CA RE Broker study guide
CA RE Broker · Work through your exam, one topic at a time.
The California real estate broker license is a professional credential issued by the California Department of Real Estate (DRE), the state agency whose stated mission is "to safeguard and promote the public interests in real estate matters through licensure, regulation, education and enforcement." A broker license authorizes its holder to conduct real estate brokerage activity and to engage salespersons and other licensees, so the examination is aimed at candidates who already have real estate experience or substantial transaction background and who intend to operate at a supervisory level rather than as a salesperson. The exam is multiple choice and is organized around five content areas weighted equally: Practice of Real Estate and Disclosures; Real Estate Law and Regulations; Financing and Economics; Agency, Contracts, and Transfer of Property; and Broker Responsibilities, Escrow, and Trust Funds. The CA RE Broker study guide has 5 sections and about 1,789 words.
01Practice of Real Estate and Disclosures
A seller of a one-to-four unit residential property must deliver a Transfer Disclosure Statement (TDS) disclosing known defects and conditions affecting value. Both the listing and selling agents complete a visual inspection section, noting observable defects; agents need not inspect inaccessible areas and need not verify what the seller says.
310 words, about 2 min02Real Estate Law and Regulations
The Department of Real Estate, headed by the Real Estate Commissioner (appointed by the Governor), licenses brokers and salespersons, audits trust accounts, and may deny, suspend, or revoke licenses, issue citations, and impose fines. It cannot award damages, decide commission disputes, or order a licensee to refund money to a consumer - those are court matters.
287 words, about 1 min03Financing and Economics
LTV equals loan divided by value; the down payment is the remainder. Below 20% down, conventional loans usually require PMI; FHA allows 3.5% down with MIP; VA offers 0% down with a funding fee and entitlement limits.
292 words, about 1 min04Agency, Contracts, and Transfer of Property
The fiduciary duties - obedience, loyalty, disclosure, confidentiality, accounting, reasonable care - run to the client. Agency is created expressly, by implication from conduct, or by ostensible agency when the principal's words or actions lead a third party to believe the relationship exists.
594 words, about 3 min05Broker Responsibilities, Escrow, and Trust Funds
A broker must supervise salespersons and branch offices, maintain written procedures, and review transactions. The broker holds the license; the salesperson's acts are the broker's acts.
306 words, about 2 min