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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. Bulk zoning
Zoning for density with open-space requirements as well as setback - parking - and height restrictions
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.
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
Notice that has been expressly given and is known to a party

2. Separate property of a married person includes...
Items used to qualify a buyer for the proper debt:income ratio. Usually 1/3 of gross income. principle - interest - taxes - insurance
National Association of Independent Fee Appraisers
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 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.

3. Federal Fair Housing Act - Title VIII of the Civil Rights Act of 1968
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
Something that belongs to and goes with a property - such as structure and easement rights
An owner has a duty to reasonably protect children from injury when the premises are likely to attract children.
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

4. Staging
Offer the seller suggestions on ways to show a home for maximum positive first impression
Law prohibits discrimination in supplying housing accommodations because of race - color - religion - sex - marital status - national origin - ancestry - age - familial status or disability.
An advertisement that fails to reveal that the advertiser is an agent and not a principal
Licensed real estate agent who can deal directly with principals and employ licensed real estate salepersons

5. Abatement
An action to remove a nuisance
NE - North East
Deed from trustee to trustor - at the request of the beneficiary of trust (lender) - that returns title to the trustor on payment of indebtedness
A person appointed by the court to administer the estate of a deceased person.

6. If property is sold while in probate
Commission is only controlled by law under two situations. One being the Real Property Loan Law and...
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
Mortgages in California
By recorded map; by U. S. Government section and township; and by metes and bounds

7. Bilateral contract
Personal property transferred by will
A mutual exchange of promises.
Simultaneous ownership of a given piece of property by two or more persons - Tenancy in common; Joint tenancy; and Community property.
36 individual square miles or 640 acres.

8. Sole ownership
Real Estate Equity Trust
Person holding title to real property in severalty
Part of the Business and Professions Code governing transactions in trust deeds and real property sales contracts
Loss of value due to adverse factors within a structure that affect the marketability of the property.

9. FSBO's
For Sale By Owners
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 person appointed by the court to administer the estate of a deceased person.
All payments become due upon default of payment. In California - the debtor can cure the default by catching up on payments prior to foreclosure.

10. REIT
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
A person appointed as an agent under a power of attorney
Real Estate Investment Trust
The Broker is the Agent of the seller. The salesperson is the sub-agent of the

11. Bilateral contract - p4p
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
Act of a party that can be treated as a breach of contract because it makes performance by that party impossible.
A person appointed as an agent under a power of attorney
Promise for a promise.

12. Salesperson can only work for...
Government National Mortgage Association
One broker
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
Time tested model used in writing ads - Attention - Interest - Desire - Action

13. Affirmative easement
Easement that gives the dominant tenement owner the right to use the servient tenement.
Use of personal property to secure or guarantee a promissory note.
For Sale By Owners
Failure to comply with a material term or provision of a contract

14. Instrument
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 Fiduciary Duty owed to a principal (seller) by the Agent (broker) obedience - loyalty - disclosure - confidentiality - accountability - reasonable use of (skill - training - experience - competency)
Cconsists of all property acquired by a husband and wife - or either - during a valid marriage - other than separate property
Sales prices of comparable properties

15. The Recovery Account
The Broker is the Agent of the seller. The salesperson is the sub-agent of the
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
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
An agreement specifying activities for which the agent is to be compensated. It would include provisions for an advance payment of fees.

16. Open end mortgage
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.
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.
A disclosure statement given to borrowers by mortgage loan brokers that provides information on all costs - fees - and loan terms.
A contract based on an illegal consideration

17. Township
Sales prices of comparable properties
Real Estate Mortgage Trust
Part of the Business and Professions Code covering loan costs - commissions - and payment requirements relating to loan brokerage activity.
Grid horizontal lines (US Government and township)

18. Bait and switch
Grid horizontal lines (US Government and township)
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
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
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.

19. Ademption
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.
An agreement specifying activities for which the agent is to be compensated. It would include provisions for an advance payment of fees.
The revocation of a specific property grant in a will by disposing of said property prior to death.
Multiple Listing Service

20. Federal Housing Administration - role
Failure to comply with a material term or provision of a contract
Nonjudicial process for resolution of disputes either by agreement or mandated by law.
Created in 1934 to provide mortgage insurance on loans made by FHA - approved lenders - part of HUD
Owner assigns right to collect rent to another. Usually given to a lienholder when owner is delinquent in rent

21. Grantor - quitclaim
A quitclaim deed conveys only the present right - title and interest of the
Federal Home Loan Mortgage Corporation
Negotiable commission for residential
Alternative Minimum Tax - requires taxpayers - who make above a certain amount of gross income to - to figure taxes twice.

22. GNMA
Government National Mortgage Association
Federal Trade Commission
Property owned by husband and wife
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

23. REEA
Real Estate Educators Association
Owner assigns right to collect rent to another. Usually given to a lienholder when owner is delinquent in rent
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 procedural act that must be complied with prior to revocation - suspension - or denial of a real estate license.

24. CoCa CoLa
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.
Elements of a contract - mutual COnsent - CApacity - COnsideration - LAwful purpose ( must be in writing )
Transfer of all rights under a contract to a third party. Assignor remains secondarily liability.
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.

25. Encumbrance

26. TTIP
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
Joint tenants have: unity of time - unity of title - unity of interest - unity of possession
Real Estate Investment Trust
Federal Trade Commission

27. Recording Act of California
All beneficial rights that go with ownership of real property
A government agency that makes rules and regulations to carry out the law.
Department of Housing and Urban Development
After being acknowledged - any instrument or judgment affecting the title to or possession of real property may be recorded

28. Abstract of title
A copy of all recorded documents dealing with a property. Attorneys give title opinions based on abstracts.
Nonjudicial process for resolution of disputes either by agreement or mandated by law.
All beneficial rights that go with ownership of real property
Real Estate Investment Trust

29. OLDCAR
Parallel wooden members used to support floor and ceiling loads are called
Attempt to establish a firm's identity to the public
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
The Fiduciary Duty owed to a principal (seller) by the Agent (broker) obedience - loyalty - disclosure - confidentiality - accountability - reasonable use of (skill - training - experience - competency)

30. Principle or 3rd party
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
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 quitclaim deed conveys only the present right - title and interest of the
The Broker is the Agent of the seller. The salesperson is the sub-agent of the

31. Blockbusting
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
Must be disclosed to the buyer if
Inducing panic selling based on fear of the entry of persons of another race - color - religion - or ancestry into the area.
Any loss of value due to conditions outside of the property itself. aka social obsolescence

32. Real property is synonymous with...
The revocation of a specific property grant in a will by disposing of said property prior to death.
A loan to be completely repaid - principal and interest - by a series of regular equal installment payments
A covenant under which an owner is required to do something - such as build within a stated period of time.
real estate

33. Federal Truth-in-Lending Law
Finance charge and annual percentage rate - Regulation Z
The Broker is the Agent of the seller. The salesperson is the sub-agent of the
Negotiable commission for residential
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.

34. Article 7
Instrument used to secure a loan on personal property is called
Act of a party that can be treated as a breach of contract because it makes performance by that party impossible.
Foreign Investments in Real Property Tax Act
Part of the Business and Professions Code covering loan costs - commissions - and payment requirements relating to loan brokerage activity.

35. Article 5
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 note that will liquidate itself over its term in equal installments
Negotiable commission for residential
Part of the Business and Professions Code governing transactions in trust deeds and real property sales contracts

36. FNMA
Principal + Interest + Monthly taxes and insurance + homeowners assoc. fee = 25% - 30% gross monthly income
Federal National Mortgage Association
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
A formal declaration of the truthfulness of a statement - given in lieu of a verification.

37. Agent
One who represents another in an agency relationship.
Within 3 days from acceptance of the offer (this must happen)
Vertical in the township and section system
Simultaneous ownership of a given piece of property by two or more persons - Tenancy in common; Joint tenancy; and Community property.

38. Acceleration upon default
1 square mile
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.
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

39. Anticipatory breach
Any loss of value due to conditions outside of the property itself. aka social obsolescence
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.
Act of a party that can be treated as a breach of contract because it makes performance by that party impossible.
Licensed real estate agent who can deal directly with principals and employ licensed real estate salepersons

40. Affirmative covenant
A covenant under which an owner is required to do something - such as build within a stated period of time.
Real Estate Settlement Procedures Act - requires special information booklet - requires good faith estimate - requires uniform settlement statement
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
An agreement specifying activities for which the agent is to be compensated. It would include provisions for an advance payment of fees.

41. PITI
The Broker is the Agent of the seller. The salesperson is the sub-agent of the
Items used to qualify a buyer for the proper debt:income ratio. Usually 1/3 of gross income. principle - interest - taxes - insurance
A person appointed by the court to administer the estate of a deceased person.
The buyer's agreeing to be primarily liable on the loan while the seller has secondary liability

42. REET
A final payment that is more than twice the amount of the lowest payment.
Real Estate Equity Trust
One broker
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

43. Antimerger clause
A clause in a mortgage or trust deed that the senior lienholder will retain lien priority in the event of a merger.
Notice that has been expressly given and is known to a party
Part of the Business and Professions Code covering loan costs - commissions - and payment requirements relating to loan brokerage activity.
Buyer to take possession 3 days after the close of escrow

44. Beneficiary
Lender (or seller) in a trust deed loan situation
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
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
A contract based on an illegal consideration

45. Farm
Title or interest acquired by the grantor after property has been conveyed.
1 square mile
Buyer to take possession 3 days after the close of escrow
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

46. The maximum commission a broker may charge a seller for the sale of residential income property
Person holding title to real property in severalty
A formal declaration of the truthfulness of a statement - given in lieu of a verification.
Two or more persons - as partners - own property for partnership purposes
Negotiable commission for residential

47. Assignment of contract
Title or interest acquired by the grantor after property has been conveyed.
An agreement specifying activities for which the agent is to be compensated. It would include provisions for an advance payment of fees.
A mutual exchange of promises.
Transfer of all rights under a contract to a third party. Assignor remains secondarily liability.

48. MARIA
NE - North East
Attempt to establish a firm's identity to the public
real estate
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

49. Arbitration
The gradual buildup of land by natural causes ( generally by action of water )
After being acknowledged - any instrument or judgment affecting the title to or possession of real property may be recorded
Nonjudicial process for resolution of disputes either by agreement or mandated by law.
An agreement specifying activities for which the agent is to be compensated. It would include provisions for an advance payment of fees.

50. Assignment
Transfer of all interest in a contract or lease.
NE - North East
Easement that gives the dominant tenement owner the right to use the servient tenement.
One who represents another in an agency relationship.