California — Contracts — California Real Estate — State Law Practice Test

This California Real Estate — State Law California — Contracts practice set has 18 practice questions based on the official exam materials, each with an instant explanation.

Sample questions

Three questions from the California — Contracts bank with the correct answer and an explanation. The practice quiz above draws 18 questions at random from the same bank.

1. Under California Business & Professions Code §10176(f), what must every exclusive listing contain to protect the licensee from discipline?

   • A definite, specified date of final and complete termination — Correct answer
   • A clause stating the listing runs until the property is sold
   • A commission rate fixed by the DRE
   • An automatic-renewal provision

   Explanation: BPC §10176(f) makes it a disciplinary cause for a licensee to claim compensation under an exclusive listing or buyer's-agent contract that does not contain a definite, specified date of final and complete termination. An open-ended exclusive listing (e.g., one that runs 'until cancelled') is therefore improper in California. English term — Definite termination date（确定终止日期）: a specific calendar date on which an exclusive listing automatically ends. (BPC §10176(f).)

   Handbook: California Contracts — Definite termination date of exclusive listings (BPC §10176(f))

2. In California, which listing gives the listing broker a commission no matter who sells the property during the term — even the owner selling it personally?

   • An exclusive-right-to-sell listing — Correct answer
   • An exclusive-agency listing
   • An open listing
   • A net listing

   Explanation: An exclusive-right-to-sell listing entitles the listing broker to a commission if the property sells during the listing period regardless of who procures the buyer, including the owner. An exclusive-agency listing lets the owner sell personally without owing commission, and an open listing pays only the broker who actually procures the buyer. California still requires a definite termination date for the two exclusive forms (BPC §10176(f)). English term — Exclusive-right-to-sell（独家销售权挂牌）: the listing that pays the broker on any sale during the term. (BPC §10176(f); CA listing-agreement practice.)

   Handbook: California Contracts — Listing types (exclusive-right vs exclusive-agency vs open) (BPC §10176(f))

3. A California exclusive-agency listing differs from an exclusive-right-to-sell listing in what key way?

   • The seller may sell personally without owing the broker a commission — Correct answer
   • The exclusive-agency listing needs no termination date
   • Several brokers are appointed at once
   • The broker keeps any price above the seller's net figure

   Explanation: Under an exclusive-agency listing the seller appoints one broker as the only agent, but the seller reserves the right to sell the property personally without owing a commission; the broker is paid only if the broker or another agent procures the buyer. Under an exclusive-right-to-sell listing the broker is paid even on an owner sale. Both are exclusive forms and both need a definite termination date (BPC §10176(f)). English term — Exclusive-agency（独家代理挂牌）: one broker, but the owner can still sell commission-free. (CA listing practice; BPC §10176(f).)

   Handbook: California Contracts — Exclusive-agency vs exclusive-right-to-sell (BPC §10176(f))