Taking The State Exam

TIME
Salesperson: 3 hours; 150 multiple-choice questions.
Broker: 4 hours; 200 multiple-choice questions.
Sessions begin promptly as scheduled. Please arrive 30 minutes early.

FORMAT
Examinations conducted in Fresno, La Palma, Oakland, Sacramento and San Diego are currently offered in an electronic format.  Exam format in any location may be subject to change.

METHOD
The examinations are given in a multiple-choice format. Answers are selected from four choices (see description of salesperson or broker examination content below).

ACCEPTABLE FORMS OF IDENTIFICATION

To be admitted into an examination, you must show a valid form of photo identification issued within the past 5 years. Only the following forms of photo identification will be accepted:

  • Current state-issued driver’s license or DMV identification card
  • U.S. Passport or Passport issued by a foreign government
  • U.S. Military identification card
  • You will not be admitted into the examination without a valid form of photo identification as listed above.

EXAMINATION CONTROL INFORMATION

For security reasons, the following items are NOT permitted in the examination room:

cell phones wallets pens tie tacs
purses calculators gum hats or caps
recording devices drink study materials keys
smart glasses backpacks suitcases
cameras briefcases watches
tablets PDAs weapons
laptops food lapel pins

*other items deemed inappropriate by proctors

Cell phone use and/or mere possession of a cell phone during an exam is strictly prohibited, including while out on break. All cell phones must be powered off and placed in an individual locker provided for your use. When individual lockers are unavailable, a Personal Belongings storage table will be set up for disallowed items. Failure to comply with examination administration rules will lead to your disqualification.

You cannot inspect your examination or see which questions you missed after the examination session has ended (Section 1798.40(e) of the California Civil Code).

The Department of Real Estate and its employees will not be liable or responsible for the loss or damage of any personal belongings that are brought to a real estate examination. If personal belongings are brought to the examination, they are to be placed in a storage area apart from the owner, as directed by proctor staff.

Be advised that DRE will not be responsible for lost or stolen items.

State Examination Contents

Area 1 – Property Ownership and Land Use Controls and Regulations (Approximately 15% of exam)

  • Classes of property
  • Property characteristics
  • Encumbrances
  • Types of ownership
  • Descriptions of property
  • Government rights in land
  • Public controls
  • Environmental hazards and regulations
  • Private controls
  • Water rights
  • Special categories of land

Area 2 – Laws of Agency and Fiduciary Duties (Approximately 17% of exam)

  • Law, definition and nature of agency relationships, types of agencies, and agents
  • Creation of agency and agency agreements
  • Responsibilities of agent to seller/buyer as principal
  • Disclosure of agency
  • Disclosure of acting as principal or other interest
  • Termination of agency
  • Commission and fees

Area 3 – Valuation and Financial Analysis (Approximately 14% of exam)

  • Value
  • Methods of estimating value

Area 4 – Financing
Approximately 9% of exam

  • General concepts
  • Types of loans
  • Sources of financing
  • How to deal with lenders
  • Government programs
  • Mortgages/deeds of trust/notes
  • Financing/credit laws
  • Loan brokerage

Area 5 – Transfer of Property
Approximately 8% of exam

  • Title insurance
  • Deeds
  • Escrow
  • Reports
  • Tax aspects
  • Special processes

Area 6 – Practice of Real Estate and Mandated Disclosures (Approximately 25% of exam)

  • Trust account management
  • Fair housing laws
  • Truth in advertising
  • Record keeping requirements
  • Agent supervision
  • Permitted activities of unlicensed sales assistants
  • DRE jurisdiction and disciplinary actions
  • Licensing, continuing education requirements and procedures
  • California Real Estate Recovery Fund
  • General ethics
  • Technology
  • Property management/landlord-tenant rights
  • Commercial/industrial/income properties
  • Specialty areas
  • Transfer disclosure statement
  • Natural hazard disclosure statements
  • Material facts affecting property value
  • Need for inspection and obtaining/verifying information

Area 7 – Contracts (Approximately 12% of exam)

  • General
  • Listing agreements
  • Buyer broker agreements
  • Offers/purchase contracts
  • Counteroffers/multiple counteroffers
  • Leases
  • Agreements
  • Promissory notes/securities

NOTIFICATION OF EXAMINATION RESULTS

If you took a pencil and paper examination, examination results and/or related correspondence will be mailed to you, normally within five business days after your examination. You can also check your examination results through the eLicensing online system. Please wait at least five business days after you have completed your examination before calling.

If you took an electronic examination, your results were provided to you upon completion of the exam. Additional correspondence may be mailed to you, normally within five business days after your examination.

To pass the examination, you must correctly answer at least:

  • 70% of the questions (Salespersons), or
  • 75% of the questions (Brokers)

Since the examination is qualifying in nature, examinees who pass are not informed of their final score.

You will be notified of the actual score, and the percentage of questions answered correctly in each of the subject areas, only when unsuccessful. HOWEVER, the overall score cannot be obtained by averaging the percentages.