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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. Bilateral contract
A person appointed as an agent under a power of attorney
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
Legal relationship under which an agent represents another - or principal - in dealings with third parties.
A mutual exchange of promises.

2. Encumbrance
The gradual buildup of land by natural causes ( generally by action of water )
The Broker is the Agent of the seller. The salesperson is the
Created in 1934 to provide mortgage insurance on loans made by FHA - approved lenders - part of HUD
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

3. Social obsolescence
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
Federal Trade Commission
Any loss of value due to conditions outside of the property itself. aka economic obsolescence
The gradual buildup of land by natural causes ( generally by action of water )

4. Tax delinquent real property not redeemed by the owner during the five-year statutory redemption period...
Financial Institute Reform - Recovery - and Enforcement Act of 1989
Legal relationship under which an agent represents another - or principal - in dealings with third parties.
A mortgage or trust deed covering more than one property
is deeded to the county

5. REMT
The gradual buildup of land by natural causes ( generally by action of water )
Real Estate Mortgage Trust
Negotiable commission for residential
Grid of vertical lines (US Government and township)

6. NAIFA
Items used to qualify a buyer for the proper debt:income ratio. Usually 1/3 of gross income. principle - interest - taxes - insurance
The sudden removal of land by action of water - such as a river changing course.
A mortgage or trust deed covering more than one property
National Association of Independent Fee Appraisers

7. Beneficiary
Changes in escrow instructions - which require the agreement of both the buyer and seller.
Time tested model used in writing ads - Attention - Interest - Desire - Action
A procedural act that must be complied with prior to revocation - suspension - or denial of a real estate license.
Lender (or seller) in a trust deed loan situation

8. 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
Use of personal property to secure or guarantee a promissory note.
Offer the seller suggestions on ways to show a home for maximum positive first impression
One broker

9. REIT
Alternative Minimum Tax - requires taxpayers - who make above a certain amount of gross income to - to figure taxes twice.
Real Estate Investment Trust
Taxes based on value - such as property tax. ( Latin - according to value )
A disclosure statement given to borrowers by mortgage loan brokers that provides information on all costs - fees - and loan terms.

10. Bilateral contract - p4p
Property owned by husband and wife
Promise for a promise.
Negotiable commission for residential
Any loss of value due to conditions outside of the property itself. aka economic obsolescence

11. Ad valorum taxes
The Broker is the Agent of the seller. The salesperson is the
Grid of vertical lines (US Government and township)
Taxes based on value - such as property tax. ( Latin - according to value )
The party required to prove a fact when an issue is in dispute

12. Township
Part of the Business and Professions Code covering loan costs - commissions - and payment requirements relating to loan brokerage activity.
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 note that will liquidate itself over its term in equal installments
36 individual square miles or 640 acres.

13. Joint tenancy - TTIP
Alternative Minimum Tax - requires taxpayers - who make above a certain amount of gross income to - to figure taxes twice.
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
1 square mile
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. Tenancy in partnershipm
A covenant under which an owner is required to do something - such as build within a stated period of time.
A person appointed by the court to administer the estate of a deceased person.
Two or more persons - as partners - own property for partnership purposes
Nonjudicial process for resolution of disputes either by agreement or mandated by law.

15. Community Property
Government National Mortgage Association
Real Estate Educators Association
Loss in value from any cause? is a common definition
Property owned by husband and wife

16. Affirmation
A procedural act that must be complied with prior to revocation - suspension - or denial of a real estate license.
A formal declaration of the truthfulness of a statement - given in lieu of a verification.
Notice that has been expressly given and is known to a party
A contract based on an illegal consideration

17. Sole ownership
Person holding title to real property in severalty
The sudden removal of land by action of water - such as a river changing course.
The revocation of a specific property grant in a will by disposing of said property prior to death.
One broker

18. Assignment of lease
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
Cconsists of all property acquired by a husband and wife - or either - during a valid marriage - other than separate property
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 copy of all recorded documents dealing with a property. Attorneys give title opinions based on abstracts.

19. Separate property of a married person includes...
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
Personal property transferred by will
Real Estate Investment Trust
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.

20. Concurrent ownership or co-ownership
Property owned by husband and wife
A prejudgment lien that can be obtained to ensure the availability of property for execution after a judgment is obtained.
The sudden removal of land by action of water - such as a river changing course.
Simultaneous ownership of a given piece of property by two or more persons - Tenancy in common; Joint tenancy; and Community property.

21. Breach of contract
Failure to comply with a material term or provision of a contract
Transfer of all rights under a contract to a third party. Assignor remains secondarily liability.
A person appointed by the court to administer the estate of a deceased person.
Commission is only controlled by law under two situations. One being the Real Property Loan Law and...

22. The maximum commission a broker may charge a seller for the sale of residential income property
A quitclaim deed conveys only the present right - title and interest of the
Negotiable commission for residential
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
The Broker is the Agent of the seller. The salesperson is the sub-agent of the

23. RPSD
Real Property Securities Dealer
The Broker is the Agent of the seller. The salesperson is the
Instrument used to secure a loan on personal property is called
is deeded to the county

24. California has three sets of base lines and meridian
Statement of the actual settlement costs. Provided by US Dept of HUD.
A disclosure statement given to borrowers by mortgage loan brokers that provides information on all costs - fees - and loan terms.
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.
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. Open end mortgage
Zoning for beauty or appearance. Appearance of zone may have a pattern in architecture - colors - and styles.
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.
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
A change made to a note or contract by one of the parties without the consent of the other.

26. Balloon payment
One broker
Competitive Market Analysis
A final payment that is more than twice the amount of the lowest payment.
All beneficial rights that go with ownership of real property

27. The Recovery Account
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
real estate
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 note that will liquidate itself over its term in equal installments

28. FTC
Inducing panic selling based on fear of the entry of persons of another race - color - religion - or ancestry into the area.
Law prohibits discrimination in supplying housing accommodations because of race - color - religion - sex - marital status - national origin - ancestry - age - familial status or disability.
Promise for a promise.
Federal Trade Commission

29. Staging
Changes in escrow instructions - which require the agreement of both the buyer and seller.
Offer the seller suggestions on ways to show a home for maximum positive first impression
Failure to comply with a material term or provision of a contract
All payments become due upon default of payment. In California - the debtor can cure the default by catching up on payments prior to foreclosure.

30. Appurtenance
Vertical in the township and section system
A quitclaim deed conveys only the present right - title and interest of the
Nonjudicial process for resolution of disputes either by agreement or mandated by law.
Something that belongs to and goes with a property - such as structure and easement rights

31. FSBO's
Mortgages in California
Real Estate Educators Association
Owner assigns right to collect rent to another. Usually given to a lienholder when owner is delinquent in rent
For Sale By Owners

32. Ownership of real property
Principal + Interest + Monthly taxes and insurance + homeowners assoc. fee = 25% - 30% gross monthly income
Deed from trustee to trustor - at the request of the beneficiary of trust (lender) - that returns title to the trustor on payment of indebtedness
Federal National Mortgage Association
Separate ownershi and Concurrent ownership; a. Tenancy in common; b. Joint tenancy; and c. Community property.

33. Assignment
A final payment that is more than twice the amount of the lowest payment.
Transfer of all interest in a contract or lease.
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
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

34. Broker's loan statement
A mutual exchange of promises.
A disclosure statement given to borrowers by mortgage loan brokers that provides information on all costs - fees - and loan terms.
Notice that has been expressly given and is known to a party
43560 square feet

35. A valid deed does not have to contain
Mortgages in California
Horizontal in the township and section system
An acknowledgment of the grantor's signature
The revocation of a specific property grant in a will by disposing of said property prior to death.

36. Federal Truth-in-Lending Law
Finance charge and annual percentage rate - Regulation Z
Horizontal in the township and section system
Something that belongs to and goes with a property - such as structure and easement rights
All payments become due upon default of payment. In California - the debtor can cure the default by catching up on payments prior to foreclosure.

37. Affirmative easement
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.
Created in 1934 to provide mortgage insurance on loans made by FHA - approved lenders - part of HUD
Easement that gives the dominant tenement owner the right to use the servient tenement.
Horizontal in the township and section system

38. amortized note
A mortgage or trust deed covering more than one property
A note that will liquidate itself over its term in equal installments
Any loss of value due to conditions outside of the property itself. aka economic obsolescence
Joint tenants have: unity of time - unity of title - unity of interest - unity of possession

39. Aesthetic zoning
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
Zoning for beauty or appearance. Appearance of zone may have a pattern in architecture - colors - and styles.
Real Estate Investment Trust
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.

40. A valid bill of sale must contain...
Joint tenants have: unity of time - unity of title - unity of interest - unity of possession
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
The seller's signature
Any loss of value due to conditions outside of the property itself. aka economic obsolescence

41. Uniform Settlement Statement
Advance payments made to an agent to cover expected cash outlays in carrying out the agency.
Statement of the actual settlement costs. Provided by US Dept of HUD.
The party required to prove a fact when an issue is in dispute
Act of a party that can be treated as a breach of contract because it makes performance by that party impossible.

42. Federal Housing Administration - role
A mutual exchange of promises.
Created in 1934 to provide mortgage insurance on loans made by FHA - approved lenders - part of HUD
Within 3 days from acceptance of the offer (this must happen)
Transfer of all interest in a contract or lease.

43. Administrative agency
An action to remove a nuisance
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.
A government agency that makes rules and regulations to carry out the law.
The Fiduciary Duty owed to a principal (seller) by the Agent (broker) obedience - loyalty - disclosure - confidentiality - accountability - reasonable use of (skill - training - experience - competency)

44. AMT
Alternative Minimum Tax - requires taxpayers - who make above a certain amount of gross income to - to figure taxes twice.
Commission is only controlled by law under two situations. One being the Real Property Loan Law and...
One who represents another in an agency relationship.
Financial Institute Reform - Recovery - and Enforcement Act of 1989

45. Budle of rights - 5 things
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
Any loss of value due to conditions outside of the property itself. aka social obsolescence
Federal Trade Commission
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.

46. Township
Transfer of all interest in a contract or lease.
Grid horizontal lines (US Government and township)
Notice that has been expressly given and is known to a party
Mortgages in California

47. Tenancy in common
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
Person holding title to real property in severalty
Use of personal property to secure or guarantee a promissory note.
The revocation of a specific property grant in a will by disposing of said property prior to death.

48. MARIA
Prohibits discrimination in a place of public accommodation based on an individual's physical or mental disabilities.
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
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. Institutional advertising
Attempt to establish a firm's identity to the public
An owner has a duty to reasonably protect children from injury when the premises are likely to attract children.
Licensed real estate agent who can deal directly with principals and employ licensed real estate salepersons
National Association of Independent Fee Appraisers

50. Article 7
The party required to prove a fact when an issue is in dispute
Principal + Interest + Monthly taxes and insurance + homeowners assoc. fee = 25% - 30% gross monthly income
Part of the Business and Professions Code covering loan costs - commissions - and payment requirements relating to loan brokerage activity.
An act that requires recordings and publication of a sale not in the normal course of business.

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