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

6% as set by the Bureau of Real Estate

Answer

5% for residential and 10% for commercial

Answer

3% for the listing agent and 3% for the buyer's agent

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

Grant Deed

Answer

Preliminary Title Report

Answer

Estoppel Certificate

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

To report the property's current market value adjusted for environmental risks

Answer

To certify that the property meets seismic retrofit requirements

Answer

To list all prior insurance claims related to natural disasters

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

Only disclose dual agency status at the close of escrow

Answer

Reduce the total commission by half

Answer

Represent only the seller's interests while informing the buyer

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

30 days

Answer

60 days

Answer

120 days

Question 6

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

Accepted Answer

Tentative map followed by a final map

Answer

Parcel map

Answer

Lot line adjustment

Answer

Certificate of compliance