California Real Estate License Exam Questions
And Correct Answer with Rational (100%
verified answer) Q & A 2026 /
Instant download PDF
1.
Which type of ownership gives a surviving co-owner automatic rights to the
deceased owner’s share?
A. Tenancy in common
B. Joint tenancy
C. Community property without survivorship
D. Severalty
Correct Answer: B. Joint tenancy
Rationale: Joint tenancy includes the right of survivorship, meaning ownership
automatically transfers to surviving co-owners upon death.
2.
What is the primary purpose of the California Department of Real Estate (DRE)?
A. Build residential homes
B. Regulate real estate licensees
C. Approve mortgage loans
D. Conduct property appraisals
,Correct Answer: B. Regulate real estate licensees
Rationale: The DRE oversees licensing, education, and enforcement of California
real estate laws.
3.
Which contract is required to be in writing to be enforceable under the Statute
of Frauds?
A. Month-to-month lease
B. Listing agreement
C. Oral commission agreement
D. Casual verbal promise
Correct Answer: B. Listing agreement
Rationale: Listing agreements authorize brokers to act on behalf of sellers and
must be written to be enforceable.
4.
Which appraisal principle states that maximum value occurs when land use is
most profitable and legally permissible?
A. Substitution
B. Regression
C. Highest and best use
D. Contribution
Correct Answer: C. Highest and best use
Rationale: Highest and best use refers to the most productive legal use of a
property that yields the greatest value.
5.
,What is the minimum age requirement for a California real estate salesperson
license?
A. 16 years old
B. 18 years old
C. 19 years old
D. 21 years old
Correct Answer: B. 18 years old
Rationale: Applicants must be at least 18 years old to qualify for a California real
estate license.
6.
A valid contract requires all of the following EXCEPT:
A. Competent parties
B. Mutual consent
C. Illegal purpose
D. Consideration
Correct Answer: C. Illegal purpose
Rationale: Contracts involving illegal purposes are void and unenforceable.
7.
Which type of deed provides the greatest protection to the buyer?
A. Grant deed
B. Quitclaim deed
C. Warranty deed
D. Tax deed
Correct Answer: C. Warranty deed
Rationale: A warranty deed offers the highest level of protection by guaranteeing
clear title and defending against claims.
, 8.
What does “escheat” mean in real estate law?
A. Property transfer by will
B. Government taking ownership when a person dies without heirs
C. Foreclosure due to unpaid taxes
D. Property gifted to a charity
Correct Answer: B. Government taking ownership when a person dies without
heirs
Rationale: Escheat occurs when property reverts to the state because no legal
heirs exist.
9.
Which loan feature allows the lender to demand full repayment if property
ownership changes?
A. Defeasance clause
B. Alienation clause
C. Habendum clause
D. Acceleration clause
Correct Answer: B. Alienation clause
Rationale: The alienation clause, also called a due-on-sale clause, protects lenders
when ownership transfers.
10.
Which type of agency relationship involves one broker representing both buyer
and seller with consent?
And Correct Answer with Rational (100%
verified answer) Q & A 2026 /
Instant download PDF
1.
Which type of ownership gives a surviving co-owner automatic rights to the
deceased owner’s share?
A. Tenancy in common
B. Joint tenancy
C. Community property without survivorship
D. Severalty
Correct Answer: B. Joint tenancy
Rationale: Joint tenancy includes the right of survivorship, meaning ownership
automatically transfers to surviving co-owners upon death.
2.
What is the primary purpose of the California Department of Real Estate (DRE)?
A. Build residential homes
B. Regulate real estate licensees
C. Approve mortgage loans
D. Conduct property appraisals
,Correct Answer: B. Regulate real estate licensees
Rationale: The DRE oversees licensing, education, and enforcement of California
real estate laws.
3.
Which contract is required to be in writing to be enforceable under the Statute
of Frauds?
A. Month-to-month lease
B. Listing agreement
C. Oral commission agreement
D. Casual verbal promise
Correct Answer: B. Listing agreement
Rationale: Listing agreements authorize brokers to act on behalf of sellers and
must be written to be enforceable.
4.
Which appraisal principle states that maximum value occurs when land use is
most profitable and legally permissible?
A. Substitution
B. Regression
C. Highest and best use
D. Contribution
Correct Answer: C. Highest and best use
Rationale: Highest and best use refers to the most productive legal use of a
property that yields the greatest value.
5.
,What is the minimum age requirement for a California real estate salesperson
license?
A. 16 years old
B. 18 years old
C. 19 years old
D. 21 years old
Correct Answer: B. 18 years old
Rationale: Applicants must be at least 18 years old to qualify for a California real
estate license.
6.
A valid contract requires all of the following EXCEPT:
A. Competent parties
B. Mutual consent
C. Illegal purpose
D. Consideration
Correct Answer: C. Illegal purpose
Rationale: Contracts involving illegal purposes are void and unenforceable.
7.
Which type of deed provides the greatest protection to the buyer?
A. Grant deed
B. Quitclaim deed
C. Warranty deed
D. Tax deed
Correct Answer: C. Warranty deed
Rationale: A warranty deed offers the highest level of protection by guaranteeing
clear title and defending against claims.
, 8.
What does “escheat” mean in real estate law?
A. Property transfer by will
B. Government taking ownership when a person dies without heirs
C. Foreclosure due to unpaid taxes
D. Property gifted to a charity
Correct Answer: B. Government taking ownership when a person dies without
heirs
Rationale: Escheat occurs when property reverts to the state because no legal
heirs exist.
9.
Which loan feature allows the lender to demand full repayment if property
ownership changes?
A. Defeasance clause
B. Alienation clause
C. Habendum clause
D. Acceleration clause
Correct Answer: B. Alienation clause
Rationale: The alienation clause, also called a due-on-sale clause, protects lenders
when ownership transfers.
10.
Which type of agency relationship involves one broker representing both buyer
and seller with consent?
