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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. Adam E Lee
8 Ways to terminate an easement Abandonment - Destruction - Adverse Possession - Merger - Express Agreement - Lawsuit - Estoppel - Excessive use
The seller's signature
An acknowledgment of the grantor's signature
Separate ownershi and Concurrent ownership; a. Tenancy in common; b. Joint tenancy; and c. Community property.

2. CMA
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
Statement by beneficiary as to balance due on loan.
Competitive Market Analysis
Part of the Business and Professions Code covering loan costs - commissions - and payment requirements relating to loan brokerage activity.

3. FNMA
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
Federal National Mortgage Association
is deeded to the county
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.

4. 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
An agreement specifying activities for which the agent is to be compensated. It would include provisions for an advance payment of fees.
Copies of all listings - deposit receipts - canceled checks - and trust records must be retained by a licensed real estate broker
Statement of the actual settlement costs. Provided by US Dept of HUD.

5. Affirmative easement
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.
Alternative Minimum Tax - requires taxpayers - who make above a certain amount of gross income to - to figure taxes twice.
National Association of Independent Fee Appraisers
Easement that gives the dominant tenement owner the right to use the servient tenement.

6. Agency by ratification

7. Township
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
Commission is only controlled by law under two situations. One being If property is sold while in probate and...
A statement made before a notary or court officer that the signing of a document was the signer's own free act.
Grid horizontal lines (US Government and township)

8. amortized note
Mortgages in California
is deeded to the county
Real Estate Educators Association
A note that will liquidate itself over its term in equal installments

9. Advance fee
A fee for rental information accepted in advance - or a promotional fee for a sale listing.
An agency created by a principal's approving an unauthorized act of another.
Horizontal in the township and section system
Ownership by one person

10. Appraisals of single-family dwellings
Sales prices of comparable properties
that he is acting as an optionor
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
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.

11. Avulsion
Any loss of value due to conditions outside of the property itself. aka social obsolescence
The sudden removal of land by action of water - such as a river changing course.
Buyer to take possession 3 days after the close of escrow
Loss in value from any cause? is a common definition

12. Agent
Time tested model used in writing ads - Attention - Interest - Desire - Action
Real Estate Educators Association
Personal property transferred by will
One who represents another in an agency relationship.

13. 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)
Legal relationship under which an agent represents another - or principal - in dealings with third parties.
A mutual exchange of promises.
By recorded map; by U. S. Government section and township; and by metes and bounds

14. The maximum commission a broker may charge a seller for the sale of residential income property
A clause in a mortgage or trust deed that the senior lienholder will retain lien priority in the event of a merger.
Property owned by husband and wife
Negotiable commission for residential
Notice that has been expressly given and is known to a party

15. TTIP
Joint tenants have: unity of time - unity of title - unity of interest - unity of possession
Created in 1934 to provide mortgage insurance on loans made by FHA - approved lenders - part of HUD
A loan to be completely repaid - principal and interest - by a series of regular equal installment payments
In a legal sales contract - the seller is often referred to as the

16. Ademption
Any loss of value due to conditions outside of the property itself. aka social obsolescence
The revocation of a specific property grant in a will by disposing of said property prior to death.
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 acknowledgment of the grantor's signature

17. depreciation
Loss in value from any cause? is a common definition
The revocation of a specific property grant in a will by disposing of said property prior to death.
Part of the Business and Professions Code covering loan costs - commissions - and payment requirements relating to loan brokerage activity.
Horizontal in the township and section system

18. Liquidated damages
A quitclaim deed conveys only the present right - title and interest of the
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
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
Competitive Market Analysis

19. Affirmative covenant
A covenant under which an owner is required to do something - such as build within a stated period of time.
Simultaneous ownership of a given piece of property by two or more persons - Tenancy in common; Joint tenancy; and Community property.
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.
A formal declaration of the truthfulness of a statement - given in lieu of a verification.

20. Salesperson can only work for...
Mortgages in California
A formal declaration of the truthfulness of a statement - given in lieu of a verification.
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.
One broker

21. FIRPTA
Deed from trustee to trustor - at the request of the beneficiary of trust (lender) - that returns title to the trustor on payment of indebtedness
The buyer's agreeing to be primarily liable on the loan while the seller has secondary liability
Foreign Investments in Real Property Tax Act
Real Estate Mortgage Trust

22. Aesthetic zoning
Federal National Mortgage Association
Zoning for beauty or appearance. Appearance of zone may have a pattern in architecture - colors - and styles.
A contract based on an illegal consideration
A copy of all recorded documents dealing with a property. Attorneys give title opinions based on abstracts.

23. Ad valorum taxes
Horizontal in the township and section system
Legal relationship under which an agent represents another - or principal - in dealings with third parties.
Taxes based on value - such as property tax. ( Latin - according to value )
A procedural act that must be complied with prior to revocation - suspension - or denial of a real estate license.

24. HUD
The Fiduciary Duty owed to a principal (seller) by the Agent (broker) obedience - loyalty - disclosure - confidentiality - accountability - reasonable use of (skill - training - experience - competency)
Deed from trustee to trustor - at the request of the beneficiary of trust (lender) - that returns title to the trustor on payment of indebtedness
Act of a party that can be treated as a breach of contract because it makes performance by that party impossible.
Department of Housing and Urban Development

25. Assignment of 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.
Transfer of all rights under a contract to a third party. Assignor remains secondarily liability.
that he is acting as an optionor
Foreign Investments in Real Property Tax Act

26. Arbitration
The Broker is the Agent of the seller. The salesperson is the
Part of the Business and Professions Code covering loan costs - commissions - and payment requirements relating to loan brokerage activity.
Nonjudicial process for resolution of disputes either by agreement or mandated by law.
Department of Housing and Urban Development

27. Base lines
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.
Competitive Market Analysis
Horizontal in the township and section system
Prohibits discrimination in a place of public accommodation based on an individual's physical or mental disabilities.

28. Assignment of lease
The Broker is the Agent of the seller. The salesperson is the sub-agent of the
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 procedural act that must be complied with prior to revocation - suspension - or denial of a real estate license.
Inducing panic selling based on fear of the entry of persons of another race - color - religion - or ancestry into the area.

29. Meridians
Vertical in the township and section system
A change made to a note or contract by one of the parties without the consent of the other.
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.
Easement that gives the dominant tenement owner the right to use the servient tenement.

30. Percentage lease

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

32. 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
Grid horizontal lines (US Government and township)
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 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

33. Deed of reconveyance
Grid of vertical lines (US Government and township)
8 Ways to terminate an easement Abandonment - Destruction - Adverse Possession - Merger - Express Agreement - Lawsuit - Estoppel - Excessive use
Deed from trustee to trustor - at the request of the beneficiary of trust (lender) - that returns title to the trustor on payment of indebtedness
Joint tenants have: unity of time - unity of title - unity of interest - unity of possession

34. Assignment
Use of personal property to secure or guarantee a promissory note.
Transfer of all interest in a contract or lease.
Legal relationship under which an agent represents another - or principal - in dealings with third parties.
Attempt to establish a firm's identity to the public

35. Assumable loan
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.
Real Estate Settlement Procedures Act - requires special information booklet - requires good faith estimate - requires uniform settlement statement
A clause in a mortgage or trust deed that the senior lienholder will retain lien priority in the event of a merger.
Federal Home Loan Mortgage Corporation

36. Major repairs in the past 5 years ( house for sale )...
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 contract based on an illegal consideration
Must be disclosed to the buyer if
Personal property transferred by will

37. FHLMC
NE - North East
Federal Home Loan Mortgage Corporation
A disclosure statement given to borrowers by mortgage loan brokers that provides information on all costs - fees - and loan terms.
An advertisement that fails to reveal that the advertiser is an agent and not a principal

38. CE+3
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 fee for rental information accepted in advance - or a promotional fee for a sale listing.
Buyer to take possession 3 days after the close of escrow
A mortgage or trust deed covering more than one property

39. REMT
Joint ownership of real property by two or more persons - each of whom has an undivided interest (not necessarily equal) without right of survivorship
Separate ownershi and Concurrent ownership; a. Tenancy in common; b. Joint tenancy; and c. Community property.
The revocation of a specific property grant in a will by disposing of said property prior to death.
Real Estate Mortgage Trust

40. 640 acres =
Offer the seller suggestions on ways to show a home for maximum positive first impression
An agreement specifying activities for which the agent is to be compensated. It would include provisions for an advance payment of fees.
An agreement to accept a lesser consideration than bargained for based on disagreement over performance.
1 square mile

41. Void
Title or interest acquired by the grantor after property has been conveyed.
A contract based on an illegal consideration
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
Something that belongs to and goes with a property - such as structure and easement rights

42. 43560 square feet =
The buyer's agreeing to be primarily liable on the loan while the seller has secondary liability
A mortgage or trust deed covering more than one property
Ownership by one person
1 square mile

43. Abatement
Within 3 days from acceptance of the offer (this must happen)
An action to remove a nuisance
Licensed real estate agent who can deal directly with principals and employ licensed real estate salepersons
Competitive Market Analysis

44. Chattel mortgag
Deed from trustee to trustor - at the request of the beneficiary of trust (lender) - that returns title to the trustor on payment of indebtedness
Use of personal property to secure or guarantee a promissory note.
Provides for rent as a percentage of the tenants' gross income ( gross sales )
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

45. Acceleration upon default
Zoning for density with open-space requirements as well as setback - parking - and height restrictions
All payments become due upon default of payment. In California - the debtor can cure the default by catching up on payments prior to foreclosure.
Negotiable commission for residential
The party required to prove a fact when an issue is in dispute

46. AMT
A change made to a note or contract by one of the parties without the consent of the other.
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
Agency in which an agent has a financial interest in the subject matter of the agency.

47. Abstract of title
Use of personal property to secure or guarantee a promissory note.
A copy of all recorded documents dealing with a property. Attorneys give title opinions based on abstracts.
Government National Mortgage Association
A change made to a note or contract by one of the parties without the consent of the other.

48. Actual notice
Notice that has been expressly given and is known to a party
Within 3 days from acceptance of the offer (this must happen)
Easement that gives the dominant tenement owner the right to use the servient tenement.
Statement by beneficiary as to balance due on loan.

49. Tenancy in common
All payments become due upon default of payment. In California - the debtor can cure the default by catching up on payments prior to foreclosure.
Attempt to establish a firm's identity to the public
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
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

50. American Land Title Association
ALTA - The association that developed an extended-coverage policy of title insurance for lenders ( same coverage available to buyers )
The Broker is the Agent of the seller. The salesperson is the sub-agent of the
A mortgage or trust deed covering more than one property
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