CA Real Estate Real Estate Practice and Ethics

Question 1

Under California law, how long must a real estate broker retain transaction records?

Accepted Answer

3 years

Answer

California requires brokers to retain transaction records for a minimum of three years from the date of closing.

Question 2

Which term describes the illegal practice of directing buyers toward or away from neighborhoods based on race or ethnicity?

Accepted Answer

Steering

Answer

Steering is the illegal practice of directing clients to or away from certain areas based on protected characteristics.

Question 3

A licensee who has a personal interest in a transaction MUST:

Accepted Answer

Disclose the interest to all parties

Answer

California law requires licensees to disclose any personal interest they have in a transaction to all parties involved.

Question 4

What is 'blockbusting' in real estate?

Accepted Answer

Inducing owners to sell by exploiting fears about changing neighborhood demographics

Answer

Blockbusting is the illegal practice of inducing homeowners to sell by creating fears about minorities moving into the area.

Question 5

Under California real estate law, a listing agent owes which duties to the seller?

Accepted Answer

Loyalty, disclosure, confidentiality, diligence, and accounting

Answer

A listing agent owes the seller fiduciary duties including loyalty, disclosure, confidentiality, diligence, and accounting.

CA Real Estate - California Real Estate Exam Practice Test