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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. Open end mortgage
Principal + Interest + Monthly taxes and insurance + homeowners assoc. fee = 25% - 30% gross monthly income
Title or interest acquired by the grantor after property has been conveyed.
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-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

2. Antimerger clause
A clause in a mortgage or trust deed that the senior lienholder will retain lien priority in the event of a merger.
Horizontal in the township and section system
Finance charge and annual percentage rate - Regulation Z
Inducing panic selling based on fear of the entry of persons of another race - color - religion - or ancestry into the area.

3. Separate property of a married person includes...
Lender (or seller) in a trust deed loan situation
real estate
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
Real Property Securities Dealer

4. Agency by estoppel

5. Administrative Procedure Act
A quitclaim deed conveys only the present right - title and interest of the
1 square mile
A procedural act that must be complied with prior to revocation - suspension - or denial of a real estate license.
One broker

6. Meridians
An agreement to accept a lesser consideration than bargained for based on disagreement over performance.
Failure to comply with a material term or provision of a contract
Vertical in the township and section system
Real Estate Investment Trust

7. After-acquired title
Sales prices of comparable properties
The party required to prove a fact when an issue is in dispute
A person appointed as an agent under a power of attorney
Title or interest acquired by the grantor after property has been conveyed.

8. REEA
A contract based on an illegal consideration
Provides for project approval in close proximity to earthquake faults - as well as disclosures to buyers.
Real Estate Investment Trust
Real Estate Educators Association

9. Ranges
Grid of vertical lines (US Government and township)
The revocation of a specific property grant in a will by disposing of said property prior to death.
The Fiduciary Duty owed to a principal (seller) by the Agent (broker) obedience - loyalty - disclosure - confidentiality - accountability - reasonable use of (skill - training - experience - competency)
Principal + Interest + Monthly taxes and insurance + homeowners assoc. fee = 25% - 30% gross monthly income

10. Ademption
Transfer of all interest in a contract or lease.
The revocation of a specific property grant in a will by disposing of said property prior to death.
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
Owner assigns right to collect rent to another. Usually given to a lienholder when owner is delinquent in rent

11. Assignment
Buyer to take possession 3 days after the close of escrow
NE - North East
Transfer of all interest in a contract or lease.
Act of a party that can be treated as a breach of contract because it makes performance by that party impossible.

12. Advance costs
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
Advance payments made to an agent to cover expected cash outlays in carrying out the agency.
Real Estate Settlement Procedures Act - requires special information booklet - requires good faith estimate - requires uniform settlement statement
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.

13. Federal Truth-in-Lending Law
Zoning for density with open-space requirements as well as setback - parking - and height restrictions
36 individual square miles or 640 acres.
Law prohibits discrimination in supplying housing accommodations because of race - color - religion - sex - marital status - national origin - ancestry - age - familial status or disability.
Finance charge and annual percentage rate - Regulation Z

14. Bundle of rights
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
Licensed real estate agent who can deal directly with principals and employ licensed real estate salepersons
All beneficial rights that go with ownership of real property

15. Liquidated damages
The revocation of a specific property grant in a will by disposing of said property prior to death.
Legal relationship under which an agent represents another - or principal - in dealings with third parties.
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 Fiduciary Duty owed to a principal (seller) by the Agent (broker) obedience - loyalty - disclosure - confidentiality - accountability - reasonable use of (skill - training - experience - competency)

16. Bequest
Personal property transferred by will
A clause in a mortgage or trust deed that the senior lienholder will retain lien priority in the event of a merger.
The sudden removal of land by action of water - such as a river changing course.
A covenant under which an owner is required to do something - such as build within a stated period of time.

17. Staging
Real Estate Settlement Procedures Act - requires special information booklet - requires good faith estimate - requires uniform settlement statement
Offer the seller suggestions on ways to show a home for maximum positive first impression
43560 square feet
36 individual square miles or 640 acres.

18. Examples functional obsolescence
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 disclosure statement given to borrowers by mortgage loan brokers that provides information on all costs - fees - and loan terms.
is deeded to the county
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

19. MLS
Multiple Listing Service
Statement by beneficiary as to balance due on loan.
ALTA - The association that developed an extended-coverage policy of title insurance for lenders ( same coverage available to buyers )
A formal declaration of the truthfulness of a statement - given in lieu of a verification.

20. RPSD
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
Real Property Securities Dealer
Grid of vertical lines (US Government and township)
Promise for a promise.

21. Assuming a loa

22. Real Property Loan Law
The gradual buildup of land by natural causes ( generally by action of water )
Commission is only controlled by law under two situations. One being If property is sold while in probate and...
In a legal sales contract - the seller is often referred to as the
Real Estate Investment Trust

23. Percentage lease

24. Township
Ownership by one person
Alternative Minimum Tax - requires taxpayers - who make above a certain amount of gross income to - to figure taxes twice.
Commission is only controlled by law under two situations. One being the Real Property Loan Law and...
Grid horizontal lines (US Government and township)

25. Housing Financial Discrimination Act of 1977 (Holden Act)
A covenant under which an owner is required to do something - such as build within a stated period of time.
Real Property Securities Dealer
National Association of Independent Fee Appraisers
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

26. Ad valorum taxes
Something that belongs to and goes with a property - such as structure and easement rights
Taxes based on value - such as property tax. ( Latin - according to value )
An agreement specifying activities for which the agent is to be compensated. It would include provisions for an advance payment of fees.
Lender (or seller) in a trust deed loan situation

27. FTC
8 Ways to terminate an easement Abandonment - Destruction - Adverse Possession - Merger - Express Agreement - Lawsuit - Estoppel - Excessive use
Federal Trade Commission
A mortgage or trust deed covering more than one 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

28. Advance fee addendum
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 agreement specifying activities for which the agent is to be compensated. It would include provisions for an advance payment of fees.
Attempt to establish a firm's identity to the public
Government National Mortgage Association

29. Anticipatory breach
8 Ways to terminate an easement Abandonment - Destruction - Adverse Possession - Merger - Express Agreement - Lawsuit - Estoppel - Excessive use
Act of a party that can be treated as a breach of contract because it makes performance by that party impossible.
A clause in a mortgage or trust deed that the senior lienholder will retain lien priority in the event of a merger.
Advance payments made to an agent to cover expected cash outlays in carrying out the agency.

30. 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
Elements of a contract - mutual COnsent - CApacity - COnsideration - LAwful purpose ( must be in writing )
Cconsists of all property acquired by a husband and wife - or either - during a valid marriage - other than separate property
A change made to a note or contract by one of the parties without the consent of the other.

31. Attorney-in-fact
Time tested model used in writing ads - Attention - Interest - Desire - Action
A person appointed as an agent under a power of attorney
Principal + Interest + Monthly taxes and insurance + homeowners assoc. fee = 25% - 30% gross monthly income
Horizontal in the township and section system

32. Township
Federal Trade Commission
The gradual buildup of land by natural causes ( generally by action of water )
An agreement to accept a lesser consideration than bargained for based on disagreement over performance.
36 individual square miles or 640 acres.

33. 640 acres =
Easement that gives the dominant tenement owner the right to use the servient tenement.
A procedural act that must be complied with prior to revocation - suspension - or denial of a real estate license.
1 square mile
Government National Mortgage Association

34. Beneficiary statement
Alternative Minimum Tax - requires taxpayers - who make above a certain amount of gross income to - to figure taxes twice.
Principal + Interest + Monthly taxes and insurance + homeowners assoc. fee = 25% - 30% gross monthly income
Agency in which an agent has a financial interest in the subject matter of the agency.
Statement by beneficiary as to balance due on loan.

35. OLDCAR
36 individual square miles or 640 acres.
The Fiduciary Duty owed to a principal (seller) by the Agent (broker) obedience - loyalty - disclosure - confidentiality - accountability - reasonable use of (skill - training - experience - competency)
Attempt to establish a firm's identity to the public
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

36. Administrator
A person appointed by the court to administer the estate of a deceased person.
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.
Prohibits discrimination in a place of public accommodation based on an individual's physical or mental disabilities.
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

37. Affirmation
Items used to qualify a buyer for the proper debt:income ratio. Usually 1/3 of gross income. principle - interest - taxes - insurance
The party required to prove a fact when an issue is in dispute
A formal declaration of the truthfulness of a statement - given in lieu of a verification.
Any loss of value due to conditions outside of the property itself. aka social obsolescence

38. Community property
Cconsists of all property acquired by a husband and wife - or either - during a valid marriage - other than separate property
Real Estate Equity Trust
A contract based on an illegal consideration
A copy of all recorded documents dealing with a property. Attorneys give title opinions based on abstracts.

39. Sole ownership
Statement of the actual settlement costs. Provided by US Dept of HUD.
An agency created by a principal's approving an unauthorized act of another.
Person holding title to real property in severalty
Real Estate Investment Trust

40. FIRPTA
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.
Foreign Investments in Real Property Tax Act
Nonjudicial process for resolution of disputes either by agreement or mandated by law.
Sales prices of comparable properties

41. Adverse possession
A method to acquire title. It requires five-year - open - notorious - uninterrupted use under some claim of right - and the payment of taxes.
36 individual square miles or 640 acres.
Part of the Business and Professions Code covering loan costs - commissions - and payment requirements relating to loan brokerage activity.
Real Property Securities Dealer

42. Agency by ratification

43. 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
Truth in Lending Act - Implemented by Regulation Z set by the Federal Trade Commission
Copies of all listings - deposit receipts - canceled checks - and trust records must be retained by a licensed real estate broker
For Sale By Owners

44. Cloud on the title

45. 1 square mile =
Transfer of all rights under a contract to a third party. Assignor remains secondarily liability.
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
43560 square feet

46. Agency coupled with an interest
A final payment that is more than twice the amount of the lowest payment.
A copy of all recorded documents dealing with a property. Attorneys give title opinions based on abstracts.
43560 square feet
Agency in which an agent has a financial interest in the subject matter of the agency.

47. Bilateral contract
1 square mile
Time tested model used in writing ads - Attention - Interest - Desire - Action
A mutual exchange of promises.
Department of Housing and Urban Development

48. FNMA
Federal National Mortgage Association
Any loss of value due to conditions outside of the property itself. aka social obsolescence
36 individual square miles or 640 acres.
Zoning for beauty or appearance. Appearance of zone may have a pattern in architecture - colors - and styles.

49. American Land Title Association
Offer the seller suggestions on ways to show a home for maximum positive first impression
Statement by beneficiary as to balance due on loan.
ALTA - The association that developed an extended-coverage policy of title insurance for lenders ( same coverage available to buyers )
Taxes based on value - such as property tax. ( Latin - according to value )

50. Blockbusting
Inducing panic selling based on fear of the entry of persons of another race - color - religion - or ancestry into the area.
Attempt to establish a firm's identity to the public
Financial Institute Reform - Recovery - and Enforcement Act of 1989
Owner assigns right to collect rent to another. Usually given to a lienholder when owner is delinquent in rent