CALIFORNIA REAL ESTATE EXAM 3 LATEST VERSIONS (VERSION
A, B AND C) ACTUAL EXAM 350 QUESTIONS AND CORRECT
DETAILED ANSWERS
Licensee A has out-of-town relatives come to visit and he shows them several
listings. He ends up helping them rent a property with an option to purchase. He
should make a disclosure to: - ANSWER: The Seller
Which of the following cannot obtain a broker's license? - ANSWER: Partnership
A person who had leased a property for three years had to move out of state before
the lease expired. In reading the lease, there was no mention of either subleasing or
assigning the lease. The lessee: - ANSWER: May sublease or assign the lease
Which of the following would not be required payment for the lessee under a net
lease: - ANSWER: Lease commission
Which of the following phrases in a rental ad would not be illegal? - ANSWER:
"Female roommate"
In the eyes of the Real Estate Commissioner, any individual employed as a
salesperson by a licensed real estate broker is considered to be: - ANSWER: An
employee
A landlord is trying to evict a tenant and serves an eviction notice. Under what
circumstances could the tenant remain in the property: - ANSWER: The tenant has
not had hot water for months; Unlawful entry by the landlord; The lessor failed to
repair a weak staircase
A buyer sings the Offer to Purcahse and the seller accepts the offer. The buyer's
agent delivers the signed acceptance to the buyer along with the Seller's Transfer
Disclosure Statement. How long does the buyer have to rescind the contract? -
ANSWER: 3 days
Richard owned a vacant lot free and clear. He decided to build a home on the lot. On
May 1, lumber was delivered to the lot at a cost of $8,000. On May 2, a first trust
deed $150,000 was recorded against the property to finance the construciton. On
September 15, painters started work on the property with their bill totaling $3,000.
The project was completed and Joe did not pay the bills for the lumber and the
painting. Two mechanic's liens were filed for $8,000 and $3,000. The property went
into foreclosure and sold for $150,000. Ignoring the expenses of the sale,
approximately how much did the lender on the first trust deed received as a result of
the sale? - ANSWER: $139,000
The year in which brokers became required to disclose asbestos is: - ANSWER: 1986
, In applying the principles of Easton v. Strassburger case, real estate licensees are
obligated to give prospective buyers of certain real estate: - ANSWER: A list of
known defect and those that should be known
Broker Ortiz takes a buyer Tom out to see several properties. They work together for
about 3 weeks. A couple of weeks later, Broker Davis shows Tom a house which Tom
buys. The commission would be paid to: - ANSWER: Broker Davis receives the entire
commission and could share with Broker Ortiz if he wishes
A sublease is: - ANSWER: Less than an assignment
Which of the following is not deducted from gross income to determine annual net
income when using the capitalization approach to appraise an income producing
property: - ANSWER: Cost of capital
Brokers A and B each have an open listing on a property. Broker A shows the
property to a buyer and carries on negotiations, but the buyer decides not to buy.
Two weeks later Broker B contacts the same buyer and arranges a sale of the
property. The seller is obligated to pay a commission as follows: - ANSWER: Full
amount to Broker B only
When a deed contains discriminatory language or clauses: - ANSWER: The
discriminatory words or clauses are unenforceable
Pest control reports which contain information concerning wood destroying insects
are kept on file with: - ANSWER: The Structural Pest Control Board
A tenant has a three year lease with the lessor of an apartment building. At the end
of year one, the tenant is transferred to another city. The lease between the lessor
and lessee is silent on the tenant's ability to sublease or assign the lease. In this case:
- ANSWER: The lessee may either assign or sublease the apartment, without the
lessor's permission
Taylor was injured while swimming in Smith's new pool. Taylor obtained a $2,500
judgment against Smith and recorded an abstract of judgment with the county
recorder. This created: - ANSWER: A general lien
Evans owns a new personal residence. The transportation agency is widening the
street in front of his residence. This will cause Evans to lose 10 feet along the front of
his property which border the street. This is an example of: - ANSWER: Economic
obsolescence
How long does a buyer have to sue the seller of a single family dwelling for
something that was not disclosed, but should have been disclosed, after the buyer
moves into the home? - ANSWER: 2 years
A, B AND C) ACTUAL EXAM 350 QUESTIONS AND CORRECT
DETAILED ANSWERS
Licensee A has out-of-town relatives come to visit and he shows them several
listings. He ends up helping them rent a property with an option to purchase. He
should make a disclosure to: - ANSWER: The Seller
Which of the following cannot obtain a broker's license? - ANSWER: Partnership
A person who had leased a property for three years had to move out of state before
the lease expired. In reading the lease, there was no mention of either subleasing or
assigning the lease. The lessee: - ANSWER: May sublease or assign the lease
Which of the following would not be required payment for the lessee under a net
lease: - ANSWER: Lease commission
Which of the following phrases in a rental ad would not be illegal? - ANSWER:
"Female roommate"
In the eyes of the Real Estate Commissioner, any individual employed as a
salesperson by a licensed real estate broker is considered to be: - ANSWER: An
employee
A landlord is trying to evict a tenant and serves an eviction notice. Under what
circumstances could the tenant remain in the property: - ANSWER: The tenant has
not had hot water for months; Unlawful entry by the landlord; The lessor failed to
repair a weak staircase
A buyer sings the Offer to Purcahse and the seller accepts the offer. The buyer's
agent delivers the signed acceptance to the buyer along with the Seller's Transfer
Disclosure Statement. How long does the buyer have to rescind the contract? -
ANSWER: 3 days
Richard owned a vacant lot free and clear. He decided to build a home on the lot. On
May 1, lumber was delivered to the lot at a cost of $8,000. On May 2, a first trust
deed $150,000 was recorded against the property to finance the construciton. On
September 15, painters started work on the property with their bill totaling $3,000.
The project was completed and Joe did not pay the bills for the lumber and the
painting. Two mechanic's liens were filed for $8,000 and $3,000. The property went
into foreclosure and sold for $150,000. Ignoring the expenses of the sale,
approximately how much did the lender on the first trust deed received as a result of
the sale? - ANSWER: $139,000
The year in which brokers became required to disclose asbestos is: - ANSWER: 1986
, In applying the principles of Easton v. Strassburger case, real estate licensees are
obligated to give prospective buyers of certain real estate: - ANSWER: A list of
known defect and those that should be known
Broker Ortiz takes a buyer Tom out to see several properties. They work together for
about 3 weeks. A couple of weeks later, Broker Davis shows Tom a house which Tom
buys. The commission would be paid to: - ANSWER: Broker Davis receives the entire
commission and could share with Broker Ortiz if he wishes
A sublease is: - ANSWER: Less than an assignment
Which of the following is not deducted from gross income to determine annual net
income when using the capitalization approach to appraise an income producing
property: - ANSWER: Cost of capital
Brokers A and B each have an open listing on a property. Broker A shows the
property to a buyer and carries on negotiations, but the buyer decides not to buy.
Two weeks later Broker B contacts the same buyer and arranges a sale of the
property. The seller is obligated to pay a commission as follows: - ANSWER: Full
amount to Broker B only
When a deed contains discriminatory language or clauses: - ANSWER: The
discriminatory words or clauses are unenforceable
Pest control reports which contain information concerning wood destroying insects
are kept on file with: - ANSWER: The Structural Pest Control Board
A tenant has a three year lease with the lessor of an apartment building. At the end
of year one, the tenant is transferred to another city. The lease between the lessor
and lessee is silent on the tenant's ability to sublease or assign the lease. In this case:
- ANSWER: The lessee may either assign or sublease the apartment, without the
lessor's permission
Taylor was injured while swimming in Smith's new pool. Taylor obtained a $2,500
judgment against Smith and recorded an abstract of judgment with the county
recorder. This created: - ANSWER: A general lien
Evans owns a new personal residence. The transportation agency is widening the
street in front of his residence. This will cause Evans to lose 10 feet along the front of
his property which border the street. This is an example of: - ANSWER: Economic
obsolescence
How long does a buyer have to sue the seller of a single family dwelling for
something that was not disclosed, but should have been disclosed, after the buyer
moves into the home? - ANSWER: 2 years
