Book updated Nov. 2020. In California, salesperson license applicants need to have appropriate knowledge of the English language, including reading, writing, and spelling; and of arithmetical computations common to real estate and business opportunity practices. They need to have an understanding of the principles of real estate and conveyancing and the general purposes and general legal effect of agency contracts. They also need to have a general and fair understanding of the obligations between principal and agent; the principles of real estate disclosure, and the code of business ethics pertaining thereto; as well as of the provisions of the law relating to real estate as administered by the Real Estate Commissioner. The broker exam covers similar topics. This book focuses on topics related to laws and regulations; contracts and licensing requirements; as well as property management and leasing. An advice: Do NOT rely on a single source for exam preparation. To secure exam success, always use multiple sources and read as much as possible! TAX RATES AND FEES TEND TO CHANGE FREQUENTLY. THEREFORE YOU SHOULD CHECK WITH YOUR LOCAL AUTHORITIES FOR THE LATEST INFORMATION UPDATES. Throughout the book we try to use the term "agent" instead of "salesperson"/"sales associate" because in many states people use these terms interchangeably. Also note that many of the real estate skills and knowledge actually apply to both salespersons/sales associates and brokers. The underlying concepts and principles are in many circumstances almost identical.