#2. A seller instructs their listing agent to accept only offers from buyers of a specific ethnicity. The agent should:
#3. A commercial lease includes a build-to-suit provision. This means:
#4. The principle of conformity holds that property values are most stable when:
#5. A property tax bill is $5,400/year. The first installment (Jul 1 – Dec 31) is due November 1. If the buyer closes on August 15, how much does the seller owe?
#6. An agent’s broker instructs the agent to not disclose a known material defect to buyers. The agent should:
#7. A property’s highest and best use may differ when analyzed as:
#8. An arm’s-length transaction means:
#9. A property sold for $300,000 has annual property taxes of $3,600. Closing is March 31 (seller owned 90 days out of 365). The seller’s prorated share is:
#10. The California DFEH (now CRD) investigates fair housing complaints. Complaints must be filed within:
#11. Agent Roberts discovers that a neighboring property is planning a major construction project that will significantly impact the listed property. Under the duty of care, Agent Roberts must:
#12. In a living trust, the trustor transfers property to the:
#13. Which statement about the distinction between real and personal property is FALSE?
#14. A DRE investigator requests access to a broker’s transaction files for the past 3 years. The broker must:
#15. Under California law, an agency relationship may be terminated by all of the following EXCEPT:
#16. When evaluating a VA loan vs. conventional loan, a key advantage of VA is:
#17. When an appraiser reconciles three approaches to value, the result is:
#18. Joint tenancy requires four unities. Which of the following is NOT one of them?
#19. Under the fiduciary duty of loyalty, an agent may NOT:
#20. If the Closing Disclosure shows unexpected charges not in the Loan Estimate, the borrower should:
#21. The USPAP Ethics Rule prohibits appraisers from:
#22. A commercial tenant’s lease requires the tenant to maintain liability insurance with the landlord named as additional insured. If the tenant fails to obtain insurance:
#23. Under California law, which of the following compensation arrangements is legal but must be carefully disclosed?
#24. Under California law, a broker acting as an escrow agent for a transaction in which the broker is also the listing agent:
#25. The margin in an ARM is:
#26. Deed restrictions (CC&Rs) that include racial restrictions are:
#27. Under the DRE’s audit procedures, which documents are typically examined?
#28. The Federal Housing Finance Agency (FHFA) sets conforming loan limits, which in California affect:
#29. Under California law, which of the following is TRUE about joint tenancy and the right of survivorship?
#30. Which of the following would NOT terminate an agency relationship?
#31. In California, the fiduciary relationship between agent and principal is described as one of:
#32. Proposition 13 limits the property tax component of PITI by:
#33. Under California law, a property manager who charges a tenant a fee for processing a rental application:
#34. A property manager notices that the parking lot lighting at a managed apartment complex is broken, creating a safety hazard. The manager should:
#35. Reproduction cost is most appropriate for valuing:
#36. Which of the following best describes specific performance as a contract remedy?
#37. PITI stands for:
#38. A seller lists a property with a broker at $500,000. The listing agreement states the commission is 5%. A buyer offers $480,000 which the seller accepts. The commission is based on:
#39. During a drought, appropriative water rights are reduced by:
#40. Under California Civil Code §1092, a grant deed contains which of the following implied warranties?
#41. A condominium owner holds:
#42. Under California law, a broker’s supervision must include ensuring that all advertising materials:
#43. Under California agency law, which duty protects against an agent secretly purchasing the listed property through a third party?
#44. Under California law, homestead protection amounts vary based on:
#45. An interest-only period means:
#46. A property owner dies and leaves a will directing that the home go to their nephew. The executor:
#47. A buyer’s agent who fails to investigate whether a property is in a designated flood zone, and the buyer later suffers flood damage, may be liable for:
#48. Months of inventory is an indicator measuring:
#49. A buyer purchases property and discovers after closing that an undisclosed easement exists. The buyer’s recourse depends on:
#50. Which of the following is TRUE regarding the timing of the seller’s delivery of the TDS?
#51. The pest control report for a California residential sale identifies Section 2 conditions. Section 2 conditions are defined as:
#52. A buyer’s agent negotiates a purchase price that is $30,000 below market value. The agent then arranges to purchase the property from the buyer at market value the next month. This practice is:
#53. Which of the following is TRUE about the disclosure of utility costs for a property in California?
#54. Under California’s Vacation Ownership and Time-Share Act, a buyer has the right to cancel within:
#55. A property zoned for single-family use cannot legally be:
#56. The California Coastal Commission was established by:
#57. A homestead declaration in California:
#58. The difference between pre-qualification and pre-approval is BEST described as:
#59. Key indicators for analyzing supply and demand include all of the following EXCEPT:
#60. Under California law, which of the following statements about the doctrine of impossibility is TRUE?
#61. Curable physical deterioration is also known as:
#62. A property is being sold and the seller has not yet paid the annual property taxes of $4,380. Closing is August 15. Using 365 days, the seller’s share (Jan 1-Aug 14, 226 days) is approximately:
#63. California’s AB 3088 (COVID-19 Tenant Relief Act) provided:
#64. A buyer submits two identical offers on the same property through two different agents. If both offers are accepted:
#65. Under California law, the statute of limitations for fraud in a real estate transaction is:
#66. Under California law, a property sold through eminent domain must be appraised:
#67. An easement in gross typically benefits:
#68. In a dispute between a buyer and seller over whether a chandelier conveys with the property, California courts generally:
#69. Which of the following situations would most likely result in an agency by estoppel?
#70. California Government Code §13050-13210 governs:
#71. A listing agent’s fiduciary duty of reasonable care includes which of the following obligations?
#72. Under California law, a DRE audit finding of commingling of trust funds results in:
#73. A borrower obtains a $300,000 mortgage at 4% for 30 years. The total number of monthly payments is:
#74. Under California law, a power of attorney used in real estate transactions must be:
#75. Under California law, a property inspection report that identifies potential mold contamination should prompt the agent to:
#76. Under California law, an agent who fails to conduct a required visual inspection of the property may be liable for:
#77. Under California’s truth in advertising laws, an agent who guarantees specific investment returns without data-backed analysis may face:
#78. Buyer confidence in purchasing real estate increases during:
#79. An investor pays $800,000 for a property generating $80,000 annual gross rent. The property has $30,000 in annual operating expenses. What is the capitalization rate?
#80. Which of the following correctly states the unity of interest requirement for joint tenancy?
#81. A $500,000 property generates $40,000 in annual net operating income. What is the overall rate of return (cap rate)?
#82. A buyer’s agent discovers that the property was previously used as a methamphetamine lab but has been certified as remediated. The agent should:
#83. Which fiduciary duty is violated when an agent uses their position to benefit personally at the expense of the client?
#84. Which of the following is TRUE about California’s water heater and smoke detector disclosures?
#85. Which legal description system would MOST likely be used for property originating from a Spanish land grant in coastal California?
#86. A listing agreement contains a holdover clause. This clause provides that:
#87. A buyer receives the TDS and NHD reports but does not read them before making an offer. If the buyer later discovers a disclosed defect:
#88. If adjustments to a comparable are too large, it indicates:
#89. A commercial lease contains a demolition clause. This clause typically provides that:
#90. Which of the following scenarios would NOT create an agency relationship?
#91. An HOA resident who disagrees with a fine should first:
#92. Under California law, if neither party has initialed the arbitration clause in the purchase agreement:
#93. The DRE’s eLicensing system allows licensees to:
#94. A real estate agent provides a buyer with a list of three home inspectors to choose from. Under the duty of care, this is:
#95. Under the DRE Code of Conduct, an agent who provides different levels of service based on the property’s location in a predominantly minority neighborhood may be engaging in:
#96. A property has an underground heating oil tank that was decommissioned 20 years ago. The seller must:
#97. Pre-qualification is based on:
#98. A prescriptive easement in California requires use that is:
#99. ‘N 45° 30′ 15″ E’ in a metes and bounds description is called a:
#100. Which scenario best illustrates a breach of the fiduciary duty of confidentiality?
#101. A fixed-rate mortgage provides:
#102. SB 9 (California Housing Opportunity and More Efficiency Act) allows:
#103. If a property’s NOI is $60,000 and the cap rate is 7.5%, what is the indicated value?
#104. A property’s title report lists a recorded CC&R that restricts the property to residential use only. The buyer plans to operate a home business. The buyer should:
#105. A Specific Plan provides:
#106. Under the federal Fair Housing Act, discriminatory financing occurs when:
#107. Under California law, a buyer who is purchasing a home in an HOA must receive the CC&Rs within:
#108. The single point of contact requirement under the Homeowner Bill of Rights ensures:
#109. Under California law, an agent who discovers that a colleague is engaging in redlining practices should:
#110. Under California’s Energy Code (Title 24), new construction must comply with:
#111. A listing agent prepares the AVID after a visual inspection and notes ‘no apparent defects.’ During the buyer’s professional inspection, numerous defects are discovered. The listing agent may be liable if:
#112. Lenders generally prefer a DTI ratio below:
#113. Under California law, a real estate contract may be unenforceable due to unconscionability if:
#114. Incurable functional obsolescence includes:
#115. In eminent domain proceedings, if the parties cannot agree on compensation:
#116. Under California law, the broker must retain which of the following documents for at least 3 years?
#117. NOI = Value × Cap Rate is used when solving for:
#118. The Homeowner’s Guide to Earthquake Safety booklet must be provided by the seller in which situation?
#119. California’s AB 1482 (Tenant Protection Act) applies to:
#120. Under California law, the Real Estate Advisory Commission consists of:
#121. A property manager who fails to properly maintain a property and a tenant is injured may face:
#122. Under California law, which of the following is a potential consequence of an agent making misleading advertising claims about a property?
#123. Police power differs from eminent domain primarily because police power:
#124. A property has a history of subsidence (ground settling). Under California disclosure law:
#125. A buyer’s agent discovers that the property has a serious mold issue not disclosed by the seller. The agent’s duty of care requires:
#126. The main advantage of joint tenancy for estate planning is:
#127. HOA management companies are typically hired to:
#128. A real estate advertisement for a rental unit states ‘Ideal for singles or couples.’ Under fair housing law:
#129. In a buyer’s market with ample inventory, pricing strategy should be:
#130. Under California law, the DRE’s enforcement process for code of conduct violations ensures:
#131. Under California law, which of the following is TRUE about the ‘time is of the essence’ clause in a purchase agreement?
#132. Which of the following statements about recording priority is CORRECT?
#133. A CMA is prepared by:
#134. A seller’s TDS discloses a ‘minor’ crack in the exterior stucco. An inspector later determines the crack indicates structural settling. The buyer may:
#135. Under the fiduciary duty of loyalty, a listing agent who learns that a neighboring commercial development will significantly increase the property’s value should:
#136. Which of the following is TRUE about the termination of an agency by operation of law?
#137. A broker’s continuing education on trust fund management should cover:
#138. A listing agent learns that the city is planning to build a new highway adjacent to the listed property. Under the duty of disclosure, the agent should:
#139. A property in a Mello-Roos district has annual assessments. These assessments typically continue for:
#140. A listing agent’s duty of loyalty prevents the agent from doing which of the following?
#141. Under California law, the transfer of real property by operation of law includes all of the following EXCEPT:
#142. A property manager receives a complaint from a tenant that another tenant is engaging in excessive noise. The manager should:
#143. California Business and Professions Code Section 10177 covers:
#144. In California’s competitive markets, a pre-approval letter is particularly important because:
#145. A listing agent is approached by a buyer who wants to submit an offer but does not have an agent. The listing agent may:
#146. Under California law, which of the following contract remedies is considered a legal remedy (as opposed to an equitable remedy)?
#147. A buyer’s agent discovers an active sinkhole advisory for the area near the listed property. The agent must:
#148. A property manager receives a request from a tenant to assign the lease to a new tenant. Under the lease terms:
#149. California’s Fair Employment and Housing Act (FEHA) adds which protected class NOT covered by the federal Fair Housing Act?
#150. Underfunded HOA reserves (below 75% funded) indicate:
