CA Real Estate State Exam Crash Course/ 682
Q&A with Rationales/ Already Graded A+.
When transferring certain real property, the California Civil Codes states that a transfer
disclosure statement is to be delivered by which of the following?
A - The transferor
B - A wife to her husband in part of a divorce situation
C - The trustee when part of a trustee sale
D - Probate court as part of the probate sale - Answer: A - The transferor
Answer Feedback: Per the California Civil Code, if you are part of a divorce, a probate sale, or
trustee's sale you are exempt from delivering a transfer disclosure statement.
Of the following, which answer describes why it is critically important to disclose who
represents whom in a real estate transaction?
Page 1 of 270
,A - all of these
B - because of the doctrine of imputed notice
C - because of the ethical and professional responsibility to do so
D - because of the legal effect of the disclosure - Answer: A - all of these
Answer Feedback: All of the answers given are valid reasons for the agency disclosure.
If a contract is obtained under duress, that contract is:
A - voidable
B - void
C - discharged
D - unenforceable - Answer: A - voidable
Answer Feedback: The person who was under duress can void the contract if they choose to.
Of the following, which would create a dual agency situation?
A - An agent is representing both the buyer and seller in the same transaction and all parties are
aware and agree
B - A listing agent working peacefully with the selling agent
C - Two brokers have a listing for the same property
D - The listing agent has five open escrows simultaneously - Answer: A - An agent is
representing both the buyer and seller in the same transaction and all parties are aware and
agree
Page 2 of 270
,Answer Feedback: Dual agency occurs when the same agent represents both parties, buyer and
seller, in the same transaction.
When a false transfer disclosure statement is given to a buyer that omits facts about the
property , how long does the buyer have to bring a lawsuit against the seller and the broker?
A - 2 years
B - 6 months
C - 1 year
D - 1.5 years - Answer: A - 2 years
Answer Feedback: A buyer has two years to bring a lawsuit against the seller and the broker for
a false disclosure statement that omits material facts.
A real estate licensee may represent both sides of a real estate transaction, and:
A - all of these must be present
B - all principals involved must be aware that they will be represented by the same person
C - the agency relationship has been disclosed and written consent is given by all parties
involved
D - a commission may be paid by each of the principals - Answer: A - all of these must be
present
Answer Feedback: A licensee may represent both sides in a transaction as long as the proper
disclosure is completed which makes both principals aware and consent is given. A commission
may be received from the buyer and the seller.
During an "exclusive right to sell" listing contract, the principal no longer wishes the broker to
work for them. The principal may:
Page 3 of 270
, A - revoke the listing, however the seller may be held liable for damages
B - be forced to stay with the broker.
C - do nothing. The principal understands that an exclusive right to sell listing contract cannot be
broken
D - cancel the listing and cannot be held liable for damages - Answer: A - revoke the listing,
however the seller may be held liable for damages
Answer Feedback: An exclusive right to sell listing agreement is an employment contract and
like all contracts can be broken. However the broker could sue for the monetary value of his
time, advertising, and expertise.
Which of the following does not require agency disclosure?
A - A lease for 10 months
B - The sale of a mobile home through a broker
C - The sale of a life estate
D - The exchange of a life estate through a realtor - Answer: A - A lease for 10 months
Answer Feedback: The law of agency requires agency disclosure for lease terms greater than
one year.
A broker who is hired by a property owner to sell their property must reveal all significant and
material information to the seller. Of the following, which would be considered significant
and/or material information and must be revealed?
A - The agent has been told by another broker that a higher priced offer is coming within the
hour
B - The potential buyer is a female
Page 4 of 270
Q&A with Rationales/ Already Graded A+.
When transferring certain real property, the California Civil Codes states that a transfer
disclosure statement is to be delivered by which of the following?
A - The transferor
B - A wife to her husband in part of a divorce situation
C - The trustee when part of a trustee sale
D - Probate court as part of the probate sale - Answer: A - The transferor
Answer Feedback: Per the California Civil Code, if you are part of a divorce, a probate sale, or
trustee's sale you are exempt from delivering a transfer disclosure statement.
Of the following, which answer describes why it is critically important to disclose who
represents whom in a real estate transaction?
Page 1 of 270
,A - all of these
B - because of the doctrine of imputed notice
C - because of the ethical and professional responsibility to do so
D - because of the legal effect of the disclosure - Answer: A - all of these
Answer Feedback: All of the answers given are valid reasons for the agency disclosure.
If a contract is obtained under duress, that contract is:
A - voidable
B - void
C - discharged
D - unenforceable - Answer: A - voidable
Answer Feedback: The person who was under duress can void the contract if they choose to.
Of the following, which would create a dual agency situation?
A - An agent is representing both the buyer and seller in the same transaction and all parties are
aware and agree
B - A listing agent working peacefully with the selling agent
C - Two brokers have a listing for the same property
D - The listing agent has five open escrows simultaneously - Answer: A - An agent is
representing both the buyer and seller in the same transaction and all parties are aware and
agree
Page 2 of 270
,Answer Feedback: Dual agency occurs when the same agent represents both parties, buyer and
seller, in the same transaction.
When a false transfer disclosure statement is given to a buyer that omits facts about the
property , how long does the buyer have to bring a lawsuit against the seller and the broker?
A - 2 years
B - 6 months
C - 1 year
D - 1.5 years - Answer: A - 2 years
Answer Feedback: A buyer has two years to bring a lawsuit against the seller and the broker for
a false disclosure statement that omits material facts.
A real estate licensee may represent both sides of a real estate transaction, and:
A - all of these must be present
B - all principals involved must be aware that they will be represented by the same person
C - the agency relationship has been disclosed and written consent is given by all parties
involved
D - a commission may be paid by each of the principals - Answer: A - all of these must be
present
Answer Feedback: A licensee may represent both sides in a transaction as long as the proper
disclosure is completed which makes both principals aware and consent is given. A commission
may be received from the buyer and the seller.
During an "exclusive right to sell" listing contract, the principal no longer wishes the broker to
work for them. The principal may:
Page 3 of 270
, A - revoke the listing, however the seller may be held liable for damages
B - be forced to stay with the broker.
C - do nothing. The principal understands that an exclusive right to sell listing contract cannot be
broken
D - cancel the listing and cannot be held liable for damages - Answer: A - revoke the listing,
however the seller may be held liable for damages
Answer Feedback: An exclusive right to sell listing agreement is an employment contract and
like all contracts can be broken. However the broker could sue for the monetary value of his
time, advertising, and expertise.
Which of the following does not require agency disclosure?
A - A lease for 10 months
B - The sale of a mobile home through a broker
C - The sale of a life estate
D - The exchange of a life estate through a realtor - Answer: A - A lease for 10 months
Answer Feedback: The law of agency requires agency disclosure for lease terms greater than
one year.
A broker who is hired by a property owner to sell their property must reveal all significant and
material information to the seller. Of the following, which would be considered significant
and/or material information and must be revealed?
A - The agent has been told by another broker that a higher priced offer is coming within the
hour
B - The potential buyer is a female
Page 4 of 270
