CA DRE Real Estate Practices Exam Questions and Answers 2023

There are three main areas within this subject: Listing of real property Sales contracts Marketing - ANSWER-There are three main areas within this subject: Listing of real property Sales contracts Marketing Real Estate Practices describes government regulation of brokerage transactions, the operations of the Department of Real Estate, types of real estate licenses, requirements for obtaining broker and salesperson licenses, continuing education requirements, and, violations of real estate law and professional organizations. - ANSWER-Real Estate Practices describes government regulation of brokerage transactions, the operations of the Department of Real Estate, types of real estate licenses, requirements for obtaining broker and salesperson licenses, continuing education requirements, and, violations of real estate law and professional organizations. Also in this section will be a review of contracts in general, basic elements of a contract, Statute of Frauds, performance of contracts, discharge of contracts, Statue of Limitations, remedies for breach of contract, liquidated damages, and real estate contracts. - ANSWER-Also in this section will be a review of contracts in general, basic elements of a contract, Statute of Frauds, performance of contracts, discharge of contracts, Statue of Limitations, remedies for breach of contract, liquidated damages, and real estate contracts. Additionally what agency is, special distinctions of a general agency, creation of an agency relationship, disclosure and confirmation of agency, ostensible agency, dual agency, cooperating agents and subagent, agent's authority, the duties of an agent towards a principle, real estate transfer disclosure, duties and liabilities of the agent, rights of the agent, termination of agency and the overview of the MLS (multiple listing service) are discussed. - ANSWER-Additionally what agency is, special distinctions of a general agency, creation of an agency relationship, disclosure and confirmation of agency, ostensible agency, dual agency, cooperating agents and subagent, agent's authority, the duties of an agent towards a principle, real estate transfer disclosure, duties and liabilities of the agent, rights of the agent, termination of agency and the overview of the MLS (multiple listing service) are discussed. Real Estate Law is the law that regulates the licensing and conduct of real estate agents. It is designed for the protection of the p_________ in real estate transactions where an agent is involved. The Law also protects the good standing of ethical a__________. - ANSWER-Real Estate Law is the law that regulates the licensing and conduct of real estate agents. It is designed for the protection of the public in real estate transactions where an agent is involved. The Law also protects the good standing of ethical agents. The Real Estate Commissioner, appointed by the g________ of California, determines administrative policy and enforces the provisions of Real Estate Law. To be appointed, the designee must have been a real estate broker for ____ years, and be actively engaged in real estate business in California - ANSWER-The Real Estate Commissioner, appointed by the governor of California, determines administrative policy and enforces the provisions of Real Estate Law. To be appointed, the designee must have been a real estate broker for five years, and be actively engaged in real estate business in California Responsibilities of the Real Estate Commissioner include: Examine c_________ against licensees R___________ specific aspects of the sale of s_____________ Monitor real property s____________transactions Manage p________ rental listing services Screen and qualify applicants for l________ Investigate ________-licensees alleged to be performing acts for which a license is required. - ANSWER-Responsibilities of the Real Estate Commissioner include: Examine complaints against licensees Regulate specific aspects of the sale of subdivisions Monitor real property securities transactions Manage prepaid rental listing services Screen and qualify applicants for license Investigate non-licensees alleged to be performing acts for which a license is required. The Commissioner is not responsible for settling c________________ disputes. Those issues fall under the power of a court and must be handled by an attorney, if the parties cannot agree - ANSWER-The Commissioner is not responsible for settling commission disputes. Those issues fall under the power of a court and must be handled by an attorney, if the parties cannot agree The Real Estate Advisory Commission is made up of ____ members: six licensed real estate brokers and four public members. - ANSWER-The Real Estate Advisory Commission is made up of ten members: six licensed real estate brokers and four public members. The two main real estate licenses are the b_______'s license and the s____________ license. The Real Estate Law requires a salesperson to be supervised by a broker. A real estate salesperson must be employed by a real estate broker in order to receive commissions. A salesperson must never accept a commission payment directly from the buyer or seller, or through escrow. The escrow company pays a b________ when the escrow c_______ who then pays the salesperson. - ANSWER-The two main real estate licenses are the broker's license and the salesperson's license. The Real Estate Law requires a salesperson to be supervised by a broker. A real estate salesperson must be employed by a real estate broker in order to receive commissions. A salesperson must never accept a commission payment directly from the buyer or seller, or through escrow. The escrow company pays a broker when the escrow closes who then pays the salesperson. Types of agents include: Real estate agent - someone with a b_________ or s__________ license; negotiates sales for clients. Real estate broker - someone with a broker license; negotiates sales for clients; able to e________ a person with a salesperson license. Real estate salesperson or real estate sales associate - someone with a salesperson l________; must work under a real estate broker to perform any real estate transactions. Licensee - a salesperson or broker. - ANSWER-Types of agents include: Real estate agent - someone with a broker or salesperson license; negotiates sales for clients. Real estate broker - someone with a broker license; negotiates sales for clients; able to employ a person with a salesperson license. Real estate salesperson or real estate sales associate - someone with a salesperson license; must work under a real estate broker to perform any real estate transactions. Licensee - a salesperson or broker. Real estate license is required for the following acts: Soliciting b_______ Soliciting s_________ Negotiating s_______ Negotiating e________ Negotiating l_________ Negotiating sales c________ Negotiating a p________ note secured by r_______ property Soliciting for t_______ or r_______ Negotiating l_______ - ANSWER-Real estate license is required for the following acts: Soliciting buyers Soliciting sellers Negotiating sales Negotiating exchanges Negotiating leases Negotiating sales contracts Negotiating a promissory note secured by real property Soliciting for tenants or rentals Negotiating loans A real estate license is not needed by: A person dealing with his or her ____ property A corporation that performs the specified activities through one of its officers who must not receive s_________ c_________________for the activities. Anyone holding p_______________ for the owner of the property. An attorney providing services in the regular c_____of business as attorney. Any receiver, trustee in a bankruptcy, or person acting under any c______. Any t_____ selling under a deed of trust. Employees of l_______ institutions, p___________ trusts, c_______ unions, or i_________ companies in connection with loans secured by liens on real property or business opportunities. E__________ agents who collect funds from loans secured by liens on real property when funds are deposited in the escrow agent's trust account. - ANSWER-A real estate license is not needed by: A person dealing with his or her own property A corporation that performs the specified activities through one of its officers who must not receive special compensation for the activities. Anyone holding power of attorney for the owner of the property. An attorney providing services in the regular course of business as attorney. Any receiver, trustee in a bankruptcy, or person acting under any court. Any trustee selling under a deed of trust. Employees of lending institutions, pension trusts, credit unions, or insurance companies in connection with loans secured by liens on real property or business opportunities. Escrow agents who collect funds from loans secured by liens on real property when funds are deposited in the escrow agent's trust account. No unlicensed person may receive payment for any real estate act or pose as a broker or salesperson. The fine for paying a fee to an unlicensed person is $_____ for each offense. The punishment for an individual who falsely claims to be an active broker or salesperson is a fine of up to $___,000, a prison term of up to six months, or both. The purpose of the real estate license exam is to make sure c__________ are protected in all transaction where they are represented by a real estate agent. - ANSWER-No unlicensed person may receive payment for any real estate act or pose as a broker or salesperson. The fine for paying a fee to an unlicensed person is $100 for each offense. The punishment for an individual who falsely claims to be an active broker or salesperson is a fine of up to $10,000, a prison term of up to six months, or both. The purpose of the real estate license exam is to make sure consumers are protected in all transaction where they are represented by a real estate agent. To receive a conditional salesperson license, an applicant must: Be at least ____ years old Be h_____ and truthful Complete a real estate p_______ course Pass the s_____ qualifying exam A_____ on the form provided by the Real Estate Commissioner - ANSWER-To receive a conditional salesperson license, an applicant must: Be at least 18 years old Be honest and truthful Complete a real estate principles course Pass the state qualifying exam Apply on the form provided by the Real Estate Commissioner Within eighteen months of the issuance of the conditional salesperson license, the licensee must complete two additional courses from the following list: Accounting Business law Escrow Legal Aspects of Real Estate Mortgage Loan Brokering and Lending Property Management Real Estate Appraisal Real Estate Economics Real Estate Finance Real Estate Office Administration Real Estate Practice - ANSWER-Within eighteen months of the issuance of the conditional salesperson license, the licensee must complete two additional courses from the following list: Accounting Business law Escrow Legal Aspects of Real Estate Mortgage Loan Brokering and Lending Property Management Real Estate Appraisal Real Estate Economics Real Estate Finance Real Estate Office Administration Real Estate Practice Within eighteen months of the issuance of the conditional salesperson license, the licensee must complete two additional courses from the following list: Accounting Business law Escrow Legal Aspects of Real Estate Mortgage Loan Brokering and Lending Property Management Real Estate Appraisal Real Estate Economics Real Estate Finance Real Estate Office Administration Real Estate Practice - ANSWER-Within eighteen months of the issuance of the conditional salesperson license, the licensee must complete two additional courses from the following list: Accounting Business law Escrow Legal Aspects of Real Estate Mortgage Loan Brokering and Lending Property Management Real Estate Appraisal Real Estate Economics Real Estate Finance Real Estate Office Administration Real Estate Practice The subject areas of the real estate salesperson licensing exam and approximate percent of questions in each subject area are: Real Property and Laws Relating to Ownership: 11% Tax Implications of Real Estate Ownership: 8% Valuation/appraisal of Real Property:15% Financing Real Estate: 17% Transfer of Property: 10% Real Estate Practice: 22% Broker's Responsibilities/Functions of Salesperson: 17% The salesperson exam is 3¼ hours in length, has 150 multiple-choice questions, and 70% of the questions must be answered correctly. - ANSWER-The subject areas of the real estate salesperson licensing exam and approximate percent of questions in each subject area are: Real Property and LawsRelatingtoOwnership:11% Tax Implications of Real Estate Ownership: 8% Valuation/appraisal of Real Property:15% Financing Real Estate: 17% Transfer of Property: 10% Real Estate Practice: 22% Broker's Responsibilities/Functions of Salesperson: 17% The salesperson exam is 3¼ hours in length, has 150 multiple-choice questions, and 70% of the questions must be answered correctly. To receive a broker license, an applicant must: Be at least 18 years old Be honest and truthful Have previous experience and education as required by law Pass the state qualifying exam Apply on the form provided by the Real Estate Commissioner The law requires two years of previous full-time experience as a salesperson, or a degree from a four-year college. - ANSWER-To receive a broker license, an applicant must: Be at least 18 years old Be honest and truthful Have previous experience and education as required by law Pass the state qualifying exam Apply on the form provided by the Real Estate Commissioner The law requires two years of previous full-time experience as a salesperson, or a degree from a four-year college. A broker applicant must complete the following courses: Accounting or Real Estate Economics Legal Aspects of Real Estate Real Estate Appraisal Real Estate Finance Real Estate Practice The applicant must also complete three courses from the following group: Advanced Legal Aspects of Real Estate Advanced Real Estate Appraisal Advanced Real Estate Finance Business Law-Escrows Mortgage Loan Brokering and Lending Property Management Real Estate Office Administration Real Estate Principles - ANSWER-A broker applicant must complete the following courses: Accounting or Real Esta