Before you read
Test yourself first: 5 questions
Question 1 of 5
A salesperson's license may be issued and held only under the supervision of:
Answer: B. In California a salesperson must work under and be supervised by an employing licensed broker. The broker is responsible for the salesperson's licensed activities; acting without a supervising broker is a violation.
Question 2 of 5
A broker fails to reasonably supervise the licensed activities of the salespersons in the office, and a client is harmed as a result. The broker:
Answer: B. California requires a broker to exercise reasonable supervision over the activities of associated licensees. Failure to supervise is itself grounds for disciplinary action against the broker, independent of the salesperson's conduct.
Question 3 of 5
Which agency licenses and regulates real estate salespersons in California?
Answer: A. The California Department of Real Estate (DRE) licenses and regulates real estate brokers and salespersons in California.
Question 4 of 5
Which state agency licenses and regulates real estate salespersons and brokers in California?
Answer: A. The California Department of Real Estate (DRE) is the state agency that licenses and regulates real estate salespersons and brokers. The California Association of REALTORS is a private trade group, not a government regulator.
Question 5 of 5
Which California agency is responsible for licensing real estate salespersons and brokers and enforcing the Real Estate Law against licensees?
Answer: A. The California Department of Real Estate (DRE), headed by the Real Estate Commissioner, licenses real estate salespersons and brokers and enforces the Real Estate Law, including investigating complaints and imposing discipline.
Keep the streak going with more questions like these, each with a full rationale.
What you need to know
To qualify for a salesperson license you must complete 135 hours of approved pre-license education (Real Estate Principles, Real Estate Practice, and one elective). A salesperson cannot act independently; they must work under and be supervised by a licensed real estate broker, who is responsible for the salesperson's activities and trust-fund handling.
How California Licenses Real Estate Agents (DRE & Broker Supervision): FAQs
Is How California Licenses Real Estate Agents (DRE & Broker Supervision) 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.

