Free California State Law Practice Test — LicenseIQ

Question 1

What is the format of the California real estate salesperson examination?

Accepted Answer

The salesperson exam is 150 questions in 3 hours with a 70% passing score. The 200-question, 4-hour, 75% format is the broker exam.

Question 2

When competing brokerages agree to charge the same commission rate, they commit:

Accepted Answer

Agreeing on commissions among competitors is illegal price fixing under the Sherman Antitrust Act; commissions must be set independently and are always negotiable.

Question 3

A printed listing form for a single-family home must include which notice in at least 10-point boldface type?

Accepted Answer

Section 10147.5 requires the 'not fixed by law' notice in 10-point boldface immediately before the compensation clause for 1–4 unit residential property and mobilehomes.

Question 4

A licensee may manage property for an owner for a fee only if there is:

Accepted Answer

Property management agreements must be written and signed; they make the manager a general agent and define duties, authority and fees.

Question 5

Which of the following is one of the six hazard zones on California's Natural Hazard Disclosure Statement?

Accepted Answer

The NHD statement covers FEMA special flood hazard areas, dam failure inundation areas, fire hazard severity zones, wildland fire areas, earthquake fault zones, and seismic hazard zones.

Question 6

For a salesperson's FIRST license renewal, which set of mandatory courses is required within the 45 hours?

Accepted Answer

First-time salesperson renewals require the four separate 3-hour courses plus interactive Fair Housing (3 hours) and Implicit Bias (2 hours). Management and Supervision is added for brokers. The 9-hour survey course option is for subsequent renewals.

Question 7

Which applicant meets the experience requirement for a California broker license?

Accepted Answer

Broker applicants need two years of full-time licensed salesperson experience within the five years before applying, or an equivalent. A four-year degree with a real estate major or minor may substitute. Merely holding a license without activity does not qualify.

Question 8

How often must a broker reconcile the trust account record with the separate beneficiary records?

Accepted Answer

Reg. 2831.2 requires a monthly reconciliation of the columnar record with the separate beneficiary or transaction records, and a record of each reconciliation.

Question 9

When must a listing agent give the seller the 'Disclosure Regarding Real Estate Agency Relationship' form?

Accepted Answer

Civil Code §2079.14 requires the seller's agent to provide the form before the listing agreement is signed and to obtain a signed acknowledgment of receipt.

Question 10

On the $20,000 commission above, the listing broker keeps 50% and pays 50% to the buyer's broker. How much does the buyer's broker receive?

Accepted Answer

$20,000 x 0.50 = $10,000 to the buyer's broker.

Question 11

A real estate licensee who is not an attorney may:

Accepted Answer

Licensees may complete attorney-prepared forms but may not draft contracts, amendments or addenda or give legal advice - that is the unauthorized practice of law.

Question 12

A licensee representing the seller who learns the buyer will pay more than the offer must:

Accepted Answer

Loyalty and disclosure require the seller's agent to share material information that benefits the client. The agent owes the buyer-customer no confidentiality.

Question 13

Under the Code of Ethics, commission disputes between REALTORS associated with different firms are generally resolved through:

Accepted Answer

Article 17 requires REALTORS to mediate or arbitrate contractual and specific non-contractual disputes with other REALTORS through the association.

Question 14

A licensee never signs a buyer agreement but repeatedly gives a buyer negotiating advice and acts on his behalf. An agency relationship may have been created by:

Accepted Answer

Implied agency arises from conduct; the agent then owes full fiduciary duties. Express agency is created by stated agreement, ideally in writing.

Question 15

A seller says, 'I will pay any broker a 5% commission if they bring me a buyer.' This promise creates a(n):

Accepted Answer

In a unilateral contract only one party is bound (to pay if the act is performed); the other party has no obligation to act. Most real estate contracts are bilateral.

Question 16

Mixing client trust funds with the broker's own business funds is:

Accepted Answer

Commingling client/escrow funds with the broker's operating funds is prohibited and grounds for discipline. Using those funds for personal purposes is conversion.

Question 17

Absent written instructions otherwise, within what time must a broker place trust funds into escrow, the trust account, or the principal's hands?

Accepted Answer

Section 10145 and Reg. 2832 require placement within three business days of receipt.

Question 18

A listing agreement in which the broker earns a commission regardless of who sells the property is a(n):

Accepted Answer

In an exclusive right-to-sell listing, the listing broker earns a commission no matter who procures the buyer, even the owner. (Reclassified to section 6 / CORE.)

Question 19

A salesperson earns $6,000 on a $150,000 sale. What was the commission rate?

Accepted Answer

Rate = commission / sale price = $6,000 / $150,000 = 0.04 = 4%.

Question 20

A buyer instructs in writing that his deposit check be held uncashed until his offer is accepted. The offer is accepted. Absent other authorization, what must the broker do?

Accepted Answer

Reg. 2832(d) allows holding a check uncashed before acceptance on the buyer's written instruction. After acceptance, it must be deposited within three business days unless the seller authorizes in writing that it be held longer.

Question 21

Under Bus. & Prof. Code §10140.6, a licensee's business card must display:

Accepted Answer

Solicitation materials intended as a first point of contact, including business cards, must show the licensee's name, license identification number, and the responsible broker's identity.

Question 22

A home sells for $400,000 with a 5% total commission. What is the total commission?

Accepted Answer

$400,000 x 0.05 = $20,000.

Question 23

A licensee's advertising must generally:

Accepted Answer

Ads must identify the licensed broker/brokerage; salespersons cannot advertise under only their own name.

Question 24

In a lease, the tenant holds a ____ estate and the landlord holds a ____.

Accepted Answer

The lessee has a leasehold (non-freehold) estate; the lessor retains the leased fee interest plus the reversion.

Question 25

A home sells for $520,000 with a 5% commission. The listing broker pays 2.5% to the buyer's broker and splits the listing side 60/40 with the listing salesperson (salesperson gets 60%). How much does the listing salesperson earn?

Accepted Answer

Total = $520,000 x 0.05 = $26,000. Buyer broker gets 2.5% = $13,000, leaving $13,000 for the listing side. Salesperson = $13,000 x 0.60 = $7,800.

California real estate state law practice test

1. What is the format of the California real estate salesperson examination?

2. When competing brokerages agree to charge the same commission rate, they commit:

3. A printed listing form for a single-family home must include which notice in at least 10-point boldface type?

4. A licensee may manage property for an owner for a fee only if there is:

5. Which of the following is one of the six hazard zones on California's Natural Hazard Disclosure Statement?

6. For a salesperson's FIRST license renewal, which set of mandatory courses is required within the 45 hours?

7. Which applicant meets the experience requirement for a California broker license?

8. How often must a broker reconcile the trust account record with the separate beneficiary records?

9. When must a listing agent give the seller the 'Disclosure Regarding Real Estate Agency Relationship' form?

10. On the $20,000 commission above, the listing broker keeps 50% and pays 50% to the buyer's broker. How much does the buyer's broker receive?

11. A real estate licensee who is not an attorney may:

12. A licensee representing the seller who learns the buyer will pay more than the offer must:

13. Under the Code of Ethics, commission disputes between REALTORS associated with different firms are generally resolved through:

14. A licensee never signs a buyer agreement but repeatedly gives a buyer negotiating advice and acts on his behalf. An agency relationship may have been created by:

15. A seller says, 'I will pay any broker a 5% commission if they bring me a buyer.' This promise creates a(n):

16. Mixing client trust funds with the broker's own business funds is:

17. Absent written instructions otherwise, within what time must a broker place trust funds into escrow, the trust account, or the principal's hands?

18. A listing agreement in which the broker earns a commission regardless of who sells the property is a(n):

19. A salesperson earns $6,000 on a $150,000 sale. What was the commission rate?

20. A buyer instructs in writing that his deposit check be held uncashed until his offer is accepted. The offer is accepted. Absent other authorization, what must the broker do?

21. Under Bus. & Prof. Code §10140.6, a licensee's business card must display:

22. A home sells for $400,000 with a 5% total commission. What is the total commission?

23. A licensee's advertising must generally:

24. In a lease, the tenant holds a estate and the landlord holds a .

25. A home sells for $520,000 with a 5% commission. The listing broker pays 2.5% to the buyer's broker and splits the listing side 60/40 with the listing salesperson (salesperson gets 60%). How much does the listing salesperson earn?

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