DRE EXAM QUESTIONS WITH CORRECT
ANSWERS 2025
TheDbuyerDinDaDsaleDleasebackDtransactionDwouldDbeDleastDconcernedDwithDthe:D-
DCORRECTDANSWERD-OriginalDcostDtoDconstructDtheDbuilding.
ADrealDestateDbrokerDisDguiltyDofDconversionDifDthey:D-DCORRECTDANSWERD-
UsedDtrustDfundsDforDtheirDpersonalDuse.D(ConversionDrequiresDtheDpersonalDuseDofDclientDmonies.
)
TheDreferralDofDaDclientDtoDaDfinanciallyDcontrolledDbusinessDownedDbyDtheDbrokerDisDrequiredDtoDb
eDdisclosedDbyDuseDofDa(n):D-DCORRECTDANSWERD-
AffiliatedDBusinessDArrangementDDisclosureDStatementD(NotDconflictDofDinterestDbecauseDbrokerDd
oesDnotDhaveDaDpersonalDinterestDorDprofessionalDbiasDthatDinterferesDwithDfiduciaryDduty;DlikeDrel
ativeDofDsomeoneDinDtransactionDorDhasDownershipDinterestDinDaDproperty.)
ADlistingDbrokerDneedsDtoDpresentDallDoffersDreceivedDonDaDlistingDpropertyDuntil:D-
DCORRECTDANSWERD-EscrowDisDclosed.
ADprohibitionDagainstDaD"ForDSale"DsignDinDaDresidentialDneighborhood:D-DCORRECTDANSWERD-
ViolatesDtheDFirstDAmendmentD(freedomDofDspeechDandDfreeDflowDofDtruthfulDcommercialDinform
ation)
WhichDofDtheDfollowingDentityDdoesDnotDbuyDloansDinDtheDsecondaryDmortgageDmarket?D-
DCORRECTDANSWERD-FederalDHousingDAdministration D(FHA)
RecordingDaDdeedDprovides:D-DCORRECTDANSWERD-
ConstructiveDNoticeD(ofDtheDownershipDofDaDproperty)
,WhenDaDleaseDisDforDaDperiodDgreaterDthanDoneDyear,DtheDcontractDdoesDnotDrequire:D-
DCORRECTDANSWERD-
SignaturesDofDbothDtheDownerDandDtenantD(onlyDrequiresDsignatureDofDtenant)
IfDaDdeedDprovidesDforDanDeasementDgrantingDingressDandDegressDoverDaDneighboringDpropertyDbut
DfailsDtoDlocateDtheDeasement,Dthe:D-DCORRECTDANSWERD-
ServientDtenementDholderDcanDspecifyDifDaDparticularDareaDsoDlongDasDitDisDresponsible.
AnaDsoldDherDprimaryDresidenceDforD$950k.DSheDoriginallyDpaidD$750kDforDtheDpropertyD4DyearsDag
o.DSheDspentD$300kDonDcapitalDimprovementsDduringDherDownership.DWhatDcanDAnaDwrite-
offDwhenDfilingDherDtaxDreturn?D-DCORRECTDANSWERD-
NothingD(CapitalDlossesDareDnotDpermittedDonDaDprimaryDresidence)
WhenDaDdualDagencyDisDestablishDinDaD1-to-
4DunitDresidentialDsalesDtransaction,DtheDbrokerDandDtheirDagentsDmayDpassDonDinformationDrelatin
gDtoDtheD______DfromDoneDpartyDtoDanother.D-DCORRECTDANSWERD-
PriceDofDcomparableDhomesDinDtheDneighborhoodD(compsDareDokay,DfinancialDinfoDcanDnotDbeDshar
ed)
ToDdepreciateDrealDestate,DitDneedsDtoDbe:D-DCORRECTDANSWERD-Improved
TheDprimaryDpurposeDofDanyDdeedDisDto:D-DCORRECTDANSWERD-
GiveDevidenceDofDtheDchangeDinDtitleDorDtransferDofDanDinterestDinDrealDproperty.
UnderDtheDRealDEstateDLaw,DaDrealDestateDsalespersonDis:D-DCORRECTDANSWERD-
AnDemployeeDofDtheDbroker.
WhenDanDadministratorDofDanDestateDsellsDaDparcel:D-DCORRECTDANSWERD-
CourtDapprovalDisDrequired.D(ADsaleDfromDanDestateDinvolvesDaDcourt)
, TheDannualDpercentageDyieldD(APY)DappliesDto:D-DCORRECTDANSWERD-SavingsDaccounts
OnDJanuaryD1,D1987,DwhichDrealDestateDdisclosureDlawDwentDintoDeffect?D-DCORRECTDANSWERD-
TheDTransferDDisclosureDStatementD(TDS)
HousingDexpensesDareDoneDofDtheDlargestDdenominatorsDinDtheDConsumerDPriceDIndexD(CPI)Dsince:
D-DCORRECTDANSWERD-HousingDisDoneDofDtheDlargestDexpensesDforDconsumers.
WhatDisDoneDboardDfoot?D-DCORRECTDANSWERD-12inDxD12DinDxD1inD(6"x2"x12")
WhichDzoningDdesignationDisDsuitableDforDlandDusedDasDtheDsiteDofDmulti-
familyDresidentialDdevelopments?D-DCORRECTDANSWERD-R-
4D(ResidentialDzoningDisDlabeledDwithDR.DMultipleDunitsDwithDhaveDtheDnumberDofDunitsDotherDthan
D1)
RandyDboughtDaD12-
unitDapartmentDbuilding.DWhatDisDtheDminimumDnumberDofDyearsDinDwhichDheDmayDdepreciateDth
eDbuildingDforDfederalDincomeDtaxDpurposes?D-DCORRECTDANSWERD-
27.5D(theDdepreciationDminimumDisD27.5DyearsDregardlessDofDunitsDorDpropertyDusage,DasDlongDasDi
tDisDheldDasDrentalDorDinvestmentDproperty)
ToDbeDenforceable,DtheDlistingDofDaDbusinessDopportunity:D-DCORRECTDANSWERD-
DoesDnotDalwaysDhaveDtoDbeDinDwriting.
UnderDaD_____,DtheDagent'sDfeeDisDsetDasDallDsumsDreceivedDexceedingDaDnetDpriceDestablishedDbyDt
heDowner.D-DCORRECTDANSWERD-
NetDlistingD(givesDanDestablishedDamountDtoDtheDsellerDandDallDtheDexcessDtoDtheDbroker).
InDwhichDyearDdidDtheDUSDSupremeDCourtDprohibirDallDracialDdiscriminationDinDtheDsaleDorDleaseDofD
realDproperty?D-DCORRECTDANSWERD-1968.D(CivilDRightsDActDasDaDfederalDlaw)
ANSWERS 2025
TheDbuyerDinDaDsaleDleasebackDtransactionDwouldDbeDleastDconcernedDwithDthe:D-
DCORRECTDANSWERD-OriginalDcostDtoDconstructDtheDbuilding.
ADrealDestateDbrokerDisDguiltyDofDconversionDifDthey:D-DCORRECTDANSWERD-
UsedDtrustDfundsDforDtheirDpersonalDuse.D(ConversionDrequiresDtheDpersonalDuseDofDclientDmonies.
)
TheDreferralDofDaDclientDtoDaDfinanciallyDcontrolledDbusinessDownedDbyDtheDbrokerDisDrequiredDtoDb
eDdisclosedDbyDuseDofDa(n):D-DCORRECTDANSWERD-
AffiliatedDBusinessDArrangementDDisclosureDStatementD(NotDconflictDofDinterestDbecauseDbrokerDd
oesDnotDhaveDaDpersonalDinterestDorDprofessionalDbiasDthatDinterferesDwithDfiduciaryDduty;DlikeDrel
ativeDofDsomeoneDinDtransactionDorDhasDownershipDinterestDinDaDproperty.)
ADlistingDbrokerDneedsDtoDpresentDallDoffersDreceivedDonDaDlistingDpropertyDuntil:D-
DCORRECTDANSWERD-EscrowDisDclosed.
ADprohibitionDagainstDaD"ForDSale"DsignDinDaDresidentialDneighborhood:D-DCORRECTDANSWERD-
ViolatesDtheDFirstDAmendmentD(freedomDofDspeechDandDfreeDflowDofDtruthfulDcommercialDinform
ation)
WhichDofDtheDfollowingDentityDdoesDnotDbuyDloansDinDtheDsecondaryDmortgageDmarket?D-
DCORRECTDANSWERD-FederalDHousingDAdministration D(FHA)
RecordingDaDdeedDprovides:D-DCORRECTDANSWERD-
ConstructiveDNoticeD(ofDtheDownershipDofDaDproperty)
,WhenDaDleaseDisDforDaDperiodDgreaterDthanDoneDyear,DtheDcontractDdoesDnotDrequire:D-
DCORRECTDANSWERD-
SignaturesDofDbothDtheDownerDandDtenantD(onlyDrequiresDsignatureDofDtenant)
IfDaDdeedDprovidesDforDanDeasementDgrantingDingressDandDegressDoverDaDneighboringDpropertyDbut
DfailsDtoDlocateDtheDeasement,Dthe:D-DCORRECTDANSWERD-
ServientDtenementDholderDcanDspecifyDifDaDparticularDareaDsoDlongDasDitDisDresponsible.
AnaDsoldDherDprimaryDresidenceDforD$950k.DSheDoriginallyDpaidD$750kDforDtheDpropertyD4DyearsDag
o.DSheDspentD$300kDonDcapitalDimprovementsDduringDherDownership.DWhatDcanDAnaDwrite-
offDwhenDfilingDherDtaxDreturn?D-DCORRECTDANSWERD-
NothingD(CapitalDlossesDareDnotDpermittedDonDaDprimaryDresidence)
WhenDaDdualDagencyDisDestablishDinDaD1-to-
4DunitDresidentialDsalesDtransaction,DtheDbrokerDandDtheirDagentsDmayDpassDonDinformationDrelatin
gDtoDtheD______DfromDoneDpartyDtoDanother.D-DCORRECTDANSWERD-
PriceDofDcomparableDhomesDinDtheDneighborhoodD(compsDareDokay,DfinancialDinfoDcanDnotDbeDshar
ed)
ToDdepreciateDrealDestate,DitDneedsDtoDbe:D-DCORRECTDANSWERD-Improved
TheDprimaryDpurposeDofDanyDdeedDisDto:D-DCORRECTDANSWERD-
GiveDevidenceDofDtheDchangeDinDtitleDorDtransferDofDanDinterestDinDrealDproperty.
UnderDtheDRealDEstateDLaw,DaDrealDestateDsalespersonDis:D-DCORRECTDANSWERD-
AnDemployeeDofDtheDbroker.
WhenDanDadministratorDofDanDestateDsellsDaDparcel:D-DCORRECTDANSWERD-
CourtDapprovalDisDrequired.D(ADsaleDfromDanDestateDinvolvesDaDcourt)
, TheDannualDpercentageDyieldD(APY)DappliesDto:D-DCORRECTDANSWERD-SavingsDaccounts
OnDJanuaryD1,D1987,DwhichDrealDestateDdisclosureDlawDwentDintoDeffect?D-DCORRECTDANSWERD-
TheDTransferDDisclosureDStatementD(TDS)
HousingDexpensesDareDoneDofDtheDlargestDdenominatorsDinDtheDConsumerDPriceDIndexD(CPI)Dsince:
D-DCORRECTDANSWERD-HousingDisDoneDofDtheDlargestDexpensesDforDconsumers.
WhatDisDoneDboardDfoot?D-DCORRECTDANSWERD-12inDxD12DinDxD1inD(6"x2"x12")
WhichDzoningDdesignationDisDsuitableDforDlandDusedDasDtheDsiteDofDmulti-
familyDresidentialDdevelopments?D-DCORRECTDANSWERD-R-
4D(ResidentialDzoningDisDlabeledDwithDR.DMultipleDunitsDwithDhaveDtheDnumberDofDunitsDotherDthan
D1)
RandyDboughtDaD12-
unitDapartmentDbuilding.DWhatDisDtheDminimumDnumberDofDyearsDinDwhichDheDmayDdepreciateDth
eDbuildingDforDfederalDincomeDtaxDpurposes?D-DCORRECTDANSWERD-
27.5D(theDdepreciationDminimumDisD27.5DyearsDregardlessDofDunitsDorDpropertyDusage,DasDlongDasDi
tDisDheldDasDrentalDorDinvestmentDproperty)
ToDbeDenforceable,DtheDlistingDofDaDbusinessDopportunity:D-DCORRECTDANSWERD-
DoesDnotDalwaysDhaveDtoDbeDinDwriting.
UnderDaD_____,DtheDagent'sDfeeDisDsetDasDallDsumsDreceivedDexceedingDaDnetDpriceDestablishedDbyDt
heDowner.D-DCORRECTDANSWERD-
NetDlistingD(givesDanDestablishedDamountDtoDtheDsellerDandDallDtheDexcessDtoDtheDbroker).
InDwhichDyearDdidDtheDUSDSupremeDCourtDprohibirDallDracialDdiscriminationDinDtheDsaleDorDleaseDofD
realDproperty?D-DCORRECTDANSWERD-1968.D(CivilDRightsDActDasDaDfederalDlaw)
