Free California Real Estate Practice Exam

Q1.Under an Exclusive Right to Sell listing, the seller sells directly to a neighbor without the broker's involvement. Is the broker owed a commission?

• A.No — the broker only earns a commission if they procured the buyer
• B.Yes — under an Exclusive Right to Sell listing, the broker earns a commission regardless of who finds the buyer
• C.Only if the broker can prove they were the procuring cause of the neighbor's interest
• D.Only if the seller violated the safety clause provision

Q2.A California borrower obtains a new residential mortgage loan subject to RESPA and the TRID (TILA-RESPA Integrated Disclosure) rules. Under these federal rules as applied in California transactions, when must the lender deliver the Loan Estimate to the borrower?

• A.Within three business days of receiving the borrower's loan application.
• B.At least seven business days before loan consummation.
• C.Within five calendar days of the loan application.
• D.No later than the date of the appraisal completion.

Q3.A landlord in California tells a property manager to reject rental applications from families with children under the age of 18, except in a senior housing community that qualifies for the exemption under federal and state law. The property does NOT qualify as senior housing. Which California law does this policy MOST directly violate?

• A.The California Unruh Civil Rights Act, which prohibits arbitrary discrimination by business establishments but does not specifically address familial status.
• B.The California Fair Employment and Housing Act (FEHA), which prohibits housing discrimination based on familial status, among other protected classes.
• C.Only the federal Fair Housing Act; California state law does not independently protect familial status in housing.
• D.The California Holden Act, which prohibits discriminatory lending practices by financial institutions.

Q4.A property manager refuses to rent a ground-floor unit to an applicant who uses a wheelchair, stating that the unit is 'not suitable' for the applicant. Under the federal Fair Housing Act, this action most likely constitutes:

• A.Illegal discrimination based on disability
• B.A permissible business decision based on unit suitability
• C.Steering, which is only prohibited in sales transactions
• D.A valid occupancy standard under HUD guidelines

Q5.A broker manages a 40-unit residential apartment complex. The owner instructs the broker in writing to refuse applications from families with children under 12, citing concerns about property damage. The broker knows this instruction violates federal law but proceeds to enforce it. Under the Fair Housing Act, which statement BEST describes the broker's liability exposure?

• A.The broker has no personal liability because the written instruction from the owner shields the broker from responsibility under the respondeat superior doctrine.
• B.The broker is personally liable as a principal under the Fair Housing Act because real estate professionals who carry out discriminatory instructions are independently liable, and the owner's instruction provides no legal shield.
• C.The broker is liable only if HUD can prove intentional discrimination, and reliance on a client's written instruction establishes a good-faith defense that negates intent.
• D.The broker's liability is limited to license discipline by the state real estate commission because federal civil penalties apply exclusively to the property owner, not the broker.

Q6.Under the Residential Lead-Based Paint Hazard Reduction Act (EPA), sellers of homes built before 1978 are required to do which of the following before the sale is completed?

• A.Remove all lead-based paint from the property at their own expense before listing
• B.Disclose known information about lead-based paint, provide an EPA-approved pamphlet, and allow a 10-day inspection period
• C.Obtain a certified lead inspection report and attach it to the sales contract
• D.Reduce the asking price by the estimated cost of lead remediation

Q7.In California, how many clock hours of continuing education must a real estate salesperson complete to renew their license for the first time?

• A.45 hours
• B.18 hours
• C.30 hours
• D.60 hours

Q8.Under RESPA, when must a lender provide the Loan Estimate to a borrower applying for a federally related mortgage loan?

• A.Within 24 hours of receiving the loan application
• B.At the time of loan application
• C.Within 7 calendar days of receiving the loan application
• D.Within 3 business days of receiving the loan application

Q9.Which federal environmental law created the Superfund program to clean up contaminated sites?

• A.Clean Air Act
• B.Clean Water Act
• C.Safe Drinking Water Act
• D.CERCLA

Q10.A broker is marketing a commercial property that was previously used as a dry-cleaning facility. An environmental site assessment reveals soil contamination. Under CERCLA, which of the following parties could potentially be held liable for cleanup costs?

• A.The current property owner, even if they did not cause the contamination, unless they qualify as a bona fide prospective purchaser, innocent landowner, or contiguous property owner under CERCLA's liability defenses.
• B.Only the party who originally deposited the hazardous substances, because CERCLA liability is based solely on causation.
• C.Only the current operator of the facility at the time of the cleanup order, not the property owner.
• D.Neither the current owner nor prior owners, because CERCLA liability applies only to hazardous waste disposal companies.

Q11.The Faragher-Ellerth affirmative defense allows a brokerage to limit vicarious FHA liability by showing all of the following EXCEPT:

• A.A written anti-harassment policy distributed to all agents
• B.An accessible complaint procedure including an alternate contact if the broker is the alleged harasser
• C.Documented training and prompt investigation of complaints
• D.The policy was created after the complaint was received

Q12.A managing broker's affiliated salesperson represents a buyer who is a member of a protected class under the Fair Housing Act. During negotiations, the listing broker verbally offers seller concessions to all buyers but instructs the salesperson privately that 'the seller prefers not to sell to your client.' The managing broker learns of this conversation. Under the broker's fiduciary and supervisory duties, what is the managing broker's MOST appropriate immediate action?

• A.Advise the salesperson to withdraw the offer immediately to avoid involving the brokerage in a discriminatory transaction.
• B.Instruct the salesperson to document the discriminatory instruction, continue to advocate for the buyer client, and consult legal counsel about reporting obligations under the Fair Housing Act.
• C.Inform the seller directly that the buyer's protected-class status cannot be a factor, then allow the transaction to proceed without further action.
• D.Notify HUD immediately and withdraw from the transaction, as continued participation constitutes a per se Fair Housing violation by the buyer's broker.

Q13.A prescriptive easement claim is being evaluated in California. The claimant has used a neighbor's land to access a hiking trail for many years. Which combination of elements is REQUIRED to establish a prescriptive easement under California law?

• A.Open, notorious, hostile, and continuous use for at least 5 years, without the owner's permission.
• B.Open, notorious, and continuous use for at least 10 years, with or without the owner's permission, plus payment of property taxes on the disputed strip.
• C.Hostile, exclusive, and continuous use for at least 5 years, plus the claimant must have paid property taxes on the disputed area.
• D.Open, notorious, hostile, and continuous use for at least 5 years, plus the claimant must have paid property taxes on the disputed area.

Q14.Under the Fair Housing Act, which of the following is NOT considered a protected class at the federal level?

• A.Sexual orientation
• B.Religion
• C.National origin
• D.Familial status

Q15.A buyer's agent who notices cracks in the foundation during a showing should:

• A.Disclose the visible cracks to the buyer immediately as potentially material
• B.Note it privately and wait for the home inspection report
• C.Ask the seller's agent if the seller has disclosed foundation issues
• D.Take photos for the file but make no representation about what they mean