California Real Estate Exam Overview
The California Real Estate Salesperson Exam is administered by the California Department of Real Estate (DRE) and is required to obtain a real estate license in California. The exam is known for being more challenging than many other states, with a first-time pass rate around 51%.
Exam Quick Facts
| Detail | Information |
|---|---|
| Questions | 150 multiple-choice |
| Time limit | 3 hours 15 minutes |
| Passing score | 70% (105/150 correct) |
| Exam fee | $60 (salesperson) |
| Pass rate | ~51% first-time |
| Administered by | California DRE |
| Testing format | Computer-based |
California Real Estate License Requirements
Before you can take the exam, you must meet these requirements:
1. Age Requirement
- Must be 18 years of age or older
2. Education Requirements
Complete three college-level courses:
| Required Course | Hours |
|---|---|
| Real Estate Principles | 45 hours |
| Real Estate Practice | 45 hours |
| Elective Course | 45 hours |
| Total | 135 hours |
Elective options include:
- Legal Aspects of Real Estate
- Real Estate Finance
- Real Estate Appraisal
- Property Management
- Real Estate Economics
- Real Estate Office Administration
3. Application Requirements
- Complete DRE Salesperson Examination Application
- Submit $60 examination fee
- Provide fingerprints for background check
- Submit official transcripts showing completed courses
California Real Estate Exam Topics
The exam covers these major content areas:
| Topic Area | Weight | Questions (approx.) |
|---|---|---|
| Property Ownership and Land Use | 15% | 22-23 questions |
| Laws of Agency | 17% | 25-26 questions |
| Valuation and Market Analysis | 14% | 21 questions |
| Financing | 13% | 19-20 questions |
| Transfer of Property | 8% | 12 questions |
| Practice of Real Estate | 25% | 37-38 questions |
| Contracts | 8% | 12 questions |
Topic Breakdown
Property Ownership and Land Use (15%)
- Types of property ownership (fee simple, life estate, etc.)
- Encumbrances and liens
- Government regulations and zoning
- Environmental hazards
- Land use controls
Laws of Agency (17%)
- Types of agency relationships
- Agent duties and responsibilities
- Disclosure requirements
- Dual agency
- Termination of agency
Valuation and Market Analysis (14%)
- Appraisal methods (sales comparison, cost, income)
- Market data analysis
- Factors affecting value
- Comparative market analysis (CMA)
Financing (13%)
- Types of loans (conventional, FHA, VA)
- Mortgage instruments
- Secondary mortgage market
- Truth in Lending Act (TILA)
- RESPA requirements
Transfer of Property (8%)
- Title insurance
- Escrow process
- Deeds and recording
- Closing procedures
- Prorations
Practice of Real Estate (25%) — Largest section
- Licensing requirements
- Professional conduct
- Trust fund handling
- Fair housing laws
- Advertising regulations
- Commission and compensation
Contracts (8%)
- Contract elements and formation
- Purchase agreements
- Listing agreements
- Option contracts
- Lease agreements
California-Specific Topics to Know
The California exam includes state-specific content not found on other state exams:
California Fair Housing Laws
- Unruh Civil Rights Act
- California Fair Employment and Housing Act
- Rumford Fair Housing Act
- Additional protected classes in California
California Disclosures
- Transfer Disclosure Statement (TDS)
- Natural Hazard Disclosure (NHD)
- Mello-Roos disclosure
- Earthquake safety disclosure
- Smoke detector compliance
California Real Estate Law
- California Civil Code sections
- Business and Professions Code
- DRE regulations
- Trust fund handling requirements
California Property Taxes
- Proposition 13 tax limitations
- Property tax assessment
- Supplemental property taxes
- Homeowner exemptions
California Real Estate Exam Pass Rate
The California real estate exam has one of the lower pass rates in the nation:
| Metric | Rate |
|---|---|
| First-time salesperson pass rate | ~51% |
| Overall salesperson pass rate | ~49% |
| First-time broker pass rate | ~44% |
| Overall broker pass rate | ~42% |
Why the Pass Rate is Lower
California's exam is challenging for several reasons:
- 150 questions — More questions than most states (often 100-120)
- State-specific content — Heavy emphasis on California laws and regulations
- Broad content coverage — All seven topic areas are thoroughly tested
- Time pressure — Less time per question than some states
How to Beat the Odds
Candidates who pass typically:
- Study 80-120 hours total
- Complete 500+ practice questions
- Take 3-5 full-length practice exams
- Score 80%+ on practice exams before scheduling real exam
- Review California-specific laws and disclosures extensively
California Real Estate Exam Study Plan
Recommended Timeline: 6-8 Weeks
| Week | Focus | Hours |
|---|---|---|
| Weeks 1-2 | Property Ownership, Land Use, Agency | 20-25 |
| Weeks 3-4 | Financing, Valuation, Contracts | 20-25 |
| Weeks 5-6 | Transfer of Property, Practice of RE | 20-25 |
| Weeks 7-8 | Practice exams, CA-specific review | 25-30 |
| Total | 85-105 hours |
Study Tips for California Exam
-
Focus on the Practice of Real Estate section — It's 25% of the exam
-
Master California disclosures — Know every required disclosure
-
Learn the math — Practice calculations for:
- Prorations
- Commission calculations
- Loan-to-value ratios
- Property tax calculations
- Cap rates and GRM
-
Memorize key numbers — California has specific requirements:
- Trust fund deposit deadlines
- License renewal periods
- Advertising requirements
- Record retention periods
-
Use California-specific prep materials — Generic national prep isn't enough
California Real Estate Exam Math
Math questions typically make up 10-15% of the exam. Key calculations include:
Commission Calculations
Commission = Sale Price × Commission Rate
Split = Commission × Agent's Percentage
Example: A home sells for $500,000 with 6% commission, split 50/50 between listing and selling agents.
- Total commission: $500,000 × 6% = $30,000
- Each agent's brokerage: $30,000 ÷ 2 = $15,000
Proration Calculations
Daily Rate = Annual Amount ÷ 365 (or 360)
Proration = Daily Rate × Days Owed
Loan-to-Value (LTV)
LTV = Loan Amount ÷ Appraised Value × 100
Capitalization Rate
Cap Rate = Net Operating Income ÷ Property Value
Property Value = NOI ÷ Cap Rate
Gross Rent Multiplier (GRM)
GRM = Sale Price ÷ Gross Monthly Rent
Exam Day Preparation
What to Bring
- Two forms of ID (one government-issued with photo)
- Exam confirmation email
- No phones, watches, or electronic devices allowed
Testing Center Information
California DRE exams are offered at eLicensing test centers in these cities:
- Sacramento
- Oakland
- Fresno
- Los Angeles
- San Diego
During the Exam
- 150 questions in 3 hours 15 minutes = ~1.3 minutes per question
- Flag difficult questions and return to them
- Manage your time—don't spend too long on any question
- No penalty for guessing—answer every question
If You Don't Pass
If you don't pass the California real estate exam:
- No waiting period — You can reschedule immediately
- Pay new exam fee — $60 each attempt
- Analyze your score report — Identify weak topic areas
- Study differently — More practice questions, less passive reading
- Consider additional courses — California offers exam prep courses
There's no limit to the number of times you can take the exam, but your two-year examination eligibility period does expire.
California Real Estate Exam vs Other States
| State | Questions | Passing Score | Pass Rate |
|---|---|---|---|
| California | 150 | 70% | ~51% |
| Texas | 110 | 70% | ~58% |
| Florida | 100 | 75% | ~55% |
| New York | 75 | 70% | ~65% |
| Arizona | 90 | 75% | ~70% |
California's combination of more questions and broad content coverage makes it one of the more challenging state exams.
Key California Real Estate Terms
Must-know vocabulary for the exam:
| Term | Definition |
|---|---|
| Mello-Roos | Special tax district for community facilities |
| Proposition 13 | Limits property tax increases to 2% per year |
| TDS | Transfer Disclosure Statement (required seller disclosure) |
| NHD | Natural Hazard Disclosure report |
| DRE | California Department of Real Estate |
| Unruh Act | Prohibits discrimination in business establishments |
| Cal-FIRPTA | California withholding for non-resident sellers |
Ready to Start Studying?
Our free Real Estate exam prep covers all the fundamental topics you need to master:
Frequently Asked Questions
How long does it take to get a California real estate license?
The typical timeline is 3-6 months: 2-3 months for pre-license education (135 hours), 2-4 weeks for DRE processing, and 2-4 weeks of dedicated exam study. Some accelerated programs complete education in 4-6 weeks.
Is the California real estate exam hard?
Yes, the California real estate exam is considered one of the more difficult state exams with a 51% first-time pass rate. The 150-question format and heavy emphasis on California-specific laws make thorough preparation essential.
How many times can you take the California real estate exam?
There is no limit to the number of attempts, but you must pass within your two-year examination eligibility period. Each attempt costs $60. If you don't pass within two years, you'll need to reapply.
Can I take the California real estate exam online?
No, the California real estate exam must be taken in person at a DRE-authorized testing center. Exams are offered at locations throughout California including Sacramento, Oakland, Fresno, Los Angeles, and San Diego.
What score do I need to pass the California real estate exam?
You need a score of 70% (105 out of 150 questions) to pass the California real estate salesperson exam. The broker exam also requires 70% but has fewer questions (200 questions, 140 needed to pass).