California Real Estate
Salesperson Exam
Questions And Correct
Answers (Verified
Answers) Plus
Rationales 2025/2026
Q&A | Instant
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1. A valid real estate license in California is issued by:
A. Local city government
B. County recorder
C. California Department of Real Estate (DRE)
D. California Association of Realtors
,Rationale: The DRE is the state agency responsible for
licensing real estate professionals.
2. The standard agency relationship between a broker
and seller is created by:
A. A lease agreement
B. A purchase agreement
C. A listing agreement
D. A deed
Rationale: A listing agreement establishes agency
between seller and broker.
3. Which of the following is NOT a fiduciary duty?
A. Loyalty
B. Obedience
C. Accounting
D. Profit maximization
Rationale: Agents owe fiduciary duties, but not
maximizing profit for themselves.
4. The statute of frauds requires which contracts to be
in writing?
,A. All contracts
B. Only lease agreements
C. Real estate sales contracts
D. Oral agreements under $500
Rationale: Real estate contracts must be written to be
enforceable.
5. A “grant deed” primarily:
A. Transfers leasehold rights
B. Transfers ownership with warranties
C. Transfers title with implied covenants
D. Transfers personal property
Rationale: Grant deeds include implied promises
about ownership.
6. The purpose of escrow is to:
A. Represent buyer
B. Represent seller
C. Act as neutral third party handling funds and
documents
D. Inspect property condition
Rationale: Escrow ensures safe, neutral transaction
processing.
, 7. The California Real Estate Recovery Fund is used to:
A. Pay broker commissions
B. Fund escrow accounts
C. Compensate victims of licensee fraud
D. Finance new construction
Rationale: It reimburses consumers harmed by
licensee misconduct.
8. A broker’s commission is earned when:
A. Listing agreement is signed
B. Buyer views property
C. Procured buyer ready, willing, and able to purchase
D. Escrow closes only
Rationale: Commission is earned when performance
conditions are met.
9. A “fiduciary” relationship requires:
A. Equal responsibility
B. Arms-length negotiation
C. Highest level of trust and loyalty
D. No disclosure duties
Rationale: Fiduciary duty requires loyalty and trust.
Salesperson Exam
Questions And Correct
Answers (Verified
Answers) Plus
Rationales 2025/2026
Q&A | Instant
Download Pdf
1. A valid real estate license in California is issued by:
A. Local city government
B. County recorder
C. California Department of Real Estate (DRE)
D. California Association of Realtors
,Rationale: The DRE is the state agency responsible for
licensing real estate professionals.
2. The standard agency relationship between a broker
and seller is created by:
A. A lease agreement
B. A purchase agreement
C. A listing agreement
D. A deed
Rationale: A listing agreement establishes agency
between seller and broker.
3. Which of the following is NOT a fiduciary duty?
A. Loyalty
B. Obedience
C. Accounting
D. Profit maximization
Rationale: Agents owe fiduciary duties, but not
maximizing profit for themselves.
4. The statute of frauds requires which contracts to be
in writing?
,A. All contracts
B. Only lease agreements
C. Real estate sales contracts
D. Oral agreements under $500
Rationale: Real estate contracts must be written to be
enforceable.
5. A “grant deed” primarily:
A. Transfers leasehold rights
B. Transfers ownership with warranties
C. Transfers title with implied covenants
D. Transfers personal property
Rationale: Grant deeds include implied promises
about ownership.
6. The purpose of escrow is to:
A. Represent buyer
B. Represent seller
C. Act as neutral third party handling funds and
documents
D. Inspect property condition
Rationale: Escrow ensures safe, neutral transaction
processing.
, 7. The California Real Estate Recovery Fund is used to:
A. Pay broker commissions
B. Fund escrow accounts
C. Compensate victims of licensee fraud
D. Finance new construction
Rationale: It reimburses consumers harmed by
licensee misconduct.
8. A broker’s commission is earned when:
A. Listing agreement is signed
B. Buyer views property
C. Procured buyer ready, willing, and able to purchase
D. Escrow closes only
Rationale: Commission is earned when performance
conditions are met.
9. A “fiduciary” relationship requires:
A. Equal responsibility
B. Arms-length negotiation
C. Highest level of trust and loyalty
D. No disclosure duties
Rationale: Fiduciary duty requires loyalty and trust.
