Free California Real Estate Exam Flashcards

The state agency that licenses and regulates California real estate brokers and salespersons, approves education, investigates complaints, audits trust accounts, and enforces the Real Estate Law.

The Governor-appointed official who leads the DRE. The Commissioner may issue, restrict, suspend, or revoke licenses and adopt regulations to enforce California real estate law.

A candidate must complete 135 hours: Real Estate Principles, Real Estate Practice, and one DRE-approved elective. Each course accounts for 45 hours.

The California salesperson exam has 150 multiple-choice questions, a 3 hour 15 minute time limit, and a 70% passing score.

California real estate applicants submit Live Scan fingerprints so DOJ and FBI background checks can be completed before licensure.

A California real estate license is valid for 4 years. Renewal requires completing 45 hours of continuing education and renewing through the DRE.

A licensee may not conduct licensed activity after the license expires. Late renewal may restore the license, but it does not make unlicensed activity during the gap lawful.

A salesperson cannot operate independently. Licensed activity must be performed under a responsible broker who supervises the salesperson's real estate work.

A salesperson's compensation for licensed acts must come through the employing broker, not directly from the client or another party to the transaction.

California practice expects a written agreement between the broker and salesperson defining supervision, duties, and compensation while the salesperson works under the broker.

A broker must maintain procedures for reviewing transactions, advertising, documents, and trust fund handling so salespersons are not left to practice unsupervised.

A license the DRE may issue after discipline or as a condition of continued practice. It allows activity only under stated limits or conditions.

Before a residential transaction moves forward, parties must receive written disclosure explaining seller agency, buyer agency, and dual agency relationships.

A California agent owes the principal loyalty, confidentiality, disclosure, obedience to lawful instructions, accounting, and reasonable care.

Even when a person is not the agent's client, the licensee must act honestly, disclose known material facts, and avoid misleading conduct.

Dual agency occurs when one broker, or agents under that broker, represent both buyer and seller. California permits it only with informed written consent from both sides.

A financial benefit an agent receives without the principal's knowledge and consent. It breaches the duty of loyalty and can support discipline or civil liability.

A California seller disclosure for many residential transfers. It reports the seller's knowledge of property condition and must be delivered to the buyer when required.

In many California residential sales, agents must make a reasonably competent and diligent visual inspection of accessible areas and disclose observed material facts.

A California disclosure identifying whether property lies in specified hazard areas such as flood, fire, earthquake fault, seismic hazard, or other mapped zones.

A buyer must be told when property is subject to a Mello-Roos community facilities district special tax, because it can affect the owner's ongoing tax burden.

For most housing built before 1978, federal law requires disclosure of known lead-based paint hazards and delivery of the EPA pamphlet before the buyer is bound.

A fact that could influence a reasonable buyer's decision or price. California licensees must disclose known material facts, especially those affecting value or desirability.

A California civil rights law applying broadly to business establishments. In real estate practice, it reinforces equal access and prohibits discriminatory business conduct.

California's fair housing law prohibiting discrimination in housing transactions. It works alongside federal fair housing law and California civil rights protections.

California fair housing protections extend beyond federal minimums and include categories such as sexual orientation, gender identity, source of income, and immigration status.

California housing providers and licensees must not reject applicants simply because lawful income includes protected rental assistance or other covered sources.

Inducing owners to sell by suggesting neighborhood change involving protected classes. It is prohibited and conflicts with both fair housing law and professional duties.

Directing prospects toward or away from areas based on protected characteristics. A licensee should provide objective property information and let clients choose.

Money or items of value received by a broker or salesperson on behalf of another person, such as deposits, rents, or earnest money.

A broker must place trust funds into a proper trust account or neutral escrow within 3 business days after receipt unless another lawful handling instruction applies.

Mixing client trust funds with broker personal or business funds. California allows only a limited amount of broker funds in trust to cover bank charges.

Using another person's trust money for the broker's or licensee's own benefit. It is more serious than poor recordkeeping and can lead to severe discipline.

A broker must keep accurate trust fund records showing receipt, deposit, disbursement, and balance information so funds can be audited and traced.

California commonly uses a deed of trust rather than a mortgage. It involves a trustor borrower, beneficiary lender, and trustee holding power of sale.

A deed of trust may allow foreclosure through trustee sale without a court lawsuit if statutory notice and sale procedures are followed.

Recording gives public notice and generally helps establish priority among competing liens or ownership claims. Earlier recording often has priority unless an exception applies.

A lien that can secure payment for labor, services, or materials used to improve real property. It can affect title if properly perfected.

California's property tax framework generally limits the base property tax rate to 1% of assessed value and caps annual assessed value increases until reassessment is triggered.

A change in ownership or new construction can cause reassessment to current market value, replacing the prior owner's lower factored base year value.

When market value drops below the Proposition 13 factored value, the assessor uses the lower market value temporarily until values recover.

A separate tax bill issued after reassessment from a sale or new construction. It is prorated and is not usually included in the buyer's lender impound account.

Eligible homeowners age 55 or older, severely disabled homeowners, and certain disaster victims may transfer a base-year value to a replacement home under California rules.

The purchase agreement sets price, financing, contingencies, deposits, closing terms, and deadlines. Once accepted, it becomes the roadmap for the transaction.

A contract condition that must be satisfied or waived, such as financing, appraisal, inspection, or sale of another property. It protects a party's right to cancel under stated terms.

A clause that can limit the seller's remedy to an agreed amount if the buyer defaults, but it must be properly agreed to and applied under California contract rules.

California real estate contracts may include dispute resolution terms. Mediation seeks a negotiated settlement; arbitration lets a neutral decision-maker resolve the dispute.

Escrow is a neutral process in which documents and funds are held and delivered only when the parties' written instructions and closing conditions are satisfied.

A common California deed that conveys title and implies limited warranties that the grantor has not already conveyed the property and has not created undisclosed encumbrances.

Insurance that protects against covered title defects existing before the policy date. A lender's policy protects the lender; an owner's policy protects the buyer's equity.