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California Real Estate Salesperson Practice Exam

What This Practice Exam Covers

The California Real Estate Salesperson licensing exam consists of 150 questions answered in 180 minutes, with a passing score of 70% — meaning you need at least 105 correct answers. Questions are distributed across seven topic areas defined by the California Department of Real Estate (DRE), ranging from agency law and contracts to property valuation and fair housing.

This practice exam gives you two options:

Free practice exam: 10 questions per attempt, drawn from a limited question pool. You can retake it as many times as you want to get comfortable with the format, phrasing, and difficulty level — no purchase required.

Full practice exam (paid): 150 questions, 180-minute time limit — an exact mirror of the real exam experience. Questions are pulled from a pool of 764+ items, so each attempt generates a unique exam. You won't see the same test twice. Every question maps to the official DRE topic and subtopic framework.

Start with the free exam. When you want to test yourself seriously, upgrade to the full version.

What You'll Be Tested On

Practice of Real Estate and Disclosures — 38 items

This is the heaviest section and the one most candidates underestimate. You need to know trust account management in detail: what funds go in, when they go in, and what constitutes commingling or conversion. Fair housing laws require you to distinguish between federal and California-specific protections — California adds additional protected classes beyond the federal seven. Truth in advertising questions test whether specific ad language violates the Business and Professions Code. Record-keeping requirements ask how long different documents must be retained. Agency supervision questions address what a broker must do to properly supervise salespersons. Finally, know the boundary between permitted and prohibited activities of unlicensed sales assistants — this subtopic generates more tricky questions than its size suggests.

Laws of Agency and Fiduciary Duties — 26 items

Expect questions on how agency is created (express, implied, ratification), the fiduciary duties owed to principals (care, obedience, loyalty, disclosure, accounting, confidentiality — COLDAC), and the rules around dual agency disclosure in California. The independent contractor vs. employee distinction appears here: salespersons are agents of the broker for real estate law purposes but may be independent contractors for tax purposes. Know when agency terminates — by completion, expiration, mutual consent, or operation of law — and what happens to obligations after termination.

Property Ownership and Land Use Controls and Regulations — 22 items

This section tests classes of property (real vs. personal, fixtures), property characteristics (immobility, indestructibility, uniqueness), and types of ownership (joint tenancy, tenancy in common, community property, community property with right of survivorship). You need to read legal descriptions — metes and bounds, lot and block, rectangular survey — and identify errors or what they describe. Encumbrances include easements (appurtenant, in gross, statutory like the Civil Code Section 801.5 solar easement), liens, and deed restrictions. Government rights in land covers police power, eminent domain, taxation, and escheat.

Property Valuation and Financial Analysis — 21 items

Three valuation approaches appear constantly: sales comparison, cost, and income. For the income approach, know gross rent multiplier (GRM), net operating income (NOI), and capitalization rate calculations. The cost approach requires understanding depreciation — physical, functional, and external. Financial analysis questions may ask you to calculate loan-to-value ratios, debt service coverage, or interpret an amortization scenario. These are calculation-heavy questions that punish rushing.

Contracts — 18 items

Know the four elements of a valid contract (offer, acceptance, consideration, capacity), plus the statute of frauds requirement that real estate contracts be in writing. Listing agreements questions test the differences between exclusive right to sell, exclusive agency, and open listings. Purchase contracts questions address contingencies, liquidated damages, and default remedies. The section also covers promissory notes and when a note may be considered a security under California law.

Financing — 13 items

Understand the difference between a mortgage and a deed of trust, the role of the trustee, and foreclosure procedures (judicial vs. non-judicial, trustee's sale). Know common loan types — conventional, FHA, VA, Cal-Vet — and their distinguishing features. Financing/credit laws include RESPA, Truth in Lending Act (Regulation Z), and the Equal Credit Opportunity Act. Be ready to identify which law applies to which scenario.

Transfer of Property — 12 items

Deed requirements and types (grant deed, quitclaim deed, warranty deed) are tested directly. Know what each deed does and does not warrant. Title insurance questions distinguish between a standard and extended coverage policy. Escrow questions cover what escrow holds, who gives instructions, and when escrow closes. Tax aspects include transfer taxes, Proposition 13 reassessment triggers, and the Section 1031 exchange concept. Transfer through court supervision covers probate sales and their unique requirements.

Worked Sample Questions

Question 1 — Practice of Real Estate and Disclosures

Which of the following acts by a real estate licensee constitutes prohibited panic selling under California fair housing regulations?

• A. Advertising a property's proximity to schools and public transportation
• B. Soliciting listings by creating fear regarding the prospective entry of persons of another race or national origin into an area
• C. Offering a reduced commission rate to attract listings in a slow market
• D. Refusing to list a property because the seller's asking price is unreasonably high

Correct Answer: B

Commissioner's Regulation 2781 specifically prohibits soliciting sales or rental listings, making statements creating fear or alarm, or acting in any way to induce the sale or lease of real property through representations regarding the present or prospective entry of persons of another race, color, sex, religion, ancestry, marital status, or national origin into an area. This is the statutory definition of panic selling (also called blockbusting). Options A, C, and D describe ordinary business decisions with no discriminatory component. Source: Commissioner's Regulation 2781

Question 2 — Laws of Agency and Fiduciary Duties

What is the legal relationship between a real estate broker and their salespersons regarding independent contractor status in California?

• A. Salespersons can be independent contractors for all purposes including real estate law compliance
• B. Salespersons are agents and employees of the broker for real estate law purposes but may be independent contractors for tax and labor law purposes
• C. Salespersons must always be treated as employees and cannot be independent contractors
• D. Independent contractor status eliminates the broker's supervision responsibilities

Correct Answer: B

The distinction matters on the exam because it's a two-part rule: the broker retains full supervisory responsibility and the salesperson is the broker's agent for dealings with the public, regardless of any independent contractor agreement. That same agreement can govern the tax and compensation relationship. Option D is a common wrong answer — supervision obligations do not disappear. Source: Reference Material page 5, section 3. Independent Contractor Defined

Question 3 — Property Ownership and Land Use Controls and Regulations

In California, a solar easement created under Civil Code Section 801.5 is designed to protect which of the following?

• A. The right to install solar panels on a neighbor's roof
• B. Direct and unimpaired sunlight to facilitate the operation of a solar energy system
• C. The right to sell excess solar energy to the local utility company
• D. The right to remove trees on adjacent properties that block sunlight

Correct Answer: B

Civil Code Section 801.5 creates a specific statutory easement to ensure solar collectors receive direct and unimpaired sunlight. It protects access to sunlight — not the right to act on a neighbor's property or profit from energy sales. Options A, C, and D all describe rights that go beyond what this statute grants. Source: Ca Code Excerpts — Civil Code Section 801.5, Solar Easement Purpose

How to Read Your Score

The passing threshold is 70% — 105 correct out of 150. On your first practice attempt, treat your score as a diagnostic, not a verdict. Most people score lower than they expect, and that's useful information.

Look at your results by topic. If you scored 85% on Financing but 52% on Practice of Real Estate and Disclosures, you know exactly where your study hours belong. The weighting matters too: a weak score on Practice of Real Estate and Disclosures (38 items) costs you far more than the same percentage weakness on Transfer of Property (12 items).

Be honest with yourself about scores near the passing line. Scoring 72% on a practice exam does not mean you're ready — real exam conditions add pressure, and the question pool on the actual exam may emphasize areas where your knowledge is thinner. Aim to hit 80%+ consistently across multiple attempts before you schedule your real exam. Use each retake (with the full 764+ pool) to surface new questions and expose remaining gaps rather than to feel reassured by a familiar question set.

Where Candidates Lose Points

Misreading fair housing scenarios. Practice of Real Estate and Disclosures carries 38 items. Candidates often confuse federal protected classes with California's additional protected classes, or mistake a neutral business decision for a discriminatory one — and vice versa.

Skipping steps in valuation calculations. Property Valuation and Financial Analysis questions that involve NOI, cap rate, or GRM require multiple arithmetic steps. Candidates who rush circle a number that appeared in an intermediate step rather than the final answer.

Conflating deed types. In Transfer of Property, grant deeds and quitclaim deeds appear in scenarios designed to test whether you know what each one warrants. Reading too fast causes candidates to apply the wrong warranty rule.

Misidentifying agency duties. Laws of Agency questions often present a scenario and ask which fiduciary duty was breached. Candidates who haven't memorized the specific duties — and what each one requires — guess based on what "sounds right."

Time pressure on the back half. At 180 minutes for 150 questions, you have 72 seconds per question. Candidates who spend extra time on early calculation questions often rush Contracts and Transfer of Property questions at the end, where careful reading is essential.

Underestimating independent contractor rules. This subtopic appears straightforward but generates wrong answers because candidates assume the independent contractor label changes a broker's legal obligations — it does not.

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