California · Real estate exam prep
Practice California real estate questions free below. RealReady has 1,090 questions in the bank covering both national real estate principles and California state law. Pay $17.99 once and own it forever. No subscription like the other prep services.
The California real estate salesperson exam is one of the toughest in the country. The DRE administers it as a single 150-question test over three hours, with 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.
State-specific prep matters more here than almost anywhere else. California's community property rules, Proposition 13 and 19, agency disclosures, the Real Estate 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.
Below are 20 free California real estate test questions and answers from RealReady's full California bank. Each tests a specific topic with the correct answer and a plain-English explanation under the card. Read each one, commit to an answer, then reveal. Treat it like a real DRE practice test, and the ones you miss show you what to focus on next.
Get the RealReady app on iPhone, iPad, or Android for the rest of the California question bank. The full app includes short articles that walk you through the why behind each topic, detailed explanations on every question, a missed-question drill mode, and progress tracking that shows your per-category accuracy.
Practice
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.
Correct: C Business, Consumer Services, and Housing Agency
The DRE operates under the Business, Consumer Services, and Housing Agency. This placement reflects its dual role overseeing both consumer protection and housing-related licensing.
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.
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.
Correct: C Compensate victims harmed by licensee fraud when the licensee cannot pay
The Recovery Fund compensates consumers who are victims of a licensee's fraud, misrepresentation, or deceit when the licensee is unable to satisfy a civil judgment.
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.
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) effectively ended subagency in 1-4 unit residential sales, so cooperating agents today work as direct buyer's agents rather than subagents of the listing broker.
Correct: B Respect the seller's request for confidentiality
A seller's loan balance is confidential personal and financial information, not a material fact about the property's condition. Under Civil Code §2079.16, the listing agent's duty to the seller includes keeping the seller's financial position, motivations, and bargaining position confidential. The duty to disclose material facts to buyers covers property defects and known physical conditions, not the seller's debt.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
The RealReady app has all 1,090 questions covering both national real estate principles and California-specific law. The full app also includes:
Unlike other real estate prep apps, we don't cut off access or charge a monthly subscription fee. Once you buy, it's yours forever.
FAQ
The California Real Estate Salesperson Examination has 150 multiple-choice questions. The DRE administers it as a single unified test — there's no separate national portion. You have three hours to complete it.
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.
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.
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.
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.
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 Real Estate Recovery Fund, and DRE disciplinary procedures.
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.
