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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. Chattel mortgag
Vertical in the township and section system
Real Estate Settlement Procedures Act - requires special information booklet - requires good faith estimate - requires uniform settlement statement
Use of personal property to secure or guarantee a promissory note.
A procedural act that must be complied with prior to revocation - suspension - or denial of a real estate license.

2. CoCa CoLa
Alternative Minimum Tax - requires taxpayers - who make above a certain amount of gross income to - to figure taxes twice.
A loan to be completely repaid - principal and interest - by a series of regular equal installment payments
Elements of a contract - mutual COnsent - CApacity - COnsideration - LAwful purpose ( must be in writing )
real estate

3. Sole ownership
Two or more persons - as partners - own property for partnership purposes
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
Person holding title to real property in severalty
An agreement to accept a lesser consideration than bargained for based on disagreement over performance.

4. If property is sold while in probate
Commission is only controlled by law under two situations. One being the Real Property Loan Law and...
A covenant under which an owner is required to do something - such as build within a stated period of time.
An acknowledgment of the grantor's signature
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

5. Amendments to the escrow instructions
Changes in escrow instructions - which require the agreement of both the buyer and seller.
43560 square feet
Two or more persons - as partners - own property for partnership purposes
Time tested model used in writing ads - Attention - Interest - Desire - Action

6. TTIP
A procedural act that must be complied with prior to revocation - suspension - or denial of a real estate license.
Promise for a promise.
Joint tenants have: unity of time - unity of title - unity of interest - unity of possession
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. Ranges
Grid of vertical lines (US Government and township)
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
ALTA - The association that developed an extended-coverage policy of title insurance for lenders ( same coverage available to buyers )

8. Accord and satisfaction
A method to acquire title. It requires five-year - open - notorious - uninterrupted use under some claim of right - and the payment of taxes.
Statement by beneficiary as to balance due on loan.
An agreement to accept a lesser consideration than bargained for based on disagreement over performance.
The party required to prove a fact when an issue is in dispute

9. Broker's loan statement
Loss of value due to adverse factors within a structure that affect the marketability of the property.
Use of personal property to secure or guarantee a promissory note.
The party required to prove a fact when an issue is in dispute
A disclosure statement given to borrowers by mortgage loan brokers that provides information on all costs - fees - and loan terms.

10. Housing Financial Discrimination Act of 1977 (Holden Act)
Joint ownership of real property by two or more persons - each of whom has an undivided interest (not necessarily equal) without right of survivorship
Any loss of value due to conditions outside of the property itself. aka social obsolescence
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 clause in a mortgage or trust deed that the senior lienholder will retain lien priority in the event of a merger.

11. Actual notice
Notice that has been expressly given and is known to a party
Commission is only controlled by law under two situations. One being If property is sold while in probate and...
Attempt to establish a firm's identity to the public
Created in 1934 to provide mortgage insurance on loans made by FHA - approved lenders - part of HUD

12. Joists
Provides for rent as a percentage of the tenants' gross income ( gross sales )
Parallel wooden members used to support floor and ceiling loads are called
Joint tenants have: unity of time - unity of title - unity of interest - unity of possession
A government agency that makes rules and regulations to carry out the law.

13. Administrative Procedure Act
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.
A procedural act that must be complied with prior to revocation - suspension - or denial of a real estate license.
Person holding title to real property in severalty
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

14. Principle or 3rd party
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
Created in 1934 to provide mortgage insurance on loans made by FHA - approved lenders - part of HUD
The Broker is the Agent of the seller. The salesperson is the sub-agent of the
Any loss of value due to conditions outside of the property itself. aka social obsolescence

15. Cloud on the title

16. Examples functional obsolescence
By recorded map; by U. S. Government section and township; and by metes and bounds
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.
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
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

17. amortized note
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 note that will liquidate itself over its term in equal installments
36 individual square miles or 640 acres.
Nonjudicial process for resolution of disputes either by agreement or mandated by law.

18. Bulk Sales Act
An act that requires recordings and publication of a sale not in the normal course of business.
A prejudgment lien that can be obtained to ensure the availability of property for execution after a judgment is obtained.
Cconsists of all property acquired by a husband and wife - or either - during a valid marriage - other than separate property
Statement of the actual settlement costs. Provided by US Dept of HUD.

19. Grantor - quitclaim
A quitclaim deed conveys only the present right - title and interest of the
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
Buyer to take possession 3 days after the close of escrow
NE - North East

20. Community Property
Property owned by husband and wife
Ownership by one person
Statement of the actual settlement costs. Provided by US Dept of HUD.
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.

21. CE+3
Notice that has been expressly given and is known to a party
A loan to be completely repaid - principal and interest - by a series of regular equal installment payments
Buyer to take possession 3 days after the close of escrow
The party required to prove a fact when an issue is in dispute

22. Township
In a legal sales contract - the seller is often referred to as the
Zoning for beauty or appearance. Appearance of zone may have a pattern in architecture - colors - and styles.
Foreign Investments in Real Property Tax Act
Grid horizontal lines (US Government and township)

23. Which corner does the township numbering system start in?
Cconsists of all property acquired by a husband and wife - or either - during a valid marriage - other than separate property
NE - North East
An owner has a duty to reasonably protect children from injury when the premises are likely to attract children.
Real Estate Investment Trust

24. Article 7
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.
Sales prices of comparable properties
Department of Housing and Urban Development
Part of the Business and Professions Code covering loan costs - commissions - and payment requirements relating to loan brokerage activity.

25. Adam E Lee
A mortgage or trust deed covering more than one property
Zoning for beauty or appearance. Appearance of zone may have a pattern in architecture - colors - and styles.
8 Ways to terminate an easement Abandonment - Destruction - Adverse Possession - Merger - Express Agreement - Lawsuit - Estoppel - Excessive use
Real Estate Settlement Procedures Act - requires special information booklet - requires good faith estimate - requires uniform settlement statement

26. Deed of reconveyance
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
An acknowledgment of the grantor's signature
is deeded to the county

27. A tenancy in common
1 square mile
Joint ownership of real property by two or more persons - each of whom has an undivided interest (not necessarily equal) without right of survivorship
A contract based on an illegal consideration
is deeded to the county

28. FTC
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
Federal Trade Commission
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
A person appointed by the court to administer the estate of a deceased person.

29. Community property
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.
Cconsists of all property acquired by a husband and wife - or either - during a valid marriage - other than separate property
Competitive Market Analysis
Created in 1934 to provide mortgage insurance on loans made by FHA - approved lenders - part of HUD

30. Advance costs
Advance payments made to an agent to cover expected cash outlays in carrying out the agency.
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
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.
Mortgages in California

31. Balloon payment
A final payment that is more than twice the amount of the lowest payment.
The Broker is the Agent of the seller. The salesperson is the
Part of the Business and Professions Code covering loan costs - commissions - and payment requirements relating to loan brokerage activity.
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

32. Economic obsolescence
Offer the seller suggestions on ways to show a home for maximum positive first impression
For Sale By Owners
Any loss of value due to conditions outside of the property itself. aka social obsolescence
Inducing panic selling based on fear of the entry of persons of another race - color - religion - or ancestry into the area.

33. Township
Items used to qualify a buyer for the proper debt:income ratio. Usually 1/3 of gross income. principle - interest - taxes - insurance
A loan to be completely repaid - principal and interest - by a series of regular equal installment payments
NE - North East
36 individual square miles or 640 acres.

34. CMA
Competitive Market Analysis
that he is acting as an optionor
real estate
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

35. REET
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.
Instrument used to secure a loan on personal property is called
Real Estate Equity Trust
Ownership by one person

36. Bilateral contract
Federal Trade Commission
A mutual exchange of promises.
The seller's signature
Nonjudicial process for resolution of disputes either by agreement or mandated by law.

37. Advance fee addendum
Transfer of all rights under a contract to a third party. Assignor remains secondarily liability.
An agreement specifying activities for which the agent is to be compensated. It would include provisions for an advance payment of fees.
Nonjudicial process for resolution of disputes either by agreement or mandated by law.
Property owned by husband and wife

38. Instrument
Parallel wooden members used to support floor and ceiling loads are called
Time tested model used in writing ads - Attention - Interest - Desire - Action
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
Any loss of value due to conditions outside of the property itself. aka economic obsolescence

39. Monthly house payment (ratio standard)
One broker
Failure to comply with a material term or provision of a contract
Principal + Interest + Monthly taxes and insurance + homeowners assoc. fee = 25% - 30% gross monthly income
NE - North East

40. Abstract of judgment

41. RESPA
An agency created by a principal's approving an unauthorized act of another.
Real Estate Settlement Procedures Act - requires special information booklet - requires good faith estimate - requires uniform settlement statement
All payments become due upon default of payment. In California - the debtor can cure the default by catching up on payments prior to foreclosure.
Sales prices of comparable properties

42. RPSD
Real Property Securities Dealer
The Broker is the Agent of the seller. The salesperson is the sub-agent of the
After being acknowledged - any instrument or judgment affecting the title to or possession of real property may be recorded
The gradual buildup of land by natural causes ( generally by action of water )

43. Staging
Zoning for density with open-space requirements as well as setback - parking - and height restrictions
A change made to a note or contract by one of the parties without the consent of the other.
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
Offer the seller suggestions on ways to show a home for maximum positive first impression

44. Blanket encumbrance
A loan to be completely repaid - principal and interest - by a series of regular equal installment payments
Promise for a promise.
Government National Mortgage Association
A mortgage or trust deed covering more than one property

45. Deposits from clients must be placed in a brokers trust fund
Sales prices of comparable properties
is deeded to the county
Part of the Business and Professions Code covering loan costs - commissions - and payment requirements relating to loan brokerage activity.
Within 3 days from acceptance of the offer (this must happen)

46. Blockbusting
Law prohibits discrimination in supplying housing accommodations because of race - color - religion - sex - marital status - national origin - ancestry - age - familial status or disability.
Federal Trade Commission
Inducing panic selling based on fear of the entry of persons of another race - color - religion - or ancestry into the area.
Advance payments made to an agent to cover expected cash outlays in carrying out the agency.

47. REIT
ALTA - The association that developed an extended-coverage policy of title insurance for lenders ( same coverage available to buyers )
Prohibits discrimination in a place of public accommodation based on an individual's physical or mental disabilities.
A final payment that is more than twice the amount of the lowest payment.
Real Estate Investment Trust

48. Arbitration
Act of a party that can be treated as a breach of contract because it makes performance by that party impossible.
Nonjudicial process for resolution of disputes either by agreement or mandated by law.
A covenant under which an owner is required to do something - such as build within a stated period of time.
An act that requires recordings and publication of a sale not in the normal course of business.

49. Avulsion
The sudden removal of land by action of water - such as a river changing course.
Law prohibits discrimination in supplying housing accommodations because of race - color - religion - sex - marital status - national origin - ancestry - age - familial status or disability.
Person holding title to real property in severalty
A contract based on an illegal consideration

50. Agency coupled with an interest
A statement made before a notary or court officer that the signing of a document was the signer's own free act.
Lender (or seller) in a trust deed loan situation
Agency in which an agent has a financial interest in the subject matter of the agency.
One broker