FREE CA Real Estate Sales Question and Answers Flashcards

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

Answer: There is no legally set maximum; commissions are negotiable

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

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

Answer: Transfer Disclosure Statement (TDS)

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

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

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

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

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

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

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

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

Answer: 90 days

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

Under California's Subdivision Map Act, a developer dividing land into five or more parcels must file which type of map?

Answer: Tentative map followed by a final map

Subdivisions of five or more lots in California require filing a tentative map for review and approval, followed by a final map for recordation.