California Real Estate Practice Exam 2026 – 400 Free Practice Questions to Pass the Exam

The requirement for the agent to file an application and receive a permit from the Department of Real Estate (DRE) is essential when dealing with the sale of a registered franchise, especially when the transaction encompasses both the building and the land. In California, franchise sales are regulated to protect consumers and ensure that necessary disclosures are made. The DRE oversees such transactions to ensure compliance with real estate laws and the specific regulations concerning franchises.

By obtaining a permit, the agent demonstrates that they are operating within legal parameters and that they have met all regulatory requirements necessary to facilitate the sale. This step ensures that the sale of the franchise adheres to the state’s legal standards, providing reassurance both to the owner of the franchise and potential buyers regarding the legitimacy and compliance of the transaction.

The other options pertain to different regulatory processes that may not be directly relevant to the initial steps the agent must take in this particular scenario.