DRE FINAL EXAM PRACTICE (REAL ESTATE PRINCIPLES) QUESTIONS WITH CORRECT ANSWERS 2025

DRE FINAL EXAM PRACTICE (REAL ESTATE
PRINCIPLES) QUESTIONS WITH CORRECT
ANSWERS 2025
TheNCaliforniaNLegislatureNcreatedNtheN__________NtoNoversee,Nregulate,NadministerNandNenforce
NtheNrealNestateNlaw.N-NCORRECTNANSWERN-CaliforniaNDepartmentNofNRealNEstateN(DRE)




TheNchiefNofficerNofNtheNCaliforniaNDepartmentNofNRealNEstateN(DRE)NisNthe:N-NCORRECTNANSWERN-
RealNEstateNCommissioner.



ToNbeNeligibleNforNaNbrokerNorNagentNlicense,NtheNapplicantNneedsNtoNbeNhonestNandNtruthful,Ncom
pleteNmandatoryNeducationNand:N-NCORRECTNANSWERN-passNtheNqualifyingNexam.



AllNrealNestateNbrokersNandNagentsNneedNtoNcompleteNatNleastN__________NofNcontinuingNeducati
onN(CE)NeveryNfourNyearsNtoNrenewNaNlicenseNissuedNbyNtheNCaliforniaNDepartmentNofNRealNEstateN
(DRE).N-NCORRECTNANSWERN-45Nhours



TheN__________NisNavailableNtoNindividualsNwhoNhaveNobtainedNaNjudgmentNagainstNaNlicenseeNa
ndNareNunableNtoNrecoverNtheNjudgmentNfromNtheNlicenseeNforNlossesNcausedNwhileNactingNasNanNa
gent.N-NCORRECTNANSWERN-RealNEstateNRecoveryNFund



ANresidentialNmortgageNprimarilyNforNpersonal,NfamilyNorNhouseholdNuseNandNsecuredNbyNaNdeedN
ofNtrustNonNaNdwellingNisNknownNasNa:N-NCORRECTNANSWERN-consumerNpurposeNmortgage.



AgencyNinNrealNestateNrelatedNtransactionsNincludesNrelationshipsNbetweenNbrokersNandNtheir:N-
NCORRECTNANSWERN-principalsNandNagents




ANbroker'sNrepresentationNofNaNclient,NsuchNasNaNbuyerNorNseller,NisNbestNundertaken:N-
NCORRECTNANSWERN-


onNaNwrittenNemploymentNagreementNsignedNbyNbothNtheNclientNandNtheNbroker.

,TheNAgencyNLawNDisclosureNneedsNtoNbeNattachedNtoNwhichNofNtheNfollowingNdocumentsNandNsign
edNbyNallNpartiesNinNtargetedNtransactions?N-NCORRECTNANSWERN-
ANpurchaseNagreement,NANseller'sNlistingNagreement,NANcounteroffer.



FailureNofNtheNseller'sNagentNtoNprovideNtheNsellerNwithNtheNAgencyNLawNDisclosureNpriorNtoNenteri
ngNintoNtheNlistingNagreementNmayNresultNin:N-NCORRECTNANSWERN-theNlossNofNtheirNfee.



A(n)N_________NarisesNwhenNaNbrokerNorNtheirNagent,NactingNonNbehalfNofNaNclient,NhasNaNcompeti
ngNprofessionalNorNpersonalNbiasNwhichNhindersNtheirNabilityNtoNfulfillNtheNfiduciaryNdutiesNtheyNha
veNundertakenNonNbehalfNofNtheirNclient.N-NCORRECTNANSWERN-conflictNofNinterest



A(n)N__________NisNaNbrokerNwhoNsimultaneouslyNrepresentsNtheNbestNinterestNofNopposingNparti
esNinNaNtransaction,Ne.g.,NbothNtheNbuyerNandNtheNseller.N-NCORRECTNANSWERN-dualNagent



WhenNaNdualNagencyNisNestablishedNinNaNone-to-
fourNunitNresidentialNsalesNtransaction,NtheNbrokerNmayNnot:N-NCORRECTNANSWERN-
passNonNconfidentialNpricingNinformationNtoNtheNopposingNparties.



FundsNbelongingNtoNothersNwhichNaNbrokerNandNtheirNagentsNhandleNwhenNactingNinNaNtransaction
NareNcalled:N-NCORRECTNANSWERN-trustNfunds




ANbrokerNisNrequiredNtoNregularlyNaccountNtoNanNownerNonNtheNstatus,NexpenditureNandNlocationN
ofNnegotiableNtrustNfunds,NcalledNa(n):N-NCORRECTNANSWERN-owner'sNstatement



RegardlessNofNrace,NallNcitizensNofNtheNUnitedNStatesNhaveNtheNrightNtoNrentNresidentialNandNcomm
ercialNrealNestateNunderNtheNfederal:N-NCORRECTNANSWERN-CivilNRightsNAct



_________NinvolvesNtheNrestrictionNofNaNpersonNseekingNtoNbuyNorNrentNaNdwellingNinNaNcommunit
yNinNaNmannerNthatNperpetuatesNsegregatedNhousingNpatterns.N-NCORRECTNANSWERN-Steering

,ANresidentialNlandlordNmayNnotNinduceNorNattemptNtoNinduceNanNindividualNtoNoffer,NorNabstainNfro
mNoffering,NaNdwellingNtoNpreventNtheNentryNofNcertainNclassesNofNpeopleNintoNtheNneighborhood,N
knownNas:N-NCORRECTNANSWERN-blockbusting.



A(n)N___________NisNhousingNintendedNforNandNsolelyNoccupiedNbyNpersonsN62NyearsNofNageNorNol
der,NorNintendedNandNoperatedNforNoccupancyNbyNpersonsNofN55NyearsNofNageNorNolder.N-
NCORRECTNANSWERN-seniorNcitizenNhousingNproject




California'sNUnruhNCivilNRightsNActNspecificallyNprohibitsNdiscriminationNby:N-NCORRECTNANSWERN-
businesses



CaliforniaNanti-discriminationNlawNisNenforcedNby:N-NCORRECTNANSWERN-
theNCivilNRightsNDepartmentN(formallyNtheNDepartmentNofNFairNEmploymentNandNHousing).



UntilN__________NwasNaddedNtoNtheNanti-
discriminationNlawsNinN1992,NitNwasNlegalNtoNexcludeNminorsNunderNtheNageNofN18NfromNhousingNa
ccommodations.N-NCORRECTNANSWERN-familialNstatus



__________NpracticesNareNthoseNwhichNareNnotNopenlyNdiscriminatory,NbutNresultNinNdiscriminato
ryNeffects.N-NCORRECTNANSWERN-ImplicitNdiscriminatory



FailingNtoNprovideNfinancingNinNcertainNcommunitiesNisNcalled:N-NCORRECTNANSWERN-redlining.



TheN__________NisNaN1974NfederalNenactmentNprohibitingNlendersNfromNdiscriminatingNagainstNb
orrowersNfromNaNprotectedNclass.N-NCORRECTNANSWERN-EqualNCreditNOpportunityNAct



ANlenderNmayNlawfullyNconsiderN___________NwhenNdeterminingNtheNapplicant'sNcreditworthine
ss.N-NCORRECTNANSWERN-aNmortgageNapplicant'sNage

, ConsumersNmayNrequestNaNfreeNcopyNofNtheirNcreditNreportN_________NtoNreviewNitNforNerrors.N-
NCORRECTNANSWERN-onceNeveryNyear




TheN__________NrequiresNlendersNtoNcompileNandNsubmitNtheirNhomeNloanNoriginationNdataNtoNth
eirNrespectiveNsupervisoryNagencies.N-NCORRECTNANSWERN-
HomeNMortgageNDisclosureNActN(HMDA)



TheNprintingNorNpublishingNofNanNadvertisementNforNtheNsaleNorNrentalNofNresidentialNpropertyNtha
tNindicatesNaNwrongfulNdiscriminatoryNpreferenceNisNaNviolationNofNthe:N-NCORRECTNANSWERN-
FederalNFairNHousingNActN(FFHA).



TheNDepartmentNofNHousingNandNUrbanNDevelopmentN(HUD)NissuesNguidelinesNthatNrequireNrealN
estateNbrokersNsellingNorNrentingNsingleNfamilyNresidencesN(SFRs)NdisplayNa(n):N-
NCORRECTNANSWERN-fairNhousingNposter.




ANpropertyNdefectNwhichNwouldNlikelyNaffectNtheNpriceNaNbuyerNwouldNbeNwillingNtoNpayNisNreferre
dNtoNas:N-NCORRECTNANSWERN-aNmaterialNfact.



TheNbrokerNanalyzesNtheNsuitabilityNofNanNincomeNpropertyNwhichNisNforNsaleNbyNpreparingNa(n)N__
__________NandNreviewingNitNwithNtheNbuyer.N-NCORRECTNANSWERN-
AnnualNPropertyNOperatingNDataNSheetN(APOD)



ANseller'sNbrokerNandNtheirNagentsNhaveNaN___________,NowedNsolelyNtoNtheNsellerNwhoNhasNempl
oyedNtheNbroker,NtoNdiligentlyNmarketNtheNlistedNpropertyNforNsale.N-NCORRECTNANSWERN-
fiduciaryNagencyNduty



ANsellerNofNaNone-to-
fourNunitNresidentialNpropertyNneedsNtoNcompleteNandNdeliverNtoNaNprospectiveNbuyerNaNstatutory
NformNcalledNa(n):N-NCORRECTNANSWERN-TransferNDisclosureNStatementN(TDS).