PracticeVideosBlogFlashcards
All Practice Exams

Free Practice Questions for CA RE Broker

Exam-style questions and explanations by OpenExamPrep.

✓ No registration✓ No credit card
Exam pass rate: 39.6%
216+ Questions
100% Free

Loading practice questions...

Same family resources

Explore More Real Estate Broker

Continue into nearby exams from the same family. Each card keeps practice questions, study guides, flashcards, videos, and articles in one place.

Indiana Real Estate Broker Examination

Practice Questions268 questionsStudy Guide16 topicsGames20 termsBlogs1 blogFree CE

Texas Real Estate Broker

Practice Questions135 questionsStudy Guide53 topicsGames20 termsBlogs1 blogFree CE

New York Real Estate Broker

Practice Questions118 questionsStudy Guide28 topicsGames20 termsBlogs1 blogFree CE

Florida Real Estate Broker

Practice Questions100 questionsStudy Guide58 topicsGames20 termsBlogs1 blogFree CE

New Jersey Real Estate Broker

Practice Questions132 questionsStudy Guide63 topicsGames20 termsFree CE

Ohio Real Estate Broker

Practice Questions100 questionsGames20 termsBlogs1 blogFree CE

More From This Family

Videos and articles for deeper review.

ArticleFree Real Estate Broker Practice Test by State 2026: 1,500+ Questions24 min readArticleFREE Indiana Real Estate Exam Guide 2026: Complete IPLA License Prep20 min read
Exam Review

Key Facts: CA RE Broker Exam

39.6%

First-Time Pass Rate

CA DRE

200

Exam Questions

Single combined exam

75%

Passing Score

150/200 correct

360 hrs

Pre-License Education

8 courses

2 yrs

Salesperson Experience

CA DRE requirement

$150

Exam Fee

CA DRE

California's broker exam is one of the most demanding in the nation: DRE reports a 39.6% average first-time pass rate for FY 2020/21-2023/24. It requires 360 hours of pre-license education (8 college-level courses), 2 years of salesperson experience or an accepted substitute, and 200 questions in 4 hours with 75% to pass. DRE writes and administers its own exam, which covers broker topics such as trust account management, agency supervision and DRE discipline.

Sample CA RE Broker Practice Questions

Try these sample questions to review concepts for the CA RE Broker exam. Each question includes a detailed explanation. Start the interactive quiz above for the full 216+ question experience with AI tutoring.

1A California real estate broker discovers that a salesperson in their office deposited a $5,000 earnest money check into the salesperson's personal account instead of the broker's trust account. What violation has occurred?
A.Commingling only
B.Conversion only
C.Both commingling and conversion
D.Neither — the salesperson has authority to hold funds
Explanation: Depositing client trust funds into a salesperson's personal account is both commingling and conversion. Commingling is mixing trust funds with personal or business funds (B&P Code §10176(e); Reg. 2835). Conversion is the unauthorized appropriation or use of another's funds. Placing earnest money in a personal account mixes the funds and places them under the salesperson's personal control, which is conversion. Salespersons must immediately deliver trust funds to the broker or deposit them into the broker's trust account as directed (B&P Code §10145). Either violation can support DRE discipline; conversion can also support criminal prosecution.
2Under California law, how often must a broker reconcile trust fund records with the bank statement?
A.Weekly
B.At least once a month in months with trust account activity
C.Quarterly
D.Annually, during the DRE audit
Explanation: Commissioner's Regulation 2831.2 requires the broker to reconcile the total of all separate beneficiary (or transaction) records with the columnar record of all trust funds received and disbursed at least once a month, except in months with no trust account activity. A record of each reconciliation must be kept. Bank-statement reconciliation is sound practice but is not the statutory 2831.2 requirement. The '25th of the following month' deadline is not in Reg. 2831.2 — the 25-day figure in Reg. 2835 relates to removing the broker's earned portion of mixed funds from the trust account, not the reconciliation deadline.
3A broker maintains a trust account at First National Bank. What is the maximum amount of the broker's own funds that may be kept in the trust account to cover bank charges?
A.$0 — no personal funds allowed
B.$100
C.$200
D.$500
Explanation: California law permits a broker to keep up to $200 of their own personal funds in the trust account to cover bank service charges and fees. This prevents the trust account from being overdrawn due to bank fees. Keeping more than $200 of personal funds would constitute commingling. This $200 allowance is specifically for bank charges, not for any other purpose.
4When conducting a DRE trust fund audit, an auditor finds that a broker's trust account is short $3,200. The broker claims a bookkeeping error. What is the MOST LIKELY consequence?
A.Warning letter with no further action
B.Immediate license revocation
C.Citation and fine up to $10,000, plus possible formal hearing
D.Criminal prosecution without administrative action
Explanation: A trust fund shortage discovered during a DRE audit typically results in a citation with a fine of up to $10,000 per violation, and may lead to a formal hearing before the Real Estate Commissioner. The DRE may also require immediate correction of the shortage. While a bookkeeping error defense is possible, the broker bears the burden of proof. License revocation is possible but usually follows a formal hearing, not immediate action. Criminal prosecution would require evidence of intentional misappropriation.
5A California broker receives a $10,000 earnest money deposit on a Thursday. By what day must the funds be deposited into the trust account?
A.The same business day
B.The next business day (Friday)
C.Within 3 business days (by the following Tuesday)
D.Within 5 business days
Explanation: Under Business and Professions Code §10145 and Commissioner's Regulation 2832, trust funds received by a broker (or the broker's salesperson) must be placed into the hands of the owner of the funds, into a neutral escrow depository, or into the broker's trust account not later than three business days following receipt. Funds received Thursday must be deposited by the end of the third business day (typically the following Tuesday, excluding weekends). The next-business-day rule applies in limited situations (e.g., certain broker-held escrow under Reg. 2832(d)), not to ordinary earnest-money deposits. Holding an uncashed check until offer acceptance is separately authorized under Reg. 2832(c) with proper notice to the offeree.
6A California broker is opening a branch office. Which of the following is required?
A.A separate broker license for the branch
B.A branch office license from the DRE
C.Notification to the DRE within 30 days
D.No notification is needed if a licensed salesperson manages it
Explanation: California requires a broker to obtain a branch office license from the DRE for each branch office location. The broker does not need a separate broker license but must apply for and receive a branch office license before operating. The broker must also designate a licensed person to manage the branch. Simply notifying the DRE is insufficient — an actual license for the branch is required.
7Under California law, which document must a broker provide to every salesperson in their office?
A.A W-2 tax form
B.A written employment agreement or independent contractor agreement
C.A surety bond
D.A copy of the broker's trust account records
Explanation: California Business and Professions Code Section 10032 requires every broker to have a written agreement with each salesperson, whether the salesperson is an employee or independent contractor. This agreement must cover supervision, duties, and compensation. The agreement must be maintained for 3 years after termination. A W-2 is only for employees, not independent contractors. Trust account records are not shared with salespersons.
8A broker's salesperson fails to disclose a known material defect to a buyer. Under California law, who is liable?
A.Only the salesperson
B.Only the broker
C.Both the broker and the salesperson
D.Neither — disclosure is the seller's responsibility
Explanation: Under California law, both the broker and the salesperson are liable for failure to disclose known material defects. The broker has vicarious liability for the acts of their salespersons performed within the scope of their employment or association. California Civil Code Section 2079 also imposes a duty on both agents and brokers to conduct a reasonably competent and diligent visual inspection. The DRE can discipline both licensees.
9Which of the following is TRUE about a restricted real estate license in California?
A.It allows the licensee to practice without supervision
B.It is issued after a formal hearing as an alternative to full revocation
C.It automatically becomes an unrestricted license after 1 year
D.It prohibits the licensee from handling trust funds
Explanation: A restricted license in California is issued by the Real Estate Commissioner after a formal hearing, typically as an alternative to full license revocation. The restricted licensee must comply with specific conditions, which often include working under a supervising broker, filing quarterly reports with the DRE, and meeting with a DRE representative. It does not automatically convert to unrestricted status — the licensee must petition for removal of restrictions. Restricted licensees may handle trust funds unless specifically prohibited.
10A California broker receives multiple offers on a listed property. What is the broker's obligation?
A.Present only the highest offer
B.Present the first offer received and hold the rest
C.Present all offers to the seller unless directed otherwise in writing
D.Select the best offer and present it with a recommendation
Explanation: California law requires the listing broker to present all offers to the seller unless the seller has previously given written instructions to the contrary (e.g., not to present offers below a certain amount). The broker cannot unilaterally decide which offers to present. Failure to present all offers is a violation of fiduciary duty and can result in DRE disciplinary action, including license suspension or revocation.

About the CA RE Broker Exam

The California real estate broker exam is a 200-question, 4-hour exam administered by the CA DRE. Its seven sections are Property Ownership and Land Use Controls (15%), Laws of Agency and Fiduciary Duties (17%), Property Valuation and Financial Analysis (14%), Financing (9%), Transfer of Property (8%), Practice of Real Estate and Mandated Disclosures (25%) and Contracts (12%).

Exam sponsor: California Department of Real Estate (DRE). The requirements and fees below concern the certification or admission exam, separate from our free practice resources.

Questions

200 questions

Time Limit

4 hours

Passing Score

75%

Exam / Certification Fees

$150

Exam sponsor website

Reported exam pass rate: 39.6%. average first-time pass rate for FY 2020/21-2023/24 (26% in FY 2023/24), DRE 2024 Sunset Review Report This describes exam candidates, not OpenExamPrep users or results from using our resources. Exam sponsor website

Fees, eligibility, and exam policies can change. Confirm them with the exam sponsor before applying or paying.

Our practice resources: topics covered

We aim to reflect publicly available exam outlines and topic information in our study resources. Coverage, format, and difficulty may differ from the actual exam, and we cannot guarantee that every detail is accurate or current. Confirm exam requirements, fees, and policies with the official exam sponsor.

15%

Property Ownership and Land Use Controls and Regulations

Classes and characteristics of property, encumbrances, types of ownership, descriptions, government rights, public and private controls, environmental hazards, water rights and special categories of land

17%

Laws of Agency and Fiduciary Duties

Agency relationships and agreements, duties to seller and buyer, agency disclosure, termination, commissions and duties to non-client third parties

14%

Property Valuation and Financial Analysis

Value, methods of estimating value and financial analysis

9%

Financing

Loan types and sources, government programs, mortgages, deeds of trust and notes, financing and credit laws, loan brokerage and loan originators

8%

Transfer of Property

Title insurance, deeds, escrow, tax aspects, special processes, court-supervised transfers and vesting

25%

Practice of Real Estate and Mandated Disclosures

Trust account management, fair housing, advertising, record keeping, agency supervision, DRE discipline, licensing and CE, Recovery Fund, property management and required disclosures

12%

Contracts

Listing and buyer broker agreements, purchase contracts, promissory notes and securities, purchase and lease options, and advance fees

Preparing for the CA RE Broker Exam

What You Need to Know

  • Passing score: 75%
  • Exam length: 200 questions
  • Time limit: 4 hours
  • Exam / certification fees: $150 Official sources

Using Our Practice Resources

  • Work through all 216 available questions
  • Review every answer and explanation
  • Track weak areas and revisit them
  • Use our AI tutor for tough concepts

CA RE Broker: Suggested Study Strategy

1Master trust fund reconciliation: daily bank reconciliation, monthly trust fund status reports, and DRE audit procedures
2Know broker supervision duties: review of documents, advertising approval, branch office management, and restricted license oversight
3Study all 8 pre-license course topics — the exam tests broker-level depth in appraisal, finance, economics, and accounting
4Understand Prop 13 (1% base + 2% annual cap), Mello-Roos special tax districts, and documentary transfer tax calculations
5Learn DRE disciplinary actions: restricted license conditions, desist and refrain orders, license revocation vs suspension

Frequently Asked Questions

How hard is the California real estate broker exam?

The CA broker exam is significantly harder than the salesperson exam with a 39.6% average first-time pass rate (FY 2020/21-2023/24). It has 200 questions (vs 150 for salesperson), covers 8 college-level courses worth of material including accounting, appraisal, and brokerage management, and requires 75% to pass. Trust fund handling and DRE regulations are heavily tested.

How many questions are on the CA broker exam?

The California real estate broker exam has 200 multiple-choice questions in a single combined exam. You have 4 hours to complete it and need 150 correct answers (75%) to pass. The exam is administered by the DRE at testing centers throughout California.

What are the prerequisites for a CA broker license?

You need 360 hours of pre-license education (8 college-level courses including Real Estate Practice, Legal Aspects, Appraisal, Finance, Economics, Accounting, and 2 electives), plus 2 years of full-time licensed salesperson experience within the last 5 years. A four-year degree with a major or minor in real estate, or two years of equivalent unlicensed experience, can substitute for the salesperson experience.

What is the most tested topic on the CA broker exam?

The largest section is Practice of Real Estate and Mandated Disclosures (about 25%), which covers trust account management, fair housing, advertising, record keeping, agency supervision, DRE discipline and required disclosures. Laws of Agency and Fiduciary Duties (about 17%) and Property Ownership and Land Use Controls (about 15%) come next.