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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. 640 acres =
The sudden removal of land by action of water - such as a river changing course.
Statement by beneficiary as to balance due on loan.
1 square mile
Alternative Minimum Tax - requires taxpayers - who make above a certain amount of gross income to - to figure taxes twice.

2. Acknowledgment

3. Assumable loan
Any loss of value due to conditions outside of the property itself. aka economic obsolescence
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.
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 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

4. Broker
Cconsists of all property acquired by a husband and wife - or either - during a valid marriage - other than separate property
Licensed real estate agent who can deal directly with principals and employ licensed real estate salepersons
Person holding title to real property in severalty
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

5. Anticipatory breach
A government agency that makes rules and regulations to carry out the law.
Act of a party that can be treated as a breach of contract because it makes performance by that party impossible.
Real Estate Educators Association
Government National Mortgage Association

6. FTC
Buyer to take possession 3 days after the close of escrow
Federal Trade Commission
National Association of Independent Fee Appraisers
A government agency that makes rules and regulations to carry out the law.

7. Agency by ratification

8. MLS
Notice that has been expressly given and is known to a party
Multiple Listing Service
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.
Federal Home Loan Mortgage Corporation

9. Housing Financial Discrimination Act of 1977 (Holden Act)
An advertisement that fails to reveal that the advertiser is an agent and not a principal
Joint tenants have: unity of time - unity of title - unity of interest - unity of possession
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
Advance payments made to an agent to cover expected cash outlays in carrying out the agency.

10. Agent of the broker
The Broker is the Agent of the seller. The salesperson is the
Title or interest acquired by the grantor after property has been conveyed.
Negotiable commission for residential
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

11. Meridians
After being acknowledged - any instrument or judgment affecting the title to or possession of real property may be recorded
Truth in Lending Act - Implemented by Regulation Z set by the Federal Trade Commission
The gradual buildup of land by natural causes ( generally by action of water )
Vertical in the township and section system

12. Township
Grid horizontal lines (US Government and township)
One broker
Competitive Market Analysis
A copy of all recorded documents dealing with a property. Attorneys give title opinions based on abstracts.

13. 43560 square feet =
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.
1 square mile
An agreement specifying activities for which the agent is to be compensated. It would include provisions for an advance payment of fees.
Financial Institute Reform - Recovery - and Enforcement Act of 1989

14. Americans with Disabilities Act

15. REET
An advertisement that fails to reveal that the advertiser is an agent and not a principal
Real Estate Equity Trust
Principal + Interest + Monthly taxes and insurance + homeowners assoc. fee = 25% - 30% gross monthly income
NE - North East

16. A valid bill of sale must contain...

17. Three C's (credit rules of thumb)
By recorded map; by U. S. Government section and township; and by metes and bounds
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.
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.
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

18. Major repairs in the past 5 years ( house for sale )...
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 Property Securities Dealer
Must be disclosed to the buyer if
Licensed real estate agent who can deal directly with principals and employ licensed real estate salepersons

19. RESPA
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
Instrument used to secure a loan on personal property is called
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

20. Accretion
A loan to be completely repaid - principal and interest - by a series of regular equal installment payments
A quitclaim deed conveys only the present right - title and interest of the
The gradual buildup of land by natural causes ( generally by action of water )
An act that requires recordings and publication of a sale not in the normal course of business.

21. Assignment of rent
Real Estate Investment Trust
Financial Institute Reform - Recovery - and Enforcement Act of 1989
Owner assigns right to collect rent to another. Usually given to a lienholder when owner is delinquent in rent
Negotiable commission for residential

22. HUD
An agreement specifying activities for which the agent is to be compensated. It would include provisions for an advance payment of fees.
A formal declaration of the truthfulness of a statement - given in lieu of a verification.
The Broker is the Agent of the seller. The salesperson is the
Department of Housing and Urban Development

23. Aesthetic zoning
Joint ownership of real property by two or more persons - each of whom has an undivided interest (not necessarily equal) without right of survivorship
Zoning for beauty or appearance. Appearance of zone may have a pattern in architecture - colors - and styles.
The Fiduciary Duty owed to a principal (seller) by the Agent (broker) obedience - loyalty - disclosure - confidentiality - accountability - reasonable use of (skill - training - experience - competency)
Federal Home Loan Mortgage Corporation

24. NAIFA
1 square mile
Attempt to establish a firm's identity to the public
National Association of Independent Fee Appraisers
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

25. OLDCAR
Advance payments made to an agent to cover expected cash outlays in carrying out the agency.
The Fiduciary Duty owed to a principal (seller) by the Agent (broker) obedience - loyalty - disclosure - confidentiality - accountability - reasonable use of (skill - training - experience - competency)
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
Promise for a promise.

26. CMA
Provides for rent as a percentage of the tenants' gross income ( gross sales )
Time tested model used in writing ads - Attention - Interest - Desire - Action
Competitive Market Analysis
Promise for a promise.

27. Community property
A procedural act that must be complied with prior to revocation - suspension - or denial of a real estate license.
Cconsists of all property acquired by a husband and wife - or either - during a valid marriage - other than separate property
NE - North East
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

28. FIRPTA
The Fiduciary Duty owed to a principal (seller) by the Agent (broker) obedience - loyalty - disclosure - confidentiality - accountability - reasonable use of (skill - training - experience - competency)
Elements of a contract - mutual COnsent - CApacity - COnsideration - LAwful purpose ( must be in writing )
Foreign Investments in Real Property Tax Act
Taxes based on value - such as property tax. ( Latin - according to value )

29. Percentage lease

30. Void
Foreign Investments in Real Property Tax Act
National Association of Independent Fee Appraisers
A covenant under which an owner is required to do something - such as build within a stated period of time.
A contract based on an illegal consideration

31. Blanket encumbrance
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
Multiple Listing Service
A mortgage or trust deed covering more than one property
Finance charge and annual percentage rate - Regulation Z

32. REIT
Real Estate Investment Trust
Mortgages in California
Alternative Minimum Tax - requires taxpayers - who make above a certain amount of gross income to - to figure taxes twice.
Real Estate Mortgage Trust

33. Alteration
An owner has a duty to reasonably protect children from injury when the premises are likely to attract children.
All beneficial rights that go with ownership of real property
Elements of a contract - mutual COnsent - CApacity - COnsideration - LAwful purpose ( must be in writing )
A change made to a note or contract by one of the parties without the consent of the other.

34. Staging
Any loss of value due to conditions outside of the property itself. aka social obsolescence
Offer the seller suggestions on ways to show a home for maximum positive first impression
A person appointed by the court to administer the estate of a deceased person.
A loan to be completely repaid - principal and interest - by a series of regular equal installment payments

35. Budle of rights - 5 things

36. TILA
All payments become due upon default of payment. In California - the debtor can cure the default by catching up on payments prior to foreclosure.
Principal + Interest + Monthly taxes and insurance + homeowners assoc. fee = 25% - 30% gross monthly income
Truth in Lending Act - Implemented by Regulation Z set by the 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

37. Bilateral contract - p4p
One broker
Taxes based on value - such as property tax. ( Latin - according to value )
A final payment that is more than twice the amount of the lowest payment.
Promise for a promise.

38. Balloon payment
Government National Mortgage Association
A final payment that is more than twice the amount of the lowest payment.
Changes in escrow instructions - which require the agreement of both the buyer and seller.
A contract based on an illegal consideration

39. Base lines
Federal National Mortgage Association
Horizontal in the township and section system
1 square mile
Legal relationship under which an agent represents another - or principal - in dealings with third parties.

40. Federal Fair Housing Act - Title VIII of the Civil Rights Act of 1968
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
A procedural act that must be complied with prior to revocation - suspension - or denial of a real estate license.
Changes in escrow instructions - which require the agreement of both the buyer and seller.
1 square mile

41. Real Property Loan Law
Commission is only controlled by law under two situations. One being If property is sold while in probate and...
NE - North East
A person appointed by the court to administer the estate of a deceased person.
The Broker is the Agent of the seller. The salesperson is the sub-agent of the

42. FNMA
Federal National Mortgage Association
real estate
Competitive Market Analysis
A procedural act that must be complied with prior to revocation - suspension - or denial of a real estate license.

43. amortized note
A procedural act that must be complied with prior to revocation - suspension - or denial of a real estate license.
Vertical in the township and section system
A note that will liquidate itself over its term in equal installments
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

44. Advance fee addendum
Copies of all listings - deposit receipts - canceled checks - and trust records must be retained by a licensed real estate broker
A statement made before a notary or court officer that the signing of a document was the signer's own free act.
An agreement specifying activities for which the agent is to be compensated. It would include provisions for an advance payment of fees.
For Sale By Owners

45. Bait and switch
Instrument used to secure a loan on personal property is called
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
Mortgages in California
Alternative Minimum Tax - requires taxpayers - who make above a certain amount of gross income to - to figure taxes twice.

46. Assignment
Transfer of all interest in a contract or lease.
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.
Real Estate Investment Trust
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

47. Agent
Truth in Lending Act - Implemented by Regulation Z set by the Federal Trade Commission
Real Estate Equity Trust
One who represents another in an agency relationship.
A clause in a mortgage or trust deed that the senior lienholder will retain lien priority in the event of a merger.

48. Abatement
Statement of the actual settlement costs. Provided by US Dept of HUD.
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
An action to remove a nuisance
The party required to prove a fact when an issue is in dispute

49. Farm
Principal + Interest + Monthly taxes and insurance + homeowners assoc. fee = 25% - 30% gross monthly income
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 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
Within 3 days from acceptance of the offer (this must happen)

50. 3 years - broker documents
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
Zoning for density with open-space requirements as well as setback - parking - and height restrictions
Within 3 days from acceptance of the offer (this must happen)
Copies of all listings - deposit receipts - canceled checks - and trust records must be retained by a licensed real estate broker