California Real Estate Exam 2026: 25 Q&A + Pass Tips

Quick Answer

The California real estate salesperson exam has 150 multiple-choice questions across three sections — Practice (45%), Law (30%), and Finance (25%) — with a 70% pass mark (105/150) and a 2h15m time limit. You must complete 135 hours of DRE-approved pre-licensing courses (Principles 45 + Practice 45 + Finance 45) before applying. Total fees are $394 ($245 exam + $100 licence + $49 Recovery Fund). The licence is issued for 18 months initially (California DRE, 2026).

Data last verified September 2026 from the California Department of Real Estate (DRE) and the current Real Estate Law and Practice textbooks.

Eligibility

• Age: 18+ (California DRE, 2026).
• Pre-licensing: 135 hours from a DRE-approved school (Principles, Practice, Finance).
• Honesty: Disclose any criminal/financial history — DRE reviews for moral character.
• Residency: California residency not required; out-of-state applicants can apply.

Test format

Source: California DRE Salesperson Examination Content Outline (2026).

Sample Q&A — Real Estate Practice (7 questions)

Q1. What is the primary fiduciary duty of a real estate agent?

Loyalty to the client, including full disclosure, confidentiality, obedience to lawful instructions, accounting for funds, and reasonable care. California Business & Professions Code §10176 (DRE, 2026).

Q2. How long must a broker retain trust fund records?

Three years. California Code of Regulations §2831.2 (DRE, 2026).

Q3. What is the maximum commission rate a California broker can charge?

No statutory cap — commissions are negotiable and disclosed in writing. California Business & Professions Code §10176 (DRE, 2026).

Q4. When must a broker provide a written agency disclosure?

Before the agent and buyer/seller sign any agreement or before the buyer submits an offer. California Civil Code §2079.14 (DRE, 2026).

Q5. What is the California Transfer Disclosure Statement (TDS)?

A seller's required disclosure of known property conditions, defects, and hazards — must be delivered to the buyer before transfer. California Civil Code §1102 (DRE, 2026).

Q6. Can a salesperson receive a commission directly?

No. All commissions must flow through the employing broker. California Business & Professions Code §10132 (DRE, 2026).

Q7. What is the California Residential Purchase Agreement?

The C.A.R. RPA — the standard contract form published by the California Association of Realtors covering price, financing, contingencies, and closing.

Sample Q&A — Real Estate Law (7 questions)

Q8. What is the Statute of Frauds requirement for California real estate contracts?

Real estate contracts must be in writing and signed by the party to be charged. California Civil Code §1624 (DRE, 2026).

Q9. Define "fixture" vs "personal property".

Fixture: attached to real property and conveys with the sale. Personal property: not attached and excluded unless specified in the contract.

Q10. What is the implied warranty of habitability?

Landlord's duty to maintain rental property in a habitable condition — basic weatherproofing, plumbing, heating, electrical. California Civil Code §1941 (DRE, 2026).

Q11. What is the California Fair Housing Act?

Prohibits discrimination in housing based on race, color, national origin, religion, sex, familial status, disability. California Government Code §12955 (DRE, 2026).

Q12. What is "adverse possession" in California?

Open, notorious, continuous, hostile, and exclusive possession of real property for 5 years + payment of property taxes. California Code of Civil Procedure §325 (DRE, 2026).

Q13. What is the California homestead exemption?

Protects up to $300,000 (2026 amount) of equity in a primary residence from creditors. California Code of Civil Procedure §704.730 (DRE, 2026).

Q14. What is the "doctrine of marketable title"?

Requires sellers to provide title free of reasonable doubt; protected by title insurance in practice.

Sample Q&A — Real Estate Finance (6 questions)

Q15. What is the difference between "assessed value" and "market value"?

Assessed value: value used by the county assessor for property tax (often capped at 2% annual increase under Prop 13). Market value: what a willing buyer pays.

Q16. What is a "qualified mortgage" under QM/ATR rules?

A mortgage meeting Ability-to-Repay and QM standards (43% DTI limit, no risky features). Consumer Financial Protection Bureau (CFPB, 2026).

Q17. What is private mortgage insurance (PMI)?

Required when loan-to-value (LTV) exceeds 80%; protects the lender. Removed automatically when LTV reaches 78% (CFPB, 2026).

Q18. How is California property tax calculated?

1% of assessed value + local bonds/assessments; reassessment only on sale or new construction (Prop 13). California Constitution Art. XIII A.

Q19. What is an "alienation clause" in a mortgage?

A "due-on-sale" clause requiring the loan balance to be paid in full upon transfer of the property.

Q20. What is "amortization"?

The systematic payment schedule that pays off a loan over time, with each payment covering principal + interest.

Pass-mark interpretation

The DRE scores the exam as a single 150-question combined test; you must answer at least 105 correctly (70%) to pass. No partial credit. The exam is administered via computer at PSI Testing Centers statewide. Retake rule: 3-month waiting period after a fail; no cap on attempts (California DRE, 2026).

Where to book

Apply via dre.ca.gov. After approval, schedule at any PSI Testing Center (locations throughout California). Bring photo ID and proof of pre-licensing course completion. Exam fee: $245 (California DRE, 2026).

Resources and next steps

Use the TutorsBot entrance-exams hub for cross-cluster practice and the California DRE publications page for the official Real Estate Law and Practice reference. After licensure, complete the 45-hour CE for the first renewal cycle. For a deeper dive into compliance and disclosures, see the TutorsBot GRC training course.