A commercial tenant bolts custom display shelving to the walls to run a retail store. Absent any agreement to the contrary, what is the usual character of that shelving?

A trade fixture the tenant may remove before the lease ends

A permanent fixture that automatically belongs to the landlord

Real property that must be conveyed with the building

An easement appurtenant to the leased space

A subdivision's recorded CC&Rs limit buildings to one story, while local zoning would permit two stories. Which limit controls a buyer's plans?

The more restrictive of the two, so one story

Zoning always overrides private restrictions

The buyer may choose whichever limit is more favorable

Neither applies until the buyer joins the HOA

In a deed of trust, what is the role of the trustee?

A neutral third party who holds bare legal title until the debt is repaid

The lender who advances the loan funds

The borrower who repays the note

A government official who records the lien

A licensee wants to represent both the buyer and the seller in the same transaction. Under general agency principles, when is this permitted?

Only with the informed written consent of both parties

Automatically, because the broker holds both listings

Only if the buyer and seller are related

Which deed gives the grantee the greatest protection by warranting title against all defects, including those that arose before the grantor owned the property?

Special (limited) warranty deed

Which of the following is a core reason a brokerage maintains a written office policy manual and reviews transaction files?

To supervise licensees and reduce the firm's risk of violations

To guarantee every agent earns the same commission

To eliminate the need for errors-and-omissions insurance

To set commission rates jointly with other firms

California real estate brokers are licensed and regulated under the Real Estate Law (Business and Professions Code, Division 4) by the:

California Department of Real Estate (DRE), headed by the Real Estate Commissioner

California Association of Realtors

California Bureau of Consumer Financial Protection

In a California residential sale of one to four units, the agent must provide the buyer and seller the statutory Disclosure Regarding Real Estate Agency Relationships (the 'AD' form). This disclosure explains:

Whether the agent represents the seller, the buyer, or both as a dual agent, and the duties owed

The property's exact market value

California Real Estate Broker Exam Practice Test

Frequently asked questions

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A full bank of original California Real Estate Broker Exam practice questions across the official content areas, weighted like the real exam, with explanations. Free, no signup.

What is the California Real Estate Broker Exam exam like?+

About 200 questions, 240 minutes, and you need 75% to pass. Practice by topic here, then take the full timed mock exam to gauge readiness.

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PrepPass practice is in English, 中文 and Español. The official exam is in English — switch the question language to English any time to rehearse the exact terminology you'll see on test day.

Sample practice questions

A few real questions from this free bank, with full explanations. Use the practice tool above for the whole set.

1. Property Ownership
A commercial tenant bolts custom display shelving to the walls to run a retail store. Absent any agreement to the contrary, what is the usual character of that shelving?
- a.A permanent fixture that automatically belongs to the landlord
- b.Real property that must be conveyed with the building
- c.A trade fixture the tenant may remove before the lease ends
- d.An easement appurtenant to the leased space
Answer: c
Explanation: Items a commercial tenant installs to conduct business are trade fixtures. Even though they are attached, the law lets the tenant remove them before the lease ends (repairing any damage), because the tenant's intent was to use them in the business, not to improve the landlord's property permanently. This is an exception to the general rule that attached items become part of the realty. It is not an easement, which is a right to use another's land, not an object.
2. Land Use Controls and Regulations
A subdivision's recorded CC&Rs limit buildings to one story, while local zoning would permit two stories. Which limit controls a buyer's plans?
- a.Zoning always overrides private restrictions
- b.The buyer may choose whichever limit is more favorable
- c.The more restrictive of the two, so one story
- d.Neither applies until the buyer joins the HOA
Answer: c
Explanation: When a public control (zoning) and a private control (deed restriction or CC&R) both apply, the more restrictive one governs. Here the CC&Rs are stricter, so the one-story limit controls even though zoning would allow two stories. Private restrictions run with the land and bind the buyer automatically upon purchase, regardless of HOA membership formalities. A broker must disclose known private restrictions that could defeat a buyer's intended use.
3. Financing
In a deed of trust, what is the role of the trustee?
- a.A neutral third party who holds bare legal title until the debt is repaid
- b.The lender who advances the loan funds
- c.The borrower who repays the note
- d.A government official who records the lien
Answer: a
Explanation: A deed of trust involves three parties: the trustor (borrower), the beneficiary (lender), and the trustee, a neutral third party who holds bare legal title as security. When the loan is paid, the trustee issues a reconveyance releasing the lien; on default, the trustee may conduct a nonjudicial foreclosure where the state allows. This differs from a mortgage, which has only two parties. Knowing the roles helps a broker explain closing documents accurately.
4. Contracts
A buyer breaches a signed purchase contract on a unique property, and the seller wants a court to force the buyer to complete the purchase. Which remedy is the seller seeking?
- a.Liquidated damages
- b.Rescission
- c.Novation
- d.Specific performance
Answer: d
Explanation: Specific performance is a court order compelling a party to carry out the contract as agreed. It is available in real estate because each parcel of land is considered unique, so money damages may not be an adequate substitute. Liquidated damages is a pre-agreed sum (often the earnest money) the injured party keeps instead. Rescission cancels the contract and returns the parties to their starting positions. Novation substitutes a new contract or party for the original.
5. General Principles of Agency
A licensee wants to represent both the buyer and the seller in the same transaction. Under general agency principles, when is this permitted?
- a.Never, under any circumstances
- b.Automatically, because the broker holds both listings
- c.Only with the informed written consent of both parties
- d.Only if the buyer and seller are related
Answer: c
Explanation: Dual agency, representing both buyer and seller in one transaction, creates a conflict of interest and is permitted only with the informed written consent of both parties. A dual agent may not advocate price or terms for either side and must protect each party's confidential information. Some states instead use designated agency, where different agents in one firm each represent one party, or a non-agency transaction-broker role. A broker must ensure no licensee slips into an undisclosed dual agency.
6. Property Disclosures
The federal lead-based paint disclosure rule applies to most residential housing built:
- a.Before 1978
- b.Before 1950
- c.After 1978
- d.Only to commercial buildings
Answer: a
Explanation: The federal lead-based paint rule applies to most residential housing built before 1978, the year lead-based paint was banned for residential use. Sellers and landlords must disclose known lead hazards, provide available records, deliver the EPA pamphlet, and give buyers a period to test. The rule is nationwide and does not depend on the buyer asking. A broker must ensure the office consistently uses the correct current lead-paint forms for pre-1978 homes.
7. Transfer of Title
Which deed gives the grantee the greatest protection by warranting title against all defects, including those that arose before the grantor owned the property?
- a.Quitclaim deed
- b.General warranty deed
- c.Special (limited) warranty deed
- d.Bargain and sale deed
Answer: b
Explanation: A general warranty deed offers the most protection: the grantor warrants title against all defects, including those predating the grantor's ownership, and stands behind covenants such as seisin, quiet enjoyment, and warranty forever. A special (limited) warranty deed covers only defects arising during the grantor's ownership. A bargain and sale deed implies ownership but adds few or no warranties, and a quitclaim conveys only whatever interest the grantor has, with no warranties. A broker should know which deed a transaction requires.
8. Practice of Real Estate
Which of the following is a core reason a brokerage maintains a written office policy manual and reviews transaction files?
- a.To guarantee every agent earns the same commission
- b.To supervise licensees and reduce the firm's risk of violations
- c.To eliminate the need for errors-and-omissions insurance
- d.To set commission rates jointly with other firms
Answer: b
Explanation: Written policies and regular file review are supervision and risk-management tools: they help the broker ensure agents follow the law, deliver required disclosures, and handle funds correctly, reducing the chance of violations for which the broker could be liable. They do not standardize commissions (which are negotiable) or set rates with competitors (which would be illegal antitrust conduct), and they complement rather than replace errors-and-omissions coverage. Supervision is a defining broker responsibility.
9. License Law
California real estate brokers are licensed and regulated under the Real Estate Law (Business and Professions Code, Division 4) by the:
- a.California Association of Realtors
- b.California Department of Real Estate (DRE), headed by the Real Estate Commissioner
- c.California Bureau of Consumer Financial Protection
- d.County recorder's office
Answer: b
Explanation: The California Department of Real Estate (DRE), led by the Real Estate Commissioner, administers the Real Estate Law found in Business and Professions Code Division 4 and the Commissioner's Regulations. The California Association of Realtors is a private trade group with no licensing authority, and county recorders only record documents.
10. Agency Disclosure
In a California residential sale of one to four units, the agent must provide the buyer and seller the statutory Disclosure Regarding Real Estate Agency Relationships (the 'AD' form). This disclosure explains:
- a.The property's exact market value
- b.Whether the agent represents the seller, the buyer, or both as a dual agent, and the duties owed
- c.The buyer's credit score
- d.The lender's interest rate
Answer: b
Explanation: California's agency disclosure (the AD form) is required in residential transactions of one to four units and explains the possible agency relationships, whether the agent is the seller's agent, the buyer's agent, or a dual agent, and the duties each owes. It is about representation, not valuation, credit, or financing terms, and must be provided at the statutory times.