California Real Estate Exam Practice
Questions With Correct Answers
(Verified Answers) Plus Rationales 2026
Q&A | Instant Download Pdf
1. A valid real estate contract must include:
A. Oral agreement only
B. Written agreement signed by only one party
C. Legal purpose, competent parties, mutual consent,
consideration
D. Approval from the MLS
Answer: C
A valid contract requires legal purpose, competent parties, mutual
consent, and consideration.
2. Which document is used to transfer ownership of real property?
A. Lease
B. Deed
C. Mortgage
D. Listing agreement
Answer: B
A deed is the legal instrument used to transfer ownership of real
property.
, 3. The California Real Estate Commissioner is appointed by:
A. Governor
B. Legislature
C. Supreme Court
D. County Boards
Answer: A
The Real Estate Commissioner is appointed by the Governor of
California.
4. A fiduciary duty requires a licensee to:
A. Work only for buyers
B. Act in best interest of client
C. Disclose nothing
D. Increase commission
Answer: B
Fiduciary duty requires loyalty and acting in the best interest of the
client.
5. Which of the following is a fixture?
A. Sofa
B. Refrigerator (plug-in)
C. Built-in cabinet
D. Lamp
,Answer: C
Fixtures are items permanently attached to real property like built-in
cabinets.
6. Escrow is:
A. A loan type
B. A neutral third-party holding funds/documents
C. A tax
D. A broker fee
Answer: B
Escrow holds funds and documents until conditions of a transaction
are met.
7. Which law prohibits discrimination in housing in California?
A. Sherman Act
B. Fair Housing Act (federal) and Rumford Act (state)
C. Brown Act
D. Statute of Frauds
Answer: B
California and federal fair housing laws prohibit housing
discrimination.
8. A listing agreement is:
A. Unilateral contract
B. Employment contract between seller and broker
, C. Lease agreement
D. Loan agreement
Answer: B
A listing agreement creates an agency relationship between seller and
broker.
9. Which of the following is a general lien?
A. Property tax lien
B. Mortgage lien
C. Mechanic’s lien
D. HOA lien
Answer: A
A general lien attaches to all property of a debtor, like a tax lien.
10. The purpose of a deed of trust is to:
A. Transfer taxes
B. Secure a loan
C. Appraise property
D. Lease property
Answer: B
A deed of trust secures repayment of a loan using real property as
collateral.
11. The statute of frauds requires:
A. Oral contracts
Questions With Correct Answers
(Verified Answers) Plus Rationales 2026
Q&A | Instant Download Pdf
1. A valid real estate contract must include:
A. Oral agreement only
B. Written agreement signed by only one party
C. Legal purpose, competent parties, mutual consent,
consideration
D. Approval from the MLS
Answer: C
A valid contract requires legal purpose, competent parties, mutual
consent, and consideration.
2. Which document is used to transfer ownership of real property?
A. Lease
B. Deed
C. Mortgage
D. Listing agreement
Answer: B
A deed is the legal instrument used to transfer ownership of real
property.
, 3. The California Real Estate Commissioner is appointed by:
A. Governor
B. Legislature
C. Supreme Court
D. County Boards
Answer: A
The Real Estate Commissioner is appointed by the Governor of
California.
4. A fiduciary duty requires a licensee to:
A. Work only for buyers
B. Act in best interest of client
C. Disclose nothing
D. Increase commission
Answer: B
Fiduciary duty requires loyalty and acting in the best interest of the
client.
5. Which of the following is a fixture?
A. Sofa
B. Refrigerator (plug-in)
C. Built-in cabinet
D. Lamp
,Answer: C
Fixtures are items permanently attached to real property like built-in
cabinets.
6. Escrow is:
A. A loan type
B. A neutral third-party holding funds/documents
C. A tax
D. A broker fee
Answer: B
Escrow holds funds and documents until conditions of a transaction
are met.
7. Which law prohibits discrimination in housing in California?
A. Sherman Act
B. Fair Housing Act (federal) and Rumford Act (state)
C. Brown Act
D. Statute of Frauds
Answer: B
California and federal fair housing laws prohibit housing
discrimination.
8. A listing agreement is:
A. Unilateral contract
B. Employment contract between seller and broker
, C. Lease agreement
D. Loan agreement
Answer: B
A listing agreement creates an agency relationship between seller and
broker.
9. Which of the following is a general lien?
A. Property tax lien
B. Mortgage lien
C. Mechanic’s lien
D. HOA lien
Answer: A
A general lien attaches to all property of a debtor, like a tax lien.
10. The purpose of a deed of trust is to:
A. Transfer taxes
B. Secure a loan
C. Appraise property
D. Lease property
Answer: B
A deed of trust secures repayment of a loan using real property as
collateral.
11. The statute of frauds requires:
A. Oral contracts
