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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. Trust Deed
Advance payments made to an agent to cover expected cash outlays in carrying out the agency.
A mutual exchange of promises.
Instrument used to secure a loan on personal property is called
Real Estate Equity Trust

2. Assuming a loa
Federal Home Loan Mortgage Corporation
Loss in value from any cause? is a common definition
The buyer's agreeing to be primarily liable on the loan while the seller has secondary liability
Items used to qualify a buyer for the proper debt:income ratio. Usually 1/3 of gross income. principle - interest - taxes - insurance

3. Instrument
An acknowledgment of the grantor's signature
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
The revocation of a specific property grant in a will by disposing of said property prior to death.
Principal + Interest + Monthly taxes and insurance + homeowners assoc. fee = 25% - 30% gross monthly income

4. Tenancy in partnershipm
A fee for rental information accepted in advance - or a promotional fee for a sale listing.
Two or more persons - as partners - own property for partnership purposes
A contract based on an illegal consideration
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

5. Blind ad
A disclosure statement given to borrowers by mortgage loan brokers that provides information on all costs - fees - and loan terms.
The party required to prove a fact when an issue is in dispute
A procedural act that must be complied with prior to revocation - suspension - or denial of a real estate license.
An advertisement that fails to reveal that the advertiser is an agent and not a principal

6. HUD
A note that will liquidate itself over its term in equal installments
Must be disclosed to the buyer if
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
Department of Housing and Urban Development

7. Abstract of title
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
Financial Institute Reform - Recovery - and Enforcement Act of 1989
A copy of all recorded documents dealing with a property. Attorneys give title opinions based on abstracts.
Changes in escrow instructions - which require the agreement of both the buyer and seller.

8. Appraisals of single-family dwellings
Sales prices of comparable properties
A method to acquire title. It requires five-year - open - notorious - uninterrupted use under some claim of right - and the payment of taxes.
1 square mile
A loan to be completely repaid - principal and interest - by a series of regular equal installment payments

9. depreciation
An owner has a duty to reasonably protect children from injury when the premises are likely to attract children.
A method to acquire title. It requires five-year - open - notorious - uninterrupted use under some claim of right - and the payment of taxes.
A person appointed by the court to administer the estate of a deceased person.
Loss in value from any cause? is a common definition

10. Chattel mortgag
Two or more persons - as partners - own property for partnership purposes
Elements of a contract - mutual COnsent - CApacity - COnsideration - LAwful purpose ( must be in writing )
Use of personal property to secure or guarantee a promissory note.
A person appointed by the court to administer the estate of a deceased person.

11. Community Property
Inducing panic selling based on fear of the entry of persons of another race - color - religion - or ancestry into the area.
Real Estate Equity Trust
Commission is only controlled by law under two situations. One being If property is sold while in probate and...
Property owned by husband and wife

12. Housing Financial Discrimination Act of 1977 (Holden Act)
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
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
Promise for a promise.
A formal declaration of the truthfulness of a statement - given in lieu of a verification.

13. Avulsion
Real Estate Mortgage Trust
The sudden removal of land by action of water - such as a river changing course.
Parallel wooden members used to support floor and ceiling loads are called
Financial Institute Reform - Recovery - and Enforcement Act of 1989

14. Grantor - quitclaim
Real Estate Educators Association
Within 3 days from acceptance of the offer (this must happen)
A quitclaim deed conveys only the present right - title and interest of the
Part of the Business and Professions Code governing transactions in trust deeds and real property sales contracts

15. A valid bill of sale must contain...
The seller's signature
Separate ownershi and Concurrent ownership; a. Tenancy in common; b. Joint tenancy; and c. Community property.
NE - North East
All beneficial rights that go with ownership of real property

16. Recording Act of California
Person holding title to real property in severalty
After being acknowledged - any instrument or judgment affecting the title to or possession of real property may be recorded
Time tested model used in writing ads - Attention - Interest - Desire - Action
The Broker is the Agent of the seller. The salesperson is the

17. Three most common methods of describing property
Licensed real estate agent who can deal directly with principals and employ licensed real estate salepersons
8 Ways to terminate an easement Abandonment - Destruction - Adverse Possession - Merger - Express Agreement - Lawsuit - Estoppel - Excessive use
Finance charge and annual percentage rate - Regulation Z
By recorded map; by U. S. Government section and township; and by metes and bounds

18. FIRPTA
Elements of a contract - mutual COnsent - CApacity - COnsideration - LAwful purpose ( must be in writing )
Title or interest acquired by the grantor after property has been conveyed.
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
Foreign Investments in Real Property Tax Act

19. Anticipatory breach
An owner has a duty to reasonably protect children from injury when the premises are likely to attract children.
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.
National Association of Independent Fee Appraisers
Act of a party that can be treated as a breach of contract because it makes performance by that party impossible.

20. Attachment
Ownership by one person
A prejudgment lien that can be obtained to ensure the availability of property for execution after a judgment is obtained.
A procedural act that must be complied with prior to revocation - suspension - or denial of a real estate license.
Parallel wooden members used to support floor and ceiling loads are called

21. Ranges
All payments become due upon default of payment. In California - the debtor can cure the default by catching up on payments prior to foreclosure.
Grid of vertical lines (US Government and township)
Deed from trustee to trustor - at the request of the beneficiary of trust (lender) - that returns title to the trustor on payment of indebtedness
Items used to qualify a buyer for the proper debt:income ratio. Usually 1/3 of gross income. principle - interest - taxes - insurance

22. A broker selling a property on which he holds an option should notify the purchaser...
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
Copies of all listings - deposit receipts - canceled checks - and trust records must be retained by a licensed real estate broker
is deeded to the county

23. California has three sets of base lines and meridian
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
8 Ways to terminate an easement Abandonment - Destruction - Adverse Possession - Merger - Express Agreement - Lawsuit - Estoppel - Excessive use
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.
Federal National Mortgage Association

24. Social obsolescence
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
Any loss of value due to conditions outside of the property itself. aka economic obsolescence
A disclosure statement given to borrowers by mortgage loan brokers that provides information on all costs - fees - and loan terms.
After being acknowledged - any instrument or judgment affecting the title to or possession of real property may be recorded

25. Aesthetic zoning
Zoning for beauty or appearance. Appearance of zone may have a pattern in architecture - colors - and styles.
Buyer to take possession 3 days after the close of escrow
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
By recorded map; by U. S. Government section and township; and by metes and bounds

26. Community property
Parallel wooden members used to support floor and ceiling loads are called
Owner assigns right to collect rent to another. Usually given to a lienholder when owner is delinquent in rent
Deed from trustee to trustor - at the request of the beneficiary of trust (lender) - that returns title to the trustor on payment of indebtedness
Cconsists of all property acquired by a husband and wife - or either - during a valid marriage - other than separate property

27. Bulk Sales Act
An act that requires recordings and publication of a sale not in the normal course of business.
1 square mile
Prohibits discrimination in a place of public accommodation based on an individual's physical or mental disabilities.
Zoning for density with open-space requirements as well as setback - parking - and height restrictions

28. Broker's loan statement
A disclosure statement given to borrowers by mortgage loan brokers that provides information on all costs - fees - and loan terms.
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
Zoning for beauty or appearance. Appearance of zone may have a pattern in architecture - colors - and styles.
ALTA - The association that developed an extended-coverage policy of title insurance for lenders ( same coverage available to buyers )

29. amortized note
A note that will liquidate itself over its term in equal installments
The gradual buildup of land by natural causes ( generally by action of water )
Inducing panic selling based on fear of the entry of persons of another race - color - religion - or ancestry into the area.
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

30. CMA
Competitive Market Analysis
Zoning for beauty or appearance. Appearance of zone may have a pattern in architecture - colors - and styles.
Horizontal in the township and section system
Owner assigns right to collect rent to another. Usually given to a lienholder when owner is delinquent in rent

31. Beneficiary statement
Inducing panic selling based on fear of the entry of persons of another race - color - religion - or ancestry into the area.
Statement by beneficiary as to balance due on loan.
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
Grid horizontal lines (US Government and township)

32. If property is sold while in probate
The buyer's agreeing to be primarily liable on the loan while the seller has secondary liability
Real Estate Settlement Procedures Act - requires special information booklet - requires good faith estimate - requires uniform settlement statement
Commission is only controlled by law under two situations. One being the Real Property Loan Law and...
After being acknowledged - any instrument or judgment affecting the title to or possession of real property may be recorded

33. The maximum commission a broker may charge a seller for the sale of residential income property
43560 square feet
A disclosure statement given to borrowers by mortgage loan brokers that provides information on all costs - fees - and loan terms.
Negotiable commission for residential
Created in 1934 to provide mortgage insurance on loans made by FHA - approved lenders - part of HUD

34. AIDA
An owner has a duty to reasonably protect children from injury when the premises are likely to attract children.
Time tested model used in writing ads - Attention - Interest - Desire - Action
Advance payments made to an agent to cover expected cash outlays in carrying out the agency.
An agreement to accept a lesser consideration than bargained for based on disagreement over performance.

35. Broker
Federal National Mortgage Association
Licensed real estate agent who can deal directly with principals and employ licensed real estate salepersons
The party required to prove a fact when an issue is in dispute
Joint ownership of real property by two or more persons - each of whom has an undivided interest (not necessarily equal) without right of survivorship

36. TTIP
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
Time tested model used in writing ads - Attention - Interest - Desire - Action
Truth in Lending Act - Implemented by Regulation Z set by the Federal Trade Commission
Joint tenants have: unity of time - unity of title - unity of interest - unity of possession

37. Adam E Lee
8 Ways to terminate an easement Abandonment - Destruction - Adverse Possession - Merger - Express Agreement - Lawsuit - Estoppel - Excessive use
Real Estate Educators Association
An acknowledgment of the grantor's signature
Multiple Listing Service

38. Affirmative easement
ALTA - The association that developed an extended-coverage policy of title insurance for lenders ( same coverage available to buyers )
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.
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

39. Sole ownership
Created in 1934 to provide mortgage insurance on loans made by FHA - approved lenders - part of HUD
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.
Alternative Minimum Tax - requires taxpayers - who make above a certain amount of gross income to - to figure taxes twice.
Person holding title to real property in severalty

40. Federal Fair Housing Act - Title VIII of the Civil Rights Act of 1968
Promise for a promise.
Nonjudicial process for resolution of disputes either by agreement or mandated by law.
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
Law prohibits discrimination in supplying housing accommodations because of race - color - religion - sex - marital status - national origin - ancestry - age - familial status or disability.

41. 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
Statement of the actual settlement costs. Provided by US Dept of HUD.
Real Estate Educators Association
The Broker is the Agent of the seller. The salesperson is the sub-agent of the

42. Real Property Loan Law
The sudden removal of land by action of water - such as a river changing course.
Commission is only controlled by law under two situations. One being If property is sold while in probate and...
Items used to qualify a buyer for the proper debt:income ratio. Usually 1/3 of gross income. principle - interest - taxes - insurance
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

43. Breach of contract
Within 3 days from acceptance of the offer (this must happen)
real estate
Failure to comply with a material term or provision of a contract
The Broker is the Agent of the seller. The salesperson is the

44. PITI
Joint tenants have: unity of time - unity of title - unity of interest - unity of possession
Items used to qualify a buyer for the proper debt:income ratio. Usually 1/3 of gross income. principle - interest - taxes - insurance
An acknowledgment of the grantor'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

45. Bulk zoning
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
Statement by beneficiary as to balance due on loan.
Nonjudicial process for resolution of disputes either by agreement or mandated by law.
Zoning for density with open-space requirements as well as setback - parking - and height restrictions

46. Amendments to the escrow instructions
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
Real Estate Educators Association
Changes in escrow instructions - which require the agreement of both the buyer and seller.
In a legal sales contract - the seller is often referred to as the

47. Assignment of contract
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
Federal Home Loan Mortgage Corporation
An acknowledgment of the grantor's signature
Transfer of all rights under a contract to a third party. Assignor remains secondarily liability.

48. FIRREA
Financial Institute Reform - Recovery - and Enforcement Act of 1989
Property owned by husband and wife
Real Estate Equity Trust
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

49. Abstract of judgment
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 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
Inducing panic selling based on fear of the entry of persons of another race - color - religion - or ancestry into the area.
A prejudgment lien that can be obtained to ensure the availability of property for execution after a judgment is obtained.

50. A valid deed does not have to contain
An acknowledgment of the grantor's signature
Federal Home Loan Mortgage Corporation
Taxes based on value - such as property tax. ( Latin - according to value )
Real Property Securities Dealer

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