California DRE Timed Mock
Exam 2 Practice Questions
And Correct Answers (Verified
Answers) Plus Rationales 2026
Q&A | Instant Download Pdf
1. Which ownership estate has the greatest bundle of
rights?
A. Life estate
B. Leasehold estate
C. Fee simple absolute
D. Easement
Answer: C. Fee simple absolute
Fee simple absolute provides the highest form of private
ownership with the fewest restrictions.
2. An agency relationship created by conduct rather than
written agreement is:
A. Ostensible agency
B. Implied agency
,C. Universal agency
D. Designated agency
Answer: B. Implied agency
Implied agency arises from the actions of the parties rather
than an express agreement.
3. A broker owes the highest fiduciary duty to:
A. The public
B. The DRE
C. The principal
D. Escrow
Answer: C. The principal
The broker must place the client's interests above all others.
4. Which contract is fully performed by all parties?
A. Executory contract
B. Void contract
C. Voidable contract
D. Executed contract
Answer: D. Executed contract
An executed contract has been completely fulfilled.
5. Which type of deed offers the greatest protection to a
buyer?
,A. Quitclaim deed
B. Grant deed
C. General warranty deed
D. Tax deed
Answer: C. General warranty deed
Although uncommon in California, a general warranty deed
provides the broadest warranties.
6. A lien that has priority based on recording date is:
A. Property tax lien
B. Mechanic's lien
C. Judgment lien
D. Trust deed
Answer: D. Trust deed
Most voluntary liens follow the "first to record" rule.
7. The primary purpose of escrow is to:
A. Finance the buyer
B. Protect all parties by following mutual instructions
C. Inspect the property
D. Guarantee market value
Answer: B. Protect all parties by following mutual
instructions
Escrow acts as a neutral third party.
, 8. A buyer acquires equitable title when:
A. Escrow closes
B. Loan funds
C. The purchase contract becomes binding
D. The deed is recorded
Answer: C. The purchase contract becomes binding
Legal title transfers later upon delivery and recording of the
deed.
9. Which appraisal principle says value is affected by
excessive improvements nearby?
A. Contribution
B. Anticipation
C. Regression
D. Progression
Answer: D. Progression
Higher-value neighboring properties increase surrounding
property values.
10. A property owner who continuously occupies another's
land openly may acquire ownership through:
A. Prescription
B. Easement
C. Adverse possession
D. License
Exam 2 Practice Questions
And Correct Answers (Verified
Answers) Plus Rationales 2026
Q&A | Instant Download Pdf
1. Which ownership estate has the greatest bundle of
rights?
A. Life estate
B. Leasehold estate
C. Fee simple absolute
D. Easement
Answer: C. Fee simple absolute
Fee simple absolute provides the highest form of private
ownership with the fewest restrictions.
2. An agency relationship created by conduct rather than
written agreement is:
A. Ostensible agency
B. Implied agency
,C. Universal agency
D. Designated agency
Answer: B. Implied agency
Implied agency arises from the actions of the parties rather
than an express agreement.
3. A broker owes the highest fiduciary duty to:
A. The public
B. The DRE
C. The principal
D. Escrow
Answer: C. The principal
The broker must place the client's interests above all others.
4. Which contract is fully performed by all parties?
A. Executory contract
B. Void contract
C. Voidable contract
D. Executed contract
Answer: D. Executed contract
An executed contract has been completely fulfilled.
5. Which type of deed offers the greatest protection to a
buyer?
,A. Quitclaim deed
B. Grant deed
C. General warranty deed
D. Tax deed
Answer: C. General warranty deed
Although uncommon in California, a general warranty deed
provides the broadest warranties.
6. A lien that has priority based on recording date is:
A. Property tax lien
B. Mechanic's lien
C. Judgment lien
D. Trust deed
Answer: D. Trust deed
Most voluntary liens follow the "first to record" rule.
7. The primary purpose of escrow is to:
A. Finance the buyer
B. Protect all parties by following mutual instructions
C. Inspect the property
D. Guarantee market value
Answer: B. Protect all parties by following mutual
instructions
Escrow acts as a neutral third party.
, 8. A buyer acquires equitable title when:
A. Escrow closes
B. Loan funds
C. The purchase contract becomes binding
D. The deed is recorded
Answer: C. The purchase contract becomes binding
Legal title transfers later upon delivery and recording of the
deed.
9. Which appraisal principle says value is affected by
excessive improvements nearby?
A. Contribution
B. Anticipation
C. Regression
D. Progression
Answer: D. Progression
Higher-value neighboring properties increase surrounding
property values.
10. A property owner who continuously occupies another's
land openly may acquire ownership through:
A. Prescription
B. Easement
C. Adverse possession
D. License
