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1. Which statement is true regarding earnest money deposits in California?
A. Earnest money deposits are non-refundable under all circumstances
B. Earnest money must be held in the listing agent's personal bank account
C. Earnest money must be deposited into a broker's trust account within three business days
D. Earnest money is the same as the down payment and goes directly to the seller
2. Which of the following best describes the purpose of the California Department of Real Estate (DRE)?
A. To regulate real estate licensees and protect the public from fraud and dishonest dealing
B. To set real estate prices and control market competition
C. To provide real estate financing to qualified buyers
D. To manage all property transactions in the state
3. What is the primary role of California's Department of Real Estate (now DRE)?
A. To set property tax rates for all California properties
B. To license and regulate real estate professionals and enforce real estate laws
C. To insure all real estate transactions in California
D. To establish maximum and minimum property values in each county
4. Which document is required to be provided to all parties in a residential real estate transaction in California?
A. The Real Estate Transfer Disclosure Statement (TDS)
B. A personal financial statement of the buyer
C. A complete appraisal report from a licensed appraiser
D. A homeowner's insurance policy quote
5. What is the primary purpose of California's Fair Employment and Housing Act (FEHA) in real estate transactions?
A. To set maximum rental rates in residential properties
B. To prohibit discrimination in housing based on protected characteristics
C. To regulate all commission rates charged by brokers
D. To establish minimum property standards for all residential units
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PassIt includes 524+ practice questions for Real Estate - California (DRE), organized by topic and difficulty. The passing score is 75%.
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