Real estate agency and fiduciary duties
Review how agency relationships create duties such as loyalty, disclosure, reasonable care, confidentiality, and obedience to lawful instructions.
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California Real Estate Salesperson Practice
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Practice question
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California · Real Estate Salesperson
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A California real estate salesperson represents a seller in a residential transaction. Which duty best reflects the salesperson's agency responsibility to that seller?
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Source-aware practice
California source and review context
This California page was reviewed against public California Department of Real Estate source material documented in the editorial source manifest. The practice set includes 50 original concept-review questions aligned to blueprint domains such as California licensing, DRE oversight, agency, and broker supervision; Practice, disclosures, fair housing, trust funds, and consumer protection; Contracts, transfer, ownership, title, escrow, and closing. Use the linked regulator or exam administrator resources to confirm current licensing requirements before testing.
These questions are original study material. They are not copied from official exams, recalled items, leaked sources, or answer-sharing sites.
Review details
Reviewed against public licensing guidance and exam outline information where available.
Last reviewed
2026-07-06
Licensing authority
California Department of Real Estate
Exam vendor
California Department of Real Estate
State-specific review topics
California Department of Real Estate and responsible broker context
California disclosure, agency, and practice emphasis
DRE role
agency duties
broker supervision
licensee responsibilities
material facts
natural hazards
Study guide
California Real Estate Salesperson study guide
Use this guide with the practice flow above. The goal is not to memorize answers, but to recognize how agency, disclosure, contract, financing, ownership, fair housing, and California licensing concepts appear in question form.
Disclosures and material facts
Focus on identifying known facts that could affect a buyer's decision, especially property condition issues and required transaction disclosures.
Contracts and purchase agreements
Practice offer, acceptance, consideration, competent parties, lawful purpose, contingencies, and other concepts that make real estate agreements enforceable.
Financing and settlement basics
Review loan-to-value, escrow, closing steps, earnest money, and how funds and documents move through a transaction.
Property ownership, title, and transfer
Know the difference between deeds, title, ownership interests, valuation methods, and documents that do not transfer ownership.
California regulation and fair housing
California-focused review should include licensing responsibilities, advertising rules, fair housing, consumer protection, and regulator guidance.
Sample questions
Try these California Real Estate Salesperson sample questions
Use these sample questions to check your readiness. Each one includes the correct answer and a short explanation. Start the interactive practice above to work through the full 50-question set with answer feedback and optional AI help.
1. A California real estate salesperson represents a seller in a residential transaction. Which duty best reflects the salesperson's agency responsibility to that seller?+
A.Acting with loyalty, reasonable care, and disclosure of material information within the agency relationship
B.Guaranteeing the buyer will obtain financing
C.Setting the final appraised value of the property
D.Ignoring all buyer questions about the property
Correct answer: A. Acting with loyalty, reasonable care, and disclosure of material information within the agency relationship
Explanation: An agent owes fiduciary and statutory duties within the agency relationship, including loyalty, reasonable care, and appropriate disclosure. The agent does not guarantee financing or appraised value.
2. A seller knows about a roof leak that is not obvious during a normal walkthrough. What is the best general approach in a California real estate transaction?+
A.Wait for the buyer to discover the issue after closing
B.Disclose the known material fact according to applicable disclosure requirements
C.Describe the property as problem-free if the leak is currently dry
D.Tell the licensee to remove all inspection references from the file
Correct answer: B. Disclose the known material fact according to applicable disclosure requirements
Explanation: Known material facts should be disclosed as required. A hidden roof leak can affect a buyer's decision and should not be concealed or minimized through misleading statements.
3. Which element is commonly needed for a real estate purchase agreement to become a binding contract?+
A.A guaranteed appraisal above the purchase price
B.A verbal promise with no definite terms
C.Offer, acceptance, consideration, and legally competent parties
D.A broker's personal approval of the buyer's furniture
Correct answer: C. Offer, acceptance, consideration, and legally competent parties
Explanation: Real estate contracts generally require offer, acceptance, consideration, competent parties, lawful purpose, and sufficiently definite terms. A guaranteed appraisal is not a basic contract element.
4. A buyer gives an earnest money deposit to be held for a purchase transaction. What is the best general description of how those funds should be treated?+
A.They become the salesperson's personal funds immediately
B.They may be used to pay the broker's unrelated office expenses
C.They can be ignored until after closing
D.They should be handled as trust funds according to applicable rules and written instructions
Correct answer: D. They should be handled as trust funds according to applicable rules and written instructions
Explanation: Earnest money and similar transaction funds must be handled carefully as trust funds according to applicable law, broker procedures, and written transaction instructions.
5. A buyer wants to estimate loan-to-value ratio. If the loan amount is $400,000 and the property value is $500,000, what is the loan-to-value ratio?+
A.80%
B.20%
C.100%
D.125%
Correct answer: A. 80%
Explanation: Loan-to-value is the loan amount divided by the property value. $400,000 divided by $500,000 equals 0.80, or 80%.
6. Which document is commonly used to transfer title to real property from one owner to another?+
A.Listing advertisement
B.Deed
C.Business card
D.Open house sign-in sheet
Correct answer: B. Deed
Explanation: A deed is commonly used to transfer title to real property. Advertising materials and sign-in sheets do not transfer ownership interests.
7. An appraiser compares a subject property with recently sold similar properties. Which valuation approach is being used?+
A.Cost approach only
B.Income capitalization only
C.Sales comparison approach
D.Trust fund reconciliation
Correct answer: C. Sales comparison approach
Explanation: The sales comparison approach estimates value by comparing the subject property to similar properties that have sold recently, with adjustments for relevant differences.
8. Which advertising practice creates a fair housing concern?+
A.Listing the number of bedrooms and bathrooms
B.Describing the approximate square footage when accurate and sourced
C.Identifying the property's general location
D.Stating a preference for buyers from one protected class
Correct answer: D. Stating a preference for buyers from one protected class
Explanation: Advertising that states or implies a preference based on protected characteristics can create fair housing issues. Neutral property facts are generally different from discriminatory preferences.
9. Which statement best describes the California Department of Real Estate in the licensing context?+
A.It regulates California real estate licensing and related licensee responsibilities
B.It guarantees every real estate transaction will close
C.It sets the sales price for all residential property
D.It acts as the buyer's lender in every transaction
Correct answer: A. It regulates California real estate licensing and related licensee responsibilities
Explanation: The California Department of Real Estate is the state agency associated with real estate licensing and licensee regulation. It does not guarantee closings or set private sales prices.
10. What is escrow commonly used for in a real estate purchase transaction?+
A.Replacing the need for a purchase agreement
B.Holding documents and funds under instructions until transaction conditions are satisfied
C.Guaranteeing the property's future market value
D.Allowing a salesperson to avoid broker supervision
Correct answer: B. Holding documents and funds under instructions until transaction conditions are satisfied
Explanation: Escrow is commonly used to hold funds and documents according to instructions until the conditions for closing are met. It does not replace the contract or guarantee future value.
Common questions
California Real Estate Salesperson FAQ
Are these California real estate exam items?+
No. They are original practice questions designed to review common real estate principles and California salesperson licensing concepts.
Do I need to log in to practice?+
No. Basic practice questions, answer feedback, and explanations are available without login.
Should I still check California licensing requirements?+
Yes. Rules can change, so confirm current requirements with the California Department of Real Estate or your prelicensing provider.