1
CALIFORNIA REAL ESTATE PRINCIPLE EXAM LATEST UPDATES -
2025/2026- ACTUAL QUESTIONS AND CORRECT ANSWERS
ALREADY GRADED A+ GUARANTEED SUCCESS
(1) 6. The sale or transfer of goods ordinarily held for sale in the course of
business is governed in California by the?
a. Business Opportunity Code
b. Commercial Transfer Law
c. Uniform Commercial Code
d. Real Estate Law
Uniform Commercial Code
(1) 7. Todd, an officer of Ajax Corporation and not a real estate licensee,
successfully negotiated the purchase of the Smith Widget Plant on behalf of Ajax.
Todd received a commission on the sale in addition to his normal salary. Todd
a. did not need a real estate license for the deal
b. should have had a real estate license
c. is exempt from licensing requirements
d. None of these
should have had a real estate license
, 2
(1) 3. Salesperson Sam owns 25% of the outstanding shares of Rollo Realty, Inc.,
and broker Barbara Rollo owns the remaining shares. This division of ownership
is?
a. acceptable
b. mandated
c. discouraged
d. prohibited
acceptable
(1) 4. Salesperson Sam is part owner of Rollo Realty, Inc. In the broker's absence,
Sam frequently reviews the work of sales associates. This is?
a. acceptable
b. mandated
c. discouraged
d. prohibited
prohibited
(1) 5. A real estate business that is a partnership can have more than one office
location, provided
a. a broker partner obtains an additional license for each location
b. all partners are real estate licensees
c. there is a designated broker-officer
d. there is at least one partner at each location
a broker partner obtains an additional license for each location
(1) 8. If a real estate license is NOT renewed before it expires, the licensee?
, 3
a. is allowed to complete transactions in progress
b. is allowed to finish transactions that are substantially complete
c. must cease all real estate activities
d. may act under authority of another agent's license for a period not to exceed
60 days
must cease all real estate activities
(1) 9. A real estate licensee can offer a mobile home for sale that is?
a. in a manufacturing plant, ready for delivery
b. transportable under an exemption from the vehicle code
c. presold
d. in a location where it can legally remain for one year
in a location where it can legally remain for one year
(1) 10. The Browns desperately want to move to Pine Bend, and they like the
Smith House, which is listed by broker Bob. The Browns tell Bob they will make it
worth his while if he can persuade the Smith's to accept the Brown offer on their
house, and the Browns send an expensive food basket to Bob as a sign of their
good faith. Bob neglects to mention this to the Smiths. This practice is
a. acceptable
b. mandated
c. discouraged
d. prohibited
prohibited
, 4
(1) 11. Broker Bob routinely places earnest money deposits in his personal
account for overnight safekeeping. This practice is
a. acceptable
b. mandated
c. discouraged
d. prohibited
prohibited
(1) 12. Broker Luis has an exclusive listing agreement with the Pierces. The listing
will terminate "when the parties agree". This practice is
a. acceptable
b. mandated
c. discouraged
d. prohibited
prohibited
(1) 13. When broker Bob exercised his option to buy Whiteacre, he presented to
the owner of Whiteacre a written statement of his expected profit in the
transaction. The seller agreed to proceed with the sale. This conduct is
a. acceptable
b. mandated
c. discouraged
d. prohibited
mandated
CALIFORNIA REAL ESTATE PRINCIPLE EXAM LATEST UPDATES -
2025/2026- ACTUAL QUESTIONS AND CORRECT ANSWERS
ALREADY GRADED A+ GUARANTEED SUCCESS
(1) 6. The sale or transfer of goods ordinarily held for sale in the course of
business is governed in California by the?
a. Business Opportunity Code
b. Commercial Transfer Law
c. Uniform Commercial Code
d. Real Estate Law
Uniform Commercial Code
(1) 7. Todd, an officer of Ajax Corporation and not a real estate licensee,
successfully negotiated the purchase of the Smith Widget Plant on behalf of Ajax.
Todd received a commission on the sale in addition to his normal salary. Todd
a. did not need a real estate license for the deal
b. should have had a real estate license
c. is exempt from licensing requirements
d. None of these
should have had a real estate license
, 2
(1) 3. Salesperson Sam owns 25% of the outstanding shares of Rollo Realty, Inc.,
and broker Barbara Rollo owns the remaining shares. This division of ownership
is?
a. acceptable
b. mandated
c. discouraged
d. prohibited
acceptable
(1) 4. Salesperson Sam is part owner of Rollo Realty, Inc. In the broker's absence,
Sam frequently reviews the work of sales associates. This is?
a. acceptable
b. mandated
c. discouraged
d. prohibited
prohibited
(1) 5. A real estate business that is a partnership can have more than one office
location, provided
a. a broker partner obtains an additional license for each location
b. all partners are real estate licensees
c. there is a designated broker-officer
d. there is at least one partner at each location
a broker partner obtains an additional license for each location
(1) 8. If a real estate license is NOT renewed before it expires, the licensee?
, 3
a. is allowed to complete transactions in progress
b. is allowed to finish transactions that are substantially complete
c. must cease all real estate activities
d. may act under authority of another agent's license for a period not to exceed
60 days
must cease all real estate activities
(1) 9. A real estate licensee can offer a mobile home for sale that is?
a. in a manufacturing plant, ready for delivery
b. transportable under an exemption from the vehicle code
c. presold
d. in a location where it can legally remain for one year
in a location where it can legally remain for one year
(1) 10. The Browns desperately want to move to Pine Bend, and they like the
Smith House, which is listed by broker Bob. The Browns tell Bob they will make it
worth his while if he can persuade the Smith's to accept the Brown offer on their
house, and the Browns send an expensive food basket to Bob as a sign of their
good faith. Bob neglects to mention this to the Smiths. This practice is
a. acceptable
b. mandated
c. discouraged
d. prohibited
prohibited
, 4
(1) 11. Broker Bob routinely places earnest money deposits in his personal
account for overnight safekeeping. This practice is
a. acceptable
b. mandated
c. discouraged
d. prohibited
prohibited
(1) 12. Broker Luis has an exclusive listing agreement with the Pierces. The listing
will terminate "when the parties agree". This practice is
a. acceptable
b. mandated
c. discouraged
d. prohibited
prohibited
(1) 13. When broker Bob exercised his option to buy Whiteacre, he presented to
the owner of Whiteacre a written statement of his expected profit in the
transaction. The seller agreed to proceed with the sale. This conduct is
a. acceptable
b. mandated
c. discouraged
d. prohibited
mandated
