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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. Township
Ownership by one person
36 individual square miles or 640 acres.
Truth in Lending Act - Implemented by Regulation Z set by the Federal Trade Commission
Mortgages in California

2. Anticipatory breach
Act of a party that can be treated as a breach of contract because it makes performance by that party impossible.
Lender (or seller) in a trust deed loan situation
Real Estate Mortgage Trust
Provides for rent as a percentage of the tenants' gross income ( gross sales )

3. Liquidated damages
Copies of all listings - deposit receipts - canceled checks - and trust records must be retained by a licensed real estate broker
The Broker is the Agent of the seller. The salesperson is the
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
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.

4. Monthly house payment (ratio standard)
Agency in which an agent has a financial interest in the subject matter of the agency.
Vertical in the township and section system
A disclosure statement given to borrowers by mortgage loan brokers that provides information on all costs - fees - and loan terms.
Principal + Interest + Monthly taxes and insurance + homeowners assoc. fee = 25% - 30% gross monthly income

5. Acceleration upon default
A final payment that is more than twice the amount of the lowest payment.
National Association of Independent Fee Appraisers
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 note that will liquidate itself over its term in equal installments

6. Salesperson can only work for...
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
One broker
Competitive Market Analysis
Part of the Business and Professions Code covering loan costs - commissions - and payment requirements relating to loan brokerage activity.

7. Adverse possession
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.
A method to acquire title. It requires five-year - open - notorious - uninterrupted use under some claim of right - and the payment of taxes.
In a legal sales contract - the seller is often referred to as the
Must be disclosed to the buyer if

8. Housing Financial Discrimination Act of 1977 (Holden Act)
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 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.
Loss of value due to adverse factors within a structure that affect the marketability of the property.
One who represents another in an agency relationship.

9. Bulk Sales Act
Agency in which an agent has a financial interest in the subject matter of the agency.
An act that requires recordings and publication of a sale not in the normal course of business.
The gradual buildup of land by natural causes ( generally by action of water )
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

10. Separate property of a married person includes...
Alternative Minimum Tax - requires taxpayers - who make above a certain amount of gross income to - to figure taxes twice.
Created in 1934 to provide mortgage insurance on loans made by FHA - approved lenders - part of HUD
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
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

11. 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.
Real Estate Equity Trust
An act that requires recordings and publication of a sale not in the normal course of business.
An acknowledgment of the grantor's signature

12. HUD
Department of Housing and Urban Development
A contract based on an illegal consideration
A covenant under which an owner is required to do something - such as build within a stated period of time.
Real Estate Equity Trust

13. What trust deeds in California are called..
A clause in a mortgage or trust deed that the senior lienholder will retain lien priority in the event of a merger.
Alternative Minimum Tax - requires taxpayers - who make above a certain amount of gross income to - to figure taxes twice.
Mortgages in California
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

14. Assumable loan
An advertisement that fails to reveal that the advertiser is an agent and not a principal
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.
36 individual square miles or 640 acres.
Horizontal in the township and section system

15. Tenancy in common
Federal National Mortgage Association
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
Negotiable commission for residential
Failure to comply with a material term or provision of a contract

16. If property is sold while in probate
Title or interest acquired by the grantor after property has been conveyed.
Commission is only controlled by law under two situations. One being the Real Property Loan Law and...
Ownership by one person
An action to remove a nuisance

17. 'As is'
Real Estate Equity Trust
Any loss of value due to conditions outside of the property itself. aka economic obsolescence
Promise for a promise.
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.

18. Institutional advertising

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19. Appurtenance
Something that belongs to and goes with a property - such as structure and easement rights
Joint tenants have: unity of time - unity of title - unity of interest - unity of possession
The Fiduciary Duty owed to a principal (seller) by the Agent (broker) obedience - loyalty - disclosure - confidentiality - accountability - reasonable use of (skill - training - experience - competency)
Items used to qualify a buyer for the proper debt:income ratio. Usually 1/3 of gross income. principle - interest - taxes - insurance

20. After-acquired title
A prejudgment lien that can be obtained to ensure the availability of property for execution after a judgment is obtained.
Property owned by husband and wife
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
Title or interest acquired by the grantor after property has been conveyed.

21. Principle or 3rd party
Real Property Securities Dealer
Something that belongs to and goes with a property - such as structure and easement rights
Transfer of all interest in a contract or lease.
The Broker is the Agent of the seller. The salesperson is the sub-agent of the

22. Avulsion
The sudden removal of land by action of water - such as a river changing course.
A prejudgment lien that can be obtained to ensure the availability of property for execution after a judgment is obtained.
One who represents another in an agency relationship.
Finance charge and annual percentage rate - Regulation Z

23. Actual notice
Federal Trade Commission
Simultaneous ownership of a given piece of property by two or more persons - Tenancy in common; Joint tenancy; and Community property.
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...

24. Instrument
Financial Institute Reform - Recovery - and Enforcement Act of 1989
Real Estate Settlement Procedures Act - requires special information booklet - requires good faith estimate - requires uniform settlement statement
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
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.

25. Unruh Civil Rights Act - California
An action to remove a nuisance
In a legal sales contract - the seller is often referred to as the
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
1 square mile

26. Acknowledgment

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27. TILA
NE - North East
An action to remove a nuisance
Truth in Lending Act - Implemented by Regulation Z set by the Federal Trade Commission
Loss of value due to adverse factors within a structure that affect the marketability of the property.

28. Ownership of real property
An agreement specifying activities for which the agent is to be compensated. It would include provisions for an advance payment of fees.
National Association of Independent Fee Appraisers
Part of the Business and Professions Code covering loan costs - commissions - and payment requirements relating to loan brokerage activity.
Separate ownershi and Concurrent ownership; a. Tenancy in common; b. Joint tenancy; and c. Community property.

29. Tax delinquent real property not redeemed by the owner during the five-year statutory redemption period...
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
Foreign Investments in Real Property Tax Act
Advance payments made to an agent to cover expected cash outlays in carrying out the agency.
is deeded to the county

30. Real property is synonymous with...
Prohibits discrimination in a place of public accommodation based on an individual's physical or mental disabilities.
A mortgage or trust deed covering more than one property
real estate
The gradual buildup of land by natural causes ( generally by action of water )

31. Aesthetic zoning
Zoning for beauty or appearance. Appearance of zone may have a pattern in architecture - colors - and styles.
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.
Title or interest acquired by the grantor after property has been conveyed.
A formal declaration of the truthfulness of a statement - given in lieu of a verification.

32. Joists
Licensed real estate agent who can deal directly with principals and employ licensed real estate salepersons
Parallel wooden members used to support floor and ceiling loads are called
is deeded to the county
Promise for a promise.

33. AIDA
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
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
Time tested model used in writing ads - Attention - Interest - Desire - Action
After being acknowledged - any instrument or judgment affecting the title to or possession of real property may be recorded

34. A broker selling a property on which he holds an option should notify the purchaser...
that he is acting as an optionor
Owner assigns right to collect rent to another. Usually given to a lienholder when owner is delinquent in rent
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
Changes in escrow instructions - which require the agreement of both the buyer and seller.

35. Attorney-in-fact
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.
Title or interest acquired by the grantor after property has been conveyed.
A person appointed as an agent under a power of attorney
Any loss of value due to conditions outside of the property itself. aka social obsolescence

36. Void
A contract based on an illegal consideration
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 statement made before a notary or court officer that the signing of a document was the signer's own free act.
A procedural act that must be complied with prior to revocation - suspension - or denial of a real estate license.

37. REMT
Real Estate Mortgage Trust
Title or interest acquired by the grantor after property has been conveyed.
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
Promise for a promise.

38. FNMA
Federal National Mortgage Association
An act that requires recordings and publication of a sale not in the normal course of business.
Negotiable commission for residential
Any loss of value due to conditions outside of the property itself. aka economic obsolescence

39. Bilateral contract
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
Property owned by husband and wife
A mutual exchange of promises.
An owner has a duty to reasonably protect children from injury when the premises are likely to attract children.

40. Budle of rights - 5 things

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41. The maximum commission a broker may charge a seller for the sale of residential income property
Any loss of value due to conditions outside of the property itself. aka social obsolescence
In a legal sales contract - the seller is often referred to as the
Federal Trade Commission
Negotiable commission for residential

42. Burden of proof
Prohibits discrimination in a place of public accommodation based on an individual's physical or mental disabilities.
Cconsists of all property acquired by a husband and wife - or either - during a valid marriage - other than separate property
The party required to prove a fact when an issue is in dispute
All payments become due upon default of payment. In California - the debtor can cure the default by catching up on payments prior to foreclosure.

43. Ademption
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.
One who represents another in an agency relationship.
All payments become due upon default of payment. In California - the debtor can cure the default by catching up on payments prior to foreclosure.

44. Blanket encumbrance
Sales prices of comparable properties
A mortgage or trust deed covering more than one property
An agreement specifying activities for which the agent is to be compensated. It would include provisions for an advance payment of fees.
Real Property Securities Dealer

45. Affirmative easement
Part of the Business and Professions Code governing transactions in trust deeds and real property sales contracts
The Fiduciary Duty owed to a principal (seller) by the Agent (broker) obedience - loyalty - disclosure - confidentiality - accountability - reasonable use of (skill - training - experience - competency)
Alternative Minimum Tax - requires taxpayers - who make above a certain amount of gross income to - to figure taxes twice.
Easement that gives the dominant tenement owner the right to use the servient tenement.

46. Antimerger clause
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
A clause in a mortgage or trust deed that the senior lienholder will retain lien priority in the event of a merger.
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
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

47. Ranges
1 square mile
Competitive Market Analysis
An act that requires recordings and publication of a sale not in the normal course of business.
Grid of vertical lines (US Government and township)

48. Which corner does the township numbering system start in?
The gradual buildup of land by natural causes ( generally by action of water )
NE - North East
After being acknowledged - any instrument or judgment affecting the title to or possession of real property may be recorded
Horizontal in the township and section system

49. Assuming a loa

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50. Alquist-Priolo Special Studies Zone Act
Provides for project approval in close proximity to earthquake faults - as well as disclosures to buyers.
A change made to a note or contract by one of the parties without the consent of the other.
Real Property Securities Dealer
Principal + Interest + Monthly taxes and insurance + homeowners assoc. fee = 25% - 30% gross monthly income