DRE Final Exam California UPDATED
ACTUAL Questions and CORRECT
Answers
What is the length of measurement referred to as a "chain?" - CORRECT ANSWER - The
total length of a surveyor's chain is 66 feet
A contract signed under duress is: - CORRECT ANSWER - Voidable. Duress is a threat
whereby a person is forced to do some act against his/her will. The person who was forced to
perform under a threat has the right to void the agreement or let it stand.
The maximum commission a broker may charge for the sale of residential property is: -
CORRECT ANSWER - determined by the broker's contract with his principal. There is
currently no law which controls what amount may be charged by the broker. Therefore, it is set
by agreement between the parties.
Owner bob owns an apartment complex which is managed by broker X. Owner bob wants to sell
his apartments and broker X is the listing broker. Who distributes the security deposit? -
CORRECT ANSWER - the escrow company. Security deposits technically belong to the
tenant. However, they are held by the owner until the tenant leaves and the owner inspects the
unit. It is probably true that Broker X must hand the deposits to escrow, but escrow distributes
everything at the close to the new buyer. This includes all proration of prepaid rent, taxes etc.
The security deposits would be a credit to the buyer.
The second property tax installment is due and delinquent on: - CORRECT ANSWER -
February 1st - April 10th
No, Darn, Foolin, Around - CORRECT ANSWER - November 1st: First installment due;
December 10th: Delinquent date for 1st installment;
February 1st: Second installment due;
April 10th: Delinquent date for 2nd installment.
, Regarding environment standards, Federal law requires the seller of a new home to disclose
which of the following to the buyer? - CORRECT ANSWER - R-rating. Federal law
requires that a "new home" seller (including a subdivider) disclose in every sales contract the
type, thickness, and R-value of the insulation which has been or will be installed. (Federal Trade
Regulation Section 460.16; Public Resources Code Section 25402 et seq.)
A parcel of land known as the servient tenement: - CORRECT ANSWER - is the property
burdened by the easement.
The word "laches" most nearly pertains to: - CORRECT ANSWER - failure to do
something within a prescribed time. Laches means failing to do something which should have
been done, i.e., to file a claim or to enforce a right, all within a prescribed time. The Statute of
Limitations outlines actions that can be brought within a certain time frame.
Which of the following is NOT included in the Natural Hazard Disclosure Statement? -
CORRECT ANSWER - Weather conditions
In real estate transactions, the type of misrepresentation which occurs least often is: - CORRECT
ANSWER - fraudulent misrepresentation. Few brokers try to deliberately commit fraud.
When using a grant deed, title transfers at the time of: - CORRECT ANSWER -
Technically, DELIVERY is the legal act of transferring ownership.
A listing with an effective date of March 12th and expiring on April 12th is for: - CORRECT
ANSWER - 32 days
Which of the following statements is correct? - CORRECT ANSWER - A dual agency is
NOT necessarily a violation of law.
The Real Estate Commissioner may fine a broker which of the following amounts for illegal
payment of commission to an unlicensed person: - CORRECT ANSWER - The
Commissioner does not levy fines. This is done by the court. The Commissioner may
ACTUAL Questions and CORRECT
Answers
What is the length of measurement referred to as a "chain?" - CORRECT ANSWER - The
total length of a surveyor's chain is 66 feet
A contract signed under duress is: - CORRECT ANSWER - Voidable. Duress is a threat
whereby a person is forced to do some act against his/her will. The person who was forced to
perform under a threat has the right to void the agreement or let it stand.
The maximum commission a broker may charge for the sale of residential property is: -
CORRECT ANSWER - determined by the broker's contract with his principal. There is
currently no law which controls what amount may be charged by the broker. Therefore, it is set
by agreement between the parties.
Owner bob owns an apartment complex which is managed by broker X. Owner bob wants to sell
his apartments and broker X is the listing broker. Who distributes the security deposit? -
CORRECT ANSWER - the escrow company. Security deposits technically belong to the
tenant. However, they are held by the owner until the tenant leaves and the owner inspects the
unit. It is probably true that Broker X must hand the deposits to escrow, but escrow distributes
everything at the close to the new buyer. This includes all proration of prepaid rent, taxes etc.
The security deposits would be a credit to the buyer.
The second property tax installment is due and delinquent on: - CORRECT ANSWER -
February 1st - April 10th
No, Darn, Foolin, Around - CORRECT ANSWER - November 1st: First installment due;
December 10th: Delinquent date for 1st installment;
February 1st: Second installment due;
April 10th: Delinquent date for 2nd installment.
, Regarding environment standards, Federal law requires the seller of a new home to disclose
which of the following to the buyer? - CORRECT ANSWER - R-rating. Federal law
requires that a "new home" seller (including a subdivider) disclose in every sales contract the
type, thickness, and R-value of the insulation which has been or will be installed. (Federal Trade
Regulation Section 460.16; Public Resources Code Section 25402 et seq.)
A parcel of land known as the servient tenement: - CORRECT ANSWER - is the property
burdened by the easement.
The word "laches" most nearly pertains to: - CORRECT ANSWER - failure to do
something within a prescribed time. Laches means failing to do something which should have
been done, i.e., to file a claim or to enforce a right, all within a prescribed time. The Statute of
Limitations outlines actions that can be brought within a certain time frame.
Which of the following is NOT included in the Natural Hazard Disclosure Statement? -
CORRECT ANSWER - Weather conditions
In real estate transactions, the type of misrepresentation which occurs least often is: - CORRECT
ANSWER - fraudulent misrepresentation. Few brokers try to deliberately commit fraud.
When using a grant deed, title transfers at the time of: - CORRECT ANSWER -
Technically, DELIVERY is the legal act of transferring ownership.
A listing with an effective date of March 12th and expiring on April 12th is for: - CORRECT
ANSWER - 32 days
Which of the following statements is correct? - CORRECT ANSWER - A dual agency is
NOT necessarily a violation of law.
The Real Estate Commissioner may fine a broker which of the following amounts for illegal
payment of commission to an unlicensed person: - CORRECT ANSWER - The
Commissioner does not levy fines. This is done by the court. The Commissioner may
