Free California Real Estate Practice Exam

Q1.Under the Americans with Disabilities Act (ADA), which type of housing is subject to accessibility requirements?

• A.All residential properties
• B.Public accommodations and commercial facilities
• C.Properties with four or more units
• D.Government-subsidized housing only

Q2.A broker discovers that a property they listed has been used as an illegal marijuana growing operation, which is a material fact affecting value and desirability. The seller is unaware of this use and asks the broker not to investigate further after the broker mentions some suspicious modifications. What is the broker's primary obligation under California disclosure law?

• A.Honor the seller's request and avoid further investigation to maintain client loyalty
• B.Conduct a reasonable investigation and disclose findings despite seller objections
• C.Withdraw from the listing to avoid potential liability
• D.Disclose only what is known without further investigation

Q3.When preparing a Broker Price Opinion (BPO) in California, which approach is most commonly used for single-family residential properties?

• A.Income approach
• B.Cost approach
• C.Sales comparison approach
• D.Replacement cost method

Q4.In California, which type of deed provides the greatest protection to a grantee by warranting title against all defects?

• A.Grant deed
• B.Quitclaim deed
• C.Warranty deed
• D.Trust deed

Q5.A buyer's agent learns that their client is pre-approved for a $500,000 loan but is only looking at homes priced at $300,000. The agent has a listing for $450,000 that would be perfect for the buyer. What should the agent do?

• A.Show the $450,000 listing since it's within the buyer's means
• B.Respect the buyer's stated price range and not show the higher-priced home
• C.Show the listing but not mention the buyer could afford it
• D.Only show the listing if asked specifically about higher-priced homes

Q6.What is the purpose of recording a deed in the public records?

• A.To make the deed legally valid
• B.To provide constructive notice to the world of the ownership change
• C.To ensure the property taxes are properly assessed
• D.To guarantee clear title to the property

Q7.Which of the following best describes a Qualified Mortgage (QM) under the CFPB's Ability-to-Repay Rule?

• A.Any loan with a down payment of at least 20%
• B.A loan that meets specific underwriting standards including debt-to-income ratios and prohibits risky loan features
• C.A loan that can only be made by banks
• D.A loan with a fixed interest rate

Q8.Under California Civil Code Section 2943, what notice period must a lender provide before accelerating a loan due to default?

• A.15 days
• B.30 days
• C.45 days
• D.60 days

Q9.A California broker represents a buyer purchasing a property subject to CC&Rs that prohibit certain business activities. The CC&Rs were recorded in 1995 but contain a clause stating they expire after 20 years unless renewed. It is now 2024 and no renewal has been recorded. What is the legal status of these CC&Rs?

• A.They automatically expired in 2015 and are no longer enforceable
• B.They remain enforceable until formally terminated by court order
• C.They are still enforceable if the majority of property owners consent
• D.They are automatically renewed for another 10-year period under California law

Q10.In a joint tenancy, what happens to a deceased tenant's interest in the property?

• A.It passes to the deceased tenant's heirs according to their will
• B.It automatically transfers to the surviving joint tenant(s)
• C.It becomes part of the deceased tenant's estate for probate
• D.It reverts to the original grantor

Q11.A purchase agreement becomes legally binding when:

• A.The buyer signs the offer
• B.The seller receives the offer
• C.The seller accepts and the buyer is notified of acceptance
• D.Earnest money is deposited

Q12.Under RESPA's Good Faith Estimate requirements, if a lender originally estimated closing costs at $3,200 and the actual costs were $3,520, what is the percentage increase in closing costs?

• A.8%
• B.10%
• C.12%
• D.15%

Q13.A California broker receives earnest money deposits from multiple transactions. Which practice is REQUIRED under DRE regulations?

• A.Deposit all funds into the broker's operating account within 24 hours
• B.Maintain separate trust accounts for each individual transaction
• C.Deposit funds into a trust account within three business days
• D.Obtain written permission from both parties before depositing funds

Q14.A California buyer is getting a VA loan. What is a key benefit of VA financing compared to conventional loans?

• A.VA loans have lower interest rates by law
• B.VA loans require no down payment and no private mortgage insurance
• C.VA loans can only be used for new construction
• D.VA loans have shorter repayment terms

Q15.Under California Civil Code Section 2079.3, what is a broker's duty regarding material facts affecting property value?

• A.Conduct a professional inspection to discover all defects
• B.Disclose facts within the broker's knowledge and investigate red flags
• C.Rely solely on seller disclosures without independent verification
• D.Guarantee the accuracy of all property information provided