California DRE Salesperson Exam (pdf) | 2026/2027 | Licensing Q&A |
Real Estate
**1. A commercial tenant installs custom restaurant equipment, including a
walk-in cooler and specialized ovens, that are bolted to the floor and
connected to the building's utilities. Under California law, which of the
following statements is TRUE regarding these items?**
A) They are fixtures and become the property of the landlord permanently
B) They are trade fixtures and the tenant may remove them before the lease
ends
C) They are personal property and can be removed at any time after the
lease expires
D) They must remain with the property regardless of the tenant's wishes
**Correct Answer: B**
**Rationale:** Trade fixtures are items a tenant installs for their business and
may be removed before the lease ends. Unlike ordinary fixtures, trade
fixtures are an exception to the rule that items attached to real property
become part of the real estate.
**2. A city re-zones an area from residential to commercial, reducing the
value of a homeowner's property. The homeowner claims this is a "taking"
requiring compensation. Which of the following is TRUE?**
A) The homeowner is entitled to compensation because the property value
decreased
B) The city must pay just compensation under eminent domain
C) This is a valid exercise of police power and no compensation is required
D) The city must offer to purchase the property at fair market value
,**Correct Answer: C**
**Rationale:** Zoning changes are an exercise of police power—the
government's authority to regulate land use for public health, safety, and
welfare. Unlike eminent domain, police power actions generally do not
require compensation even if property values decline.
**3. Which of the following is NOT one of the four government powers over
real estate (PETE)?**
A) Police Power
B) Eminent Domain
C) Taxation
D) Partition
**Correct Answer: D**
**Rationale:** The four government powers over real estate are Police Power,
Eminent Domain, Taxation, and Escheat (memory aid: "PETE"). Partition is a
legal process for dividing co-owned property, not a government power.
**4. Two individuals own a property as "tenancy in common." Which of the
following is TRUE regarding this form of ownership?**
A) Each owner has a right of survivorship
B) Each owner must have equal ownership shares
C) Each owner may sell or transfer their interest without the other's consent
D) Upon death, the deceased owner's share automatically passes to the
surviving owner
,**Correct Answer: C**
**Rationale:** Tenancy in common allows each owner to transfer their
interest independently. Unlike joint tenancy, there is no right of survivorship,
and ownership shares may be unequal.
**5. Which of the following best describes riparian water rights?**
A) Rights to water from underground aquifers
B) Rights to water from a river or stream that borders or flows through the
property
C) Rights to water obtained through a permit from the state
D) Rights to water from a municipal water system
**Correct Answer: B**
**Rationale:** Riparian water rights apply to landowners whose property
borders a river, stream, or lake. These rights are appurtenant to the land and
do not require a permit.
**6. A property owner wants to build a structure that does not conform to
current zoning requirements. What must the owner obtain?**
A) A variance
B) A conditional use permit
C) A building permit only
D) An easement
, **Correct Answer: A**
**Rationale:** A variance is a permission granted by a zoning board to allow
a property use that deviates from zoning regulations. A conditional use
permit is for uses specifically permitted by zoning subject to conditions.
**7. Which of the following is a public control on land use?**
A) CC&Rs (Covenants, Conditions, and Restrictions)
B) A homeowners association rule
C) A zoning ordinance
D) A private easement
**Correct Answer: C**
**Rationale:** Zoning ordinances are public controls enacted by government.
CC&Rs, HOA rules, and private easements are private controls.
**8. A person acquires title to property through adverse possession. What
type of interest have they obtained?**
A) A leasehold interest
B) A possessory title
C) An easement
D) A life estate
**Correct Answer: B**
Real Estate
**1. A commercial tenant installs custom restaurant equipment, including a
walk-in cooler and specialized ovens, that are bolted to the floor and
connected to the building's utilities. Under California law, which of the
following statements is TRUE regarding these items?**
A) They are fixtures and become the property of the landlord permanently
B) They are trade fixtures and the tenant may remove them before the lease
ends
C) They are personal property and can be removed at any time after the
lease expires
D) They must remain with the property regardless of the tenant's wishes
**Correct Answer: B**
**Rationale:** Trade fixtures are items a tenant installs for their business and
may be removed before the lease ends. Unlike ordinary fixtures, trade
fixtures are an exception to the rule that items attached to real property
become part of the real estate.
**2. A city re-zones an area from residential to commercial, reducing the
value of a homeowner's property. The homeowner claims this is a "taking"
requiring compensation. Which of the following is TRUE?**
A) The homeowner is entitled to compensation because the property value
decreased
B) The city must pay just compensation under eminent domain
C) This is a valid exercise of police power and no compensation is required
D) The city must offer to purchase the property at fair market value
,**Correct Answer: C**
**Rationale:** Zoning changes are an exercise of police power—the
government's authority to regulate land use for public health, safety, and
welfare. Unlike eminent domain, police power actions generally do not
require compensation even if property values decline.
**3. Which of the following is NOT one of the four government powers over
real estate (PETE)?**
A) Police Power
B) Eminent Domain
C) Taxation
D) Partition
**Correct Answer: D**
**Rationale:** The four government powers over real estate are Police Power,
Eminent Domain, Taxation, and Escheat (memory aid: "PETE"). Partition is a
legal process for dividing co-owned property, not a government power.
**4. Two individuals own a property as "tenancy in common." Which of the
following is TRUE regarding this form of ownership?**
A) Each owner has a right of survivorship
B) Each owner must have equal ownership shares
C) Each owner may sell or transfer their interest without the other's consent
D) Upon death, the deceased owner's share automatically passes to the
surviving owner
,**Correct Answer: C**
**Rationale:** Tenancy in common allows each owner to transfer their
interest independently. Unlike joint tenancy, there is no right of survivorship,
and ownership shares may be unequal.
**5. Which of the following best describes riparian water rights?**
A) Rights to water from underground aquifers
B) Rights to water from a river or stream that borders or flows through the
property
C) Rights to water obtained through a permit from the state
D) Rights to water from a municipal water system
**Correct Answer: B**
**Rationale:** Riparian water rights apply to landowners whose property
borders a river, stream, or lake. These rights are appurtenant to the land and
do not require a permit.
**6. A property owner wants to build a structure that does not conform to
current zoning requirements. What must the owner obtain?**
A) A variance
B) A conditional use permit
C) A building permit only
D) An easement
, **Correct Answer: A**
**Rationale:** A variance is a permission granted by a zoning board to allow
a property use that deviates from zoning regulations. A conditional use
permit is for uses specifically permitted by zoning subject to conditions.
**7. Which of the following is a public control on land use?**
A) CC&Rs (Covenants, Conditions, and Restrictions)
B) A homeowners association rule
C) A zoning ordinance
D) A private easement
**Correct Answer: C**
**Rationale:** Zoning ordinances are public controls enacted by government.
CC&Rs, HOA rules, and private easements are private controls.
**8. A person acquires title to property through adverse possession. What
type of interest have they obtained?**
A) A leasehold interest
B) A possessory title
C) An easement
D) A life estate
**Correct Answer: B**
