California Real Estate Practice Exam

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Study for the California Real Estate Exam with confidence. Engage with interactive questions designed to enhance your understanding of real estate principles, laws, and practices. Prepare thoroughly for your licensing test and ensure you have the knowledge to succeed in your real estate career!

Practice this question and more.

A listing agreement establishes a relationship between?

Buyer and seller
Seller and broker
Broker and government
Inspector and buyer

The correct answer is: Seller and broker

A is incorrect because a buyer is not involved in a listing agreement. C is incorrect because the government is not involved in a listing agreement. D is incorrect because an inspector is not involved in a listing agreement. The correct answer is B Seller and broker. A listing agreement is a contract between a real estate seller and a real estate broker or firm. The seller gives the broker the authority to act as their agent in selling their property. This allows the broker to list the property on the market and find potential buyers. Option A is incorrect because a buyer is not involved in a listing agreement. The buyer enters into a separate contract with their own real estate agent, who then works with the seller's agent to facilitate the sale. Option C is incorrect because the government is not involved in a listing agreement. While government regulations may apply to real estate transactions, the listing agreement is a private contract between the seller and broker. Option D is incorrect because an inspector is not involved in a listing agreement. An inspector is hired by the buyer to assess the condition of the property and is not a party to the listing agreement.