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

California Real Estate Exam

1 / 150

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

2 / 150

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

3 / 150

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

4 / 150

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

5 / 150

An example of functional obsolescence in real estate is

6 / 150

One individual or married couple in business alone (The most common form of business structure):

7 / 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?

8 / 150

In real estate, alienation is best described as:

9 / 150

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

10 / 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:

11 / 150

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

12 / 150

Earnest money should be deposited into a trust account:

13 / 150

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

14 / 150

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

15 / 150

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

16 / 150

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

17 / 150

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

18 / 150

Which of the following best describes the acceleration clause?

19 / 150

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

20 / 150

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

21 / 150

Market value is

22 / 150

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

23 / 150

What does the Federal Housing Administration do?

24 / 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

25 / 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?

26 / 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."

27 / 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?

28 / 150

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

29 / 150

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

30 / 150

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

31 / 150

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

32 / 150

Under what situation, if any, may a lender consider age when making a lending decision?

33 / 150

An example of economic obsolescence in real estate is

34 / 150

Which of the following is a physical characteristic of real estate?

35 / 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?

36 / 150

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

37 / 150

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

38 / 150

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

39 / 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:

40 / 150

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

41 / 150

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

42 / 150

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

43 / 150

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

44 / 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

45 / 150

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

46 / 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?

47 / 150

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

48 / 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.

49 / 150

Which of the following is a lien?

50 / 150

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

51 / 150

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

52 / 150

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

53 / 150

A seller named Joan gave a buyer named Bob an option for thirty days to purchase her property for a consideration of $750. There is no anti-assignment clause in the contract. Which of the following statements is NOT true?

54 / 150

Acceleration is a term associated with which type of document?

55 / 150

Enacted in 1974, which of the following is a regulation that aims to give all legal individuals an equal opportunity to apply for loans?

56 / 150

Which of the following is an example of Economic Obsolescence?

57 / 150

A lender's refusal to lend money to potential homeowners attempting to purchase property located in predominantly minority neighborhoods is

58 / 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?

59 / 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?

60 / 150

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

61 / 150

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

62 / 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

63 / 150

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

64 / 150

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

65 / 150

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

66 / 150

Who funds the California Consumer Recovery Account?

67 / 150

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

68 / 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:

69 / 150

When a furnishing company creates materials for the construction of a house and is subsequently not paid, it may file a(n):

70 / 150

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

71 / 150

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

72 / 150

A mortgagor is also known as the:

73 / 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

74 / 150

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

75 / 150

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

76 / 150

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

77 / 150

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

78 / 150

Which business structure traditionally features a board of directors?

79 / 150

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

80 / 150

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

81 / 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?

82 / 150

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

83 / 150

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

84 / 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?

85 / 150

During your time as agent you will run into many different types of people from areas across the world. Closing is called many names depending on which region of the U.S you are from. Which of the following is NOT a legal name for closing?

86 / 150

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

87 / 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

88 / 150

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

89 / 150

Which of the following statements is NOT true about radon?

90 / 150

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

91 / 150

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

92 / 150

Who administers real estate law in California?

93 / 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?

94 / 150

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

95 / 150

In real estate, a deed is best defined as:

96 / 150

A contract agreed to and signed under duress is what?

97 / 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:

98 / 150

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

99 / 150

Holding earnest money without depositing it, is what?

100 / 150

An example of an antitrust violation is

101 / 150

Most real estate sales contracts include contingency clauses, making them what?

102 / 150

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

103 / 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?

104 / 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.

105 / 150

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

106 / 150

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

107 / 150

A real estate commission is usually based on the:

108 / 150

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

109 / 150

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

110 / 150

Mrs. Jane lives in a small residential neighborhood. 100-year-old trees surround her home, and her neighbor Mr. Joe claims the trees are on his property and is planning on cutting them down. Mrs. Jane tries to reason with Mr. Joe, but he refuses to listen. Mrs. Jane files a lawsuit that includes a court order for Mr. Joe to stop his actions until they can work something out. What type of court order is this?

111 / 150

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

112 / 150

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

113 / 150

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

114 / 150

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

115 / 150

What is Ginnie Mae’s primary responsibility?

116 / 150

Compliance with zoning ordinances is monitored through the issuance of

117 / 150

How many miles does a township contain?

118 / 150

Under the Federal Fair Housing Law, which of the following is considered discriminatory advertising?

119 / 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?

120 / 150

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

121 / 150

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

122 / 150

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

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

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

125 / 150

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

126 / 150

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

127 / 150

The best way to determine fair value.

128 / 150

Real property can be converted to personal property by

129 / 150

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

130 / 150

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

131 / 150

Mortgage points, also known as discount points, are

132 / 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?

133 / 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?

134 / 150

What is the document that defines the relationship between the broker and the seller?

135 / 150

Typically a warranty deed contains how many covenants?

136 / 150

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

137 / 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?

138 / 150

Restrictive covenants, are also known as

139 / 150

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

140 / 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:

141 / 150

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

142 / 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:

143 / 150

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

144 / 150

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

145 / 150

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

146 / 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?

147 / 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?

148 / 150

Which of the following would not be considered real property?

149 / 150

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

150 / 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:

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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