Dual agency is allowed only with informed written consent of both parties.
Before you read
Test yourself first: 5 questions
Question 1 of 5
Which agency licenses and regulates real estate salespersons in California?
Answer: A. The California Department of Real Estate (DRE) licenses and regulates real estate brokers and salespersons in California.
Question 2 of 5
Which state agency regulates real estate licensees and licensing in California?
Answer: A. Real estate licensing and the regulation of licensees in California is administered by the California Department of Real Estate (DRE).
Question 3 of 5
Which state agency licenses and regulates real estate salespersons and brokers in California?
Answer: A. The California Department of Real Estate (DRE) is the state agency that licenses and regulates real estate salespersons and brokers. The California Association of REALTORS is a private trade group, not a government regulator.
Question 4 of 5
Which California agency is responsible for licensing real estate salespersons and brokers and enforcing the Real Estate Law against licensees?
Answer: A. The California Department of Real Estate (DRE), headed by the Real Estate Commissioner, licenses real estate salespersons and brokers and enforces the Real Estate Law, including investigating complaints and imposing discipline.
Question 5 of 5
In a California residential sale of 1–4 units, the agency disclosure (AD) form must be:
Answer: B. California requires the Disclosure Regarding Real Estate Agency Relationships (AD form) to be given 'as soon as practicable' — before the listing agreement or the buyer's offer is signed.
Keep the streak going with more questions like these, each with a full rationale.
Must-know rules
- Agency disclosure form must be delivered to seller and buyer (the AD form).
- Agency relationships: seller's agent, buyer's agent, or dual agent.
- Dual agency is allowed only with informed written consent of both parties.
- A dual agent may not disclose price terms either party will accept without consent.
- Licensees owe fiduciary duties: loyalty, disclosure, confidentiality, and care.
- Civil Code 2079 imposes a duty of reasonable visual inspection (Easton v. Strassburger).
California Agency Model Quick Reference: FAQs
Is California Agency Model Quick Reference on the real estate exam?
Yes. State License Law is a scored domain on the California real estate licensing exam, and this topic appears in the state license-law portion.
Is this cheat sheet free?
Yes — every page on Cinna RE's resource library is free to read, print and share. The app adds practice questions, mock exams and a readiness score.
Does California test this differently?
California applies its own license law on top of the national portion. This page covers the California rules specifically, which is what the state section of your exam tests.
