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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. Bait and switch
A final payment that is more than twice the amount of the lowest payment.
Zoning for density with open-space requirements as well as setback - parking - and height restrictions
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
Taxes based on value - such as property tax. ( Latin - according to value )

2. Affirmative easement
Easement that gives the dominant tenement owner the right to use the servient tenement.
Federal National Mortgage Association
Personal property transferred by will
Two or more persons - as partners - own property for partnership purposes

3. RPSD
All payments become due upon default of payment. In California - the debtor can cure the default by catching up on payments prior to foreclosure.
Real Property Securities Dealer
Lender (or seller) in a trust deed loan situation
A covenant under which an owner is required to do something - such as build within a stated period of time.

4. Assignment
An agency created by a principal's approving an unauthorized act of another.
A person appointed as an agent under a power of attorney
Transfer of all interest in a contract or lease.
A note that will liquidate itself over its term in equal installments

5. Abstract of judgment

6. Advance fee addendum
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
Attempt to establish a firm's identity to the public
Simultaneous ownership of a given piece of property by two or more persons - Tenancy in common; Joint tenancy; and Community property.
An agreement specifying activities for which the agent is to be compensated. It would include provisions for an advance payment of fees.

7. FNMA
Federal National Mortgage Association
A contract based on an illegal consideration
Personal property transferred by will
Department of Housing and Urban Development

8. CoCa CoLa
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
Principal + Interest + Monthly taxes and insurance + homeowners assoc. fee = 25% - 30% gross monthly income
Elements of a contract - mutual COnsent - CApacity - COnsideration - LAwful purpose ( must be in writing )
Lender (or seller) in a trust deed loan situation

9. Community property
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.
Competitive Market Analysis
Cconsists of all property acquired by a husband and wife - or either - during a valid marriage - other than separate property
A method to acquire title. It requires five-year - open - notorious - uninterrupted use under some claim of right - and the payment of taxes.

10. Agency by ratification

11. Federal Truth-in-Lending Law
Real Estate Investment Trust
Prohibits discrimination in a place of public accommodation based on an individual's physical or mental disabilities.
Agency in which an agent has a financial interest in the subject matter of the agency.
Finance charge and annual percentage rate - Regulation Z

12. Agency coupled with an interest
Agency in which an agent has a financial interest in the subject matter of the agency.
The party required to prove a fact when an issue is in dispute
Multiple Listing Service
Loss in value from any cause? is a common definition

13. Agency by estoppel

14. Federal Housing Administration - role
Created in 1934 to provide mortgage insurance on loans made by FHA - approved lenders - part of HUD
Real Property Securities Dealer
The revocation of a specific property grant in a will by disposing of said property prior to death.
Something that belongs to and goes with a property - such as structure and easement rights

15. Base lines
that he is acting as an optionor
An act that requires recordings and publication of a sale not in the normal course of business.
Horizontal in the township and section system
The gradual buildup of land by natural causes ( generally by action of water )

16. Major repairs in the past 5 years ( house for sale )...
ALTA - The association that developed an extended-coverage policy of title insurance for lenders ( same coverage available to buyers )
Must be disclosed to the buyer if
Joint tenants have: unity of time - unity of title - unity of interest - unity of possession
Part of the Business and Professions Code covering loan costs - commissions - and payment requirements relating to loan brokerage activity.

17. Bundle of rights
Promise for a promise.
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
Federal National Mortgage Association
All beneficial rights that go with ownership of real property

18. Burden of proof
For Sale By Owners
that he is acting as an optionor
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.
The party required to prove a fact when an issue is in dispute

19. Deposits from clients must be placed in a brokers trust fund
Within 3 days from acceptance of the offer (this must happen)
One who represents another in an agency relationship.
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.
Simultaneous ownership of a given piece of property by two or more persons - Tenancy in common; Joint tenancy; and Community property.

20. Federal Fair Housing Act - Title VIII of the Civil Rights Act of 1968
Changes in escrow instructions - which require the agreement of both the buyer and seller.
36 individual square miles or 640 acres.
All-encompassing set of rules prohibiting discrimination on the part of owners of real property and their agents. This law applies to all sales or rentals of residences through the facilities of real estate licensees and to publication - posting - ma
Federal Home Loan Mortgage Corporation

21. A valid deed does not have to contain

22. Blockbusting
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
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
Inducing panic selling based on fear of the entry of persons of another race - color - religion - or ancestry into the area.
is deeded to the county

23. Fully amortized loan
A prejudgment lien that can be obtained to ensure the availability of property for execution after a judgment is obtained.
An advertisement that fails to reveal that the advertiser is an agent and not a principal
A formal declaration of the truthfulness of a statement - given in lieu of a verification.
A loan to be completely repaid - principal and interest - by a series of regular equal installment payments

24. REIT
An act that requires recordings and publication of a sale not in the normal course of business.
A covenant under which an owner is required to do something - such as build within a stated period of time.
Attempt to establish a firm's identity to the public
Real Estate Investment Trust

25. Affirmative covenant
Prohibits discrimination in a place of public accommodation based on an individual's physical or mental disabilities.
For Sale By Owners
Failure to comply with a material term or provision of a contract
A covenant under which an owner is required to do something - such as build within a stated period of time.

26. Bankruptcy
Truth in Lending Act - Implemented by Regulation Z set by the Federal Trade Commission
A copy of all recorded documents dealing with a property. Attorneys give title opinions based on abstracts.
Copies of all listings - deposit receipts - canceled checks - and trust records must be retained by a licensed real estate broker
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.

27. Encumbrance

28. Agent
One who represents another in an agency relationship.
All beneficial rights that go with ownership of real property
Real Estate Equity Trust
Grid horizontal lines (US Government and township)

29. Beneficiary
The gradual buildup of land by natural causes ( generally by action of water )
Lender (or seller) in a trust deed loan situation
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.
Advance payments made to an agent to cover expected cash outlays in carrying out the agency.

30. Ranges
The gradual buildup of land by natural causes ( generally by action of water )
Grid of vertical lines (US Government and township)
Commission is only controlled by law under two situations. One being the Real Property Loan Law and...
Time tested model used in writing ads - Attention - Interest - Desire - Action

31. OLDCAR
The Fiduciary Duty owed to a principal (seller) by the Agent (broker) obedience - loyalty - disclosure - confidentiality - accountability - reasonable use of (skill - training - experience - competency)
Statement by beneficiary as to balance due on loan.
Alternative Minimum Tax - requires taxpayers - who make above a certain amount of gross income to - to figure taxes twice.
Property owned by husband and wife

32. Abstract of title
Tests for a fixture - Method of attachment - Adaptability for normal use -Relationship of the parties - Intent of the placement of the item - Agreement of parties
A note that will liquidate itself over its term in equal installments
A statement from the court of the judgment. When recorded - it becomes a general lien on all of the debtor's property in the county where recorded
A copy of all recorded documents dealing with a property. Attorneys give title opinions based on abstracts.

33. Antimerger clause
All beneficial rights that go with ownership of real property
Commission is only controlled by law under two situations. One being If property is sold while in probate and...
A clause in a mortgage or trust deed that the senior lienholder will retain lien priority in the event of a merger.
Transfer of all interest in a contract or lease.

34. Functional obsolescence
Zoning for beauty or appearance. Appearance of zone may have a pattern in architecture - colors - and styles.
Alternative Minimum Tax - requires taxpayers - who make above a certain amount of gross income to - to figure taxes twice.
Changes in escrow instructions - which require the agreement of both the buyer and seller.
Loss of value due to adverse factors within a structure that affect the marketability of the property.

35. Bilateral contract - p4p
Changes in escrow instructions - which require the agreement of both the buyer and seller.
By recorded map; by U. S. Government section and township; and by metes and bounds
A formal declaration of the truthfulness of a statement - given in lieu of a verification.
Promise for a promise.

36. Examples functional obsolescence
The Fiduciary Duty owed to a principal (seller) by the Agent (broker) obedience - loyalty - disclosure - confidentiality - accountability - reasonable use of (skill - training - experience - competency)
All-encompassing set of rules prohibiting discrimination on the part of owners of real property and their agents. This law applies to all sales or rentals of residences through the facilities of real estate licensees and to publication - posting - ma
Within 3 days from acceptance of the offer (this must happen)
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

37. Real property is synonymous with...
Transfer of all rights under a contract to a third party. Assignor remains secondarily liability.
An agreement to accept a lesser consideration than bargained for based on disagreement over performance.
Real Estate Equity Trust
real estate

38. Bulk Sales Act
Legal relationship under which an agent represents another - or principal - in dealings with third parties.
An action to remove a nuisance
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
An act that requires recordings and publication of a sale not in the normal course of business.

39. CE+3
Buyer to take possession 3 days after the close of escrow
An agreement specifying activities for which the agent is to be compensated. It would include provisions for an advance payment of fees.
The revocation of a specific property grant in a will by disposing of said property prior to death.
A statement made before a notary or court officer that the signing of a document was the signer's own free act.

40. Assignment of lease
Foreign Investments in Real Property Tax Act
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
An advertisement that fails to reveal that the advertiser is an agent and not a principal
Financial Institute Reform - Recovery - and Enforcement Act of 1989

41. Adam E Lee
Failure to comply with a material term or provision of a contract
Real Estate Equity Trust
A prejudgment lien that can be obtained to ensure the availability of property for execution after a judgment is obtained.
8 Ways to terminate an easement Abandonment - Destruction - Adverse Possession - Merger - Express Agreement - Lawsuit - Estoppel - Excessive use

42. Administrative Procedure Act
Negotiable commission for residential
A procedural act that must be complied with prior to revocation - suspension - or denial of a real estate license.
The party required to prove a fact when an issue is in dispute
An acknowledgment of the grantor's signature

43. Recording Act of California
Real Estate Equity Trust
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
Licensed real estate agent who can deal directly with principals and employ licensed real estate salepersons
After being acknowledged - any instrument or judgment affecting the title to or possession of real property may be recorded

44. Acknowledgment

45. FTC
Loss in value from any cause? is a common definition
Federal Trade Commission
An agreement specifying activities for which the agent is to be compensated. It would include provisions for an advance payment of fees.
that he is acting as an optionor

46. Assignment of contract
Transfer of all rights under a contract to a third party. Assignor remains secondarily liability.
A copy of all recorded documents dealing with a property. Attorneys give title opinions based on abstracts.
Government National Mortgage Association
Multiple Listing Service

47. Township
Zoning for density with open-space requirements as well as setback - parking - and height restrictions
Government National Mortgage Association
Department of Housing and Urban Development
36 individual square miles or 640 acres.

48. 'As is'
Competitive Market Analysis
Grid of vertical lines (US Government and township)
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.
A formal declaration of the truthfulness of a statement - given in lieu of a verification.

49. Attachment
Created in 1934 to provide mortgage insurance on loans made by FHA - approved lenders - part of HUD
A prejudgment lien that can be obtained to ensure the availability of property for execution after a judgment is obtained.
The sudden removal of land by action of water - such as a river changing course.
A group of people within a geographical area with whom the agent stays in touch monthly - advising each property owner of all real estate activities throughout the year

50. GNMA
A note that will liquidate itself over its term in equal installments
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
A statement made before a notary or court officer that the signing of a document was the signer's own free act.
Government National Mortgage Association