Before you read
Test yourself first: 5 questions
Question 1 of 5
Confirmation of the agency relationship in a California transaction must occur:
Answer: D. The agency confirmation must be made in the purchase contract or in a separate document associated with the contract when the parties enter into it, clearly identifying who each agent represents.
Question 2 of 5
A primary statutory duty of the California Real Estate Commissioner is to:
Answer: B. The Commissioner's core duty is to enforce California's Real Estate Law and adopt and enforce regulations designed to protect the public in real estate transactions.
Question 3 of 5
How long must a California broker retain records of trust fund transactions and other records connected with licensed activity?
Answer: C. California brokers must retain all documents connected with a real estate transaction, including trust fund records, for three years. The retention period generally runs from the date of closing, or from the date of the listing if the transaction is not consummated.
Question 4 of 5
How often must a California broker reconcile the separate beneficiary ledgers against the trust account control record?
Answer: B. DRE regulations require the broker to reconcile the balances of all separate beneficiary or transaction records with the trust account control record at least once a month, except in months when no activity occurred.
Question 5 of 5
In a residential one-to-four unit sale, California's agency disclosure law requires the licensee to provide the buyer and seller with:
Answer: A. California requires agents in one-to-four unit residential transactions to give a written agency disclosure form explaining the possible agency relationships before entering into the representation.
Keep the streak going with more questions like these, each with a full rationale.
What you need to know
Strassburger). Property taxes are shaped by Proposition 13, and homes in Mello-Roos districts carry additional special taxes that must be disclosed. At transfer, a documentary transfer tax of $0.55 per $500 of value applies, and California's community property framework affects how married owners hold and convey title.
California Contract/Transaction Specifics: FAQs
Is California Contract/Transaction Specifics on the real estate exam?
Yes. State License Law is a scored domain on the California real estate licensing exam, and this topic appears in the state license-law portion.
Is this cheat sheet free?
Yes — every page on Cinna RE's resource library is free to read, print and share. The app adds practice questions, mock exams and a readiness score.
Does California test this differently?
California applies its own license law on top of the national portion. This page covers the California rules specifically, which is what the state section of your exam tests.
