CALIFORNIA REAL ESTATE EXAM NEWEST 2026
ACTUAL EXAM TEST BANK| COMPLETE 650 REAL
EXAM QUESTIONS AND CORRECT DETAILED ANSWERS
(VERIFIED ANSWERS) ALREADY GRADED A+| CA REAL
ESTATE EXAM PREP (MOST RECENT!!)
1. A real estate broker is the agent of the seller. To whom
does the broker owe fiduciary duties?
Answer: The principal (seller)
Rationale: Fiduciary duties are owed exclusively to the
principal/client. In a seller agency relationship, the listing broker
serves as the agent of the seller, making the seller the principal.
Fiduciary duties include loyalty, confidentiality, disclosure,
obedience, reasonable care, and accounting. These duties are
not owed to buyers or third parties, though licensees must still
treat all parties honestly and fairly .
2. Which statement correctly characterizes an "exclusive
agency listing"?
Answer: The seller retains the right to sell the property without
paying a commission if they find the buyer themselves
1
,Rationale: In an exclusive agency listing, the seller authorizes
one broker to act as the exclusive agent but retains the right to
sell the property without owing a commission to the broker. If the
seller finds their own buyer, no commission is owed. This differs
from an exclusive right-to-sell listing, where the broker earns a
commission regardless of who finds the buyer .
3. The fiduciary duty of disclosure requires a listing broker to
disclose information about a buyer's financial ability to the
seller. What type of information falls under this duty?
Answer: The buyer's delinquent child support payments that
affect financial qualification
Rationale: A listing broker owes the seller the duty to disclose
relevant information that could affect the seller's decision-
making, including a prospective buyer's ability to complete the
purchase. Financial issues such as delinquent child support
payments that would impact loan qualification must be disclosed
to the seller. However, the fiduciary duty of disclosure differs
from the duty to disclose material facts about the property, which
is owed to all parties .
2
,4. A listing broker guides a prospective buyer on negotiation
tactics to purchase a property without ever discussing agency
representation. What type of agency relationship may have
been created unintentionally?
Answer: An implied agency
Rationale: An implied agency can be created unintentionally or
by accident, without written formalities or explicit agreement. By
providing negotiation advice to the prospective buyer, the listing
broker engaged in conduct reserved for clients, potentially
creating an implied agency and fiduciary duties to the buyer.
This creates an illegal undisclosed dual agency if the broker
already represents the seller .
5. When a real estate broker acts as a property manager, what
type of agency authority do they typically have?
Answer: General agency authority
Rationale: A property manager typically serves as a general
agent with authority to perform ongoing business activities,
including hiring repair technicians, screening tenants, collecting
rent, and managing day-to-day operations. In contrast, a listing
3
, broker is a special agent with limited authority to find a buyer
but not bind the seller to a contract .
6. What is the highest form of property ownership recognized
by law in California?
Answer: Fee simple absolute
Rationale: Fee simple absolute is the most complete and highest
form of ownership recognized by law. It grants the owner the
maximum possible rights to possess, use, transfer, encumber, and
dispose of the property, with ownership lasting indefinitely.
Other forms of ownership such as life estates, leaseholds, and
future interests convey fewer rights .
7. Four siblings own a property in equal shares. If one sibling
dies, their share automatically passes to the surviving
siblings. What form of ownership is this?
Answer: Joint tenancy with right of survivorship
Rationale: Joint tenancy is characterized by four unities: time,
title, interest, and possession. The right of survivorship means that
when one joint tenant dies, their interest automatically passes to
4
ACTUAL EXAM TEST BANK| COMPLETE 650 REAL
EXAM QUESTIONS AND CORRECT DETAILED ANSWERS
(VERIFIED ANSWERS) ALREADY GRADED A+| CA REAL
ESTATE EXAM PREP (MOST RECENT!!)
1. A real estate broker is the agent of the seller. To whom
does the broker owe fiduciary duties?
Answer: The principal (seller)
Rationale: Fiduciary duties are owed exclusively to the
principal/client. In a seller agency relationship, the listing broker
serves as the agent of the seller, making the seller the principal.
Fiduciary duties include loyalty, confidentiality, disclosure,
obedience, reasonable care, and accounting. These duties are
not owed to buyers or third parties, though licensees must still
treat all parties honestly and fairly .
2. Which statement correctly characterizes an "exclusive
agency listing"?
Answer: The seller retains the right to sell the property without
paying a commission if they find the buyer themselves
1
,Rationale: In an exclusive agency listing, the seller authorizes
one broker to act as the exclusive agent but retains the right to
sell the property without owing a commission to the broker. If the
seller finds their own buyer, no commission is owed. This differs
from an exclusive right-to-sell listing, where the broker earns a
commission regardless of who finds the buyer .
3. The fiduciary duty of disclosure requires a listing broker to
disclose information about a buyer's financial ability to the
seller. What type of information falls under this duty?
Answer: The buyer's delinquent child support payments that
affect financial qualification
Rationale: A listing broker owes the seller the duty to disclose
relevant information that could affect the seller's decision-
making, including a prospective buyer's ability to complete the
purchase. Financial issues such as delinquent child support
payments that would impact loan qualification must be disclosed
to the seller. However, the fiduciary duty of disclosure differs
from the duty to disclose material facts about the property, which
is owed to all parties .
2
,4. A listing broker guides a prospective buyer on negotiation
tactics to purchase a property without ever discussing agency
representation. What type of agency relationship may have
been created unintentionally?
Answer: An implied agency
Rationale: An implied agency can be created unintentionally or
by accident, without written formalities or explicit agreement. By
providing negotiation advice to the prospective buyer, the listing
broker engaged in conduct reserved for clients, potentially
creating an implied agency and fiduciary duties to the buyer.
This creates an illegal undisclosed dual agency if the broker
already represents the seller .
5. When a real estate broker acts as a property manager, what
type of agency authority do they typically have?
Answer: General agency authority
Rationale: A property manager typically serves as a general
agent with authority to perform ongoing business activities,
including hiring repair technicians, screening tenants, collecting
rent, and managing day-to-day operations. In contrast, a listing
3
, broker is a special agent with limited authority to find a buyer
but not bind the seller to a contract .
6. What is the highest form of property ownership recognized
by law in California?
Answer: Fee simple absolute
Rationale: Fee simple absolute is the most complete and highest
form of ownership recognized by law. It grants the owner the
maximum possible rights to possess, use, transfer, encumber, and
dispose of the property, with ownership lasting indefinitely.
Other forms of ownership such as life estates, leaseholds, and
future interests convey fewer rights .
7. Four siblings own a property in equal shares. If one sibling
dies, their share automatically passes to the surviving
siblings. What form of ownership is this?
Answer: Joint tenancy with right of survivorship
Rationale: Joint tenancy is characterized by four unities: time,
title, interest, and possession. The right of survivorship means that
when one joint tenant dies, their interest automatically passes to
4
