DRE (Department of Real Estate) Final Exam
TEST 2025 | ACCURATE AND VERIFIED
QUESTIONS WITH DETAILED ANSWERS PLUS
RATIONALES | GUARANTEED PASS | GRADED
A+
- Which of the following would be considered a material fact that must be
- The neighbors are loud on weekends
- The house was the site of a recent death
- The foundation has significant cracks
- The seller is getting divorced
disclosed to a prospective buyer?
Answer: C. The foundation has significant cracks
Rationale: A material fact is any detail that may affect a buyer's decision. 1 / 4
Structural damage, like cracked foundations, must be disclosed under California law.
2. A real estate licensee must disclose their agency relationship:
- When escrow closes
- Before the buyer signs the purchase agreement
- As soon as possible and before any negotiations begin
- Only upon written request from a client
Answer: C. As soon as possible and before any negotiations begin
Rationale: California requires agents to disclose their agency relationship at the earliest possible opportunity to avoid conflicts of interest.
- A broker may keep trust funds in a trust account for how long before needing
- 21 days
- 3 business days
- 10 calendar days
- 5 business days
to account or disburse them?
Answer: B. 3 business days
Rationale: California law mandates that trust funds be deposited or handed over
to the principal within three business days.
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- What is the primary purpose of the Truth in Lending Act (TILA)?
- To disclose the cost of credit and lending terms
- To regulate interest rates
- To require licensing for mortgage lenders
- To approve or deny loan applications
Answer: A. To disclose the cost of credit and lending terms
Rationale: TILA is designed to promote informed consumer credit decisions by
requiring clear disclosure of loan terms.
- What is a “blind ad” in real estate?
- An ad without any photos
- An ad directed to visually impaired individuals
- An ad that does not disclose the broker's identity
- An ad that includes no pricing
Answer: C. An ad that does not disclose the broker's identity
Rationale: Blind ads are illegal in California. All real estate ads must disclose the identity of the broker to protect consumers.
- Which of the following is NOT a requirement to obtain a California real estate
- Be at least 18 years old
- Complete college-level real estate courses
- Have a sponsoring broker at the time of exam
- Pass a background check 3 / 4
salesperson license?
Answer: C. Have a sponsoring broker at the time of exam
Rationale: You need a broker to activate your license, but not to take the exam.
- What does “puffing” refer to in real estate?
- A physical defect in the home
- Exaggerated or subjective statements
- Illegal misrepresentation
- Accurate data on square footage
Answer: B. Exaggerated or subjective statements
Rationale: Puffing involves opinions or sales talk (e.g., "best view in town") and is generally legal unless it becomes fraudulent.
- A real estate salesperson receives an earnest money deposit. What must they
- Keep it in their personal account
- Immediately deliver it to their broker
- Mail it to escrow within 5 days
- Hold it until the seller accepts the offer
do?
Answer: B. Immediately deliver it to their broker
Rationale: Only brokers may handle trust funds, and salespersons must deliver
any such funds promptly to their broker.
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