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CALIFORNIA REAL ESTATE
BROKER EXAM QUESTIONS AND
CORRECT ANSWER WITH
EXPLANATION LATEST 2026
Section 1: California Real Estate Law (Questions 1–30)
1. The California Bureau of Real Estate (CalBRE/DRE) is part of which state department?
A. Department of Consumer Affairs
B. Department of Business Oversight
C. Department of Housing and Community Development
D. Department of Justice
Answer: A
Rationale: The California Department of Real Estate (DRE) is now called the Bureau of Real
Estate (CalBRE) and is under the Department of Consumer Affairs.
2. How many years of licensed real estate salesperson experience are required to qualify for a
broker license in California?
A. 1 year
B. 2 years
C. 3 years
D. 5 years
Answer: B
Rationale: A salesperson must have at least two years of full-time licensed experience within the
five years preceding the broker application.
3. How many college-level courses are required for the California broker exam?
A. 5 courses
B. 6 courses
C. 8 courses
D. 10 courses
Answer: C
Rationale: Eight college-level real estate courses (or equivalent) are required for the broker
license.
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4. Which of the following is NOT a required course for the California broker license?
A. Real Estate Practice
B. Legal Aspects of Real Estate
C. Real Estate Finance
D. Property Management
Answer: D
Rationale: Property management is not a required course; the required courses include Real
Estate Practice, Legal Aspects, Real Estate Finance, Economics/Accounting, Appraisal, Escrow,
and two additional electives.
5. The California Real Estate Commissioner is appointed by the:
A. Governor
B. State Legislature
C. Secretary of State
D. Attorney General
Answer: A
Rationale: The Real Estate Commissioner is appointed by the Governor of California.
6. How often must a California real estate broker renew their license?
A. Every year
B. Every 2 years
C. Every 4 years
D. Every 5 years
Answer: C
Rationale: Real estate licenses in California are renewed every four years.
7. How many continuing education (CE) hours are required for broker license renewal?
A. 15 hours
B. 30 hours
C. 45 hours
D. 60 hours
Answer: C
Rationale: Brokers must complete 45 hours of continuing education per renewal period,
including ethics, agency, fair housing, and trust fund handling.
8. Which of the following is a ground for disciplinary action against a broker?
A. Acting as a principal in a transaction
B. Commingling trust funds with personal funds
C. Advertising a property at a price different from the listing
D. Both B and C
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Answer: D
Rationale: Commingling funds and misrepresentation in advertising are both disciplinary
violations.
9. The Real Estate Recovery Fund is used to:
A. Pay bonuses to DRE employees
B. Compensate victims of fraud or embezzlement by licensed real estate agents
C. Fund political campaigns
D. Pay broker fines
Answer: B
Rationale: The Recovery Fund provides up to $50,000 per transaction to victims of licensee
fraud.
10. A broker who terminates employment of a salesperson must notify the DRE within:
A. 5 days
B. 10 days
C. 15 days
D. 30 days
Answer: A
Rationale: A broker must notify the DRE within 5 days of termination of a salesperson.
11. A salesperson who changes brokers must have their license transferred within:
A. 5 days
B. 10 days
C. 15 days
D. 30 days
Answer: A
Rationale: License transfer must occur within 5 days of the change.
12. Which of the following requires a real estate license in California?
A. Selling your own residential property
B. An attorney negotiating a settlement involving real property
C. A property manager renting units for an owner
D. A trustee under a deed of trust selling property at foreclosure
Answer: C
Rationale: Property management for others requires a real estate license. Attorney exceptions
and foreclosure trustees have specific exemptions.
13. The "Statute of Frauds" requires that:
A. All real estate contracts be in writing
B. All real estate contracts be oral
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C. Only leases over 1 year must be in writing
D. Only listing agreements must be in writing
Answer: A
Rationale: The Statute of Frauds requires that real estate purchase agreements, leases over one
year, listings, and options be in writing.
14. A broker's trust account must be maintained in a:
A. Personal checking account
B. Interest-bearing account
C. Federally or state-insured financial institution
D. Broker's home safe
Answer: C
Rationale: Trust accounts must be held in insured financial institutions.
15. Commingling is defined as:
A. Depositing client funds into the broker's operating account
B. Keeping accurate records
C. Using client funds for business expenses
D. Both A and C
Answer: D
Rationale: Commingling is mixing client funds with personal or business funds.
16. A broker may pay a referral fee to an unlicensed person if:
A. The unlicensed person is a family member
B. The referral fee is less than $100
C. No fee may be paid to an unlicensed person for real estate referrals
D. The unlicensed person has a business license
Answer: C
Rationale: It is illegal to pay referral fees to unlicensed individuals for real estate transactions.
17. A broker must keep records of all trust fund transactions for at least:
A. 1 year
B. 3 years
C. 5 years
D. 10 years
Answer: B
Rationale: Trust fund records must be retained for at least three years.
CALIFORNIA REAL ESTATE
BROKER EXAM QUESTIONS AND
CORRECT ANSWER WITH
EXPLANATION LATEST 2026
Section 1: California Real Estate Law (Questions 1–30)
1. The California Bureau of Real Estate (CalBRE/DRE) is part of which state department?
A. Department of Consumer Affairs
B. Department of Business Oversight
C. Department of Housing and Community Development
D. Department of Justice
Answer: A
Rationale: The California Department of Real Estate (DRE) is now called the Bureau of Real
Estate (CalBRE) and is under the Department of Consumer Affairs.
2. How many years of licensed real estate salesperson experience are required to qualify for a
broker license in California?
A. 1 year
B. 2 years
C. 3 years
D. 5 years
Answer: B
Rationale: A salesperson must have at least two years of full-time licensed experience within the
five years preceding the broker application.
3. How many college-level courses are required for the California broker exam?
A. 5 courses
B. 6 courses
C. 8 courses
D. 10 courses
Answer: C
Rationale: Eight college-level real estate courses (or equivalent) are required for the broker
license.
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4. Which of the following is NOT a required course for the California broker license?
A. Real Estate Practice
B. Legal Aspects of Real Estate
C. Real Estate Finance
D. Property Management
Answer: D
Rationale: Property management is not a required course; the required courses include Real
Estate Practice, Legal Aspects, Real Estate Finance, Economics/Accounting, Appraisal, Escrow,
and two additional electives.
5. The California Real Estate Commissioner is appointed by the:
A. Governor
B. State Legislature
C. Secretary of State
D. Attorney General
Answer: A
Rationale: The Real Estate Commissioner is appointed by the Governor of California.
6. How often must a California real estate broker renew their license?
A. Every year
B. Every 2 years
C. Every 4 years
D. Every 5 years
Answer: C
Rationale: Real estate licenses in California are renewed every four years.
7. How many continuing education (CE) hours are required for broker license renewal?
A. 15 hours
B. 30 hours
C. 45 hours
D. 60 hours
Answer: C
Rationale: Brokers must complete 45 hours of continuing education per renewal period,
including ethics, agency, fair housing, and trust fund handling.
8. Which of the following is a ground for disciplinary action against a broker?
A. Acting as a principal in a transaction
B. Commingling trust funds with personal funds
C. Advertising a property at a price different from the listing
D. Both B and C
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Answer: D
Rationale: Commingling funds and misrepresentation in advertising are both disciplinary
violations.
9. The Real Estate Recovery Fund is used to:
A. Pay bonuses to DRE employees
B. Compensate victims of fraud or embezzlement by licensed real estate agents
C. Fund political campaigns
D. Pay broker fines
Answer: B
Rationale: The Recovery Fund provides up to $50,000 per transaction to victims of licensee
fraud.
10. A broker who terminates employment of a salesperson must notify the DRE within:
A. 5 days
B. 10 days
C. 15 days
D. 30 days
Answer: A
Rationale: A broker must notify the DRE within 5 days of termination of a salesperson.
11. A salesperson who changes brokers must have their license transferred within:
A. 5 days
B. 10 days
C. 15 days
D. 30 days
Answer: A
Rationale: License transfer must occur within 5 days of the change.
12. Which of the following requires a real estate license in California?
A. Selling your own residential property
B. An attorney negotiating a settlement involving real property
C. A property manager renting units for an owner
D. A trustee under a deed of trust selling property at foreclosure
Answer: C
Rationale: Property management for others requires a real estate license. Attorney exceptions
and foreclosure trustees have specific exemptions.
13. The "Statute of Frauds" requires that:
A. All real estate contracts be in writing
B. All real estate contracts be oral
, 4|Page
C. Only leases over 1 year must be in writing
D. Only listing agreements must be in writing
Answer: A
Rationale: The Statute of Frauds requires that real estate purchase agreements, leases over one
year, listings, and options be in writing.
14. A broker's trust account must be maintained in a:
A. Personal checking account
B. Interest-bearing account
C. Federally or state-insured financial institution
D. Broker's home safe
Answer: C
Rationale: Trust accounts must be held in insured financial institutions.
15. Commingling is defined as:
A. Depositing client funds into the broker's operating account
B. Keeping accurate records
C. Using client funds for business expenses
D. Both A and C
Answer: D
Rationale: Commingling is mixing client funds with personal or business funds.
16. A broker may pay a referral fee to an unlicensed person if:
A. The unlicensed person is a family member
B. The referral fee is less than $100
C. No fee may be paid to an unlicensed person for real estate referrals
D. The unlicensed person has a business license
Answer: C
Rationale: It is illegal to pay referral fees to unlicensed individuals for real estate transactions.
17. A broker must keep records of all trust fund transactions for at least:
A. 1 year
B. 3 years
C. 5 years
D. 10 years
Answer: B
Rationale: Trust fund records must be retained for at least three years.
