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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. Void
A contract based on an illegal consideration
Sales prices of comparable properties
Two or more persons - as partners - own property for partnership purposes
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.

2. REMT
Prohibits discrimination in a place of public accommodation based on an individual's physical or mental disabilities.
Instrument used to secure a loan on personal property is called
real estate
Real Estate Mortgage Trust

3. Major repairs in the past 5 years ( house for sale )...
Principal + Interest + Monthly taxes and insurance + homeowners assoc. fee = 25% - 30% gross monthly income
Personal property transferred by will
Must be disclosed to the buyer if
Federal Home Loan Mortgage Corporation

4. FHLMC
Property owned by husband and wife
Prohibits discrimination in a place of public accommodation based on an individual's physical or mental disabilities.
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

5. Meridians
The seller's signature
A copy of all recorded documents dealing with a property. Attorneys give title opinions based on abstracts.
A person appointed by the court to administer the estate of a deceased person.
Vertical in the township and section system

6. 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
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.
36 individual square miles or 640 acres.
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.

7. Assuming a loa

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8. Grantor - quitclaim
1 square mile
Elements of a contract - mutual COnsent - CApacity - COnsideration - LAwful purpose ( must be in writing )
Personal property transferred by will
A quitclaim deed conveys only the present right - title and interest of the

9. Tenancy in partnershipm
A person appointed by the court to administer the estate of a deceased person.
Two or more persons - as partners - own property for partnership purposes
Part of the Business and Professions Code covering loan costs - commissions - and payment requirements relating to loan brokerage activity.
An agency created by a principal's approving an unauthorized act of another.

10. Community Property
Property owned by husband and wife
Loss of value due to adverse factors within a structure that affect the marketability of the property.
Taxes based on value - such as property tax. ( Latin - according to value )
Personal property transferred by will

11. Chattel mortgag
Use of personal property to secure or guarantee a promissory note.
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.
One broker
Law prohibits discrimination in supplying housing accommodations because of race - color - religion - sex - marital status - national origin - ancestry - age - familial status or disability.

12. 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)
Multiple Listing Service
The seller's signature
A mortgage or trust deed covering more than one property

13. TILA
Offer the seller suggestions on ways to show a home for maximum positive first impression
Truth in Lending Act - Implemented by Regulation Z set by the Federal Trade Commission
Time tested model used in writing ads - Attention - Interest - Desire - Action
Real Estate Equity Trust

14. Assignment
Finance charge and annual percentage rate - Regulation Z
Transfer of all interest in a contract or lease.
Part of the Business and Professions Code governing transactions in trust deeds and real property sales contracts
The Broker is the Agent of the seller. The salesperson is the sub-agent of the

15. NAIFA
The seller's signature
A disclosure statement given to borrowers by mortgage loan brokers that provides information on all costs - fees - and loan terms.
National Association of Independent Fee Appraisers
Any loss of value due to conditions outside of the property itself. aka social obsolescence

16. Salesperson can only work for...
An advertisement that fails to reveal that the advertiser is an agent and not a principal
Truth in Lending Act - Implemented by Regulation Z set by the Federal Trade Commission
Law prohibits discrimination in supplying housing accommodations because of race - color - religion - sex - marital status - national origin - ancestry - age - familial status or disability.
One broker

17. Three most common methods of describing property
is deeded to the county
By recorded map; by U. S. Government section and township; and by metes and bounds
Act of a party that can be treated as a breach of contract because it makes performance by that party impossible.
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.

18. Housing Financial Discrimination Act of 1977 (Holden Act)
Person holding title to real property in severalty
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
Created in 1934 to provide mortgage insurance on loans made by FHA - approved lenders - part of HUD
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

19. After-acquired title
The seller's signature
Deed from trustee to trustor - at the request of the beneficiary of trust (lender) - that returns title to the trustor on payment of indebtedness
Title or interest acquired by the grantor after property has been conveyed.
real estate

20. Separate property of a married person includes...
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
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
ALTA - The association that developed an extended-coverage policy of title insurance for lenders ( same coverage available to buyers )
Separate ownershi and Concurrent ownership; a. Tenancy in common; b. Joint tenancy; and c. Community property.

21. Accord and satisfaction
A procedural act that must be complied with prior to revocation - suspension - or denial of a real estate license.
Part of the Business and Professions Code covering loan costs - commissions - and payment requirements relating to loan brokerage activity.
36 individual square miles or 640 acres.
An agreement to accept a lesser consideration than bargained for based on disagreement over performance.

22. MLS
Government National Mortgage Association
The revocation of a specific property grant in a will by disposing of said property prior to death.
Federal Home Loan Mortgage Corporation
Multiple Listing Service

23. A valid bill of sale must contain...

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24. Separate ownership
Ownership by one person
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
An action to remove a nuisance

25. Federal Truth-in-Lending Law
A mortgage or trust deed covering more than one property
Finance charge and annual percentage rate - Regulation Z
Federal Trade Commission
Within 3 days from acceptance of the offer (this must happen)

26. amortized note
The revocation of a specific property grant in a will by disposing of said property prior to death.
A note that will liquidate itself over its term in equal installments
A change made to a note or contract by one of the parties without the consent of the other.
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

27. TTIP
Attempt to establish a firm's identity to the public
Department of Housing and Urban Development
The buyer's agreeing to be primarily liable on the loan while the seller has secondary liability
Joint tenants have: unity of time - unity of title - unity of interest - unity of possession

28. Abstract of title
Grid horizontal lines (US Government and township)
A copy of all recorded documents dealing with a property. Attorneys give title opinions based on abstracts.
The revocation of a specific property grant in a will by disposing of said property prior to death.
Nonjudicial process for resolution of disputes either by agreement or mandated by law.

29. What trust deeds in California are called..
Foreign Investments in Real Property Tax Act
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.
Grid horizontal lines (US Government and township)
Mortgages in California

30. Ownership of real property
Separate ownershi and Concurrent ownership; a. Tenancy in common; b. Joint tenancy; and c. Community 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
A person appointed as an agent under a power of attorney
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.

31. A valid deed does not have to contain

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32. FIRPTA
A person appointed by the court to administer the estate of a deceased person.
Real Estate Educators Association
Ownership by one person
Foreign Investments in Real Property Tax Act

33. Assumable loan
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
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.
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
Federal National Mortgage Association

34. Affirmative covenant
Provides for rent as a percentage of the tenants' gross income ( gross sales )
A covenant under which an owner is required to do something - such as build within a stated period of time.
The sudden removal of land by action of water - such as a river changing course.
NE - North East

35. Abatement
Vertical in the township and section system
An action to remove a nuisance
Copies of all listings - deposit receipts - canceled checks - and trust records must be retained by a licensed real estate broker
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

36. Concurrent ownership or co-ownership
Elements of a contract - mutual COnsent - CApacity - COnsideration - LAwful purpose ( must be in writing )
In a legal sales contract - the seller is often referred to as the
Inducing panic selling based on fear of the entry of persons of another race - color - religion - or ancestry into the area.
Simultaneous ownership of a given piece of property by two or more persons - Tenancy in common; Joint tenancy; and Community property.

37. California has three sets of base lines and meridian
Advance payments made to an agent to cover expected cash outlays in carrying out the agency.
43560 square feet
Truth in Lending Act - Implemented by Regulation Z set by the Federal Trade Commission
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.

38. Instrument
Joint tenants have: unity of time - unity of title - unity of interest - unity of possession
Real Estate Investment Trust
36 individual square miles or 640 acres.
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

39. 43560 square feet =
Real Estate Settlement Procedures Act - requires special information booklet - requires good faith estimate - requires uniform settlement statement
Easement that gives the dominant tenement owner the right to use the servient tenement.
1 square mile
Statement of the actual settlement costs. Provided by US Dept of HUD.

40. Advance costs
Grid horizontal lines (US Government and township)
Licensed real estate agent who can deal directly with principals and employ licensed real estate salepersons
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
Advance payments made to an agent to cover expected cash outlays in carrying out the agency.

41. American Land Title Association
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
Act of a party that can be treated as a breach of contract because it makes performance by that party impossible.
ALTA - The association that developed an extended-coverage policy of title insurance for lenders ( same coverage available to buyers )
Cconsists of all property acquired by a husband and wife - or either - during a valid marriage - other than separate property

42. Trust Deed
All payments become due upon default of payment. In California - the debtor can cure the default by catching up on payments prior to foreclosure.
Offer the seller suggestions on ways to show a home for maximum positive first impression
Instrument used to secure a loan on personal property is called
A prejudgment lien that can be obtained to ensure the availability of property for execution after a judgment is obtained.

43. Economic obsolescence
Cconsists of all property acquired by a husband and wife - or either - during a valid marriage - other than separate property
Notice that has been expressly given and is known to a party
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
Any loss of value due to conditions outside of the property itself. aka social obsolescence

44. Three C's (credit rules of thumb)
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
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
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
Government National Mortgage Association

45. Burden of proof
Offer the seller suggestions on ways to show a home for maximum positive first impression
The party required to prove a fact when an issue is in dispute
The sudden removal of land by action of water - such as a river changing course.
A government agency that makes rules and regulations to carry out the law.

46. Open end mortgage
Agency in which an agent has a financial interest in the subject matter of the agency.
All payments become due upon default of payment. In California - the debtor can cure the default by catching up on payments prior to foreclosure.
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.
Elements of a contract - mutual COnsent - CApacity - COnsideration - LAwful purpose ( must be in writing )

47. Article 5
Part of the Business and Professions Code governing transactions in trust deeds and real property sales contracts
Use of personal property to secure or guarantee a promissory note.
Statement by beneficiary as to balance due on loan.
Personal property transferred by will

48. Agency by estoppel

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49. Uniform Settlement Statement
All beneficial rights that go with ownership of real property
After being acknowledged - any instrument or judgment affecting the title to or possession of real property may be recorded
Use of personal property to secure or guarantee a promissory note.
Statement of the actual settlement costs. Provided by US Dept of HUD.

50. Attorney-in-fact
Parallel wooden members used to support floor and ceiling loads are called
A person appointed as an agent under a power of attorney
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.
The Broker is the Agent of the seller. The salesperson is the