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Quizzes > Business & Finance > Business & Industry

Ready to Ace the California Real Estate Practice Test?

Dive into Realistic California Real Estate Exam Practice Questions!

Editorial: Review CompletedCreated By: Cil SandovalUpdated Aug 25, 2025
Difficulty: Moderate
2-5mins
Learning OutcomesCheat Sheet
Paper art illustration for California real estate practice test quiz on dark blue background

Use this free California real estate practice test to get used to the state exam format and spot your gaps before test day. Questions cover property law, agency, and finance, so you practice what counts. For more practice, see our Texas prep or try more Q&A .

Which document is required in most California residential 1- to 4-unit sales to disclose known property defects by the seller?
Good Faith Estimate (GFE)
Uniform Residential Loan Application (URLA)
Seller's Affidavit of Title only
Transfer Disclosure Statement (TDS)
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In California, which agency relationship is created when a broker represents both the buyer and the seller in the same transaction with informed written consent?
Special agency
Gratuitous agency
Universal agency
Dual agency
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Which instrument is typically used to secure a real estate loan in California?
Deed of trust
Installment land contract only
Mortgage only
UCC-1 financing statement
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A listing where only one broker is authorized to represent the seller, the broker is paid only if they procure the buyer, and the seller can sell on their own without owing a commission, is called what in California?
Exclusive agency listing
Net listing
Open listing
Exclusive right to sell listing
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Which disclosure is mandated for most pre-1978 residential properties in California due to potential health hazards?
Lead-Based Paint Disclosure
Asbestos Operations Plan
Mold Remediation Certificate
Radon Mitigation Disclosure
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The Natural Hazard Disclosure (NHD) statement in California typically includes which of the following?
Appraisal report summary
Whether the property is in a Special Flood Hazard Area
Homeowners association meeting minutes
Occupant criminal history
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Which document establishes the neutral third party's instructions to close a California real estate transaction?
Escrow instructions
Certificate of occupancy
Preliminary title report
GRM worksheet
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Which party typically holds legal title under a deed of trust in California until the loan is paid off?
Trustor
Beneficiary
Trustee
Grantor
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When must the Agency Disclosure form be presented to a seller by a listing agent in California?
At closing
Before or at the time of entering into the listing agreement
Only if the buyer requests it
After the first open house
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In California, which of the following is TRUE regarding nonjudicial foreclosure under a deed of trust?
There is no statutory right of redemption after a trustee's sale
It cannot be used for residential property
A court order is required to conduct the sale
The borrower always has 1 year to redeem after sale
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What is the best measure for screening the value of a 4-unit residential income property in California when detailed expense data is limited?
Debt Coverage Ratio only
Loan-to-Value Ratio
Price per square foot only
Gross Rent Multiplier (GRM)
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Megan's Law in California requires licensees to advise buyers about what?
Availability of a public database for registered sex offenders
Exact locations of offenders in the neighborhood
Zoning map changes in the last 5 years
Local school performance ratings
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A broker advertising a listed property on social media in California must include which identifier on first point of contact advertising?
Home warranty policy number
Escrow number
Licensee's DRE license number
Title officer's name
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Which of the following sellers is generally exempt from delivering a TDS in California, though still required to disclose known material facts?
Investor selling a triplex through a broker
Court-appointed probate executor
Married couple selling a single-family home
Individual selling a duplex they lived in
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Which covenant in a grant deed in California implies that the grantor has not conveyed the same estate to another and the property is free from undisclosed encumbrances made by the grantor?
Covenant of quiet enjoyment by tenants only
Covenant of seisin and right to convey (implied) and against encumbrances by grantor
Covenant of warranty forever to all defects
Covenant to provide title insurance
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Which of the following best describes a net listing in California?
A listing where the broker nets only marketing costs
A listing that prohibits cooperating brokers
A listing where the commission is a fixed flat fee
A listing where the seller sets a net price and the broker keeps any excess as commission
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If a California buyer requests to take possession prior to closing, the safest practice is to:
Allow occupancy but prohibit utilities
Give keys without documentation as a courtesy
Tell escrow to record early without lender approval
Execute a written interim occupancy agreement with clear terms and risk allocation
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Which timeframe is part of California's nonjudicial foreclosure process under a deed of trust?
A minimum 60-day cure period after Notice of Trustee's Sale
A minimum of 3 months after recording the Notice of Default before scheduling sale
Immediate sale upon recording Notice of Default
A mandatory 12-month redemption period after sale
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Which of the following is TRUE about adverse possession in California?
Claimant need not be open and notorious
Claimant must occupy for 5 years and pay property taxes during that period
Claimant must hold a recorded deed from the owner
Claimant must obtain the neighbor's written consent
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Which statement about mechanic's liens in California is correct?
They cannot attach to owner-occupied residential property
They are always junior to later-recorded trust deeds
They require a court judgment before recording a claim of lien
They can take priority based on the date work commenced, not the recording date
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Study Outcomes

  1. Interpret Exam Questions -

    Decode the format and terminology of California real estate practice exam questions to improve accuracy and speed.

  2. Apply Property Law Principles -

    Utilize foundational property law concepts in realistic scenarios involving ownership, transfers, and encumbrances.

  3. Analyze Sales Strategy Scenarios -

    Evaluate common real estate sales techniques and best practices through practice exam questions.

  4. Identify Knowledge Gaps -

    Pinpoint areas of strength and weakness based on your quiz performance to focus further study.

  5. Develop Exam Time-Management -

    Practice pacing and question prioritization under simulated exam conditions to optimize test-day performance.

  6. Boost Exam Confidence -

    Build assurance and reduce test anxiety by familiarizing yourself with the California real estate exam format.

Cheat Sheet

  1. Agency and Fiduciary Duties -

    When studying for the california real estate practice test, remember the six key fiduciary duties - Obedience, Loyalty, Disclosure, Confidentiality, Accounting, and Reasonable Care - often recalled with the mnemonic "OLD CAR." These duties define the agent - client relationship and ensure trust and professionalism in every transaction.

  2. Forms of Property Ownership -

    Review the differences between tenancy in common, joint tenancy (remember PITT: Possession, Interest, Time, Title), and community property with right of survivorship. Understanding how title passes on death and how interests can be severed is crucial for success on any california real estate practice exam question.

  3. Real Estate Math: Prorations -

    Master the proration formula: (Days owned ÷ Total days in period) × Annual amount = Buyer's or Seller's share. For example, if annual taxes are $3,650 and the buyer owes 200 of 365 days, they owe (200/365)×$3,650 ≈ $2,000. This straightforward approach shines in every california real estate exam practice test.

  4. Essential Elements of a Valid Contract -

    A valid real estate contract requires Offer and Acceptance, Consideration, Legal Capacity, and Lawful Purpose. Use the acronym COLIC (Consideration, Offer/acceptance, Legal purpose, In writing if required, Capacity) to recall each element quickly during exam scenarios.

  5. Fair Housing and Anti-Discrimination Laws -

    Learn federal Fair Housing Act protected classes plus California's additional protected categories (e.g., marital status, sexual orientation) under FEHA. Knowing both statutes inside out helps you confidently tackle any real estate california practice exam question on discrimination and compliance.

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