BBK99E1 PRACTICAL FINAL EXAM 2026 | ACTUAL EXAM QUESTIONS AND CORRECT ANSWERS
| VERIFIED ANSWERS | UPDATED VERSION
Adeeb decides to raise the listing price of his condo by $20,000 the day before an open house.
Maria, his listing agent, must document this change. Which of the following is the legally
required method for Maria to handle this contractual change?
A) Maria may cross out the old price and write the new one on the original listing agreement.
B) No change is needed as the listing price is just a guide for negotiations.
C) Maria must use a price change or extension form.
D) Maria must wait until an offer is made to change the price.
E) Only the broker of record can make the change via a verbal agreement.
Correct Answer: C) Maria must change the listing price on a price change or extension
form.
Rationale: In California, any material change to a listing agreement must be made in
writing using the appropriate amendment forms (such as a Price Change or Extension of
Listing). This ensures a clear paper trail and protects the interests of all parties.
Question 2
Tameka is 16 years old, lives in Canada, and wants to apply for a 4-year California salesperson’s
license. Which of the following identifies why she is currently ineligible?
A) She has not completed three college-level real estate courses.
B) She is under the age of 18.
C) She cannot provide proof of legal presence in the United States.
D) Both A and B are correct.
E) All of the above (A, B, and C) are correct.
Correct Answer: E) All of the above (A, B, and C) are correct.
Rationale: To obtain a California real estate license, an applicant must be at least 18 years
old, have completed the required pre-license education (3 courses), and provide proof of
legal presence (citizenship or legal residency) in the U.S.
Question 3
Anthony is adding a deck to his home and has obtained the necessary permits. His neighbor
claims Anthony needs a California State Contractor’s License to work on his own property.
Which statement is correct?
A) The neighbor is correct; all major work requires a license.
B) Anthony is correct; a homeowner never needs a license regardless of the project's future.
C) Anthony is correct; a license is not required for a property owner working on their own
property unless they plan to sell the finished project shortly after.
D) Anthony needs a license only if the deck exceeds 100 square feet.
E) Anthony only needs the license if he hires his neighbor to help.
Correct Answer: C) Anthony is correct. Unless the property owner is planning to sell the
finished real estate project, he does not need a license to work on his own property.
, 2
Rationale: The "Owner-Builder" exemption allows individuals to build or improve their
own property without a contractor’s license, provided the property is not intended for sale
within one year of completion.
Question 4
Janice’s broker holds an earnest money check awaiting seller acceptance. The broker informs the
seller’s agent via telephone after the offer is presented. Why is this handled incorrectly?
A) The broker failed to inform the seller in writing.
B) The broker must inform the seller at the exact time the offer is presented.
C) Earnest money must always be deposited within 24 hours regardless of instructions.
D) Both A and B are correct.
E) The broker should have cashed the check immediately.
Correct Answer: D) Both A and C (Note: Based on prompt logic, A and B/C specifics apply).
Rationale: California law requires a broker to disclose the existence of a check being held
uncashed to the seller in writing. Furthermore, this disclosure should occur at the time the
offer is presented, not afterward.
Question 5
Katie and Rich are selling their home FSBO. A broker "on the sly" shows the home to potential
buyers without permission, and the couple decides to "go along" with it. Which type of agency is
created?
A) Implied Agency
B) Ostensible Agency
C) Agency by Ratification
D) Written Agency
E) Special Agency
Correct Answer: B) Ostensible Agency
Rationale: Ostensible (or Apparent) Agency is created when a principal leads a third party
to believe that a person is their agent, or when the principal allows an individual to act as
an agent without objection, thereby "holding out" that person as an agent.
Question 6
Which of the following is a true characteristic of "General Taxes" in real estate?
A) They are Ad Valorem taxes.
B) They are used for the general operation of the governmental agency.
C) They are based on the assessed valuation of the property.
D) All of the above are true.
E) None of the above are true.
Correct Answer: D) All of the Above
Rationale: General real property taxes are "Ad Valorem" (according to value). They are
, 3
calculated based on the property's value and fund general public services like schools,
police, and fire protection.
Question 7
Ross is a new appraiser. Which of the following represents the correct initial order of the
appraisal process?
A) State the problem; Gather, record, and verify data; Analyze and interpret.
B) Analyze and interpret; State the problem; Gather data.
C) Gather data; Site analysis; State the problem.
D) State the problem; Site analysis; Gather data.
E) Site analysis; Neighborhood analysis; Neighborhood cycle.
Correct Answer: A) State the problem. Gather, record and verify the necessary data.
Analyze and interpret. Neighborhood analysis. Neighborhood cycle. Site analysis.
Rationale: The appraisal process must always begin with "Defining the Problem"
(identifying the purpose of the appraisal). Only after the goal is set can the appraiser gather
data and perform the subsequent analyses.
Question 8
Marcus goes before a notary public to verify the signing of a deed. The act of the notary
witnessing the signature and signing the document is known as:
A) Autograph
B) Attestation
C) Caveat Emptor
D) Estoppel
E) Acknowledgment
Correct Answer: B) Attestation
Rationale: Attestation is the act of witnessing a signature on a legal document and
subscribing (signing) it as a witness. This is a prerequisite for recording a deed in the public
record.
Question 9
Timothy holds Power of Attorney and manages all the real estate affairs for a deceased estate.
What type of agent is Timothy?
A) Special Agent
B) Single Agent
C) Universal Agent
D) Agency Coupled with Interest
E) Subagent
Correct Answer: C) Universal Agent
Rationale: A Universal Agent is authorized to perform all acts that can be lawfully delegated
| VERIFIED ANSWERS | UPDATED VERSION
Adeeb decides to raise the listing price of his condo by $20,000 the day before an open house.
Maria, his listing agent, must document this change. Which of the following is the legally
required method for Maria to handle this contractual change?
A) Maria may cross out the old price and write the new one on the original listing agreement.
B) No change is needed as the listing price is just a guide for negotiations.
C) Maria must use a price change or extension form.
D) Maria must wait until an offer is made to change the price.
E) Only the broker of record can make the change via a verbal agreement.
Correct Answer: C) Maria must change the listing price on a price change or extension
form.
Rationale: In California, any material change to a listing agreement must be made in
writing using the appropriate amendment forms (such as a Price Change or Extension of
Listing). This ensures a clear paper trail and protects the interests of all parties.
Question 2
Tameka is 16 years old, lives in Canada, and wants to apply for a 4-year California salesperson’s
license. Which of the following identifies why she is currently ineligible?
A) She has not completed three college-level real estate courses.
B) She is under the age of 18.
C) She cannot provide proof of legal presence in the United States.
D) Both A and B are correct.
E) All of the above (A, B, and C) are correct.
Correct Answer: E) All of the above (A, B, and C) are correct.
Rationale: To obtain a California real estate license, an applicant must be at least 18 years
old, have completed the required pre-license education (3 courses), and provide proof of
legal presence (citizenship or legal residency) in the U.S.
Question 3
Anthony is adding a deck to his home and has obtained the necessary permits. His neighbor
claims Anthony needs a California State Contractor’s License to work on his own property.
Which statement is correct?
A) The neighbor is correct; all major work requires a license.
B) Anthony is correct; a homeowner never needs a license regardless of the project's future.
C) Anthony is correct; a license is not required for a property owner working on their own
property unless they plan to sell the finished project shortly after.
D) Anthony needs a license only if the deck exceeds 100 square feet.
E) Anthony only needs the license if he hires his neighbor to help.
Correct Answer: C) Anthony is correct. Unless the property owner is planning to sell the
finished real estate project, he does not need a license to work on his own property.
, 2
Rationale: The "Owner-Builder" exemption allows individuals to build or improve their
own property without a contractor’s license, provided the property is not intended for sale
within one year of completion.
Question 4
Janice’s broker holds an earnest money check awaiting seller acceptance. The broker informs the
seller’s agent via telephone after the offer is presented. Why is this handled incorrectly?
A) The broker failed to inform the seller in writing.
B) The broker must inform the seller at the exact time the offer is presented.
C) Earnest money must always be deposited within 24 hours regardless of instructions.
D) Both A and B are correct.
E) The broker should have cashed the check immediately.
Correct Answer: D) Both A and C (Note: Based on prompt logic, A and B/C specifics apply).
Rationale: California law requires a broker to disclose the existence of a check being held
uncashed to the seller in writing. Furthermore, this disclosure should occur at the time the
offer is presented, not afterward.
Question 5
Katie and Rich are selling their home FSBO. A broker "on the sly" shows the home to potential
buyers without permission, and the couple decides to "go along" with it. Which type of agency is
created?
A) Implied Agency
B) Ostensible Agency
C) Agency by Ratification
D) Written Agency
E) Special Agency
Correct Answer: B) Ostensible Agency
Rationale: Ostensible (or Apparent) Agency is created when a principal leads a third party
to believe that a person is their agent, or when the principal allows an individual to act as
an agent without objection, thereby "holding out" that person as an agent.
Question 6
Which of the following is a true characteristic of "General Taxes" in real estate?
A) They are Ad Valorem taxes.
B) They are used for the general operation of the governmental agency.
C) They are based on the assessed valuation of the property.
D) All of the above are true.
E) None of the above are true.
Correct Answer: D) All of the Above
Rationale: General real property taxes are "Ad Valorem" (according to value). They are
, 3
calculated based on the property's value and fund general public services like schools,
police, and fire protection.
Question 7
Ross is a new appraiser. Which of the following represents the correct initial order of the
appraisal process?
A) State the problem; Gather, record, and verify data; Analyze and interpret.
B) Analyze and interpret; State the problem; Gather data.
C) Gather data; Site analysis; State the problem.
D) State the problem; Site analysis; Gather data.
E) Site analysis; Neighborhood analysis; Neighborhood cycle.
Correct Answer: A) State the problem. Gather, record and verify the necessary data.
Analyze and interpret. Neighborhood analysis. Neighborhood cycle. Site analysis.
Rationale: The appraisal process must always begin with "Defining the Problem"
(identifying the purpose of the appraisal). Only after the goal is set can the appraiser gather
data and perform the subsequent analyses.
Question 8
Marcus goes before a notary public to verify the signing of a deed. The act of the notary
witnessing the signature and signing the document is known as:
A) Autograph
B) Attestation
C) Caveat Emptor
D) Estoppel
E) Acknowledgment
Correct Answer: B) Attestation
Rationale: Attestation is the act of witnessing a signature on a legal document and
subscribing (signing) it as a witness. This is a prerequisite for recording a deed in the public
record.
Question 9
Timothy holds Power of Attorney and manages all the real estate affairs for a deceased estate.
What type of agent is Timothy?
A) Special Agent
B) Single Agent
C) Universal Agent
D) Agency Coupled with Interest
E) Subagent
Correct Answer: C) Universal Agent
Rationale: A Universal Agent is authorized to perform all acts that can be lawfully delegated
