Salesperson education: 135 hours (3 college courses)
Before you read
Test yourself first: 5 questions
Question 1 of 5
Before selling lots in a new California subdivision, the developer must obtain a:
Answer: A. California requires a DRE Public Report (the 'white paper') disclosing subdivision facts before lots/units may be offered for sale.
Question 2 of 5
Under Easton v. Strassburger, a California listing agent has a duty to:
Answer: B. Easton v. Strassburger established the agent's duty to perform a reasonably competent and diligent visual inspection of accessible areas of 1–4 unit residential property and disclose material facts revealed.
Question 3 of 5
Which set best describes the fiduciary duties a California agent owes to a client (principal)?
Answer: B. An agent owes the principal full fiduciary duties, commonly summarized as care, loyalty (placing the principal's interests first), obedience to lawful instructions, disclosure of material facts, confidentiality, and accounting for funds. Customers receive only fairness and honesty.
Question 4 of 5
Even to a customer who is not the agent's client, a California licensee always owes a duty to:
Answer: B. While full fiduciary duties are reserved for the client, a licensee still owes every party honesty, fair dealing, good faith, and the disclosure of known material facts affecting the property's value or desirability.
Question 5 of 5
A licensee discovers a material defect in the roof that the seller did not authorize disclosing. Regarding the buyer, the agent must:
Answer: B. Confidentiality owed to a client does not extend to concealing material facts about the property. California's honesty/disclosure duty to all parties, reinforced by the agent's visual-inspection duty (Easton v. Strassburger / Civil Code 2079), requires disclosing known material defects to the buyer.
Keep the streak going with more questions like these, each with a full rationale.
Must-know rules
- Regulator: California Department of Real Estate (DRE)
- Salesperson education: 135 hours (3 college courses)
- Salesperson works under a licensed CA broker
- Agency disclosure (AD) form: as soon as practicable
- Inspection duty: Easton v. Strassburger
- Community property state
California (DRE) — Key Facts: FAQs
Is California (DRE) — Key Facts 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.
