California Real Estate Practice Exam

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Prepare for the California Real Estate Exam. Study with flashcards and questions featuring hints and explanations. Get exam-ready!

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According to California law, legal closing occurs at which of the following times?

When broker gets all required signatures and acceptance is acknowledged
When escrow disburses money (checks)
When funds for loan are placed in escrow
When all instruments necessary to transfer title have been executed and recorded

The correct answer is: When broker gets all required signatures and acceptance is acknowledged

The correct answer is when the broker gets all required signatures and acceptance is acknowledged. This is because in California, legal closing occurs when all parties have signed the necessary documents and acceptance is acknowledged. This step finalizes the transaction and signifies that all parties are in agreement with the terms of the contract. Escrow disbursing money, placing funds for a loan in escrow, or executing and recording title transfer instruments are important steps in the closing process, but they do not represent the official legal closing in California.