Feeling nervous about your upcoming license exam? You're not alone. Most aspiring agents dream it at least a little bit, too. But you don't need to worry. With the right preparation, you can ace the exam on your first try. You'll be so much closer to finally getting your license.
Understanding what is on the California real estate license exam helps ease your nerves. That's what we're covering today — along with some tried-and-true study tips that will set you up for success. Let's dive in.
California Real Estate License Exam Basics
The California Department of Real Estate (DRE) creates and administers the exam. On the big day, you'll have three hours to answer 150 multiple-choice questions. You don't have to get them all right, though. To pass, you only need a score of at least 70%.
What Is on the California Real Estate License Exam?
The California real estate license exam is split into seven areas.
1. Property Ownership and Land Use Controls and Regulations
This section makes up 15% of the test, around 22-23 questions. Some of the topics covered include:
Classes of property
Property characteristics
Encumbrances
Types of ownership
Descriptions of property
2. Laws of Agency and Fiduciary Duties
This section makes up 17% of the test, or 25-26 questions. You may be asked about:
Law, definition, and nature of agency relationships
Responsibilities of agent to seller/buyer as principal
Disclosure of acting as principal or other interest
Termination of agency
Commission and fees
3. Property Valuation and Financial Analysis
This section makes up 14% of the test, 21 questions. It covers:
Value
Methods of estimating value
Financial analysis
4. Financing
This section makes up 9% of the test, approximately 13-14 questions. Expect questions about:
Types of loans
Sources of financing
Mortgages and deeds of trust
Government programs
Financing and credit laws
5. Transfer of Property
This section makes up 8% of the test, roughly 12 questions. Not that many, but be sure to study:
Title insurance
Deeds
Escrow
Tax aspects
Transfer through court supervision
6. Practice of Real Estate and Disclosures
This section makes up 25% of the test, around 37-38 questions. It's the longest part of the exam, and a few of the topics covered include:
Trust account management
Fair housing laws
Truth in advertising
Property management
Commercial, industrial, and income properties
Specialty areas
Servicing diverse populations
7. Contracts
This section makes up 12% of the test, so 18 questions. You may be quizzed on:
Listing agreements
Buyer broker agreements
Offers and purchase contracts
Purchase and lease options
Advanced fees
How to Study for the California Real Estate License Exam
Everything you need to know to ace the exam is covered in the 135-hour pre-licensing course. If you took notes as you progressed through the modules, great! They will help you immensely in preparing for the big day.
But that's not the only way to study for the California real estate licensing exam. Here are a few other study strategies you might find useful.
Review California Laws and Regulations
The DRE has published a reference book that compiles state laws and regulations aspiring agents must know. But because it's not updated often, you could instead read through one of PrepAgent's exam prep ebooks. They're written by experts who have been in your shoes at the start of their careers.
Quiz Yourself with Flashcards
Flashcards allow you to study on the go, no matter where you are. They're great for quizzing yourself. Try making a set for each exam section or use the online interactive flashcards created by PrepAgent.
Take Practice Tests at Home
Practice makes perfect! That's a cliché for a reason: it works. Don't believe it? Try taking a free California real estate license test online to see for yourself. Answering mock questions at home helps you cement what you've learned and assess if you're finally ready for the real deal.
Set Yourself Up for Success with PrepAgent
Failing the exam once isn't the end of the world, but passing on your first try means no worrying about rescheduling and retesting fees. Signing up for PrepAgent by Aceable increases your chances. You'll get access to dozens of exam prep videos, webinars, ebooks, and flash cards. And the best part? You can take thousands of practice questions online to build up your confidence.
Updated 6/27/24