Before you read
Test yourself first: 5 questions
Question 1 of 5
In a residential one-to-four unit sale, California's agency disclosure law requires the licensee to provide the buyer and seller with:
Answer: A. California requires agents in one-to-four unit residential transactions to give a written agency disclosure form explaining the possible agency relationships before entering into the representation.
Question 2 of 5
In California, may a licensee act as a dual agent without disclosure if the licensee believes it benefits both parties?
Answer: A. Undisclosed dual agency is prohibited in California. Dual agency is lawful only when both the seller and the buyer know of and consent in writing to the dual representation.
Question 3 of 5
The California Real Estate Recovery Account (recovery fund) exists primarily to:
Answer: B. The Recovery Account compensates aggrieved members of the public who have an unsatisfied final court judgment against a licensee based on fraud, misrepresentation, deceit, or conversion of trust funds arising from a licensed act. It protects consumers, not licensees.
Question 4 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 5 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).
Keep the streak going with more questions like these, each with a full rationale.
What you need to know
Agency in California is created, disclosed, and confirmed in writing in the purchase agreement, and the agent owes the principal fiduciary duties of loyalty, confidentiality, disclosure, obedience, and accounting. Dual agency is permitted only when both parties give informed written consent, and a dual agent may not disclose confidential price information without permission.
California's Agency and Representation Model: FAQs
Is California's Agency and Representation Model 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.
