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FINRA · 2026 · Free

Free California Real Estate Practice Exam

California real estate salesperson practice exam. 150 questions, 70% to pass. Covers Prop 13, TDS, and CA-specific laws.

150Questions
3 hrsTime Limit
70%Passing Score
PSI / CA DREAdministered By
135 hrsPre-License Hrs

California Real Estate Exam

Practice by CA Real Estate Topic

Target a specific area, or launch the full exam below

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Real Estate Principles

Property ownership, contracts, agency, deeds, fair housing, and appraisal. Core national content.

20 questions
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Real Estate Finance

Mortgages, loan types, RESPA, TILA, title insurance, and closing costs.

20 questions
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California State Law

DRE licensing, Prop 13, TDS, NHD, Unruh Act, dual agency, Mello-Roos, and CA-specific regulations.

25 questions

About the California Real Estate Exam

The California real estate salesperson licensing exam is one of the most comprehensive state real estate exams in the country, administered by PSI on behalf of the California Department of Real Estate (DRE). Candidates must complete 135 hours of approved pre-license education across three required courses: Real Estate Principles (45 hours), Real Estate Practice (45 hours), and one DRE-approved elective (45 hours).

The exam contains 150 questions with a 3-hour 15-minute time limit and a 70% passing score — you need 105 correct answers. California's exam is known for emphasizing state-specific law including the California Civil Code, agency disclosures, and environmental regulations that are unique to the state.

150Questions
3 hrsTime Limit
70%Passing Score
PSI / CA DREAdministered By
135 hrsPre-License Hrs

California Real Estate Exam Topic Breakdown

SectionApprox. QuestionsKey Topics
National — Real Estate Principles~80Property ownership, agency, contracts, financing, appraisal, fair housing
CA State — License Law & DRE Rules~30B&P Code, license types, DRE enforcement, broker supervision
CA State — Disclosures & Agency~25TDS, NHD, Agency Disclosure, Megan's Law, HOA disclosures
CA State — Finance & Taxation~15Prop 13, transfer tax, Cal-FIRPTA, RESPA in CA context

Sample California Real Estate Exam Questions

1. Under California law, a Transfer Disclosure Statement (TDS) must be provided by the seller:

  • A. Only if the property has known defects
  • B. For all residential properties of one to four units
  • C. Only in transactions involving a licensed real estate agent
  • D. Within 7 days of the close of escrow
Correct: B. California Civil Code §1102 requires sellers of residential property with one to four dwelling units to provide a TDS regardless of whether the property has known defects. The TDS must be provided as soon as practicable before transfer of title. If provided late, the buyer has a 3-day right of rescission (or 5 days if delivered by mail). The TDS requirement applies even in for-sale-by-owner transactions.

2. A real estate salesperson in California receives an earnest money deposit. Under California law, the salesperson must:

  • A. Deposit it into their personal trust account within 3 business days
  • B. Deliver it to their employing broker or to escrow within 3 business days
  • C. Hold it until the purchase agreement is signed by all parties
  • D. Forward it directly to the title company
Correct: B. Under California Business and Professions Code §10145, a salesperson who receives funds belonging to others in a real estate transaction must deliver those funds to their employing broker no later than 3 business days following receipt. The broker is then responsible for placing the funds in a trust account or forwarding them to escrow. Salespersons cannot maintain their own trust accounts.

3. California's Natural Hazard Disclosure (NHD) Statement must disclose that a property is located in which of the following zones?

  • A. 100-year FEMA flood zone only
  • B. Earthquake fault zone only
  • C. All natural hazard zones including fire, flood, seismic, and dam inundation areas
  • D. Only zones that affect the property's insurability
Correct: C. California's NHD Statement must disclose six specific natural hazard zones: Special Flood Hazard Area (FEMA), Area of Potential Flooding (dam failure), High Fire Hazard Severity Zone, Wildland Fire Area, Earthquake Fault Zone, and Seismic Hazard Zone. The seller (or their agent) must provide this disclosure before close of escrow. Third-party NHD companies commonly prepare this report.

Study Tips for the California Real Estate Exam

California has an unusually high number of mandatory disclosures — the TDS, NHD, Agency Disclosure, Megan's Law Disclosure, and HOA disclosures are all tested heavily. Know which ones are required in which transactions, who prepares them, when they must be delivered, and the buyer's rescission rights if they are delivered late.

Proposition 13 and California property tax rules are unique to the state and appear frequently. Understand how assessed value is established, the 2% annual increase cap, and the reassessment triggers (change in ownership, new construction). Also review California's agency law — particularly the requirement to disclose the agency relationship in writing before an offer is made.

Licensing in a nearby state? See the Arizona real estate practice exam or the Nevada practice exam. National exam content is covered in our national real estate practice exam and the real estate study guide. Many agents also add an insurance license — see the California P&C insurance exam.

How to Get Your California Real Estate License

Getting a California real estate salesperson license requires completing state-approved pre-license education, passing the licensing exam, and activating your license with a sponsoring broker. Most candidates complete the process in 2–5 months.

135 hrsPre-License Hrs
150Exam Questions
70%Passing Score
PSIExam Provider
SalespersonLicense Type

Steps to Get Your California Real Estate License

StepWhat to Do
1. Complete Pre-License EducationComplete 135 hours of coursework from a state-approved school covering real estate principles, contracts, finance, and California-specific law.
2. Pass the Licensing Exam150-question exam administered by PSI, covering national real estate principles and California state law. Passing score: 70%.
3. Submit Your ApplicationApply to the California Department of Real Estate with your exam results, background check, and required fees.
4. Activate with a Sponsoring BrokerYour license must be affiliated with a licensed sponsoring broker before you can legally represent clients or earn commissions in California.

What to Focus On for the California State Exam

Beyond national real estate principles, the California exam places particular emphasis on California agency disclosure (AD form), Transfer Disclosure Statement, and natural hazard disclosures. Mastering your state's specific rules in this area is critical for both passing the exam and practicing effectively in California.

Our free California real estate practice exam covers both national and state-specific content. For a broader review of general principles, see the national real estate practice exam and the real estate exam study guide.

Frequently Asked Questions — California Real Estate Exam

How many questions are on the California real estate exam?

The California salesperson exam contains 150 questions with a 3-hour 15-minute time limit. The passing score is 70%, meaning you need to answer at least 105 questions correctly. The exam is administered by PSI on behalf of the California Department of Real Estate.

What pre-license education is required in California?

California requires 135 hours of DRE-approved pre-license education across three courses: Real Estate Principles (45 hours), Real Estate Practice (45 hours), and one approved elective course (45 hours). You can apply to take the exam after completing Real Estate Principles, but you must complete all three courses before your license is issued.

What is the California Transfer Disclosure Statement?

The Transfer Disclosure Statement (TDS) is a legally required disclosure form that sellers of one-to-four unit residential properties must provide to buyers. It covers the seller's knowledge of the property's condition including structural items, systems, environmental hazards, and legal issues. The seller, listing agent, and buyer's agent each have separate sections to complete. Late delivery triggers a 3-day rescission right for the buyer.

How long is a California real estate license valid?

A California real estate salesperson license is valid for four years. To renew, you must complete 45 hours of DRE-approved continuing education, including mandatory courses in ethics, agency, fair housing, trust fund handling, and risk management. First-time renewals have specific required courses.

What is Proposition 13 and how does it affect California real estate?

Proposition 13, passed in 1978, limits property tax assessments in California. It caps the property tax rate at 1% of assessed value, limits annual increases in assessed value to 2%, and requires reassessment to current market value only when a change of ownership or new construction occurs. This means long-term property owners often pay far less in taxes than buyers at current market prices — a key dynamic in the California market tested on the exam.

Can I take the California real estate exam online?

California allows applicants to take the real estate salesperson exam via remote online proctoring through PSI's platform, as well as at in-person testing centers. Online testing requires a compatible computer, webcam, and a quiet, private testing environment. You must schedule through eLicensing on the DRE website.

What is the difference between a California real estate salesperson and a broker?

A salesperson must work under the supervision of a licensed broker and cannot act independently. A broker can operate independently, hire and supervise salespersons, and manage their own brokerage. To become a broker in California, you need 2 years of full-time licensed salesperson experience within the past 5 years, 8 college-level courses, and must pass the broker exam.

Complete Pre-License Education
135 hours of California-approved coursework covering real estate principles, law, finance, and California-specific regulations.
Step 2
Pass the Licensing Exam
150-question exam administered by PSI. Passing score: 70%. The exam covers national real estate principles and California-specific law.
Step 3
Apply for Your License
Submit your application to the California Department of Real Estate along with your background check and exam results.
Step 4
Activate with a Broker
Your California license must be affiliated with a licensed sponsoring broker before you can legally represent buyers and sellers and earn commissions.

California Real Estate License Requirements at a Glance

RequirementDetail
Pre-License Education135 hours (California-approved school)
Exam Questions150 questions (national + state sections)
Passing Score70%
Exam ProviderPSI
License TypeReal Estate Salesperson
Licensing AuthorityCalifornia Department of Real Estate

Key California-Specific Topic to Know

Beyond national real estate principles, the California exam places particular emphasis on California agency disclosure (AD form), Transfer Disclosure Statement, and natural hazard disclosures. Understanding your state's specific requirements in this area is essential for both passing the exam and practicing real estate effectively in California.

Our free California real estate practice exam covers both the national and state-specific content you need to pass. For a broader review of general principles, see the national real estate practice exam and the real estate exam study guide.

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