Is the California Real Estate Exam Hard? Everything You Need to Know About the Exam

California Real Estate Exam

If you’re considering a career as a real estate agent in California, you’re likely wondering just how challenging the licensing exam will be. The exam is genuinely difficult and demands considerable study time and dedication to pass. Here, we’ll cover everything you need to know about the California real estate exam, including its difficulty and the best preparation methods.

How Hard is the California Real Estate Exam?

While the real estate exam difficulty differs across states, California’s version is widely recognized as among the toughest in the nation. Recent data shows the pass rate for California’s real estate exam has hovered around 45%, reflecting just how competitive and challenging this test truly is. But don’t let that scare you off. The exam is tough for a good reason – it makes sure only people who really know their stuff get their license.

What is the Hardest Part of the Exam?

Although each candidate brings different strengths and weaknesses to the table, the Practice of Real Estate and Disclosures section is widely considered the toughest part of the exam for most people. This section accounts for 25% of the total exam and includes 37-38 questions that you’ll need to answer. Spending extra time studying this section will help you get comfortable with fair housing laws and advertising rules. Scoring well in this section can put you in an excellent position going forward in the exam.

What surprises many test-takers is how much the California exam emphasizes state-specific laws and regulations that you won’t encounter in other states. For example, California has unique disclosure requirements, specific forms you must know, and particular rules about agency relationships that you won’t find elsewhere. This means generic national study materials often fall short – you need California-focused prep materials that cover things like the Transfer Disclosure Statement, Natural Hazard Disclosure Statement, and California’s specific fair housing laws. Understanding these state requirements isn’t just important for passing the exam – they’re rules you’ll use every day as a practicing agent, and you’ll need to know how to apply them in real-world situations.

Another aspect that catches many candidates off guard is the exam’s emphasis on real-world scenarios rather than simple memorization. You won’t just see questions asking for definitions or dates – instead, you’ll face questions that describe actual situations you might encounter as an agent and ask you to apply your knowledge. For example, a question might present a scenario involving multiple offer situations, agency disclosures, and timeline requirements all at once. You’ll need to understand how different concepts interact with each other. This is why simply memorizing facts isn’t enough; you need to understand how to apply California real estate principles to realistic situations. As you study, concentrate on grasping the reasoning behind each rule and regulation, not just memorizing the facts. Consider how you’d manage different client scenarios, which forms would be required, and what your legal responsibilities would be in various situations.

How Many Questions are on the Exam?

California’s real estate salesperson exam contains 150 multiple-choice questions, and you’ll have 3 hours to complete the test. The questions are divided into seven sections, each covering different topics you’ll learn about during your real estate education and online practice. The California broker exam has 200 questions and you are allowed 4 hours to complete.

Here’s how the questions are split up on the exam:

  1. The Practice of Real Estate and Disclosures – 25% of the exam (37-38 questions)
  2. Laws of Agency and Fiduciary Duty – 17% of the exam (25-26 questions)
  3. Property Ownership and Land Use Controls and Regulations – 15% of the exam (22-23 questions)
  4. Property Valuation and Financial Analysis – 14% of the exam (21 questions)
  5. Contracts – 12% of the exam (18 questions)
  6. Financing – 9% of the exam (13-14 questions)
  7. Transfer of Property – 8% of the exam (12 questions)

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How to Prepare for the California Real Estate Exam

Preparing for the California real estate exam requires hard work and dedication, but there are many resources available to help you succeed. Here are some of the best ways to prepare for the exam:

  1. Work Through Practice Questions: Our online California Exam Prep platform provides access to more than 1,000 practice questions, with sorting options by subject category so you can customize your study sessions. It’s graded automatically, providing explained answers with links to an extensive real estate glossary.
  2. Repeat the Online Tests: Taking an online test once isn’t enough. Take the tests several times to get a good idea of what you’ll be asked and how the questions might be worded. This will help you prepare for the actual exam.
  3. Save Questions You Don’t Know for Later: If you come across a question you’re struggling with, don’t guess and forget about it. Leave it for the moment and come back to it once you get through the questions that you’re more confident about. You may find that the answers to these questions appear in later questions.
  4. Remember Vocabulary: While math is important, it’s also important to remember the vocabulary used in the real estate profession. This includes local state laws, types of agencies, discrimination laws, and details of the relationship between the broker and agent.
  5. Attend a Crash Course: Procrastination is something that affects all of us. Enrolling in a real estate crash course the weekend before your test will keep the content fresh in your mind. Studying with a group of people will help push and motivate you to keep grinding through the last days before taking the state exam.
  6. Develop a Study Plan: It’s important to have a consistent study plan leading up to the exam. Set aside dedicated study time each day and stick to a schedule. This will help you stay on track and ensure you cover all the necessary material.
  7. Get Support: It’s important to have support during the exam preparation process. Whether it’s from friends, family, or a study group, having a support system can help keep you motivated and accountable. Joining a study group can also provide the opportunity to learn from others and discuss difficult topics.
  8. Take Care of Yourself: Don’t neglect self-care during the exam preparation process. Make sure to get enough sleep, eat well, and exercise regularly. Taking care of yourself can help you stay focused and alert during the exam.

The Bottom Line

The California real estate exam presents real challenges, but thousands of Chamberlin Real Estate School students have passed it and gone on to build successful careers in real estate. The exam is designed to ensure that only those who are fully prepared and knowledgeable about real estate can become licensed professionals. To prepare for the exam, repeat online tests, save questions you don’t know for later, remember vocabulary, utilize study guides and online courses, develop a study plan, get support, and take care of yourself. By following these tips and putting in the necessary hard work and dedication, you can pass the California real estate exam and become a licensed professional in the field. Your journey starts here!

How to Get a California Real Estate License

If you’re considering a career in real estate in California, you’ll need to obtain a California real estate license. This license allows you to legally sell and broker real estate transactions in the state of California. Here are the quick steps:

  1. Meet the eligibility requirements
  2. Complete the required pre-licensing education
  3. Apply for and pass the California Salesperson examination
  4. Complete the California real estate license application

We’ll guide you through the steps to obtain a California real estate license, covering the necessary actions, activities that require a license, potential challenges, and available resources to assist you.

Step 1: Meet the Eligibility Requirements

Before you can apply for a California real estate license, you need to meet several eligibility requirements. These requirements include:

  • Be at least 18 years old
  • Be a resident of California or follow the Out-of-State application process.
  • Complete three college-level courses in real estate, consisting of:
    • Real Estate Principles
    • Real Estate Practice
    • One elective course

Alternatively, you may have a degree in real estate from an accredited institution. Members of the California State Bar are statutorily exempt from the pre-license requirement.

Step 2: Complete the Required Pre-Licensing Education

To qualify for the California real estate license exam, you must complete 135 hours of pre-licensing education. This education is divided into three courses: Real Estate Principles (45 hours), Real Estate Practice (45 hours), and one additional course from a list of approved courses (45 hours). You can complete these courses entirely online through an approved provider, like Chamberlin Real Estate School. The DRE website has a portal to verify approved educators. 

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Step 3: Pass the California Real Estate Exam

Once you have completed your pre-licensing education, you must pass the California Real Estate Salesperson Exam. The exam will test your real estate knowledge and will require some focused study time. Familiarizing yourself with vocabulary terms and grasping key concepts will improve your chances of answering most questions correctly.  The examination covers general real estate principles and practices, with California-specific questions about state laws and regulations. You must pass the test with a score of at least 70%. Utilizing real estate exam prep quizzes and attending a real estate crash course will help your confidence before your test date.

Step 4: Apply for Your California Real Estate Salesperson License

Once you pass the exam, you can apply for your California Real Estate Salesperson License. Submit an application to the California Department of Real Estate (DRE) and pay the application fee. You’ll need to provide details about your pre-license education, exam results, and criminal history. Applying online through the DRE eLicensing portal is the simplest method.

Step 5: Find a Brokerage to Work For

To practice real estate legally in California, you must work under a licensed real estate broker. You can join a brokerage as an independent contractor or employee. Research various brokerages to find one that aligns with your career goals and values. Some brokerages offer extensive guidance and leads but may take a higher commission percentage compared to more hands-off brokerages.

What Activities Require a Real Estate License in California?

A real estate license is necessary for several activities related to real estate transactions in California, including

  1. Selling or leasing real estate properties: Anyone involved in selling or leasing properties in California must hold a valid real estate license.
  1. Listing properties for sale or lease: Listing properties for sale or lease on behalf of the owner or agent requires a real estate license, such as for an account manager at a property management company.
  1. Negotiating real estate transactions: Negotiating or offering to negotiate the purchase, sale, or lease of properties requires a real estate license.
  1. Providing advice or opinions on real estate transactions: Providing advice, opinions, or recommendations on real estate transactions for compensation requires a real estate license.
  1. Property management services: Managing properties, including collecting rent, arranging repairs and maintenance, and supervising tenants, requires a real estate license.

Potential Roadblocks to Getting Your License

While obtaining a real estate license in California can be straightforward, several obstacles may arise, including:

  • Failing the California Real Estate Salesperson Exam: The state exam can be challenging, and if you don’t pass with at least 70%, you’ll need to retake it.
  • Criminal History: A criminal record may lead to the denial of your license application. It’s crucial to disclose any criminal history honestly on your application.
  • Lack of Pre-Licensing Education: Without completing the necessary pre-licensing education, you won’t qualify for the California Real Estate Salesperson Exam.
  • Finding a Brokerage: Not all brokerages are the same, and finding one that matches your career goals and values may take time. The good news is they will all be interested in hiring you once you have your license!

Resources to Help You Get & Keep Your License

You are not in this alone! Switching careers or taking classes on the side while working may seem like a lot. The key is to take your time and complete each step as it comes. There are several resources available to help you along the way which include:

  • California Department of Real Estate (DRE): The DRE is the regulatory agency that oversees the real estate industry in California. Their website provides information about the licensing process, educational requirements, and exam details.
  • Approved Education Providers, like Chamberlin Real Estate School: Our experienced instructors are available to answer any questions you may have about getting a license, and our online courses are designed to prepare you to take and pass the state exam on the first try. Once you’ve obtained your license, we also offer required real estate license continuing education to help you stay up-to-date with the latest industry trends and regulations.
  • Exam Prep Courses: Our 1-Day California Real Estate Exam Crash Course is designed to help you ace your state exam. Led by an expert licensed instructor, this webinar includes key terminology, exam-taking hints, memorization aids, and a hot questions handout to ensure you’re fully prepared for the big day.
  • Professional Associations: Joining a professional association, such as the California Association of Realtors or the National Association of Realtors, can provide you with valuable networking opportunities and resources.

Where To Find Out More About Real Estate Licenses

The California Department of Real Estate (DRE) is the state agency responsible for regulating and enforcing real estate laws and regulations in California. The DRE oversees the licensing of real estate professionals, including salespersons, brokers, and appraisers. They also investigate complaints and take disciplinary action against licensees who violate real estate laws or engage in unethical conduct. In addition to their regulatory role, the DRE provides consumer resources, such as a database of licensees, publications on buying and selling real estate, and information on filing a complaint. The DRE is committed to promoting a fair and competitive real estate market in California and protecting consumers from fraudulent and deceptive practices.

Now You Are Ready!

Obtaining a California real estate license involves meeting the requirements, completing your education, passing the exam, and submitting a license application. While the process may seem confusing at first, remember that Chamberlin is always available by phone to help with any questions. Take action, remain persistent, and you can obtain your California real estate license and build a successful career in real estate!

Do You Need A Real Estate License To Flip Houses?

Do You Need A Real Estate License To Flip Houses

House flipping is a lucrative way to make money by purchasing properties needing repair, renovating, and selling them for a profit. However, the process is not without its complexities, and it’s common for people to wonder whether they need a real estate license to flip houses. While having a license to flip houses is not required, having one can be highly beneficial, as it provides a deeper understanding of the market, which can lead to more profitable deals.

What Is House Flipping?

House flipping involves buying a property that needs repairs or renovations, increasing its value, and selling it for a profit. This process starts with purchasing the property at a lower price, investing in repairs, decorations, modernizing, and remodeling, and then selling it for a profit. The aim is to cover the costs of the property and renovations while making a profit. For a more detailed guide on house flipping, numerous online resources are available.

Advantages Of Having A Real Estate License

Here are some of the benefits of having a real estate license when flipping houses:

  1. More Knowledgeable About Prices: Real estate training programs provide extensive information on property management, home appraisals, ownership, government regulations, contracts, financing, and the general process. This knowledge is invaluable when determining the right price for a property.
  1. Increased Familiarity With The Market: Familiarity with the market helps determine the best times to buy or sell and can aid in building wealth through real estate investments. Understanding the best locations, ideal property sizes, market trends, and buyer preferences leads to more informed purchasing decisions.
  1. May Be Able To Reduce Costs: A real estate license can help you avoid paying commissions on one side of a transaction or even receive a commission personally, reducing your costs. This can result in more significant profits when selling the property.
  1. More Access To Buyers: Generally, only licensed real estate agents have access to certain sites with property listings. Having a real estate license can give you access to these sites, allowing for more opportunities and the potential for more money.
  1. Networking Opportunities: Real estate agents have a wide range of contacts, including other agents, brokers, investors, contractors, tradespeople, inspectors, lawyers, and people of influence. A real estate license can give you access to this network, which can be advantageous.
  1. Flexible Working: Real estate agents typically need to adjust their schedules according to their clients’ availability. Nevertheless, as a general guideline, you have the freedom to set your own working hours. This means that pursuing a career in real estate can offer you greater flexibility in your work schedule, perhaps even for your own real estate investment ventures!
  2. Potentially Bigger Profits: The National Association of Realtors suggests that those with a real estate license earn larger profits on properties compared to those who do not have a license. Therefore, having a real estate license can help you learn more about the market and the industry and earn a more considerable profit margin.

Is Flipping Houses Hard?

Flipping houses is not necessarily hard, but it requires patience, time, and effort. It is important to note that you will not always profit from flipping houses. Understanding the potential for losses and how to deal with such situations is critical. This is when house flipping gets “hard.” Some people may find themselves out of their depth if they do not know how to handle these situations.

Where To Get A Real Estate License?

If you’re looking to become a licensed real estate agent, Chamberlin Real Estate School might be the perfect choice. Our courses are available online, making it convenient for anyone with a busy schedule or who lives far from in-person classes. You can study at your own pace, but you have the advantage of a licensed instructor, available to answer any questions you may have. Additionally, Chamberlin Real Estate School has been helping students for 70 years, which means they we have a wealth of experience and knowledge to draw on. We’re also based in Campbell, CA, which means you’ll receive support by people right here in California, who genuinely care about your success.

The Bottom Line

While a real estate license isn’t required to flip houses, it provides a significant advantage. A real estate license offers extensive market knowledge, reduces costs, and potentially increases profits. It also provides networking opportunities for valuable real estate contacts. However, remember that flipping houses carries risks, including potential losses. Therefore, understanding the market, industry, and risks involved is crucial before starting a house-flipping venture.

Obtaining a real estate license is an excellent place to start if you’re interested in pursuing a career in house flipping or real estate. A real estate license will give you the necessary knowledge and tools to succeed in the industry and open up opportunities for professional development and career advancement. In addition, with a real estate license, you can be confident that you’re making informed decisions and are equipped to handle any challenges that may arise along the way.

Whether you pursue a real estate license or not, success in flipping houses requires patience, diligence, and knowledge. By researching, being strategic in your investments, and leveraging the right resources, you can successfully flip houses and achieve your financial goals.

What Are Appurtenances In Real Estate?

What Are Appurtenances In Real Estate

When you start learning about real estate, you’ll discover many specialized terms that are unique to this industry. One term that you’ll encounter frequently is “appurtenances.” Though this concept may appear complex at first, it’s actually straightforward once explained. Additionally, it plays a significant role in property ownership and accurate marketing. This blog post will discuss appurtenances, their definition, and how they relate to the broader real estate profession.

What is the Definition of an Appurtenance?

Appurtenances are additions to a property that have become permanent, such as improvements or rights integrated into the property. These additions are included in the property transaction and are often considered a bonus when buying a house. They are part of the larger entity and cannot be temporary items or personal equipment.

According to the exact definition of appurtenance, they are “property rights or items that are permanent and are passed along with the sale of the property.” By categorizing parts of the property as appurtenances, real estate transactions become much easier since these additions do not have to be separated from the property itself, which can lead to additional paperwork and expenses.

History of Appurtenances in Real Estate

Appurtenances became a defined term in the profession of real estate after the Cohen v. Whitcomb case in 1919. A heated debate occurred about whether a hot water heater, which the tenant installed, would still be owned by them or if it was now part of the property at large. Ultimately, the court decided that the hot water heater, classified as a “repair” and “improvement” to the property, now became a permanent part of the property itself and was technically owned by the landlord.

Can Appurtenances Be Removed?

To classify something as an appurtenance, it must be fixed to the building and not easily removable or replaceable. If removing it would cause significant damage to the property, it is considered an appurtenance. The permanence of the addition is crucial, which is why the term can sometimes be ambiguous.

Take fences as an example – they qualify as appurtenances since they’re anchored into the ground, and their removal would disturb or harm the landscape. In contrast, a baby gate placed by the stairs that can be easily moved is not an appurtenance. Similarly, an antenna attached to a chimney is an appurtenance, as removing it would cause damage.

Examples Of Appurtenances

Common examples of additions and repairs to a home that would be classified as appurtenances include Examples Of Appurtenances

  • Driveways
  • Fences
  • In-ground Swimming Pools
  • Garages
  • Barns
  • Sheds
  • Cabinets
  • Septic Tanks
  • Ceiling Fans
  • Furnaces


An easy way to determine if something is or is not an appurtenance is to recognize whether it can be removed from where it has been placed and if the current owner is able to take this attachment with them when they move to another property. Anything attached via a plug or not built with the intention of being permanent is not considered an appurtenance, such as an above-ground pool designed to be temporary and can be moved without causing damage to the property.

For California real estate agents, understanding appurtenances becomes particularly important when working with different property types common in the state. Mediterranean-style homes with built-in outdoor kitchens, properties with solar panel installations, and homes with earthquake retrofitting improvements all present unique appurtenance considerations. When listing these properties, agents must clearly identify which features transfer with the sale to avoid disputes during closing. Additionally, California’s Transfer Disclosure Statement requires sellers to disclose the condition of various appurtenances, making accurate identification a legal necessity. New agents should pay special attention to items like whole-house generators, built-in wine cellars, and integrated smart home systems, as these expensive additions significantly impact property value and buyer expectations.

Beyond physical improvements to property, appurtenances can also include legal rights.

What Is An Appurtenant Easement?

An appurtenant easement refers to someone lending a part of their attached real property to another person for a specific purpose. It is an agreement made between two people to allow an outsider to traverse across parts of their property to get to another destination.

Example: A property owner with a driveway may allow someone else to walk or drive through it to reach another facility. This can sometimes be done without any exchange of money, or the landowner may require a one-time fee for granting access.

Appurtenant easements can include the right to use shared driveways or common areas like parks or swimming pools in a housing community. These easements are typically recorded in the property deed and can impact the property’s value.

Why Are Appurtenances Important in Real Estate?

Understanding appurtenances is important in real estate deals because they directly impact property value, legal ownership rights, and the transfer process. When buying or selling a property, it’s essential to consider all the appurtenances attached to it and understand its classification. Failure to recognize an appurtenance can result in legal disputes or additional expenses.

Moreover, appurtenances can also affect the use and enjoyment of the property. For example, suppose an appurtenant easement allows someone to cross through the property at specific times. In that case, it can limit the owner’s privacy and restrict the use of the property.

Summary

Appurtenances are permanent additions to a property, such as improvements or rights that become part of the larger property entity. They cannot be temporary items or personal equipment. Appurtenances can impact the property’s value, ownership, and transfer, making it essential to consider them during real estate transactions. Knowing how to identify and classify appurtenances helps real estate professionals, buyers, and sellers avoid complications and complete transactions smoothly.

Learn More About Appurtenances

Appurtenances are just one of hundreds of terms which you’ll master as you study for your real estate license. The pre-license course from Chamberlin Real Estate School presents terms in a way that makes them easy to understand and remember. Any time you have questions, whether about terminology or fundamental concepts in real estate, you’ll have a live instructor available to help you as you prepare to become a Real Estate Agent. Start your journey today!