:

A lessee has possessory interest in real property and is able to grant an easement but only for the term of the lease

Question 54

Which of the following is community property?

A	Husband's salary
B	Income form husband's separate property earned during marriage
C	Income from wife's separate property earned during marriage
D	All of these

Question 54 Explanation:

The husband's salary, as well as the wife's salary, is considered community property.

Question 55

A deed to a person under an assumed name is

A	Void
B	Voidable
C	Permissible
D	Prohibited

Question 55 Explanation:

A deed to an assumed name, sometimes called a fictitious name, is permissible, such as a deed to property bought by a person in the name of a business.

Question 56

For appraisal purposes, a commercial property valued in excess of $350,000 requires

A	Any type of appraisal
B	A certified general appraiser
C	An appraisal by a member of the Appraisal Institute
D	None of these

Question 56 Explanation:

Commercial property valued in excess of $350,000 required that an appraiser be licensed as a certified general appraiser

Question 57

The statute of limitations specifies the time limits in which lawsuits must be brought to court in the event of a breach. Under this statute, a buyer must bring legal action against a seller for failure to perform under a valid purchase contract within

A	90 days
B	1 year
C	2 year
D	4 year

Question 57 Explanation:

The statute of limitations for contract in writing is four years.

Question 58

A homeowner engages a broker to sell her home under an exclusive authorization and right-to-sell listing, Under these circumstances, the broker's authority is

A	Whatever third parties perceive it to be
B	Whatever the broker believes his authority to be, even if it extends beyond those duties agreed to under the listing contract
C	That which will be necessary to sell the property, regardless of the listing terms, because that is the purpose for which he has been hired.
D	That which has been agreed to between the principal and the agent and that which is necessary, proper, or usual in the ordinary course of business for effecting the sale of the property.

Question 58 Explanation:

Choice "d" is a proper definition for the exclusive authorization and right-to-sell listing

Question 59

The type of interest usually charged on single family home loans is

A	Annuity
B	Prepaid
C	Compound
D	Simple

Question 59 Explanation:

Simple interest is the form of interest customarily charged on real estate loans.

Question 60

When reviewing the credit standing of a prospective borrower, the bank would probably grant the loan if the borrower showed that her

A	FICO score was strong
B	Cash in the bank almost equaled her liabilities
C	Liabilities were three times her net worth
D	Existing loan was in default only one month

Question 60 Explanation:

FICO scores of 620 and above can usually generate good loans (there are exceptions)

Question 61

A commercial acre is defined as an acre of land

A	In a shopping center in a rural area
B	In an industrial development
C	In a new subdivision zoned for commercial use
D	Less the streets and alleys

Question 61 Explanation:

A commercial acre is defined as the remainder of an acre after the land as been subdivided to include areas devoted to streets, sidewalks, curbs, and alleys, and so on

Question 62

An individual purchased a fee simple interest in airspace and an undivided interest in common in a portion of a parcel of real property that could be used for residential, commercial. or industrial use. This would be classified as

A	A condominium
B	A stock cooperative
C	A planned development
D	None of these

Question 62 Explanation:

A condominium purchase is the only transaction in which the buyer receives a fee simple interest and an in-common interest at the same time

Question 63

Filing a complaint under the federal housing law must, according to the statute of limitations, be done within how many days from the occurrence of the alleged act?

A	60
B	90
C	180
D	360

Question 63 Explanation:

The time period in which to file a complaint for violation under the federal fair housing law is 180 days

Question 64

Which of the following is necessary to legally transfer title to real property?

A	A current beneficiary statement on any existing loan
B	A title policy showing title vested in the grantor
C	The services of a licensed real estate broker
D	None of these

Question 64 Explanation:

None of the choices are required for minimum building standard requirements by the FHA

Question 65

FHA-insured loans can be granted only on residential properties that meet minimum building standards. In a residence approved for FHA-insured financing, which of the following requirements for the construction of a stairwell does NOT have to be met?

A	There must be two handrails
B	The tread of the step must have a minimum width
C	The riser must be minimum height
D	The stairwell must allow for minimum headroom

Question 65 Explanation:

Two handrails are not required for minimum building standard requirements by the FHA

Question 66

If an owner dies leaving a will, but without heirs, their property

A	Vests in the devisees, subject to administration
B	Escheats to the State of California
C	Escheats to the Unites States
D	Does none of these

Question 66 Explanation:

When one expires leaving a will without heirs, the property transfers according to the provisions of the will and possibly to the interests of potentially existing devisees, subject to the proper administration of that will

Question 67

When a loan is obtained to purchase real property and a note and trust deed are executed, the party that furnishes the funds is the

A	Grantee
B	Beneficiary
C	Trustor
D	Trustee

Question 67 Explanation:

The beneficiary is the lender

Question 68

The BEST appraisal method to establish the current market value of a shopping center would be the

A	Cost-income
B	Market data-income
C	Income-gross rent multiplier
D	Cost-gross rent multiplier

Question 68 Explanation:

The preferred method for the appraisal of a shopping center would be the replacement cost approach and the capitalization of net income approach

Question 69

A "holder in due course" brings action to collect on the note. Which one of the following may the maker of the note use as a defense?

A	Lack or failure of consideration
B	Prior cancellation
C	Fraud in the inducement
D	Material alteration of the note

Question 69 Explanation:

A hold in due course is a third party who buys up an existing note. The maker is the borrower. The borrower may refuse payment on the note if there is material alteration on the face of the note.

Question 70

Which of the following would be considered an estate of indefinite duration?

A	An estate for years
B	An estate of inheritance
C	A lease for 99 years
D	Material of the note

Question 70 Explanation:

An estate of inheritance is another form of fee simple. A main characteristic of this interest is that the estate is of indefinite duration

Question 71

If the owner enters into an exclusive-agency listing and thereafter sells the property through their own efforts,

A	No commission is payable
B	The broker is entitled to 50% of the commission
C	The broker is entitled to full commission
D	None of these happens

Question 71 Explanation:

Under an exclusive-agency listing, the seller reserves the right to sell the property on his own and not pay anyone a commission

Question 72

If a person affixes property to the land of another by mistake, the

A	Person may remove it under prescribed conditions, including payment of damages
B	Property may not be removed because it has become a fixture
C	Landowner must pay for its cost
D	Landowner may destroy it

Question 72 Explanation:

Under an exclusive-agency listing, the seller reserves the right to sell the property on his own and not pay anyone a commission

Question 73

Which of the following is the viewpoint of the accountant and the appraiser with respect to depreciation?

A	The accountant is concerned with book depreciation, while the appraiser deals with actual depreciation
B	The appraiser is interested only in book value
C	The accountant is interested only in what caused the depreciation
D	The accountant is interested in the book value, while the appraiser is interested in the theory of deprecation

Question 73 Explanation:

Depreciation is a term with two applications. For accounting purposes, deprecation is taken off the book value. For appraisal purposes, deprecation is taken off the actual replacement value of a new commodity

Question 74

If zoning prohibits a use permitted by private deed restrictions, the

A	Zoning controls
B	Courts must be called on
C	Deed restrictions control
D	Zoning is invalid

Question 74 Explanation:

If deed restrictions and zoning conflict, the more rigid of the two will prevail. In this example, zoning is more rigid.

Question 75

A beneficiary statement is furnished by the

A	Trustee upon the demand of the trustor
B	Beneficiary upon the demand of the escrow company
C	Beneficiary upon the demand of the trustee
D	Surveyor upon the demand of the beneficiary

Question 75 Explanation:

The escrow company writes to the lender requesting a beneficiary statement. That settlement will indicate the condition of the loan, the balance due, rate of interest due to date, and so on.

Question 76

An individual who has rented real property may remove which of the following on termination of the lease?

A	Manufacturing equipment
B	Trade fixtures
C	Items for domestic use
D	All of these

Question 76 Explanation:

Trade fixtures are items that can be removed on termination of the tenancy if the contract provides for that, as long as the tenant makes any repairs to the premises necessitated by the removal of such trade fixtures. Choices a and c are examples of trade fixtures

Question 77

Attachment is

A	A legal seizure of property
B	An assessment
C	A lien
D	A form of tax

Question 77 Explanation:

A attachment is legal seizure of the title to property by a court. It is a prejudgment activity, typing up that property until a hearing date is set

Question 78

If the U.S. government obtained a lien against a taxpayer who failed to report a certain portion of his rental income, it would be classified as

A	General
B	Specific
C	Voluntary
D	None of these

Question 78 Explanation:

Unpaid taxes will be classified as general liens

Question 79

Limitations on the use of real property may be created by

A	Building codes
B	Zoning Regulations
C	Deed restrictions
D	All of these

Question 79 Explanation:

Building codes, deed restrictions, and zoning regulations are all examples of public and private restrictions that may limit the use of real property

Question 80

For a judgment to constitute as lien, it must meet certain prerequisites. Which of the following is NOT a prerequisite?

A	It must be a judgment that money is owed.
B	It must be a valid judgment
C	An abstract of judgment must be recorded in the state in which the real property is situated
D	It must be rendered by a lawfully constituted court

Question 80 Explanation:

When recorded, an abstract of judgment becomes a lien on any property owned by the judgment debtor in the county where the abstract is recorded

Question 81

An owner knew the roof leaked in his house and disclosed that fact to the broker whom listed the property for sale. The broker is required to

A	Comply with the owner's request to keep it a secret
B	Disclose such fact to a prospective buyer
C	Protect the seller and not say anything
D	Have a new roof put on and put the bill into escrow

Question 81 Explanation:

Both the seller and the broker are obligated to disclose any material facts to a prospective buyer concerning the property in question, unless prohibited by law

Question 82

A copy of the real estate commissioner's public report that was issued on land within a land project must be given by the sub-divider or the sub-divider's agents or salespersons to

A	All owners of land adjacent to the subdivision
B	Every adult prospect who wrote or telephoned requesting one or who visited the site and indicated an interest in purchasing one or more of the sites
C	Every prospective buyer, but the sub-divider's agent can wait until just before signing the purchase agreement
D	The local newspaper so it can be published in the legal section

Question 82 Explanation:

Every potential buyer of land within a land project is entitled to a copy of the public report

Question 83

A township is

A	6 square miles
B	24 miles around
C	36 square miles
D	all of the above

Question 83 Explanation:

A township is a six-mile square, containing 36 square miles, within a 24 mile perimeter

Question 84

A broker who has a signed listing to sell a property can refuse to submit an offer on that property

A	Under circumstances in which the broker also has obtained a backup offer
B	Whenever the offer is for less than the listed price
C	If, in the listing agreement, the broker also has an option to purchase the property
D	When expressly instructed to do so by the owner

Question 84 Explanation:

Usually, a broker is obligated to submit all offers on a listing, unless the owner has expressly instructed the broker not to do so.

Question 85

An enforceable standard listing that has been signed by the seller and the broker

A	Obligates the seller to sell
B	Requires a meeting of the minds
C	Requires a seller to be able to deliver a marketable title.
D	All of the above

Question 85 Explanation:

The requirement of the meeting of the minds is a requirement for a contract, and a standard listing agreement is an example of a contract

Question 86

Functional utility in a dwelling depends on

A	The desires of its occupants
B	Its floor plan and equipment
C	Zoning of the area
D	Condition of the heating system

Question 86 Explanation:

The floor plan and the equipment help define functional utility

Question 87

The taxpayer would ordinarily have to pay property taxes on all EXCEPT

A	A condominium interest
B	Intangible personal property
C	Public tax-exempt land under a lease (e.g, an oil lease)
D	An easement over the land of another

Question 87 Explanation:

Intangible personal property is not subject to taxation

Question 88

When issuing the closing statement, escrow would debit the seller of income property for which of the following items?

A	Prepaid taxes
B	prepaid rent
C	Prepaid fire insurance premium
D	All of these

Question 88 Explanation:

Prepaid rent is considered a charge, or debit, to the seller

Question 89

When applying the principle of substitution, the home buyer would consider

A	Use
B	earnings
C	Structural design
D	All of the above

Question 89 Explanation:

Choices a, b, and c are all of concern to the home buyer

Question 90

The law that required that certain contracts be in writing is contained in the

A	Statute of limitations
B	Small Loan Act
C	Statute of frauds
D	Fair Trade Law

Question 90 Explanation:

The statute of frauds says certain items, including real estate transactions, must be in writing to be enforceable

Question 91

The legal procedure to evict a nonpaying tenant is by

A	Action by lessor through physical ejections
B	Court action for specific performance
C	Unlawful detainer
D	Non-action

Question 91 Explanation:

An unlawful detainer action is the legal action an owner may take to remedy a default in rental payment

Question 92

Which of the following statements is correct with regard to an easement and the dominant tenement?

A	The dominant tenement receives both the benefit and the burden of the easement
B	The owner of the dominant tenement can retain the easement but can transfer title to the property
C	It can be created for ingress and egress only
D	The easement is transferred with the transfer of the dominant tenement

Question 92 Explanation:

The easement is an easement appurtenant, meaning it will run with the land and be transferred to the buyer of the dominant tenement interest.

Question 93

Legal enforcement of the terms of a deed of trust in case of default may be

A	Either by trustee's sale or judicial foreclosure
B	By trustee's sale proceedings only
C	By judicial foreclosure only
D	None of the above

Question 94

California law permits a person to file a declaration of homestead, provided that the person is living in

A	a condo
B	a boat or motor home
C	an apartment building that is owned
D	a single family home
E	all of the above

Question 94 Explanation:

Unlike some other states, California offers a homestead exemption to everyone who owns a home and lives in it. Your home need not be a single-family dwelling. If you live in a condo, motor home or on a boat that you own, you qualify for the exemption. If you are single, you have homestead protection up to $75,000 of equity. A head of household receives a $100,000 equity exemption. If you are over 65, physically disabled or have less than $15,000 annual income, your equity is protected up to $175,000. A qualifying dwelling can be any place you own as your principal place of residence and that is subject to property tax. Examples include, but are not limited to: Single family residence Duplex or half-plex Condominium or planned unit development (PUD) Unit of any multi-unit property Mobilehome Houseboat or floating home that is subject to property tax A living unit in a commercial or industrial property A motor home or other temporary structure used as a principal residence on otherwise vacant property owned by the claimant.

Question 95

A person who earned the right to act in behalf of another is known as

A	An affiant
B	A leaseholder
C	An attorney-in-fact
D	An executor

Question 96

The commissioner may revoke or suspend the license of real estate licensee who

A	Demonstrated negligence or incompetence in performing any act for which he is required to hold a license
B	Failed to exercise reasonable supervision over the activities of his salespeople
C	Willfully disregarded or violated any of the provisions of the real estate law
D	All of the above

Question 97

Which of the following is an encumbrance?

A	Fence
B	Lease
C	Homestead
D	Trade Fixture

Question 98

The fee that an appraiser charges for appraisal is established by the

A	agreement between the appraiser and the client
B	California Department of Veterans Affairs
C	Real estate commissioner
D	American Institute of Real Estate Appraisers

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