- Encumbrance
- Any claim, charge, or liability attached to real property—such as a lien, easement, or restriction—that may limit its use or transfer.
- Real Estate Salesperson
- A licensed individual who performs real estate activities—such as listing, selling, or negotiating property transactions—on behalf of and under the supervision of a licensed broker. A salesperson cannot operate independently and must be employed by a broker.
- Real Estate Broker
- A licensed professional who may independently conduct real estate transactions, own a brokerage, and employ salespersons. Brokers hold greater responsibility and licensing requirements than salespersons.
- DRE (Department of Real Estate)
- The California state agency that regulates real estate licensing, administers the licensing exam, and enforces real estate law to protect the public. It publishes the official exam content and requirements.
- Passing Score
- The minimum performance required to pass the exam. To pass the California Real Estate Salesperson Exam, a candidate must correctly answer at least 70 percent of the questions.
- Fiduciary Duty
- The legal obligation an agent owes to a client to act with the utmost good faith, loyalty, and honesty, always placing the client's interests above the agent's own. It includes duties of care, obedience, accounting, loyalty, and disclosure.
- Agency
- The legal relationship in which one party (the agent) is authorized to act on behalf of and represent another party (the principal) in dealings with third parties. In real estate, agency defines whom the agent represents in a transaction.
- Escrow
- A neutral third party holds funds, documents, and instructions on behalf of the buyer and seller until all conditions of a transaction are met. Escrow ensures neither party gains an advantage until the deal closes.
- Fee Simple
- The most complete and absolute form of property ownership, granting the holder full rights to use, sell, lease, or bequeath the property indefinitely. It is the highest estate recognized in law.
- Lien
- A legal claim or encumbrance placed on a property as security for a debt or obligation, giving the creditor a right to the property if the debt is not paid. Common examples include mortgages and property tax liens.
- Real Estate Broker
- A licensed professional who may operate independently and employ salespersons; a salesperson must be supervised by and work under a broker.
- DRE (Department of Real Estate)
- The California state agency that administers real estate licensing, sets exam content, and regulates real estate practice in the state.
- Passing Score
- The minimum result needed to pass the exam; a candidate must correctly answer at least 70 percent of the questions.
- Exam Fee
- The cost charged to sit for the licensing exam; the salesperson examination fee is $100.
- Multiple Choice Question
- The question format used throughout the exam, where a candidate selects the correct answer from several options; the exam contains 150 such questions.
- Fiduciary Duty
- The legal obligation of an agent to act in the best interest of their client, including loyalty, confidentiality, disclosure, and reasonable care.
- Agency
- The fiduciary relationship in which one party (the agent) is authorized to act on behalf of another (the principal) in dealings with third parties.
- Escrow
- A neutral third-party arrangement that holds funds and documents until all conditions of a real estate transaction are satisfied, then disburses them to the appropriate parties.
- Lien
- A legal claim or encumbrance placed on a property as security for a debt or obligation, which can affect the owner's ability to sell or transfer clear title.
- Deed
- A written legal instrument that transfers ownership (title) of real property from a grantor to a grantee.
- Deed
- A written legal document that transfers ownership (title) of real property from one party (grantor) to another (grantee). To be valid it must be signed by the grantor and delivered to the grantee.
- Encumbrance
- Any claim, charge, or liability attached to a property—such as a lien, easement, or restriction—that may affect its use or transferability. Encumbrances do not necessarily prevent a sale but must typically be disclosed.
- Comparative Market Analysis (CMA)
- An evaluation of a property's likely market value based on the recent sale prices of similar nearby properties. Agents use a CMA to help sellers set a listing price or advise buyers on offers.
- Real Estate Salesperson
- A licensed individual who performs real estate activities—such as listing, selling, or negotiating property transactions—on behalf of and under the supervision of a licensed real estate broker.