DRE FINAL KNOWLEDGE UPDATED
ACTUAL EXAM QUESTIONS AND CORRECT
ANSWERS
●● The chief officer of the California Department of Real Estate (DRE)
is the:
Answer: Real Estate Commissioner.
●● To be eligible for a broker or agent license, the applicant needs to be
honest and truthful, complete mandatory education and:
Answer: pass the qualifying exam.
●● All real estate brokers and agents need to complete at least
__________ of continuing education (CE) every four years to renew a
license issued by the California Department of Real Estate (DRE).
Answer: 45 hours
●● The __________ is available to individuals who have obtained a
judgment against a licensee and are unable to recover the judgment from
the licensee for losses caused while acting as an agent.
Answer: Real Estate Recovery Fund
,●● A residential mortgage primarily for personal, family or household
use and secured by a deed of trust on a dwelling is known as a:
Answer: consumer purpose mortgage.
●● Agency in real estate related transactions includes relationships
between brokers and their:
Answer: principals and agents
●● A broker's representation of a client, such as a buyer or seller, is best
undertaken:
Answer: on a written employment agreement signed by both the client
and the broker.
●● The Agency Law Disclosure needs to be attached to which of the
following documents and signed by all parties in targeted transactions?
Answer: A purchase agreement, A seller's listing agreement, A
counteroffer.
●● Failure of the seller's agent to provide the seller with the Agency
Law Disclosure prior to entering into the listing agreement may result in:
Answer: the loss of their fee.
●● A(n) _________ arises when a broker or their agent, acting on behalf
of a client, has a competing professional or personal bias which hinders
,their ability to fulfill the fiduciary duties they have undertaken on behalf
of their client.
Answer: conflict of interest
●● A(n) __________ is a broker who simultaneously represents the best
interest of opposing parties in a transaction, e.g., both the buyer and the
seller.
Answer: dual agent
●● When a dual agency is established in a one-to-four unit residential
sales transaction, the broker may not:
Answer: pass on confidential pricing information to the opposing
parties.
●● Funds belonging to others which a broker and their agents handle
when acting in a transaction are called:
Answer: trust funds
●● A broker is required to regularly account to an owner on the status,
expenditure and location of negotiable trust funds, called a(n):
Answer: owner's statement
●● Regardless of race, all citizens of the United States have the right to
rent residential and commercial real estate under the federal:
, Answer: Civil Rights Act
●● _________ involves the restriction of a person seeking to buy or rent
a dwelling in a community in a manner that perpetuates segregated
housing patterns.
Answer: Steering
●● A residential landlord may not induce or attempt to induce an
individual to offer, or abstain from offering, a dwelling to prevent the
entry of certain classes of people into the neighborhood, known as:
Answer: blockbusting.
●● A(n) ___________ is housing intended for and solely occupied by
persons 62 years of age or older, or intended and operated for occupancy
by persons of 55 years of age or older.
Answer: senior citizen housing project
●● California's Unruh Civil Rights Act specifically prohibits
discrimination by:
Answer: businesses
●● California anti-discrimination law is enforced by:
Answer: the Civil Rights Department (formally the Department of Fair
Employment and Housing).
ACTUAL EXAM QUESTIONS AND CORRECT
ANSWERS
●● The chief officer of the California Department of Real Estate (DRE)
is the:
Answer: Real Estate Commissioner.
●● To be eligible for a broker or agent license, the applicant needs to be
honest and truthful, complete mandatory education and:
Answer: pass the qualifying exam.
●● All real estate brokers and agents need to complete at least
__________ of continuing education (CE) every four years to renew a
license issued by the California Department of Real Estate (DRE).
Answer: 45 hours
●● The __________ is available to individuals who have obtained a
judgment against a licensee and are unable to recover the judgment from
the licensee for losses caused while acting as an agent.
Answer: Real Estate Recovery Fund
,●● A residential mortgage primarily for personal, family or household
use and secured by a deed of trust on a dwelling is known as a:
Answer: consumer purpose mortgage.
●● Agency in real estate related transactions includes relationships
between brokers and their:
Answer: principals and agents
●● A broker's representation of a client, such as a buyer or seller, is best
undertaken:
Answer: on a written employment agreement signed by both the client
and the broker.
●● The Agency Law Disclosure needs to be attached to which of the
following documents and signed by all parties in targeted transactions?
Answer: A purchase agreement, A seller's listing agreement, A
counteroffer.
●● Failure of the seller's agent to provide the seller with the Agency
Law Disclosure prior to entering into the listing agreement may result in:
Answer: the loss of their fee.
●● A(n) _________ arises when a broker or their agent, acting on behalf
of a client, has a competing professional or personal bias which hinders
,their ability to fulfill the fiduciary duties they have undertaken on behalf
of their client.
Answer: conflict of interest
●● A(n) __________ is a broker who simultaneously represents the best
interest of opposing parties in a transaction, e.g., both the buyer and the
seller.
Answer: dual agent
●● When a dual agency is established in a one-to-four unit residential
sales transaction, the broker may not:
Answer: pass on confidential pricing information to the opposing
parties.
●● Funds belonging to others which a broker and their agents handle
when acting in a transaction are called:
Answer: trust funds
●● A broker is required to regularly account to an owner on the status,
expenditure and location of negotiable trust funds, called a(n):
Answer: owner's statement
●● Regardless of race, all citizens of the United States have the right to
rent residential and commercial real estate under the federal:
, Answer: Civil Rights Act
●● _________ involves the restriction of a person seeking to buy or rent
a dwelling in a community in a manner that perpetuates segregated
housing patterns.
Answer: Steering
●● A residential landlord may not induce or attempt to induce an
individual to offer, or abstain from offering, a dwelling to prevent the
entry of certain classes of people into the neighborhood, known as:
Answer: blockbusting.
●● A(n) ___________ is housing intended for and solely occupied by
persons 62 years of age or older, or intended and operated for occupancy
by persons of 55 years of age or older.
Answer: senior citizen housing project
●● California's Unruh Civil Rights Act specifically prohibits
discrimination by:
Answer: businesses
●● California anti-discrimination law is enforced by:
Answer: the Civil Rights Department (formally the Department of Fair
Employment and Housing).
