California Real Estate Salesperson Course Notes

If a question asks whether an item transfers with the property, start with attachment and intent. A fountain plumbed into the yard, a built-in bookcase, or a fixture attached to the land usually points to real property under California fixture rules. A removable birdbath, movable furniture, or item specifically excluded in the agreement points toward personal property or a negotiated exception.

Agency questions ask who the salesperson represents and what duty flows from that relationship. If the salesperson represents the seller, loyalty, obedience, disclosure, reasonable care, accounting, and confidentiality run to the seller. If the salesperson represents the buyer, those same fiduciary duties run to the buyer. The exam usually punishes answers that put convenience, commission, or friendship ahead of the client's interest.

Contract questions usually ask whether an offer became binding or whether a response changed the deal. Acceptance must match the offer; a changed price, closing date, deposit, or contingency is a counteroffer. If the facts say the seller changed a term, the buyer must accept that counteroffer before a contract exists.

Finance questions often separate the promise to repay from the instrument that secures repayment. A promissory note is the borrower's written promise to pay. A deed of trust or mortgage connects the debt to real property as security. Do not choose promissory note when the facts ask what creates the lender's security interest in the property.

Escrow questions ask who holds documents and money while conditions are being satisfied. The escrow holder is a neutral stakeholder following written instructions, not an advocate for either side. If the question says funds or deeds should be released before instructions are met, the answer is usually that escrow must follow the instructions exactly.

Final review questions are built to see whether the student can identify the duty hidden inside the story. If the facts mention trust money, think delivery, separation, and broker control. If the facts mention a known defect, hazard, roof leak, fault line, or neighborhood issue, think disclosure and avoid answers that hide or soften the fact.