California Real Estate Quiz Questions

33 Questions | Total Attempts: 68

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California Real Estate Quiz Questions - Quiz

Questions and Answers
  • 1. 
    The California Real Estate Commissioner has the authority to:
    • A. 

      Assess damages against real estate licensees who engage in fraudulent activities

    • B. 

      Promulgate rules and regulations to promote the enforcement of the California real estate laws

    • C. 

      Issue non-resident real estate licenses to states which prohibit their residence from holding California real estate licenses

    • D. 

      All of the above

  • 2. 
    Mr. Navarro does not have a real estate license. He runs an investment firm, advertising and selling properties for his clients. Since these transactions require a real estate license, who will prosecute him for this criminal violation of the real estate law?
    • A. 

      The local police

    • B. 

      The Real Estate Commissioner

    • C. 

      The State Attorney General

    • D. 

      The District Attorney of the county in which the activity occurred

  • 3. 
    The seller in a real estate transaction decided not to pay the commission to his real estate agent. Which of the following should the real estate agent do?
    • A. 

      File a vendor's lien on the seller's property

    • B. 

      File a complaint with the Real Estate Commissioner

    • C. 

      File an action in civil court

    • D. 

      All of the above

  • 4. 
    Who is authorized to manage real property for the general public?
    • A. 

      A certified property manager

    • B. 

      A licensed real estate broker

    • C. 

      An affiliate member of the California Association of Realtors

    • D. 

      Any responsible adult

  • 5. 
    Someone who has been granted a "power of attorney" may not do which of the following:
    • A. 

      Deed a property to himself

    • B. 

      Pay himself a commission

    • C. 

      Deed the property to another

    • D. 

      Sign the name of his principle to legal documents

  • 6. 
    When a real estate broker hires an unlicensed person for the purpose of creating advertising material the broker must:
    • A. 

      Allow the unlicensed person to create the advertisement to as he or she sees fit

    • B. 

      Read and approve all material before it is used

    • C. 

      Approve the material in writing before it is used

    • D. 

      Approve the material him or herself and only use the unlicensed person to fine-tune the material

  • 7. 
    A licensed real estate sales person is directly responsible to the:
    • A. 

      Seller

    • B. 

      Buyer

    • C. 

      Employing broker

    • D. 

      None of the above

  • 8. 
    How long must a real estate salesperson keep a copy of his employment contract with the broker, after quitting the office?
    • A. 

      One year

    • B. 

      Two years

    • C. 

      Three years

    • D. 

      Four years

  • 9. 
    Which of the following contracts or documents does not require approval by the Bureau of Real Estate prior to use?
    • A. 

      An advance fee contract

    • B. 

      A mortgage loan disclosure statement

    • C. 

      A real property security disclosure statement

    • D. 

      An employment agreement between broker and salesperson

  • 10. 
    Is a broker allowed to keep broker records electronically?
    • A. 

      Yes, but the broker must regularly transmit the data to the BRE

    • B. 

      Yes, but the broker has to provide hardcopies to the BRE upon request at the broker's expense

    • C. 

      Yes, but the broker must back up data annually

    • D. 

      No, the broker must always retain the original paper documents

  • 11. 
    How long may a real estate licensee hold a deposit check from the buyer before it is placed in trust account, escrow, or returned to the buyer?
    • A. 

      One business day

    • B. 

      Three business days

    • C. 

      Before close of escrow

    • D. 

      A real estate license must immediately deposit the check in the broker's trust account

  • 12. 
    A broker is required by law to keep a copy of the deposit receipt for a minimum of three years from:
    • A. 

      The date the deposit receipt was accepted by the seller

    • B. 

      The date of closing of the transaction

    • C. 

      The recording of the deed

    • D. 

      Whichever date is earliest

  • 13. 
    An unlicensed employee of the broker who is authorized in writing by the broker may make withdrawals from the broker's trust account provided the employee:
    • A. 

      Maintains no personal funds in the trust account

    • B. 

      Is covered by a fidelity bond for at least the amount of the funds to which the employee has access to at any given time

    • C. 

      Has committed to get a real estate license within the next six months

    • D. 

      Has been employed by the broker for at least two out of the last five years

  • 14. 
    After a broker reconciles his client trust account, the broker's client liabilities should match the trust account:
    • A. 

      Overages

    • B. 

      Shortages

    • C. 

      Balance

    • D. 

      Fidelity bond

  • 15. 
    The real estate law views the salesperson employed by a real estate broker as:
    • A. 

      An independent contractor

    • B. 

      A special agent

    • C. 

      A sub agent

    • D. 

      An employee

  • 16. 
    The only person who can pay compensation to a real estate salesperson for real estate activities is:
    • A. 

      The seller

    • B. 

      The buyer

    • C. 

      His or her employing broker

    • D. 

      The escrow company only when escrow closes

  • 17. 
    When an applicant passes the state exam, how much time does he or she have to apply for the license?
    • A. 

      One year from the exam date

    • B. 

      One year from the date they receive the results of the exam

    • C. 

      Two years from the date of the exam

    • D. 

      Two years from the date they receive the results of the exam

  • 18. 
    Broker Wilson cheated clients in several real estate transactions and then disappeared. As a result of a lawsuit filed on one transaction a client was awarded a $25,000 judgment against broker Wilson. What is the maximum amount that client will be able to recover from the real estate education, research, and recovery account (REERRA)?
    • A. 

      $20,000

    • B. 

      $25,000

    • C. 

      $50,000

    • D. 

      $250,000

  • 19. 
    What will the Bureau of Real Estate do if someone is attempting to renew a real estate license and his name appears on a list of persons who have not complied with the court order to provide child-support payments?
    • A. 

      Renew as a suspended license until paid

    • B. 

      Renew as a temporary license, but the debt must be paid within 150 days

    • C. 

      Renew for only one year, unless a licensee submits a letter from D.A. that the debt has been paid

    • D. 

      The license cannot be renewed until the debt is paid

  • 20. 
    When a real estate licensee is required to take 45 hours of continuing education courses to renew his or her license, included within the 45 hours of courses must be which of the following?
    • A. 

      Agency, Ethics, Trust Fund Handling and Fair Housing

    • B. 

      Risk Management

    • C. 

      18 hours of consumer protection

    • D. 

      All of the above

  • 21. 
    A broker advertises the sale of "Mega-Buck Trust Deeds" in a newspaper. In the ad, the broker offers a specific yield arrived at by looking at the yield for the past year. This ad is:
    • A. 

      Not subject to regulation under the law

    • B. 

      Legal only if the BRE has confirmed the yield

    • C. 

      Legal if the ad also gives the actual interest rate specified in the note and the discount from the outstanding principal balance

    • D. 

      Illegal according to the Truth-in-Lending Law

  • 22. 
    Upon going to work for a real estate broker, Janet, a licensed real estate salesperson, advertised in the newspaper that anyone who bought a property through her would receive a free microwave oven valued at $300. Her offer is:
    • A. 

      Legal, as long as full disclosure is made to all interested parties

    • B. 

      Legal, provided that only a chance to win the microwave in a drawing is actually given the buyer

    • C. 

      Illegal under all circumstances

    • D. 

      Illegal, since the value of such a gift cannot exceed $200

  • 23. 
    A salesperson runs an ad in a newspaper. The ad must contain:
    • A. 

      The name and address of the salesperson

    • B. 

      The name and address of the broker

    • C. 

      The name of broker and name of salesperson

    • D. 

      The name of the broker

  • 24. 
    Which of the following is a correct statement about puffing?
    • A. 

      Puffing is always illegal

    • B. 

      Puffing is unethical unless it is approved by the broker

    • C. 

      Puffing is only an opinion of value of a specific property as of a given date

    • D. 

      Puffing is considered misrepresentation if a reasonable person would consider it a statement of fact, rather than opionion

  • 25. 
    The word "ethics," when used in a discussion of real estate agents, most nearly means:
    • A. 

      Trust and honesty

    • B. 

      The values that guide an agent's relationship with customers, other agents, and the general public

    • C. 

      Knowledge of the law

    • D. 

      Held in highest esteem by other agents

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