DRE EXAM A COMPREHENSIVE EXAM REVIEW
GUIDE WITH VERIFIED CORRECT
ANSWERS (HIGH ACCURACY &
UPDATED 2025/2026)
All the following are ways by which an offer to purchase real estate would be
terminated, ex cept: - CORRECT ANSWER -
Failure to communicate notice of revocation before the other party has communicated his or h
er acceptance
1. When using their closing statement, escrow would debit the seller of income property for w
hich of the following items: - CORRECT ANSWER -Prepaid rent
2. When a Cal-
vet wishes to purchase a home and use his California veterans benefits he would make the ap
plication to: - CORRECT ANSWER -Department of veterans affair
3. Which of the following loans would most likely be made without requiring a down payment
from the borrower: - CORRECT ANSWER -VA loan
4. Recorded title to parcel of real property was vested in Mary Wilson, a single woman. After h
er married to John Roberts she executed a deed to the property only in the name of Mary Rob
erts , a married woman. The discrepancy in the grantors name: - CORRECT ANSWER -
A defect, which may cause a cloud on the title
5. If a salesperson wishes to advertise his or her services, the advertisement must include: -
CORRECT ANSWER -The brokers name
6. Which of the following statement is incorrect with regard to an "in-house" sale? -
CORRECT ANSWER -Then lisitng broker can be the agent of the buyer only
,7. For income tax purposes, capital expenditures for improvements and alterations are: -
CORRECT ANSWER -Added to the "cost basis" of the property
, 17. Mr. Smith employed the XYZ pool construction company to install a swimming pool at his h
ome. After completion, the contractor filed a lien to obtained payment of the contract price. T
he encumbrance created was: - CORRECT ANSWER -A specific lien
19. Which of the following has control over the approval of a subdivision under the subdivision
map act? - CORRECT ANSWER -
Protects the lender against any deficiency in the event of a default
20. A land developer offers a free prize to anyone who replies to his direct mail advertisement
and visits his subdivision site. Prior to awarding the prize, however, the developer requires the
party to attend a sales presentation at the site. The sales presentation requirement was not m
entioned anywhere in the advertisement. This type of promotion is: - CORRECT ANSWER -
Illegal because it did nit disclose the sales representation attendance requirement
21. Which of the following statements most accurately describes mortgage companies who act
as mortgage loan correspondents. Such companies: - CORRECT ANSWER -
Prefer negotiating loans, which are sold on the secondary market
22. A real estate broker who desires to operate a real estate office that is both competitive an
d profitable, is vitally concerned with "desk cost". "Desk cost" is calculated by dividing the: -
CORRECT ANSWER -
Total cost of rent, utilities, telephone, advertising, and other operating expenses by the numbe
r of salespeson
23. Which of the following would a tenant in an apartment building and an owner in a condo
minium project have in common? - CORRECT ANSWER -Both have an estate in real property
24. The principal purpose of the federal truth in lending act was to: - CORRECT ANSWER -
Require creditors to disclosed complete credit terms to prospective borrowers
GUIDE WITH VERIFIED CORRECT
ANSWERS (HIGH ACCURACY &
UPDATED 2025/2026)
All the following are ways by which an offer to purchase real estate would be
terminated, ex cept: - CORRECT ANSWER -
Failure to communicate notice of revocation before the other party has communicated his or h
er acceptance
1. When using their closing statement, escrow would debit the seller of income property for w
hich of the following items: - CORRECT ANSWER -Prepaid rent
2. When a Cal-
vet wishes to purchase a home and use his California veterans benefits he would make the ap
plication to: - CORRECT ANSWER -Department of veterans affair
3. Which of the following loans would most likely be made without requiring a down payment
from the borrower: - CORRECT ANSWER -VA loan
4. Recorded title to parcel of real property was vested in Mary Wilson, a single woman. After h
er married to John Roberts she executed a deed to the property only in the name of Mary Rob
erts , a married woman. The discrepancy in the grantors name: - CORRECT ANSWER -
A defect, which may cause a cloud on the title
5. If a salesperson wishes to advertise his or her services, the advertisement must include: -
CORRECT ANSWER -The brokers name
6. Which of the following statement is incorrect with regard to an "in-house" sale? -
CORRECT ANSWER -Then lisitng broker can be the agent of the buyer only
,7. For income tax purposes, capital expenditures for improvements and alterations are: -
CORRECT ANSWER -Added to the "cost basis" of the property
, 17. Mr. Smith employed the XYZ pool construction company to install a swimming pool at his h
ome. After completion, the contractor filed a lien to obtained payment of the contract price. T
he encumbrance created was: - CORRECT ANSWER -A specific lien
19. Which of the following has control over the approval of a subdivision under the subdivision
map act? - CORRECT ANSWER -
Protects the lender against any deficiency in the event of a default
20. A land developer offers a free prize to anyone who replies to his direct mail advertisement
and visits his subdivision site. Prior to awarding the prize, however, the developer requires the
party to attend a sales presentation at the site. The sales presentation requirement was not m
entioned anywhere in the advertisement. This type of promotion is: - CORRECT ANSWER -
Illegal because it did nit disclose the sales representation attendance requirement
21. Which of the following statements most accurately describes mortgage companies who act
as mortgage loan correspondents. Such companies: - CORRECT ANSWER -
Prefer negotiating loans, which are sold on the secondary market
22. A real estate broker who desires to operate a real estate office that is both competitive an
d profitable, is vitally concerned with "desk cost". "Desk cost" is calculated by dividing the: -
CORRECT ANSWER -
Total cost of rent, utilities, telephone, advertising, and other operating expenses by the numbe
r of salespeson
23. Which of the following would a tenant in an apartment building and an owner in a condo
minium project have in common? - CORRECT ANSWER -Both have an estate in real property
24. The principal purpose of the federal truth in lending act was to: - CORRECT ANSWER -
Require creditors to disclosed complete credit terms to prospective borrowers
