California Salesperson (DRE) practice questions and answers 2026. Tap an option to test yourself — you'll see the correct answer and a plain-English explanation for every question. Free, no login.
Q11Which type of encumbrance gives a creditor the right to have a specific property sold to satisfy a debt?
✓ Correct answer: C. Lien
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.
Q12Under California law, the homestead exemption primarily protects:
✓ Correct answer: D. A portion of home equity from certain creditors' claims
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.
Q13A mechanic's lien in California must generally be filed within how many days after completion of a construction project?
✓ Correct answer: A. 90 days
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).
Q14Which form of co-ownership allows each co-owner to hold an unequal, undivided interest and does NOT include the right of survivorship?
✓ Correct answer: B. Tenancy in common
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.
Q15A restriction in a deed that prohibits the property from being used for commercial purposes is an example of a:
✓ Correct answer: C. Deed restriction (private restriction)
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.
Q16Under California law, when a joint tenant dies, their interest:
✓ Correct answer: D. Passes automatically to the surviving joint tenants
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.
Q17The fiduciary relationship in which one party (the agent) is authorized to act on behalf of another party (the principal) is called:
✓ Correct answer: A. An agency relationship
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.
Q18A California listing agent owes which duties to the BUYER in a transaction?
✓ Correct answer: B. Honesty and fair dealing, and disclosure of known material facts
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).
Q19When is a California real estate agent required to provide the Agency Disclosure form to a buyer?
✓ Correct answer: C. As soon as practicable before the buyer executes an offer to purchase
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.
Q20A licensee represents both the buyer and the seller in the same transaction without disclosing this to either party. This is called:
✓ Correct answer: D. Undisclosed dual agency
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.
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Theory