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California Broker Real Estate Exam Questions and Answers | Latest Version | 2025/2026 | Correct & Verified
Who issues real estate broker licenses in California?✔✔The California Department of Real Estate (DRE)
What is the main purpose of the Real Estate Law in California?✔✔To protect the public in real estate transactions
What is the minimum age requirement to obtain a California broker license?✔✔18 years old
How long must a broker keep transaction records after closing in California?✔✔Three years
What is required for a broker to operate under a fictitious business name?✔✔It must be registered with the DRE and the county
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When must a Transfer Disclosure Statement be provided to a buyer in California?✔✔As soon as practicable before the transfer of title
Who is responsible for supervising real estate salespersons?✔✔Their employing broker
What is the maximum security deposit a landlord can collect for an unfurnished residential unit in California?✔✔Two months’ rent
In California, what is the legal status of a commission agreement between a broker and an unlicensed person?✔✔It is void and unenforceable
How does a broker establish agency with a client in California?✔✔Through a written or oral agreement, followed by conduct
What is the purpose of a natural hazard disclosure statement? 2 / 4
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✔✔To inform the buyer of certain known environmental hazards
What is the penalty for practicing real estate in California without a license?✔✔It is a criminal offense punishable by fines and/or imprisonment
What type of listing agreement provides the most protection for the broker?✔✔Exclusive right to sell
What is the minimum number of years of full-time salesperson experience required to qualify for a broker’s license?✔✔Two years
In California, dual agency is legal only if:
✔✔Both the buyer and the seller provide informed written consent
What is the legal effect of a real estate contract signed by a minor in California?✔✔The contract is voidable by the minor
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What is the first step a broker must take before placing a "For Sale" sign on a property?✔✔Obtain the owner's permission
Who holds the trust funds in a real estate transaction?✔✔The broker or an escrow holder
What is the purpose of the Subdivided Lands Law?✔✔To protect buyers from fraud and misrepresentation in new developments
What type of deed provides the least protection to the grantee?✔✔Quitclaim deed
How often must a California real estate broker renew their license?✔✔Every four years
What is required in order to renew a broker license in California?✔✔Completion of continuing education requirements and payment of renewal fees
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