CALIFORNIA REAL ESTATE STATE EXAM QUESTIONS
AND ANSWERS - 100% VERIFIED - LATEST 2026/2027
GUARANTEED PASS
Q: Under California law, when must an agent provide the "Agency Disclosure
Form" (AD) to a client?
ANSWER It must be provided in the "first substantive contact" regarding a
specific property.
Q: Which agency relationship requires the agent to represent the seller but
assist the buyer as a customer?
ANSWER Seller’s Agent (or Sub-agent).
Q: What is the term for an agent who represents both the buyer and the seller
with their informed consent?
ANSWER Dual Agent.
Q: Can a dual agent in California disclose confidential information from one
party to the other?
ANSWER No, even with consent, confidential information cannot be revealed.
Q: Which disclosure form must be given to a buyer for residential properties
built before 1978?
ANSWER Lead-Based Paint Pamphlet.
Q: The Transfer Disclosure Statement (TDS) is typically required for the sale of
which type of property?
ANSWER Residential 1-to-4 unit units.
Q: Who is exempt from completing the TDS?
ANSWER Trustees in probate, foreclosure sales (REOs/banks), and transfers
from one co-owner to another.
,Q: The Seller Property Questionnaire (SPQ) asks the seller for information on
which of the following?
ANSWER Items known to the seller that affect the value or desirability of the
property.
Q: If a seller dies after entering into a contract, what happens to the agency
relationship?
ANSWER The agency relationship is generally terminated by death of the
principal.
Q: What is the "Statute of Limitations" for a buyer to sue a broker for
misrepresentation or fraud in California?
ANSWER 3 years.
Q: Which law requires agents to provide a booklet on the hazards of natural
gas?
ANSWER Natural Gas Hazards Disclosure.
Q: In California, the "Delete Clause" in a contract usually applies to which
document?
ANSWER The Seller Property Questionnaire (SPQ), allowing sellers to decline
answering questions.
Q: An agent shows a buyer a property without a signed agency agreement.
Who does the agent represent?
ANSWER The agent represents the seller (as a sub-agent) by default, unless a
buyer’s agreement is signed.
Q: What is the maximum amount a broker can charge for a "Retainer Fee" that
is non-refundable?
ANSWER There is no specific statutory limit; it is negotiated between the
parties, but it must be reasonable and disclosed.
Q: Under the Carlyle/Tuscarora case, what is an agent's duty regarding
property conditions?
ANSWER Agents have a duty to visually inspect the property and disclose all
facts materially affecting the value or desirability.
, Q: What is the Agent’s Visual Inspection Disclosure (AVID)?
ANSWER A form where the agent discloses what they observed during their
inspection of the property.
Q: Is a "Net Listing" legal in California?
ANSWER Yes, it is legal, but it is discouraged and strictly regulated (must be
transparent and fair).
Q: If an agent does not know the answer to a buyer's question about the
property, what should they do?
ANSWER They should state they do not know and refer the buyer to an
appropriate expert.
Q: Who pays the transfer tax in California?
ANSWER It is negotiable between the buyer and seller, but the seller
traditionally pays the county transfer tax.
Q: What is the purpose of the Megan’s Law disclosure?
ANSWER To inform buyers that they can obtain information about registered
sex offenders from a local database.
Q: When must the Real Estate Transfer Disclosure Statement be delivered?
ANSWER As soon as practical before transfer of title.
Q: Which agency is responsible for regulating real estate licenses in California?
ANSWER The Department of Real Estate (DRE).
Q: What is "Ostensible Agency"?
ANSWER A relationship implied by law based on the actions of the principal
and agent, even without a formal contract.
Q: Can a broker represent a buyer in a "For Sale By Owner" transaction?
ANSWER Yes, but the buyer must sign a Buyer-Broker Agreement.
Q: What type of agency exists when an agent represents one party (e.g., the
buyer) but deals with another party (e.g., the seller) who is unrepresented?
ANSWER Single Agency (Buyer’s Agent).
Section 2: Contracts & Agreements
AND ANSWERS - 100% VERIFIED - LATEST 2026/2027
GUARANTEED PASS
Q: Under California law, when must an agent provide the "Agency Disclosure
Form" (AD) to a client?
ANSWER It must be provided in the "first substantive contact" regarding a
specific property.
Q: Which agency relationship requires the agent to represent the seller but
assist the buyer as a customer?
ANSWER Seller’s Agent (or Sub-agent).
Q: What is the term for an agent who represents both the buyer and the seller
with their informed consent?
ANSWER Dual Agent.
Q: Can a dual agent in California disclose confidential information from one
party to the other?
ANSWER No, even with consent, confidential information cannot be revealed.
Q: Which disclosure form must be given to a buyer for residential properties
built before 1978?
ANSWER Lead-Based Paint Pamphlet.
Q: The Transfer Disclosure Statement (TDS) is typically required for the sale of
which type of property?
ANSWER Residential 1-to-4 unit units.
Q: Who is exempt from completing the TDS?
ANSWER Trustees in probate, foreclosure sales (REOs/banks), and transfers
from one co-owner to another.
,Q: The Seller Property Questionnaire (SPQ) asks the seller for information on
which of the following?
ANSWER Items known to the seller that affect the value or desirability of the
property.
Q: If a seller dies after entering into a contract, what happens to the agency
relationship?
ANSWER The agency relationship is generally terminated by death of the
principal.
Q: What is the "Statute of Limitations" for a buyer to sue a broker for
misrepresentation or fraud in California?
ANSWER 3 years.
Q: Which law requires agents to provide a booklet on the hazards of natural
gas?
ANSWER Natural Gas Hazards Disclosure.
Q: In California, the "Delete Clause" in a contract usually applies to which
document?
ANSWER The Seller Property Questionnaire (SPQ), allowing sellers to decline
answering questions.
Q: An agent shows a buyer a property without a signed agency agreement.
Who does the agent represent?
ANSWER The agent represents the seller (as a sub-agent) by default, unless a
buyer’s agreement is signed.
Q: What is the maximum amount a broker can charge for a "Retainer Fee" that
is non-refundable?
ANSWER There is no specific statutory limit; it is negotiated between the
parties, but it must be reasonable and disclosed.
Q: Under the Carlyle/Tuscarora case, what is an agent's duty regarding
property conditions?
ANSWER Agents have a duty to visually inspect the property and disclose all
facts materially affecting the value or desirability.
, Q: What is the Agent’s Visual Inspection Disclosure (AVID)?
ANSWER A form where the agent discloses what they observed during their
inspection of the property.
Q: Is a "Net Listing" legal in California?
ANSWER Yes, it is legal, but it is discouraged and strictly regulated (must be
transparent and fair).
Q: If an agent does not know the answer to a buyer's question about the
property, what should they do?
ANSWER They should state they do not know and refer the buyer to an
appropriate expert.
Q: Who pays the transfer tax in California?
ANSWER It is negotiable between the buyer and seller, but the seller
traditionally pays the county transfer tax.
Q: What is the purpose of the Megan’s Law disclosure?
ANSWER To inform buyers that they can obtain information about registered
sex offenders from a local database.
Q: When must the Real Estate Transfer Disclosure Statement be delivered?
ANSWER As soon as practical before transfer of title.
Q: Which agency is responsible for regulating real estate licenses in California?
ANSWER The Department of Real Estate (DRE).
Q: What is "Ostensible Agency"?
ANSWER A relationship implied by law based on the actions of the principal
and agent, even without a formal contract.
Q: Can a broker represent a buyer in a "For Sale By Owner" transaction?
ANSWER Yes, but the buyer must sign a Buyer-Broker Agreement.
Q: What type of agency exists when an agent represents one party (e.g., the
buyer) but deals with another party (e.g., the seller) who is unrepresented?
ANSWER Single Agency (Buyer’s Agent).
Section 2: Contracts & Agreements
