Real Estate Principles


REL: Real Estate and Loan School



Office: (408) 264-1761

Course Descriptions

  • Fundamental principles
  • Economic
  • Law
  • Working Concepts
  • and Terminology

Understand California real estate law as preparation for the salesman and broker examinations. (45 hours)

(Sponsor #S0408)

Required Text and Material:

  • California Real Estate Principles by Brady, Estes, and McKenzie, 10.1e, On Course Learning.
  • A Non-programmable calculator

Course Objectives:

  • Have a clear understanding of real estate law and concepts
  • Be able to utilize concepts learned and apply them to practicum
  • Be able to pass the State Examination on the first attempt

Table of Contents:

Chap 1 Career in Real Estate Quiz #1 3
Chap 2 Introduction to Real Estate Quiz #2 3
Chap 3 Real Estate Agency Quiz #3 3
Chap 4 Real Estate Disclosures Quiz #4 3
Chap 5 Real Estate Contracts Quiz #5 3
Chap 6 (Part 1) Legal Descriptions Methods of Acquiring Title
(Part 2) Methods of Holding Title
Quiz #6 3
Chap 7 Encumbrances Quiz #7 3
Chap 8 Real Estate Finance Quiz #8 3
Chap 9 (Part 1) Real Estate Lenders
(Part 2) FHA, VA, Cal-Vet
Quiz #9 3
Chap 10 Real Estate Appraisal Quiz #10 3
Chap 11 Role of Title Insurance Companies Quiz #11 3
Chap 12 Landlord and Tenant Relations Quiz #12 3
Chap 13 Land-Planning, Subdivision, Fair Housing Quiz #13 3
Chap 14 Introduction to Taxation Quiz #14 3
Chap 15 Single Family Homes and Mobile Homes Quiz #15 3
Total Hours 45


  • At the end of each chapter, you will be asked to answer a list of questions. Check the answers provided for you for accuracy at the back of the book. You should be scoring at least 60%.
  • In the back of the book, there are 150 questions to prepare you for the course final and State exam. The answer keys are also provided in the textbook.

Final Exam

Open Book, 2-1/2 hours, 100 multiple choice questions. 60% or better passing score.  Students will take the final exam with a proctor. Students may contact REL, Real Estate and Loan School and request a convenient location, date, and time for the final exam and the student may also suggest the proctor or entity to administer the final exam. The exam administrator cannot be related by blood, marriage, domestic partnership, or any other relationship to the student which would influence them from properly administering the exam. The exam administrator will be given a Test Administrator Instructions to complete, sign, and return to REL either by mail, fax, or in person.

The Department of Real Estate allows this course to be completed in a MINIMUM time of 2-1/2 weeks (18 calendar days) from your date of enrollment.

1 2-1/2 weeks
2 5 weeks
3 7-1/2 weeks

Re-Take the Final Exam

If you fail the course final examination, you must re-register for the course and the 2-1/2 week minimum completion time limit would again apply. There will be a charge of $25.00 for re-registration and to have your final exam mailed.


REL will maintain records sufficient to issue a duplicate completion certificate upon request.  If you are going to take more than one course from REL, we will furnish one course completion certificate at the conclusion of your last course, showing all courses completed.  If you request or require a copy of your certificate at a later date, there will be an additional charge of $20.00 per additional certificate.


Should you not be able to complete this course within one (1) year of the date of enrollment, (for any reason, no exceptions) there is a one-time re-enrollment of $100 for a 3-month extension.


If the student is not completely satisfied with the course, s/he can simply return all the materials in its original, new condition to REL within 10 calendar days from the date of enrollment and receive a refund, less a one-time set-up fee of $75.  All cancellation must be made in person or by certified mail. Cancellation will not be accepted on the 11th calendar day from the date of the enrollment.

On-Line Evaluation:

A course and instructor evaluation is available on the Department of Real Estate website at Access this form by typing in RE318A in the search box located in the upper right corner of the home page.

Department of Real Estate Sponsor ID S0408

Course Provider Complaint Statement: A course provider complaint form is available on the Department of Real Estate website at Access this form by typing RE 340A in the search box.

Department of Real Estate Disclaimer Statement:

This course is approved for pre-license education credit by the Department of Real Estate. However, this approval does not constitute an endorsement of the views or opinions which are expressed by the course sponsor, instructors, authors, or lecturers.

Applying for the State Exam:

  • When you have completed this course, you will be issued a Certificate of Completion.
  • Once you have passed all three courses: Principles, Practice, and an Elective, you are ready to take the State exam.
  1. Go to
  2. Click on EXAMINEES
  3. Click on How to apply for Salesperson Exam
  4. Click on California Salesperson Exam Application (RE400A)
  5. Submit this form with current fee by visiting

Preparing for the State Exam:

Here are some tips to preparing for the State exam are as follows:

  • Do not mark the tests; put your answers on a separate sheet of paper. This will allow you to retake the test later.
  • Always take the tests as test. Do not look up any answers until you have completed the entire practice test. Many questions on the State Exam are sound-a-like question. They have several answer choices which sound very similar, but are in actuality quite different. You must learn the concepts behind the questions. Do not just memorize questions and answers.
  • Read the questions carefully. Be sure you know what the question is asking before you select an answer. Many questions are missed simply because the thrust of the question is missed.
  • Do not look for the perfect answer. There might not be one! Often you will be looking for the answer choice which is most right or least wrong.

Textbook Recommendations:

  • California Real Estate Exam Preparation by William Pivor, On Course Learning, 15the
  • California Real Estate Practice Exams for the Salesperson License Exam by Thomas Felde, Thomson/South-Western
  • California Real Estate Exam prep. The Smart Guide to Passing 2nd e by Thomas Felde, On Course Learning.

What to do after Passing the State Exam:

When you have passed the State exam, the Department of Real Estate will be mailing  you a packet with forms  and instructions to complete.

  1. Salesperson License Application (RE202)
  2. Live Scan Service Request (RE237) (fingerprinting)
  3. Proof of Legal Presence

Mandatory Courses and Electives:

Effective October 1, 2007, a person must complete three (3) real estate classes before applying for the real estate salesperson exam. Exempt from this requirement are attorneys and persons qualified to take the broker exam. A new legislation is to be approved in which a broker must have at least 2 years supervised experience before applying for the broker license. The other courses besides Principles are as follows:

Real Estate Principles (mandatory)

Real Estate Practice (mandatory)


Real Estate Finance

Real Estate Appraisal

Property Management

Real Estate Economics

Legal Aspects of Real Estate

Real Estate Office Administration

Business Law


Common Interest Development

Computer Application and Real Estate