California · Real estate exam prep

California Real Estate Practice Test

20 free California practice questions with no signup required. When you're ready for more, the full RealReady bank has 1,090 questions for the 2026 exam that cover both national principles and California law.

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20 California Real Estate Test Questions & Answers

Use this like a free California real estate practice test: read the question, commit to an answer, then tap to reveal the correct answer and a plain-English explanation. The ones you miss tell you where to focus next.

Q1 of 20 Licensing & Regulation

The California Real Estate Commissioner is selected through which process?

  1. Appointed by the Governor without Senate confirmation
  2. Appointed by the Governor, confirmed by the Senate
  3. Elected by the Real Estate Advisory Commission
  4. Elected by licensed brokers statewide
Show answer & explanation

Correct: B Appointed by the Governor, confirmed by the Senate

The Commissioner is appointed by the Governor and must be confirmed by the Senate. This process ensures both executive and legislative oversight of the state's real estate regulatory authority.

Q2 of 20 Licensing & Regulation

Priya, age 17, passes the California salesperson exam. What happens next?

  1. She receives a provisional license until she turns 18
  2. She cannot receive a license until she is at least 18
  3. She may practice under a supervising broker immediately
  4. Her parents may consent on her behalf to activate the license
Show answer & explanation

Correct: B She cannot receive a license until she is at least 18

California requires all salesperson applicants to be at least 18 years old. Passing the exam before age 18 does not entitle the applicant to a license; she must wait until she meets the age requirement.

Q3 of 20 Licensing & Regulation

A listing agent knows a buyer has strong emotional attachment to the property and tells the seller to hold firm on price. The agent represents both parties without disclosure. Which section of the license law is violated?

  1. §10176 — secret profit
  2. §10177 — failure to supervise
  3. §10177 — false advertising
  4. §10176 — undisclosed dual agency
Show answer & explanation

Correct: D §10176 — undisclosed dual agency

Bus & Prof Code §10176(d) specifically prohibits acting as agent for more than one party in a transaction without the knowledge or consent of all parties. Other §10176 subsections cover separate violations (secret profit, misrepresentation); §10177 covers a different category of misconduct.

Q4 of 20 Licensing & Regulation

What is the primary purpose of California's Real Estate Recovery Fund?

  1. Reimburse the DRE for investigation and prosecution costs
  2. Fund continuing education grants for low-income licensees
  3. Compensate victims harmed by licensee fraud when the licensee cannot pay
  4. Pay disciplinary fines imposed on suspended brokers
Show answer & explanation

Correct: C Compensate victims harmed by licensee fraud when the licensee cannot pay

The Recovery Fund — officially the Consumer Recovery Account — compensates consumers who are victims of a licensee's fraud, misrepresentation, or deceit when the licensee is unable to satisfy a civil judgment.

Q5 of 20 Licensing & Regulation

Which California agency administers and enforces the Fair Employment and Housing Act (FEHA) in housing matters?

  1. Office of the Attorney General
  2. Department of Consumer Affairs
  3. Civil Rights Department
  4. Department of Real Estate
Show answer & explanation

Correct: C Civil Rights Department

FEHA is administered by the Civil Rights Department (CRD), formerly the Department of Fair Employment and Housing (DFEH). The DRE enforces the real estate license law but the CRD handles FEHA fair housing complaints.

Q6 of 20 State Practice

A California buyer's agent represents only the buyer throughout a transaction. Which agency relationship does this describe?

  1. Dual agent
  2. Buyer's agent
  3. Seller's subagent
  4. Transaction coordinator
Show answer & explanation

Correct: B Buyer's agent

A buyer's agent represents solely the buyer's interests. California's agency-disclosure law (Civil Code §§2079.13–2079.24) requires cooperating agents to disclose and confirm which party they represent; in modern practice cooperating agents nearly always act as buyer's agents rather than as subagents of the listing broker, though the confirmation still permits a selling agent to act for the seller.

Q7 of 20 State Practice

A listing agent learns the seller owes more on the property than the asking price. The seller asks the agent to keep this quiet. What must the agent do?

  1. Withdraw from the listing immediately
  2. Disclose to buyers that the liens against the property exceed the sale price
  3. Inform the DRE of the situation
  4. Respect the seller's request for confidentiality
Show answer & explanation

Correct: B Disclose to buyers that the liens against the property exceed the sale price

When the debt against a property exceeds the sale price, the deal cannot close without the lender's cooperation (a short sale) or a large cash contribution from the seller. In Holmes v. Summer (2010), the California Court of Appeal held that a listing agent must disclose this over-encumbrance to the buyer because it directly threatens the buyer's ability to close. A seller's ordinary financial details are confidential, but facts that jeopardize the transaction itself must be disclosed.

Q8 of 20 State Practice

A salesperson receives an earnest money check on a Friday afternoon. By when must the funds be deposited into the trust account?

  1. Within 5 calendar days
  2. By end of that business day
  3. Before the offer is accepted
  4. Within 3 business days of receipt
Show answer & explanation

Correct: D Within 3 business days of receipt

California law requires trust funds to be deposited within 3 business days of receipt. This timeline starts when the agent receives the funds, not when the offer is accepted.

Q9 of 20 State Practice

A seller is selling a 6-unit apartment building in California. Is a Transfer Disclosure Statement required?

  1. No, TDS is optional for properties with more than 4 units
  2. Yes, TDS is required for all residential sales
  3. No, TDS applies only to 1-4 unit residential properties
  4. Yes, but only for buildings built before 1978
Show answer & explanation

Correct: C No, TDS applies only to 1-4 unit residential properties

The TDS is mandatory only for sales of 1-4 unit residential properties. A 6-unit building exceeds that threshold and is therefore exempt from the TDS requirement.

Q10 of 20 State Practice

How many statutory zones are covered by California's Natural Hazard Disclosure Statement?

  1. 3
  2. 4
  3. 6
  4. 8
Show answer & explanation

Correct: C 6

The California NHD Statement covers exactly 6 statutory zones: Special Flood Hazard Area, Dam Inundation Zone, Very High Fire Hazard Severity Zone, State Fire Responsibility Area, Earthquake Fault Zone (Alquist-Priolo), and Seismic Hazard Zone.

Q11 of 20 State Practice

Under AB 1482, what is the maximum annual rent increase a landlord may charge for a covered unit?

  1. 3% plus local CPI, not to exceed 8%
  2. 10% flat rate statewide
  3. 5% flat rate statewide
  4. 5% plus local CPI, not to exceed 10%
Show answer & explanation

Correct: D 5% plus local CPI, not to exceed 10%

AB 1482 (Tenant Protection Act) caps annual rent increases at 5% plus local CPI, with a maximum combined cap of 10%. This applies to covered residential rentals throughout California.

Q12 of 20 State Transactions

A California buyer and seller negotiate a contract on a non-CAR form drafted by the buyer's attorney. Is this contract enforceable?

  1. Yes, but only if both parties are represented by attorneys
  2. No, DRE regulations require use of approved forms for all transactions
  3. No, only CAR forms are legally valid in California residential sales
  4. Yes, CAR forms are the industry standard but not legally mandated
Show answer & explanation

Correct: D Yes, CAR forms are the industry standard but not legally mandated

Unlike Texas (where TREC forms are mandatory), California does not legally require use of CAR forms. The CAR Residential Purchase Agreement is the industry standard, but parties may use other written contracts that satisfy the Statute of Frauds.

Q13 of 20 State Transactions

A buyer's lender requires the escrow holder to be licensed. Which agency licenses independent escrow companies in California?

  1. California Bureau of Real Estate Appraisers
  2. California Department of Insurance
  3. California Department of Financial Protection and Innovation
  4. California Department of Real Estate
Show answer & explanation

Correct: C California Department of Financial Protection and Innovation

Independent escrow companies in California are licensed by the Department of Financial Protection and Innovation (DFPI). The DRE licenses real estate brokers, who may conduct non-independent escrow.

Q14 of 20 State Transactions

In a California trust deed, which party holds bare legal title to the property as a neutral holder during the loan term?

  1. Escrow officer
  2. Trustee
  3. Beneficiary
  4. Trustor
Show answer & explanation

Correct: B Trustee

The trustee holds bare legal title as a neutral third party. The trustor (borrower) retains equitable title, and the beneficiary (lender) holds the promissory note. This three-party structure distinguishes a trust deed from a mortgage.

Q15 of 20 State Transactions

A first-time buyer with moderate income wants help with a down payment. Which California state agency specifically offers subordinate loans for down payment assistance?

  1. Cal-OSBA
  2. DFPI
  3. CalVet
  4. CalHFA
Show answer & explanation

Correct: D CalHFA

The California Housing Finance Agency (CalHFA) offers first mortgage programs at below-market rates and subordinate (second) loan programs for down payment and closing cost assistance for first-time and low-to-moderate income buyers.

Q16 of 20 State Transactions

A California spouse uses her salary to purchase a rental property during marriage, taking title in her name only. Her husband claims an interest. Who is correct?

  1. Wife has sole ownership because title is in her name only
  2. Husband has a community interest because marital earnings are community property
  3. Husband has an interest only if he contributed to the purchase
  4. Neither spouse owns it — marital property requires joint title
Show answer & explanation

Correct: B Husband has a community interest because marital earnings are community property

California is a community property state. Property acquired with earnings during marriage is community property regardless of whose name is on title. Each spouse owns an equal one-half interest by operation of law.

Q17 of 20 State Transactions

A California home was purchased in 1995 for $200,000. Under Proposition 13, what is the maximum assessed value increase allowed per year?

  1. 5% or the county's average appreciation rate
  2. 3% per year
  3. The greater of 2% or inflation
  4. The lesser of 2% or the change in CPI
Show answer & explanation

Correct: D The lesser of 2% or the change in CPI

Proposition 13 limits annual increases in assessed value to the lesser of 2% or the change in the California Consumer Price Index (CPI). This protects long-term owners from rapid tax increases even when market values soar.

Q18 of 20 State Transactions

A farmer owns land adjacent to the Sacramento River. She has never applied for a government permit, yet she claims the right to use river water for irrigation. Which water right doctrine supports her claim?

  1. Appropriative rights — first in time, first in right
  2. Correlative rights — proportional share for overlying owners
  3. Riparian rights — reasonable use by adjacent landowners
  4. Pueblo rights — historical city water entitlements
Show answer & explanation

Correct: C Riparian rights — reasonable use by adjacent landowners

Riparian water rights attach to land adjacent to a watercourse. The adjacent landowner has the right to make reasonable use of the water without a government permit, based purely on the property's location alongside the stream or river.

Q19 of 20 Licensing & Regulation

A broker suspects a competitor is operating without a license and files a complaint with the DRE. Which Commissioner power is most directly invoked?

  1. License issuance authority
  2. Investigation and discipline authority
  3. Advisory commission oversight
  4. Rulemaking authority
Show answer & explanation

Correct: B Investigation and discipline authority

The Commissioner holds investigation and discipline authority, which includes the power to investigate complaints about unlicensed activity and impose sanctions such as desist and refrain orders.

Q20 of 20 Licensing & Regulation

After passing the salesperson exam, James does not yet have a supervising broker. Which best describes his status?

  1. He may work independently until he finds a broker within 90 days
  2. His license is inactive and he cannot practice until sponsored by a broker
  3. He can accept referral fees but may not list or show property
  4. He must retake the exam if he is not sponsored within six months
Show answer & explanation

Correct: B His license is inactive and he cannot practice until sponsored by a broker

A California salesperson must work under a sponsoring broker. Without an employing broker, the license is inactive and the salesperson cannot engage in licensed real estate activities.

Want the rest of California's 1,090-question bank?

The RealReady app has all 1,090 questions covering both national real estate principles and California-specific law. The full app also includes:

  • Short articles that walk you through the why behind each topic
  • A missed-question drill mode
  • Detailed explanations on every question
  • Progress tracking with per-category accuracy

Unlike other real estate prep apps, we don't cut off access or charge a monthly subscription fee. It's a one-time $17.99, and it's yours forever.

About the exam

More about the California real estate exam

About half of California real estate exam-takers don't pass on their first attempt. Because there are no separate national and state portions, every question can blend general real estate principles with California-specific law, so memorizing national content alone won't be enough to pass.

California tests its own rules in ways a national course never touches. Its community property rules, Proposition 13 and 19, agency disclosures, the Consumer Recovery Account (better known as the Recovery Fund), earthquake and coastal-zone disclosures, and DRE enforcement powers all show up on the exam. None of that looks like the material a candidate in a neighboring state studies. A generic real estate practice test won't cut it. You need California-specific practice questions.

FAQ

California real estate exam: your questions answered

How many questions are on the California real estate exam?

The California Real Estate Salesperson Examination has 150 multiple-choice questions. The DRE administers it as a single unified test, with no separate national portion. You have three hours to complete it.

What's the passing score for the California real estate exam?

70%, which is 105 of 150 questions correct. The DRE doesn't curve and there's no partial credit, so every question on your practice test matters.

How much does the California real estate exam cost?

The salesperson examination fee is $100 per attempt as of July 1, 2024. If you pass, the salesperson license fee is an additional $350, and the license is valid for four years before renewal.

How long is the California real estate exam?

Three hours (180 minutes) for the salesperson exam. The DRE administers it at testing centers across the state, and you'll find out whether you passed before you leave.

Who administers the California real estate exam?

The California Real Estate Salesperson Examination is administered directly by the California Department of Real Estate (DRE), not an outside testing vendor. You register and schedule your exam date through the DRE.

Is the California real estate exam hard?

The first-time pass rate hovers around 50%, which gives you a sense of the difficulty. The questions aren't tricky for the sake of being tricky; they're written to test whether you actually understand California real estate law and practice. Most people who fail aren't lazy; they underestimated how much California-specific material is on the test (community property, Prop 13/19, agency disclosures, the DRE's role) and over-prepared on national principles. Honest practice on a California-specific practice exam is the difference between passing on the first try and retaking the $100 exam.

What's on the California real estate exam?

The 150-question DRE exam covers seven areas: property ownership and land use controls (about 15% of questions); laws of agency and fiduciary duties (about 17%); valuation and market analysis (about 14%); financing (about 9%); transfer of property (about 8%); practice of real estate and mandated disclosures (about 25%); and contracts (about 12%). California-specific law is woven into nearly every area, particularly community property, Proposition 13 and 19, the Recovery Fund (officially the Consumer Recovery Account), and DRE disciplinary procedures.

What's the best way to prepare for the California real estate exam?

After finishing your 135-hour pre-license course, the highest-leverage thing you can do is grind through California-specific practice questions with honest feedback on every miss. Generic real estate practice tests will help with national principles but won't catch you on California's unique rules. The RealReady app gives you the full bank of California questions, plus progress tracking and a missed-question mode so you can drill what you're weak on. Most users study 30-60 minutes a day for 2-4 weeks before sitting the DRE exam.

Is RealReady free?

The 20 California practice questions on this page are free, no account or signup needed. Unlocking the rest of the California bank is a single in-app purchase you pay once and own, with no recurring charge and no time limit on access.

Does RealReady cover the California real estate exam?

Yes. RealReady has a dedicated California question bank built for the California real estate exam, covering the national principles every candidate sees plus the California law that trips people up, like community property rules, Proposition 13 and 19, and the Recovery Fund (officially the Consumer Recovery Account).

Is RealReady a real estate license course?

No. RealReady is exam practice, not a pre-license course, so it doesn't count toward California's required pre-license education hours. Use it after or alongside your coursework to drill realistic practice questions and find your weak spots before exam day.