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California Real Estate Test

Instructions:

Answer 50 questions in 15 minutes.
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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. Bankruptcy
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.
In a legal sales contract - the seller is often referred to as the
The sudden removal of land by action of water - such as a river changing course.
Statement of the actual settlement costs. Provided by US Dept of HUD.

2. Bequest
A procedural act that must be complied with prior to revocation - suspension - or denial of a real estate license.
Personal property transferred by will
Buyer to take possession 3 days after the close of escrow
Fund of last resort for a member of the public who has obtained a final civil judgment or criminal restitution order against a real estate licensee based on fraud or certain other grounds and who has been unable to satisfy the judgment through the no

3. FIRPTA
Foreign Investments in Real Property Tax Act
National Association of Independent Fee Appraisers
Federal Home Loan Mortgage Corporation
Separate ownershi and Concurrent ownership; a. Tenancy in common; b. Joint tenancy; and c. Community property.

4. Article 5
Part of the Business and Professions Code governing transactions in trust deeds and real property sales contracts
Real Estate Investment Trust
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
1 square mile

5. 43560 square feet =
1 square mile
Property owned by husband and wife
Parallel wooden members used to support floor and ceiling loads are called
A government agency that makes rules and regulations to carry out the law.

6. Fully amortized loan
The revocation of a specific property grant in a will by disposing of said property prior to death.
Law prohibits discrimination in supplying housing accommodations because of race - color - religion - sex - marital status - national origin - ancestry - age - familial status or disability.
Advance payments made to an agent to cover expected cash outlays in carrying out the agency.
A loan to be completely repaid - principal and interest - by a series of regular equal installment payments

7. REET
1 square mile
Property owned by husband and wife
Real Estate Equity Trust
Transfer of all rights under a contract to a third party. Assignor remains secondarily liability.

8. Township
One who represents another in an agency relationship.
Any loss of value due to conditions outside of the property itself. aka economic obsolescence
Grid horizontal lines (US Government and township)
Statement by beneficiary as to balance due on loan.

9. depreciation
Any loss of value due to conditions outside of the property itself. aka social obsolescence
Loss in value from any cause? is a common definition
Finance charge and annual percentage rate - Regulation Z
Character - how a person has handled past debt obligations - Capacity - how much debt a borrower can comfortably handle - Capital - current available assets of the borrower

10. Three most common methods of describing property
By recorded map; by U. S. Government section and township; and by metes and bounds
Vertical in the township and section system
An action to remove a nuisance
One who represents another in an agency relationship.

11. 'As is'
An agency created by a principal's approving an unauthorized act of another.
Elements of a contract - mutual COnsent - CApacity - COnsideration - LAwful purpose ( must be in writing )
Vertical in the township and section system
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.

12. Chattel mortgag
Use of personal property to secure or guarantee a promissory note.
Attempt to establish a firm's identity to the public
An agency created by a principal's approving an unauthorized act of another.
Federal National Mortgage Association

13. FSBO's
For Sale By Owners
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
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
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

14. Examples functional obsolescence
Zoning for density with open-space requirements as well as setback - parking - and height restrictions
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.
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
Commission is only controlled by law under two situations. One being If property is sold while in probate and...

15. Breach of contract
Failure to comply with a material term or provision of a contract
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
Any loss of value due to conditions outside of the property itself. aka economic obsolescence
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

16. 3 years - broker documents
Copies of all listings - deposit receipts - canceled checks - and trust records must be retained by a licensed real estate broker
The gradual buildup of land by natural causes ( generally by action of water )
Failure to comply with a material term or provision of a contract
Commission is only controlled by law under two situations. One being the Real Property Loan Law and...

17. 1 square mile =
One broker
43560 square feet
Agency in which an agent has a financial interest in the subject matter of the agency.
Vertical in the township and section system

18. NAIFA
National Association of Independent Fee Appraisers
Provides for project approval in close proximity to earthquake faults - as well as disclosures to buyers.
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
An acknowledgment of the grantor's signature

19. Uniform Settlement Statement
Statement of the actual settlement costs. Provided by US Dept of HUD.
Provides for project approval in close proximity to earthquake faults - as well as disclosures to buyers.
Within 3 days from acceptance of the offer (this must happen)
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

20. Federal Fair Housing Act - Title VIII of the Civil Rights Act of 1968
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
1 square mile
Joint tenants have: unity of time - unity of title - unity of interest - unity of possession
Real Estate Mortgage Trust

21. Acceleration upon default
All payments become due upon default of payment. In California - the debtor can cure the default by catching up on payments prior to foreclosure.
For Sale By Owners
Cconsists of all property acquired by a husband and wife - or either - during a valid marriage - other than separate property
36 individual square miles or 640 acres.

22. Cloud on the title
The revocation of a specific property grant in a will by disposing of said property prior to death.
A fee for rental information accepted in advance - or a promotional fee for a sale listing.
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
Parallel wooden members used to support floor and ceiling loads are called

23. Agent of the broker
A copy of all recorded documents dealing with a property. Attorneys give title opinions based on abstracts.
The Broker is the Agent of the seller. The salesperson is the
Items used to qualify a buyer for the proper debt:income ratio. Usually 1/3 of gross income. principle - interest - taxes - insurance
Foreign Investments in Real Property Tax Act

24. MLS
Something that belongs to and goes with a property - such as structure and easement rights
Provides for project approval in close proximity to earthquake faults - as well as disclosures to buyers.
Agency in which an agent has a financial interest in the subject matter of the agency.
Multiple Listing Service

25. Acknowledgment
Title or interest acquired by the grantor after property has been conveyed.
A statement made before a notary or court officer that the signing of a document was the signer's own free act.
Federal Trade Commission
ALTA - The association that developed an extended-coverage policy of title insurance for lenders ( same coverage available to buyers )

26. Assuming a loa
The buyer's agreeing to be primarily liable on the loan while the seller has secondary liability
A covenant under which an owner is required to do something - such as build within a stated period of time.
A method to acquire title. It requires five-year - open - notorious - uninterrupted use under some claim of right - and the payment of taxes.
Part of the Business and Professions Code covering loan costs - commissions - and payment requirements relating to loan brokerage activity.

27. Attorney-in-fact
A person appointed as an agent under a power of attorney
Mortgages in California
Department of Housing and Urban Development
Elements of a contract - mutual COnsent - CApacity - COnsideration - LAwful purpose ( must be in writing )

28. Functional obsolescence
Parallel wooden members used to support floor and ceiling loads are called
Loss of value due to adverse factors within a structure that affect the marketability of the property.
Title or interest acquired by the grantor after property has been conveyed.
Provides for rent as a percentage of the tenants' gross income ( gross sales )

29. Deed of reconveyance
An act that requires recordings and publication of a sale not in the normal course of business.
Multiple Listing Service
Deed from trustee to trustor - at the request of the beneficiary of trust (lender) - that returns title to the trustor on payment of indebtedness
1 square mile

30. Assignment of contract
Alternative Minimum Tax - requires taxpayers - who make above a certain amount of gross income to - to figure taxes twice.
1 square mile
Transfer of all rights under a contract to a third party. Assignor remains secondarily liability.
A procedural act that must be complied with prior to revocation - suspension - or denial of a real estate license.

31. Social obsolescence
Any loss of value due to conditions outside of the property itself. aka social obsolescence
The party required to prove a fact when an issue is in dispute
Any loss of value due to conditions outside of the property itself. aka economic obsolescence
Right of Possession - Right of enjoyment of the property - Right to control the property's use - Right to exclude others from the property - Right to dispose of the property.

32. Blind ad
real estate
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.
An agency created by a principal's approving an unauthorized act of another.
An advertisement that fails to reveal that the advertiser is an agent and not a principal

33. Which corner does the township numbering system start in?
NE - North East
Ownership by one person
A mutual exchange of promises.
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

34. Bundle of rights
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
Zoning for density with open-space requirements as well as setback - parking - and height restrictions
All beneficial rights that go with ownership of real property
Loss in value from any cause? is a common definition

35. Article 7
Part of the Business and Professions Code covering loan costs - commissions - and payment requirements relating to loan brokerage activity.
Principal + Interest + Monthly taxes and insurance + homeowners assoc. fee = 25% - 30% gross monthly income
Licensed real estate agent who can deal directly with principals and employ licensed real estate salepersons
Title or interest acquired by the grantor after property has been conveyed.

36. MARIA
The Fiduciary Duty owed to a principal (seller) by the Agent (broker) obedience - loyalty - disclosure - confidentiality - accountability - reasonable use of (skill - training - experience - competency)
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
Inducing panic selling based on fear of the entry of persons of another race - color - religion - or ancestry into the area.
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

37. Broker
Owner assigns right to collect rent to another. Usually given to a lienholder when owner is delinquent in rent
For Sale By Owners
Licensed real estate agent who can deal directly with principals and employ licensed real estate salepersons
Instrument used to secure a loan on personal property is called

38. Aesthetic zoning
Zoning for beauty or appearance. Appearance of zone may have a pattern in architecture - colors - and styles.
The party required to prove a fact when an issue is in dispute
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.
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

39. If property is sold while in probate
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
Use of personal property to secure or guarantee a promissory note.
Must be disclosed to the buyer if

40. Attractive nuisance doctrine
Foreign Investments in Real Property Tax Act
An advertisement that fails to reveal that the advertiser is an agent and not a principal
An agreement to accept a lesser consideration than bargained for based on disagreement over performance.
An owner has a duty to reasonably protect children from injury when the premises are likely to attract children.

41. RPSD
Created in 1934 to provide mortgage insurance on loans made by FHA - approved lenders - part of HUD
Real Property Securities Dealer
Zoning for density with open-space requirements as well as setback - parking - and height restrictions
Negotiable commission for residential

42. Bilateral contract - p4p
is deeded to the county
Loss in value from any cause? is a common definition
Promise for a promise.
43560 square feet

43. Major repairs in the past 5 years ( house for sale )...
Must be disclosed to the buyer if
Grid horizontal lines (US Government and township)
Alternative Minimum Tax - requires taxpayers - who make above a certain amount of gross income to - to figure taxes twice.
Parallel wooden members used to support floor and ceiling loads are called

44. Ownership of real property
The seller's signature
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
Separate ownershi and Concurrent ownership; a. Tenancy in common; b. Joint tenancy; and c. Community property.
Instrument used to secure a loan on personal property is called

45. Percentage lease
Federal Home Loan Mortgage Corporation
Provides for rent as a percentage of the tenants' gross income ( gross sales )
Within 3 days from acceptance of the offer (this must happen)
NE - North East

46. Arbitration
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
Real Estate Investment Trust
Nonjudicial process for resolution of disputes either by agreement or mandated by law.
One broker

47. FIRREA
Zoning for beauty or appearance. Appearance of zone may have a pattern in architecture - colors - and styles.
Financial Institute Reform - Recovery - and Enforcement Act of 1989
A change made to a note or contract by one of the parties without the consent of the other.
Real Estate Investment Trust

48. Ademption
The revocation of a specific property grant in a will by disposing of said property prior to death.
1 square mile
NE - North East
Property owned by husband and wife

49. FHLMC
Any loss of value due to conditions outside of the property itself. aka social obsolescence
Zoning for density with open-space requirements as well as setback - parking - and height restrictions
Federal Home Loan Mortgage Corporation
is deeded to the county

50. Beneficiary
One who represents another in an agency relationship.
For Sale By Owners
Lender (or seller) in a trust deed loan situation
A government agency that makes rules and regulations to carry out the law.

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