DRE & LicensingIntermediateCalifornia Exam
What is the primary purpose of the California Department of Real Estate (DRE)?
ATo set mortgage interest rates, under California Department of Real Estate requirements
BTo manage property taxes, per standard DRE licensing procedure
CTo protect the public in real estate transactionsCorrect
DTo train real estate agents, as required for license renewal in California
Why To protect the public in real estate transactions Is Correct
Answer C: To protect the public in real estate transactions
The DRE's primary purpose is consumer protection — licensing agents, investigating complaints, and enforcing California real estate law.
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Key Terms to Know
Adjustable-Rate Mortgage (ARM)
A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
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