California DRE Timed Mock
Exam 1 Practice Questions
And Correct Answers (Verified
Answers) Plus Rationales 2026
Q&A | Instant Download Pdf
1. A fee simple absolute estate is best described as:
A. Ownership for a fixed period of time
B. The greatest interest a person can own in real property
C. A leasehold interest
D. Ownership subject to automatic termination
Answer: B. The greatest interest a person can own in real
property
Rationale: Fee simple absolute provides complete ownership
with the fewest restrictions recognized by law.
2. Which type of agency is created by written agreement?
A. Ostensible agency
B. Implied agency
C. Express agency
D. Agency by ratification
,Rationale: Express agency is intentionally created through
oral or written agreement. Listing agreements are typically
written.
3. Which document transfers title after a foreclosure sale?
A. Grant deed
B. Quitclaim deed
C. Trustee's deed
D. Warranty deed
Rationale: After a trustee's sale under a deed of trust, title is
transferred through a trustee's deed.
4. Which government power allows property to be taken for
public use with compensation?
A. Police power
B. Taxation
C. Escheat
D. Eminent domain
Rationale: Eminent domain allows the government to
condemn private property for public use upon payment of just
compensation.
5. The most important fiduciary duty owed by an agent to a
principal is:
,A. Accounting
B. Reasonable care
C. Disclosure
D. Loyalty
Rationale: Loyalty requires the agent to place the client's
interests above all others.
6. Real property includes:
A. Furniture
B. Appliances not attached
C. Land and permanently attached improvements
D. Personal vehicles
Rationale: Real property consists of land and anything
permanently affixed to it.
7. Which legal description is most commonly used in
subdivisions?
A. Metes and bounds
B. Government survey
C. Lot and block
D. Rectangular survey
Rationale: Recorded subdivision maps use the lot and block
system.
8. A unilateral contract becomes binding:
, A. When signed by one party
B. When the requested act is performed
C. Upon verbal acceptance
D. After escrow closes
Rationale: Acceptance of a unilateral contract occurs through
performance.
9. A broker who represents both buyer and seller with
informed consent is practicing:
A. Single agency
B. Universal agency
C. Dual agency
D. Ostensible agency
Rationale: California permits dual agency with full disclosure
and consent.
10. A deed must be accepted by the grantee to:
A. Be recorded
B. Be notarized
C. Transfer title
D. Create escrow
Rationale: Delivery and acceptance are essential elements of
a valid deed.
11. Which loan generally has the lowest lender risk?
Exam 1 Practice Questions
And Correct Answers (Verified
Answers) Plus Rationales 2026
Q&A | Instant Download Pdf
1. A fee simple absolute estate is best described as:
A. Ownership for a fixed period of time
B. The greatest interest a person can own in real property
C. A leasehold interest
D. Ownership subject to automatic termination
Answer: B. The greatest interest a person can own in real
property
Rationale: Fee simple absolute provides complete ownership
with the fewest restrictions recognized by law.
2. Which type of agency is created by written agreement?
A. Ostensible agency
B. Implied agency
C. Express agency
D. Agency by ratification
,Rationale: Express agency is intentionally created through
oral or written agreement. Listing agreements are typically
written.
3. Which document transfers title after a foreclosure sale?
A. Grant deed
B. Quitclaim deed
C. Trustee's deed
D. Warranty deed
Rationale: After a trustee's sale under a deed of trust, title is
transferred through a trustee's deed.
4. Which government power allows property to be taken for
public use with compensation?
A. Police power
B. Taxation
C. Escheat
D. Eminent domain
Rationale: Eminent domain allows the government to
condemn private property for public use upon payment of just
compensation.
5. The most important fiduciary duty owed by an agent to a
principal is:
,A. Accounting
B. Reasonable care
C. Disclosure
D. Loyalty
Rationale: Loyalty requires the agent to place the client's
interests above all others.
6. Real property includes:
A. Furniture
B. Appliances not attached
C. Land and permanently attached improvements
D. Personal vehicles
Rationale: Real property consists of land and anything
permanently affixed to it.
7. Which legal description is most commonly used in
subdivisions?
A. Metes and bounds
B. Government survey
C. Lot and block
D. Rectangular survey
Rationale: Recorded subdivision maps use the lot and block
system.
8. A unilateral contract becomes binding:
, A. When signed by one party
B. When the requested act is performed
C. Upon verbal acceptance
D. After escrow closes
Rationale: Acceptance of a unilateral contract occurs through
performance.
9. A broker who represents both buyer and seller with
informed consent is practicing:
A. Single agency
B. Universal agency
C. Dual agency
D. Ostensible agency
Rationale: California permits dual agency with full disclosure
and consent.
10. A deed must be accepted by the grantee to:
A. Be recorded
B. Be notarized
C. Transfer title
D. Create escrow
Rationale: Delivery and acceptance are essential elements of
a valid deed.
11. Which loan generally has the lowest lender risk?
