California Unlicensed Real Estate Activity exam
2026 questions and rationales answers
1. Which person generally must hold a California real estate license?
A. A person selling their own home
B. A person performing licensed real estate activities for another for compensation
C. A person looking for a home for themselves
D. A tenant negotiating their own lease
Answer: B.
California requires licensing for persons performing activities within the scope of the Real Estate
Law, subject to statutory exemptions.
2. An unlicensed person may legally perform which activity?
A. Negotiating a purchase price for another person
B. Soliciting listings for a broker
C. Performing purely administrative duties that do not require a license
D. Negotiating lease terms for compensation
Answer: C.
Unlicensed assistants may perform administrative activities but may not perform acts requiring
a real estate license.
3. Which activity would most clearly constitute unlicensed real estate activity?
A. Scheduling an appointment
B. Typing a document
C. Negotiating a sales contract for another person
D. Filing transaction documents
Answer: C.
Negotiating a real estate transaction is a licensed activity.
4. Who is responsible for properly supervising an unlicensed administrative assistant?
A. The buyer
B. The seller
,C. The responsible broker
D. The county recorder
Answer: C.
The broker must ensure that unlicensed assistants do not perform activities requiring a license.
5. An unlicensed assistant may generally:
A. Show property independently
B. Negotiate commissions
C. Schedule appointments
D. Solicit buyers
Answer: C.
Scheduling and other administrative duties may be performed when they do not involve licensed
activity.
6. An unlicensed assistant is generally prohibited from:
A. Answering routine telephone calls
B. Maintaining files
C. Negotiating transaction terms
D. Ordering office supplies
Answer: C.
Negotiating transaction terms requires licensed authority.
7. California Business and Professions Code §10139 provides that unlicensed real estate
activity may be:
A. Only a civil matter
B. A public offense
C. Automatically ignored
D. A licensing examination violation only
Answer: B.
Section 10139 makes acting as a real estate broker, salesperson, or mortgage loan originator
without the required authorization a public offense.
, 8. The maximum fine specified in §10139 for an individual acting without the required license
may be:
A. $500
B. $2,500
C. $10,000
D. $20,000
Answer: D.
Section 10139 provides for a fine of up to $20,000 for an individual, along with possible county-
jail imprisonment.
9. Under §10139, a corporation violating the unlicensed-activity provision may face a fine of
up to:
A. $10,000
B. $20,000
C. $50,000
D. $60,000
Answer: D.
The statute provides a maximum fine of $60,000 for a corporation.
10. An unlicensed person who advertises using words indicating that they are a real estate
broker may:
A. Be violating California law
B. Automatically become licensed
C. Advertise freely
D. Only receive a warning
Answer: A.
Section 10139 specifically addresses advertising that represents an unlicensed person as a
broker, salesperson, or mortgage loan originator.
11. A salesperson who has a license but no responsible broker may:
A. Perform licensed acts independently
B. Perform licensed acts for the public
C. Hold the license but not perform acts requiring a license without a responsible broker
D. Collect commissions directly
2026 questions and rationales answers
1. Which person generally must hold a California real estate license?
A. A person selling their own home
B. A person performing licensed real estate activities for another for compensation
C. A person looking for a home for themselves
D. A tenant negotiating their own lease
Answer: B.
California requires licensing for persons performing activities within the scope of the Real Estate
Law, subject to statutory exemptions.
2. An unlicensed person may legally perform which activity?
A. Negotiating a purchase price for another person
B. Soliciting listings for a broker
C. Performing purely administrative duties that do not require a license
D. Negotiating lease terms for compensation
Answer: C.
Unlicensed assistants may perform administrative activities but may not perform acts requiring
a real estate license.
3. Which activity would most clearly constitute unlicensed real estate activity?
A. Scheduling an appointment
B. Typing a document
C. Negotiating a sales contract for another person
D. Filing transaction documents
Answer: C.
Negotiating a real estate transaction is a licensed activity.
4. Who is responsible for properly supervising an unlicensed administrative assistant?
A. The buyer
B. The seller
,C. The responsible broker
D. The county recorder
Answer: C.
The broker must ensure that unlicensed assistants do not perform activities requiring a license.
5. An unlicensed assistant may generally:
A. Show property independently
B. Negotiate commissions
C. Schedule appointments
D. Solicit buyers
Answer: C.
Scheduling and other administrative duties may be performed when they do not involve licensed
activity.
6. An unlicensed assistant is generally prohibited from:
A. Answering routine telephone calls
B. Maintaining files
C. Negotiating transaction terms
D. Ordering office supplies
Answer: C.
Negotiating transaction terms requires licensed authority.
7. California Business and Professions Code §10139 provides that unlicensed real estate
activity may be:
A. Only a civil matter
B. A public offense
C. Automatically ignored
D. A licensing examination violation only
Answer: B.
Section 10139 makes acting as a real estate broker, salesperson, or mortgage loan originator
without the required authorization a public offense.
, 8. The maximum fine specified in §10139 for an individual acting without the required license
may be:
A. $500
B. $2,500
C. $10,000
D. $20,000
Answer: D.
Section 10139 provides for a fine of up to $20,000 for an individual, along with possible county-
jail imprisonment.
9. Under §10139, a corporation violating the unlicensed-activity provision may face a fine of
up to:
A. $10,000
B. $20,000
C. $50,000
D. $60,000
Answer: D.
The statute provides a maximum fine of $60,000 for a corporation.
10. An unlicensed person who advertises using words indicating that they are a real estate
broker may:
A. Be violating California law
B. Automatically become licensed
C. Advertise freely
D. Only receive a warning
Answer: A.
Section 10139 specifically addresses advertising that represents an unlicensed person as a
broker, salesperson, or mortgage loan originator.
11. A salesperson who has a license but no responsible broker may:
A. Perform licensed acts independently
B. Perform licensed acts for the public
C. Hold the license but not perform acts requiring a license without a responsible broker
D. Collect commissions directly
