Free California Real Estate Practice Exam

Q1.A California real estate salesperson representing a buyer verbally discloses agency relationships during initial contact but does not provide the written Disclosure Regarding Real Estate Agency Relationships form until the purchase offer is signed. Under California law, this is:

• A.Acceptable, because verbal disclosure satisfies the agency disclosure requirement.
• B.Acceptable, as long as the written form is signed before escrow closes.
• C.A violation, because the written disclosure must be provided as soon as practicable before the buyer signs an offer to purchase.
• D.A violation only if the transaction involves a property priced above a specific threshold.

Q2.Under California law, when must a listing agent provide the seller with the Agency Disclosure form (AD) during a residential transaction?

• A.Before or when the listing agreement is signed
• B.Before or when the purchase offer is presented to the seller
• C.Within 3 days after the listing agreement is signed
• D.At the close of escrow

Q3.A listing agent in California represents the seller of a single-family home. The buyer is unrepresented. At what point is the listing agent REQUIRED to provide the buyer with the California Association of REALTORS® (or DRE-approved) Agency Disclosure form?

• A.No later than the close of escrow, since the buyer is not represented by an agent.
• B.Only if the listing agent intends to act as a dual agent for both parties.
• C.As soon as practicable before the buyer executes an offer to purchase the property.
• D.At the time the listing agreement is signed between the seller and the listing broker.

Q4.A California real estate broker receives an earnest money deposit check from a buyer on a Monday. Under DRE regulations, by what time must the broker deposit or place this trust fund into a proper trust account?

• A.Immediately upon receipt, with no exceptions.
• B.Within three business days of receipt.
• C.Within three calendar days of receipt.
• D.No later than the next business day following receipt.

Q5.A developer subdivides a 50-lot residential project in California and begins offering lots for sale before receiving a Final Subdivision Public Report from the California Department of Real Estate (DRE). A prospective buyer signs a purchase contract before the report is issued. Under the Subdivided Lands Law, which statement is MOST accurate?

• A.The purchase contract is voidable at the buyer's option, and the buyer is entitled to a full refund of any deposits paid.
• B.The purchase contract is valid and enforceable immediately because the DRE Preliminary Public Report serves as a temporary substitute for the Final Report.
• C.The developer may legally sell lots using a Preliminary Public Report, but the buyer's right of rescission expires 14 days after signing.
• D.The contract is void ab initio and the developer is subject to automatic license revocation by the DRE.

Q6.Under the FHA, an assistance animal is:

• A.Only a service dog trained under the ADA
• B.A pet, subject to all pet rules and pet fees
• C.A service animal OR an emotional support animal that does work or provides emotional support related to a disability — not a pet under the FHA
• D.Only an animal certified by a federal registry

Q7.A California seller's property is located within a Special Flood Hazard Area as designated by FEMA. Under California's Natural Hazard Disclosure Law, who is responsible for delivering the Natural Hazard Disclosure (NHD) Statement to the buyer, and when must it be delivered?

• A.The seller's lender must provide the NHD as part of the loan package before funding.
• B.The seller or seller's agent must deliver the NHD as soon as practicable before transfer of title.
• C.The NHD is only required if the seller has actual knowledge of the flood zone designation.
• D.The buyer's agent is solely responsible for ordering and delivering the NHD to their client.

Q8.Under federal regulations, which statement about lead-based paint disclosure requirements is correct for residential transactions?

• A.Disclosure is only required for properties built before 1950
• B.Lead disclosure is only required if the seller has actual knowledge of lead paint
• C.The requirement applies only to properties with children under age 6
• D.Sellers must provide a 10-day opportunity for lead inspection on properties built before 1978

Q9.In California, an easement appurtenant benefits a specific parcel of land. When that benefited parcel (dominant tenement) is sold, what happens to the easement?

• A.The easement is extinguished upon sale of the dominant tenement
• B.The easement transfers automatically to the new owner with the land
• C.The easement must be re-recorded by the new owner to remain valid
• D.The easement reverts to the servient tenement owner upon any sale

Q10.Under California law, which of the following elements is NOT required for a valid grant deed to effectively convey real property?

• A.The deed must be in writing and signed by the grantor.
• B.The deed must contain an adequate description of the property being conveyed.
• C.The deed must be acknowledged (notarized) before it can pass title between grantor and grantee.
• D.The deed must identify the grantee with sufficient certainty.

Q11.A recent Arizona Court of Appeals decision held that a buyer's agent who verbally promises 'this property will appraise at list price' may be liable for:

• A.Nothing — verbal opinions are protected as puffery
• B.Criminal fraud under A.R.S. § 13-2310 automatically
• C.A strict liability claim without proving intent or negligence
• D.Negligent misrepresentation if the agent lacked a reasonable basis for the statement

Q12.In California, when a single broker represents both the buyer and the seller in the same residential transaction, which of the following is required for the dual agency to be lawful?

• A.The broker must reduce their commission by at least half to compensate for the conflict of interest
• B.The broker must obtain written informed consent to dual agency from both the buyer and the seller
• C.The broker must assign a different salesperson to each party and no further disclosure is required
• D.The broker must withdraw from representing one of the parties before close of escrow

Q13.In states that follow the doctrine of caveat emptor, what is the seller's primary disclosure obligation?

• A.Disclose all known defects regardless of their significance
• B.Disclose only defects that affect health and safety
• C.Disclose only latent defects that are not readily observable
• D.No disclosure obligation except for federally mandated disclosures

Q14.The primary difference between quid pro quo harassment and hostile environment harassment in a housing context is:

• A.Quid pro quo conditions housing on submission to sexual demands; hostile environment creates an abusive living condition through pervasive conduct
• B.Quid pro quo involves a monetary demand; hostile environment involves physical contact only
• C.Hostile environment claims require a criminal conviction; quid pro quo does not
• D.Only quid pro quo harassment is covered by the Fair Housing Act — hostile environment is not

Q15.Under the Supreme Court's 2020 Bostock v. Clayton County decision as applied to housing, federal sex protections extend to:

• A.Sexual orientation and gender identity
• B.Only biological sex, not sexual orientation or gender identity
• C.Only gender identity, not sexual orientation
• D.Only state law covers LGBTQ+ housing discrimination