Real Estate Licensing Preparation Exam Preparation Guide
Course Introduction
This course is designed to prepare students for success on the real estate licensing exam by providing comprehensive coverage of key concepts, principles, laws, and practices essential to the real estate profession. Topics include property ownership, contracts, agency relationships, financing, real estate law, ethical practices, and the responsibilities of a licensed real estate agent. Through a combination of lectures, exam simulations, and review of state-specific requirements, students will gain the foundational knowledge and test-taking strategies needed to confidently approach the licensure examination and pursue a career in real estate.
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) Which of the following is classified as personal property?
A) seasonal crops
B) fixtures
C) land
D) appurtenant easements
Answer: A
Q2) An appraisal is defined as:
A) market price
B) an estimate of value
C) maximum security for a loan
D) actual resale price
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) The recording of a deed gives:
A) actual notice
B) constructive notice
C) right of possession
D) effective notice
Answer: B
Q2) California became a state in:
A) 1803
B) 1848
C) 1849
D) 1850
Answer: D
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4
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) A lessor can protect against a mechanics' lien for unpaid construction work ordered by a lessee by:
A) posting and recording a notice of non-responsibility
B) filing a suit against the contractor for undertaking the work without authorization from the landlord
C) serving the lessee with a notice of responsibility
D) declaring a breach of contract and dispossessing the lessee
Answer: A
Q2) A deeds a life estate to B and upon B's death title is to return to A. This is an example of what type of life estate?
A) estate in reversion
B) estate in reservation
C) estate in remainder
D) estate in severalty
Answer: A
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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) Real estate agencies are created by:
A) special agency.
B) agreement in writing.
C) appointment.
D) none of the above.
Q2) If a seller insists on selling a home "as is":
A) the agent is not required to reveal known defects to prospective buyers
B) the seller is not required to reveal known defects to prospective buyers
C) a buyer beware philosophy prevails in California
D) the prospective buyer is entitled to know all defects known to the seller and real estate agent
Q3) 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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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) An executory contract is a contract that:
A) has been recorded
B) is in writing
C) has been fully performed
D) is yet to be completed
Q2) A broker receives a deposit from a buyer with no instructions to hold the check uncashed pending the seller's acceptance of the offer. After the offer is accepted, the broker decides to put the check in a safe in the office for security purposes until the broker can get to the bank in two weeks. The broker is:
A) guilty of conversion
B) innocent of any wrongdoing
C) guilty of commingling
D) required to place the deposit into a trust fund
Q3) Buyer makes a written bonafide offer to purchase, and seller signs the acceptance. A contract is first created:
A) when buyer receives proper communication of seller's acceptance
B) immediately upon seller's acceptance
C) when the buyer and seller sign escrow instructions
D) when the broker presents the offer to the seller
Page 7
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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 investor wants to acquire income property that will generate a 10% cap rate. A 6-unit apartment complex rents for $950 per unit per month. Vacancies are 5% of gross rents and operating expenses total $20,500 per year. What is the maximum the investor should offer for this property? (round to nearest $1,000)
A) $684,000
B) $573,000
C) $445,000
D) $403,000
Q2) If the seller refuses to sell after signing a valid purchase contract and the buyer wants the property instead of money damages, the buyer will sue for:
A) specific performance
B) reversion of title
C) damages
D) rescission
Q3) Sellers should disclose defects in the property
A) verbally to the buyer
B) on the Transfer Disclosure Statement
C) any time prior to close of escrow
D) only to their agent
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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) RESPA stands for:
A) Real Estate Settlement Procedures Act
B) Real Estate Salesperson Association
C) Real Estate Syndication Planning Act
D) Real Estate Settlement Program Act
Q2) The Real Property Loan Law does not apply to first loans of $30,000 or more and second deed of trust loans of:
A) $5,000
B) $17,500
C) $19,500
D) $20,000
Q3) An enforceable due-on-sale clause is correctly called a/an:
A) acceleration clause
B) alienation clause
C) wrap around clause
D) prepay clause
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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) Which of the following best defines a purchase money mortgage?
A) a mortgage providing for additional advances to the mortgagor without the necessity of writing a new mortgage
B) a single mortgage
C) a mortgage that includes chattels
D) a mortgage used to acquire a property
Q2) In a normal sale using both a grant deed and a trust deed (deed of trust), the buyer is the:
A) grantor and trustor
B) grantor and trustee
C) grantee and trustee
D) grantee and trustor
Q3) The ultimate source of all loan funds is:
A) taxes
B) government spending
C) transfer payments
D) savings
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10
Chapter 9: Real Estate Appraisal
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40 Verified Questions
40 Flashcards
Source URL: https://quizplus.com/quiz/77304
Sample Questions
Q1) Which of the following is not an annual operating expense?
A) real property taxes
B) deferred maintenance
C) janitor's wages
D) utility expenses
Q2) All things being equal, the higher the market gross rent multiplier compared to the subject property gross rent multiplier, the:
A) better the buy
B) lower the expenses
C) higher the vacancy
D) worse the buy
Q3) The essentials of value include all of the following, except:
A) age
B) utility
C) scarcity
D) demand
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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 a recurring closing cost?
A) Fire insurance
B) Recording fees
C) Notary fees
D) Appraisal fee
Q2) For an escrow to be valid, there must be a:
A) conditional delivery of transfer documents to a third party
B) real estate agent in the transaction
C) title insurance policy
D) sixty-day limit on the closing date
Q3) The market approach would be given the most weight if appraising a:
A) new home
B) new apartment
C) five-year-old home
D) special purpose property
Q4) Escrow is a process whereby a neutral third party acts on behalf of the:
A) buyer, seller, buyer's agent, and seller's agent
B) title company
C) selling agent and listing agent
D) buyer and seller only
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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) A landlord signs a 3-year binding residential lease with a tenant. Six months later, the landlord wishes the tenant to move so the landlord's father can occupy the apartment. The tenant will be forced to move after the landlord serves a:
A) 3-day notice
B) 30-day notice
C) 60-day notice
D) the tenant cannot be forced to move
Q2) When a valid lease is assigned, the assignee receives the entire leasehold interest and becomes:
A) an assignor
B) a tenant
C) a landlord
D) a sublessor
Q3) A history of title transfers for a particular parcel of land is a/an:
A) preliminary report
B) title insurance policy
C) abstracter index
D) chain of title
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Chapter 12: Land-Use Planning, Subdivisions,
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 would be the best example of a breach of habitability?
A) pool furniture
B) missing hand railings
C) poor lighting
D) inoperable plumbing
Q2) If a person purchases the right to occupy a unit for a certain designated period each year, this is called:
A) undivided ownership
B) time share ownership
C) cooperative ownership
D) estate for years ownership
Q3) How many units would there have to be in an apartment building to make it necessary for the owner to hire an onsite resident manager?
A) 20 or more units
B) 18 or more units
C) 16 or more units
D) 14 or more units
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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) Which of the following is true?
A) a person cannot use a homeowner's exemption and a veteran's exemption on the same home
B) real property taxes become a lien on the first Monday in March
C) a 12% penalty is added for delinquent property taxes
D) California has special property tax exemptions for senior citizens 45 years or older
Q2) The Subdivision Map Act is enforced by
A) the Real Estate Commissioner
B) Housing and Urban Development (HUD)
C) the local city or county
D) the Attorney General
Q3) In a 1031 real estate exchange, a tax liability arises if the person exchanging receives:
A) like kind property
B) boot
C) income property
D) investment property
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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) When foreigners sell U. S. property, the Foreign Investment in Real Property Tax Act (FIRPTA) may require what percentage to be withheld from the sale proceeds?
A) 3 1/3%
B) 5%
C) 10%
D) 13%
Q2) Instead of buying a vacation home, many people buy:
A) RVs
B) time shares
C) undivided interest in recreational developments
D) all of the above
Q3) The advantages of renting sometimes outweigh the advantages of buying. For instance, when renting you can move more easily if the occasion requires. This advantage is known in real estate as:
A) convenience
B) mobility
C) transferable
D) liquidity
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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) The Real Estate Law exempts some people from needing a real estate license. Which of the following are not exempt?
A) onsite resident managers of apartment buildings
B) clerical employees of lending institutions
C) any person who receives compensation (commission) for performance of an act defined within the realm of a salesperson's licensing
D) attorneys while practicing law
Q2) A passing score on the real estate salesperson's examination is:
A) 50%
B) 70%
C) 75%
D) 80%
Q3) In a business opportunity sale, the payment for continued patronage is called:
A) bulk sale
B) goodwill
C) blue sky
D) net worth
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