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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. Amendments to the escrow instructions
Changes in escrow instructions - which require the agreement of both the buyer and seller.
Provides for project approval in close proximity to earthquake faults - as well as disclosures to buyers.
A copy of all recorded documents dealing with a property. Attorneys give title opinions based on abstracts.
Loss of value due to adverse factors within a structure that affect the marketability of the property.

2. Accretion
The gradual buildup of land by natural causes ( generally by action of water )
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.
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
The seller's signature

3. Agency by estoppel

4. The Recovery Account
A fee for rental information accepted in advance - or a promotional fee for a sale listing.
Offer the seller suggestions on ways to show a home for maximum positive first impression
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
Government National Mortgage Association

5. Real Property Loan Law
For Sale By Owners
Commission is only controlled by law under two situations. One being If property is sold while in probate and...
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
Cconsists of all property acquired by a husband and wife - or either - during a valid marriage - other than separate property

6. FHLMC
Any loss of value due to conditions outside of the property itself. aka social obsolescence
Federal Home Loan Mortgage Corporation
8 Ways to terminate an easement Abandonment - Destruction - Adverse Possession - Merger - Express Agreement - Lawsuit - Estoppel - Excessive use
All beneficial rights that go with ownership of real property

7. Economic obsolescence
A covenant under which an owner is required to do something - such as build within a stated period of time.
Ownership by one person
One broker
Any loss of value due to conditions outside of the property itself. aka social obsolescence

8. American Land Title Association
that he is acting as an optionor
Loss of value due to adverse factors within a structure that affect the marketability of the property.
ALTA - The association that developed an extended-coverage policy of title insurance for lenders ( same coverage available to buyers )
Offer the seller suggestions on ways to show a home for maximum positive first impression

9. Joint tenancy - TTIP
All beneficial rights that go with ownership of real property
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
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
An acknowledgment of the grantor's signature

10. 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.
Commission is only controlled by law under two situations. One being the Real Property Loan Law and...
Instrument used to secure a loan on personal property is called
Within 3 days from acceptance of the offer (this must happen)

11. After-acquired title
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 )
A person appointed as an agent under a power of attorney
A mutual exchange of promises.

12. CoCa CoLa
Part of the Business and Professions Code governing transactions in trust deeds and real property sales contracts
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
Elements of a contract - mutual COnsent - CApacity - COnsideration - LAwful purpose ( must be in writing )
that he is acting as an optionor

13. MARIA
Agency in which an agent has a financial interest in the subject matter of the agency.
Created in 1934 to provide mortgage insurance on loans made by FHA - approved lenders - part of HUD
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
Personal property transferred by will

14. FTC
Transfer of all interest in a contract or lease.
Deed from trustee to trustor - at the request of the beneficiary of trust (lender) - that returns title to the trustor on payment of indebtedness
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.
Federal Trade Commission

15. Abstract of judgment

16. Budle of rights - 5 things

17. vendor (term in real estate)
Created in 1934 to provide mortgage insurance on loans made by FHA - approved lenders - part of HUD
In a legal sales contract - the seller is often referred to as the
Promise for a promise.
Changes in escrow instructions - which require the agreement of both the buyer and seller.

18. Real property is synonymous with...
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
real estate
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.
The Broker is the Agent of the seller. The salesperson is the

19. Avulsion
Real Estate Settlement Procedures Act - requires special information booklet - requires good faith estimate - requires uniform settlement statement
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
A statement made before a notary or court officer that the signing of a document was the signer's own free act.
The sudden removal of land by action of water - such as a river changing course.

20. 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
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
Real Estate Educators Association
A procedural act that must be complied with prior to revocation - suspension - or denial of a real estate license.

21. Antimerger clause
A clause in a mortgage or trust deed that the senior lienholder will retain lien priority in the event of a merger.
36 individual square miles or 640 acres.
The seller's signature
Grid of vertical lines (US Government and township)

22. What trust deeds in California are called..
An acknowledgment of the grantor's signature
Mortgages in California
A note that will liquidate itself over its term in equal installments
The Fiduciary Duty owed to a principal (seller) by the Agent (broker) obedience - loyalty - disclosure - confidentiality - accountability - reasonable use of (skill - training - experience - competency)

23. FIRREA
Ownership by one person
Financial Institute Reform - Recovery - and Enforcement Act of 1989
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
A government agency that makes rules and regulations to carry out the law.

24. Percentage lease

25. Attractive nuisance doctrine
Principal + Interest + Monthly taxes and insurance + homeowners assoc. fee = 25% - 30% gross monthly income
An owner has a duty to reasonably protect children from injury when the premises are likely to attract children.
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
1 square mile

26. Joists
Real Estate Educators Association
Joint ownership of real property by two or more persons - each of whom has an undivided interest (not necessarily equal) without right of survivorship
Parallel wooden members used to support floor and ceiling loads are called
Instrument used to secure a loan on personal property is called

27. Bundle of rights
Foreign Investments in Real Property Tax Act
All beneficial rights that go with ownership of real property
The sudden removal of land by action of water - such as a river changing course.
Real Estate Educators Association

28. Alquist-Priolo Special Studies Zone Act
Provides for project approval in close proximity to earthquake faults - as well as disclosures to buyers.
that he is acting as an optionor
Federal Home Loan Mortgage Corporation
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. 1 square mile =
Promise for a promise.
43560 square feet
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
Act of a party that can be treated as a breach of contract because it makes performance by that party impossible.

30. AMT
Lender (or seller) in a trust deed loan situation
Inducing panic selling based on fear of the entry of persons of another race - color - religion - or ancestry into the area.
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
Alternative Minimum Tax - requires taxpayers - who make above a certain amount of gross income to - to figure taxes twice.

31. Cloud on the title

32. Agent
One who represents another in an agency relationship.
Deed from trustee to trustor - at the request of the beneficiary of trust (lender) - that returns title to the trustor on payment of indebtedness
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
Advance payments made to an agent to cover expected cash outlays in carrying out the agency.

33. CMA
Competitive Market Analysis
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 act that requires recordings and publication of a sale not in the normal course of business.
Advance payments made to an agent to cover expected cash outlays in carrying out the agency.

34. Base lines
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
Grid horizontal lines (US Government and township)
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
Horizontal in the township and section system

35. 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)
One broker
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
Separate ownershi and Concurrent ownership; a. Tenancy in common; b. Joint tenancy; and c. Community property.

36. Administrator
A person appointed by the court to administer the estate of a deceased person.
One who represents another in an agency relationship.
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.
ALTA - The association that developed an extended-coverage policy of title insurance for lenders ( same coverage available to buyers )

37. Bait and switch
Cconsists of all property acquired by a husband and wife - or either - during a valid marriage - other than separate property
that he is acting as an optionor
36 individual square miles or 640 acres.
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

38. Separate property of a married person includes...
An action to remove a nuisance
A person appointed as an agent under a power of attorney
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 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

39. FIRPTA
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
Personal property transferred by will
Federal National Mortgage Association
Foreign Investments in Real Property Tax Act

40. Concurrent ownership or co-ownership
Simultaneous ownership of a given piece of property by two or more persons - Tenancy in common; Joint tenancy; and Community property.
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 statement made before a notary or court officer that the signing of a document was the signer's own free act.
An agency created by a principal's approving an unauthorized act of another.

41. A broker selling a property on which he holds an option should notify the purchaser...
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
that he is acting as an optionor
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
The Broker is the Agent of the seller. The salesperson is the

42. Assignment of lease
Real Estate Investment Trust
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.
is deeded to the county
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

43. Agency
Elements of a contract - mutual COnsent - CApacity - COnsideration - LAwful purpose ( must be in writing )
Legal relationship under which an agent represents another - or principal - in dealings with third parties.
After being acknowledged - any instrument or judgment affecting the title to or possession of real property may be recorded
For Sale By Owners

44. Advance costs
Personal property transferred by will
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
Statement by beneficiary as to balance due on loan.
Advance payments made to an agent to cover expected cash outlays in carrying out the agency.

45. PITI
By recorded map; by U. S. Government section and township; and by metes and bounds
Items used to qualify a buyer for the proper debt:income ratio. Usually 1/3 of gross income. principle - interest - taxes - insurance
Real Property Securities Dealer
The revocation of a specific property grant in a will by disposing of said property prior to death.

46. Housing Financial Discrimination Act of 1977 (Holden Act)
Licensed real estate agent who can deal directly with principals and employ licensed real estate salepersons
The buyer's agreeing to be primarily liable on the loan while the seller has secondary liability
Taxes based on value - such as property tax. ( Latin - according to value )
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

47. Ranges
Grid of vertical lines (US Government and township)
Notice that has been expressly given and is known to a party
Government National Mortgage Association
that he is acting as an optionor

48. Acceleration upon default
Commission is only controlled by law under two situations. One being If property is sold while in probate and...
All payments become due upon default of payment. In California - the debtor can cure the default by catching up on payments prior to foreclosure.
An agency created by a principal's approving an unauthorized act of another.
Simultaneous ownership of a given piece of property by two or more persons - Tenancy in common; Joint tenancy; and Community property.

49. MLS
Negotiable commission for residential
A formal declaration of the truthfulness of a statement - given in lieu of a verification.
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
Multiple Listing Service

50. Breach of contract
The revocation of a specific property grant in a will by disposing of said property prior to death.
Commission is only controlled by law under two situations. One being the Real Property Loan Law and...
Failure to comply with a material term or provision of a contract
Statement by beneficiary as to balance due on loan.