CA-Real-Estate Exam Information and Outline
California Real Estate Exam (DRE) - Salesperson
CA-Real-Estate Exam Syllabus & Study Guide
Before you start practicing with our exam simulator, it is essential to understand the official CA-Real-Estate exam objectives. This course outline serves as your roadmap, breaking down exactly which technical domains and skills will be tested. By reviewing the syllabus, you can identify your strengths and focus your study time on the areas where you need the most improvement.
The information below reflects the latest 2026 course contents as defined by Real-Estate. We provide this detailed breakdown to help you align your preparation with the actual exam format, ensuring there are no surprises on test day. Use this outline as a checklist to track your progress as you move through our practice question banks.
Below are complete topics detail with latest syllabus and course outline, that will help you good knowledge about exam objectives and topics that you have to prepare. These contents are covered in questions and answers pool of exam.
Exam Code: CA Real Estate
Exam Name: CA-Real-Estate California Real Estate Exam (DRE) - Salesperson
Number of Questions: 150 multiple-choice
Time Allotted: 3 hours
Passing Marks: 0% (at least 105 correct)
Property Ownership and Land Use Controls and Regulations 15%
- Classes of Property
- Real versus personal property
- Mobile homes/manufactured homes
- Land, improvements, fixtures, and appurtenances
- Property Characteristics
- Physical: land, subsurface rights, water rights, air rights
- Economic: location, amenities, scarcity
- Encumbrances and Limitations on Ownership
- Liens (voluntary/involuntary, general/specific)
- Easements (appurtenant, in gross, by necessity, prescription)
- Encroachments
- Restrictions (public and private: CC&Rs, zoning, building codes)
- Land Use Controls (Public and Private)
- Zoning and general/master plans
- Subdivision Map Act
- Environmental laws (CEQA, endangered species, coastal commission)
- Private controls: deeds, conditions, covenants, restrictions (CC&Rs)
- Homeowners associations (HOAs) and common interest developments (condos, PUDs, stock cooperatives, community apartment projects)
Laws of Agency and Fiduciary Duties 17%
- Creation and Termination of Agency Relationships
- Express vs. implied agency
- Ostensible agency
- Ratification, estoppel
- Termination: completion, expiration, mutual consent, death, destruction
- Types of Agency Relationships
- Universal, general, special agent
- Single agency, dual agency (with disclosure and consent), buyer’s agent
- Fiduciary Duties (OLD CAR + more)
- Obedience, Loyalty, Disclosure, Confidentiality, Accounting, Reasonable Care/Diligence
- Duty to disclose material facts
- Puffing vs. misrepresentation
- Disclosures Required in Agency Relationships
- Agency Disclosure Law (Civil Code § 2079.13–2079.24)
- Confirmation of Agency form (AD form)
- Disclosure of dual representation
- No secret profits
Property Valuation and Financial Analysis 14%
- Value Influences and Characteristics
- Principles of value (anticipation, contribution, substitution, conformity, highest and best use)
- Market forces (supply/demand, externalities)
- Appraisal Process and Methods
- Sales comparison (market) approach
- Cost approach (replacement vs. reproduction cost, depreciation)
- Income (capitalization) approach: GRM, GIM, cap rate, IRR
- Competitive Market Analysis (CMA)
- Adjustments, active/pending/sold comparables
- Valuation of Special Properties
- Condominiums, PUDs, leased fee/leasehold
Financing 9%
- General Concepts
- Promissory notes, deeds of trust, mortgages
- Hypothecation, acceleration clause, alienation clause
- Sources of Financing
- Institutional (banks, savings & loans) vs. non-institutional
- Primary vs. secondary mortgage market (Fannie Mae, Freddie Mac, Ginnie Mae)
- Government Programs
- FHA, VA, CalHFA, USDA
- Types of Loans and Terms
- Fixed, adjustable (ARM), hybrid, interest-only, reverse mortgages
- Impound/escrow accounts
- Truth in Lending (Regulation Z), RESPA, ECOA, CFPB rules
- Usury, prepayment penalties, points
5. Transfer of Property (approximately 8% – ~12 questions)
- Title Insurance and Escrow
- CLTA vs. ALTA policies
- Standard vs. extended coverage
- Escrow process, escrow holder duties
- Deeds and Types of Ownership
- Grant, quitclaim, warranty, trust deeds
- Types of vesting: community property, community property with right of survivorship, joint tenancy, tenancy in common
- Involuntary Transfer
- Foreclosure (judicial/non-judicial), trustee’s sale, redemption
- Adverse possession, escheat, eminent domain (condemnation)
- Recordation and Priority
- Chain of title, constructive notice, actual notice
Real Estate Practice 25%
- Trust Account Management
- Commingling, conversion, record-keeping requirements
- Licensing Requirements
- Who needs a license, exemptions
- Broker vs. salesperson responsibilities
- Continuing education (45 hours every 4 years)
- Listing Agreements and Marketing
- Types: exclusive right to sell, exclusive agency, open, net
- Required disclosures (Megan’s Law, TDS, SPQ, smoke detector, water heater bracing, etc.)
- Purchase Agreements (California RPA)
- Offers, counteroffers, contingencies (appraisal, loan, inspection)
- Time is of the essence, liquidated damages, mediation/arbitration clauses
- Advertising and Fair Housing
- Blind ads, truthful advertising
- Federal Fair Housing Act, California Fair Employment & Housing Act (FEHA), Unruh Civil Rights Act, Holden Act
- Professional Conduct and Ethics
- DRE Code of Ethics, NAR (if applicable)
Contracts 12%
- General Contract Law
- Elements: offer, acceptance, consideration, legal purpose, competent parties
- Statute of Frauds, parol evidence rule
- Types of Contracts
- Bilateral vs. unilateral, express vs. implied
- Valid, void, voidable, unenforceable
- Performance, Breach, and Remedies
- Specific performance, liquidated damages, rescission
- Novation, assignment, delegation