California Real Estate License Exam 1 Latest Update 2024-2025 Actual Exam with 150 Questions and 100% Verified Correct Answers Guaranteed A+ Approved by the Professor
1.1. A title was recorded for a parcel of real property vested in the name of Johan
Wilson, a single woman. After her marriage to William Roberts, she executed a deed to the property only in the name of Johan Roberts, a married woman. The discrepancy in
the grantors name is:
- Valid if William Roberts agrees to it
- A defect on title that may cause title to be vested as tenants in common
- Immaterial if the property is properly described
- A defect which may cause a cloud on the title - CORRECT ANSWER: A defect which
may cause a cloud on the title.
1.10. Which of the following is the reason that a real estate agent must keep his
principal informed of material facts concerning a pending real estate transaction?
- When the agent is a fiduciary
- When it's printed on the purchase agreement
- When the agent concerned with the commission which seller is paying
- When the broker works only for the seller - CORRECT ANSWER: When the agent is
a fiduciary
1.100. Lee made an offer to purchase Wilson's property. As part of the offer, Lee agreed
to take title "subject to" an existing VA loan which Wilson obtained when they purchased the property in approximate amount of $39,000. If Wilson sells to Lee under these conditions, which of the following is true concerning liability for a loss suffered by the government after a foreclosure on the VA loan?
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- Lee will be primarily liable
- Wilson will be primarily liable
- Both Lee and Wilson are liable
D. Neither is liable - CORRECT ANSWER: Wilson will be primarily liable
1.101. A broker used the following clause in his exclusive listing contract, "In
consideration of execution of the foregoing, the undersigned broker agrees to use
diligence in procuring a purchaser." This clause:
- Is important to the creation of a bilateral contract
- Is necessary for the creation of unilateral contract
- Is superfluous to the contract
- Requires the broker to advertise the property with the multiple listing services -
CORRECT ANSWER: Is important to the creation of a bilateral contract
1.102. When a lender makes a loan regulated by the Real Estate Settlement
Procedures Act, the Loan applicant must be provided with which of the following:
- Bill of sale
- Purchase agreement
- Interest rate disclosure form
D. A good faith estimate - CORRECT ANSWER: A good faith estimate
1.103. Broker Walter entered into an oral agreement with the seller of real property
without a subsequent written verification. The payment of a commission to Broker
Walter under these circumstances would be:
- Illegal under the Real Estate Law
- No commission
- Receive a commission through court 2 / 4
- Permissible if the seller elects to - CORRECT ANSWER: Permissible if the seller
elects to
1.104. Mr. Smith bought a property for $72,000 with $20,000 cash down payment and
$52,000 loan. The loan did not require interest and did not require any payments for one year. One year later, he sold the property for double its purchase price. Each dollar of
his original cash investment is now equal to:
A. $4.60
B. $7.30
C. $2.30
D. $6.90 - CORRECT ANSWER: $72,000 x 2 = $144,000
$144,000 - $52,000 = $92,000
$92,000 / $20,000 = $4.60
1.105. If a 32 unit apartment building shows an annual net income of $117,800 and the
appropriate capitalization rate is 8%, what is the approximate value of the property:
A. $9,424,000
B. $1,472,500
C. $1,178,000
D. $1,170,790 - CORRECT ANSWER: $117,800 / 8% = $1,472,500
1.106. Which of the following does not directly affect the level and movement of
mortgage interest rates?
- Demand for funds
- Inflation
- Rate of unemployment
- Supply of money - CORRECT ANSWER: Rate of unemployment 3 / 4
1.107. To an appraiser, a definition of value is:
- A relationship between desirous persons and things desired
- The ability of one commodity to command other commodities in exchange
- The present worth of future benefits arising out of ownership of a property
D. Any of the above - CORRECT ANSWER: A relationship between desirous persons
and things desired, The ability of one commodity to command other commodities in exchange, The present worth of future benefits arising out of ownership of a property
1.108. Concerning the second installment of real property taxes in California, the due
date and delinquent date are respectively:
- November 1 and December 10
- February 1 and April 10
- November 10 and April 10
D. December 10 and April 10 - CORRECT ANSWER: February 1 and April 10
1.109. A lessee rents a building from May 1 to July 1. His tenancy is:
- Estate for years
- Month to month
- Periodic tenancy
D. Monthly lease - CORRECT ANSWER: Estate for years
1.11. A buyer relied upon the fraudulent statement of the seller's agent and was
damaged. The seller was unaware of the agent's false statement, and he tried to
enforce the agreement. The buyer:
- Could sue the seller for fraud
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