Real Estate Licensing Exam Questions
Course Introduction
This course provides a comprehensive overview of the principles and practices necessary to obtain a real estate license. It covers essential topics such as property ownership, land use regulations, contracts, agency relationships, real estate finance, appraisal, and ethics. Students will also examine state and federal laws governing real estate transactions, fair housing guidelines, and the role of the real estate agent in residential and commercial sales. The course is designed to prepare learners for the real estate licensing exam and to equip them with the foundational knowledge necessary to launch a successful career in the real estate 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) A real estate broker is most frequently the agent of the:
A) seller
B) buyer
C) lender
D) escrow company
Answer: A
Q2) When anything is fastened or attached to real property in such a manner as to ensure its permanence, it is considered to be:
A) personal property
B) real property
C) private property
D) separate property
Answer: B
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3
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 of the following would be considered real property?
A) a potted plant in the backyard
B) patio furniture
C) a chandelier
D) a washing machine
Answer: C
Q2) 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
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Chapter 3: Encumbrances, Liens, and Homesteads
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40 Verified Questions
40 Flashcards
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Sample Questions
Q1) A homestead, within the statutory amounts, will not protect against:
A) after recorded judgments
B) mechanics' liens
C) unsecured money debts that become secured by judgments
D) after recorded attachments
Answer: B
Q2) Deed restrictions that apply to all lots in a new subdivision are created by the:
A) lender
B) government
C) developer
D) broker
Answer: C
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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) The maximum dollar amount for an individual claim against the Real Estate Recovery Fund is:
A) $10,000
B) $50,000
C) $20,000
D) $100,000
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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) Which of the following indicates the greatest progress toward completion of a sale?
A) buyer advised broker that buyer would sign acceptance of seller's counter offer
B) broker notified buyer of seller's signed acceptance of buyer's offer
C) seller informed broker that seller would accept the lower price offered by buyer
D) broker advises principal that broker has a signed offer to buy per the listing terms
Q2) Under an option agreement, the grantor/owner of the property is the:
A) optionee
B) option holder
C) option owner
D) optionor
Q3) A broker has an agency agreement to represent just the buyer. This is an example of a:
A) dual agency
B) single agency
C) in-house agency
D) listing agency
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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) A duplex rents for $700 per unit per month. Expenses and vacancies run 30% of gross rents. With a capitalization rate of 6%, what is the value?
A) $196,000
B) $110,000
C) $168,000
D) $174,500
Q2) An owner sold a mobile home and received $23,500 from escrow. This was the net after paying $240 in expenses plus a 7% commission. What was the selling price?
A) $26,500
B) $24,527
C) $15,530
D) $25,527
Q3) 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
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8
Chapter 7: Introduction to Real Estate Finance
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34 Verified Questions
34 Flashcards
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Sample Questions
Q1) In a trustee's sale, the proceeds of the sale were sufficient to pay the demands of the first and second trust deed holders, foreclosure costs, and provide a small cash surplus. What is the priority schedule for the distribution of the cash proceeds?
A) trustor; first trust deed; second trust deed; foreclosure costs
B) foreclosure costs; trustor; first trust deed; second trust deed
C) first trust deed; second trust deed; foreclosure costs; trustor
D) second trust deed; first trust deed; foreclosure costs; trustor
Q2) In an ARM loan, the distance between the borrower's rate and the index is called the: A) cap
B) adjustment
C) margin
D) teaser
Q3) A lot is sold for $180,000, making a 20% profit over cost. What was the cost?
A) $136,000
B) $144,000
C) $148,000
D) $150,000
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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) A type of financing instrument in which the owner (vendor) retains the legal title until the buyer (vendee) fulfills the terms of the purchase contract:
A) lease contract
B) installment sales contract
C) wraparound contract
D) junior lien contract
Q2) 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
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) Real estate appraisers are needed to:
A) determine values for real property taxes.
B) help set premiums on fire policies.
C) estimate real estate loan values.
D) all of the above.
Q2) In evaluating a house that has an actual age of 15 years, the appraiser assigned it an age of only 10 years because of the home's excellent condition. This is an example of:
A) effective age
B) chronological age
C) economic age
D) physical age
Q3) "Value in use" refers to:
A) how a particular property can be used.
B) the value of a particular property to a particular owner or user of real estate.
C) what the property is worth.
D) market value.
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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) An example of functional obsolescence would be
A) olive green kitchen appliances
B) a noisy street
C) a leaky roof
D) a broken oven
Q2) Prepaid property taxes would appear as a prorated:
A) credit to buyer
B) debit to buyer
C) debit to seller
D) charge to lender
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
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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) Implied right of habitability means the:
A) landlord guarantees the residential unit meets housing codes
B) tenant agrees to maintain the residential unit
C) government is responsible for the tenant's safety
D) lender insists the property meets housing standards
Q2) If an owner deeds a property encumbered by an existing lease, the new owner is best described as the:
A) grantor-lessee
B) grantee-lessee
C) grantor-lessor
D) grantee-lessor
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 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) Which of the following is not a material change that requires an amended public report?
A) placement of a billboard on a highway showing the location of the subdivision
B) change in the purchase contract forms
C) readjustment of lot sizes
D) sale of five or more lots to a single buyer
Q2) A tenant may not be evicted in retaliation for using the rental offset for
A) one year
B) six months
C) 90 days
D) none of the above
Q3) All subdivisions offered for sale in California must provide a Real Estate Commissioner-approved disclosures if the land is located in:
A) any state in the nation
B) rural areas of California only
C) urban areas of California only
D) any area of California
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Page 14
Chapter 13: Introduction to Taxation
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39 Verified Questions
39 Flashcards
Source URL: https://quizplus.com/quiz/77300
Sample Questions
Q1) To qualify for installment sale reporting, a seller must:
A) trade up to a more expensive property
B) carry paper
C) acquire like for like property
D) receive no boot
Q2) The type of development in which an owner obtains an individual deed to his or her living unit and has an undivided interest in all the land and common areas is a:
A) planned unit development
B) community apartment
C) stock cooperative
D) condominium
Q3) The county tax assessor's duty is to determine:
A) the tax rate to be applied to assessed values
B) assignment of parcel numbers to current secured tax rolls
C) tax to be paid by the property owner
D) value of the property for tax purposes
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15
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) 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.
Q2) A real estate licensee should have a basic understanding of construction terms. One thing he or she should know is that the foundation of a standard built home rests upon the:
A) floor joist
B) sole plate
C) footing
D) collar beam
Q3) One architectural design of a home is a one-story structure with a low-pitched roof and a ground-hugging floor plan. This best describes what type of home?
A) modern or contemporary
B) California bungalow
C) California Cape Cod
D) Monterey
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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) To obtain a real estate sales license, an applicant must pass approved college-level courses in:
A) business ethics
B) psychology
C) real estate principles, practice, and one other DRE approved course
D) sales skills
Q2) Commission rates for real estate agents are established by:
A) the Real Estate Commissioner
B) local boards of real estate
C) multiple listing organizations
D) negotiations
Q3) What is not a factor to consider when to determine investment potential?
A) Risk
B) Liquidity
C) Carpet quality
D) Management requirements
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