Free California Real Estate Practice Exam Questions (April 2024) 150+

California Real Estate Exam

1 / 150

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

2 / 150

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

3 / 150

The EPA requires real estate professionals to give purchasers and tenants of residential dwelling a pamphlet about Lead-Based paint if the dwelling was built before when?

4 / 150

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

5 / 150

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

6 / 150

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

7 / 150

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

8 / 150

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

9 / 150

The Latin phrase ad valorem comes up often when talking about property taxes. What does ad valorem mean?

10 / 150

Mortgage points, also known as discount points, are

11 / 150

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

12 / 150

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

13 / 150

Under a lease for a commercial property, a tenant agrees to pay $3,000 per month plus 4% of the gross monthly sales. This type of lease is called a:

14 / 150

What form of legal land description uses a plat map?

15 / 150

The amount borrowed is called the:

16 / 150

A real estate contract can be rescinded because of what?

17 / 150

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

18 / 150

What hazardous substance is an odorless, colorless gas that can cause death within hours of inhalation?

19 / 150

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

20 / 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:

21 / 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.

22 / 150

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

23 / 150

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

24 / 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

25 / 150

Most states, including California have abolished which of the following?

26 / 150

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

27 / 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

28 / 150

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

29 / 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?

30 / 150

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

31 / 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)?

32 / 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?

33 / 150

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

34 / 150

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

35 / 150

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

36 / 150

Which of the following best describes a balloon payment?

37 / 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?

38 / 150

What is the agency responsible for the enforcement of the Fair Housing Act?

39 / 150

A buyer gave a broker a written offer to purchase property, which contained a 14-day acceptance clause along with a $3,000 deposit. On the seventh day, before acceptance by the seller, the buyer notified the broker that they were withdrawing their offer and asked for the return of the $3,000 deposit. Which of the following statements are true?

40 / 150

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

41 / 150

Which of these meets the Department of Housing and Urban Development’s (HUD) definition of family as a protected class?

42 / 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:

43 / 150

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

44 / 150

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

45 / 150

Brokerages and real estate agents across America connect using a

46 / 150

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

47 / 150

Which of the following is a lien?

48 / 150

Typically a warranty deed contains how many covenants?

49 / 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

50 / 150

An example of an antitrust violation is

51 / 150

Who funds the California Consumer Recovery Account?

52 / 150

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

53 / 150

A bilateral contract is one in which

54 / 150

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

55 / 150

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

56 / 150

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

57 / 150

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

58 / 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?

59 / 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?

60 / 150

Which of the following best describes a blind offer?

61 / 150

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

62 / 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

63 / 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?

64 / 150

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

65 / 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?

66 / 150

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

67 / 150

All of the following will void an offer except

68 / 150

In real estate, a deed is best defined as:

69 / 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?

70 / 150

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

71 / 150

In real estate, alienation is best described as:

72 / 150

Your client signs a contract to buy a house and the seller refuses to sell the house at the very last minute. Your client still wants the house. What should your client do?

73 / 150

A real estate commission is usually based on the:

74 / 150

Which of the following BEST describes a contract that is voidable?

75 / 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?

76 / 150

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

77 / 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

78 / 150

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

79 / 150

What does the Federal Housing Administration do?

80 / 150

What is the government issued plan to guide the long-term physical development of a particular area?

81 / 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:

82 / 150

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

83 / 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.

84 / 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?

85 / 150

While the economy is experiencing inflation, interest rates typically:

86 / 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?

87 / 150

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

88 / 150

Choose the best answer. Which of the following is an example of a Special Use property?

89 / 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?

90 / 150

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

91 / 150

When you buy real property, you gain several different kinds of rights. One of which are rights called "surface rights." What are surface rights?

92 / 150

An example of functional obsolescence in real estate is

93 / 150

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

94 / 150

Which of the following best describes Eminent Domain?

95 / 150

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

96 / 150

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

97 / 150

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

98 / 150

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

99 / 150

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

100 / 150

Usually, the appraiser is hired by the:

101 / 150

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

102 / 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?

103 / 150

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

104 / 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?

105 / 150

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

106 / 150

Compliance with zoning ordinances is monitored through the issuance of

107 / 150

Acceleration is a term associated with which type of document?

108 / 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?

109 / 150

Which of the following laws prohibits discrimination in the buying, selling, renting or financing of housing. These laws prohibit discrimination based on race, religion, color, sex, disability, children, nationality and more.

110 / 150

The majority of homes before _______ used lead paint.

111 / 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?

112 / 150

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

113 / 150

Which of the following would MOST likely be considered a fixture?

114 / 150

Holding earnest money without depositing it, is what?

115 / 150

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

116 / 150

Richard is renting property from Becky. Richard is on a month to month lease agreement. This past month he did not pay his rent. Richard's interest would be classified as:

117 / 150

Which situation is legal under the Federal Fair Housing Act of 1968?

118 / 150

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

119 / 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."

120 / 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?

121 / 150

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

122 / 150

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

123 / 150

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

124 / 150

When a home is purchased using an adjustable rate mortgage or ARM, the monthly loan payment on the mortgage will:

125 / 150

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

126 / 150

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

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

The best way to determine fair value.

129 / 150

A mortgage loan that requires monthly payments of $400.00 for 15 years and a final payment of $20,000. Typically a loan structured like is called a

130 / 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?

131 / 150

Puffing is a term referring to

132 / 150

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

133 / 150

The statute of frauds, applies to

134 / 150

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

135 / 150

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

136 / 150

Which of the following would be an example of a deed restriction?

137 / 150

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

138 / 150

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

139 / 150

Market value is

140 / 150

What is the procedure used by a public or private entity with the powers granted to take privately owned real estate?

141 / 150

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

142 / 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:

143 / 150

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

144 / 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:

145 / 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?

146 / 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?

147 / 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?

148 / 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.

149 / 150

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

150 / 150

Purchase agreements come big and small, and are a crucial aspect of real estate contract law. Which of the following would be an example of a purchase agreement?

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:

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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