California DRE Final Simulation
Practice Questions And
Correct Answers (Verified
Answers) Plus Rationales 2026
Q&A | Instant Download Pdf
1. A valid contract requires all of the following EXCEPT:
A. Competent parties
B. Mutual consent
C. Consideration
D. Notarization
Rationale: Notarization is generally not required for a
contract to be valid.
2. Which duty is owed by an agent to a principal?
A. Caveat emptor
B. Loyalty
C. Adverse possession
D. Escheat
Rationale: Loyalty is one of the fiduciary duties owed by an
agent.
,3. Real property includes:
A. Furniture
B. Personal vehicles
C. Land and improvements
D. Stocks
Rationale: Real property consists of land and anything
permanently attached.
4. Which form of ownership includes the right of
survivorship?
A. Tenancy in common
B. Community property
C. Sole ownership
D. Joint tenancy
Rationale: Joint tenancy automatically transfers ownership to
surviving joint tenants.
5. Which government power allows property to be taken for
public use?
A. Police power
B. Taxation
C. Escheat
D. Eminent domain
,Rationale: Eminent domain requires just compensation when
private property is taken.
6. A lien is:
A. Ownership of property
B. A lease agreement
C. A claim against property as security for debt
D. A deed restriction
Rationale: Liens secure payment of obligations.
7. Which deed provides the greatest protection to the
buyer?
A. Quitclaim deed
B. Grant deed
C. Bargain and sale deed
D. General warranty deed
Rationale: A general warranty deed offers the broadest
guarantees against title defects.
8. An easement appurtenant benefits:
A. A person
B. The government
C. Another parcel of land
D. A lender
Rationale: It benefits the dominant tenement.
, 9. A freehold estate is:
A. Leasehold
B. License
C. Fee simple estate
D. Easement
Rationale: Fee simple is the highest form of ownership.
10. The primary purpose of zoning is:
A. Increase taxes
B. Control rents
C. Regulate land use
D. Transfer title
Rationale: Zoning separates and regulates land uses.
11. Which disclosure is required when a property is in a
Special Flood Hazard Area?
A. Lead disclosure
B. Natural Hazard Disclosure
C. Agency Disclosure
D. HOA budget
Rationale: California requires disclosure of certain natural
hazards.
Practice Questions And
Correct Answers (Verified
Answers) Plus Rationales 2026
Q&A | Instant Download Pdf
1. A valid contract requires all of the following EXCEPT:
A. Competent parties
B. Mutual consent
C. Consideration
D. Notarization
Rationale: Notarization is generally not required for a
contract to be valid.
2. Which duty is owed by an agent to a principal?
A. Caveat emptor
B. Loyalty
C. Adverse possession
D. Escheat
Rationale: Loyalty is one of the fiduciary duties owed by an
agent.
,3. Real property includes:
A. Furniture
B. Personal vehicles
C. Land and improvements
D. Stocks
Rationale: Real property consists of land and anything
permanently attached.
4. Which form of ownership includes the right of
survivorship?
A. Tenancy in common
B. Community property
C. Sole ownership
D. Joint tenancy
Rationale: Joint tenancy automatically transfers ownership to
surviving joint tenants.
5. Which government power allows property to be taken for
public use?
A. Police power
B. Taxation
C. Escheat
D. Eminent domain
,Rationale: Eminent domain requires just compensation when
private property is taken.
6. A lien is:
A. Ownership of property
B. A lease agreement
C. A claim against property as security for debt
D. A deed restriction
Rationale: Liens secure payment of obligations.
7. Which deed provides the greatest protection to the
buyer?
A. Quitclaim deed
B. Grant deed
C. Bargain and sale deed
D. General warranty deed
Rationale: A general warranty deed offers the broadest
guarantees against title defects.
8. An easement appurtenant benefits:
A. A person
B. The government
C. Another parcel of land
D. A lender
Rationale: It benefits the dominant tenement.
, 9. A freehold estate is:
A. Leasehold
B. License
C. Fee simple estate
D. Easement
Rationale: Fee simple is the highest form of ownership.
10. The primary purpose of zoning is:
A. Increase taxes
B. Control rents
C. Regulate land use
D. Transfer title
Rationale: Zoning separates and regulates land uses.
11. Which disclosure is required when a property is in a
Special Flood Hazard Area?
A. Lead disclosure
B. Natural Hazard Disclosure
C. Agency Disclosure
D. HOA budget
Rationale: California requires disclosure of certain natural
hazards.
