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100+ Free CA RE Broker Practice Questions

Pass your California Real Estate Broker Exam exam on the first try — instant access, no signup required.

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~44% Pass Rate
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The DRE Real Estate Commissioner has the power to do all of the following EXCEPT:

A
B
C
D
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ArticleFree Real Estate Broker Practice Test by State 2026: 1,500+ Questions24 min read
2026 Statistics

Key Facts: CA RE Broker Exam

~44%

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

$95

Exam Fee

CA DRE

California's broker exam is one of the most demanding in the nation with a ~44% first-time pass rate. It requires 360 hours of pre-license education (8 college-level courses), 2 years of salesperson experience, 200 questions in 5 hours, and 75% to pass. California is unique in administering its own exam (not Pearson VUE), testing broker-specific topics like trust fund reconciliation, DRE audits, branch office supervision, and restricted license conditions.

Sample CA RE Broker Practice Questions

Try these sample questions to test your CA RE Broker exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ 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: This is conversion — the unauthorized use or misappropriation of trust funds for personal benefit. Commingling is mixing trust funds with personal or business funds in the same account. Here, the salesperson placed client funds into a personal account for potential personal use, which constitutes conversion. Conversion is a more serious violation than commingling and can result in criminal prosecution in addition to license revocation.
2Under California law, how often must a broker reconcile trust fund records with the bank statement?
A.Weekly
B.Monthly, no later than the 25th of the following month
C.Quarterly
D.Annually, during the DRE audit
Explanation: California regulations require brokers to reconcile their trust fund records with the bank statement at least once a month, no later than the 25th day of the month following the month being reconciled. This monthly reconciliation must compare the bank statement balance, the trust fund bank account record, and the separate beneficiary records. Waiting for a DRE audit is not acceptable — the broker must proactively maintain reconciled records.
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: California law requires that trust funds received by a broker or their salesperson must be deposited into the broker's trust account by the next business day following receipt, unless the purchase agreement provides otherwise. In this case, receiving on Thursday means deposit by Friday. The 3-business-day rule applies in some other states but not California, which has one of the strictest deposit timelines in the nation.
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 single combined exam administered by the CA DRE. It covers brokerage management, trust fund handling, real estate law, appraisal, finance, economics, accounting, escrow, office procedures, and agency relationships under California Business & Professions Code.

Questions

200 scored questions

Time Limit

5 hours

Passing Score

75%

Exam Fee

$95 (California Department of Real Estate (DRE))

CA RE Broker Exam Content Outline

20%

Brokerage Management & Operations

Office supervision, branch offices, DRE audits, advertising rules, broker-associate agreements, independent contractor vs employee

20%

Trust Accounts & Funds

Trust fund handling, reconciliation, commingling, conversion, DRE trust fund requirements, broker withdrawal procedures

20%

CA Real Estate Law

Business & Professions Code, Civil Code, Subdivided Lands Act, Subdivision Map Act, CEQA, Mello-Roos, Prop 13

15%

Finance & Economics

Mortgage instruments, CalHFA programs, usury, truth-in-lending, RESPA, economic principles, market analysis

15%

Property Valuation & Appraisal

Appraisal methods (sales comparison, cost, income), capitalization rate, gross rent multiplier, depreciation, USPAP

10%

Agency, Ethics & Contracts

Agency disclosure, dual agency, fiduciary duties, listing agreements, purchase agreements, escrow procedures

How to Pass the CA RE Broker Exam

What You Need to Know

  • Passing score: 75%
  • Exam length: 200 questions
  • Time limit: 5 hours
  • Exam fee: $95

Keys to Passing

  • Complete 500+ practice questions
  • Score 80%+ consistently before scheduling
  • Focus on highest-weighted sections
  • Use our AI tutor for tough concepts

CA RE Broker Study Tips from Top Performers

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 desist 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 ~44% first-time pass rate. 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 5 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 4-year degree can substitute for some experience.

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

Trust fund handling and brokerage management are the most heavily tested broker-level topics. You must know trust account reconciliation procedures, commingling vs conversion, DRE audit requirements, broker supervision responsibilities, and the penalties for trust fund violations under the Business & Professions Code.