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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. CE+3
An action to remove a nuisance
Sales prices of comparable properties
NE - North East
Buyer to take possession 3 days after the close of escrow

2. Bilateral contract - p4p
Deed from trustee to trustor - at the request of the beneficiary of trust (lender) - that returns title to the trustor on payment of indebtedness
For Sale By Owners
Promise for a promise.
Zoning for density with open-space requirements as well as setback - parking - and height restrictions

3. Agency coupled with an interest
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
Agency in which an agent has a financial interest in the subject matter of the agency.
36 individual square miles or 640 acres.
Federal Home Loan Mortgage Corporation

4. REIT
Created in 1934 to provide mortgage insurance on loans made by FHA - approved lenders - part of HUD
Real Property Securities Dealer
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.
Real Estate Investment Trust

5. 'As is'
A final payment that is more than twice the amount of the lowest payment.
An agreement specifying activities for which the agent is to be compensated. It would include provisions for an advance payment of fees.
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.
An advertisement that fails to reveal that the advertiser is an agent and not a principal

6. Institutional advertising

7. Tenancy in common
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
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
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
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

8. Agent of the broker
A change made to a note or contract by one of the parties without the consent of the other.
Transfer of all interest in a contract or lease.
By recorded map; by U. S. Government section and township; and by metes and bounds
The Broker is the Agent of the seller. The salesperson is the

9. OLDCAR
Must be disclosed to the buyer if
43560 square feet
The Fiduciary Duty owed to a principal (seller) by the Agent (broker) obedience - loyalty - disclosure - confidentiality - accountability - reasonable use of (skill - training - experience - competency)
Real Estate Educators Association

10. Three C's (credit rules of thumb)
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
Loss of value due to adverse factors within a structure that affect the marketability of the 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.
One who represents another in an agency relationship.

11. Real Property Loan Law
NE - North East
Commission is only controlled by law under two situations. One being If property is sold while in probate and...
Principal + Interest + Monthly taxes and insurance + homeowners assoc. fee = 25% - 30% gross monthly income
Joint tenants have: unity of time - unity of title - unity of interest - unity of possession

12. Void
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.
A contract based on an illegal consideration
A prejudgment lien that can be obtained to ensure the availability of property for execution after a judgment is obtained.
Real Property Securities Dealer

13. REMT
Attempt to establish a firm's identity to the public
Joint tenants have: unity of time - unity of title - unity of interest - unity of possession
Real Estate Mortgage Trust
A procedural act that must be complied with prior to revocation - suspension - or denial of a real estate license.

14. 1 square mile =
43560 square feet
Negotiable commission for residential
Advance payments made to an agent to cover expected cash outlays in carrying out the agency.
Within 3 days from acceptance of the offer (this must happen)

15. Principle or 3rd party
Provides for rent as a percentage of the tenants' gross income ( gross sales )
Alternative Minimum Tax - requires taxpayers - who make above a certain amount of gross income to - to figure taxes twice.
The Broker is the Agent of the seller. The salesperson is the sub-agent of the
A fee for rental information accepted in advance - or a promotional fee for a sale listing.

16. Bulk zoning
Zoning for density with open-space requirements as well as setback - parking - and height restrictions
Simultaneous ownership of a given piece of property by two or more persons - Tenancy in common; Joint tenancy; and Community property.
All beneficial rights that go with ownership of real property
The party required to prove a fact when an issue is in dispute

17. Cloud on the title

18. Federal Housing Administration - role
Real Estate Equity Trust
An act that requires recordings and publication of a sale not in the normal course of business.
Created in 1934 to provide mortgage insurance on loans made by FHA - approved lenders - part of HUD
The buyer's agreeing to be primarily liable on the loan while the seller has secondary liability

19. Deed of reconveyance
A clause in a mortgage or trust deed that the senior lienholder will retain lien priority in the event of a merger.
Federal National Mortgage Association
Deed from trustee to trustor - at the request of the beneficiary of trust (lender) - that returns title to the trustor on payment of indebtedness
Real Estate Settlement Procedures Act - requires special information booklet - requires good faith estimate - requires uniform settlement statement

20. Appurtenance
Deed from trustee to trustor - at the request of the beneficiary of trust (lender) - that returns title to the trustor on payment of indebtedness
Something that belongs to and goes with a property - such as structure and easement rights
Foreign Investments in Real Property Tax Act
A mortgage or trust deed covering more than one property

21. Bulk Sales Act
An act that requires recordings and publication of a sale not in the normal course of business.
Nonjudicial process for resolution of disputes either by agreement or mandated by law.
Within 3 days from acceptance of the offer (this must happen)
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.

22. Acceleration upon default
The revocation of a specific property grant in a will by disposing of said property prior to death.
All payments become due upon default of payment. In California - the debtor can cure the default by catching up on payments prior to foreclosure.
A formal declaration of the truthfulness of a statement - given in lieu of a verification.
Foreign Investments in Real Property Tax Act

23. FHLMC
Title or interest acquired by the grantor after property has been conveyed.
Federal Home Loan Mortgage Corporation
Joint ownership of real property by two or more persons - each of whom has an undivided interest (not necessarily equal) without right of survivorship
An action to remove a nuisance

24. Alquist-Priolo Special Studies Zone Act
Provides for project approval in close proximity to earthquake faults - as well as disclosures to buyers.
An action to remove a nuisance
Must be disclosed to the buyer if
Act of a party that can be treated as a breach of contract because it makes performance by that party impossible.

25. FIRPTA
Foreign Investments in Real Property Tax Act
The sudden removal of land by action of water - such as a river changing course.
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
Within 3 days from acceptance of the offer (this must happen)

26. AIDA
Use of personal property to secure or guarantee a promissory note.
Federal Trade Commission
Negotiable commission for residential
Time tested model used in writing ads - Attention - Interest - Desire - Action

27. Percentage lease

28. Concurrent ownership or co-ownership
A contract based on an illegal consideration
Transfer of all interest in a contract or lease.
Real Estate Equity Trust
Simultaneous ownership of a given piece of property by two or more persons - Tenancy in common; Joint tenancy; and Community property.

29. TILA
The Broker is the Agent of the seller. The salesperson is the
Truth in Lending Act - Implemented by Regulation Z set by the Federal Trade Commission
Agency in which an agent has a financial interest in the subject matter of the agency.
real estate

30. Bundle of rights
All beneficial rights that go with ownership of real property
Agency in which an agent has a financial interest in the subject matter of the agency.
Provides for project approval in close proximity to earthquake faults - as well as disclosures to buyers.
The Broker is the Agent of the seller. The salesperson is the

31. MARIA
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
Zoning for beauty or appearance. Appearance of zone may have a pattern in architecture - colors - and styles.
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.

32. Bilateral contract
1 square mile
A mutual exchange of promises.
The seller's signature
Lender (or seller) in a trust deed loan situation

33. Adverse 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.
A method to acquire title. It requires five-year - open - notorious - uninterrupted use under some claim of right - and the payment of taxes.
Personal property transferred by will
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

34. Township
By recorded map; by U. S. Government section and township; and by metes and bounds
Competitive Market Analysis
Grid horizontal lines (US Government and township)
36 individual square miles or 640 acres.

35. The maximum commission a broker may charge a seller for the sale of residential income property
The revocation of a specific property grant in a will by disposing of said property prior to death.
Negotiable commission for residential
Truth in Lending Act - Implemented by Regulation Z set by the Federal Trade Commission
Instrument used to secure a loan on personal property is called

36. Assignment
The revocation of a specific property grant in a will by disposing of said property prior to death.
Transfer of all interest in a contract or lease.
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
36 individual square miles or 640 acres.

37. Examples functional obsolescence
Something that belongs to and goes with a property - such as structure and easement rights
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
Real Estate Equity Trust

38. Chattel mortgag
Use of personal property to secure or guarantee a promissory note.
Government National Mortgage Association
Changes in escrow instructions - which require the agreement of both the buyer and seller.
8 Ways to terminate an easement Abandonment - Destruction - Adverse Possession - Merger - Express Agreement - Lawsuit - Estoppel - Excessive use

39. Social obsolescence
Two or more persons - as partners - own property for partnership purposes
Any loss of value due to conditions outside of the property itself. aka economic obsolescence
Lender (or seller) in a trust deed loan situation
The revocation of a specific property grant in a will by disposing of said property prior to death.

40. Attractive nuisance doctrine
Offer the seller suggestions on ways to show a home for maximum positive first impression
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.
An owner has a duty to reasonably protect children from injury when the premises are likely to attract children.
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.

41. Liquidated damages
The sudden removal of land by action of water - such as a river changing course.
Offer the seller suggestions on ways to show a home for maximum positive first impression
Real Estate Mortgage Trust
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

42. Accretion
Licensed real estate agent who can deal directly with principals and employ licensed real estate salepersons
A final payment that is more than twice the amount of the lowest payment.
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
The gradual buildup of land by natural causes ( generally by action of water )

43. After-acquired title
The seller's signature
Federal National Mortgage Association
Parallel wooden members used to support floor and ceiling loads are called
Title or interest acquired by the grantor after property has been conveyed.

44. Blind ad
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
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
Grid horizontal lines (US Government and township)

45. Alteration
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.
Changes in escrow instructions - which require the agreement of both the buyer and seller.
A change made to a note or contract by one of the parties without the consent of the other.
The Fiduciary Duty owed to a principal (seller) by the Agent (broker) obedience - loyalty - disclosure - confidentiality - accountability - reasonable use of (skill - training - experience - competency)

46. Affirmation
Mortgages in California
A formal declaration of the truthfulness of a statement - given in lieu of a verification.
A final payment that is more than twice the amount of the lowest payment.
Alternative Minimum Tax - requires taxpayers - who make above a certain amount of gross income to - to figure taxes twice.

47. Township
Department of Housing and Urban Development
A quitclaim deed conveys only the present right - title and interest of the
36 individual square miles or 640 acres.
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.

48. Beneficiary statement
Statement by beneficiary as to balance due on loan.
Buyer to take possession 3 days after the close of escrow
Lender (or seller) in a trust deed loan situation
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

49. Attorney-in-fact
Mortgages in California
Real Property Securities Dealer
Real Estate Investment Trust
A person appointed as an agent under a power of attorney

50. MLS
Must be disclosed to the buyer if
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
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.
Multiple Listing Service