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CA-Real-Estate exam Format | CA-Real-Estate Course Contents | CA-Real-Estate Course Outline | CA-Real-Estate exam Syllabus | CA-Real-Estate exam Objectives

Exam Code: CA Real Estate

Exam Name: CA-Real-Estate California Real Estate exam (DRE) - Salesperson

Number of Questions: 150 multiple-choice

Time Allotted: 3 hours

Passing Marks: 0% (at least 105 correct)





Property Ownership and Land Use Controls and Regulations 15%



- Classes of Property

- Real versus personal property

- Mobile homes/manufactured homes

- Land, improvements, fixtures, and appurtenances



- Property Characteristics

- Physical: land, subsurface rights, water rights, air rights

- Economic: location, amenities, scarcity



- Encumbrances and Limitations on Ownership

- Liens (voluntary/involuntary, general/specific)

- Easements (appurtenant, in gross, by necessity, prescription)

- Encroachments

- Restrictions (public and private: CC&Rs, zoning, building codes)



- Land Use Controls (Public and Private)

- Zoning and general/master plans

- Subdivision Map Act

- Environmental laws (CEQA, endangered species, coastal commission)

- Private controls: deeds, conditions, covenants, restrictions (CC&Rs)

- Homeowners associations (HOAs) and common interest developments (condos, PUDs, stock cooperatives, community apartment projects)





Laws of Agency and Fiduciary Duties 17%



- Creation and Termination of Agency Relationships

- Express vs. implied agency

- Ostensible agency

- Ratification, estoppel

- Termination: completion, expiration, mutual consent, death, destruction



- Types of Agency Relationships

- Universal, general, special agent

- Single agency, dual agency (with disclosure and consent), buyers agent



- Fiduciary Duties (OLD CAR + more)

- Obedience, Loyalty, Disclosure, Confidentiality, Accounting, Reasonable Care/Diligence

- Duty to disclose material facts

- Puffing vs. misrepresentation



- Disclosures Required in Agency Relationships

- Agency Disclosure Law (Civil Code § 2079.13–2079.24)

- Confirmation of Agency form (AD form)

- Disclosure of dual representation

- No secret profits





Property Valuation and Financial Analysis 14%



- Value Influences and Characteristics

- Principles of value (anticipation, contribution, substitution, conformity, highest and best use)

- Market forces (supply/demand, externalities)



- Appraisal Process and Methods

- Sales comparison (market) approach

- Cost approach (replacement vs. reproduction cost, depreciation)

- Income (capitalization) approach: GRM, GIM, cap rate, IRR



- Competitive Market Analysis (CMA)

- Adjustments, active/pending/sold comparables



- Valuation of Special Properties

- Condominiums, PUDs, leased fee/leasehold





Financing 9%



- General Concepts

- Promissory notes, deeds of trust, mortgages

- Hypothecation, acceleration clause, alienation clause



- Sources of Financing

- Institutional (banks, savings & loans) vs. non-institutional

- Primary vs. secondary mortgage market (Fannie Mae, Freddie Mac, Ginnie Mae)



- Government Programs

- FHA, VA, CalHFA, USDA



- Types of Loans and Terms

- Fixed, adjustable (ARM), hybrid, interest-only, reverse mortgages

- Impound/escrow accounts



- Truth in Lending (Regulation Z), RESPA, ECOA, CFPB rules

- Usury, prepayment penalties, points



5. Transfer of Property (approximately 8% – ~12 questions)



- Title Insurance and Escrow

- CLTA vs. ALTA policies

- Standard vs. extended coverage

- Escrow process, escrow holder duties



- Deeds and Types of Ownership

- Grant, quitclaim, warranty, trust deeds

- Types of vesting: community property, community property with right of survivorship, joint tenancy, tenancy in common



- Involuntary Transfer

- Foreclosure (judicial/non-judicial), trustees sale, redemption

- Adverse possession, escheat, eminent domain (condemnation)



- Recordation and Priority

- Chain of title, constructive notice, real notice





Real Estate Practice 25%



- Trust Account Management

- Commingling, conversion, record-keeping requirements



- Licensing Requirements

- Who needs a license, exemptions

- Broker vs. salesperson responsibilities

- Continuing education (45 hours every 4 years)



- Listing Agreements and Marketing

- Types: exclusive right to sell, exclusive agency, open, net

- Required disclosures (Megans Law, TDS, SPQ, smoke detector, water heater bracing, etc.)



- Purchase Agreements (California RPA)

- Offers, counteroffers, contingencies (appraisal, loan, inspection)

- Time is of the essence, liquidated damages, mediation/arbitration clauses



- Advertising and Fair Housing

- Blind ads, truthful advertising

- Federal Fair Housing Act, California Fair Employment & Housing Act (FEHA), Unruh Civil Rights Act, Holden Act



- Professional Conduct and Ethics

- DRE Code of Ethics, NAR (if applicable)





Contracts 12%



- General Contract Law

- Elements: offer, acceptance, consideration, legal purpose, competent parties

- Statute of Frauds, parol evidence rule



- Types of Contracts

- Bilateral vs. unilateral, express vs. implied

- Valid, void, voidable, unenforceable



- Performance, Breach, and Remedies

- Specific performance, liquidated damages, rescission

- Novation, assignment, delegation

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