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California Real Estate Test

Instructions:

Answer 50 questions in 15 minutes.
If you are not ready to take this test, you can study here.
Match each statement with the correct term.
Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.

This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.

1. Community property
Sum of money - agreed to in advance and stated in the contract - that will be paid for not fulfilling a clause or condition in the contract
Loss in value from any cause? is a common definition
Cconsists of all property acquired by a husband and wife - or either - during a valid marriage - other than separate property
Copies of all listings - deposit receipts - canceled checks - and trust records must be retained by a licensed real estate broker

2. Ownership of real property
The seller's signature
Prohibits discrimination in a place of public accommodation based on an individual's physical or mental disabilities.
Separate ownershi and Concurrent ownership; a. Tenancy in common; b. Joint tenancy; and c. Community property.
Single car garage but market desire is for a double car garage - home has only 1 bathroom but market desires two - floor plan is an older outdated layout

3. Attorney-in-fact
All property owned before marriage - All property acquired during marriage by gift or inheritance - All rents - issues and profits of separate property - as well as other property acquired with the proceeds from sale of separate property (separate pr
Changes in escrow instructions - which require the agreement of both the buyer and seller.
Real Estate Equity Trust
A person appointed as an agent under a power of attorney

4. A tenancy in common
In a legal sales contract - the seller is often referred to as the
Joint ownership of real property by two or more persons - each of whom has an undivided interest (not necessarily equal) without right of survivorship
All property owned before marriage - All property acquired during marriage by gift or inheritance - All rents - issues and profits of separate property - as well as other property acquired with the proceeds from sale of separate property (separate pr
36 individual square miles or 640 acres.

5. RPSD
An agency created by a principal's approving an unauthorized act of another.
A loan that can be taken over by a purchaser. I new purchaser can assume the old note. Such a loan would not have a due on sale clause.
A government agency that makes rules and regulations to carry out the law.
Real Property Securities Dealer

6. FNMA
After being acknowledged - any instrument or judgment affecting the title to or possession of real property may be recorded
Federal National Mortgage Association
Any loss of value due to conditions outside of the property itself. aka social obsolescence
Failure to comply with a material term or provision of a contract

7. Meridians
ALTA - The association that developed an extended-coverage policy of title insurance for lenders ( same coverage available to buyers )
When two or more persons are owners of undivided interests in the title to real property. It is created if an instrument conveying an interest in real property to two or more persons does not specify that the interest is acquired by them in joint ten
Vertical in the township and section system
Deed from trustee to trustor - at the request of the beneficiary of trust (lender) - that returns title to the trustor on payment of indebtedness

8. PITI
An agency created when a principal's conduct led another to believe in the existence of the agency and thereby to act to his or her detriment.
Loss of value due to adverse factors within a structure that affect the marketability of the property.
Real Estate Educators Association
Items used to qualify a buyer for the proper debt:income ratio. Usually 1/3 of gross income. principle - interest - taxes - insurance

9. FIRREA
A method to acquire title. It requires five-year - open - notorious - uninterrupted use under some claim of right - and the payment of taxes.
Within 3 days from acceptance of the offer (this must happen)
An agency created by a principal's approving an unauthorized act of another.
Financial Institute Reform - Recovery - and Enforcement Act of 1989

10. Assignment
36 individual square miles or 640 acres.
The gradual buildup of land by natural causes ( generally by action of water )
Transfer of all interest in a contract or lease.
Joint tenants have: unity of time - unity of title - unity of interest - unity of possession

11. Ranges
Grid of vertical lines (US Government and township)
Department of Housing and Urban Development
Prohibits discriminatory loan practices on the part of financial institutions (banks - savings and - loan associations - or other financial institutions - including mortgage loan brokers - mortgage bankers and public agencies which regularly make - a
Ownership by one person

12. Assignment of contract
Advance payments made to an agent to cover expected cash outlays in carrying out the agency.
Commission is only controlled by law under two situations. One being If property is sold while in probate and...
Notice that has been expressly given and is known to a party
Transfer of all rights under a contract to a third party. Assignor remains secondarily liability.

13. Affirmation
Negotiable commission for residential
A contract based on an illegal consideration
A formal declaration of the truthfulness of a statement - given in lieu of a verification.
Cconsists of all property acquired by a husband and wife - or either - during a valid marriage - other than separate property

14. Tax delinquent real property not redeemed by the owner during the five-year statutory redemption period...
is deeded to the county
An agency created when a principal's conduct led another to believe in the existence of the agency and thereby to act to his or her detriment.
An action to remove a nuisance
Commission is only controlled by law under two situations. One being If property is sold while in probate and...

15. Deed of reconveyance
Deed from trustee to trustor - at the request of the beneficiary of trust (lender) - that returns title to the trustor on payment of indebtedness
An agency created when a principal's conduct led another to believe in the existence of the agency and thereby to act to his or her detriment.
Promise for a promise.
Changes in escrow instructions - which require the agreement of both the buyer and seller.

16. Advance fee
A fee for rental information accepted in advance - or a promotional fee for a sale listing.
Federal proceedings to declare a debtor bankrupt. The debtor is relieved of unsecured obligations. If there are secured debts and the security is given up - debtor can be relieved of secured obligations.
Commission is only controlled by law under two situations. One being If property is sold while in probate and...
An act that requires recordings and publication of a sale not in the normal course of business.

17. vendor (term in real estate)
43560 square feet
Any loss of value due to conditions outside of the property itself. aka social obsolescence
In a legal sales contract - the seller is often referred to as the
Some paper signed and delivered by one person to another - transferring the title to - or giving a lien on - property or giving a right to a debt or duty

18. Major repairs in the past 5 years ( house for sale )...
NE - North East
A phrase used in sale contracts by sellers as an attempt to limit liability for the condition of the premises. If known latent defects or condition of a property is known to the seller - seller has the obligation to disclose.
Two or more persons are joint and equal owners of the same undivided interest in real property. We regard this as a fourfold unity: interest - title - time - and possession. Joint tenants have one and the same interest - acquired by the same conveyan
Must be disclosed to the buyer if

19. Bait and switch
Inducing panic selling based on fear of the entry of persons of another race - color - religion - or ancestry into the area.
Practice of advertising where a seller will not sell an item at a price advertised or does not have the item to sell in order to bring in buyers for other items. This conduct is ILLEGAL
The sudden removal of land by action of water - such as a river changing course.
One broker

20. Agency by estoppel

21. Which corner does the township numbering system start in?
NE - North East
Prohibits discrimination in a place of public accommodation based on an individual's physical or mental disabilities.
The gradual buildup of land by natural causes ( generally by action of water )
Elements of a contract - mutual COnsent - CApacity - COnsideration - LAwful purpose ( must be in writing )

22. American Land Title Association
A formal declaration of the truthfulness of a statement - given in lieu of a verification.
ALTA - The association that developed an extended-coverage policy of title insurance for lenders ( same coverage available to buyers )
Buyer to take possession 3 days after the close of escrow
Truth in Lending Act - Implemented by Regulation Z set by the Federal Trade Commission

23. Administrative agency
A government agency that makes rules and regulations to carry out the law.
Grid horizontal lines (US Government and township)
Parallel wooden members used to support floor and ceiling loads are called
Alternative Minimum Tax - requires taxpayers - who make above a certain amount of gross income to - to figure taxes twice.

24. Agency
Foreign Investments in Real Property Tax Act
Legal relationship under which an agent represents another - or principal - in dealings with third parties.
A contract based on an illegal consideration
ALTA - The association that developed an extended-coverage policy of title insurance for lenders ( same coverage available to buyers )

25. Staging
The transfer of all rights under a lease by a lessee to a third party - who becomes a tenant of the lessor. The assignee is primarily liable under the lease - while the assignor has secondary liability
Simultaneous ownership of a given piece of property by two or more persons - Tenancy in common; Joint tenancy; and Community property.
Offer the seller suggestions on ways to show a home for maximum positive first impression
A loan that can be taken over by a purchaser. I new purchaser can assume the old note. Such a loan would not have a due on sale clause.

26. Agent
Vertical in the township and section system
One who represents another in an agency relationship.
Sales prices of comparable properties
All beneficial rights that go with ownership of real property

27. Acceleration upon default
Property owned by husband and wife
The gradual buildup of land by natural causes ( generally by action of water )
A copy of all recorded documents dealing with a property. Attorneys give title opinions based on abstracts.
All payments become due upon default of payment. In California - the debtor can cure the default by catching up on payments prior to foreclosure.

28. Alquist-Priolo Special Studies Zone Act
Provides for project approval in close proximity to earthquake faults - as well as disclosures to buyers.
The gradual buildup of land by natural causes ( generally by action of water )
Notice that has been expressly given and is known to a party
Changes in escrow instructions - which require the agreement of both the buyer and seller.

29. MLS
Something that belongs to and goes with a property - such as structure and easement rights
Person holding title to real property in severalty
Practice of advertising where a seller will not sell an item at a price advertised or does not have the item to sell in order to bring in buyers for other items. This conduct is ILLEGAL
Multiple Listing Service

30. TTIP
Separate ownershi and Concurrent ownership; a. Tenancy in common; b. Joint tenancy; and c. Community property.
A copy of all recorded documents dealing with a property. Attorneys give title opinions based on abstracts.
Joint tenants have: unity of time - unity of title - unity of interest - unity of possession
Lender (or seller) in a trust deed loan situation

31. Encumbrance

32. Agency by ratification

33. Assumable loan
Vertical in the township and section system
Very generally as any right or interest in land - possessed by a stranger to the title - which affects the value of the owner's estate but does not prevent the owner from enjoying and transferring the fee
The revocation of a specific property grant in a will by disposing of said property prior to death.
A loan that can be taken over by a purchaser. I new purchaser can assume the old note. Such a loan would not have a due on sale clause.

34. Grantor - quitclaim
Any loss of value due to conditions outside of the property itself. aka social obsolescence
The Humboldt Base Line and Meridian in the northwestern part of the State; the Mt. Diablo Base Line and Meridian in the central part of the State; and the San Bernardino Base Line and Meridian in the southern part of the State.
Arrangement that allows a mortgagor (borrower) to borrow additional sums in future up to a maximum figure - and is secured by the same asset or property.
A quitclaim deed conveys only the present right - title and interest of the

35. Assignment of lease
The transfer of all rights under a lease by a lessee to a third party - who becomes a tenant of the lessor. The assignee is primarily liable under the lease - while the assignor has secondary liability
Loss of value due to adverse factors within a structure that affect the marketability of the property.
An act that requires recordings and publication of a sale not in the normal course of business.
Provides for project approval in close proximity to earthquake faults - as well as disclosures to buyers.

36. A broker selling a property on which he holds an option should notify the purchaser...
Provides for rent as a percentage of the tenants' gross income ( gross sales )
Title or interest acquired by the grantor after property has been conveyed.
By recorded map; by U. S. Government section and township; and by metes and bounds
that he is acting as an optionor

37. Adverse possession
Within 3 days from acceptance of the offer (this must happen)
Any outstanding claim or encumbrance which would - if valid - affect or impair the owner's title to a particular estate. While the cloud remains - the owner is prevented from conveying marketable title
Loss of value due to adverse factors within a structure that affect the marketability of the property.
A method to acquire title. It requires five-year - open - notorious - uninterrupted use under some claim of right - and the payment of taxes.

38. Institutional advertising

39. Community Property
Prohibits discriminatory loan practices on the part of financial institutions (banks - savings and - loan associations - or other financial institutions - including mortgage loan brokers - mortgage bankers and public agencies which regularly make - a
Property owned by husband and wife
Arrangement that allows a mortgagor (borrower) to borrow additional sums in future up to a maximum figure - and is secured by the same asset or property.
Provides for rent as a percentage of the tenants' gross income ( gross sales )

40. Township
Two or more persons are joint and equal owners of the same undivided interest in real property. We regard this as a fourfold unity: interest - title - time - and possession. Joint tenants have one and the same interest - acquired by the same conveyan
36 individual square miles or 640 acres.
Grid horizontal lines (US Government and township)
Financial Institute Reform - Recovery - and Enforcement Act of 1989

41. Article 7
Prohibits discriminatory loan practices on the part of financial institutions (banks - savings and - loan associations - or other financial institutions - including mortgage loan brokers - mortgage bankers and public agencies which regularly make - a
Instrument used to secure a loan on personal property is called
Part of the Business and Professions Code covering loan costs - commissions - and payment requirements relating to loan brokerage activity.
is deeded to the county

42. Amendments to the escrow instructions
Act of a party that can be treated as a breach of contract because it makes performance by that party impossible.
Changes in escrow instructions - which require the agreement of both the buyer and seller.
Truth in Lending Act - Implemented by Regulation Z set by the Federal Trade Commission
real estate

43. Unruh Civil Rights Act - California
All payments become due upon default of payment. In California - the debtor can cure the default by catching up on payments prior to foreclosure.
Agency in which an agent has a financial interest in the subject matter of the agency.
All persons within the jurisdiction of this State are free and equal - and no matter what their sex - race - color - religion - ancestry - national origin or disability are entitled to the full and equal accommodations - advantages - facilities - pri
Mortgages in California

44. Balloon payment
A final payment that is more than twice the amount of the lowest payment.
Transfer of all rights under a contract to a third party. Assignor remains secondarily liability.
Created in 1934 to provide mortgage insurance on loans made by FHA - approved lenders - part of HUD
Sales prices of comparable properties

45. Uniform Settlement Statement
Parallel wooden members used to support floor and ceiling loads are called
Statement of the actual settlement costs. Provided by US Dept of HUD.
Commission is only controlled by law under two situations. One being If property is sold while in probate and...
Law prohibits discrimination in supplying housing accommodations because of race - color - religion - sex - marital status - national origin - ancestry - age - familial status or disability.

46. Blind ad
Prohibits discriminatory loan practices on the part of financial institutions (banks - savings and - loan associations - or other financial institutions - including mortgage loan brokers - mortgage bankers and public agencies which regularly make - a
An advertisement that fails to reveal that the advertiser is an agent and not a principal
Use of personal property to secure or guarantee a promissory note.
NE - North East

47. 43560 square feet =
1 square mile
Separate ownershi and Concurrent ownership; a. Tenancy in common; b. Joint tenancy; and c. Community property.
36 individual square miles or 640 acres.
National Association of Independent Fee Appraisers

48. Agent of the broker
Taxes based on value - such as property tax. ( Latin - according to value )
The Broker is the Agent of the seller. The salesperson is the
A disclosure statement given to borrowers by mortgage loan brokers that provides information on all costs - fees - and loan terms.
Separate ownershi and Concurrent ownership; a. Tenancy in common; b. Joint tenancy; and c. Community property.

49. FTC
Commission is only controlled by law under two situations. One being the Real Property Loan Law and...
Federal Trade Commission
A prejudgment lien that can be obtained to ensure the availability of property for execution after a judgment is obtained.
Practice of advertising where a seller will not sell an item at a price advertised or does not have the item to sell in order to bring in buyers for other items. This conduct is ILLEGAL

50. Beneficiary statement
Mortgages in California
Grid horizontal lines (US Government and township)
Simultaneous ownership of a given piece of property by two or more persons - Tenancy in common; Joint tenancy; and Community property.
Statement by beneficiary as to balance due on loan.