Practices - Practice Assessment
2025/2026 Exam Questions and Answers
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The DRE has the authority to do all of the following EXCEPT:
A. enforce subdivision laws
B. sentence agents who commit real estate license violations to prison
C. approve education providers
D. administer licenses - 🧠 ANSWER ✔✔B. sentence agents who commit real
estate license violations to prison
Which of the following is an example of an acceptable use of a trust account?
,A. a broker depositing their personal paycheck in the same account where they
deposited a client's earnest money
B. mixing a fiduciary's funds with an agent's personal funds
C. holding earnest money while a transaction is waiting on approval
D. buying a car with a client's money - 🧠 ANSWER ✔✔C. holding earnest money
while a transaction is waiting on approval
The parties to a signed contract have decided that they want to change the closing
date. The agent will need to prepare a(n):
A. addendum
B. codicil
C. amendment
D. affidavit - 🧠 ANSWER ✔✔A. amendment
When real estate costs more due to factors such as an increase in construction
costs, fewer people are willing to buy. This decrease in willingness to buy is said to
be a decrease in:
,A: demand
B: supply
C: interest rates
D: money supply - 🧠 ANSWER ✔✔A: demand
Who determines the listing price for a property?
A: the seller
B: the buyer
C: the buyer's agent
D: the listing agent - 🧠 ANSWER ✔✔A: the seller
What enters a home through cracks in the foundation?
A: lead
B: radon gas
C: mold
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, D: asbestos - 🧠 ANSWER ✔✔B: radon gas
Why was the UETA (Uniform Electronic Transactions Act) important to real estate
contracts?
A: The UETA said that earnest money must always be held in a trust or escrow
account.
B: The UETA said that there can only be a certain number of amendments to a
contract.
C: The UETA said that electronic signatures are just as legal as handwritten
signatures, and therefore have legally binding status.
D: The UETA said that the legal description is a necessary part of a real estate
contract. - 🧠 ANSWER ✔✔C: The UETA said that electronic signatures are just as
legal as handwritten signatures, and therefore have legally binding status.
The best way to create any agency relationship is to do so:
A: in writing
B: in person