Real Estate Sales Exam FREE CA Real Estate Sales Question and Answers 2

Question 1

Under California law, what is the maximum commission rate a real estate broker can charge on a residential sale?

Accepted Answer

There is no legally set maximum; commissions are negotiable

Answer

In California, real estate commissions are fully negotiable between the broker and the client, with no legally mandated maximum rate.

Question 2

Which document must a seller in California provide to a buyer disclosing known material facts about the property's condition?

Accepted Answer

Transfer Disclosure Statement (TDS)

Answer

California Civil Code requires sellers of residential property to complete a Transfer Disclosure Statement revealing known defects and material facts.

Question 3

In California, what is the purpose of the Natural Hazard Disclosure (NHD) report?

Accepted Answer

To disclose whether the property is in a zone subject to natural hazards such as floods, earthquakes, or wildfires

Answer

The NHD report informs buyers whether the property lies within mapped natural hazard zones including flood, fire, earthquake fault, and seismic hazard areas.

Question 4

A California real estate licensee who acts as a dual agent must do which of the following?

Accepted Answer

Obtain written consent from both the buyer and the seller before acting as a dual agent

Answer

California law requires that dual agency be disclosed and that written consent be obtained from both parties before the agent may represent both sides.

Question 5

What is the statutory vesting period for a mechanic's lien in California after completion of a work of improvement?

Accepted Answer

90 days

Answer

In California, a direct contractor must record a mechanic's lien within 90 days after completion of the work of improvement.

Real Estate Sales Exam Practice Test

Real Estate Sales Exam Practice Test

Real Estate Sales Exam FREE CA Real Estate Sales Question and Answers 2