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California Environmental
Practice Questions & Answers (2026)

Environmental questions on the California exam cover both federal environmental laws and California-specific disclosure requirements. Federal topics include lead-based paint (pre-1978 housing), asbestos, radon, underground storage tanks, and CERCLA liability. California has additional state-level environmental disclosure requirements enforced by the California Department of Real Estate (DRE) — including California-specific environmental conditions that affect property use and disclosure. Environmental questions trip up candidates who studied only federal law without reviewing the CA-specific overlay.

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Updated May 2026 · California Department of Real Estate (DRE) exam outline

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California Environmental — Practice Questions & Answers

85 questions on Environmental from the California real estate question bank. First 10 are free — sign up to unlock all 85.

Q1. Which federal law requires disclosure of lead-based paint in homes built before 1978?

A.CERCLA, under California environmental disclosure law
B.The Residential Lead-Based Paint Hazard Reduction Act
C.RESPA, as required under standard hazard disclosure practice
D.The Clean Air Act, consistent with California environmental regulations

Explanation

The Residential Lead-Based Paint Hazard Reduction Act (Title X) requires sellers and landlords to disclose known lead-based paint hazards in housing built before 1978.

Q2. What is radon?

A.A chemical used in older insulation, per standard environmental compliance procedure
B.A colorless, odorless radioactive gas that can accumulate in buildings
C.A type of mold found in wet climates, under California environmental disclosure law
D.A soil contaminant from industrial use, as required under standard hazard disclosure practice

Explanation

Radon is a naturally occurring colorless, odorless radioactive gas that comes from the decay of uranium in soil. It can seep into buildings and is a leading cause of lung cancer.

Q3. Asbestos becomes a health hazard when it is:

A.Fully intact and undisturbed, consistent with California environmental regulations
B.Painted over, per standard environmental compliance procedure
C.Friable (crumbling) and releasing fibers into the air
D.Located outdoors, under California environmental disclosure law

Explanation

Asbestos is most dangerous when it is friable — crumbling or deteriorating — and releasing microscopic fibers into the air that can be inhaled and cause serious lung diseases.

Q4. CERCLA (Superfund) holds which parties responsible for environmental cleanup?

A.Only the party that caused the contamination, as required under standard hazard disclosure practice
B.Only current property owners, consistent with California environmental regulations
C.Potentially all past and present owners, operators, and transporters
D.Only the federal government, per standard environmental compliance procedure

Explanation

CERCLA (Comprehensive Environmental Response, Compensation, and Liability Act) imposes strict, joint and several liability on potentially responsible parties — including past owners, current owners, operators, and those who transported hazardous substances to the site.

Q5. What is a Natural Hazard Disclosure (NHD) in California?

A.A report on the property's flood insurance, under California environmental disclosure law
B.A required disclosure stating whether a property is in a designated natural hazard zone
C.An environmental impact report for new construction, as required under standard hazard disclosure practice
D.A pest inspection report, consistent with California environmental regulations

Explanation

California requires sellers to disclose whether a property is in a natural hazard zone — including flood zones, fire hazard zones, earthquake fault zones, seismic hazard zones, and others.

Q6. What does CERCLA stand for?

A.California Environmental Real Estate Cleanup and Liability Act
B.Comprehensive Environmental Response, Compensation, and Liability Act
C.Commercial Environmental Regulation and Cleanup Law Act
D.California Environmental Resource Control and Liability Act

Explanation

CERCLA stands for the Comprehensive Environmental Response, Compensation, and Liability Act — the federal Superfund law that governs cleanup of contaminated sites.

Q7. Underground storage tanks (USTs) are a concern in real estate because:

A.They increase property value
B.They may leak and contaminate soil and groundwater
C.They are required by zoning for commercial properties
D.They affect the property's square footage calculation

Explanation

Leaking underground storage tanks (commonly found at gas stations and older commercial properties) can contaminate soil and groundwater, creating serious environmental liability for property owners.

Q8. What is the Alquist-Priolo Earthquake Fault Zone Act in California?

A.A law requiring earthquake insurance for all California homes, per standard environmental compliance procedure
B.A law prohibiting most new structures for human occupancy near active earthquake fault traces
C.A law providing tax credits for earthquake retrofitting, under California environmental disclosure law
D.A law requiring sellers to disclose flood risk, as required under standard hazard disclosure practice

Explanation

The Alquist-Priolo Act prohibits most new buildings intended for human occupancy from being built within 50 feet of an active earthquake fault trace. Sellers must disclose if a property is in a fault zone.

Q9. Mold in a home is most commonly associated with:

A.Excessive sunlight exposure, consistent with California environmental regulations
B.Moisture, water intrusion, and poor ventilation
C.Older electrical wiring, per standard environmental compliance procedure
D.Lead paint, under California environmental disclosure law

Explanation

Mold grows in the presence of moisture and organic material. It is typically associated with water leaks, flooding, condensation, and poor ventilation. California requires disclosure of known mold.

Q10. Proposition 65 in California requires:

A.All homes to be tested for radon before sale, as required under standard hazard disclosure practice
B.Businesses to warn Californians about significant exposures to chemicals that cause cancer or reproductive harm
C.Real estate agents to disclose environmental hazards, consistent with California environmental regulations
D.Landlords to remediate all environmental issues before renting, per standard environmental compliance procedure

Explanation

Proposition 65 (Safe Drinking Water and Toxic Enforcement Act) requires businesses to provide clear warnings before exposing Californians to chemicals listed as known to cause cancer or reproductive toxicity.

Q11. Which federal Superfund law holds current and past property owners potentially liable for cleanup of hazardous substances, even if they did not cause the contamination?

A.RCRA, under California environmental disclosure law
B.NEPA, as required under standard hazard disclosure practice
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AgencyDRE & LicensingContractsFair HousingFinanceEscrow & TitleProperty OwnershipProperty ValuationReal Estate MathTrust FundsProperty ManagementLand Use & Zoning
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