CALIFORNIA REAL ESTATE EXAM REAL EXAM 2023/2024
2 DIFFERENT VERSIONS EACH CONTAINS 150 MULTIPLE
CHOICE QUESTIONS AND DETAILED ANSWERS
1. You are preparing a competitive market analysis on a vacant lot that you hope to list for sale.
Which of the following approaches to value will be used in the development of the estimated
value?
A. Cost approach
B. Gross rent multiplier
C. Income approach
D. Sales comparison approach
D. Sales comparison approach
2. Which of the following comparables would be the most helpful in appraising a home?
A. A similar home sold for nonpayment of taxes.
B. A similar property sold under duress.
C. A similar home sold by a motivated seller to a motivated buyer.
D. A similar home sold by an unwilling seller to an unsure buyer.
C. A similar home sold by a motivated seller to a motivated buyer.
3. The period over which a property may be profitably utilized is called its:
A. economic life
B. amortized life
C. income life
D. net life
A. economic life
4. Wear and tear to the load bearing members of a building would be classified as:
A. functional obsolescence-curable
B. physical deterioration-curable
C. functional obsolescence-incurable
D. physical deterioration-incurable
D. physical deterioration-incurable
5. While the economy is experiencing inflation, interest rates:
A. drop and housing prices rise
B. rise and housing prices drop
,C. rise and housing prices rise
D. None of the above
C. rise and housing prices rise
6. When using the market-data approach to appraise a single-family home, recent sales are
compared to the subject property as to:
A. capitalization rates
B. exterior features only
C. the entire property
D. rental income
the entire property
7. A real estate commission is usually based on the:
A. listing price
B. selling price
C. down payment
D. loan amount
selling price
8. The increase of value with the passage of time describes:
A. appreciation
B. "return on" investment
C. "return of" investment
D. depreciation
appreciation
9. Which of the following statements does NOT correctly describe a fiduciary?
A. A fiduciary owes loyalty to the principal
B. A fiduciary must conform to the principal's legal instructions
C. A fiduciary is an agent
D. A fiduciary is a neutral third party
fiduciary is a neutral third party
10. A broker secured a buyer for his client and the seller accepted. Under which type
of listing could a broker not receive a commission?
A. net listing
B. open listing
C. exclusive listing
D. exclusive authorization and right to sell listing
,net listing
11. Mr. Seller signs an open listing on his home with five different brokers. In this case:
A. each broker has an opportunity to earn the entire commission
B. the brokers will split the commission five ways regardless of who sells it
C. the owner must pay a full commission to all five brokers when it sells
D. the owner must pay the first broker to take the listing no matter who sells it
each broker has an opportunity to earn the entire commission
12. A mortgage is usually accompanied by:
A. a deed
B. a conditional sales contract
C. a title policy
D. a promissory note
a promissory note
13. Failure to perform any of the terms or conditions of a contract is called a(n):
A. novation
B. break
C. addendum
D. breach
breach
14. A parcel of vacant land is listed for $100,000, requiring 20% down with the seller to carry
back the balance. The broker brings in a full-price cash offer, but the owner refuses. The broker
is entitled to:
A. half of the commission
B. the full commission
C. a commission as a percent of the down payment
D. nothing
nothing
15. Under a lease, the leasehold interest lies in the:
A. lessor
B. lessee
C. landlord
D. beneficiary
, lessee
16. Which of the following requires real estate listings to be in writing?
A. Real Estate Law
B. Statute of Frauds
C. CAR
D. None of the above
statue of frauds
17. All of the following listings require that the broker be the "procuring cause" of the
sale if he/she is to be entitled to a commission, EXCEPT:
A. exclusive listing
B. open listing
C. exclusive right to sell listing
D. None of the above
C. exclusive right to sell listing
18. As it relates to the field of real estate, the legal term "theft" would include all of
the following EXCEPT:
A. Entering into a home that is listed on the market and taking valuable items of
personal property that belong to the owners
B. Defrauding clients by siphoning funds from a broker
C. Defrauding lenders by signing as another person
D. Defrauding investors by creating phony trust deeds and notes, selling them, and
using the proceeds for the broker
C. Defrauding lenders by signing as another person
19. Mr. Owner enters into an exclusive listing with Broker X. One week later, Broker X brings in
a full price offer, but Mr. Owner refuses the offer. Seeking an action of Specific Performance
would be an option for:
A. the buyer
B. the broker
C. both the buyer and the broker
D. neither the buyer nor the broker
D. neither the buyer nor the broker
20. Broker Jones takes an exclusive listing on a property owned by three different people. Broker
Jones takes the listing contract to each of their places of business to get it signed. Broker Jones
must: A. give a copy to the first owner who signs only B. give a copy to each owner when he/she
signs C. give one copy to any of the three owners D. get them together in one place to sign at the
same time
2 DIFFERENT VERSIONS EACH CONTAINS 150 MULTIPLE
CHOICE QUESTIONS AND DETAILED ANSWERS
1. You are preparing a competitive market analysis on a vacant lot that you hope to list for sale.
Which of the following approaches to value will be used in the development of the estimated
value?
A. Cost approach
B. Gross rent multiplier
C. Income approach
D. Sales comparison approach
D. Sales comparison approach
2. Which of the following comparables would be the most helpful in appraising a home?
A. A similar home sold for nonpayment of taxes.
B. A similar property sold under duress.
C. A similar home sold by a motivated seller to a motivated buyer.
D. A similar home sold by an unwilling seller to an unsure buyer.
C. A similar home sold by a motivated seller to a motivated buyer.
3. The period over which a property may be profitably utilized is called its:
A. economic life
B. amortized life
C. income life
D. net life
A. economic life
4. Wear and tear to the load bearing members of a building would be classified as:
A. functional obsolescence-curable
B. physical deterioration-curable
C. functional obsolescence-incurable
D. physical deterioration-incurable
D. physical deterioration-incurable
5. While the economy is experiencing inflation, interest rates:
A. drop and housing prices rise
B. rise and housing prices drop
,C. rise and housing prices rise
D. None of the above
C. rise and housing prices rise
6. When using the market-data approach to appraise a single-family home, recent sales are
compared to the subject property as to:
A. capitalization rates
B. exterior features only
C. the entire property
D. rental income
the entire property
7. A real estate commission is usually based on the:
A. listing price
B. selling price
C. down payment
D. loan amount
selling price
8. The increase of value with the passage of time describes:
A. appreciation
B. "return on" investment
C. "return of" investment
D. depreciation
appreciation
9. Which of the following statements does NOT correctly describe a fiduciary?
A. A fiduciary owes loyalty to the principal
B. A fiduciary must conform to the principal's legal instructions
C. A fiduciary is an agent
D. A fiduciary is a neutral third party
fiduciary is a neutral third party
10. A broker secured a buyer for his client and the seller accepted. Under which type
of listing could a broker not receive a commission?
A. net listing
B. open listing
C. exclusive listing
D. exclusive authorization and right to sell listing
,net listing
11. Mr. Seller signs an open listing on his home with five different brokers. In this case:
A. each broker has an opportunity to earn the entire commission
B. the brokers will split the commission five ways regardless of who sells it
C. the owner must pay a full commission to all five brokers when it sells
D. the owner must pay the first broker to take the listing no matter who sells it
each broker has an opportunity to earn the entire commission
12. A mortgage is usually accompanied by:
A. a deed
B. a conditional sales contract
C. a title policy
D. a promissory note
a promissory note
13. Failure to perform any of the terms or conditions of a contract is called a(n):
A. novation
B. break
C. addendum
D. breach
breach
14. A parcel of vacant land is listed for $100,000, requiring 20% down with the seller to carry
back the balance. The broker brings in a full-price cash offer, but the owner refuses. The broker
is entitled to:
A. half of the commission
B. the full commission
C. a commission as a percent of the down payment
D. nothing
nothing
15. Under a lease, the leasehold interest lies in the:
A. lessor
B. lessee
C. landlord
D. beneficiary
, lessee
16. Which of the following requires real estate listings to be in writing?
A. Real Estate Law
B. Statute of Frauds
C. CAR
D. None of the above
statue of frauds
17. All of the following listings require that the broker be the "procuring cause" of the
sale if he/she is to be entitled to a commission, EXCEPT:
A. exclusive listing
B. open listing
C. exclusive right to sell listing
D. None of the above
C. exclusive right to sell listing
18. As it relates to the field of real estate, the legal term "theft" would include all of
the following EXCEPT:
A. Entering into a home that is listed on the market and taking valuable items of
personal property that belong to the owners
B. Defrauding clients by siphoning funds from a broker
C. Defrauding lenders by signing as another person
D. Defrauding investors by creating phony trust deeds and notes, selling them, and
using the proceeds for the broker
C. Defrauding lenders by signing as another person
19. Mr. Owner enters into an exclusive listing with Broker X. One week later, Broker X brings in
a full price offer, but Mr. Owner refuses the offer. Seeking an action of Specific Performance
would be an option for:
A. the buyer
B. the broker
C. both the buyer and the broker
D. neither the buyer nor the broker
D. neither the buyer nor the broker
20. Broker Jones takes an exclusive listing on a property owned by three different people. Broker
Jones takes the listing contract to each of their places of business to get it signed. Broker Jones
must: A. give a copy to the first owner who signs only B. give a copy to each owner when he/she
signs C. give one copy to any of the three owners D. get them together in one place to sign at the
same time
