Educational Resources: Take California Real Estate Sample Tests, Application Steps and Tips

For insight into the real estate licensing examination, consider the following information.

Applying for the Exam

The CRE offers the exam in five locations throughout the state: Sacramento, Oakland, Fresno, La Palma and San Diego. There is a $60 examination fee.

The first reschedule is $15 and the second reschedule is $30.

Submit an application to the CRE to take the exam either online or by mail. The processing times for approving applications vary, and could take up to a month or more.

Once approved, the CRE will send a notice asking you to schedule the exam online, or with the scheduled exam date if you submitted a paper application and requested they schedule you for the first open date.

Requirements include:

• Transcripts showing completion of required courses
• Name change documentation if current name is different than the name on any required documents
• Documentation to support any requests for ‘reasonable accommodations.’ If the disability is observable and does not require altering the exam procedure in any way, extra time,etc., and simply involves making more space for a wheelchair, special seating or special equipment, no verification is required. If professional verification is necessary, it must be provided on the letterhead of the specialist, and include information about the disability and special testing needs, the recommended accommodations or modifications, and the name, title, phone number, signature and professional license or certification number of the medical authority or specialist.

Overview of the Test

The test consists of 150 multiple-choice questions completed over 3 hours. A passing score is 70%.

Centers offering electronic tests can give results as soon as it is completed. If a center uses pen and paper, expect results in a week or so.

Data from the most recent year studied found about 53% of people passed the test on the first try.

In addition to the information obtained in the required courses and practice exams, the CRE offers a resource called The Reference Book: A Real Estate Guide available online or for purchase at DRE locations.¹
The department also provides a comprehensive online book covering all aspects of real estate law in California.²

Practice of Real Estate and Disclosures (25%-37-38 questions)

• Agency Supervision
• California Real Estate Recovery Fund
• Commercial/Industrial/Income Properties
• Disclosure of Material Facts Affecting Property Value
• DRE Jurisdiction and Disciplinary Actions
• Fair Housing Laws
• General Ethics
• Licensing and Continuing Education Requirements and Procedures
• Natural Hazards Disclosure Statements
• Need for Inspection and Obtaining/Verifying Information
• Permitted Activities of Unlicensed Sales Assistants
• Property Management
• Record-Keeping Requirements
• Reports
• Servicing Diverse Populations
• Specialty Areas
• Technology
• Transfer Disclosure Statement
• Trust Account Management
• Truth in Advertising

Laws of Agency and Fiduciary Duty (17%: 25 -26 questions)

• Commission and Fees
• Creation of Agency and Agency Agreements
• Disclosure of Acting as Principal or Other Interest
• Disclosure of Agency
• Law, Definition and Nature of Agency Relationships, Types of Agencies and Agents
• Responsibilities of Agent to Non-Client Third Parties
• Responsibilities of Agent to Seller/Buyer as Principal
• Termination of Agency

Property Ownership and Land Use Controls and Regulations (15%:22-23 questions)

• Classes of Property
• Descriptions of Property
• Encumbrances
• Environmental Hazards and Regulations
• Government Rights in Land
• Private Controls
• Property Characteristics
• Public Controls
• Special Categories of Land
• Types of Ownership
• Water Rights

Property Valuation and Financial Analysis (14%:21 questions)

• Value
• Methods of Estimating Value
• Financial Analysis

Contracts (12%:18 questions)

• Advanced Fee
• Agreements
• Buyer/Broker Agreements
• General
• Listing Agreements
• Offers/Purchase Contracts
• Promissory Notes/Securities
• Purchase/Lease Options

Financing (9%:13 to 14 questions)

• General Concepts
• Sources of Financing
• Types of Loans
• Mortgages/Deeds of Trust/Notes
• Government Programs
• Financing/Credit Laws
• Loan Brokerage
• Types of Loan Originators

Transfer of Property (8%:12 questions)

• Deeds
• Escrow
• Special Processes
• Tax Aspects
• Title Insurance
• Transfer through Court Supervision
• Types of Vesting

Sample Questions:

Which element is required in a valid bill of sale?

(a) The acknowledgment
(b) The date
(c) The seller’s signature
(d) The verification

Which of the following instruments transfer possession of real property but does not transfer ownership?

(a) A trust deed
(b) A sublease
(c) A security agreement
(d) An easement grant

How many years is a real estate broker required to keep copies of trust account records?

(a) One year
(b) Three years
(c) Five years
(d) Seven years

Which of the following legal processes gives the government the right to take private land for public use?

a) Eminent domain
(b) Escheat
(c) Police Power
(d) Reverter

Where are grant deeds recorded for real property?

(a) With the title company
(b) With the lender
(c) With the county
(d) With the city

What To Know for the Examination Center

Acceptable forms of ID to sit for the exam include:

• Current state-issued driver’s license or DMV ID
• U.S. passport or foreign-issued passport
• U.S. Military ID card

Prohibited Items:

• Backpacks
• Briefcases
• Calculators
• Cameras
• Cell phones
• Drink
• Food
• Gum
• Hats or caps
• Keys
• Lapel pins
• Laptops
• PDAs
• Pens
• Purses
• Smart glasses
• Study materials
• Suitcases
• Tablets
• Video or digital recording devices
• Wallets
• Watches
• Other items restricted by the proctors

Exam locations typically have individual lockers to store personal belongings. When these are unavailable, a storage table is set up.

Sponsoring Broker

When applying for the real estate agent exam separately from the real estate license, the CRE does not require applicants to have a sponsoring broker. If you submit a combined application, then you must get a sponsoring broker.

Essentially the process of finding a sponsoring broker is like searching for an employer. Compile a list of firms and make contact.

Step-By-Step Guide for California Department of Real Estate License Application Submission

Most people file a combo exam/licensing application but you can file for both separately. Applications can be submitted online or submitted by mail.

Submitting online will result in faster processing times.

For online filings:

Step 1: Create an e-Licensing account on the California Real Estate Department site.³

Step 2: Complete combo the application. It is relatively short at only 3 pages, but contains additional pages with instructions and important information.
Be sure to read it carefully.

Step 3:Upload documents showing completion of required courses and Live Scan form for fingerprints

Step 4: Submit the required fees. $60 for the exam and $245 for the license.
Payment can be submitted by credit card with form RE 909. The CRE also accepts payment by check or money order made out to the Department of Real Estate.
Fees are non-refundable and non-transferable.

If mailing in your application, send all the above documents to:

Bureau of Real Estate
PO Box 137001
Sacramento, CA 95813-7001

Electing To Become a Member of the National Association of Realtors® (NAR)

While the terms ‘real estate agent’ and ‘realtor®’ are often used interchangeably, they are not the same. A realtor® belongs to the National Association of Realtors®, the largest trade group in the United States, and must meet certain criteria to join.

If you are considering joining the association upon getting your license, the following requirements must be satisfied for non-principals (someone who isn’t a sole proprietor, partner, corporate office, or branch manager of a real estate firm):

1. Have a valid real estate license and be employed by a firm located in the state where the association is located or a bordering state.
2. Must be affiliated with or employed by a Realtor® as an independent contractor, whether in the principal’s office or a branch office.
3. No record of civil judgments within the last 7 years in the area of civil rights laws, real estate license laws, or any laws prohibiting unprofessional conduct.
4. If there are any criminal convictions within the last 7 years related to the real estate business or would put customers, clients, or other real estate professionals at risk, the applicant must provide mitigating factors the association can consider in relation to the crimes. Crimes that would fall under this umbrella include any that would impact the applicant’s ability to fulfill the responsibilities and obligations of the job or any crimes considered violent, dishonest, or deceptive.
   Examples of mitigating factors include age at the time the crime was committed, the seriousness of the crime, how long ago it happened, and any rehabilitative efforts.
5. Make a written application
6. Provide information related to any of the following situations:
   a. Any misuse of the term ‘realtor®’
   b. Final findings of Code of Ethics Violations within the last 3 years
   c. Pending arbitration hearings or requests
   d. Pending ethics complaints
   e. Unpaid arbitration awards or unpaid financial obligations to any relevant associations
   f. Unsatisfied discipline pending
7. Must agree to abide by the National Association of Realtors® Code of Ethics.
8. Must agree to abide by rules, regulations, policies, and constitution of the National Association of Realtors®, the local board, and the state association.
9. Complete the association’s orientation course
10. The application must be acknowledged by a Realtor® Principal.

How Long Does the Real Estate Application Usually Take?

It can take anywhere from 3 to 6 months to get a real estate license, from the time courses are started to the state officially issuing the license. The DRE must approve your application before taking your exam, and that typically takes 4 to 8 weeks.

The time for completed background checks may vary. How quickly you move through your coursework will factor in.