California Real Estate License Practice Test

The California salespersons and brokers examinations cover seven areas with weight as shown:

Area 1: Property Ownership and Land Use Controls and Regulations.

Approximately 18% of the sales exam and 15% of the broker exam.

• Classes of property
• Property characteristics
• Encumbrances
• Types of ownership
• Descriptions of property
• Government rights inland
• Public controls
• Environmental hazards and regulations
• Private controls
• Water rights
• Special categories of land

Area 2:  Laws of Agency.

Approximately 12% of the sales exam and 12% of the broker exam.

• Law, definition, and nature of agency relationships, type of agencies, and agents
• Creation of agency and agency agreements
• Responsibilities of the agent to the seller, the buyer as principal
• Disclosure of agency
• Disclosure of acting as principal or other interest
• Termination of agency Commission and fees

Area 3:  Valuation and Market Analysis.

Approximately 12% of the sales exam and 11% of the broker exam.

• Value
• Methods of estimating the value

Area 4:  Financing.

Approximately 13% of the sales exam and 13% of the broker exam.

• General concepts
• Types of loans
• Sources of financing
• How to deal with lenders
• Government programs
• Mortgage, deeds of trust, notes
• Financing, credit laws
• Loan brokerage

Area 5: Transfer of Property.

Approximately 9% of the sales exam and 10% of the broker exam.

• Title insurance
• How to deal with lenders
• Government programs
• Mortgages, deeds of trust, notes
• Financing, credit laws
• Loan brokerage

Area 6:  Practice of Real Estate and Mandated Disclosures.

Approximately 24% of the sales exam and 27% of the broker exam.

• Trust account management
• Fair housing laws
• Truth in advertising
• Record-keeping requirements
• Agent supervision
• Permitted activities of unlicensed sales assistants
• DRE jurisdiction and disciplinary actions
• Licensing, continuing education requirements, and procedures
• California Real Estate Recovery Fund
• General ethics
• Technology
• Property management, landlord-tenant rights
• Commercial, industrial, income properties
• Specialty areas
• Transfer disclosure statement
• Natural hazard disclosure statements
• Material facts affecting property value
• Need for inspection and obtaining, verifying information

Area 7:  Contracts.

Approximately 12% of the sales exam and 12% of the broker exam.

• General
• Listing agreements
• Buyer broker agreements
• Offers, purchase contract
• Counteroffers, multiple counteroffers
• Leases
• Agreements
• Promissory notes, securities

Begin to take the Real Estate test:

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