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

California Real Estate Exam

1 / 150

Closing is always the ____ step in executing a real estate transaction.

2 / 150

When real estate agents alert the members of a neighborhood that it is "changing" and that they should sell their property. This is an example of what?

3 / 150

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

4 / 150

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

5 / 150

A couple owns an older home in a neighborhood that is becoming a commercial area. Because of the change in the use of the land, the couple can expect the value of their parcel to increase at some future time. This is an example of the principle of

6 / 150

Puffing is a term referring to

7 / 150

In preparing for variable expenses in a property management budget, the property manager should set up a what?

8 / 150

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

9 / 150

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

10 / 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?

11 / 150

What is the test done to locate where to place a septic system?

12 / 150

In the case of a standard tax lien who gets paid first?

13 / 150

Which of the following would be classified as “consideration” in a real estate contract?

14 / 150

A mortgagor is also known as the:

15 / 150

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

16 / 150

Is crossing out part of a printed contract allowed and legally enforceable?

17 / 150

A seller made a counteroffer and gave three days for acceptance. The very next day, the seller receives a better offer, which they want to accept. What is the first step the seller should make?

18 / 150

An individual seeking to be excused from the requirements of a zoning ordinance needs a

19 / 150

Under California law, sellers of homes must disclose known earthquake risks to buyers as part of the property sales process built before when?

20 / 150

Often required for mortgages, property insurance for a home is commonly called:

21 / 150

The Bundle of Rights include:

22 / 150

California state law requires that copies of purchase agreements, be kept by the broker for at least

23 / 150

Which answer includes 3 actual types of business structures? Choose the best answer.

24 / 150

How many miles does a township contain?

25 / 150

Josh agrees to represent Susan in the sale of her home. The listing contract states that Josh will receive a fee of $15,000 from Susan at closing, regardless of the sales price. Is this a legal and a valid form of compensation?

26 / 150

Which type of property would an appraisal use a depth table to estimate the property value?

27 / 150

According to the Do Not Call list and Established Business Relationship (EBR) Rules, how many months does a company have to call the consumer if they made an inquiry with the company?

28 / 150

An individual owned three acres of land. When she sold one acre to her friend, she reserved for herself and family an appurtenant easement over the friend's land for ingress and egress. The friend's land is what?

29 / 150

Which of the following is a private land-use control?

30 / 150

State laws differ on whether a buyer is entitled to know about:

31 / 150

Used in connection with CERCLA and the creation of The Superfund; Retroactive liability means:

32 / 150

Andrew created a life estate on his property for his sister Gabby. Under the terms of the deed, ownership of the property will last until

33 / 150

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

34 / 150

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

35 / 150

Mortgage points, also known as discount points, are

36 / 150

To whom does an agent always owe their fiduciary responsibility?

37 / 150

A real estate commission is usually based on the:

38 / 150

A man named Troy lives in California, but owns property across the U.S. He owns property in cities like Pittsburgh, Philadelphia, and D.C. Troy decides he wants to sell his property in D.C. Instead of traveling all the way to D.C. to complete all the paperwork, he calls up his buddy Tony. Troy authorizes Tony, who lives in D.C., to sell his property for him. Troy gives Tony a/an:

39 / 150

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

40 / 150

The fifth and fourteenth amendments of the U.S. Constitution permit the government to exercise its power of eminent domain. Eminent Domain is commonly used for:

41 / 150

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

42 / 150

An offer to purchase real estate becomes a contract when it is signed by the

43 / 150

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

44 / 150

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

45 / 150

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

46 / 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?

47 / 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:

48 / 150

The increase of value with the passage of time is best described as:

49 / 150

A housing development advertising its units being only available to people over 55 is what?

50 / 150

A parcel of real property that has an easement over another piece of property is best described as:

51 / 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?

52 / 150

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

53 / 150

Which business structure traditionally features a board of directors?

54 / 150

Which of the following situations would a percentage lease be most commonly used in?

55 / 150

Unlike apartments, which are leased by their tenants, condominium units are owned outright. A condominium is often shortened to

56 / 150

Which of the following statements about water rights is true? Choose the best answer.

57 / 150

While the economy is experiencing inflation, interest rates typically:

58 / 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?

59 / 150

Brokerages and real estate agents across America connect using a

60 / 150

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

61 / 150

Researching recently sold homes in the area and homes that haven't been sold in the area and comparing their prices. Is an example of

62 / 150

Which of the following best describes the term "emblements?"

63 / 150

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

64 / 150

A legal way to dissolve the relationship when the parties don't voluntarily agree to its termination is called

65 / 150

A homeowner hired a construction company to build a swimming pool at his home. The homeowner failed to pay the bill once the work was completed and the construction company filed a lien to obtain payment of the debt. The encumbrance created is called a:

66 / 150

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

67 / 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:

68 / 150

In real estate, alienation is best described as:

69 / 150

A senior housing development may refuse to rent to families if what?

70 / 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?

71 / 150

Who appoints or selects the California State Real Estate Commissioner?

72 / 150

In most cases, a tenant in an apartment holds:

73 / 150

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

74 / 150

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

75 / 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

76 / 150

According to the Do Not Call list and Established Business Relationship (EBR) Rules, a real estate professional may contact a past client for relationship building purposes when?

77 / 150

Is replacement cost and reproduction cost the same thing and if it is different, what is the difference?

78 / 150

Buyer Dan is considering buying a lot to build a single family residence. Dan hires an appraiser to appraise the lot. Which approach to value would the appraiser choose to complete the task?

79 / 150

What does the Federal Housing Administration do?

80 / 150

Which of the following fiduciary duties continues after a listing agreement expires?

81 / 150

The deed that offers the grantee the most protection. With this type of deed, the grantor makes a series of legally binding promises (called covenants) and warranties to the grantee agreeing to protect the grantee against any prior claims and demands of all persons whomsoever in regards to the conveyed land.

82 / 150

Which of the following would not be considered appurtenant?

83 / 150

Why is an oral lease for two years not generally enforceable in law?

84 / 150

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

85 / 150

The majority of homes before _______ used lead paint.

86 / 150

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

87 / 150

A property owner wishes to build a neighborhood grocery store in an area zoned for residential use. Which of the following would MOST likely be used to obtain permission to build the store?

88 / 150

All of the following will void an offer except

89 / 150

A parcel of land that is subject to an easement is best described as:

90 / 150

A buyer and seller entered into a contract, they negotiated the sale of the side lot at the same time as the transfer of the home. What is the second document called?

91 / 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?

92 / 150

An example of an antitrust violation is

93 / 150

What is Ginnie Mae’s primary responsibility?

94 / 150

Typically a warranty deed contains how many covenants?

95 / 150

Joint tenants with a right of survivorship means

96 / 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:

97 / 150

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

98 / 150

Which of the following consumers would most likely qualify and be able to derive the most benefit from refinancing their mortgage?

99 / 150

As a general rule of thumb ALL written offers must be:

100 / 150

Who administers real estate law in California?

101 / 150

Holding earnest money without depositing it, is what?

102 / 150

The best way to determine fair value.

103 / 150

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

104 / 150

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

105 / 150

By which of the following can you not lose title to your property involuntarily?

106 / 150

Which of the following is not a type of depreciation used in the cost approach?

107 / 150

The fact that land has a number of important uses is the basis for what essential element of value?

108 / 150

What is a one-of-a-kind contract that is solely between the seller and the buyer. In this arrangement, the seller gives the buyer the option to purchase property at a given price for a set period?

109 / 150

Traditionally real estate agents are paid through a fee paid for performing a transaction, called a

110 / 150

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

111 / 150

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

112 / 150

The owner of a condominium has the use of many facilities there, including a pool. Under the typical condominium arrangement, the facilities are owned by

113 / 150

Which of the following would NOT apply to the income approach in the valuation process?

114 / 150

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

115 / 150

The type of easement that is a right-of-way for a utility company's power lines is what?

116 / 150

A buyer wants to be represented by several different agents while looking at various properties. This is an example of what?

117 / 150

Three identical properties in a suburban neighborhood were listed at the same time in a market where demand was constant. According to the law of supply and demand, which property would have sold for the lowest price?

118 / 150

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

119 / 150

A lease agreement where the tenant has the right to buy the property within a specified period of time is called what?

120 / 150

Market value is

121 / 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?

122 / 150

Which of the following is an economic characteristic of real estate?

123 / 150

An example of functional obsolescence in real estate is

124 / 150

What is it called when parties have fully performed the terms of a contract?

125 / 150

Acceleration is a term associated with which type of document?

126 / 150

What form of legal land description consists of principal meridian lines that cover most states in the US, running north to south and baselines running east to west?

127 / 150

Appraiser Leo was hired to prepare a feasibility study for a 12-unit apartment complex in which the owner is considering putting in a swimming pool. Which basic principle of appraising should Leo use?

128 / 150

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

129 / 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?

130 / 150

Which of the following statements is NOT true about radon?

131 / 150

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

132 / 150

The cost of public services is distributed among real estate owners through what?

133 / 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.

134 / 150

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

135 / 150

A property owner enters into a listing agreement with an agent. The seller obtains a buyer for the house, but the agent receives a commission. The listing agreement between the agent and the property owner was probably

136 / 150

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

137 / 150

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

138 / 150

Under the terms in a mortgage, the lender must be paid in full if the property is sold to another person. This is known as the

139 / 150

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

140 / 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:

141 / 150

What is the difference between void and voidable contracts? Choose the best answer.

142 / 150

Which valuation method or appraisal approach involves comparing a property to other recently sold properties in the same area of similar size and condition?

143 / 150

Which of the following is NOT a main element of a valid real estate contract?

144 / 150

When calculating the amount of real estate taxes owed, calculations are based on what type of value?

145 / 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.

146 / 150

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

147 / 150

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

148 / 150

A real estate contract can be rescinded because of what?

149 / 150

Usually, the appraiser is hired by the:

150 / 150

Complete the statement and make it factually accurate. “In title theory states, banks or mortgage lenders hold the title of a property until it is paid in full. In lien theory states:

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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