CALIFORNIA REAL ESTATE EXAM PREP
AND GUIDE COMPLETE STUDY GUIDE
WITH PRACTICE QUESTIONS, ANSWERS
AND COMPREHENSIVE DRE LICENSE
EXAM REVIEW| GRADED A+ |
GUARANTEED SUCCESS
Updated 2026 Questions and Answers | 100% Verified
Exam Prep
,Abstract of Title A summary or digest of all recorded transfers, conveyances, legal proceedings, and any
other facts relied on as evidence of title to show continuity of ownership and indicate any
possible impairments to title
Acceleration Clause A provision in a real estate financing instrument that allows the lender to declare the
remaining indebtedness due and payable on the happening of certain conditions, such as
the sale of the property or the borrower's default in payment
Acceptance Indication by the person to whom an offer is made (the offeree) of agreement to the
terms of the offer. If the offer requires a writing, the acceptance must also be in writing.
Accession The process of manufactured or natural improvement or addition to property.
Accounting The obligation to account for all money or property belonging to the principal
Accretion Accession by natural forces, e.g., alluvium.
Acknowledgement A formal declaration made before an authorized person by a person who has executed a
written instrument, stating that the execution of the instrument is the person's own act
Acquisition Cost For FHA-insured loans, the price to procure property, including purchase price and all
nonrecurring closing costs, including discount points, FHA application fee, service
charge and credit report, FHA appraisal, escrow, document preparation, title insurance,
termite inspection, reconveyance, and recording fees
Acre A measure of land equal to 43,560 square feet, 160 Rods, 4,840 Square yards, or a tract
about 208.71 feet square
Action for Declaratory Relief Legal proceeding brought to determine the respective rights of the parties before a
controversy arises
,Action to a Quiet Title A court proceeding brought to establish title to real property
Actual Age The number of years since completion of a building; also called historical or
chronological age
Actual Authority The authority an agent has because it is specified in the agency agreement, or that the
agent believes he or she has because of an unintentional or a careless act of principal
Actual Fraud A deliberate misrepresentation or a representation made in reckless disregard of its truth
or falsity; the suppression of truth; a promise made without the intention to perform it; or
any other act intended to deceive.
Adjustable Rate Mortgage (ARM) Finance instrument whose interest rate will vary according to the change in an identified
index or rate, such as the 11th District Cost of Funds.
Adjustable Rate Note Promissory note that serves as evidence of a debt that carries an interest rate that will
vary according to the change in an identified index or rate, such as the 11th District Cost
of Funds.
Adjusted Cost Basis Purchase price of property plus cost of specified improvements, less any depreciation
deductions taken on the property
Adjusted Gross Income Income from all sources less deductions for taxes, depreciation, and other allowable
deductions
Administrator The personal representative of the estate appointed by the probate court.
Ad Valorem A Latin phrase meaning "according to value"; used to describe a tax charged in relation to
the value of the property taxed
Adverse Possession A method of acquiring original title to property by occupying the property against the
interest of the true owner and fulfilling other statutory requirements
Affirmative Fraud A deliberate statement of a material fact that the speaker knows to be false and on which
the speaker intends another person to rely to his or her detriment.
, After acquired title If title is acquired by a grantor only after a conveyance to a grantee, the deed to the
grantee becomes effective at the time the grantor actually receives title.
Agency The relationship between a principal and an agent of the principal that arises out of a
contract, whether express or implied, written or oral, by which the agent is employed by
the principal to do certain acts dealing with a third party
Agency Confirmation Form Written statement required for a residential transaction involving property of one to four
residential units, in the wording required by the California Civil Code, and signed by the
property seller as well as the listing agent and selling agent (if different from the listing
agent), that indicates the seller's understanding of the relationship of the seller to the
listing and selling in the transaction.
Agency Disclosure Form Written statement required for a residential transaction involving property of one to four
residential units, using the wording required by the California Civil Code, and signed by
both buyer and seller in a transaction, that explains the various relationships of those
involved in a residential property sale
Agent One who acts for and with authority from another person, called the principal: a special
agent is appointed to carry out a particular act or transaction, and any other agent is a
general agent
Air Rights The real property right to the reasonable use of the airspace above the surface of the
land
Alienation The transferring of property to another; an involuntary transfer of title
Alluvion Alluvium; the increase of soil along the bank of a body of water by natural forces.
Amortized Loan The payment of a financial obligation in installments; recovery over a period of time of
cost or value. A loan has negative amortization when the loan payments do not cover all
of the interest due, which then is added to the remaining loan balance.
Anchor Bolts Bolts that fasten the sill plate of a wood-frame house to the house's foundation, required
in California since 1931 for all new construction as an earthquake safety measure.
AND GUIDE COMPLETE STUDY GUIDE
WITH PRACTICE QUESTIONS, ANSWERS
AND COMPREHENSIVE DRE LICENSE
EXAM REVIEW| GRADED A+ |
GUARANTEED SUCCESS
Updated 2026 Questions and Answers | 100% Verified
Exam Prep
,Abstract of Title A summary or digest of all recorded transfers, conveyances, legal proceedings, and any
other facts relied on as evidence of title to show continuity of ownership and indicate any
possible impairments to title
Acceleration Clause A provision in a real estate financing instrument that allows the lender to declare the
remaining indebtedness due and payable on the happening of certain conditions, such as
the sale of the property or the borrower's default in payment
Acceptance Indication by the person to whom an offer is made (the offeree) of agreement to the
terms of the offer. If the offer requires a writing, the acceptance must also be in writing.
Accession The process of manufactured or natural improvement or addition to property.
Accounting The obligation to account for all money or property belonging to the principal
Accretion Accession by natural forces, e.g., alluvium.
Acknowledgement A formal declaration made before an authorized person by a person who has executed a
written instrument, stating that the execution of the instrument is the person's own act
Acquisition Cost For FHA-insured loans, the price to procure property, including purchase price and all
nonrecurring closing costs, including discount points, FHA application fee, service
charge and credit report, FHA appraisal, escrow, document preparation, title insurance,
termite inspection, reconveyance, and recording fees
Acre A measure of land equal to 43,560 square feet, 160 Rods, 4,840 Square yards, or a tract
about 208.71 feet square
Action for Declaratory Relief Legal proceeding brought to determine the respective rights of the parties before a
controversy arises
,Action to a Quiet Title A court proceeding brought to establish title to real property
Actual Age The number of years since completion of a building; also called historical or
chronological age
Actual Authority The authority an agent has because it is specified in the agency agreement, or that the
agent believes he or she has because of an unintentional or a careless act of principal
Actual Fraud A deliberate misrepresentation or a representation made in reckless disregard of its truth
or falsity; the suppression of truth; a promise made without the intention to perform it; or
any other act intended to deceive.
Adjustable Rate Mortgage (ARM) Finance instrument whose interest rate will vary according to the change in an identified
index or rate, such as the 11th District Cost of Funds.
Adjustable Rate Note Promissory note that serves as evidence of a debt that carries an interest rate that will
vary according to the change in an identified index or rate, such as the 11th District Cost
of Funds.
Adjusted Cost Basis Purchase price of property plus cost of specified improvements, less any depreciation
deductions taken on the property
Adjusted Gross Income Income from all sources less deductions for taxes, depreciation, and other allowable
deductions
Administrator The personal representative of the estate appointed by the probate court.
Ad Valorem A Latin phrase meaning "according to value"; used to describe a tax charged in relation to
the value of the property taxed
Adverse Possession A method of acquiring original title to property by occupying the property against the
interest of the true owner and fulfilling other statutory requirements
Affirmative Fraud A deliberate statement of a material fact that the speaker knows to be false and on which
the speaker intends another person to rely to his or her detriment.
, After acquired title If title is acquired by a grantor only after a conveyance to a grantee, the deed to the
grantee becomes effective at the time the grantor actually receives title.
Agency The relationship between a principal and an agent of the principal that arises out of a
contract, whether express or implied, written or oral, by which the agent is employed by
the principal to do certain acts dealing with a third party
Agency Confirmation Form Written statement required for a residential transaction involving property of one to four
residential units, in the wording required by the California Civil Code, and signed by the
property seller as well as the listing agent and selling agent (if different from the listing
agent), that indicates the seller's understanding of the relationship of the seller to the
listing and selling in the transaction.
Agency Disclosure Form Written statement required for a residential transaction involving property of one to four
residential units, using the wording required by the California Civil Code, and signed by
both buyer and seller in a transaction, that explains the various relationships of those
involved in a residential property sale
Agent One who acts for and with authority from another person, called the principal: a special
agent is appointed to carry out a particular act or transaction, and any other agent is a
general agent
Air Rights The real property right to the reasonable use of the airspace above the surface of the
land
Alienation The transferring of property to another; an involuntary transfer of title
Alluvion Alluvium; the increase of soil along the bank of a body of water by natural forces.
Amortized Loan The payment of a financial obligation in installments; recovery over a period of time of
cost or value. A loan has negative amortization when the loan payments do not cover all
of the interest due, which then is added to the remaining loan balance.
Anchor Bolts Bolts that fasten the sill plate of a wood-frame house to the house's foundation, required
in California since 1931 for all new construction as an earthquake safety measure.
