CALIFORNIA REAL ESTATE SALESPERSON PRACTICE
EXAM Questions And Correct Answers (Verified
Answers) Plus Rationales 2026 Q&A.
1. Which agency oversees California real estate licensing?
A. HUD
B. Department of Commerce
C. California Department of Real Estate (DRE)
D. Bureau of Land Management
The DRE regulates licensing, education, and enforcement for real estate
professionals in California.
2. A real estate license in CA must be renewed every:
A. 1 year
B. 2 years
C. 4 years
D. 5 years
California salesperson licenses are valid for four years.
3. A principal is best defined as:
A. A real estate agent
B. An escrow officer
C. A client who hires an agent
D. A lawyer
The principal is the person who hires the agent to act on their behalf.
4. Which of the following is required to earn a CA salesperson license?
,A. 60 hours of coursework
B. 135 hours of pre-licensing education
C. Bachelor’s degree
D. 2 years’ experience
California requires 135 hours: RE Principles, Practice, and 1 elective.
5. A fiduciary duty includes:
A. Casual advice
B. Loyalty and confidentiality
C. Marketing
D. Appraisal
Agents owe fiduciary duties of loyalty, care, and confidentiality to clients.
6. Which is an example of commingling?
A. Showing property
B. Preparing a CMA
C. Mixing client funds with personal funds
D. Paying referral fees
Commingling is prohibited; client funds must be held separately.
7. The main purpose of an agency disclosure form is to:
A. Sell a property
B. Identify loan rates
C. Explain agency relationships
D. Set commission
Agency disclosure informs all parties who the agent represents.
8. Earnest money must be deposited within:
A. 24 hours
B. 3 business days after acceptance
, C. 7 business days
D. 1 month
California requires deposit within 3 business days unless otherwise agreed.
9. The Transfer Disclosure Statement (TDS) is required for:
A. Vacant land
B. Industrial property
C. New construction from a builder
D. Most 1–4 unit residential properties
The TDS is required for most residential resales.
10. The seller’s agent must disclose:
A. Only what helps the sale
B. All known material facts
C. Property tax info
D. Only buyer’s requests
Material facts affecting value must always be disclosed.
11. A latent defect is:
A. Obvious
B. Hidden and not easily discovered
C. Cosmetic only
D. Fraudulent
Latent defects cannot be observed by simple inspection.
12. Joint tenancy includes:
A. Probate
B. No survivorship
C. Right of survivorship
EXAM Questions And Correct Answers (Verified
Answers) Plus Rationales 2026 Q&A.
1. Which agency oversees California real estate licensing?
A. HUD
B. Department of Commerce
C. California Department of Real Estate (DRE)
D. Bureau of Land Management
The DRE regulates licensing, education, and enforcement for real estate
professionals in California.
2. A real estate license in CA must be renewed every:
A. 1 year
B. 2 years
C. 4 years
D. 5 years
California salesperson licenses are valid for four years.
3. A principal is best defined as:
A. A real estate agent
B. An escrow officer
C. A client who hires an agent
D. A lawyer
The principal is the person who hires the agent to act on their behalf.
4. Which of the following is required to earn a CA salesperson license?
,A. 60 hours of coursework
B. 135 hours of pre-licensing education
C. Bachelor’s degree
D. 2 years’ experience
California requires 135 hours: RE Principles, Practice, and 1 elective.
5. A fiduciary duty includes:
A. Casual advice
B. Loyalty and confidentiality
C. Marketing
D. Appraisal
Agents owe fiduciary duties of loyalty, care, and confidentiality to clients.
6. Which is an example of commingling?
A. Showing property
B. Preparing a CMA
C. Mixing client funds with personal funds
D. Paying referral fees
Commingling is prohibited; client funds must be held separately.
7. The main purpose of an agency disclosure form is to:
A. Sell a property
B. Identify loan rates
C. Explain agency relationships
D. Set commission
Agency disclosure informs all parties who the agent represents.
8. Earnest money must be deposited within:
A. 24 hours
B. 3 business days after acceptance
, C. 7 business days
D. 1 month
California requires deposit within 3 business days unless otherwise agreed.
9. The Transfer Disclosure Statement (TDS) is required for:
A. Vacant land
B. Industrial property
C. New construction from a builder
D. Most 1–4 unit residential properties
The TDS is required for most residential resales.
10. The seller’s agent must disclose:
A. Only what helps the sale
B. All known material facts
C. Property tax info
D. Only buyer’s requests
Material facts affecting value must always be disclosed.
11. A latent defect is:
A. Obvious
B. Hidden and not easily discovered
C. Cosmetic only
D. Fraudulent
Latent defects cannot be observed by simple inspection.
12. Joint tenancy includes:
A. Probate
B. No survivorship
C. Right of survivorship
