REAL ESTATE PRINCIPLES EXAM
QUESTIONS WITH ACCURATE
SOLUTIONS 2025\2026 A+ Grade.
California Department of Real Estate
- accurate answers-headed by the Real Estate Commissioner, administers the
real estate license laws, handles advertising, funds, clients and customers.
Real Estate Law
- accurate answers-Section 10000 to 10580
Subdivided Lands Law
- accurate answers-Sections 11000 to 11200
Real Estate General Fund
- accurate answers-8% for Education and Research Fund
12% for Recovery Fund
- Maximum Liability = $50,000 for one transaction, $250,000 for any
Individual
Laws Prohibiting Discrimination
- accurate answers-Civil Rights Act of 1866;
Executive Order 11063;
Civil Rights Act of 1968 (Fair Housing Act)
Equal Credit Opportunity Act (ECOA)
- accurate answers-A federal act, which prohibits discrimination by lenders on
the basis of sex or marital status in any aspect of a credit transaction.
Realtist
- accurate answers-Any real estate licensee who is a member of the National
Association of REALTORS. (NAR)
What is Article 1 of the Ethics Standards?
- accurate answers-Protecting the best interests of the client.
,What does Article 2 of the Ethics Standards require?
- accurate answers-Disclosure of pertinent facts.
What is the focus of Article 9 in the Ethics Standards?
- accurate answers-Get it in writing.
What does Article 12 of the Ethics Standards emphasize?
- accurate answers-Truth in advertising.
What is the principle of Article 16 in the Ethics Standards?
- accurate answers-Respecting another agency relationship.
Livery of Seisin
- accurate answers-When you sell the entire bundle of rights
"I own it and I have the right to sell it."
Economic Characteristics of Land
- accurate answers-DEMAND- more demand, more value;
UTILITY - specific real estate can be more useful than other;
SCARCITY- the fewer houses in an area, the faster they sell;
TRANSFERABILITY - transferring land from seller to buyer;
SITUS- its location is crucial.
Physical Characteristics of Land
- accurate answers-IMMOBILE- Real estate is permanent;
INDESTRUCTIBLE- Land is permanent;
NONHOMOGENEOUS (Uniqueness)- land has unique characteristics.
What is personal property?
- accurate answers-Readily moveable between locations, such as furniture,
automobiles, or money.
When must an agreement for the sale of personal property be in writing?
- accurate answers-If its value exceeds $500.00.
What laws govern the commercial sales of personal property?
- accurate answers-Federal and state laws.
, What must an agreement for the sale of real property include?
- accurate answers-It must be in writing and signed by the party to be
charged.
What governs real property transactions?
- accurate answers-The laws of the situs state.
What system has the state provided for real property?
- accurate answers-A system for recording documents or instruments
affecting the title or interest in real property.
Annexation
- accurate answers-Changes personal property to real property.
Severance
- accurate answers-Changes real property to personal property
Fixture
- accurate answers-An item of personal property that has been converted to
real property by being permanently affixed to the realty.
Determine whether property is real property or personal property
- accurate answers-Method of Attachment;
Adaptability;
Relationship of parties;
Intent of the parties;
Agreement between the parties.
Eminent Domain
- accurate answers-Power of a government to take private property for public
use
Special Assessment
- accurate answers-an amount you must pay above and beyond your normal
property taxes
Riparian Rights
- accurate answers-An owner's rights in land that borders on or includes a
stream, RIVER, or lake. These rights include access to and use of the water.
QUESTIONS WITH ACCURATE
SOLUTIONS 2025\2026 A+ Grade.
California Department of Real Estate
- accurate answers-headed by the Real Estate Commissioner, administers the
real estate license laws, handles advertising, funds, clients and customers.
Real Estate Law
- accurate answers-Section 10000 to 10580
Subdivided Lands Law
- accurate answers-Sections 11000 to 11200
Real Estate General Fund
- accurate answers-8% for Education and Research Fund
12% for Recovery Fund
- Maximum Liability = $50,000 for one transaction, $250,000 for any
Individual
Laws Prohibiting Discrimination
- accurate answers-Civil Rights Act of 1866;
Executive Order 11063;
Civil Rights Act of 1968 (Fair Housing Act)
Equal Credit Opportunity Act (ECOA)
- accurate answers-A federal act, which prohibits discrimination by lenders on
the basis of sex or marital status in any aspect of a credit transaction.
Realtist
- accurate answers-Any real estate licensee who is a member of the National
Association of REALTORS. (NAR)
What is Article 1 of the Ethics Standards?
- accurate answers-Protecting the best interests of the client.
,What does Article 2 of the Ethics Standards require?
- accurate answers-Disclosure of pertinent facts.
What is the focus of Article 9 in the Ethics Standards?
- accurate answers-Get it in writing.
What does Article 12 of the Ethics Standards emphasize?
- accurate answers-Truth in advertising.
What is the principle of Article 16 in the Ethics Standards?
- accurate answers-Respecting another agency relationship.
Livery of Seisin
- accurate answers-When you sell the entire bundle of rights
"I own it and I have the right to sell it."
Economic Characteristics of Land
- accurate answers-DEMAND- more demand, more value;
UTILITY - specific real estate can be more useful than other;
SCARCITY- the fewer houses in an area, the faster they sell;
TRANSFERABILITY - transferring land from seller to buyer;
SITUS- its location is crucial.
Physical Characteristics of Land
- accurate answers-IMMOBILE- Real estate is permanent;
INDESTRUCTIBLE- Land is permanent;
NONHOMOGENEOUS (Uniqueness)- land has unique characteristics.
What is personal property?
- accurate answers-Readily moveable between locations, such as furniture,
automobiles, or money.
When must an agreement for the sale of personal property be in writing?
- accurate answers-If its value exceeds $500.00.
What laws govern the commercial sales of personal property?
- accurate answers-Federal and state laws.
, What must an agreement for the sale of real property include?
- accurate answers-It must be in writing and signed by the party to be
charged.
What governs real property transactions?
- accurate answers-The laws of the situs state.
What system has the state provided for real property?
- accurate answers-A system for recording documents or instruments
affecting the title or interest in real property.
Annexation
- accurate answers-Changes personal property to real property.
Severance
- accurate answers-Changes real property to personal property
Fixture
- accurate answers-An item of personal property that has been converted to
real property by being permanently affixed to the realty.
Determine whether property is real property or personal property
- accurate answers-Method of Attachment;
Adaptability;
Relationship of parties;
Intent of the parties;
Agreement between the parties.
Eminent Domain
- accurate answers-Power of a government to take private property for public
use
Special Assessment
- accurate answers-an amount you must pay above and beyond your normal
property taxes
Riparian Rights
- accurate answers-An owner's rights in land that borders on or includes a
stream, RIVER, or lake. These rights include access to and use of the water.
