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Exam Number : CA-Real-Estate
Exam Name : California Real Estate test (DRE) - Salesperson
Vendor Name : Real-Estate
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CA-Real-Estate test Format | CA-Real-Estate Course Contents | CA-Real-Estate Course Outline | CA-Real-Estate test Syllabus | CA-Real-Estate test Objectives


Exam Code: CA Real Estate

Exam Name: CA-Real-Estate California Real Estate test (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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The California Real Estate test is a standardized test that individuals must pass in order to become licensed real estate professionals in California. The test is designed to assess an individual's knowledge and understanding of California real estate laws, principles, practices, and procedures. The test covers a wide range of topics, including real estate finance, property ownership and transfer, contracts, agency relationships, and real estate appraisal.

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