California Real Estate Broker Questions
With Correct Answers (Verified Answers)
Plus Rationales 2026 Q&A | Instant
Download Pdf
1. A real estate broker’s fiduciary duty to a client includes all of the
following EXCEPT:
A. Loyalty
B. Disclosure
C. Obedience
D. Profit maximization for broker
Correct Answer: D
Rationale: A broker must act in the client’s best interest, but is not
required to maximize their own profit at the client’s expense.
2. Which document is typically required to create an agency
relationship in California?
A. Oral agreement only
B. Written agreement
C. Court order
D. Escrow instruction
Correct Answer: B
,Rationale: Most real estate agency relationships must be confirmed in
writing to comply with disclosure and enforceability standards.
3. A listing agreement without a termination date is:
A. Valid indefinitely
B. Void
C. Voidable
D. Automatically renewed yearly
Correct Answer: C
Rationale: A listing without a termination date is generally considered
voidable due to lack of essential contract terms.
4. In California, the statute of frauds requires real estate contracts to
be:
A. Notarized
B. Oral
C. In writing
D. Registered with county
Correct Answer: C
Rationale: Contracts for the sale or transfer of real property must be in
writing to be enforceable.
5. The primary purpose of an escrow account is to:
,A. Increase broker income
B. Hold funds for third parties
C. Pay broker commissions
D. Finance property taxes
Correct Answer: B
Rationale: Escrow accounts safely hold funds belonging to others during
transactions.
6. A dual agency occurs when:
A. Two brokers represent buyer and seller separately
B. One broker represents both buyer and seller
C. Two agents work under different firms
D. Buyer has two agents
Correct Answer: B
Rationale: Dual agency exists when one broker represents both parties
in a transaction.
7. Which statement about an exclusive right-to-sell listing is TRUE?
A. Only seller can sell property
B. Broker earns commission regardless of who sells
C. Listing cannot be canceled
D. Buyer representation is included
Correct Answer: B
, Rationale: The broker earns commission no matter who finds the buyer
during the listing period.
8. The Real Estate Commissioner is appointed by:
A. Governor of California
B. State Legislature
C. Supreme Court
D. Local County Board
Correct Answer: A
Rationale: The California Governor appoints the Real Estate
Commissioner.
9. Which of the following is considered a fixture?
A. Sofa
B. Television
C. Built-in cabinet
D. Lamp
Correct Answer: C
Rationale: Fixtures are permanently attached items that become part of
the property.
10. The purpose of the deed is to:
A. Provide financing
B. Transfer title
With Correct Answers (Verified Answers)
Plus Rationales 2026 Q&A | Instant
Download Pdf
1. A real estate broker’s fiduciary duty to a client includes all of the
following EXCEPT:
A. Loyalty
B. Disclosure
C. Obedience
D. Profit maximization for broker
Correct Answer: D
Rationale: A broker must act in the client’s best interest, but is not
required to maximize their own profit at the client’s expense.
2. Which document is typically required to create an agency
relationship in California?
A. Oral agreement only
B. Written agreement
C. Court order
D. Escrow instruction
Correct Answer: B
,Rationale: Most real estate agency relationships must be confirmed in
writing to comply with disclosure and enforceability standards.
3. A listing agreement without a termination date is:
A. Valid indefinitely
B. Void
C. Voidable
D. Automatically renewed yearly
Correct Answer: C
Rationale: A listing without a termination date is generally considered
voidable due to lack of essential contract terms.
4. In California, the statute of frauds requires real estate contracts to
be:
A. Notarized
B. Oral
C. In writing
D. Registered with county
Correct Answer: C
Rationale: Contracts for the sale or transfer of real property must be in
writing to be enforceable.
5. The primary purpose of an escrow account is to:
,A. Increase broker income
B. Hold funds for third parties
C. Pay broker commissions
D. Finance property taxes
Correct Answer: B
Rationale: Escrow accounts safely hold funds belonging to others during
transactions.
6. A dual agency occurs when:
A. Two brokers represent buyer and seller separately
B. One broker represents both buyer and seller
C. Two agents work under different firms
D. Buyer has two agents
Correct Answer: B
Rationale: Dual agency exists when one broker represents both parties
in a transaction.
7. Which statement about an exclusive right-to-sell listing is TRUE?
A. Only seller can sell property
B. Broker earns commission regardless of who sells
C. Listing cannot be canceled
D. Buyer representation is included
Correct Answer: B
, Rationale: The broker earns commission no matter who finds the buyer
during the listing period.
8. The Real Estate Commissioner is appointed by:
A. Governor of California
B. State Legislature
C. Supreme Court
D. Local County Board
Correct Answer: A
Rationale: The California Governor appoints the Real Estate
Commissioner.
9. Which of the following is considered a fixture?
A. Sofa
B. Television
C. Built-in cabinet
D. Lamp
Correct Answer: C
Rationale: Fixtures are permanently attached items that become part of
the property.
10. The purpose of the deed is to:
A. Provide financing
B. Transfer title
