CA Real Estate study guide
CA Real Estate · Work through your exam, one topic at a time.
A California real estate salesperson license is 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." The license is required to perform real estate activity for compensation while working under a licensed broker, and it is the entry-level credential for people starting in residential and commercial brokerage, leasing, and related transaction work. Candidates move through a sequence the DRE organizes under its Examinee section: applying for the examination, having education and application requirements reviewed, self-scheduling or rescheduling a test date through eLicensing, and then taking the exam at a DRE-approved location. The CA Real Estate study guide has 7 sections and about 2,209 words.
01Property Ownership and Land Use Controls and Regulations
California recognizes freehold estates (fee simple absolute, fee simple defeasible, life estate) and leasehold estates. Co-ownership appears as tenancy in common (unequal shares allowed, no survivorship), joint tenancy (equal shares; the four unities of time, title, interest, and possession plus right of survivorship), community property (presumption for property acquired during marriage while domiciled in California), and community property with right of survivorship.
339 words, about 2 min02Laws of Agency and Fiduciary Duties
Agency arises by express agreement, implication from conduct, or ostensible authority created when a principal leads a third party to believe the agent is authorized. California requires a prescribed agency disclosure (the Agency Disclosure statement) before a buyer or seller signs an offer or listing, and disclosure of the agent's role - seller's agent, buyer's agent, or dual agent.
322 words, about 2 min03Property Valuation and Financial Analysis
Sales comparison is the primary approach for residential property: adjust comparables to the subject (never the reverse). Cost approach suits new or special-purpose property: reproduction or replacement cost minus depreciation, plus land value.
311 words, about 2 min04Financing
California lenders typically use a deed of trust rather than a mortgage: the trustor borrows, the beneficiary lends, and a neutral trustee holds title with the power of sale. Default leads to nonjudicial foreclosure by trustee's sale after the notice of default and notice of sale periods.
307 words, about 2 min05Transfer of Property Ownership
A valid deed requires a competent grantor, identifiable grantee, words of grant, legal description, signature of the grantor, and delivery with acceptance. A grant deed carries implied warranties that the grantor has not conveyed the property to anyone else and that the property is free of undisclosed encumbrances.
315 words, about 2 min06Real Estate Practice
California salespersons must work under a responsible broker. Salespeople may not accept compensation from anyone but their employing broker.
303 words, about 2 min07Contracts
A contract needs offer, acceptance, consideration, capacity, lawful object, and mutual consent. A counteroffer terminates the original offer; acceptance must be communicated to be effective.
312 words, about 2 min