California Real Estate Practice
Questions with Answers and Rationales
EXAM REVIEWS WITH COMPLETE
ACTUAL EXAM 2025 -2026 QUESTIONS
AND CORRECT VERIFIED ANSWERS/
ALREADY GRADED A+ (MOST RECENT!!)
1. A real estate salesperson must work under the supervision of:
A. A lender
B. An escrow officer
C. A licensed real estate broker
D. A title officer
Answer: C. A licensed real estate broker
Rationale: California law requires every real estate salesperson to be
licensed under and supervised by a licensed broker.
2. Which document transfers ownership of real property?
A. Listing agreement
B. Lease
C. Mortgage
D. Deed
Answer: D. Deed
Rationale: A deed is the legal instrument used to transfer title from
one party to another.
,3. Which type of listing gives only one broker the right to earn a
commission regardless of who finds the buyer?
A. Open listing
B. Net listing
C. Exclusive-right-to-sell listing
D. Exclusive agency listing
Answer: C. Exclusive-right-to-sell listing
Rationale: Under an exclusive-right-to-sell listing, the broker earns a
commission regardless of who procures the buyer.
4. Real property includes:
A. Furniture
B. Appliances not attached
C. Land and permanent improvements
D. Cash
Answer: C. Land and permanent improvements
Rationale: Real property consists of land and anything permanently
attached to it.
5. The legal concept of "bundle of rights" refers to:
A. Financing methods
B. Building codes
C. Ownership rights associated with property
D. Types of deeds
Answer: C. Ownership rights associated with property
,Rationale: The bundle of rights includes possession, control,
enjoyment, exclusion, and disposition.
6. Which government power allows zoning regulations?
A. Escheat
B. Eminent domain
C. Taxation
D. Police power
Answer: D. Police power
Rationale: Police power allows governments to regulate land use to
protect public health, safety, and welfare.
7. Which deed provides the greatest protection to the buyer?
A. Quitclaim deed
B. Grant deed
C. Bargain and sale deed
D. General warranty deed
Answer: D. General warranty deed
Rationale: A general warranty deed offers the broadest guarantees
regarding title.
8. Earnest money is:
A. Property tax
B. Commission
C. Good-faith deposit by the buyer
D. Loan discount points
Answer: C. Good-faith deposit by the buyer
, Rationale: Earnest money demonstrates the buyer's serious intent to
purchase.
9. The California Department of Real Estate primarily regulates:
A. Banks
B. Insurance companies
C. Real estate licensees
D. Building inspectors
Answer: C. Real estate licensees
Rationale: The DRE licenses and regulates California real estate
professionals.
10. A buyer receives equitable title when:
A. Recording the deed
B. Receiving possession
C. A purchase contract is executed
D. Paying property taxes
Answer: C. A purchase contract is executed
Rationale: Equitable title passes to the buyer once a valid purchase
agreement exists.
11. A fee simple estate is:
A. Leasehold
B. Life estate
C. Highest form of ownership
D. Easement
Answer: C. Highest form of ownership
Questions with Answers and Rationales
EXAM REVIEWS WITH COMPLETE
ACTUAL EXAM 2025 -2026 QUESTIONS
AND CORRECT VERIFIED ANSWERS/
ALREADY GRADED A+ (MOST RECENT!!)
1. A real estate salesperson must work under the supervision of:
A. A lender
B. An escrow officer
C. A licensed real estate broker
D. A title officer
Answer: C. A licensed real estate broker
Rationale: California law requires every real estate salesperson to be
licensed under and supervised by a licensed broker.
2. Which document transfers ownership of real property?
A. Listing agreement
B. Lease
C. Mortgage
D. Deed
Answer: D. Deed
Rationale: A deed is the legal instrument used to transfer title from
one party to another.
,3. Which type of listing gives only one broker the right to earn a
commission regardless of who finds the buyer?
A. Open listing
B. Net listing
C. Exclusive-right-to-sell listing
D. Exclusive agency listing
Answer: C. Exclusive-right-to-sell listing
Rationale: Under an exclusive-right-to-sell listing, the broker earns a
commission regardless of who procures the buyer.
4. Real property includes:
A. Furniture
B. Appliances not attached
C. Land and permanent improvements
D. Cash
Answer: C. Land and permanent improvements
Rationale: Real property consists of land and anything permanently
attached to it.
5. The legal concept of "bundle of rights" refers to:
A. Financing methods
B. Building codes
C. Ownership rights associated with property
D. Types of deeds
Answer: C. Ownership rights associated with property
,Rationale: The bundle of rights includes possession, control,
enjoyment, exclusion, and disposition.
6. Which government power allows zoning regulations?
A. Escheat
B. Eminent domain
C. Taxation
D. Police power
Answer: D. Police power
Rationale: Police power allows governments to regulate land use to
protect public health, safety, and welfare.
7. Which deed provides the greatest protection to the buyer?
A. Quitclaim deed
B. Grant deed
C. Bargain and sale deed
D. General warranty deed
Answer: D. General warranty deed
Rationale: A general warranty deed offers the broadest guarantees
regarding title.
8. Earnest money is:
A. Property tax
B. Commission
C. Good-faith deposit by the buyer
D. Loan discount points
Answer: C. Good-faith deposit by the buyer
, Rationale: Earnest money demonstrates the buyer's serious intent to
purchase.
9. The California Department of Real Estate primarily regulates:
A. Banks
B. Insurance companies
C. Real estate licensees
D. Building inspectors
Answer: C. Real estate licensees
Rationale: The DRE licenses and regulates California real estate
professionals.
10. A buyer receives equitable title when:
A. Recording the deed
B. Receiving possession
C. A purchase contract is executed
D. Paying property taxes
Answer: C. A purchase contract is executed
Rationale: Equitable title passes to the buyer once a valid purchase
agreement exists.
11. A fee simple estate is:
A. Leasehold
B. Life estate
C. Highest form of ownership
D. Easement
Answer: C. Highest form of ownership
