10 exam-style questions with answers and explanations, straight from our 1,030-question bank. Tap an answer to check yourself. When you're ready, take the scored version in the free practice test.
The CA-RE-B exam has 200 questions and runs 4 hours.
These 10 free CA-RE-B questions are organized by exam domain, so you can see how each part of the California Real Estate Broker Exam blueprint is tested. Reveal the answer and explanation under each question.
In California, for six years, a neighbor has openly, continuously, and without permission used a private driveway while claiming a right to do so. The neighbor seeks only continued access, never possessed the parcel exclusively, and paid none of its property taxes. Which claim best fits these facts?
Correct answer: B - A prescriptive easement based on the adverse use for more than five years
Diego and Priya hold a California property as joint tenants. Without Priya's consent, Diego records a deed conveying his entire one-half interest to Mei. Diego then dies. Assuming no other agreement affects title, how do Priya and Mei hold the property?
Correct answer: D - Priya and Mei each own an undivided one-half as tenants in common
A California subdivider has received only a preliminary public report for a new condominium project. A prospective purchaser wants to secure a unit immediately. What may the sales agent accept under that report?
Correct answer: A - A nonbinding reservation backed by fully refundable reservation money
A buyer signs an offer prepared by the buyer's attorney and sends it to the buyer's real estate agent. The agent did not prepare the offer and has not yet delivered California's statutory agency disclosure to the buyer. What is the latest permitted delivery time?
Correct answer: C - No later than the next business day after the agent receives the offer
After both principals give informed consent to dual agency, the seller privately states a minimum acceptable price and the buyer privately states a higher maximum. The buyer then asks whether the seller will accept less than the listing price. Which response preserves the agent's duties?
Correct answer: A - Keep both price limits confidential and continue impartially unless disclosure is authorized
A listing broker submits an offer on the client's property through an LLC the broker controls. The broker argues that no personal-interest disclosure is needed because the LLC, not the broker, is named as buyer. What must the broker do before the seller becomes contractually bound?
Correct answer: D - Before the seller is bound, make written disclosure of the license, LLC control, financial interest, and conflict, and obtain informed consent
Appraisal workfile data show: comparable sale price, $845,000; pool contribution, $40,000, present only in the comparable; renovated-kitchen contribution, $25,000, present only in the subject. The pool's installation cost was $70,000. What adjusted sale-price indication does the comparable provide?
Correct answer: C - $830,000
An income property reports effective gross income of $420,000, operating expenses of $168,000, and annual debt service of $210,000. The owner also reports $55,000 of depreciation and $22,000 of income tax. Using standard net operating income, which DSCR and interpretation are correct?
Correct answer: B - 1.20; net operating income exceeds annual debt service by $42,000
A parcel is zoned for industrial use. Apartments are physically possible and promise the highest projected profit, but residential use is prohibited and market evidence does not support a probable zoning change. A warehouse is permitted, physically possible, financially feasible, and maximally productive among the permitted uses. Which highest-and-best-use conclusion is supportable?
Correct answer: D - Select the warehouse because apartments fail the legal-permissibility test
The lender's underwriting guideline states, 'LTV basis: lower of purchase price or appraised value; maximum LTV: 78%.' For a $780,000 purchase price, $760,000 appraisal, and $570,000 loan request, what LTV decision should the lender make?
Correct answer: A - The LTV is 75.0%, so the request is within the lender's limit
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