CA DRE SALESPERSON EXAM PRACTICE
QUESTIONS WITH CORRECT ANSWERS 2026
When agent Andy took a listing, he promised the seller that he would advertise the property in
a magazine until it was sold. Andy told the seller he submitted the ad, but the magazine said A
ndy never contacted them what is Andy guilt of?
A) Objective Fraud
B) Constructive Fraud
C) Actual Fraud
D) Comprehensive Fraud - CORRECT ANSWER -C) Actual Fraud
A fee simple estate is:
A) a leasehold
B) an estate for years
C) a less-than-freehold estate
D) an estate of inheritance - CORRECT ANSWER -D) an estate of inheritance
If an appraiser is appraising a special purpose property he would probably use the:
A) Income approach
B) Market data approach
C) Land residual approach
D) Cost approach - CORRECT ANSWER -D) Cost Approach
Definitions of market value is least concerned with:
,A) Market cost
B) Objective Value
C) Value in exchange
D) Open Market - CORRECT ANSWER -A) Market Cost
What type of an appraisal license is required to appraise a commercial strip mall valued at $70
0,000:
A) Certified general license
B) Retail appraisal license
C) Certified residential license
D) Residential real estate - CORRECT ANSWER -A) Certified general license
In order to comply with the regulations of the state Housing Law, a person should seek the issu
ance of a building permit from:
A) the California DRE
B) the local Department of Building and Safety
C) the nearest office of the Department of Housing and Community Development
D) the California Department of Urban Renewal - CORRECT ANSWER -
B) the local Department of Building and Safety
Property taxes are described as "ad valorem" taxes. "Ad valorem" most nearly means
A) Replacement Value
,B) According to value
C) Market value
D) Reproduction value - CORRECT ANSWER -B) According to value
One of the main benefits of a sale-leasebackDtransaction would be:
A) You can get the deposit backDwith no objection
B) You have the option to lease the property back after the termination of the lease
C) the ability of the seller to deduct all of his future rent payments as business expenditures
D) the ability to maintain the book value of the new buyer - CORRECT ANSWER -
C) the ability of the seller to deduct all of his future rent payments as business expenditures
The main purpose of "RESPA" (Real Estate Settlement Producers Act) is to:
A) To provide consumers with enough info to enable them to shop for settlement services
B) Place a fixed limit on settlement costs on residential property of four units or less
C) To standardize settlement services throughout the US
D) Place a fixed limit on settlement costs in all real estate transactions - CORRECT ANSWER -
A) To provide consumers with enough info to enable them to shop for settlement services
, A broker who holds a valid listing on a property places a classified ad for the property containin
g only the following information "For Sale: 3 bedroom, 2 bath home with swiiming pool. Asking
price $165,00. Telephone 555-9276" This type of ad is a:
A) Silent Ad
B) Qualified Ad
C) Display Ad
D) Blind Ad - CORRECT ANSWER -D) Blind Ad
A property owner lists his property for sale with a broker. During the negotiations, the owner t
old the broker that the owner wanted $138,00 for the property, and anything above that amou
nt the broker could keep as his commission. The listing with tis type of provision is known as:
A) open listing
B) gross listing
C) non exclusive listing
D) net listing - CORRECT ANSWER -D) net listing
Which of the following is an example of a less than freehold estate?
A) estate in severalty
B) fee simple determinable estate
C) leasehold estate
D) fee simple estate - CORRECT ANSWER -C) leasehold estate
When a lender loans a borrower 100% of the purchase price of a house, and the loan is not go
vernment-related, the lender would be best protected by:
QUESTIONS WITH CORRECT ANSWERS 2026
When agent Andy took a listing, he promised the seller that he would advertise the property in
a magazine until it was sold. Andy told the seller he submitted the ad, but the magazine said A
ndy never contacted them what is Andy guilt of?
A) Objective Fraud
B) Constructive Fraud
C) Actual Fraud
D) Comprehensive Fraud - CORRECT ANSWER -C) Actual Fraud
A fee simple estate is:
A) a leasehold
B) an estate for years
C) a less-than-freehold estate
D) an estate of inheritance - CORRECT ANSWER -D) an estate of inheritance
If an appraiser is appraising a special purpose property he would probably use the:
A) Income approach
B) Market data approach
C) Land residual approach
D) Cost approach - CORRECT ANSWER -D) Cost Approach
Definitions of market value is least concerned with:
,A) Market cost
B) Objective Value
C) Value in exchange
D) Open Market - CORRECT ANSWER -A) Market Cost
What type of an appraisal license is required to appraise a commercial strip mall valued at $70
0,000:
A) Certified general license
B) Retail appraisal license
C) Certified residential license
D) Residential real estate - CORRECT ANSWER -A) Certified general license
In order to comply with the regulations of the state Housing Law, a person should seek the issu
ance of a building permit from:
A) the California DRE
B) the local Department of Building and Safety
C) the nearest office of the Department of Housing and Community Development
D) the California Department of Urban Renewal - CORRECT ANSWER -
B) the local Department of Building and Safety
Property taxes are described as "ad valorem" taxes. "Ad valorem" most nearly means
A) Replacement Value
,B) According to value
C) Market value
D) Reproduction value - CORRECT ANSWER -B) According to value
One of the main benefits of a sale-leasebackDtransaction would be:
A) You can get the deposit backDwith no objection
B) You have the option to lease the property back after the termination of the lease
C) the ability of the seller to deduct all of his future rent payments as business expenditures
D) the ability to maintain the book value of the new buyer - CORRECT ANSWER -
C) the ability of the seller to deduct all of his future rent payments as business expenditures
The main purpose of "RESPA" (Real Estate Settlement Producers Act) is to:
A) To provide consumers with enough info to enable them to shop for settlement services
B) Place a fixed limit on settlement costs on residential property of four units or less
C) To standardize settlement services throughout the US
D) Place a fixed limit on settlement costs in all real estate transactions - CORRECT ANSWER -
A) To provide consumers with enough info to enable them to shop for settlement services
, A broker who holds a valid listing on a property places a classified ad for the property containin
g only the following information "For Sale: 3 bedroom, 2 bath home with swiiming pool. Asking
price $165,00. Telephone 555-9276" This type of ad is a:
A) Silent Ad
B) Qualified Ad
C) Display Ad
D) Blind Ad - CORRECT ANSWER -D) Blind Ad
A property owner lists his property for sale with a broker. During the negotiations, the owner t
old the broker that the owner wanted $138,00 for the property, and anything above that amou
nt the broker could keep as his commission. The listing with tis type of provision is known as:
A) open listing
B) gross listing
C) non exclusive listing
D) net listing - CORRECT ANSWER -D) net listing
Which of the following is an example of a less than freehold estate?
A) estate in severalty
B) fee simple determinable estate
C) leasehold estate
D) fee simple estate - CORRECT ANSWER -C) leasehold estate
When a lender loans a borrower 100% of the purchase price of a house, and the loan is not go
vernment-related, the lender would be best protected by:
