California Real Estate Salesperson Practice Exam
Questions And Correct Answers (Verified Answers)
Plus Rationales 2025/2026 Q&A | Instant Download
Pdf
1. A real estate salesperson owes fiduciary duties to:
A) The buyer
B) The seller
C) Their employing broker
D) The public
Answer: C) Their employing broker
Rationale: A salesperson is legally employed by a broker, not directly by clients.
Fiduciary duties to clients are owed through the broker.
2. A listing agreement that automatically renews after its expiration date is:
A) An open listing
B) An exclusive agency listing
C) A net listing
D) Void
Answer: D) Void
Rationale: California law requires listing agreements to have definite terms;
automatic renewal clauses are not enforceable.
3. What type of ownership allows two or more people to hold equal shares
with right of survivorship?
A) Tenancy in common
B) Joint tenancy
C) Community property
D) Fee simple absolute
Answer: B) Joint tenancy
Rationale: Joint tenancy includes right of survivorship, meaning the deceased’s
share passes to surviving co-owners.
,4. The California Department of Real Estate (DRE) requires that brokers keep
transaction records for:
A) 1 year
B) 2 years
C) 3 years
D) 5 years
Answer: C) 3 years
Rationale: DRE regulations mandate that brokers retain transaction files for at
least three years from the date of closing.
5. An agent who is authorized to perform certain acts but not all acts for the
principal has:
A) General authority
B) Limited authority
C) Universal authority
D) Implied authority
Answer: B) Limited authority
Rationale: Limited (special) agency allows the agent to perform specific tasks
defined by the principal.
6. Which of the following is considered real property?
A) A trade fixture
B) A mobile home not attached to land
C) Land with attached structures
D) Furniture
Answer: C) Land with attached structures
Rationale: Real property includes land and anything permanently attached to
it, such as buildings.
7. A property manager collects rent and handles repairs for an apartment
building. This relationship is an example of:
A) General agency
B) Special agency
, C) Universal agency
D) Implied agency
Answer: A) General agency
Rationale: General agency allows the agent to handle all matters related to a
particular business or property.
8. A seller tells a listing agent that the roof leaks but asks that it not be
disclosed. The agent should:
A) Keep it confidential
B) Disclose it to potential buyers
C) Wait until an offer is made
D) Disclose only if asked
Answer: B) Disclose it to potential buyers
Rationale: Agents must disclose material facts affecting value or desirability,
even if the seller requests secrecy.
9. The type of listing where the broker earns a commission regardless of who
sells the property is:
A) Open listing
B) Exclusive agency listing
C) Exclusive right to sell listing
D) Net listing
Answer: C) Exclusive right to sell listing
Rationale: In an exclusive right to sell, the broker earns a commission no matter
who finds the buyer.
10. The Real Estate Settlement Procedures Act (RESPA) applies to:
A) Commercial loans
B) Residential loans on one-to-four-unit properties
C) Agricultural loans
D) Vacant land
Questions And Correct Answers (Verified Answers)
Plus Rationales 2025/2026 Q&A | Instant Download
1. A real estate salesperson owes fiduciary duties to:
A) The buyer
B) The seller
C) Their employing broker
D) The public
Answer: C) Their employing broker
Rationale: A salesperson is legally employed by a broker, not directly by clients.
Fiduciary duties to clients are owed through the broker.
2. A listing agreement that automatically renews after its expiration date is:
A) An open listing
B) An exclusive agency listing
C) A net listing
D) Void
Answer: D) Void
Rationale: California law requires listing agreements to have definite terms;
automatic renewal clauses are not enforceable.
3. What type of ownership allows two or more people to hold equal shares
with right of survivorship?
A) Tenancy in common
B) Joint tenancy
C) Community property
D) Fee simple absolute
Answer: B) Joint tenancy
Rationale: Joint tenancy includes right of survivorship, meaning the deceased’s
share passes to surviving co-owners.
,4. The California Department of Real Estate (DRE) requires that brokers keep
transaction records for:
A) 1 year
B) 2 years
C) 3 years
D) 5 years
Answer: C) 3 years
Rationale: DRE regulations mandate that brokers retain transaction files for at
least three years from the date of closing.
5. An agent who is authorized to perform certain acts but not all acts for the
principal has:
A) General authority
B) Limited authority
C) Universal authority
D) Implied authority
Answer: B) Limited authority
Rationale: Limited (special) agency allows the agent to perform specific tasks
defined by the principal.
6. Which of the following is considered real property?
A) A trade fixture
B) A mobile home not attached to land
C) Land with attached structures
D) Furniture
Answer: C) Land with attached structures
Rationale: Real property includes land and anything permanently attached to
it, such as buildings.
7. A property manager collects rent and handles repairs for an apartment
building. This relationship is an example of:
A) General agency
B) Special agency
, C) Universal agency
D) Implied agency
Answer: A) General agency
Rationale: General agency allows the agent to handle all matters related to a
particular business or property.
8. A seller tells a listing agent that the roof leaks but asks that it not be
disclosed. The agent should:
A) Keep it confidential
B) Disclose it to potential buyers
C) Wait until an offer is made
D) Disclose only if asked
Answer: B) Disclose it to potential buyers
Rationale: Agents must disclose material facts affecting value or desirability,
even if the seller requests secrecy.
9. The type of listing where the broker earns a commission regardless of who
sells the property is:
A) Open listing
B) Exclusive agency listing
C) Exclusive right to sell listing
D) Net listing
Answer: C) Exclusive right to sell listing
Rationale: In an exclusive right to sell, the broker earns a commission no matter
who finds the buyer.
10. The Real Estate Settlement Procedures Act (RESPA) applies to:
A) Commercial loans
B) Residential loans on one-to-four-unit properties
C) Agricultural loans
D) Vacant land
