2024 Edition

California Real Estate Practice Exam

Take this free practice test to get an idea of what is on the California Real Estate Salesperson exam administered by the California Department of Real Estate (CalDRE).  The actual exam has 150 questions and 3 hours 15 minutes is given to complete it.  For 150 questions to simulate the actual exam, use our California Real Estate Practice Exam.

Section 1. California Property Ownership and Land Use Controls

1. Ayana Dubois, a chef, rented property in order to run a restaurant  in California. Dubois purchased and installed a commercial-grade range, oven, deep fryer, and grill. To comply with safety regulations and protect her staff, Dubois has securely fastened all of this commercial restaurant equipment to the kitchen. Which of the following is a correct statement related to the restaurant equipment Dubois installed?
2. Which of the following is an example of the government's realty-related police power?
3. All of the following are examples of lawful private controls on real estate except:

Section 2. California Laws of Agency and Fiduciary Duties

4. Late one afternoon, a listing broker was holding an open house at 125 Woodriver Drive in CA. Seeing the "Open House" sign, a prospective buyer came in to look at the home. After several questions about the house and local school system, the inexperienced buyer asked the listing broker for suggestions on how to negotiate successfully for the Woodriver Drive residence. The listing broker answered the questions as helpfully as possible. However, because the broker was tired, the broker did not raise the issue of agency representation, compensation, or even ask for the prospective buyer's name. The following morning, the prospective buyer started to act on the listing broker's advice. What type of agency, if any, was created with the prospective buyer?
5. Jon Brown is the sole owner of a condominium in CA with a list price of $900,000. The listing broker learns that a prospective buyer, Samantha Southerland, owes $75,000 in delinquent child support. Which duty owed only to the principal will require the listing broker to disclose the delinquent child support to Jon Brown?
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6. All of the following are correct statements related to a listing broker and a broker working as a property manager in CA except:

Section 3. California Property Valuation and Financial Analysis

7. What type of appraisal report is commonly relied upon in California by a lender financing the purchase of a single-family residence?
8. Kim Nguyen owns a three-bedroom, two-bathroom single-family residence in California. Nguyen legally converted the master bedroom and bathroom into a separate "granny flat" for her elderly mother. The granny flat cost $50,000, but only added $30,000 in value to the property. Several years later, Nguyen remodeled the kitchen in the main house. The remodeled kitchen cost $15,000, but added $20,000 in value to the property. Which of the following statements is correct?
9. This method of valuation is used for unique or historic properties, as well as new construction. It is frequently used when comparables are unavailable, and when the subject property does not produce income. In order to reach an opinion of value, the appraiser estimates the current cost to build a new improvement with the same utility, then deducts accrued depreciation, before adding the value of the land. This method of valuation is called:

Section 4. California Real Estate Financing

10. This security instrument is used for loans when the collateral is a parcel of real estate. It is legal, but infrequently used in California. The security instrument has only two parties, and creates an encumbrance on the real estate. From the following choices, what is the security instrument called?
11. Kayla Chen and Kristina Wang cannot afford the down payment on the 3-unit residence they want to purchase together in CA. They turn to a government program for assistance. Chen and Wang are required to purchase mortgage default insurance, but only have to pay 3.5% of the home's appraised value as a down payment. Chen and Wang purchased the home using:
12. Dewayne Smith, a 25-year-old man, is purchasing a single-family residence in a newly-built subdivision of 50 parcels in California. The residence is move-in ready. Because the other 49 lots have already been sold, Smith is buying the model home in the new development. The developer offers to sell the furniture in the model home along with the real estate. Smith, in the process of getting a fully-amortized loan, discusses the purchase of the furniture with his lender. What is it called if both the real estate and the furniture serve as collateral for the loan?

Section 5. California Real Estate Transfer

13. Juan Gonzales, a veteran living in California, wanted to buy a single-family residence to live in as his home. He turned to the Cal-Vet residential loan program in order to help finance the purchase. The financing instrument used in the Cal-Vet loan program is an installment sales contract. Who will give Gonzales a deed to the property?
14. James Johnson and Aiko Johnson are married to each other. The Johnsons are in the process of purchasing a condominium together in CA. What is a way for them to hold title so that, when one spouse dies, the survivor immediately owns the condominium in severalty?
15. The escrow closing statement for a typical purchase transaction sets forth the debits and credits for both the buyer and the seller. Which of the following statements is correct?

Section 6. California Real Estate Practice

16. Two brokers secretly decide their brokerage firms will charge the same commissions and fees in California. They also quietly decide which counties each firm will service. These practices are illegal under:
17. Two years ago, a tenant died in Unit 7 of an apartment complex in California. The unit is vacant, and the landlord shows a prospective tenant through the property. The landlord informs the prospective tenant that a previous tenant died in the unit two years ago from AIDS-related complications. Which of the following is a correct statement?
18. Which of the following is a lawful Brokerage Firm practice?

Section 7. California Real Estate Contracts

19. Jordan Smith is the broker of record at a brokerage firm in California with 5 associate licensees. All 5 associate licenses are very experienced salespeople. A mental health condition causes Smith to be incapacitated and hospitalized for long-term treatment. What is the status of the listing agreements at Smith's brokerage firm?
20. All of the following contracts must be in writing to be enforceable in CA except:

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Quality starts with who wrote the material.
Our practice exam writer
Lisa Risco

Lisa is a licensed real estate broker from Pennsylvania who teaches real estate classes at the Polley Associates School of Real Estate.  She has worked with Re/Max and Century 21 in Philadelphia. Lisa received her MBA degree from Eastern University.
Our material is specific to the Pennsylvania Real Estate Salesperson Exam, covering both the National and State sections with these content areas: 
  • Legal Descriptions
  • Property Use
  • Forms of Ownership
  • Recording of Title
  • Property Appraisal
  • Contracts
  • Agency
  • Financing
  • Transfer of Property
  • Disclosures
  • Settlment
  • Real Estate Practice
  • and more..