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!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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What outcome could result from the breach of a condition compared to the breach of a covenant?

Breach of condition can lead to loss of property.
Breach of condition results in money damages.
Breach of covenant leads to potential incarceration.
Both breaches have the same consequences.

The correct answer is: Breach of condition can lead to loss of property.

Breach of condition can indeed lead to the loss of property because conditions are essential elements of a contract that, if not met, can result in severe consequences such as forfeiture of the property. On the other hand, breach of covenant usually results in monetary damages or the enforcement of the agreement's terms, rather than leading to the loss of the property. Therefore, in this case, the correct answer is A, as it accurately highlights the different outcomes that could result from breaches of conditions compared to breaches of covenants.