California Real Estate Practice Test: 24 Questions with Answers

1. Trees rooted in the land
2. A right-of-way that benefits the land
3. A couch in the living room
4. Land itself

Answer: C. A couch in the living room. A couch is personal property. Real property is the land, things affixed to it, things appurtenant to it, and things immovable by law. Trees count because they are attached by roots.

Source: Civil Code 658, 660. Real or immovable property consists of land, that which is affixed to land, that which is incidental or appurtenant to land, and that which is immovable by law. (paraphrased)

1. Automatically for any two owners on a deed
2. By a single transfer that expressly declares a joint tenancy
3. By a verbal agreement between the owners
4. Only by court order

Answer: B. By a single transfer that expressly declares a joint tenancy. A joint tenancy is owned in equal shares and is created by a single will or transfer that expressly declares it a joint tenancy. Two names on a deed is not enough.

Source: Civil Code 683. A joint tenancy is a joint interest owned by two or more persons in equal shares, under a title created by a single will or transfer, when expressly declared. (paraphrased)

1. Separate property of the spouse who signed
2. Tenancy in common
3. Community property
4. Joint tenancy

Answer: C. Community property. Property acquired by a married person during the marriage while living in California is community property, except as otherwise provided by statute.

Source: Family Code 760. Except as otherwise provided by statute, all property acquired by a married person during the marriage while domiciled in this state is community property. (paraphrased)

1. 1% of full cash value
2. 2% of full cash value
3. 3% of full cash value
4. There is no limit

Answer: A. 1% of full cash value. One percent of full cash value. Proposition 13 is in the California Constitution, Article thirteen A.

Source: Cal. Const. Art. XIII A, Sec. 1. The maximum amount of any ad valorem tax on real property shall not exceed one percent of the full cash value of such property. (paraphrased)

1. 1%
2. 5%
3. 10%
4. 2%

Answer: D. 2%. Two percent per year. The full cash value base can reflect inflation, but not more than two percent in any given year.

Source: Cal. Const. Art. XIII A, Sec. 2(b). The full cash value base may reflect from year to year the inflationary rate not to exceed 2 percent for any given year. (paraphrased)

1. 2 lots
2. 5 lots
3. 10 lots
4. 50 lots

Answer: B. 5 lots. Five or more lots or parcels, divided for the purpose of sale, lease, or financing.

Source: Bus. & Prof. Code 11000. Subdivided lands: improved or unimproved land divided for sale, lease or financing into five or more lots or parcels. (paraphrased)

1. The buyer's permission
2. The seller's express permission
3. The broker's approval
4. Nothing. It's allowed if true

Answer: B. The seller's express permission. The seller's express permission. California treats the seller's willingness to take less than the listing price as confidential information.

Source: Civil Code 2079.21. A dual agent shall not, without the express permission of the seller, disclose to the buyer confidential information obtained from the seller. (paraphrased)

1. The same day
2. 3 business days after receipt
3. 10 calendar days after receipt
4. At close of escrow

Answer: B. 3 business days after receipt. Three business days after receipt, into the broker's trust account, a neutral escrow depository, or to the owner of the funds.

Source: 10 CCR 2832. Trust funds shall be placed not later than three business days following receipt of the funds by the broker or the broker's salesperson. (paraphrased)

1. 1 year
2. 2 years
3. 3 years
4. 7 years

Answer: C. 3 years. Three years, counted from closing, or from the listing date if the deal never closes.

Source: Bus. & Prof. Code 10148. A licensed broker shall retain for three years copies of all listings, deposit receipts, canceled checks, trust records, and other documents. (paraphrased)

1. License identification number
2. Home address
3. Exam score
4. Photo

Answer: A. License identification number. Your license identification number. It must appear on first point of contact materials like business cards and ads.

Source: Bus. & Prof. Code 10140.6. A licensee shall disclose their name, license identification number, and responsible broker on first point of contact materials. (paraphrased)

1. Yes, always
2. Only if it was violent
3. No, but they may not lie if asked directly
4. Only to out-of-state buyers

Answer: C. No, but they may not lie if asked directly. A death more than three years before the offer does not have to be disclosed. But the law does not protect an intentional misrepresentation in response to a direct question.

Source: Civil Code 1710.2. No cause of action for failing to disclose a death that occurred more than three years before the offer. No protection for intentional misrepresentation to a direct inquiry. (paraphrased)

1. 3 days
2. 5 days
3. 10 days
4. 30 days

Answer: A. 3 days. Three days after delivery in person. If it was delivered by mail, it's five days. The buyer terminates with written notice.

Source: Civil Code 1102.3. The buyer has three days after delivery in person, or five days after delivery by mail, to terminate the offer by written notice. (paraphrased)

1. Parties capable of contracting
2. Their consent
3. Notarization
4. A lawful object

Answer: C. Notarization. Notarization is not required. The four essentials are capable parties, their consent, a lawful object, and sufficient cause or consideration.

Source: Civil Code 1550. Essential to a contract: parties capable of contracting, their consent, a lawful object, and a sufficient cause or consideration. (paraphrased)

1. A month-to-month rental
2. A 6-month lease
3. A weekly rental
4. A 2-year lease

Answer: D. A 2-year lease. A two-year lease. A lease for longer than one year, or an agreement to sell real property, is invalid unless it's in writing and signed.

Source: Civil Code 1624(a)(3). An agreement for leasing for a longer period than one year, or for the sale of real property, is invalid unless in writing and signed. (paraphrased)

1. In writing, signed by the seller
2. Given verbally in front of a witness
3. Recorded with the county
4. Approved by the DRE

Answer: A. In writing, signed by the seller. In writing, signed by the seller. If the agreement must be in writing, the agent's authority must be in writing too.

Source: Civil Code 1624(a)(3). If made by an agent, the agreement is invalid unless the authority of the agent is in writing, subscribed by the party sought to be charged. (paraphrased)

1. Yes
2. Yes, with a cosigner
3. Only through a broker
4. No

Answer: D. No. No. The Family Code says a minor cannot make a contract relating to real property or any interest in it.

Source: Family Code 6701(b). A minor cannot make a contract relating to real property or any interest therein. (paraphrased)

1. One month's rent
2. Two months' rent
3. Three months' rent
4. There is no limit

Answer: A. One month's rent. One month's rent. There is a small-landlord exception that allows up to two months, but one month is the general rule.

Source: Civil Code 1950.5(c). A landlord may not demand security in excess of one month's rent. Certain small landlords may collect up to two months' rent. (paraphrased)

1. 14 days
2. 21 days
3. 30 days
4. 60 days

Answer: B. 21 days. Twenty-one calendar days after the tenant has vacated.

Source: Civil Code 1950.5(h). No later than 21 calendar days after the tenant has vacated, the landlord shall furnish an itemized statement and return any remaining security. (paraphrased)

1. 30 days
2. At least 3 months
3. 6 months
4. 1 year

Answer: B. At least 3 months. At least three months. The law says not less than three months shall pass from the filing of the notice of default.

Source: Civil Code 2924(a). Not less than three months shall elapse from the filing of the notice of default. (paraphrased)

1. 3 months exactly
2. 3 months and 20 days
3. 4 months
4. 6 months

Answer: B. 3 months and 20 days. Three months and twenty days. The notice of sale can be recorded a little early, but the sale date must be at least three months and twenty days after the notice of default.

Source: Civil Code 2924(a). The sale date shall be at least three months and 20 days after recording of the notice of default. (paraphrased)

1. Yes, always
2. No
3. Only if she owes over $500,000
4. Only with DRE approval

Answer: B. No. No. A purchase money loan on a dwelling for not more than four families, occupied by the buyer, is protected from a deficiency.

Source: Code of Civil Procedure 580b. No deficiency after sale under a deed of trust securing a loan used to buy a dwelling for not more than four families, occupied by the purchaser. (paraphrased)

1. Yes, through a deficiency judgment
2. Only if the buyer moved out
3. No
4. Yes, after one year

Answer: C. No. No. A deed of trust given to the seller to secure the balance of the purchase price is also protected.

Source: Code of Civil Procedure 580b(a)(2). No deficiency under a deed of trust given to the vendor to secure payment of the balance of the purchase price. (paraphrased)

1. 30 days
2. 60 days
3. 90 days
4. 1 year

Answer: C. 90 days. Ninety days after completion of the work. If the owner records a notice of completion, it's sixty days after that.

Source: Civil Code 8412. A direct contractor may record a claim of lien before the earlier of 90 days after completion or 60 days after a notice of completion is recorded. (paraphrased)

1. 60%
2. 65%
3. 70%
4. 75%

Answer: C. 70%. Seventy percent. The Department of Real Estate requires at least seventy percent correct.

Source: California DRE, Salesperson Exam. To pass the salesperson examination, examinees must answer at least 70 percent of the questions correctly. (paraphrased)