Free California Real Estate Practice Exam Questions (January 2025) 150+

California Real Estate Exam

1 / 150

Typically a trust is a _____ -party relationship.

2 / 150

The “time is of the essence” contract clause in real estate contracts generally has to do with what?

3 / 150

The Civil Rights Act of 1866 prohibits discrimination in real estate based on:

4 / 150

Which of the following best describes a balloon payment?

5 / 150

What is the total quantity that buyers are willing to buy at a given time at certain prices?

6 / 150

Choose the best answer. A lawsuit for inverse condemnation may be brought by:

7 / 150

The execution date or date executed is the day a contract is signed. The effective date is what? Choose the best answer.

8 / 150

In an offer to purchase property, the buyer states, "If we cannot obtain a mortgage loan for 4.5 percent or less, we will not purchase the property and expect the earnest money to be refunded in full." This is an example of what?

9 / 150

A contract for the sale of real estate that does not state the consideration to be paid for the property and is not signed by the parties is considered what?

10 / 150

Antitrust laws prohibit competing brokers from all of the following except:

11 / 150

Which of the following real estate contract clauses is typically seen in blanket mortgages and allows for the freeing of all or part of a property from a claim through a proportional or full amount of the mortgage being paid off?

12 / 150

What is the highest form of real estate ownership that is recognized by law, in which the owner can enjoy the property to its fullest extent?

13 / 150

In real estate, alienation is best described as:

14 / 150

The owner of a secluded area adjacent to the ocean noticed that people from the local town walked along the shore in front of his property. The owner learned that the local citizens had been walking along this beach for half a century. The owner went to court to try to stop people from walking along the water's edge in front of his property. The owner is likely to be:

15 / 150

Using a trust typically has advantages and disadvantages. One of the main advantages of Land Trusts are:

16 / 150

A collection of federal and state government laws that regulate the conduct and organization of business corporations, normally to promote fair competition for the benefit of consumers.

17 / 150

Complete the following statement. The rescission of a contract occurs when:

18 / 150

A property owner enters into an exclusive agency listing with an agent. The seller ends up obtaining a buyer for the house themselves. Is the agent entitled to compensation?

19 / 150

Requires public accommodations to remove barriers in existing buildings such as adding braille markings to elevator buttons, is a requirement of which law?

20 / 150

What is the outcome when a purchaser signs a purchase agreement and gives the seller's broker a large check?

21 / 150

Which of the following best describes the acceleration clause?

22 / 150

A property owner enters into a listing agreement with an agent. Another agent obtains a buyer for the house, and the first agent does not receive a commission. The listing agreement between the first agent and the property owner was probably

23 / 150

Aaron can't get to his property from a public road without crossing over his neighbor Ron's property. In this situation, Aaron needs a/an:

24 / 150

Holding earnest money without depositing it, is what?

25 / 150

Johnny is purchasing a house and does not want to purchase all of the furniture that is being left behind. He signs the contract on Tuesday, and on Thursday changes his mind about the furniture. He calls his agent, and they add the furniture to the contract. What is this an example of?

26 / 150

A legal process in which a lender attempts to recover the balance of a loan from a borrower who has stopped making payments to the lender by forcing the sale of the asset:

27 / 150

A double net lease is a rental agreement where:

28 / 150

What party usually pays the loan origination fee on a Federal Housing Administration (FHA) loan?

29 / 150

How many hours of continuing education are required for California real estate salesperson's and brokers?

30 / 150

What is the key difference between a Less than Freehold Estate and a Freehold estate is

31 / 150

What is the difference between commingling and conversion in real estate?

32 / 150

The California Act that prohibits discrimination by all California businesses is the:

33 / 150

If a contract has prepayment penalties, they can be found in which real estate contract clause?

34 / 150

Which of the following statements is TRUE about trusts and trustees?

35 / 150

Tenants by the Entirety and Community Property both generally pertain to

36 / 150

Which of the following real estate contract clauses establishes order of priorities of financial claims (liens)?

37 / 150

Philip has a contract with his neighbor Jessica for lawn service. Philip can no longer mow the lawn due to an ankle injury. Paul, Jessica's other neighbor, agrees to carry out the terms of Philips contract. In order to do this, Jessica must substitute Philip's name with Pauls on the contract. What is this an example of?

38 / 150

When talking about business and professional ethics, as a licensed real estate agent, it is important to make sure:

39 / 150

As a listing agent, what obligations do you owe to an unrepresented buyer?

40 / 150

Prior to settlement, a California broker discovers dry rot in the floor joists. The broker should:

41 / 150

In a typical real estate market, if the demand for commercial office space declines and the supply of office space also declines at the same ratio, market rent per square foot should:

42 / 150

Which of the following real estate contracts is a service contract?

43 / 150

In the appraisal of a building constructed in the 1930s, the cost approach would be the least accurate method because of difficulties in

44 / 150

Who is most likely to win a suit for specific performance?

45 / 150

An example of an antitrust violation is

46 / 150

Which of the following contracts would best be described as a contract in which only one party makes a promise to perform an action?

47 / 150

Who or what determines the amount of an earnest money deposit?

48 / 150

A seller is asked whether any known plumbing defects exist on her property. She replies that to the best of her knowledge there are no plumbing defects. However, unknown to her the pipes are corroded and due for replacement. Is the seller in violation of her disclosure responsibilities?

49 / 150

Any loss in the value of a property over time from any cause.

50 / 150

The fact there is a limited amount of land on earth represents what essential element of value?

51 / 150

What is the LAST requirement in the process of offer and acceptance that creates an executory contract?

52 / 150

On which of the following dates do California real property taxes become a lien on the subject property?

53 / 150

Under these rights, all landowners whose properties adjoin a river or stream, have the right to make reasonable use of it as it flows through or over their properties.

54 / 150

What form of legal land description uses a plat map?

55 / 150

Which of the following would generally constitute an antitrust violation?

56 / 150

This act, allowed greater control for the EPA to control contaminant levels, take legal action against public water auth. for violations, and require periodic water testing and notification to state authority and homeowners if contaminated.

57 / 150

According to the Do Not Call list and Established Business Relationship (EBR) Rules, how many months does a real estate professional have to call an expired listing client to solicit new business (referral)?

58 / 150

What is the general technique of determining three-dimensional positions of points and the distances and angles between them?

59 / 150

In order for a month-to-month tenancy to be legally valid which of the following MUST the contract include?

60 / 150

When an asset is pledged as collateral to secure a loan what is it called?

61 / 150

Which of the following would not be considered real property?

62 / 150

It is the _____ duty to explain the purchase agreement and to not mislead any parties.

63 / 150

Which term refers to the packaging of a number of mortgage loans for sale in the secondary mortgage market by a financial institution or mortgage banker who originated the loans?

64 / 150

What is the final step of the real estate appraisal process in which the appraiser weighs each appraisal approach and determines which one is most relevant and should be used?

65 / 150

The ability to buy and sell is also known as what essential element of value?

66 / 150

There are three different main approaches that appraisers use while they make an appraisal. What are they?

67 / 150

Which of the following can be achieved by dividing the price of the property by the rent that is produced?

68 / 150

If a buyer refuses to go ahead with a purchase of property which he has signed a contract, what usually happens to the earnest money?

69 / 150

What is an item on a property that is installed by the tenant, and is related to the tenant's business classified as?

70 / 150

If a legal description is too long to include in the body of a sales contract, a real estate professional should do what?

71 / 150

If a seller rejects a written offer made by a buyer, changes the terms of the offer, and has the new offer delivered to the buyer, it is considered what?

72 / 150

In California, the concept that a husband and wife are equal partners, and that any property acquired is considered to be obtained by mutual effort, is called

73 / 150

What is the difference between a testate estate and an intestate estate?

74 / 150

At the very minimum advertising property or services by real estate professionals, should include what?

75 / 150

A married couple intends to purchase property, but only if they can qualify for a mortgage loan at a reasonable rate. The qualification is

76 / 150

The term "Licensee," is commonly used in real estate law. A licensee is just:

77 / 150

In common law, a deed is any legal instrument in writing which passes, affirms or confirms an interest, right, or property and that is signed, attested, delivered, and in some jurisdictions, sealed. It is commonly associated with transferring title to property. Within deeds, covenants are:

78 / 150

An example of economic obsolescence in real estate is

79 / 150

Upon passing the California State License Examination the applicant has how long to apply for their real estate license?

80 / 150

A real estate contract can be rescinded because of what?

81 / 150

What specific formula would be used to estimate the value of a property using the income approach?

82 / 150

Generally speaking, what happens when the supply of available houses in an area increases significantly?

83 / 150

An appraiser has been hired to prepare an appraisal report of a property for loan purposes. The property is a 25-year-old strip mall. To which approach to value should the appraiser give the greatest weight when making this appraisal?

84 / 150

CRV stands for Certificate of Reasonable Value and is issued by who?

85 / 150

A real estate agent advertised a home for $250,000. When a Chinese couple asked the agent for the price of the house. The agent told them the seller wanted $260,000 instead. Under the federal Fair Housing Act of 1968, such a statement is

86 / 150

Which type of lien is a claim imposed against a property without the consent of its owner?

87 / 150

There are three main forms of depreciation, what are they?

88 / 150

Usually, the appraiser is hired by the:

89 / 150

What of the following is required by the Americans with Disabilities Act(ADA)?

90 / 150

What is a written supplement or amendment to an existing will such as one affecting the transfer of real estate upon death?

91 / 150

Which of the following enforces all federal environmental rules and regulations?

92 / 150

A property owner acquired the ownership of land that was deposited by a river running through his property by what?

93 / 150

Mortgage points, also known as discount points, are

94 / 150

If a leased premises becomes uninhabitable deliberately in an attempt to remove the tenant. What is this action called?

95 / 150

Which of the following fits the description? "A mortgage loan available for military service members, veterans, and eligible surviving spouses; which often comes with better terms than a traditional mortgage."

96 / 150

A contract that legally binds two or more parties together, to specific obligations, that create a legally binding contract between the buyer and the seller.

97 / 150

Which of the following best describes a blind offer?

98 / 150

Liquidated damage is most likely to be found in which of the following documents?

99 / 150

Fees that the buyer pays to close the deal are called:

100 / 150

The period over which a property may be profitably utilized is called its:

101 / 150

When, if all, can an executed contract be assigned?

102 / 150

Steve (a real estate agent of five years) was at his local coffee shop with some agents from other offices. The subject of commissions came up, and agents began to compare their commission rates. What should Steve do?

103 / 150

Which of the following statements does NOT correctly describe a fiduciary?

104 / 150

A lender agrees to release the first borrower from all financial obligations and let a second buyer be responsible for the repayment of the debt. What is this an example of?

105 / 150

How many miles does a township contain?

106 / 150

The real estate contract clause that almost always begins with the words "to have and to hold."

107 / 150

Local zoning ordinances often regulate all of the following except

108 / 150

Economic life is the length of time during which a piece of property may be put to profitable use. Economic life is usually:

109 / 150

Mrs Thompson hired a broker to find her a 100+ unit apartment complex for sale. Upon finding one she liked, she made an offer for $2.5 million to include all the personal property as well. In order to include all the personal property Mrs Thompson needs a/an:

110 / 150

What is the illegal action or practice of lending money at unreasonably high rates of interest?

111 / 150

What is the difference between a lease option contract and lease purchase contract?

112 / 150

In California, redlining is prohibited by which state specific law?

113 / 150

Which of the following is a common example of real estate police power?

114 / 150

A tenant rented an apartment, signing a 12-month lease. After the lease expired, the tenant paid 1 month's rent and got a receipt. What kind of leasehold does the tenant have?

115 / 150

Altering a written document by improperly signing someone else's name to an instrument is what?

116 / 150

What is the biggest difference between private and public land use controls?

117 / 150

Tony and Taylor are two unmarried individuals who own property with equal interests and a right to survivorship. Which of the following forms of ownership would Tony and Taylor most likely have?

118 / 150

Whose obligation is it to disclose potential lead-based paint to buyers of homes built before 1978?

119 / 150

A non licensed buyer negotiated the purchase of a house. During a conversation with the seller, the seller agreed to include both the washer and the dryer, in the sale, and this was included in the sales contract. In this situation, if the seller takes the appliances, what recourse (if any) does the buyer have?

120 / 150

The amount borrowed is called the:

121 / 150

What is the proper procedure for changing a contract that already has become binding?

122 / 150

To whom does an agent always owe their fiduciary responsibility?

123 / 150

Fee packing, equity stripping, and balloon payment abuses are all examples of what?

124 / 150

How often is continuing education required for California real estate licensees?

125 / 150

By statute, California and other states have modified the potentially summary and abrupt conclusion of certain estates like estates at will. How many days does California require notice for an estate at will?

126 / 150

The Bundle of Rights include:

127 / 150

California Real Estate Law describes several prohibited practices (Commissioner’s Regulation 2780). Which of the following are NOT prohibited practices listed in the regulation?

128 / 150

Amendments and addendum are essentially the same thing, correct? Choose the best answer.

129 / 150

A seller tells the listing agent that her home was treated for termites five years ago, and that there are no termites now. Before listing the property, the agent should

130 / 150

A broker's listing on a house expired. The next day it was listed with another broker and offered in the MLS. A week later, a third licensee called the first broker and asked for the key to show the home. The broker should inform the caller that:

131 / 150

What best describes the type of agency typical in property management - in which an agent has limited power?

132 / 150

When contracting parties have signed a contract and both parties have done all they promised to do, it is called this:

133 / 150

Generally speaking, what is the most common type of contingency?

134 / 150

Mrs. Jackson signs an open listing on her home with three different brokers. In this case:

135 / 150

A salesperson working for Trinity Real Estate LLC has moved to Lotus Realty. What happens to the listings the salesperson took at Trinity Real Estate LLC?

136 / 150

An example of functional obsolescence in real estate is

137 / 150

What is the maximum paid out (per judgment) from the California Consumer Recovery Account?

138 / 150

Generally speaking, what happens when the supply of available houses in an area decreases significantly?

139 / 150

Which of the following best describes real property?

140 / 150

Title III of the Americans with Disabilities Act (ADA) impacts which type of property?

141 / 150

During a standard residential transaction, verifying ingress and egress rights is an essential part of the:

142 / 150

After smoking, this is the second leading cause of lung cancer in the United States. A naturally occurring gas that forms in rocks, soil, and water.

143 / 150

Government power is the constitutional authority and inherent power of a state to adopt and enforce laws and regulations to promote and support the public health, safety, morals, and general welfare. Escheat is

144 / 150

What is the difference between the market value of your home, and the amount you owe the lender who holds the mortgage?

145 / 150

What type of court handles the analysis and transfer of real estate or general estate assets of a deceased person (without a will)?

146 / 150

A buyer of a home was not informed that his house was on a septic tank system. The buyer has the right to:

147 / 150

When you borrow money to buy real estate, you give the lender a _____ against the property.

148 / 150

Which business structure traditionally features a board of directors?

149 / 150

Which of the following would NOT be covered under a builder's new home warranty?

150 / 150

A claim that has the appearance of having valid title, but in reality, the person either does not hold actual title, or there is a significant defect in the written documents supporting title, that makes it invalid. This an example of which legal concept:

Your score is

Hello, welcome to our California Real Estate Practice Exam.

In California, there are 150 questions on the exam. Many states have a national portion and a state portion, but California has one section combining both for a total of 150 questions. 

The two most effective study tools for the state exam are practice exams and learning the state-specific license laws. 

Our state-specific practice exam is a fantastic tool to help you grasp your state's real estate topics. It works just like the national practice exam and is updated annually. Usually, using the state practice exam is enough for students to grasp the concepts. However, if you want more, the single most important resource out there is the laws they base the questions on. 

If you haven't looked at your state's Real Estate Statutes or Regulations, it's strongly recommended.

The test makers take snippets of laws applicable to your state and use them for the questions. We use the actual state laws to create our questions, which is why some of the questions may look familiar to you. Some websites and prep providers do not, and that's the secret. You need to know your state's laws. 

Furthermore, It would be best if you read through your laws at least once, and that's the greatest advice we can give you. Trust us, we know it can be very time-consuming, but reading through each one of these will provide you with precisely the information you need to pass. 

Best of luck, reach out if you need anything,

Real Estate License Wizard Team

California Real Estate Statutes and Regulations

Here is our list of recommended Real Estate Statutes and Regulations you need to know:

California Law Home Page: https://dre.ca.gov/Publications/RealEstateLaw.html

NOTE: State websites update semi-frequently and sometimes their website URLs change. If any of the links posted below do not work, please reach out and we will update the links promptly. Thank you.


California Real Estate Exam FAQ’s

Have a question about the real estate exam? Find the answers to all your real estate license questions here:

What are California’s Real Estate License Requirements?

Real estate license requirements vary from state to state. Here are California’s requirements:

  • Must be 18 years or older.
  • Must complete a background check.
  • Must complete required state approved pre-licensing courses (135 credit hours).
  • Estimated cost of total fees and license: $305

How Hard is the California Real Estate Exam?

The real estate exam is a rigorous and challenging test that weeds out those who are not committed to being skilled agents. To pass the exam in California, you’ll need to get a score of at least 70%. With a total of 150 questions, that means the score to pass is 105.

How Many Questions Can You Miss on the California Real Estate Exam?

In California, you can miss 45 questions and still pass the real estate exam.

How Many Times Can You Take the California Real Estate Exam?

There are no limits to the number of times you can take your real estate exam, but it must be passed within two years after passing through the 135-hour pre-licensing course.


What Is on the California Real Estate Exam?

The 150 multiple-choice questions on the salesperson examination cover a variety of topics that are relevant to California real estate license law. Here is what topics you are expected to know:

California General Exam Topics:

  1. Property Ownership
  2. Land Use Controls and Regulations
  3. Valuation and Market Analysis
  4. Financing
  5. General Principles of Agency
  6. Property Disclosures
  7. Contracts
  8. Leasing and Property Management
  9. Transfer of Title
  10. Practice of Real Estate

California State Exam Topics:

  1. California State License Law
  2. California Department of Real Estate (DRE) Purpose and Guidelines
  3. California Real Estate Prohibited Practices
  4. Administrative Procedure Act
  5. Unruh Civil Rights Act
  6. Holden Act

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