California Real Estate Exam 15-Question Diagnostic Practice Test

Q: What is the passing score on the California real estate salesperson exam?

Under California Department of Real Estate (DRE) rules, candidates must achieve at least 70% overall to pass the real estate salesperson examination. That means you must answer at least 105 out of the 150 multiple-choice questions correctly. (For real estate broker candidates, the passing score is 75% overall, or 150 out of 200 questions).

Q: How many questions are on the California DRE exam, and how much time do I get?

The California real estate salesperson examination consists of 150 multiple-choice questions administered in a single continuous session. You are given 3 hours and 15 minutes (195 minutes) to complete the test. Unlike some other states, there is no separate "national" vs. "state" section—all 150 questions are blended across the 7 official DRE subject areas.

Q: How many times can you retake the California real estate exam if you fail?

In California, there is no limit on the number of times you may retake the real estate exam during your 2-year application eligibility window. If you do not pass on your first try, you can immediately apply for re-examination through your DRE eLicensing account upon receiving your official failure summary report (which breaks down your percentage score across each of the 7 subject areas).

Q: What are the 7 official subject domains on the California DRE exam?

The California DRE 150-question blueprint is weighted across 7 official statutory domains: 1) Practice of Real Estate and Disclosures (25% · ~38 Qs), 2) Laws of Agency and Fiduciary Duties (17% · ~26 Qs), 3) Property Ownership and Land Use Controls (15% · ~23 Qs), 4) Property Valuation and Financial Analysis (14% · ~21 Qs), 5) Contracts (12% · ~18 Qs), 6) Financing (9% · ~13 Qs), and 7) Transfer of Real Estate (8% · ~11 Qs).

Q: Why should I study with both practice questions and active recall flashcards?

Practice questions test your clinical reasoning under timed conditions, train you to spot distractor traps, and verify your calculation skills. Active recall flashcards lock in statutory deadlines and legal definitions (such as the 3-day trust deposit rule under B&P § 10145, the 3/5-day TDS cancellation rule under Civ. Code § 1102, or the 6 statutory NHD zones). Combining ExamBased's 1,655 California practice questions with our 580 active recall flashcards provides the highest pass rate.

Q: What type of calculator can I use during the California DRE exam?

The DRE permits candidates to bring a standard, silent, battery-operated, handheld basic calculator that is non-programmable and does not possess an alphabetic keypad or printing capability. Financial or scientific calculators with alphanumeric memory are strictly prohibited. Additionally, an on-screen basic calculator is provided directly inside the testing software.

Q: Is ExamBased really 100% free for California real estate candidates?

Yes. ExamBased provides completely free access to our entire California prep catalog: all 1,655 verified practice questions, 580 active recall flashcards, 7-domain DRE study outlines, and instant AI tutor legal explanations citing California Civil Code and Business & Professions Code. No subscription paywalls, no trial limits, and no credit card required.

Question 1

Under California Business & Professions Code § 10145 and Commissioner's Regulation 2832, after receiving earnest money trust funds from a prospective buyer, a real estate broker must deposit the funds into a neutral escrow depository, into a broker trust bank account, or deliver them to the principal within what statutory timeframe?

Accepted Answer

B. Within 3 business days of receipt

Answer

A. Within 24 calendar hours

Answer

C. Within 5 calendar days of receipt

Answer

D. Within 10 business days following contract execution

Question 2

Under California Civil Code § 1102, if the Real Estate Transfer Disclosure Statement (TDS) is delivered to a prospective buyer in person after the purchase contract has already been signed, the buyer has the statutory right to terminate the contract within:

Accepted Answer

B. 3 days after delivery in person (or 5 days if delivered by mail or electronically)

Answer

A. 24 hours after personal delivery

Answer

C. 7 business days regardless of delivery method

Answer

D. No right to terminate once the purchase contract is fully executed

Question 3

Under the landmark California precedent Easton v. Strassburger codified in California Civil Code § 2079, what is the affirmative statutory duty of a licensed real estate agent in a residential 1-to-4 unit transaction?

Accepted Answer

B. To conduct a reasonably competent and diligent visual inspection of accessible areas of the property and disclose all material facts affecting value or desirability.

Answer

A. To perform an intrusive structural inspection of inaccessible attic crawlspaces and underground foundations.

Answer

C. To guarantee that all building permits and local municipal zoning laws have been strictly satisfied.

Answer

D. To hire and pay for a licensed professional home inspector on behalf of the buyer.

Question 4

What are the statutory maximum payout limits from the California Real Estate Consumer Recovery Account for unsatisfied judgments against a single licensed real estate agent or broker?

Accepted Answer

B. $50,000 per transaction and $250,000 maximum aggregate against one licensee

Answer

A. $20,000 per transaction and $50,000 maximum aggregate

Answer

C. $100,000 per transaction and $500,000 maximum aggregate

Answer

D. $250,000 per transaction with unlimited aggregate recovery

Question 5

Under California Civil Code § 2079.14, in a transaction where a broker represents both the seller and the buyer as a dual agent, which of the following actions is legally required?

Accepted Answer

B. The broker must obtain the informed written consent of both the seller and the buyer after delivering the Disclosure Regarding Real Estate Agency Relationship form.

Answer

A. Dual agency is completely illegal under California real estate law.

Answer

C. The broker must inform the buyer of the lowest price the seller will accept without seller authorization.

Answer

D. The broker must surrender half of their commission to the DRE Consumer Recovery Account.

Question 6

Under California Civil Code § 1103, a Natural Hazard Disclosure (NHD) statement must be provided to a prospective buyer if the residential property is located within which of the following designated statutory hazard areas?

Accepted Answer

B. A Special Flood Hazard Area (Zone A or V), an Area of Potential Flooding (dam inundation), a Very High Fire Hazard Severity Zone, a Wildland Fire Area, an Earthquake Fault Zone (Alquist-Priolo), or a Seismic Hazard Zone.

Answer

A. An area designated by local county health departments as having high pollen counts.

Answer

C. Any parcel located within 25 miles of an active oil refinery or coastal shipping lane.

Answer

D. Only residential properties built prior to 1978 containing lead-based paint.

Question 7

In California real estate law, how does the Subdivision Map Act differ fundamentally from the Subdivided Lands Law?

Accepted Answer

B. The Subdivision Map Act is a local planning law administered by cities/counties governing physical design (streets, sewers) for 2+ parcels; the Subdivided Lands Law is a state consumer protection law administered by the DRE regulating marketing/sales for 5+ parcels.

Answer

A. The Subdivision Map Act is administered by the DRE for 5+ parcels; the Subdivided Lands Law is administered by cities for 2+ parcels.

Answer

C. Both laws are strictly federal statutes enforced by HUD.

Answer

D. The Subdivided Lands Law applies only to agricultural parcels over 160 acres.

Question 8

In California, what four unities (PITT) must occur simultaneously to create and maintain a valid Joint Tenancy with the right of survivorship?

Accepted Answer

B. Possession, Interest, Time, and Title

Answer

A. Partnership, Indemnity, Title, and Trust

Answer

C. Property, Investment, Tax, and Transfer

Answer

D. Probate, Inheritance, Tenancy, and Trust

Question 9

Under California's Proposition 13 (California Constitution Article XIII A), what is the maximum basic ad valorem property tax rate, and what is the maximum permissible annual increase in the assessed value for inflation?

Accepted Answer

B. 1% of the full cash value (plus voter-approved local indebtedness bonds), and a maximum 2% annual increase in assessed value

Answer

A. 3% maximum base tax rate, with no limit on annual inflationary assessment increases

Answer

C. 0.5% base tax rate and a maximum 5% annual increase in assessed value

Answer

D. Flat 2% base tax rate reassessed every 10 years by the California Franchise Tax Board

Question 10

Under California Civil Code § 1675, if a buyer defaults on a purchase contract for an owner-occupied residential property of 1 to 4 units, what is the statutory maximum amount of earnest money deposit that the seller may retain as liquidated damages?

Accepted Answer

B. Up to 3% of the purchase price, provided the liquidated damages clause is separately initialed by both parties

Answer

A. 1% of the purchase price

Answer

C. 10% of the appraised value

Answer

D. The entire deposit regardless of amount

Question 11

Under the California Statute of Frauds (Civil Code § 1624), which of the following real estate agreements is NOT legally required to be in writing to be enforceable in a court of law?

Accepted Answer

C. A residential lease agreement for an initial term of 9 months

Answer

A. A contract for the sale of real property

Answer

B. An agreement authorizing or employing a real estate broker to purchase, sell, or lease real estate for compensation

Answer

D. An agreement that by its terms cannot be performed within one year from the date of making

Question 12

An investor evaluates an apartment building in Sacramento that generates an annual Net Operating Income (NOI) of $120,000. If comparable properties in the neighborhood indicate an 8% market capitalization rate, what is the estimated property value using the Income Capitalization Approach (IRV formula)?

Accepted Answer

B. $1,500,000

Answer

A. $960,000

Answer

C. $1,200,000

Answer

D. $1,800,000

Question 13

In California real estate financing, who are the three parties to a Deed of Trust, and what power does the Trustee hold upon borrower default?

Accepted Answer

B. Trustor (Borrower), Beneficiary (Lender), and Trustee (Neutral third party); the Trustee holds "bare legal title" with the Power of Sale to conduct a non-judicial foreclosure.

Answer

A. Mortgagor, Mortgagee, and Sheriff; the Sheriff conducts a court trial.

Answer

C. Grantor, Grantee, and County Recorder; the Recorder initiates automatic property seizure.

Answer

D. Buyer, Seller, and Escrow Agent; the Escrow Agent files an immediate quiet title action.

Question 14

Under California Business & Professions Code § 10148, how long must a licensed California real estate broker retain copies of all listings, deposit receipts, canceled checks, trust records, and other transaction documents?

Accepted Answer

B. 3 years from the date of closing or from the date of the listing if the transaction is not consummated

Answer

A. 1 year from the date of listing

Answer

C. 5 years from the date of broker license renewal

Answer

D. 7 years under IRS guidelines only

Question 15

In California real estate law, how does the state Rumford Fair Housing Act differ from the California Unruh Civil Rights Act?

Accepted Answer

B. The Unruh Civil Rights Act prohibits discrimination in all business establishments (including real estate brokerages); the Rumford Fair Housing Act specifically prohibits discrimination in the sale, lease, or financing of residential housing.

Answer

A. The Rumford Act applies only to commercial shopping malls, while the Unruh Act applies to agricultural farms.

Answer

C. Both acts were repealed by Proposition 13 in 1978.

Answer

D. The Rumford Act is enforced by the FBI, while the Unruh Act is enforced by local city councils.

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