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

California Real Estate Exam

1 / 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?

2 / 150

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

3 / 150

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

4 / 150

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

5 / 150

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

6 / 150

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

7 / 150

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

8 / 150

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

9 / 150

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

10 / 150

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

11 / 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.

12 / 150

The best way to determine fair value.

13 / 150

A contract agreed to and signed under duress is what?

14 / 150

The majority of homes before _______ used lead paint.

15 / 150

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

16 / 150

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

17 / 150

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

18 / 150

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

19 / 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

20 / 150

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

21 / 150

A mortgagor is also known as the:

22 / 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:

23 / 150

Real property can be converted to personal property by

24 / 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?

25 / 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?

26 / 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.

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

Justin takes out a mortgage loan that requires monthly payments of $650.50 for 25 years and a final payment of $30,000. What type of loan is this?

29 / 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.

30 / 150

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

31 / 150

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

32 / 150

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

33 / 150

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

34 / 150

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

35 / 150

Who administers real estate law in California?

36 / 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?

37 / 150

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

38 / 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

39 / 150

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

40 / 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

41 / 150

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

42 / 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?

43 / 150

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

44 / 150

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

45 / 150

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

46 / 150

Which of the following is an example of Economic Obsolescence?

47 / 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

48 / 150

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

49 / 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?

50 / 150

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

51 / 150

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

52 / 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?

53 / 150

What determines who pays for what and how much at closing?

54 / 150

Brokerages and real estate agents across America connect using a

55 / 150

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

56 / 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?

57 / 150

A double net lease is a rental agreement where:

58 / 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:

59 / 150

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

60 / 150

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

61 / 150

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

62 / 150

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

63 / 150

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

64 / 150

In most cases, a tenant in an apartment holds:

65 / 150

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

66 / 150

Mortgage points, also known as discount points, are

67 / 150

Which of the following two real estate contract clauses protect the lenders in some way, usually by asking for some form of payment(insurance)?

68 / 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?

69 / 150

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

70 / 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?

71 / 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?

72 / 150

Who appoints or selects the California State Real Estate Commissioner?

73 / 150

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

74 / 150

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

75 / 150

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

76 / 150

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

77 / 150

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

78 / 150

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

79 / 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:

80 / 150

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

81 / 150

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

82 / 150

Which of the following best describes a blind offer?

83 / 150

Typically a trust is a _____ -party relationship.

84 / 150

In real estate, a deed is best defined as:

85 / 150

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

86 / 150

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

87 / 150

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

88 / 150

Appraiser Larry has a set of special-purpose and public service buildings like schools, churches, and post offices, which he needs to appraise. Which approach to value would Larry, the appraiser choose to complete the task?

89 / 150

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

90 / 150

What form of legal land description uses a plat map?

91 / 150

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

92 / 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

93 / 150

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

94 / 150

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

95 / 150

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

96 / 150

Which of the following best describes Eminent Domain?

97 / 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

98 / 150

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

99 / 150

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

100 / 150

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

101 / 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?

102 / 150

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

103 / 150

Which business structure traditionally features a board of directors?

104 / 150

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

105 / 150

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

106 / 150

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

107 / 150

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

108 / 150

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

109 / 150

In a single agency relationship a real estate broker represents who?

110 / 150

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

111 / 150

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

112 / 150

An example of economic obsolescence in real estate is

113 / 150

The person who hires or appoints an agent is called the:

114 / 150

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

115 / 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?

116 / 150

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

117 / 150

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

118 / 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?

119 / 150

Puffing is a term referring to

120 / 150

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

121 / 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

122 / 150

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

123 / 150

Which of the following would not be considered real property?

124 / 150

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

125 / 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

126 / 150

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

127 / 150

Which of the following would generally constitute an antitrust violation?

128 / 150

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

129 / 150

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

130 / 150

What type of ownership model is used for vacation real estate in which multiple purchasers own allotments of usage, typically in one-week increments, for the same property?

131 / 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.

132 / 150

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

133 / 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:

134 / 150

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

135 / 150

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

136 / 150

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

137 / 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?

138 / 150

Under agency law in California Dual Agency is

139 / 150

Which of the following is an example of Real Property?

140 / 150

Earnest money should be deposited into a trust account:

141 / 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:

142 / 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?

143 / 150

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

144 / 150

What is Fannie Mae’s primary responsibility?

145 / 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

146 / 150

Joint tenants with a right of survivorship means

147 / 150

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

148 / 150

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

149 / 150

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

150 / 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?

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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