California — Practice of Real Estate & Disclosures — California Real Estate — State Law Practice Test

This California Real Estate — State Law California — Practice of Real Estate & Disclosures practice set has 40 practice questions based on the official exam materials, each with an instant explanation.

Sample questions

Three questions from the California — Practice of Real Estate & Disclosures bank with the correct answer and an explanation. The practice quiz above draws 30 questions at random from the same bank.

1. Under California Commissioner's Regulations, a broker who receives trust funds on behalf of another must place them into the owner's hands, a neutral escrow depository, or a trust fund account no later than what deadline?

   • Not later than three business days following receipt of the funds — Correct answer
   • Not later than 24 hours after receipt, including weekends
   • Not later than five calendar days following receipt
   • By the close of the calendar month in which they were received

   Explanation: 10 CCR §2832 requires the broker to place trust funds with the owner, a neutral escrow depository, or a trust fund account not later than three business days following receipt by the broker or the broker's salesperson. Trust funds（信托资金）: money a broker holds for another party (e.g., a buyer's deposit). Source: 10 CCR §2832.

   Handbook: California Practice — Trust fund deposit deadline (10 CCR §2832)

2. A buyer's offer is accompanied by a check that, by the offeror's written instructions, is not to be deposited or cashed until the offer is accepted. Under 10 CCR §2832, may the broker hold this check uncashed before acceptance?

   • Yes — if the seller is informed the check is being held; after acceptance it must be deposited within three business days — Correct answer
   • No — every check must be deposited within three business days of receipt regardless of any instruction
   • Yes — and the broker may keep the check uncashed indefinitely even after acceptance without further authorization
   • No — only the escrow company, never the broker, may ever hold an offeror's check

   Explanation: 10 CCR §2832 expressly permits a broker to hold an offeror's check uncashed until acceptance if the check is non-negotiable by its terms OR the offeror gave written instructions not to deposit/cash it before acceptance, AND the seller (offeree) is told the check is being held. After acceptance it must be placed within three business days. Offeror（要约人）: the party making the offer. Source: 10 CCR §2832.

   Handbook: California Practice — Holding an uncashed offer check (10 CCR §2832)

3. Under 10 CCR §2830, where must a California broker's trust fund account be maintained, and how must it be designated?

   • In a California bank or recognized depository, in the broker's name as trustee, designated as a trust account — Correct answer
   • In any out-of-state bank, in the salesperson's personal name, as an ordinary checking account
   • In a brokerage operating account so funds are available for office expenses
   • In a long-term certificate of deposit that locks the funds for at least one year

   Explanation: 10 CCR §2830 requires the trust fund account to be maintained in a bank or other recognized depository located in California, in the name of the broker as trustee, and designated as a trust account. The funds must be available for withdrawal without prior notice (a demand account). Trustee（受托人）: one who holds funds for another's benefit. Source: 10 CCR §2830.

   Handbook: California Practice — Trust account location and designation (10 CCR §2830)