California Real Estate Salesperson Exam Overview

Welcome to OpenExamPrep's FREE California Real Estate Salesperson exam prep guide. This comprehensive resource covers California-specific regulations, licensing requirements, and state real estate laws governed by the California Department of Real Estate (DRE).

About the California Department of Real Estate (DRE)

The California Department of Real Estate (DRE) is the state agency responsible for licensing and regulating real estate professionals in California. The DRE operates under the Real Estate Law contained in the California Business and Professions Code.

DRE Structure

The DRE is headed by the Real Estate Commissioner, who is appointed by the Governor. The Commissioner has broad authority to:

• Issue, suspend, and revoke real estate licenses
• Adopt regulations to enforce the Real Estate Law
• Investigate complaints against licensees
• Conduct audits of broker trust accounts
• Take disciplinary action for violations

DRE Contact Information

California Licensing Requirements at a Glance

Pre-License Education Requirements

California requires 135 hours of college-level real estate courses from a DRE-approved school.

Required Courses

Approved Elective Courses

You may choose one of the following as your elective:

• Legal Aspects of Real Estate
• Real Estate Finance
• Real Estate Appraisal
• Property Management
• Real Estate Economics
• Real Estate Office Administration
• Escrows
• Mortgage Loan Brokering and Lending
• Computer Applications in Real Estate

Education Providers

Courses must be completed at:

• Institution accredited by Western Association of Schools and Colleges
• Comparable regional accrediting agency recognized by U.S. Department of Education
• Private real estate school with courses approved by the DRE Commissioner

2024 Course Updates

Effective January 1, 2024, any real estate practice course submitted for qualifying to take a real estate license exam must include:

• Components on implicit bias
• Fair housing component with interactive participatory role-play

Note: Statutory courses require an 18-day waiting period before attempting a final exam.

The California Real Estate Exam

The California real estate salesperson exam is administered by PSI at testing centers throughout the state, coordinated through the DRE eLicensing system.

Exam Structure

Exam Topics

The California salesperson exam covers:

Real Estate Practice (Approximately 30%)

• Agency relationships and duties
• Listing and buying procedures
• Market analysis and pricing
• Negotiations and offers
• Transaction coordination

Laws of Agency (Approximately 12%)

• Creation of agency
• Duties to principals and third parties
• Termination of agency
• Disclosure requirements

Property Ownership and Land Use (Approximately 15%)

• Estates and interests in land
• Encumbrances
• Land use controls and regulations
• Government powers (PETE)

Financing (Approximately 13%)

• Types of loans
• Mortgage instruments
• Government programs
• Finance calculations

Transfer of Property (Approximately 9%)

• Deeds and conveyances
• Title insurance
• Recording and notice
• Closing procedures

Contracts (Approximately 12%)

• Elements of valid contracts
• Types of contracts
• Purchase agreements
• Contingencies and conditions

Property Valuation and Financial Analysis (Approximately 9%)

• Appraisal methods
• Investment analysis
• Property management

Step-by-Step Licensing Process

Step 1: Meet Basic Requirements

Verify you meet California's eligibility requirements:

• At least 18 years old
• Honest and truthful - No moral turpitude violations
• Legal right to work in the United States

Step 2: Complete Pre-License Education

Complete 135 hours of DRE-approved education:

1. Enroll in a DRE-approved school
2. Complete Real Estate Principles (45 hours)
3. Complete Real Estate Practice (45 hours)
4. Complete one elective (45 hours)
5. Note: 18-day waiting period for statutory course exams
6. Receive certificates of completion

Step 3: Submit Exam Application

Submit your application through the DRE eLicensing system:

1. Create an eLicensing account at secure.dre.ca.gov
2. Complete application form RE 400A (Salesperson)
3. Upload education certificates
4. Pay the $100 exam fee

Step 4: Complete Live Scan Fingerprinting

All applicants must submit Live Scan fingerprints for a criminal background check:

Step 5: Receive Exam Eligibility

Once your application is processed:

• DRE reviews application (typically 6-8 weeks)
• Receive exam eligibility notification
• Eligibility valid for 2 years

Step 6: Schedule and Pass the Exam

Schedule your exam through eLicensing:

1. Log into your eLicensing account
2. Select exam date and PSI testing center
3. Confirm appointment
4. On exam day, arrive 30 minutes early
5. Bring valid government-issued photo ID
6. Pass with 70% or higher

Note: If you fail, there's no waiting period to retake. You can reschedule and pay another $100 exam fee.

Step 7: Apply for Your License

After passing the exam:

1. Log into eLicensing
2. Complete license application
3. Pay the $350 license fee
4. Provide sponsoring broker information (if ready)
5. License issued for 4-year term

Step 8: Work Under a Broker

California salespersons must work under a licensed broker:

• Cannot operate independently
• Broker collects and distributes all commissions
• Broker provides supervision and oversight
• Written agreement required between broker and salesperson

Total Costs Summary

Important Timelines

License Renewal

California real estate licenses are valid for 4 years and require continuing education for renewal.

First Renewal (45 hours)

Subsequent Renewals (45 hours)

Renewal Fees and Deadlines

California-Specific Considerations

California Fair Housing Laws

California has some of the strongest fair housing protections in the nation:

Mandatory Disclosures

California requires extensive disclosures including:

• Transfer Disclosure Statement (TDS) - Seller's knowledge of property condition
• Natural Hazard Disclosure (NHD) - Flood, fire, earthquake zones
• Mello-Roos Disclosure - Special assessment districts
• Lead-Based Paint Disclosure - Pre-1978 homes (federal)
• Agency Disclosure - Written disclosure of agency relationships

Proposition 13

California's Proposition 13 affects property taxes:

• Property tax limited to 1% of assessed value
• Assessment increases limited to 2% per year
• Reassessment upon sale or new construction
• Significantly impacts property values and sales

What This Guide Covers

This FREE study guide focuses on California state-specific content:

Chapter 1: California DRE & Licensing Requirements

• DRE structure and authority
• California Real Estate Law
• Licensing requirements and processes
• License maintenance and renewal

Chapter 2: California Agency Relationships

• Disclosure requirements
• Types of agency relationships
• Duties to principals and third parties
• Dual agency regulations

Chapter 3: California Contracts & Disclosures

• TDS requirements
• Purchase agreements
• California-specific provisions
• Escrow and closing procedures

Chapter 4: California Property Law & Regulations

• Trust account regulations
• Fair housing (Unruh, Rumford)
• Proposition 13
• Mello-Roos disclosures

Study Tips for Success

Recommended Study Plan

Key Numbers to Memorize

Next Steps

Ready to begin? Here's your action plan:

1. Verify eligibility - Age 18+, honest and truthful
2. Enroll in 135-hour program - DRE-approved school
3. Complete 3 courses - Principles, Practice, Elective
4. Submit application - RE 400A through eLicensing
5. Complete Live Scan - Background check required
6. Receive eligibility - Usually 6-8 weeks
7. Schedule exam - At PSI testing center
8. Pass exam - 70% on 150 questions
9. Pay license fee - $350 for 4 years
10. Find a broker - Start your career!

Real Estate SalespersonFree exam prep with practice questions & AI tutor

Let's get started with Chapter 1: California DRE & Licensing Requirements!