1. Under California law, a real estate salesperson license is issued to:
- A. The salesperson personally, allowing them to work independently
- B. The salesperson personally, but they must be employed by and work under a licensed broker ✓
- C. The employing broker on behalf of the salesperson
- D. The California Department of Real Estate on behalf of the salesperson's broker
Under Business and Professions Code Section 10132 and 10160, a salesperson license is issued to the individual, but a licensed salesperson may only perform real estate activities while employed by and under the supervision of a licensed real estate broker. A salesperson cannot operate independently.
2. A California real estate salesperson license, if not renewed, expires after how many years from the date of issuance?
- A. One year
- B. Two years
- C. Four years ✓
- D. Five years
Under Business and Professions Code Section 10200, a California real estate salesperson license is valid for four years. Licensees must complete required continuing education (45 hours for salesperson first renewal) and pay the renewal fee before the expiration date to avoid lapse.
3. Which of the following activities would require a person to hold a California real estate license?
- A. Managing their own personally owned rental property
- B. Selling their own home without the assistance of an agent
- C. Soliciting prospective tenants for another person's apartment building for compensation ✓
- D. Referring a friend to a licensed agent as a personal favor with no compensation received
Business and Professions Code Section 10131 requires a license for anyone who, for compensation, solicits prospective tenants or lessees on behalf of another. Managing or selling one's own property is exempt. An uncompensated referral to a licensed agent does not constitute acting as a broker or salesperson.
4. The California Department of Real Estate is authorized to take disciplinary action against a licensee for 'misrepresentation.' Under the Business and Professions Code, this authority is part of a broader set of grounds for discipline that also includes which of the following?
- A. Failing to join the California Association of Realtors
- B. Commingling the funds of principals with personal funds ✓
- C. Charging a commission below the market rate
- D. Refusing to work with a particular cooperating broker
Business and Professions Code Section 10176 lists specific grounds for DRE disciplinary action against licensees, including commingling principals' funds with personal funds. The DRE has no authority to discipline for not joining a trade association, setting low commissions (commissions are negotiable by law), or refusing to cooperate with a specific broker per se.
5. Under California law, who has the authority to suspend or revoke a real estate broker's license?
- A. The California Department of Real Estate Commissioner ✓
- B. The California Attorney General
- C. The California Bureau of Consumer Affairs Director
- D. The California Secretary of State
Under Business and Professions Code Section 10100 et seq., the Real Estate Commissioner, who heads the California Department of Real Estate, has exclusive authority to suspend or revoke real estate licenses in California. The Commissioner is appointed by the Governor and administers the Real Estate Law.
6. A California real estate salesperson wants to work for a second employing broker simultaneously. Under the California Real Estate Law, this is:
- A. Permitted if both brokers give written consent and the DRE is notified
- B. Prohibited — a salesperson may only be licensed under one employing broker at a time ✓
- C. Permitted if the salesperson holds both a salesperson and an associate broker license
- D. Permitted without restriction as long as the salesperson discloses the arrangement to clients
Under California Business and Professions Code Section 10160, a salesperson's license is issued to and held by the employing broker. A salesperson may only be affiliated with one licensed broker at a time. Dual employment under two separate brokers is not permitted under California law.
7. Under California law, which of the following persons is EXEMPT from the requirement to hold a real estate license when performing acts normally requiring licensure?
- A. A property manager hired by an owner to collect rents on multiple residential units
- B. A resident manager of an apartment complex who lives on the premises and manages for the owner ✓
- C. A licensed contractor who lists properties for sale on behalf of clients
- D. A business consultant who negotiates lease terms for commercial tenants for compensation
Under California Business and Professions Code Section 10131.01, a resident manager who lives at and manages an apartment building on behalf of the owner is exempt from real estate licensing requirements. This exemption is specifically codified in California law and does not extend to off-site property managers or consultants who negotiate for compensation.
8. California real estate salesperson applicants must complete how many hours of pre-license education before sitting for the state examination?
- A. 90 hours across three required courses
- B. 150 hours across five required courses
- C. 135 hours across three required courses ✓
- D. 60 hours across two required courses
California real estate salesperson exam applicants must qualify by completing three statutory college-level pre-license courses: Real Estate Principles, Real Estate Practice, and one approved elective. Each course is 45 hours, for a total of 135 hours before qualifying for the salesperson state examination, subject to limited statutory exemptions such as attorney status.
9. A California real estate broker license applicant must have a minimum of how many years of full-time licensed salesperson experience within the five years immediately preceding the broker application?
- A. One year
- B. Three years
- C. Two years ✓
- D. Four years
Under California Business and Professions Code Section 10150.6, an applicant for a real estate broker license must have had at least two years of full-time licensed salesperson experience (or its equivalent) within the five years immediately preceding the application. This is a core California-specific statutory requirement distinguishing broker from salesperson qualifications.
10. Under California law, when a real estate salesperson's employing broker dies or has their license revoked, the salesperson's license status becomes:
- A. Automatically canceled with no opportunity to transfer
- B. Suspended until the salesperson passes a new examination
- C. Automatically placed on inactive status, giving the salesperson a period to affiliate with a new broker ✓
- D. Converted to a provisional broker license for 90 days
Under California Business and Professions Code Section 10161.8, when a broker's license is revoked, surrendered, or the broker dies, the salesperson's license is automatically placed on an inactive status. The salesperson may then transfer their license to a new qualifying broker. They are not required to retake the exam, and their license is not canceled outright.