8/22/25, 11:04 PM California: Real Estate Principles Practice Exam 1
California: Real Estate Principles Practice Exam 1
\newest version updated 50 questions and accurate
detailed answers \verified answers \latest update
2025-2026
1 of 50 - Which form of A. A percentage of income.
payment is most common
for a property manager?
A. A percentage of income.
B. A salary.
C. A flat fee.
D. All of the Above
2 of 50 - Which of the B. A geological hazard.
following is exempt from
the Natural Hazards
Disclosure?
A. A special flood area.
B. A geological hazard.
C. A wildland high fire severity
area.
D. A seismic hazard zone.
1/41
,8/22/25, 11:04 PM California: Real Estate Principles Practice Exam 1
3 of 50 - Shakeel and A. In Contract
Shaheen have sold their
home, made an offer on
Derek and Kamisha's
home, and the offer was
accepted. All the details of
the sale have been worked
out, agreed upon and
signatures obtained. Now,
Shakeel and Shaheen must
obtain a loan for the
property. What is the best
term to describe their
position in the transaction's
timeline?
A. In Contract
B. Chain of Title
C. Abstract and Opinion
D. Both B and C
4 of 50 - Ted and Lisa are D. Ted and Lisa are clients, and Steven is a customer.
selling their home and have The listing agent must disclose to Steven that he/she
signed a listing agreement. represents Ted and Lisa and explain customer
Client or customer? Steven relationships.
visits Ted and Lisa's open
house, and he is interested
in
purchasing their home.
What happens next? Is
Steven a client or
customer?
A. Ted and Lisa are
customers, and Steven is a
client. The listing agent must
disclose to Steven that Ted
and Lisa are customers.
2/41
,8/22/25, 11:04 PM California: Real Estate Principles Practice Exam 1
B. Ted and Lisa are clients, as
is Steven. The listing agent
must disclose to Steven
that Ted and Lisa are also
clients.
C. Ted and Lisa are
customers, and Steven is a
client. The listing agent must
disclose to Steven that
he/she represents Ted and
Lisa and explain customer
relationships
D. Ted and Lisa are clients,
and Steven is a customer.
The listing agent must
disclose to Steven that
he/she represents Ted and
Lisa and explain customer
relationships.
5 of 50 - In early common C. The transfer of land from father to son, upon the father's
law, transfers of land were death.
only made when:
A. The transfer of land
from husband to wife,
upon the husband's
death.
B. The transfer of land from
father to child, upon the
father's death.
C. The transfer of land from
father to son, upon the
father's death.
D. Both A and B
3/41
, 8/22/25, 11:04 PM California: Real Estate Principles Practice Exam 1
6 of 50 - What are the parts A. A Pledge and Collateral. A Pledge is a promise to
of a mortgage loan? What pay; and Collateral allows a lender the right to
purpose does each part foreclose if the borrower does not pay.
serve?
A. A Pledge and Collateral.
A Pledge is a promise to
pay; and Collateral
allows a lender the right
to foreclose if the
borrower does not pay.
B. A Promissory Note, a Deed
of Trust, and Collateral. A
Promissory Note is an I.O.U.
to pay; a Deed of Trust
secures the interest in a
borrower's real property;
and Collateral allows a
lender the right to
foreclose if the borrower
does not pay.
C. A Pledge and Collateral. A
Pledge
allows a lender the right to
foreclose if the borrower
does not pay; and Collateral
is a promise to pay.
D. None of the Above.
7 of 50 - Jack is leasing a A. Jack has the possessory right and Justin the reversionary right.
home from Justin for a year.
He has decided to lease until
he gets a good feel for the
area and knows
where he wants to buy. In
this relationship, who has
the reversionary right and
who has the possessory
right ?
4/41
California: Real Estate Principles Practice Exam 1
\newest version updated 50 questions and accurate
detailed answers \verified answers \latest update
2025-2026
1 of 50 - Which form of A. A percentage of income.
payment is most common
for a property manager?
A. A percentage of income.
B. A salary.
C. A flat fee.
D. All of the Above
2 of 50 - Which of the B. A geological hazard.
following is exempt from
the Natural Hazards
Disclosure?
A. A special flood area.
B. A geological hazard.
C. A wildland high fire severity
area.
D. A seismic hazard zone.
1/41
,8/22/25, 11:04 PM California: Real Estate Principles Practice Exam 1
3 of 50 - Shakeel and A. In Contract
Shaheen have sold their
home, made an offer on
Derek and Kamisha's
home, and the offer was
accepted. All the details of
the sale have been worked
out, agreed upon and
signatures obtained. Now,
Shakeel and Shaheen must
obtain a loan for the
property. What is the best
term to describe their
position in the transaction's
timeline?
A. In Contract
B. Chain of Title
C. Abstract and Opinion
D. Both B and C
4 of 50 - Ted and Lisa are D. Ted and Lisa are clients, and Steven is a customer.
selling their home and have The listing agent must disclose to Steven that he/she
signed a listing agreement. represents Ted and Lisa and explain customer
Client or customer? Steven relationships.
visits Ted and Lisa's open
house, and he is interested
in
purchasing their home.
What happens next? Is
Steven a client or
customer?
A. Ted and Lisa are
customers, and Steven is a
client. The listing agent must
disclose to Steven that Ted
and Lisa are customers.
2/41
,8/22/25, 11:04 PM California: Real Estate Principles Practice Exam 1
B. Ted and Lisa are clients, as
is Steven. The listing agent
must disclose to Steven
that Ted and Lisa are also
clients.
C. Ted and Lisa are
customers, and Steven is a
client. The listing agent must
disclose to Steven that
he/she represents Ted and
Lisa and explain customer
relationships
D. Ted and Lisa are clients,
and Steven is a customer.
The listing agent must
disclose to Steven that
he/she represents Ted and
Lisa and explain customer
relationships.
5 of 50 - In early common C. The transfer of land from father to son, upon the father's
law, transfers of land were death.
only made when:
A. The transfer of land
from husband to wife,
upon the husband's
death.
B. The transfer of land from
father to child, upon the
father's death.
C. The transfer of land from
father to son, upon the
father's death.
D. Both A and B
3/41
, 8/22/25, 11:04 PM California: Real Estate Principles Practice Exam 1
6 of 50 - What are the parts A. A Pledge and Collateral. A Pledge is a promise to
of a mortgage loan? What pay; and Collateral allows a lender the right to
purpose does each part foreclose if the borrower does not pay.
serve?
A. A Pledge and Collateral.
A Pledge is a promise to
pay; and Collateral
allows a lender the right
to foreclose if the
borrower does not pay.
B. A Promissory Note, a Deed
of Trust, and Collateral. A
Promissory Note is an I.O.U.
to pay; a Deed of Trust
secures the interest in a
borrower's real property;
and Collateral allows a
lender the right to
foreclose if the borrower
does not pay.
C. A Pledge and Collateral. A
Pledge
allows a lender the right to
foreclose if the borrower
does not pay; and Collateral
is a promise to pay.
D. None of the Above.
7 of 50 - Jack is leasing a A. Jack has the possessory right and Justin the reversionary right.
home from Justin for a year.
He has decided to lease until
he gets a good feel for the
area and knows
where he wants to buy. In
this relationship, who has
the reversionary right and
who has the possessory
right ?
4/41
