California Real Estate Practice Exam

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Prepare for the California Real Estate Exam. Study with flashcards and multiple-choice questions, each question includes hints and explanations. Get ready to ace your exam!

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Upon the sale of how many units or more must the subdivider and new purchaser report the change to the Commissioner?

Five
Six
Seven
Four

The correct answer is: Five

The requirement for a subdivider and new purchaser to report a change to the Commissioner is specifically triggered after the sale of five units or more. This rule is in place to ensure that proper oversight and regulation of real estate subdivisions occur, which helps protect consumers and maintain market integrity. Reporting after the sale of five units allows regulatory bodies to monitor developments and identify possible trends or issues arising within specific subdivisions. Sales below this threshold do not necessitate the same level of reporting, as they may not significantly impact the overall market or raise similar regulatory concerns. Therefore, recognizing the threshold of five units is crucial for both compliance with real estate laws and safeguarding consumer interests in the California real estate market.