TheoryCalifornia Salesperson (DRE)
Practice Test
110+ DRE-style practice questions on contracts, finance and law so you pass the California salesperson exam.
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California Salesperson (DRE) exam — full Q&A walkthrough
Every question read aloud with the answer explained. Play it on your commute, then test yourself.
30 free California Salesperson (DRE) questions
Sampled across every topic area — not just the first page. Try them as a quiz or flip them as flashcards.
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California Salesperson (DRE)
When two or more people hold title to property with equal, undivided interests and the right of survivorship, this form of ownership is called:
Correct — A. Joint tenancy requires four unities (time, title, interest, possession) and includes the right of survivorship, meaning a deceased co-owner's share passes automatically to the surviving co-owners. -
California Salesperson (DRE)
A husband and wife purchase a home in California during their marriage using community funds. This property is most likely held as:
Correct — B. In California, property acquired by spouses during marriage using community funds is presumed to be community property. Each spouse owns an equal undivided half interest. -
California Salesperson (DRE)
Which type of estate grants the holder rights to property only for the duration of a specified person's life?
Correct — C. A life estate grants ownership rights measured by the lifetime of a designated person (often the life tenant). The property reverts to the remainderman or grantor upon the measuring life's end. -
California Salesperson (DRE)
A lien placed on a property because the owner failed to pay property taxes is an example of a:
Correct — D. A property tax lien is involuntary (imposed by law without the owner's consent) and specific (attached to a particular parcel). Voluntary liens, like mortgages, are created by the owner's action. -
California Salesperson (DRE)
An easement that benefits a specific parcel of land and transfers with the property when it is sold is called an easement:
Correct — A. An easement appurtenant benefits a dominant tenement and runs with the land, meaning it transfers automatically when either the dominant or servient parcel is sold. -
California Salesperson (DRE)
Under California's Subdivision Map Act, which document must be filed and approved before a subdivider can sell or lease lots in a new subdivision?
Correct — B. The Subdivision Map Act requires approval of a tentative map and then a final map by the local government before lots can be recorded and sold. The DRE's public report (under the Subdivided Lands Act) is a separate requirement. -
California Salesperson (DRE)
A property owner grants a neighbor permission to cross their land. The neighbor uses the path continuously, openly, and hostilely for the prescriptive period. This may create an easement:
Correct — C. An easement by prescription is acquired through open, notorious, continuous, hostile, and adverse use of another's land for the statutory period (5 years in California), similar to adverse possession but without ownership. -
California Salesperson (DRE)
Which of the following best describes a fee simple defeasible estate?
Correct — D. A fee simple defeasible (or conditional fee) is a full ownership estate that can be defeated and title returned to the grantor if a specified condition is breached or occurs. -
California Salesperson (DRE)
Zoning laws in California are primarily enacted by:
Correct — A. Zoning is a local government power exercised by cities and counties under their police power to regulate land use. The state sets planning guidelines but zoning ordinances are local. -
California Salesperson (DRE)
A property owner seeks permission to use their residentially zoned land for a small day-care center. They would most likely apply for a:
Correct — B. A conditional use permit (special use permit) allows a land use that is not permitted as-of-right under current zoning but may be allowed subject to conditions. A variance allows deviation from dimensional standards. -
California Salesperson (DRE)
Which type of encumbrance gives a creditor the right to have a specific property sold to satisfy a debt?
Correct — C. A lien is a financial encumbrance that gives a creditor a security interest in real property. Types include mortgage/deed of trust liens, tax liens, mechanic's liens, and judgment liens. -
California Salesperson (DRE)
Under California law, the homestead exemption primarily protects:
Correct — D. California's homestead exemption protects a specified amount of home equity (amounts vary) from forced sale to satisfy unsecured creditors, not secured lenders like mortgage holders. -
California Salesperson (DRE)
A mechanic's lien in California must generally be filed within how many days after completion of a construction project?
Correct — A. In California, a direct contractor (prime contractor) must file a mechanic's lien within 90 days after completion of work. Subcontractors and suppliers have shorter deadlines (60 days for most). -
California Salesperson (DRE)
Which form of co-ownership allows each co-owner to hold an unequal, undivided interest and does NOT include the right of survivorship?
Correct — B. Tenancy in common allows unequal ownership shares, and each co-owner's interest passes to their heirs upon death rather than to surviving co-owners. There is no right of survivorship. -
California Salesperson (DRE)
A restriction in a deed that prohibits the property from being used for commercial purposes is an example of a:
Correct — C. A deed restriction (also called a restrictive covenant or CC&R) is a private limitation placed on property use in a deed. It runs with the land and binds future owners. -
California Salesperson (DRE)
Under California law, when a joint tenant dies, their interest:
Correct — D. The defining characteristic of joint tenancy is the right of survivorship: a deceased joint tenant's share passes immediately to the surviving co-owner(s) by operation of law, bypassing probate. -
California Salesperson (DRE)
The fiduciary relationship in which one party (the agent) is authorized to act on behalf of another party (the principal) is called:
Correct — A. Agency is a fiduciary relationship where one party (agent) acts on behalf of and subject to the control of another (principal). Agents owe the principal duties of loyalty, confidentiality, disclosure, obedience, reasonable care, and accountability. -
California Salesperson (DRE)
A California listing agent owes which duties to the BUYER in a transaction?
Correct — B. Under California law, a listing agent owes the seller full fiduciary duties but owes the buyer honest dealing and disclosure of material facts affecting the property's value or desirability (Civil Code 2079). -
California Salesperson (DRE)
When is a California real estate agent required to provide the Agency Disclosure form to a buyer?
Correct — C. California Civil Code 2079.14 requires agents to provide the AD form (Agency Disclosure) to a buyer as soon as practicable before the buyer signs the purchase offer. -
California Salesperson (DRE)
A licensee represents both the buyer and the seller in the same transaction without disclosing this to either party. This is called:
Correct — D. Undisclosed dual agency is illegal in California. If an agent represents both parties, they must disclose this to both and obtain written consent. Undisclosed dual agency breaches fiduciary duty and can result in rescission and loss of commission. -
California Salesperson (DRE)
Under an exclusive right-to-sell listing, the listing broker earns a commission if the property sells:
Correct — A. An exclusive right-to-sell listing requires payment of commission to the broker regardless of who produces the buyer, even if the seller finds the buyer themselves. It is the most protection for the broker. -
California Salesperson (DRE)
An agent who acts for both the buyer and the seller in the same transaction, with both parties' written consent, is acting as:
Correct — B. California allows dual agency when both the buyer and seller give written informed consent. A dual agent must balance the interests of both parties and cannot reveal confidential information of either to the other. -
California Salesperson (DRE)
The agency relationship created when a seller lists property with a real estate broker is most accurately described as:
Correct — C. A listing creates a special (limited) agency: the broker is authorized to perform specific acts (find a buyer, present offers) but cannot bind the principal to a contract. General agency would give broader authority. -
California Salesperson (DRE)
Which acronym is commonly used to remember the fiduciary duties an agent owes their principal?
Correct — D. OLDCAR stands for Obedience, Loyalty, Disclosure, Confidentiality, Accounting, and Reasonable Care — the six core fiduciary duties a real estate agent owes their principal. -
California Salesperson (DRE)
A buyer's agent who is hired under a written buyer-broker agreement owes fiduciary duties to:
Correct — A. A buyer's agent (buyer's representative) represents only the buyer's interests and owes full fiduciary duties to the buyer. They must put the buyer's interests first. -
California Salesperson (DRE)
In California, an agent's duty to disclose material facts to the buyer:
Correct — B. An agent's duty to disclose known material facts affecting the value or desirability of the property cannot be waived. This duty exists even if the seller tries to prevent disclosure. -
California Salesperson (DRE)
A listing broker who offers a co-op commission to selling brokers in the MLS is likely appointing them as:
Correct — C. When a listing broker offers cooperation through the MLS, cooperating brokers may act as subagents of the seller (representing the seller's interests) unless they have a buyer representation agreement. -
California Salesperson (DRE)
The Agency Confirmation section of the California Residential Purchase Agreement (RPA-CA) must be signed by:
Correct — D. California law requires that all parties confirm the agency relationships in writing. The RPA-CA's Agency Confirmation section is signed by the listing agent, selling agent (if different), buyer, and seller. -
California Salesperson (DRE)
When a real estate agent tells a prospective buyer that a property is in a good neighborhood without actually knowing this to be true, this may constitute:
Correct — A. Negligent or fraudulent misrepresentation occurs when an agent states false material facts. While puffing involves vague praise ('great neighborhood'), stating facts the agent doesn't know to be true as facts can be misrepresentation. -
California Salesperson (DRE)
Under California's vicarious liability rules, a broker is responsible for the actions of:
Correct — B. A supervising broker in California is vicariously liable for the acts of licensed salespersons and broker-associates who work under their license, whether employees or independent contractors.
California Salesperson (DRE) sample questions
Tap any question below to reveal the answer and a plain-English explanation.
Valuation The appraisal principle that states value is determined by what a property can be replaced with a similar one of equivalent utility is the principle of:
A. Substitution ✓
B. Contribution
C. Anticipation
D. Conformity
Correct — A. The principle of substitution holds that a buyer will pay no more for a property than the cost of acquiring an equally desirable substitute. This principle underlies all three appraisal approaches.
Financing In California, the most common security instrument used to secure a real estate loan is a:
A. Trust deed (deed of trust) ✓
B. Mortgage
C. Land contract
D. Promissory note alone
Correct — A. California uses the trust deed (deed of trust) as its primary real estate security instrument. It involves three parties: the trustor (borrower), trustee (holds title), and beneficiary (lender). It allows nonjudicial foreclosure.
Valuation Which appraisal approach is most appropriate for valuing income-producing properties?
A. Cost approach
B. Sales comparison approach ✓
C. Income capitalization approach
D. Gross rent multiplier approach only
Correct — B. The income approach (capitalization approach) estimates value based on the income a property produces. It is most applicable for income-producing commercial, industrial, and multi-family residential properties.
Financing Which of the following best describes a conventional loan?
A. A loan insured by the FHA
B. A loan guaranteed by the VA ✓
C. A loan that is not government-insured or government-guaranteed
D. A loan from the California Housing Finance Agency only
Correct — B. A conventional loan is a mortgage not insured or guaranteed by a government agency (FHA, VA, USDA). Conventional loans may be conforming (meeting Fannie Mae/Freddie Mac standards) or non-conforming (jumbo loans).
About the California Salesperson (DRE) test
Get ready for your California Real Estate Salesperson license exam, administered by the California Department of Real Estate (DRE). This app covers the full range of topics tested on the salesperson exam so you can walk in prepared and confident.
What you get
- 140+ original practice questions covering property ownership, transfer of title, valuation and the market, financing, real estate contracts, the law of agency, fair housing and disclosure, and real estate practice and math.
- Plain-English explanations for every answer so you understand the reasoning, not just the answer.
- Timed mock exams that mirror the real test format and pass mark.
- Study by topic to focus on your weak spots.
- Available in English, Spanish, Chinese, and Filipino.
You will be tested on
- Property ownership, agency and disclosure
- Contracts, financing and escrow
- Real estate law and fair-housing rules
- Valuation, math and transaction practice
How TheoryPractice helps you pass
- Real exam-style questions with instant, detailed explanations
- Full timed mock exams that mirror the real test format
- Flashcards & quiz modes from the same question bank
- Progress tracking so you know exactly when you're ready
Topics in this question bank
Property ownership, agency and disclosure
Contracts, financing and escrow
Real estate law and fair-housing rules
Valuation, math and transaction practice
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