Latest PDF of CA-Real-Estate: California Real Estate test (DRE)

California Real Estate test (DRE) Practice Test

CA-Real-Estate test Format | Course Contents | Course Outline | test Syllabus | test Objectives

Appropriate knowledge of the English language, including reading, writing, and spelling; and of arithmetical computations common to real estate and business opportunity practices.
An understanding of the principles of real estate and business opportunity conveyancing; the general purposes and general legal effect of agency contracts, deposit receipts, deeds, deeds of trust, chattel mortgages, bills of sale, mortgages, land contracts of sale, and leases; and of the principles of business, land economics and appraisals.
A general and fair understanding of the obligations between principal and agent; the principles of real estate and business opportunity transactions, and the code of business ethics pertaining thereto; as well as of the provisions of the law relating to real estate as administered by the Real Estate Commissioner.

- Classes of Property
- Property Characteristics
- Encumbrances
- Types of Ownership
- Descriptions of Property
- Government Rights in Land
- Public Controls
- Environmental Hazards and Regulations
- Private Controls
- Water Rights
- Special Categories of Land

- Law, Definition and Nature of Agency Relationships, Types of Agencies, and Agents
- Creation of Agency and Agency Agreements
- Responsibilities of Agent to Seller/Buyer as Principal
- Disclosure of Agency
- Disclosure of Acting as Principal or Other Interest
- Termination of Agency
- Commission and Fees
- Responsibilities of Agent to Non-Client Third Parties

- Value
- Methods of Estimating Value
- Financial Analysis

- General Concepts
- Types of Loans
- Sources of Financing
- Government Programs
- Mortgages/Deeds of Trust/Notes
- Financing/Credit Laws
- Loan Brokerage
- Types of Loan Originators

- Title Insurance
- Deeds
- Escrow
- Tax Aspects
- Special Processes
- Transfer through Court Supervision
- Types of Vesting

- Trust Account Management
- Fair Housing Laws
- Truth in Advertising
- Record Keeping Requirements
- Agency Supervision
- Permitted Activities of Unlicensed Sales Assistants
- DRE Jurisdiction and Disciplinary Actions
- Licensing, and Continuing Education Requirements and Procedures
- California Real Estate Recovery Fund
- General Ethics
- Technology
- Property Management
- Commercial/Industrial/Income Properties
- Specialty Areas
- Transfer Disclosure Statement
- Natural Hazard Disclosure Statements
- Disclosure of Material Facts Affecting Property Value
- Need for Inspection and Obtaining/Verifying Information
- Reports
- Servicing Diverse Populations

- General
- Listing Agreements
- Buyer Broker Agreements
- Offers/Purchase Contracts
- Agreements
- Promissory Notes/Securities
- Purchase/Lease Options
- Advanced Fee

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QUESTION: 91.
Buyer Baker bought a farm. At the time of the purchase, the seller Sampson was growing corn
on the north 40 acres of the farm. Sampson intended to harvest the corn before the close of
escrow, but never got around to it. No mention was made of the corn in the sales agreement
and/or escrow instructions. Escrow has now closed, Buyer Baker is in possession and it is
time to harvest the corn. Who gets to harvest the corn?
A. The buyer would have the right to harvest the corn because he always intended to do so;
B. The buyer would get to harvest the corn because it goes with the land and is considered real
property.
C. The buyer would get to harvest the corn because of his equity in the corn;
D. The seller would get to harvest the corn because the corn is his personal property and was
not mentioned in the sales agreement.
Answer: D
QUESTION: 92.
Who signs the promissory note and mortgage?
A. Mortgagor;
B. Mortgagee;
C. Lender;
D. Beneficiary.
Answer: A
QUESTION: 93.
When calculating the Consumer Price Index (CPI), housing expenses is one of the largest
denominators because
A. CPI is based upon all consumer purchases;
B. More people buy homes than buy businesses;
C. Housing impacts economy;
D. Housing is one of the largest expenses for consumers.
Answer: D
QUESTION: 94.
As used in real estate practices, the land of a riparian owner borders on:
A. A river;
B. A stream;
C. A watercourse;
D. Any of the above.
Answer: D
QUESTION: 95.
When four people own property as joint tenants:
A. They may hold unequal interests in the property;
B. There is still only one title to the whole property;
C. If one of the owners dies, her heirs become tenants in common with the surviving co-
owners as tenants in common;
D. Each owner has a separate legal title to his undivided interest in the property.
Answer: B
QUESTION: 96.
A seller is required to deliver the Homeowner's Guide to Earthquake Safety to the buyer of
any one-to-four unit residential properties built prior to:
A. 1952
B. 1960
C. 1960
D. 1975
Answer: B
QUESTION: 97.
A bona fide listing to sell real property must contain:
A. Consideration, mutual consent, competent parties, and writing;
B. Consideration, mutual consent, capable parties expressed time element and price;
C. Capable parties, mutual consent, lawful object, consideration, and be in writing;
D. Consideration, price, lawful object, competent parties, and legally sufficient writing.
Answer: C
QUESTION: 98.
A contractor obtains a construction loan, and the loan funds are to be released in a series of
progress payments. Most lenders disburse the last payment when the:
A. Building is completed;
B. Notice of completion is filed;
C. Buyer approves the construction;
D. Period to file a mechanic's lien has expired.
Answer: D
QUESTION: 99.
Which of the following represents an example of police power?
A. A condemnation action on property for construction of a freeway;
B. CC&Rs placed in a deed by a developer;
C. Enforcement of contracts by equitable civil proceedings in court;
D. Zoning laws which restrict and limit the use of land.
Answer: D
QUESTION: 100.
Gross leases are most often used with:
A. Residential property;
B. Retail space;
C. Office space;
D. Shopping malls.
Answer: A

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