DRE EXAM A QUESTIONS WITH CORRECT
ANSWERS 2026-2027
1. 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
2. When using their closing statement, escrow would debit the seller of income property for w
hich of the following items: - CORRECT ANSWER -Prepaid rent
3. 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
4. Which of the following loans would most likely be made without requiring a down payment
from the borrower: - CORRECT ANSWER -VA loan
5. 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
6. If a salesperson wishes to advertise his or her services, the advertisement must include: -
CORRECT ANSWER -The brokers name
7. 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
8. 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
, 25. The number of acres in a tract of land that is 1/2 mile square is: - CORRECT ANSWER -160
26. Which of the following statements is incorrect with regard to an "in-house" sale? -
CORRECT ANSWER -The listing broker can be the agent of the buyer only
27. A policy of title insurance requires a careful search of the public records. The public record
s covered we found at: - CORRECT ANSWER -All of the above
28. A real estate broker advertises that she will give a microwave oven valued a $500 to anyon
e who purchases a property listed with her office. This type of advertisement is: -
CORRECT ANSWER -Legal if proper disclosures are made to all parties of interest
29. The broker who represented only in the seller in a transaction has a fiduciary responsibility
to the seller when dealing with a third party, the broker: - CORRECT ANSWER -
Must treat the third party fairly, and honestly
30. Which of the following state agencies is empowered to prevent acts of discrimination in ho
using accommodations in California because of race, color, religion, national origin or ancestry
? - CORRECT ANSWER -Department of fair employment and housing
31. The subdivision map act requires - CORRECT ANSWER -
The subdivider to prepare a tentative map and file it with city or country
32. A voidable contract will not become void until it is: - CORRECT ANSWER -Rescinded
33. Which of the following notices could be important to the filing of a mechanics lien? -
CORRECT ANSWER -All of the above
ANSWERS 2026-2027
1. 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
2. When using their closing statement, escrow would debit the seller of income property for w
hich of the following items: - CORRECT ANSWER -Prepaid rent
3. 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
4. Which of the following loans would most likely be made without requiring a down payment
from the borrower: - CORRECT ANSWER -VA loan
5. 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
6. If a salesperson wishes to advertise his or her services, the advertisement must include: -
CORRECT ANSWER -The brokers name
7. 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
8. 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
, 25. The number of acres in a tract of land that is 1/2 mile square is: - CORRECT ANSWER -160
26. Which of the following statements is incorrect with regard to an "in-house" sale? -
CORRECT ANSWER -The listing broker can be the agent of the buyer only
27. A policy of title insurance requires a careful search of the public records. The public record
s covered we found at: - CORRECT ANSWER -All of the above
28. A real estate broker advertises that she will give a microwave oven valued a $500 to anyon
e who purchases a property listed with her office. This type of advertisement is: -
CORRECT ANSWER -Legal if proper disclosures are made to all parties of interest
29. The broker who represented only in the seller in a transaction has a fiduciary responsibility
to the seller when dealing with a third party, the broker: - CORRECT ANSWER -
Must treat the third party fairly, and honestly
30. Which of the following state agencies is empowered to prevent acts of discrimination in ho
using accommodations in California because of race, color, religion, national origin or ancestry
? - CORRECT ANSWER -Department of fair employment and housing
31. The subdivision map act requires - CORRECT ANSWER -
The subdivider to prepare a tentative map and file it with city or country
32. A voidable contract will not become void until it is: - CORRECT ANSWER -Rescinded
33. Which of the following notices could be important to the filing of a mechanics lien? -
CORRECT ANSWER -All of the above
