QUESTIONS AND CORRECT ANSWER WITH
EXPLANATION LATEST 2025-2026
1.
The California Department of Real Estate is known as:
A. DRE
B. TREC
C. HUD
D. CARB
Answer: A
Rationale: DRE regulates California real estate licensing.
2.
A California salesperson must work under:
A. A licensed broker
B. An attorney
C. A lender
D. An appraiser
Answer: A
Rationale: Salespersons cannot operate independently.
3.
A California real estate salesperson license is valid for:
A. 4 years
B. 2 years
C. 1 year
D. 6 months
Answer: A
Rationale: California licenses renew every 4 years.
,4.
Real property includes:
A. Land and improvements
B. Furniture only
C. Vehicles
D. Stocks
Answer: A
Rationale: Real property includes land and attached items.
5.
Personal property is also called:
A. Chattel
B. Fixture
C. Realty
D. Estate
Answer: A
Rationale: Chattel refers to movable property.
6.
A fixture is:
A. Permanently attached item
B. Personal clothing
C. Cash deposit
D. Temporary furniture
Answer: A
Rationale: Fixtures become part of real property.
7.
A deed transfers:
A. Title ownership
B. Insurance coverage
C. Loan approval
D. Property taxes
, Answer: A
Rationale: Deeds convey ownership rights.
8.
A lien is:
A. Claim against property
B. Lease agreement
C. Insurance policy
D. Commission payment
Answer: A
Rationale: Liens secure payment of debt.
9.
The borrower in a mortgage is:
A. Mortgagor
B. Mortgagee
C. Trustee
D. Beneficiary
Answer: A
Rationale: Borrower gives mortgage security.
10.
The lender in a mortgage is:
A. Mortgagee
B. Mortgagor
C. Trustor
D. Lessee
Answer: A
Rationale: Lender receives mortgage interest.
11.