CA DRE EXAM QUESTIONS WITH CORRECT
ANSWERS 2025
EARNESTNMONEYNDEPOSIT:N-NCORRECTNANSWERN-
moneyNpledgedNbyNaNbuyerNtoNshowNgoodNfaithNwhenNmakingNanNofferNtoNbuyNaNhome.NcanNloseN
duringNescrow.
FRAUDN-NCORRECTNANSWERN-deceptiveNactNdoneNintentionally
-Nex.NaffirmativeNstatementNwithholdingNmaterialNfact
-NmakesNcontractNvoidableNatNoptionNofNbuyerN(fallNthroughNorNterminateNcontract)
-NdamagesNcanNincludeNpunitiveNdamages
ACTUALNFRAUDN-NCORRECTNANSWERN-
intentionalNmisrepresentationNorNrepresentationNwithoutNregardNtoNtheNactualNfact.promiseNmad
eNwithoutNintentionNtoNfollowNthroughNwithNpromiseN(lying)
NEGATIVENFRAUDN-NCORRECTNANSWERN-
agentNdoesNnotNdiscloseNaNmaterialNfactNinNorderNtoNenterNaNcontractN(avoidance)
CONSTRUCTIVENFRAUDN-NCORRECTNANSWERN-lyingNwithoutNknowing
MISREPRESENTATIONN-NCORRECTNANSWERN-misstatementNmadeNinnocently
-NmaterialNfactNbelievedNtoNbeNtrue
-NcontractNisNvoidableNbecauseNclientNhasNbeenNdamaged
-
NifNtheNtruthNofNmaterialNfactNcanNbeNfoundNviaNeasyNaccessibleNmeansN(ex.NlookingNatNpropertyNor
NpaperNinNfrontNofNthem)NcontractNisNnotNvoidable
, COMMINGLINGN-NCORRECTNANSWERN-
whenNfiduciaryN(usuallyNbroker)NmixesNtheirNmoneyNwithNtheirNclients
CONVERSIONN-NCORRECTNANSWERN-usingNclientsNmoney/propertyNforNpersonalNuse
-NclientN—>NbrokerN—>NbrokersNtrustNaccount
-Nbroker/NauthorizedNuserNcanNnotNwithdrawalNfundsNfromNaccountNexceptNforNintendedNuse
REALNESTATENAGENTN-NCORRECTNANSWERN-anNindividualNorNcorporationNrepresentingNaNprincipal
-NMemberNofNtheNNationalNAssociationNofNRealtors,Nhe/sheNupholdsNstandard
ofNassociation,NpaysNfees,NandNupholdsNguidelinesN-NcanNuseN"Realtor"Nname
-NmustNanswerNtoNaNhigherNauthority
BROKERN-NCORRECTNANSWERN-canNworkNaloneNorNhireNagentsNtoNworkNunderNthemN
-
NoverseesNtransaction,NtakesNlegalNresponsibility,NandNshareNcommissionNwhenNtransactionNisNdon
e
GROSSNRENTNMULTIPLIER:N-NCORRECTNANSWERN-whenNtheNbuyerNwantsNtoNuseNthisNasNaNrental
-NhowNpriceNofNpropertyNrelatesNrentNamountNofNpropertyN(priceN/Nrent)
-NANNUAL:N100,000N/N10,000N(yearlyNrentNincome)N=N10N(rangeNfromN5N-N20)
-NMONTHLY:N100,000N/N1,000N(monthlyNrent)N=N100N(rangeNfromN80N-N20)
STIGMATIZEDNPROPERTYN-NCORRECTNANSWERN-letNtheNbuyerNbeware
-
NsellersNhaveNaNdutyNtoNreplyNtruthfullyNaboutNimportantNfactsN,NincludingNsilenceN&NevasiveNansw
ers.NanythingNthatNmateriallyNaffectsNtheNvalueNofNproperty.
N
-NExamples:Nphenomena,Nmurder/NsuicideN(3Nyears),NcriminalNactivity,Ndebt,NpublicNstigma
ANSWERS 2025
EARNESTNMONEYNDEPOSIT:N-NCORRECTNANSWERN-
moneyNpledgedNbyNaNbuyerNtoNshowNgoodNfaithNwhenNmakingNanNofferNtoNbuyNaNhome.NcanNloseN
duringNescrow.
FRAUDN-NCORRECTNANSWERN-deceptiveNactNdoneNintentionally
-Nex.NaffirmativeNstatementNwithholdingNmaterialNfact
-NmakesNcontractNvoidableNatNoptionNofNbuyerN(fallNthroughNorNterminateNcontract)
-NdamagesNcanNincludeNpunitiveNdamages
ACTUALNFRAUDN-NCORRECTNANSWERN-
intentionalNmisrepresentationNorNrepresentationNwithoutNregardNtoNtheNactualNfact.promiseNmad
eNwithoutNintentionNtoNfollowNthroughNwithNpromiseN(lying)
NEGATIVENFRAUDN-NCORRECTNANSWERN-
agentNdoesNnotNdiscloseNaNmaterialNfactNinNorderNtoNenterNaNcontractN(avoidance)
CONSTRUCTIVENFRAUDN-NCORRECTNANSWERN-lyingNwithoutNknowing
MISREPRESENTATIONN-NCORRECTNANSWERN-misstatementNmadeNinnocently
-NmaterialNfactNbelievedNtoNbeNtrue
-NcontractNisNvoidableNbecauseNclientNhasNbeenNdamaged
-
NifNtheNtruthNofNmaterialNfactNcanNbeNfoundNviaNeasyNaccessibleNmeansN(ex.NlookingNatNpropertyNor
NpaperNinNfrontNofNthem)NcontractNisNnotNvoidable
, COMMINGLINGN-NCORRECTNANSWERN-
whenNfiduciaryN(usuallyNbroker)NmixesNtheirNmoneyNwithNtheirNclients
CONVERSIONN-NCORRECTNANSWERN-usingNclientsNmoney/propertyNforNpersonalNuse
-NclientN—>NbrokerN—>NbrokersNtrustNaccount
-Nbroker/NauthorizedNuserNcanNnotNwithdrawalNfundsNfromNaccountNexceptNforNintendedNuse
REALNESTATENAGENTN-NCORRECTNANSWERN-anNindividualNorNcorporationNrepresentingNaNprincipal
-NMemberNofNtheNNationalNAssociationNofNRealtors,Nhe/sheNupholdsNstandard
ofNassociation,NpaysNfees,NandNupholdsNguidelinesN-NcanNuseN"Realtor"Nname
-NmustNanswerNtoNaNhigherNauthority
BROKERN-NCORRECTNANSWERN-canNworkNaloneNorNhireNagentsNtoNworkNunderNthemN
-
NoverseesNtransaction,NtakesNlegalNresponsibility,NandNshareNcommissionNwhenNtransactionNisNdon
e
GROSSNRENTNMULTIPLIER:N-NCORRECTNANSWERN-whenNtheNbuyerNwantsNtoNuseNthisNasNaNrental
-NhowNpriceNofNpropertyNrelatesNrentNamountNofNpropertyN(priceN/Nrent)
-NANNUAL:N100,000N/N10,000N(yearlyNrentNincome)N=N10N(rangeNfromN5N-N20)
-NMONTHLY:N100,000N/N1,000N(monthlyNrent)N=N100N(rangeNfromN80N-N20)
STIGMATIZEDNPROPERTYN-NCORRECTNANSWERN-letNtheNbuyerNbeware
-
NsellersNhaveNaNdutyNtoNreplyNtruthfullyNaboutNimportantNfactsN,NincludingNsilenceN&NevasiveNansw
ers.NanythingNthatNmateriallyNaffectsNtheNvalueNofNproperty.
N
-NExamples:Nphenomena,Nmurder/NsuicideN(3Nyears),NcriminalNactivity,Ndebt,NpublicNstigma