Salesperson Examination Content
The law requires that salesperson license applicants demonstrate in a written examination:
Appropriate knowledge of the English language, including reading, writing, and spelling; and of arithmetical computations common to real estate and business opportunity practices.
An understanding of the principles of real estate and business opportunity conveyancing; the general purposes and general legal effect of agency contracts, deposit receipts, deeds, deeds of trust, chattel mortgages, bills of sale, mortgages, land contracts of sale, and leases; and of the principles of business, land economics and appraisals.
A general and fair understanding of the obligations between principal and agent; the principles of real estate and business opportunity transactions, and the code of business ethics pertaining thereto; as well as of the provisions of the law relating to real estate as administered by the Real Estate Commissioner.
When changes in the law occur or changes in the practice of real estate take place, new subject matter is added to one or more of the major categories. Thus, the categories are revised and brought up-to-date on a regular basis. There is no assurance that a specific test will cover all subject areas listed, because the test merely samples the broad field of real estate.
Because there are differences in the level and amount of knowledge required of salespersons and brokers, the exams differ in their emphasis and difficulty.
The following lists of examination topics are for informational purposes and should not be considered totally comprehensive:
NOTE: To pass the salesperson examination and become eligible for a license, examinees must correctly answer at least 70 percent of the questions on the test.
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
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
Responsibilities of Agent to Non-Client Third Parties
PROPERTY VALUATION AND FINANCIAL ANALYSIS (APPROXIMATELY 14% OF EXAM)
Value
Methods of Estimating Value
Financial Analysis
FINANCING (APPROXIMATELY 9% OF EXAM)
General Concepts
Types of Loans
Sources of Financing
Government Programs
Mortgages/Deeds of Trust/Notes
Financing/Credit Laws
Loan Brokerage
Types of Loan Originators
TRANSFER OF PROPERTY (APPROXIMATELY 8% OF EXAM)
Title Insurance
Deeds
Escrow
Tax Aspects
Special Processes
Transfer through Court Supervision
Types of Vesting
PRACTICE OF REAL ESTATE AND DISCLOSURES (INCLUDES SPECIALTY AREAS) (APPROXIMATELY 25% OF EXAM)
Trust Account Management
Fair Housing Laws
Truth in Advertising
Record Keeping Requirements
Agency Supervision
Permitted Activities of Unlicensed Sales Assistants
DRE Jurisdiction and Disciplinary Actions
Licensing, and Continuing Education Requirements and Procedures
California Real Estate Recovery Fund
General Ethics
Technology
Property Management
Commercial/Industrial/Income Properties
Specialty Areas
Transfer Disclosure Statement
Natural Hazard Disclosure Statements
Disclosure of Material Facts Affecting Property Value
Need for Inspection and Obtaining/Verifying Information
Reports
Servicing Diverse Populations
CONTRACTS (APPROXIMATELY 12% OF EXAM)
General
Listing Agreements
Buyer Broker Agreements
Offers/Purchase Contracts
Agreements
Promissory Notes/Securities
Purchase/Lease Options
Advanced Fee
Reading