California Real Estate Practice
Mock Exam
Course Introduction
California Real Estate Practice is a comprehensive course that introduces students to the fundamental principles and essential skills required for a successful career in real estate within California. The course covers topics such as listing and selling residential properties, handling disclosures, mortgage financing, escrow procedures, marketing techniques, prospecting, client representation, and adherence to California's regulations and ethical standards. Through case studies and real-world scenarios, students gain practical experience in negotiating contracts, conducting open houses, and navigating the complexities of California's real estate market, preparing them to meet the professional demands of the industry.
Recommended Textbook
California Real Estate Principles 9th Edition by
Dennis J. McKenzie
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15 Chapters
624 Verified Questions
624 Flashcards
Source URL: https://quizplus.com/study-set/3880
Page 2
Chapter 1: Introduction to Real Estate
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45 Verified Questions
45 Flashcards
Source URL: https://quizplus.com/quiz/77312
Sample Questions
Q1) The definition of land includes all but one of the following:
A) airspace above the land
B) hills and valleys
C) rocks and soil
D) oil deposits beneath the surface of the land
Answer: D
Q2) The state law that prevents agents from discriminating when providing real estate services to the public:
A) Fair Housing Act
B) Rumford Act
C) Unruh Civil Rights Act
D) Housing Financial Discrimination Act
Answer: C
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Chapter 2: Part I: Legal Description, Method of Acquiring
Title , and Deeds
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69 Verified Questions
69 Flashcards
Source URL: https://quizplus.com/quiz/77311
Sample Questions
Q1) Which one of the following is a correct statement regarding tenancy in common?
A) of the four unities, only the unity of possession is required
B) the same right of survivorship exists as in joint tenancy
C) each owner has an equal interest in the property
D) upon the death of one co-owner, no probate is required
Answer: A
Q2) Mr. Rhu deeds a life estate to Ms. Silva with the stipulation that upon her death the property comes back to him. If Rhu and Silva are killed together in an auto accident, who gets the property?
A) it escheats to the state
B) Rhu's heirs and devisees
C) Silva's heirs
D) the county where property is located
Answer: B
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Chapter 3: Encumbrances, Liens, and Homesteads
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40 Verified Questions
40 Flashcards
Source URL: https://quizplus.com/quiz/77310
Sample Questions
Q1) If a zoning law permits a use of a property that is prohibited by a valid deed restriction, the normal rule is that the:
A) zoning will prevail
B) deed restriction will prevail
C) homeowner's association ruling will prevail
D) owner's personal desire will prevail
Answer: B
Q2) A judgment is considered to be what type of lien?
A) constructive
B) voluntary
C) general
D) specific
Answer: C
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Page 5
Chapter 4: Real Estate Agency
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40 Verified Questions
40 Flashcards
Source URL: https://quizplus.com/quiz/77309
Sample Questions
Q1) Which of the following is not correct?
A) all real estate salespersons must have written employment contracts with their brokers
B) real estate salespersons are able to contract directly in their own name as an agent with the seller
C) the recovery fund may be used to reimburse qualified principals and buyers for damages suffered because of certain inappropriate acts by real estate licensees
D) most real estate agency agreements are between sellers and brokers, not buyers and brokers
Q2) A California broker wants to sell her brother's property in Las Vegas.
A) She can do this with the permission of the state of California.
B) She can do this with the Real Estate Commissioner's permission.
C) She can refer the listing to a Nevada real estate broker and they can agree to share the commission.
D) She cannot do this because she does not know Nevada real estate law.
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6
Chapter 5: Real Estate Contracts and Mandated
Disclosures
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40 Verified Questions
40 Flashcards
Source URL: https://quizplus.com/quiz/77308
Sample Questions
Q1) A broker's commission is most likely earned when the broker:
A) secures acceptance of an offer
B) secures a substantial deposit with an offer
C) communicates acceptance to the offeror
D) communicates offer to seller
Q2) An owner gives ABC Realty an exclusive agency listing for 60 days. Thirty days later the owner finds a buyer and sells the property without the services of ABC Realty. The:
A) owner owes ABC Realty a commission
B) owner does not owe a commission
C) the sale is invalid
D) two of the answers are correct
Q3) The disclosure requirement that is concerned with special flood areas, dam failure, high fire severity, wild and forest fire, earthquake fault zone, and seismic hazard zones, is the:
A) Natural Hazard Disclosure Statement
B) Real Estate Transfer Disclosure Statement
C) Home Inspection Notice
D) Real Property Disclosure Act
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Chapter 6: Practical Real Estate Mathematics
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40 Verified Questions
40 Flashcards
Source URL: https://quizplus.com/quiz/77307
Sample Questions
Q1) An owner sold a property for a $100,000 profit. The $100,000 represents a 25% profit on the selling price. What was the selling price?
A) $250,000
B) $300,000
C) $375,000
D) $400,000
Q2) An owner decided to list a time share for $87,500. The broker sold the time share for 6% less than the listed price. The commission totaled $6,580. The percentage rate of the commission is:
A) 5%
B) 8%
C) 6%
D) 4%
Q3) If an investor purchases a mountain ski cabin for $120,000 cash and the monthly net rental income is $600, what is the rate of return on the investment?
A) 11%
B) 15%
C) 6%
D) 4.5%
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Page 8
Chapter 7: Introduction to Real Estate Finance
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34 Verified Questions
34 Flashcards
Source URL: https://quizplus.com/quiz/77306
Sample Questions
Q1) An owner sells and the buyer takes over the existing loan. To relieve the seller of primary liability, the buyer must:
A) sign a non-recourse agreement
B) take title contingent upon the note and trust deed
C) take title subject to the note and trust deed
D) assume the note and trust deed
Q2) A clause in a trust deed that states that the lender's rights shall become secondary to a new trust deed is called:
A) an alienation clause
B) a subordination clause
C) a submortgage
D) an escalation clause
Q3) An annual percentage rate (APR):
A) is not an interest rate but rather a percentage rate that reflects the effective interest rate on the loan.
B) is an interest rate that includes tax service fees.
C) is not an interest rate; it is a fee for lending.
D) is an interest rate that only applies to refinancing.
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Chapter 8: Part I: Real Estate Lenders
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40 Verified Questions
40 Flashcards
Source URL: https://quizplus.com/quiz/77305
Sample Questions
Q1) Under the Real Property Loan Law, the maximum amount a borrower can pay for closing costs, excluding commission, regardless of the size of the loan, is:
A) 5%
B) $390
C) $700
D) $900
Q2) For an REIT to avoid double taxation, it must distribute what percentage of its income each year to the shareholders/investors?
A) 85%
B) 90%
C) 95%
D) 100%
Q3) Real Estate Investment Trusts (also known as REIT):
A) were created to encourage small investors to invest in real estate transactions with other small investors
B) operate in the second trust deed market
C) are usually a two year loan
D) invest in savings banks
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Chapter 9: Real Estate Appraisal
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40 Verified Questions
40 Flashcards
Source URL: https://quizplus.com/quiz/77304
Sample Questions
Q1) The type of appraisal report required by most lenders is the:
A) loan report
B) self-contained report
C) summary report
D) letter form report
Q2) A loss in value because of a poor floor plan is an example of:
A) economic obsolescence
B) accrual for depreciation
C) functional obsolescence
D) physical deterioration
Q3) Find the value by use of the income approach. (round to the nearest $100)
1) an older three-unit apartment rents for $1,000 per month per unit
2) vacancy factor of 5%
3) annual operating expenses $10,000
4) capitalization rate of 8%
A) $302,500
B) $288,000
C) $276,500
D) $275,000
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Page 11
Chapter 10: The Role of Escrow and Title Insurance Companies
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40 Verified Questions
40 Flashcards
Source URL: https://quizplus.com/quiz/77303
Sample Questions
Q1) Which of the following is not exempt from the escrow licensing law?
A) trust companies
B) escrow companies
C) title insurance companies
D) real estate brokers when acting as an agent in the transaction
Q2) Sales price $295,000, buyer puts on new 80% loan and pays 1% loan fee, $45 tax service fee, $400 tax prorations, $175 structural pest control inspection fee, $20 credit report, $20 recording fees, $910 hazard insurance fee, and a $600 escrow fee. How much will the buyer need to close escrow?
A) $4,530
B) $37,740
C) $63,530
D) $68,360
Q3) With a gross annual multiplier of 12, a duplex that rents one unit for $575 per month and the other for $625 should have an estimated value of:
A) $137,200
B) $146,000
C) $150,000
D) $172,800
Page 12
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Chapter 11: Landlord and Tenant Relations
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40 Verified Questions
40 Flashcards
Source URL: https://quizplus.com/quiz/77302
Sample Questions
Q1) Which is an example of a "buyer pays" closing cost?
A) appraisal fee
B) prepayment fee
C) documentary transfer tax
D) real estate commission
Q2) It is illegal to screen and eliminate potential tenants based on:
A) income levels
B) credit rating
C) past delinquent rental history
D) marital status
Q3) Which is not an obligation of the tenant:
A) To pay rent
B) to not interfere with other tenants
C) To give a 60 notice before vacating on a month to month tenancy
D) not to damage the premises
Q4) A professional property manager
A) is required to have a real estate license
B) must reside on the premises
C) is typically a salaried employee of the property owner
D) all charge the same amount for their services
Page 13
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Chapter 12: Land-Use Planning, Subdivisions, Fair Housing, and
Other Public Controls
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39 Verified Questions
39 Flashcards
Source URL: https://quizplus.com/quiz/77301
Sample Questions
Q1) The first step in urban planning is to:
A) begin a comprehensive plan
B) formulate the community goals
C) implement the general plan
D) provide long range goals
Q2) Which of the following statements is not true in regard to the issuance of the preliminary public report on a subdivision project?
A) subdividers may take reservations for purchase pending the issuance of the final public report
B) preliminary public reports are ordinarily good for five years
C) it is canceled with the presentation of the final public report
D) it is good for only one year
Q3) A landlord signs a lease and the lessee takes possession but never signs the lease. Under these circumstances, the lease is:
A) valid
B) void
C) voidable
D) illegal
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Chapter 13: Introduction to Taxation
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39 Verified Questions
39 Flashcards
Source URL: https://quizplus.com/quiz/77300
Sample Questions
Q1) Under certain conditions, married couples may exempt up to how much in gains from the sale of a home?
A) $500,000
B) $250,000
C) $125,000
D) $50,000
Q2) The California law that makes it unlawful for businesses to illegally discriminate is the:
A) Fair Housing Act
B) Rumford Act
C) Unruh Act
D) Housing Financial Discrimination (Holden) Act
Q3) A law used to finance public services in newly developed areas that can lead to high assessments for the affected owners is called:
A) Mello-Roos
B) Holden-Aspen
C) Alvareze-Greene
D) Brown-Miller
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Chapter 14: Single-Family Homes and Mobile Homes
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39 Verified Questions
39 Flashcards
Source URL: https://quizplus.com/quiz/77299
Sample Questions
Q1) An investor who has owned a property for 2 years and then sells for a gain most likely will pay:
A) pay capital gains taxes
B) defer the payment of taxes
C) pay only California, not federal taxes
D) not pay taxes as a sale for cash qualifies as a 1031 exchange
Q2) One advantage a two-story home has over a one-story home is:
A) usually less cost per square foot to build
B) ease of access to the roof
C) convenient floor plan for disabled people
D) easier to maintain
Q3) Which of the following is false regarding condominium ownership?
A) There are commercial as well as residential condos.
B) Each owner has an undivided interest in common areas.
C) Airspace within each unit is held as fee simple ownership.
D) All condos are single-level buildings.
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16
Chapter 15: A Career in Real Estate
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39 Verified Questions
39 Flashcards
Source URL: https://quizplus.com/quiz/77298
Sample Questions
Q1) Which of the following needs a real estate license?
A) a person selling their own home
B) a person managing their own rental
C) a full service property manager
D) none of the above need a real estate license
Q2) A real estate licensee can sell used mobile homes provided the mobile homes have been registered with the:
A) Department of Housing and Community Development
B) Federal Housing Administration
C) Department of Veterans Affairs
D) Department of Real Estate
Q3) If an applicant fails an examination, he or she:
A) may not apply for a re-examination at any time
B) must wait a reasonable time after failure notice to apply
C) may apply for a re-examination immediately after notification of failure
D) is limited as to the number of times that an examination may be taken
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