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Exam Review

Key Facts: CA Real Estate Exam

49%

First-Time Pass Rate

CA DRE 2024

150 Q

Exam Questions

CA DRE

135 hrs

Pre-License Education

CA DRE

440K+

CA Licensed Agents

CA DRE 2024

$63,800

Median Agent Income

CAR 2025

$100

Exam Fee

CA DRE

The California real estate salesperson exam has a 49% first-time pass rate (CA DRE 2024), making it one of the toughest state exams. It requires 135 hours of pre-license education (3 courses), a 150-question exam in 3 hours, and a 70% passing score. California has 440,000+ licensed agents and median agent income of $63,800 (CAR 2025). The DRE administers the exam itself at five state exam sites (Sacramento, Oakland, Fresno, La Palma, San Diego), not at third-party vendor centers.

Sample CA Real Estate Practice Questions

Try these sample questions to review concepts for the CA Real Estate exam. Each question includes a detailed explanation. Start the interactive quiz above for the full 311+ question experience with AI tutoring.

1Which California state agency is responsible for issuing real estate licenses?
A.California Bureau of Real Estate Appraisers
B.California Department of Real Estate (DRE)
C.California Department of Consumer Affairs
D.California Real Estate Commission
Explanation: The California Department of Real Estate (DRE), headed by the Real Estate Commissioner, is the state agency that issues and regulates real estate licenses. The Bureau of Real Estate Appraisers handles appraiser licenses, not real estate agent licenses. The Department of Consumer Affairs is the parent agency but does not directly issue real estate licenses. There is no entity called the California Real Estate Commission.
2How many hours of pre-license education does California require before a candidate can take the salesperson exam?
A.90 hours (3 college-level courses)
B.135 hours (3 college-level courses)
C.180 hours (6 college-level courses)
D.45 hours (1 college-level course)
Explanation: California requires 135 hours of pre-license education, which consists of three college-level courses: Real Estate Principles, Real Estate Practice, and one elective from an approved list. 90 hours and 45 hours are insufficient and do not meet the DRE requirement. 180 hours (6 courses) is not the salesperson requirement but is closer to the 8-course broker requirement of 360 hours.
3Which three courses make up the required 135-hour California pre-license education for a salesperson?
A.Real Estate Principles, Real Estate Law, and Real Estate Finance
B.Real Estate Principles, Real Estate Practice, and one DRE-approved elective
C.Real Estate Finance, Real Estate Appraisal, and Real Estate Economics
D.Real Estate Practice, Real Estate Law, and Property Management
Explanation: The California DRE requires three specific courses for a salesperson license: Real Estate Principles, Real Estate Practice, and one elective chosen from an approved list (such as Real Estate Finance, Real Estate Law, or Real Estate Appraisal). The other combinations listed include courses that may be valid electives but do not represent the mandatory two-plus-one structure required by the DRE.
4What is the format of the California real estate salesperson licensing exam?
A.100 multiple-choice questions, 2 hours 30 minutes, 75% passing score
B.150 multiple-choice questions, 3 hours 15 minutes, 70% passing score
C.200 multiple-choice questions, 4 hours, 70% passing score
D.150 multiple-choice questions, 3 hours, 75% passing score
Explanation: The California salesperson exam consists of 150 multiple-choice questions with a time limit of 3 hours and 15 minutes, requiring a score of 70% (105 correct answers) to pass. The other options contain incorrect combinations of question count, time limit, or passing score. The broker exam is different and has 200 questions with a 5-hour time limit.
5How often must a California real estate license be renewed?
A.Every 2 years
B.Every 3 years
C.Every 4 years
D.Every 5 years
Explanation: California real estate licenses must be renewed every 4 years. This applies to both salesperson and broker licenses. A 2-year cycle applies to some other professional licenses in California but not real estate. The 3-year and 5-year options do not match any DRE renewal period for real estate licensees.
6How many hours of continuing education must a California real estate licensee complete for license renewal?
A.22.5 hours
B.30 hours
C.45 hours
D.60 hours
Explanation: California requires 45 hours of continuing education for each 4-year license renewal. This includes mandatory courses such as ethics, agency, trust fund handling, fair housing, and risk management, plus elective hours. The 22.5-hour and 30-hour figures are too low and do not meet California's requirement. 60 hours exceeds the actual continuing education mandate.
7A California real estate salesperson wants to upgrade to a broker license. Which of the following is a key additional requirement beyond the salesperson license?
A.At least 1 year of experience as a salesperson
B.At least 2 years of full-time salesperson experience or equivalent education, plus 8 college-level courses (360 hours)
C.Passing the same 150-question exam with a higher score of 80%
D.Completing 45 hours of broker-specific continuing education
Explanation: To obtain a California broker license, a candidate must have at least 2 years of full-time licensed salesperson experience within the preceding 5 years (or equivalent education), plus complete 8 college-level courses totaling 360 hours. One year of experience is insufficient. The broker exam is a separate 200-question exam, not the same salesperson exam. The 45 hours refers to renewal continuing education, not broker upgrade requirements.
8Under California law, within how many business days must a broker deposit trust funds received on behalf of a principal into a trust account or neutral escrow?
A.1 business day
B.3 business days
C.5 business days
D.7 business days
Explanation: California law requires a broker to deposit trust funds into a trust account or neutral escrow within 3 business days of receipt. Depositing within 1 business day is stricter than required by law, though some brokerages may have internal policies that are more stringent. The 5-day and 7-day options exceed the legal maximum, and failure to deposit within 3 business days can result in disciplinary action by the DRE.
9What type of license may the California DRE issue to a licensee who has been subject to disciplinary action?
A.Provisional license
B.Restricted license
C.Conditional license
D.Probationary permit
Explanation: The California DRE may issue a restricted license to a licensee who has been disciplined. This license has specific conditions and limitations that the licensee must follow. Provisional, conditional, and probationary permit are not the correct legal terms used by the California DRE for this type of post-disciplinary license.
10Which of the following is TRUE regarding California real estate broker supervision responsibilities?
A.Brokers are only responsible for their own transactions, not those of their salespersons
B.Brokers must have a written system of supervision and review all salesperson activities regularly
C.Brokers may delegate all supervisory duties to a lead salesperson
D.Supervision is only required for salespersons in their first year
Explanation: Under California law, brokers must establish a written system for supervising their salespersons' activities, including regular reviews of transactions, documents, and trust fund handling. Brokers are vicariously liable for their salespersons' acts performed within the scope of employment. They cannot delegate all supervisory duties to a salesperson, and supervision is required for all salespersons regardless of experience level.

About the CA Real Estate Exam

The California real estate salesperson exam covers both national real estate concepts and California-specific laws including DRE licensing requirements, Proposition 13 property taxes, Transfer Disclosure Statements (TDS), the Unruh Civil Rights Act, and FEHA fair housing protections.

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

Questions

150 questions

Time Limit

3 hours

Passing Score

70%

Exam / Certification Fees

$100

Exam sponsor website

Reported exam pass rate: 49%. first-time salesperson pass rate (CA DRE 2024) 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.

20%

CA DRE & Licensing

DRE licensing requirements, 135-hour pre-license education, renewal, trust accounts, broker supervision

20%

CA Fair Housing

Unruh Civil Rights Act, FEHA, Rumford Act, CRD enforcement, CA-specific protected classes

20%

CA Disclosures

Transfer Disclosure Statement (TDS), Natural Hazard Disclosure (NHD), Mello-Roos, agent visual inspection

15%

CA Property Tax

Proposition 13, Prop 8 decline-in-value, Prop 19, homeowner exemption, supplemental taxes

15%

CA Contracts & Agency

C.A.R. purchase agreement, dual agency, mediation/arbitration, liquidated damages, escrow

10%

National Concepts

Property ownership, financing, valuation, and federal fair housing (also on national portion)

Preparing for the CA Real Estate Exam

What You Need to Know

  • Passing score: 70%
  • Exam length: 150 questions
  • Time limit: 3 hours
  • Exam / certification fees: $100 Official sources

Using Our Practice Resources

  • Work through all 311 available questions
  • Review every answer and explanation
  • Track weak areas and revisit them
  • Use our AI tutor for tough concepts

CA Real Estate: Suggested Study Strategy

1Master Proposition 13: 1% base rate + 2% annual cap — know when reassessment is triggered
2Learn the Transfer Disclosure Statement (TDS) inside out: who fills it out, rescission periods (3/5 days), exemptions
3Know the Unruh Civil Rights Act: broader than federal law, covers ALL business establishments, minimum $4,000 per violation
4Understand FEHA protected classes that go beyond federal: marital status, sexual orientation, gender identity, source of income
5Study DRE trust fund rules: 3 business days to deposit, broker must maintain, DRE audits
6Know escrow procedures unique to CA: independent escrow companies, not attorney closings

Frequently Asked Questions

How hard is the California real estate exam?

The CA real estate salesperson exam has a 49% first-time pass rate (CA DRE 2024), making it significantly harder than most states. The exam has 150 questions in 3 hours, requiring a 70% score (105 correct). CA-specific topics like Proposition 13, TDS, and the Unruh Act are heavily tested.

What are the California pre-license education requirements?

California requires 135 hours of approved pre-license education: Real Estate Principles (45 hours), Real Estate Practice (45 hours), and one elective course (45 hours). Courses can be taken at colleges, private schools, or online. There is no experience requirement for the salesperson license.

What California-specific topics are on the exam?

Key CA-specific topics include: DRE licensing and regulations, Proposition 13 property taxes, Transfer Disclosure Statement (TDS), Natural Hazard Disclosure (NHD), Unruh Civil Rights Act, FEHA fair housing, Mello-Roos special taxes, C.A.R. purchase agreements, escrow procedures, and trust fund requirements.

What is the difference between the CA and national real estate exam?

California uses a single 150-question exam that combines national and state-specific content (unlike states with separate national/state portions). About 60% covers national topics and 40% is California-specific law, regulations, and practices. The CA exam is administered by the DRE itself at its five state exam sites, not by third-party vendors like PSI or Pearson VUE as most states use.

How long should I study for the CA real estate exam?

Plan for 80-120 hours of study over 6-10 weeks after completing your 135 hours of pre-license education. Focus heavily on CA-specific topics (Prop 13, TDS, Unruh Act) since they make up about 40% of the exam. Complete at least 500 practice questions and aim for 85%+ on practice tests before scheduling.