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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. Agent
1 square mile
Financial Institute Reform - Recovery - and Enforcement Act of 1989
One who represents another in an agency relationship.
National Association of Independent Fee Appraisers

2. Americans with Disabilities Act

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3. Advance costs
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.
Advance payments made to an agent to cover expected cash outlays in carrying out the agency.
Government National Mortgage Association
Must be disclosed to the buyer if

4. Agent of the broker
One who represents another in an agency relationship.
The Broker is the Agent of the seller. The salesperson is the
An agency created by a principal's approving an unauthorized act of another.
Buyer to take possession 3 days after the close of escrow

5. Federal Truth-in-Lending Law
Finance charge and annual percentage rate - Regulation Z
Real Estate Settlement Procedures Act - requires special information booklet - requires good faith estimate - requires uniform settlement statement
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
Created in 1934 to provide mortgage insurance on loans made by FHA - approved lenders - part of HUD

6. Open end mortgage
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.
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
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
Promise for a promise.

7. FSBO's
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
For Sale By Owners
Finance charge and annual percentage rate - Regulation Z
Vertical in the township and section system

8. Burden of proof
Department of Housing and Urban Development
The party required to prove a fact when an issue is in dispute
Foreign Investments in Real Property Tax Act
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.

9. Institutional advertising

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10. A tenancy in common
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.
Loss in value from any cause? is a common definition
Separate ownershi and Concurrent ownership; a. Tenancy in common; b. Joint tenancy; and c. Community property.
Joint ownership of real property by two or more persons - each of whom has an undivided interest (not necessarily equal) without right of survivorship

11. Balloon payment
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.
Transfer of all interest in a contract or lease.
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.
A final payment that is more than twice the amount of the lowest payment.

12. MARIA
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 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.
Real Property Securities Dealer
A note that will liquidate itself over its term in equal installments

13. Beneficiary statement
Statement by beneficiary as to balance due on loan.
Buyer to take possession 3 days after the close of escrow
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
An agreement specifying activities for which the agent is to be compensated. It would include provisions for an advance payment of fees.

14. Avulsion
Transfer of all interest in a contract or lease.
The sudden removal of land by action of water - such as a river changing course.
The party required to prove a fact when an issue is in dispute
Federal Trade Commission

15. Meridians
8 Ways to terminate an easement Abandonment - Destruction - Adverse Possession - Merger - Express Agreement - Lawsuit - Estoppel - Excessive use
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
Something that belongs to and goes with a property - such as structure and easement rights
Vertical in the township and section system

16. Affirmative easement
Easement that gives the dominant tenement owner the right to use the servient tenement.
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.
Finance charge and annual percentage rate - Regulation Z
A loan to be completely repaid - principal and interest - by a series of regular equal installment payments

17. Assumable loan
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.
Real Property Securities Dealer
A clause in a mortgage or trust deed that the senior lienholder will retain lien priority in the event of a merger.
The gradual buildup of land by natural causes ( generally by action of water )

18. Article 7
Owner assigns right to collect rent to another. Usually given to a lienholder when owner is delinquent in rent
An act that requires recordings and publication of a sale not in the normal course of business.
Person holding title to real property in severalty
Part of the Business and Professions Code covering loan costs - commissions - and payment requirements relating to loan brokerage activity.

19. Accord and satisfaction
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
Any loss of value due to conditions outside of the property itself. aka economic obsolescence
An agreement to accept a lesser consideration than bargained for based on disagreement over performance.
A covenant under which an owner is required to do something - such as build within a stated period of time.

20. HUD
Cconsists of all property acquired by a husband and wife - or either - during a valid marriage - other than separate property
A final payment that is more than twice the amount of the lowest payment.
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
Department of Housing and Urban Development

21. Advance fee
Provides for rent as a percentage of the tenants' gross income ( gross sales )
A fee for rental information accepted in advance - or a promotional fee for a sale listing.
NE - North East
All payments become due upon default of payment. In California - the debtor can cure the default by catching up on payments prior to foreclosure.

22. Broker's loan statement
A disclosure statement given to borrowers by mortgage loan brokers that provides information on all costs - fees - and loan terms.
Loss of value due to adverse factors within a structure that affect the marketability of the property.
Federal Home Loan Mortgage Corporation
A formal declaration of the truthfulness of a statement - given in lieu of a verification.

23. Real property is synonymous with...
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
real estate
Department of Housing and Urban Development
Ownership by one person

24. Joists
Use of personal property to secure or guarantee a promissory note.
Parallel wooden members used to support floor and ceiling loads are called
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
Elements of a contract - mutual COnsent - CApacity - COnsideration - LAwful purpose ( must be in writing )

25. TTIP
8 Ways to terminate an easement Abandonment - Destruction - Adverse Possession - Merger - Express Agreement - Lawsuit - Estoppel - Excessive use
Joint tenants have: unity of time - unity of title - unity of interest - unity of possession
Transfer of all interest in a contract or lease.
An advertisement that fails to reveal that the advertiser is an agent and not a principal

26. Encumbrance

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27. Attorney-in-fact
Easement that gives the dominant tenement owner the right to use the servient tenement.
Changes in escrow instructions - which require the agreement of both the buyer and seller.
A person appointed as an agent under a power of attorney
Nonjudicial process for resolution of disputes either by agreement or mandated by law.

28. California has three sets of base lines and meridian
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
A statement made before a notary or court officer that the signing of a document was the signer's own free act.
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.
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

29. Salesperson can only work for...
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
An agreement to accept a lesser consideration than bargained for based on disagreement over performance.
One broker
Any loss of value due to conditions outside of the property itself. aka social obsolescence

30. Actual notice
Notice that has been expressly given and is known to a party
Failure to comply with a material term or provision of a contract
Commission is only controlled by law under two situations. One being If property is sold while in probate and...
A change made to a note or contract by one of the parties without the consent of the other.

31. Abstract of title
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 statement made before a notary or court officer that the signing of a document was the signer's own free act.
Part of the Business and Professions Code governing transactions in trust deeds and real property sales contracts
A copy of all recorded documents dealing with a property. Attorneys give title opinions based on abstracts.

32. NAIFA
National Association of Independent Fee Appraisers
Agency in which an agent has a financial interest in the subject matter of the agency.
Real Estate Equity Trust
One broker

33. Article 5
Part of the Business and Professions Code governing transactions in trust deeds and real property sales contracts
A prejudgment lien that can be obtained to ensure the availability of property for execution after a judgment is obtained.
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.
1 square mile

34. amortized note
A note that will liquidate itself over its term in equal installments
Cconsists of all property acquired by a husband and wife - or either - during a valid marriage - other than separate property
Real Property Securities Dealer
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

35. 3 years - broker documents
An agreement specifying activities for which the agent is to be compensated. It would include provisions for an advance payment of fees.
Copies of all listings - deposit receipts - canceled checks - and trust records must be retained by a licensed real estate broker
Person holding title to real property in severalty
Elements of a contract - mutual COnsent - CApacity - COnsideration - LAwful purpose ( must be in writing )

36. Administrative agency
A formal declaration of the truthfulness of a statement - given in lieu of a verification.
An acknowledgment of the grantor's signature
real estate
A government agency that makes rules and regulations to carry out the law.

37. Trust Deed
Principal + Interest + Monthly taxes and insurance + homeowners assoc. fee = 25% - 30% gross monthly income
1 square mile
Items used to qualify a buyer for the proper debt:income ratio. Usually 1/3 of gross income. principle - interest - taxes - insurance
Instrument used to secure a loan on personal property is called

38. FIRPTA
Foreign Investments in Real Property Tax Act
The seller's signature
Parallel wooden members used to support floor and ceiling loads are called
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

39. Which corner does the township numbering system start in?
A note that will liquidate itself over its term in equal installments
Foreign Investments in Real Property Tax Act
By recorded map; by U. S. Government section and township; and by metes and bounds
NE - North East

40. Tenancy in common
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
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
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.
Any loss of value due to conditions outside of the property itself. aka social obsolescence

41. Assignment of rent
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 government agency that makes rules and regulations to carry out the law.
Real Estate Investment Trust
Owner assigns right to collect rent to another. Usually given to a lienholder when owner is delinquent in rent

42. The Recovery Account
Elements of a contract - mutual COnsent - CApacity - COnsideration - LAwful purpose ( must be in writing )
A final payment that is more than twice the amount of the lowest payment.
Transfer of all interest in a contract or lease.
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

43. Anticipatory breach
Law prohibits discrimination in supplying housing accommodations because of race - color - religion - sex - marital status - national origin - ancestry - age - familial status or disability.
An act that requires recordings and publication of a sale not in the normal course of business.
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.
Act of a party that can be treated as a breach of contract because it makes performance by that party impossible.

44. Bilateral contract - p4p
Use of personal property to secure or guarantee a promissory note.
A fee for rental information accepted in advance - or a promotional fee for a sale listing.
An advertisement that fails to reveal that the advertiser is an agent and not a principal
Promise for a promise.

45. Farm
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
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.
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.
Personal property transferred by will

46. Federal Housing Administration - role
Taxes based on value - such as property tax. ( Latin - according to value )
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
Created in 1934 to provide mortgage insurance on loans made by FHA - approved lenders - part of HUD
Lender (or seller) in a trust deed loan situation

47. American Land Title Association
Provides for project approval in close proximity to earthquake faults - as well as disclosures to buyers.
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 method to acquire title. It requires five-year - open - notorious - uninterrupted use under some claim of right - and the payment of taxes.
ALTA - The association that developed an extended-coverage policy of title insurance for lenders ( same coverage available to buyers )

48. Adam E Lee
8 Ways to terminate an easement Abandonment - Destruction - Adverse Possession - Merger - Express Agreement - Lawsuit - Estoppel - Excessive use
For Sale By Owners
Competitive Market Analysis
Ownership by one person

49. AIDA
A quitclaim deed conveys only the present right - title and interest of the
In a legal sales contract - the seller is often referred to as the
Ownership by one person
Time tested model used in writing ads - Attention - Interest - Desire - Action

50. Deposits from clients must be placed in a brokers trust fund
A quitclaim deed conveys only the present right - title and interest of the
Within 3 days from acceptance of the offer (this must happen)
Something that belongs to and goes with a property - such as structure and easement rights
Sales prices of comparable properties