Determine your answer, then click the arrow to see the correct response.
Which of the Following Best Describes a "Net Listing" in California?
A) A listing where the commission is a flat fee
B) A listing where the agent’s commission is based on the selling price above a certain amount
C) A listing where the agent receives no commission
D) A listing where the commission is shared with another agent
Correct Answer: B) A listing where the agent’s commission is based on the selling price above a certain amount
Explanation: In a net listing, the agent’s commission is the amount by which the sale price exceeds the seller’s predetermined net amount.
Which of the Following Must Be Included in a Listing Agreement in California?
A) The list price of the property
B) The duration of the listing
C) The commission to be paid to the broker
D) All of the above
Correct Answer: D) All of the above
Explanation: A listing agreement must include the list price, the duration of the listing, and the commission to be paid to the broker.
Which of the Following Is NOT a Fiduciary Duty of a Real Estate Agent in California?
A) Loyalty
B) Obedience
C) Confidentiality
D) Profitability
Correct Answer: D) Profitability
Explanation: Fiduciary duties include loyalty, obedience, confidentiality, disclosure, accounting, and reasonable care, but not profitability.
A Buyer's Agent Learns That the House Their Client Is Interested in Has a Leaking Roof That Was Not Disclosed by the Seller. What Should the Agent Do?
A) Ignore the information since it was not disclosed
B) Disclose the information to the buyer
C) Report the seller to the California Department of Real Estate
D) Wait until the buyer asks about the roof
Correct Answer: B) Disclose the information to the buyer
Explanation: Agents must disclose all known material defects to their clients to ensure informed decision-making.
How Often Must Real Estate Licenses Be Renewed in California?
A) Every year
B) Every two years
C) Every three years
D) Every four years
Correct Answer: B) Every four years
Explanation: Real estate licenses in California must be renewed every four years.
Which of the Following Best Describes a "Tenancy in Common" in California?
A) Joint ownership by two or more parties with equal shares
B) Ownership by a single individual
C) Joint ownership by a married couple
D) Joint ownership where each party can have an unequal share
Correct Answer: D) Joint ownership where each party can have an unequal share
Explanation: Tenancy in common allows for joint ownership where each party can hold an unequal share of the property and have separate interests.
What Is the Minimum Number of Hours of Continuing Education Required Every Four Years for Real Estate Licensees in California?
A) 36 hours
B) 40 hours
C) 45 hours
D) 50 hours
Correct Answer: C) 45 hours
Explanation: California requires real estate licensees to complete at least 45 hours of continuing education every four years.
In California, How Many Days Does a Tenant Have To Pay Overdue Rent Before the Landlord Can Proceed With Eviction?
A) 3 days
B) 5 days
C) 7 days
D) 10 days
Correct Answer: A) 3 days
Explanation: California law generally requires landlords to give tenants a 3-day notice to pay overdue rent before proceeding with eviction.
Which of the Following Is TRUE About the Transfer Disclosure Statement (TDS) in California?
A) It is only required for commercial properties
B) It must be completed by the buyer
C) It must disclose any known material facts about the property
D) It is optional for residential transactions
Correct Answer: C) It must disclose any known material facts about the property
Explanation: The Transfer Disclosure Statement (TDS) in California is a required form in residential transactions where the seller must disclose any known material facts and defects about the property.
Which of the Following Best Describes a "Quitclaim Deed" in California?
A) A deed that provides no warranties
B) A deed that guarantees clear title for the grantor’s ownership period only
C) A deed that guarantees clear title for the entire history of the property
D) A deed that is used for trustee sales
Correct Answer: A) A deed that provides no warranties
Explanation: A quitclaim deed transfers any interest the grantor has in the property without warranties or guarantees.