CA DRE Practice Exam Questions +
Verified Answers 100% correct, Update
2026
When Atkins is selling his trade fixtures, which instrument must he
execute? -
correct answer ✅Bill of Sale
- Because trade fixtures are personal property, a bill of sale would
be the proper instrument to use to convey the title. A chattel real
describes a lease. A warranty deed conveys title to real property.
The economic life of an improvement is that period of time -
correct answer ✅between completion and the disappearance of
its capacity to produce net income above that of the land.
-Economic life is the number of years that improvements are
expected to earn rents that exceed costs of operation.
A five-unit residential apartment building was built in 1975. The
seller was aware that portions of the improvements were painted
with lead-based paint. The seller was careful to disclose this to the
listing broker at the time the seller signed the listing agreement.
After the close of escrow, the buyer decided to manage the newly
purchased apartment building without the assistance of a real
estate licensee. There were already tenants living in two of the
,CA DRE Practice Exam Questions +
Verified Answers 100% correct, Update
2026
units, and the buyer quickly found and signed three new tenants to
fill the apartment building. Legally, who had to receive a Transfer
Disclosure Statement?
A)
The buyer
B)
Neither of these
C)
The three new tenants
D)
Both of these -
correct answer ✅Neither of these
- The Transfer Disclosure Statement (TDS) is required for the sale of
residential property of one-to-four units. The TDS is completed by
the seller (with certain exceptions) and any agents involved in the
transaction. It must be given to the prospective buyer, as soon as
practicable. However, the real estate described in this test question
is a five-unit apartment building. Thus, the TDS would not be a legal
,CA DRE Practice Exam Questions +
Verified Answers 100% correct, Update
2026
requirement for this sale. Note: The information about lead-based
paint is here to distract you from the actual question being tested.
The expansion and contraction of available space to meet demand
is stimulated MOST by market fluctuations of -
correct answer ✅prices and rents
- If prices to build are relatively low and rents are high, builders will
expand the available space to meet demand.
Mr. and Mrs. Jenkins own a home worth $533,000 on which there is
a $519,000 loan. Mrs. Jenkins alone filed a Declaration of
Homestead. If a judgment lien were filed against them, -
correct answer ✅the home would not be sold because there is
insufficient equity over and above the exemption and the secured
lien to satisfy the creditor.
-The property is held by both spouses. She may file a homestead
exemption of $75,000. The property would not be sold because the
$519,000 loan and the $75,000 exemption exceed the $533,000
market value of the property.
, CA DRE Practice Exam Questions +
Verified Answers 100% correct, Update
2026
A real property sales contract is defined as an agreement wherein
one party agrees to convey title to another party upon the
satisfaction of specified conditions set forth in the contract and that
-
correct answer ✅does not require conveyance of title within one
year from date of formation of the contract.
- "Does not require conveyance of title within one year from date of
formation of the contract" completes the sentence in the question.
The two parts constitute a quotation from section 2985 of the Civil
Code, which defines a land contract.
An individual selling a piece of property wanted to be sure that she
would be relieved of primary liability for the existing loan on the
property. Assuming that the existing loan was transferred to the
buyer, which of the following would be MOST correct? -
correct answer ✅The buyer is to assume the existing loan
Points are NOT charged on which type of home loans? -
correct answer ✅California department of Veterans affairs
Verified Answers 100% correct, Update
2026
When Atkins is selling his trade fixtures, which instrument must he
execute? -
correct answer ✅Bill of Sale
- Because trade fixtures are personal property, a bill of sale would
be the proper instrument to use to convey the title. A chattel real
describes a lease. A warranty deed conveys title to real property.
The economic life of an improvement is that period of time -
correct answer ✅between completion and the disappearance of
its capacity to produce net income above that of the land.
-Economic life is the number of years that improvements are
expected to earn rents that exceed costs of operation.
A five-unit residential apartment building was built in 1975. The
seller was aware that portions of the improvements were painted
with lead-based paint. The seller was careful to disclose this to the
listing broker at the time the seller signed the listing agreement.
After the close of escrow, the buyer decided to manage the newly
purchased apartment building without the assistance of a real
estate licensee. There were already tenants living in two of the
,CA DRE Practice Exam Questions +
Verified Answers 100% correct, Update
2026
units, and the buyer quickly found and signed three new tenants to
fill the apartment building. Legally, who had to receive a Transfer
Disclosure Statement?
A)
The buyer
B)
Neither of these
C)
The three new tenants
D)
Both of these -
correct answer ✅Neither of these
- The Transfer Disclosure Statement (TDS) is required for the sale of
residential property of one-to-four units. The TDS is completed by
the seller (with certain exceptions) and any agents involved in the
transaction. It must be given to the prospective buyer, as soon as
practicable. However, the real estate described in this test question
is a five-unit apartment building. Thus, the TDS would not be a legal
,CA DRE Practice Exam Questions +
Verified Answers 100% correct, Update
2026
requirement for this sale. Note: The information about lead-based
paint is here to distract you from the actual question being tested.
The expansion and contraction of available space to meet demand
is stimulated MOST by market fluctuations of -
correct answer ✅prices and rents
- If prices to build are relatively low and rents are high, builders will
expand the available space to meet demand.
Mr. and Mrs. Jenkins own a home worth $533,000 on which there is
a $519,000 loan. Mrs. Jenkins alone filed a Declaration of
Homestead. If a judgment lien were filed against them, -
correct answer ✅the home would not be sold because there is
insufficient equity over and above the exemption and the secured
lien to satisfy the creditor.
-The property is held by both spouses. She may file a homestead
exemption of $75,000. The property would not be sold because the
$519,000 loan and the $75,000 exemption exceed the $533,000
market value of the property.
, CA DRE Practice Exam Questions +
Verified Answers 100% correct, Update
2026
A real property sales contract is defined as an agreement wherein
one party agrees to convey title to another party upon the
satisfaction of specified conditions set forth in the contract and that
-
correct answer ✅does not require conveyance of title within one
year from date of formation of the contract.
- "Does not require conveyance of title within one year from date of
formation of the contract" completes the sentence in the question.
The two parts constitute a quotation from section 2985 of the Civil
Code, which defines a land contract.
An individual selling a piece of property wanted to be sure that she
would be relieved of primary liability for the existing loan on the
property. Assuming that the existing loan was transferred to the
buyer, which of the following would be MOST correct? -
correct answer ✅The buyer is to assume the existing loan
Points are NOT charged on which type of home loans? -
correct answer ✅California department of Veterans affairs
