Free California Real Estate Practice Exam Questions (November 2023) 150+

California Real Estate Exam

1 / 150

If someone is unlawfully forced to execute a contract it is called what?

2 / 150

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

3 / 150

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

4 / 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?

5 / 150

All of the following will void an offer except

6 / 150

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

7 / 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."

8 / 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?

9 / 150

Who funds the California Consumer Recovery Account?

10 / 150

Usually, the appraiser is hired by the:

11 / 150

A bilateral contract is one in which

12 / 150

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

13 / 150

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

14 / 150

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

15 / 150

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

16 / 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?

17 / 150

The best way to determine fair value.

18 / 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

19 / 150

Joint tenants with a right of survivorship means

20 / 150

An appurtenant easement has several ways of legal termination. Which of the following is NOT a valid way to terminate an easement?

21 / 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?

22 / 150

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

23 / 150

What is radioactive gas dispersed from natural decay of mineral in earth (odorless, colorless, tasteless)?

24 / 150

An example of economic obsolescence in real estate is

25 / 150

Which business structure traditionally features a board of directors?

26 / 150

Holding earnest money without depositing it, is what?

27 / 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

28 / 150

Who dictates trust accounts and when to deposit earnest money or other trust funds?

29 / 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?

30 / 150

During the listing agreement a commission of 6% is established. The house is sold for $250,000. What is the commission?

31 / 150

The Bundle of Rights include:

32 / 150

Which of the following is a lien?

33 / 150

What is the measurement or boundary between a plot of land or a building and the road onto which the plot or building fronts?

34 / 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?

35 / 150

Tenants by the Entirety and Community Property both generally pertain to

36 / 150

Which of the following might suggest that rent is too low in an apartment unit?

37 / 150

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

38 / 150

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

39 / 150

What best describes an agent hired to perform a specific duty?

40 / 150

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

41 / 150

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

42 / 150

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

43 / 150

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

44 / 150

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

45 / 150

Which of the following would generally constitute an antitrust violation?

46 / 150

A real estate commission is usually based on the:

47 / 150

Which act amended the comprehensive environmental response, compensation, and liability act (also known as CERCLA)?

48 / 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

49 / 150

An agent took a listing and later discovered that her client had previously been declared incompetent by the court. The listing is now

50 / 150

Which of the following are the main participants in real estate markets?

51 / 150

Commingling is the opposite of what?

52 / 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?

53 / 150

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

54 / 150

To whom does an agent always owe their fiduciary responsibility?

55 / 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.

56 / 150

In real estate, alienation is best described as:

57 / 150

A contract may include a clause that limits the amount of money to which the seller is entitled in case the buyer breaches the contract. What is this called?

58 / 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?

59 / 150

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

60 / 150

While the economy is experiencing inflation, interest rates typically:

61 / 150

An example of an antitrust violation is

62 / 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?

63 / 150

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

64 / 150

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

65 / 150

In real estate, a deed is best defined as:

66 / 150

An interest in real property which is held for the duration of the life of a designated person is called a

67 / 150

If a minor signs a contract to buy real estate, the resulting contract is legally what?

68 / 150

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

69 / 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?

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

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

72 / 150

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

73 / 150

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

74 / 150

A buyer was negotiating the purchase of a lot to build a new family house, the seller indicated that the land was firm enough to support the construction of a building when, in fact, the seller knew it was not. The contract is

75 / 150

What is the best definition listed for the term: “conventional loan?”

76 / 150

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

77 / 150

The statute of frauds, applies to

78 / 150

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

79 / 150

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

80 / 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?

81 / 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:

82 / 150

What best describes an agency relationship where an agent has legal authority to act on behalf of the principal?

83 / 150

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

84 / 150

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

85 / 150

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

86 / 150

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

87 / 150

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

88 / 150

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

89 / 150

What is the act of mixing the client’s funds with the broker’s own funds? This can be both legal and illegal depending on the state and circumstance.

90 / 150

What is a legally enforceable obligation that arises from one or more parties due to the parties actions, conduct, or circumstances?

91 / 150

How many miles does a township contain?

92 / 150

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

93 / 150

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

94 / 150

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

95 / 150

What is best defined as, a document in which a property owner contracts with a real estate agent to find a buyer for the owner's property?

96 / 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

97 / 150

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

98 / 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?

99 / 150

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

100 / 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.

101 / 150

If a court decides a remedy for a seller compelling them to sell the property, it is known as what?

102 / 150

Which of the following would not be considered real property?

103 / 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?

104 / 150

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

105 / 150

Real property can be converted to personal property by

106 / 150

The legal principle under which a person who does not have legal title to a property acquires legal ownership based on the continuous occupation of the property.

107 / 150

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

108 / 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:

109 / 150

Brokerages and real estate agents across America connect using a

110 / 150

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

111 / 150

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

112 / 150

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

113 / 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

114 / 150

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

115 / 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

116 / 150

An example of functional obsolescence in real estate is

117 / 150

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

118 / 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?

119 / 150

Typically a warranty deed contains how many covenants?

120 / 150

An elderly man in a nursing home, has no family and is suffering from Alzheimer’s. Because of his Alzheimers, he doesn’t remember much. Eventually, he passes away in his sleep. There is no will for the man, and again he has no family. So what happens to the money left in his savings account and his old farm that has been left untouched since he entered the nursing home?

121 / 150

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

122 / 150

The lender in a traditional mortgage loan transaction is known as what?

123 / 150

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

124 / 150

A double net lease is a rental agreement where:

125 / 150

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

126 / 150

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

127 / 150

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

128 / 150

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

129 / 150

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

130 / 150

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

131 / 150

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

132 / 150

The purpose of the California Consumer Recovery Account is to enable

133 / 150

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

134 / 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.

135 / 150

Which action is legal as a real estate agent? (Antitrust Laws)

136 / 150

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

137 / 150

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

138 / 150

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

139 / 150

After paying off a loan, the lender files what to release the lien?

140 / 150

This approach determines what the property generates in profit for it’s owner or potential owner.

141 / 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?

142 / 150

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

143 / 150

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

144 / 150

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

145 / 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?

146 / 150

Tina and Tom are two unmarried individuals who own property with equal interests and without a right to survivorship. Which of the following forms of ownership would Tina and Tom most likely have?

147 / 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

148 / 150

Earnest money should be deposited into a trust account:

149 / 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.

150 / 150

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

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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:

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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