California Signs and Marketing Requirements
exam 2026 questions and rationales answers
1. Which California agency regulates real estate advertising by licensed real estate
professionals?
A. California Secretary of State
B. California Department of Consumer Affairs
C. California Department of Real Estate (DRE)
D. California Franchise Tax Board
Rationale: The DRE administers and enforces California’s Real Estate Law, including advertising
requirements.
2. A California real estate advertisement must generally be:
A. Aggressive and persuasive
B. Truthful, accurate, and not misleading
C. Approved by the local city council
D. Written only by the broker
Rationale: Misleading advertising can constitute a violation of California real estate law.
3. Which information is generally required on solicitation materials that constitute the first point
of contact with a consumer?
A. Agent's home address
B. Property tax number
C. License identification information and responsible broker identity
D. Seller's Social Security number
Rationale: California Business and Professions Code §10140.6 establishes disclosure
requirements for certain solicitation materials.
4. A salesperson places a "FOR SALE" sign on a listed property. Which party is primarily
responsible for ensuring the advertising complies with applicable requirements?
A. The buyer
B. The seller only
C. The responsible broker
D. The property inspector
,Rationale: The responsible broker has supervisory duties over affiliated licensees and their
advertising.
5. Which of the following is considered solicitation material under California advertising rules?
A. A private diary
B. A business card
C. A personal tax return
D. A private text to a family member
Rationale: DRE guidance identifies business cards, stationery, flyers, electronic advertisements,
and various signs as solicitation materials.
6. Which sign is specifically identified as a type of solicitation material?
A. "No Parking" sign
B. Political campaign sign
C. "Open House" sign
D. School crossing sign
Rationale: "Open house" and directional signs are among the solicitation materials addressed by
California advertising requirements.
7. A California salesperson advertises a property online. The salesperson should ensure that the
advertisement:
A. Contains only the property address
B. Complies with applicable license and broker identification requirements
C. Omits the brokerage name
D. Uses only the salesperson's nickname
Rationale: Online and electronic advertising can be subject to California's solicitation and
disclosure requirements.
8. A real estate advertisement contains a false statement about the property's square footage.
This could constitute:
A. Acceptable puffing
B. Misrepresentation
C. A legal description
D. An escrow instruction
Rationale: Licensees must verify factual claims in advertisements; inaccurate property
information may constitute misleading advertising or misrepresentation.
, 9. A salesperson wants to advertise using a fictitious business name. Who must supervise the
salesperson's use of that name?
A. The county recorder
B. The buyer
C. The responsible broker
D. The title company
Rationale: A salesperson's use of an authorized fictitious business name is subject to the
responsible broker's supervision and approval.
10. A salesperson uses a fictitious business name owned by the salesperson. Which information
must the advertising generally contain?
A. Only the fictitious name
B. Only the brokerage phone number
C. The salesperson's name and license number and the responsible broker's identity
D. Only the salesperson's photograph
Rationale: California law requires advertising using such a fictitious business name to include the
salesperson's name and license number and the responsible broker's identity.
11. When a salesperson uses an authorized fictitious business name in advertising, the
responsible broker's identity must be:
A. Hidden in fine print
B. On a separate website
C. Displayed as prominently as the fictitious business name
D. Disclosed only after a sale
Rationale: Business and Professions Code §10159.5 requires the responsible broker's identity to
appear in a manner equally as prominent as the fictitious business name.
12. Which of the following is generally NOT permitted as a fictitious business name for a
California salesperson?
A. A properly authorized team name
B. A permitted marketing name
C. A name implying the salesperson is an independent brokerage when that is misleading
D. A name approved for use by the responsible broker
Rationale: Advertising and business names may not mislead consumers about the nature or
identity of the brokerage relationship.
exam 2026 questions and rationales answers
1. Which California agency regulates real estate advertising by licensed real estate
professionals?
A. California Secretary of State
B. California Department of Consumer Affairs
C. California Department of Real Estate (DRE)
D. California Franchise Tax Board
Rationale: The DRE administers and enforces California’s Real Estate Law, including advertising
requirements.
2. A California real estate advertisement must generally be:
A. Aggressive and persuasive
B. Truthful, accurate, and not misleading
C. Approved by the local city council
D. Written only by the broker
Rationale: Misleading advertising can constitute a violation of California real estate law.
3. Which information is generally required on solicitation materials that constitute the first point
of contact with a consumer?
A. Agent's home address
B. Property tax number
C. License identification information and responsible broker identity
D. Seller's Social Security number
Rationale: California Business and Professions Code §10140.6 establishes disclosure
requirements for certain solicitation materials.
4. A salesperson places a "FOR SALE" sign on a listed property. Which party is primarily
responsible for ensuring the advertising complies with applicable requirements?
A. The buyer
B. The seller only
C. The responsible broker
D. The property inspector
,Rationale: The responsible broker has supervisory duties over affiliated licensees and their
advertising.
5. Which of the following is considered solicitation material under California advertising rules?
A. A private diary
B. A business card
C. A personal tax return
D. A private text to a family member
Rationale: DRE guidance identifies business cards, stationery, flyers, electronic advertisements,
and various signs as solicitation materials.
6. Which sign is specifically identified as a type of solicitation material?
A. "No Parking" sign
B. Political campaign sign
C. "Open House" sign
D. School crossing sign
Rationale: "Open house" and directional signs are among the solicitation materials addressed by
California advertising requirements.
7. A California salesperson advertises a property online. The salesperson should ensure that the
advertisement:
A. Contains only the property address
B. Complies with applicable license and broker identification requirements
C. Omits the brokerage name
D. Uses only the salesperson's nickname
Rationale: Online and electronic advertising can be subject to California's solicitation and
disclosure requirements.
8. A real estate advertisement contains a false statement about the property's square footage.
This could constitute:
A. Acceptable puffing
B. Misrepresentation
C. A legal description
D. An escrow instruction
Rationale: Licensees must verify factual claims in advertisements; inaccurate property
information may constitute misleading advertising or misrepresentation.
, 9. A salesperson wants to advertise using a fictitious business name. Who must supervise the
salesperson's use of that name?
A. The county recorder
B. The buyer
C. The responsible broker
D. The title company
Rationale: A salesperson's use of an authorized fictitious business name is subject to the
responsible broker's supervision and approval.
10. A salesperson uses a fictitious business name owned by the salesperson. Which information
must the advertising generally contain?
A. Only the fictitious name
B. Only the brokerage phone number
C. The salesperson's name and license number and the responsible broker's identity
D. Only the salesperson's photograph
Rationale: California law requires advertising using such a fictitious business name to include the
salesperson's name and license number and the responsible broker's identity.
11. When a salesperson uses an authorized fictitious business name in advertising, the
responsible broker's identity must be:
A. Hidden in fine print
B. On a separate website
C. Displayed as prominently as the fictitious business name
D. Disclosed only after a sale
Rationale: Business and Professions Code §10159.5 requires the responsible broker's identity to
appear in a manner equally as prominent as the fictitious business name.
12. Which of the following is generally NOT permitted as a fictitious business name for a
California salesperson?
A. A properly authorized team name
B. A permitted marketing name
C. A name implying the salesperson is an independent brokerage when that is misleading
D. A name approved for use by the responsible broker
Rationale: Advertising and business names may not mislead consumers about the nature or
identity of the brokerage relationship.
