Principles Chapter 3 Summary

License Law

The application for a salesperson examination must be submitted to the DRE on the Salesperson Examination

Application (RE 400A) along with the applicable fee.

  • NO changes of ANY KIND can be made to the application after submission;
  • There is no limitation on the number of reexaminations a person can take, but an application is valid for only two years.

The DRE may deny, suspend, revoke, or restrict the license of an applicant or licensee who subverts or attempts to subvert a licensing examination.

The California Business and Professions Code, Section 10153, requires that the real estate examinations test the following:

  • Appropriate knowledge of the English language and of arithmetical computations common to real estate and business opportunity practices;
  • A general understanding of the obligations between principal and agent; the principles of real estate and business opportunity transactions.

Salesperson examination topics:

  • Property Ownership and Land Use Controls and Regulations; Laws of Agency; Valuation and Market Analysis; Financing; Transfer of Property; Practice of Real Estate and Mandated Disclosures; Contracts. The Practice of Real Estate and Mandated Disclosures has the largest concentration of exam questions.

The applicant is required to score 70% or higher in order to pass and cannot inspect the book or answer sheet after the examination session has ended

  • Cell phone use is prohibited during the examination.
  • Only the examination booklet, the answer sheet, a special pencil, and slide rule or silent, battery-operated, pocket-size, electronic calculator and a single page of scratch paper are allowed on an examinee’s desk.
  • Those who pass will receive an application for a license. General requirements of the broker examination:
  • The appropriate fee must be submitted with a Broker Examination Application (RE 400B);
  • An applicant failing the examination may apply for reexamination and must pay the appropriate fee;
  • A person who fails to pass the examination during this two-year period must file a new application;
  • The application must include documentation that supports the qualification of the applicant.