California Real Estate Salesperson Mixed Practice Test: 50 Questions
This 50-question mixed practice test samples all seven major subject areas from the California Department of Real Estate (DRE) salesperson exam outline. It is shorter than the real 150-question exam, but it helps you practice switching between topics.
Disclaimer: Not affiliated with PSI, Pearson VUE, California DRE, NAR, or any state real estate commission. These are original study questions, not actual, recalled, leaked, or official DRE exam questions.
Topic Mix
| DRE Topic Area | Approximate DRE Weight | Questions |
|---|---|---|
| Practice of Real Estate and Disclosures | 25% | 12 |
| Laws of Agency and Fiduciary Duties | 17% | 9 |
| Property Ownership and Land Use Controls | 15% | 8 |
| Property Valuation and Financial Analysis | 14% | 7 |
| Contracts | 12% | 6 |
| Financing | 9% | 4 |
| Transfer of Property | 8% | 4 |
| Total | 100% | 50 |
Questions
1. Material Facts
A listing agent knows about repeated water intrusion in a basement. The seller says not to mention it unless asked. What should the agent do?
A. Stay silent B. Disclose the known material fact C. Wait until after closing D. Tell only the lender
Answer: B
Explanation: Known material facts affecting value or desirability should be disclosed.
2. Agency Principal
A buyer signs a buyer representation agreement with a broker. The buyer is the:
A. Principal B. Trustee C. Escrow holder D. Subagent
Answer: A
Explanation: In buyer representation, the buyer is the principal/client.
3. Fixture
Which item is most likely a fixture?
A. Sofa B. Moving box C. Built-in range D. Loose area rug
Answer: C
Explanation: Attachment and adaptation make the built-in range most likely a fixture.
4. Market Value
Market value is best described as:
A. Original cost B. Most probable price under normal open-market conditions C. Asking price only D. Property tax amount
Answer: B
Explanation: Market value is an opinion of probable price under typical market conditions.
5. Counteroffer
A seller changes the buyer's offered closing date before signing. This is usually:
A. Acceptance B. Counteroffer C. Recording D. Escrow closing
Answer: B
Explanation: A material change generally creates a counteroffer.
6. Promissory Note
The promissory note is:
A. The borrower's promise to repay B. The title policy C. The deed restriction D. The zoning map
Answer: A
Explanation: The note is the debt promise.
7. Deed
A deed is primarily used to:
A. Transfer an interest in real property B. Set market value C. Create a loan application D. Inspect property condition
Answer: A
Explanation: A deed conveys real property interests.
8. Fair Housing Advertising
Which ad phrase is most concerning?
A. "Near transit" B. "Updated kitchen" C. "No children preferred" D. "Two bedrooms"
Answer: C
Explanation: Occupancy preferences tied to protected classes can create fair housing risk.
9. Loyalty
Which fiduciary duty requires placing the client's lawful interests ahead of the agent's?
A. Loyalty B. Recording C. Proration D. Escheat
Answer: A
Explanation: Loyalty requires avoiding undisclosed conflicts and self-dealing.
10. Easement
An easement generally gives:
A. A right to use another person's land for a specific purpose B. Full ownership C. Loan approval D. A tax exemption
Answer: A
Explanation: Easements are nonpossessory use rights.
11. Sales Comparison
The sales comparison approach relies mainly on:
A. Comparable sales B. Loan points C. Escrow fees D. Deed wording
Answer: A
Explanation: It estimates value by comparing similar sold properties.
12. Listing Agreement
A listing agreement primarily:
A. Authorizes brokerage services B. Transfers title C. Guarantees financing D. Replaces disclosures
Answer: A
Explanation: It authorizes brokerage activity and sets listing terms.
13. Escrow
Escrow is:
A. A neutral process for holding and delivering funds/documents under instructions B. A valuation method C. A fixture test D. A zoning appeal
Answer: A
Explanation: Escrow follows written closing instructions.
14. TDS Role
For a required residential Transfer Disclosure Statement, a licensee's role includes:
A. Guaranteeing condition B. Reasonably competent visual inspection and disclosure C. Replacing seller disclosures D. Approving the buyer's loan
Answer: B
Explanation: The licensee is not a guarantor but has visual inspection/disclosure duties.
15. Confidentiality
A buyer tells the agent the maximum price the buyer can pay. The agent should generally:
A. Tell the seller B. Keep it confidential unless authorized or legally required C. Put it in advertising D. Tell the county recorder
Answer: B
Explanation: Maximum willingness to pay is confidential negotiation information.
16. Fee Simple
Fee simple is generally:
A. The broadest private ownership estate B. A deed of trust C. A lease for one month D. A title report
Answer: A
Explanation: Fee simple is the most complete private estate.
17. Income Approach
The income approach is especially useful for:
A. Income-producing property B. Personal property only C. Deed recording D. Agency disclosure
Answer: A
Explanation: It estimates value from income and return expectations.
18. Financing Contingency
A financing contingency may protect the buyer if:
A. Loan approval is not obtained as agreed B. The seller dislikes paint color C. The deed already recorded D. The broker changes offices
Answer: A
Explanation: It is a contract condition tied to financing.
19. Deed of Trust
A deed of trust commonly:
A. Secures repayment of a loan with real property B. Conducts a home inspection C. Sets appraised value D. Creates a listing
Answer: A
Explanation: It is a security instrument.
20. Recording
Recording a deed gives:
A. Public notice B. Guaranteed property condition C. A lower interest rate D. Automatic agency
Answer: A
Explanation: Recording gives constructive notice of the recorded interest.
21. Trust Funds
A salesperson receives an earnest money check. The safest step is:
A. Personal deposit B. Follow broker trust fund procedures promptly C. Hold it at home D. Use it for repairs
Answer: B
Explanation: Trust funds must be handled through proper broker procedures.
22. Dual Agency
Dual agency may occur when:
A. One broker represents both buyer and seller B. Two buyers make offers C. A seller owns two homes D. A lender orders two appraisals
Answer: A
Explanation: Dual agency involves representation of both sides.
23. Tenancy in Common
A tenant in common's interest generally:
A. Can pass through the owner's estate B. Always disappears at death C. Always passes by survivorship D. Is personal property only
Answer: A
Explanation: Tenancy in common has no automatic survivorship between co-owners.
24. Depreciation
In appraisal, depreciation means:
A. Loss in value from any cause B. Increase in demand C. Down payment D. Title exception
Answer: A
Explanation: Depreciation can be physical, functional, or external.
25. Option
An option gives the holder:
A. Right, but not obligation, to buy under stated terms B. Immediate title C. Guaranteed financing D. Zoning approval
Answer: A
Explanation: An option is a contractual right to buy if exercised properly.
26. Grantor
The grantor in a deed:
A. Transfers the interest B. Receives the interest C. Orders the appraisal D. Issues the loan
Answer: A
Explanation: Grantor conveys; grantee receives.
27. Misleading Advertising
A salesperson ad hides the broker identity and appears independent. The main issue is:
A. Misleading advertising B. Automatic deed cancellation C. Escrow proration D. Appraisal depreciation
Answer: A
Explanation: Advertising should not mislead consumers about brokerage identity.
28. Unlawful Instructions
A seller instructs an agent to reject buyers from a protected group. The agent should:
A. Refuse the unlawful instruction B. Follow it if written C. Follow it for cash buyers only D. Ask escrow to enforce it
Answer: A
Explanation: Obedience applies only to lawful instructions.
29. Police Power
Zoning is usually an example of:
A. Police power B. Escheat only C. Voluntary lien D. Subagency
Answer: A
Explanation: Police power regulates land use for public welfare.
30. Capitalization
NOI is $60,000 and the cap rate is 6%. Value is:
A. $100,000 B. $360,000 C. $1,000,000 D. $6,000,000
Answer: C
Explanation: Value = NOI / rate = $60,000 / 0.06 = $1,000,000.
31. Liquidated Damages
A liquidated damages clause generally:
A. Sets agreed damages for a specified breach B. Transfers title automatically C. Removes deadlines D. Replaces title insurance
Answer: A
Explanation: It addresses damages if a breach occurs, subject to legal rules.
32. Loan-to-Value
A buyer borrows $360,000 on a $450,000 purchase. LTV is:
A. 20% B. 50% C. 80% D. 125%
Answer: C
Explanation: $360,000 / $450,000 = 80%.
33. Title Insurance
Title insurance protects mainly against:
A. Covered title defects or risks B. Fire after closing C. Buyer job loss D. Low appraisal in every case
Answer: A
Explanation: It covers title risks under policy terms.
34. Natural Hazard Disclosure
Natural Hazard Disclosure is tied to:
A. Mapped hazard zones B. Interest rates C. Commission splits D. Contract consideration only
Answer: A
Explanation: NHD covers mapped natural hazard areas.
35. Accountability
Handling client money most directly involves:
A. Accountability B. Escheat C. Appurtenance D. Depreciation
Answer: A
Explanation: Accountability requires proper care and accounting for entrusted funds.
36. Legal Description
A legal description:
A. Precisely identifies land in legal documents B. Guarantees loan approval C. Replaces the deed D. Sets commission
Answer: A
Explanation: It identifies the property more precisely than a street address alone.
37. GRM
A property sells for $600,000 and monthly rent is $3,000. Monthly GRM is:
A. 20 B. 100 C. 200 D. 600
Answer: C
Explanation: $600,000 / $3,000 = 200.
38. Consideration
Consideration is:
A. Something of value exchanged B. A recorded deed only C. A zoning map D. An appraisal form
Answer: A
Explanation: Consideration is the bargained-for exchange.
39. Discount Point
One point on a $250,000 loan is:
A. $250 B. $2,500 C. $25,000 D. $250,000
Answer: B
Explanation: One point is 1% of the loan amount.
40. Proration
Escrow proration means:
A. Dividing expenses or income as of closing B. Creating joint tenancy C. Setting market value D. Canceling a deed
Answer: A
Explanation: Prorations allocate items such as taxes, rent, or dues between parties.
41. Broker Supervision
A California salesperson performs licensed acts under:
A. A responsible broker B. The county recorder C. The title insurer only D. The buyer's lender only
Answer: A
Explanation: Salespersons act through broker supervision.
42. Third-Party Honesty
An agent represents the seller. To an unrepresented buyer, the agent still must:
A. Be honest and disclose required material facts B. Hide all facts C. Become the buyer's fiduciary automatically D. Guarantee appreciation
Answer: A
Explanation: Agents owe honesty and required disclosures even to non-clients.
43. Encumbrance
Which is an encumbrance?
A. Easement B. Paint color C. Moving box D. Listing photo
Answer: A
Explanation: Easements can burden or affect property use/title.
44. External Obsolescence
External obsolescence is loss in value caused by:
A. Factors outside the property B. Normal interior paint wear C. Buyer down payment D. Cost of a new roof
Answer: A
Explanation: External obsolescence comes from outside influences.
45. Executory Contract
A signed purchase contract that has not closed is generally:
A. Executory B. Fully executed C. Void in every case D. A quitclaim deed
Answer: A
Explanation: Performance remains due, so it is executory.
46. FHA Loan
An FHA loan is associated with:
A. Federal mortgage insurance B. Private deed restrictions C. Title insurance only D. Tax proration only
Answer: A
Explanation: FHA programs involve federal mortgage insurance.
47. Vesting
Vesting describes:
A. How title is held B. Appraised value C. Interest rate D. Escrow fee only
Answer: A
Explanation: Vesting is the manner in which ownership title is held.
48. Licensee as Principal
A licensee buying for the licensee's own account should remember:
A. Licensed status and material interests may need disclosure B. Disclosure never applies C. DRE rules apply only with commission D. Licensees cannot buy property
Answer: A
Explanation: Acting as principal can require disclosure of license status or interest.
49. Client vs. Customer
A customer is generally:
A. A non-client party not owed fiduciary duties B. Always the principal C. Always the broker D. The county recorder
Answer: A
Explanation: Customers are not fiduciary clients, though honesty and required disclosures still apply.
50. Mixed-Test Review
The best way to review a mixed test is to:
A. Track missed questions by topic and review weak areas B. Memorize answer letters only C. Ignore explanations D. Study only the smallest topic
Answer: A
Explanation: Mixed tests reveal weak topics and topic-switching problems.
Answer Key
| # | Answer | Topic |
|---|---|---|
| 1 | B | Practice/Disclosures |
| 2 | A | Agency |
| 3 | C | Ownership/Land Use |
| 4 | B | Valuation |
| 5 | B | Contracts |
| 6 | A | Financing |
| 7 | A | Transfer |
| 8 | C | Practice/Disclosures |
| 9 | A | Agency |
| 10 | A | Ownership/Land Use |
| 11 | A | Valuation |
| 12 | A | Contracts |
| 13 | A | Transfer |
| 14 | B | Practice/Disclosures |
| 15 | B | Agency |
| 16 | A | Ownership/Land Use |
| 17 | A | Valuation |
| 18 | A | Contracts |
| 19 | A | Financing |
| 20 | A | Transfer |
| 21 | B | Practice/Disclosures |
| 22 | A | Agency |
| 23 | A | Ownership/Land Use |
| 24 | A | Valuation |
| 25 | A | Contracts |
| 26 | A | Transfer |
| 27 | A | Practice/Disclosures |
| 28 | A | Agency |
| 29 | A | Ownership/Land Use |
| 30 | C | Valuation |
| 31 | A | Contracts |
| 32 | C | Financing |
| 33 | A | Transfer |
| 34 | A | Practice/Disclosures |
| 35 | A | Agency |
| 36 | A | Ownership/Land Use |
| 37 | C | Valuation |
| 38 | A | Contracts |
| 39 | B | Financing |
| 40 | A | Transfer |
| 41 | A | Practice/Disclosures |
| 42 | A | Agency |
| 43 | A | Ownership/Land Use |
| 44 | A | Valuation |
| 45 | A | Contracts |
| 46 | A | Financing |
| 47 | A | Transfer |
| 48 | A | Practice/Disclosures |
| 49 | A | Agency |
| 50 | A | Mixed Review |
Score Guide
| Score | What It Means |
|---|---|
| 45-50 | Strong mixed performance. Move into longer timed practice. |
| 40-44 | Good base. Review every missed explanation and retake weak topic sets. |
| 35-39 | Borderline for a 70% target. Rebuild weak subjects before timing yourself. |
| 0-34 | Use the topic labels to return to the seven topic practice pages. |
What to Review Next
- Practice of Real Estate and Disclosures
- Agency and Fiduciary Duties
- Property Ownership and Land Use
- Valuation and Financial Analysis
- Contracts
- Financing
- Transfer of Property
Related Study Guides
- Practice by topic: California Real Estate Salesperson Practice Questions
- Understand the passing score: California Real Estate Exam Passing Score Explained
- Review retake rules: California Real Estate Salesperson Exam Retake Rules
- Review the exam outline: California Real Estate Salesperson Exam Content Outline
- Review exam-day rules: California Real Estate Salesperson Exam Day Rules
- Review license requirements: California Real Estate Salesperson License Requirements
Source
- California Department of Real Estate, "Examination Description - RE 425": https://www.dre.ca.gov/files/pdf/forms/re425.pdf
- California Department of Real Estate, "Taking the Exam": https://www.dre.ca.gov/Examinees/TakingExam.html