California Real Estate Exam 2025–2026 | Accurate Real Exam
Questions and Verified Correct Answers | Updated & Graded A+
California Real Estate Salesperson and Broker Exam 2025–2026 | Verified Q&A Resource:
Covers Real Estate Principles, Property Ownership, Land Use Controls, Financing, Valuation,
Contracts, Agency Laws, and Practice Scenarios | 100% Correct Verified Solutions | Graded A+ |
2025/2026 Edition
Introduction
This updated 2025/2026 California Real Estate Exam guide contains fully verified and authentic
exam-style questions with detailed, correct answers. It is designed to help candidates master
essential concepts tested by the California Department of Real Estate (DRE), including property
law, ethical practices, and financial calculations. All answers are reviewed and graded A+ to
ensure readiness for both salesperson and broker licensing exams.
Answer Format
All correct answers are highlighted in bold and green, with detailed explanations to reinforce
real estate principles, licensing knowledge, and professional ethics required for exam success
and career competence.
California Real Estate Exam 2025–2026
Question 1: What is the primary purpose of the California Department of Real
Estate (DRE)?
A) To regulate property taxes
B) To license and regulate real estate professionals
C) To manage land use planning
D) To enforce building codes
B) To license and regulate real estate professionals
Rationale: The DRE oversees licensing, enforces real estate laws, and protects consumers.
Question 2: Which type of property ownership provides the most complete
control?
A) Tenancy in common
B) Joint tenancy
C) Fee simple absolute
D) Life estate
C) Fee simple absolute
Rationale: Offers full ownership without restrictions or time limits.
Question 3: What is the term for transferring property via a will?
A) Descent
,B) Devise
C) Bequest
D) Escheat
B) Devise
Rationale: Devise specifically refers to real property transfer through a will.
Question 4: What is the minimum earnest money deposit required in California?
A) 1% of purchase price
B) 3% of purchase price
C) No minimum required
D) $1,000
C) No minimum required
Rationale: The amount is negotiable between parties.
Question 5: What does FIRPTA stand for?
A) Federal Investment in Real Property Tax Act
B) Foreign Investment in Real Property Tax Act
C) Federal International Real Property Transaction Act
D) Foreign Income Real Property Tax Adjustment
B) Foreign Investment in Real Property Tax Act
Rationale: Requires withholding on foreign seller transactions.
Question 6: Which agency oversees environmental impact assessments in
California?
A) EPA
B) CEQA (California Environmental Quality Act)
C) HUD
D) FHA
B) CEQA (California Environmental Quality Act)
Rationale: CEQA mandates environmental reviews for projects.
Question 7: What is the maximum commission rate a broker can charge in
California?
A) 6%
B) 3%
C) No maximum; negotiable
D) 5%
C) No maximum; negotiable
Rationale: Commissions are freely negotiable.
Question 8: What is a contingency in a real estate contract?
A) A penalty clause
B) A condition that must be met
C) An automatic approval
D) A breach provision
B) A condition that must be met
Rationale: Protects parties until conditions like financing are fulfilled.
, Question 9: Which law mandates lead-based paint disclosure for pre-1978 homes?
A) RESPA
B) Title 24
C) Federal Lead-Based Paint Disclosure Rule
D) Megan's Law
C) Federal Lead-Based Paint Disclosure Rule
Rationale: EPA requires this for older properties.
Question 10: What is dual agency?
A) One agent for buyer and seller
B) Separate agents for each party
C) No agency
D) Implied agency
A) One agent for buyer and seller
Rationale: Requires informed consent from both parties.
Question 11: What is the statute of limitations for a written contract in California?
A) 2 years
B) 3 years
C) 4 years
D) 6 years
C) 4 years
Rationale: Civil Code §337 applies to written contracts.
Question 12: Which easement benefits a specific property?
A) Easement in gross
B) Easement appurtenant
C) License
D) Profit a prendre
B) Easement appurtenant
Rationale: Runs with the land to benefit a dominant estate.
Question 13: What is the purpose of a preliminary title report?
A) To appraise the property
B) To identify title issues
C) To survey the land
D) To set the purchase price
B) To identify title issues
Rationale: Provides a snapshot of title status.
Question 14: What is required for a valid power of attorney in California?
A) Verbal agreement
B) Written, signed, and notarized
C) Two witnesses only
D) No formalities
B) Written, signed, and notarized
Rationale: Probate Code §4121 sets these requirements.
Questions and Verified Correct Answers | Updated & Graded A+
California Real Estate Salesperson and Broker Exam 2025–2026 | Verified Q&A Resource:
Covers Real Estate Principles, Property Ownership, Land Use Controls, Financing, Valuation,
Contracts, Agency Laws, and Practice Scenarios | 100% Correct Verified Solutions | Graded A+ |
2025/2026 Edition
Introduction
This updated 2025/2026 California Real Estate Exam guide contains fully verified and authentic
exam-style questions with detailed, correct answers. It is designed to help candidates master
essential concepts tested by the California Department of Real Estate (DRE), including property
law, ethical practices, and financial calculations. All answers are reviewed and graded A+ to
ensure readiness for both salesperson and broker licensing exams.
Answer Format
All correct answers are highlighted in bold and green, with detailed explanations to reinforce
real estate principles, licensing knowledge, and professional ethics required for exam success
and career competence.
California Real Estate Exam 2025–2026
Question 1: What is the primary purpose of the California Department of Real
Estate (DRE)?
A) To regulate property taxes
B) To license and regulate real estate professionals
C) To manage land use planning
D) To enforce building codes
B) To license and regulate real estate professionals
Rationale: The DRE oversees licensing, enforces real estate laws, and protects consumers.
Question 2: Which type of property ownership provides the most complete
control?
A) Tenancy in common
B) Joint tenancy
C) Fee simple absolute
D) Life estate
C) Fee simple absolute
Rationale: Offers full ownership without restrictions or time limits.
Question 3: What is the term for transferring property via a will?
A) Descent
,B) Devise
C) Bequest
D) Escheat
B) Devise
Rationale: Devise specifically refers to real property transfer through a will.
Question 4: What is the minimum earnest money deposit required in California?
A) 1% of purchase price
B) 3% of purchase price
C) No minimum required
D) $1,000
C) No minimum required
Rationale: The amount is negotiable between parties.
Question 5: What does FIRPTA stand for?
A) Federal Investment in Real Property Tax Act
B) Foreign Investment in Real Property Tax Act
C) Federal International Real Property Transaction Act
D) Foreign Income Real Property Tax Adjustment
B) Foreign Investment in Real Property Tax Act
Rationale: Requires withholding on foreign seller transactions.
Question 6: Which agency oversees environmental impact assessments in
California?
A) EPA
B) CEQA (California Environmental Quality Act)
C) HUD
D) FHA
B) CEQA (California Environmental Quality Act)
Rationale: CEQA mandates environmental reviews for projects.
Question 7: What is the maximum commission rate a broker can charge in
California?
A) 6%
B) 3%
C) No maximum; negotiable
D) 5%
C) No maximum; negotiable
Rationale: Commissions are freely negotiable.
Question 8: What is a contingency in a real estate contract?
A) A penalty clause
B) A condition that must be met
C) An automatic approval
D) A breach provision
B) A condition that must be met
Rationale: Protects parties until conditions like financing are fulfilled.
, Question 9: Which law mandates lead-based paint disclosure for pre-1978 homes?
A) RESPA
B) Title 24
C) Federal Lead-Based Paint Disclosure Rule
D) Megan's Law
C) Federal Lead-Based Paint Disclosure Rule
Rationale: EPA requires this for older properties.
Question 10: What is dual agency?
A) One agent for buyer and seller
B) Separate agents for each party
C) No agency
D) Implied agency
A) One agent for buyer and seller
Rationale: Requires informed consent from both parties.
Question 11: What is the statute of limitations for a written contract in California?
A) 2 years
B) 3 years
C) 4 years
D) 6 years
C) 4 years
Rationale: Civil Code §337 applies to written contracts.
Question 12: Which easement benefits a specific property?
A) Easement in gross
B) Easement appurtenant
C) License
D) Profit a prendre
B) Easement appurtenant
Rationale: Runs with the land to benefit a dominant estate.
Question 13: What is the purpose of a preliminary title report?
A) To appraise the property
B) To identify title issues
C) To survey the land
D) To set the purchase price
B) To identify title issues
Rationale: Provides a snapshot of title status.
Question 14: What is required for a valid power of attorney in California?
A) Verbal agreement
B) Written, signed, and notarized
C) Two witnesses only
D) No formalities
B) Written, signed, and notarized
Rationale: Probate Code §4121 sets these requirements.
