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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. MLS
Instrument used to secure a loan on personal property is called
Mortgages in California
A prejudgment lien that can be obtained to ensure the availability of property for execution after a judgment is obtained.
Multiple Listing Service

2. Affirmative covenant
Simultaneous ownership of a given piece of property by two or more persons - Tenancy in common; Joint tenancy; and Community property.
Legal relationship under which an agent represents another - or principal - in dealings with third parties.
A covenant under which an owner is required to do something - such as build within a stated period of time.
For Sale By Owners

3. Appraisals of single-family dwellings
The Broker is the Agent of the seller. The salesperson is the
A prejudgment lien that can be obtained to ensure the availability of property for execution after a judgment is obtained.
Sales prices of comparable properties
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.

4. California has three sets of base lines and meridian
Must be disclosed to the buyer if
Grid of vertical lines (US Government and township)
Federal Trade Commission
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.

5. Burden of proof
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 change made to a note or contract by one of the parties without the consent of the other.
A contract based on an illegal consideration
The party required to prove a fact when an issue is in dispute

6. Bait and switch
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
Two or more persons - as partners - own property for partnership purposes
A change made to a note or contract by one of the parties without the consent of the other.
Separate ownershi and Concurrent ownership; a. Tenancy in common; b. Joint tenancy; and c. Community property.

7. NAIFA
An acknowledgment of the grantor's signature
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.
National Association of Independent Fee Appraisers
Federal Home Loan Mortgage Corporation

8. Percentage lease

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9. Blind ad
A loan to be completely repaid - principal and interest - by a series of regular equal installment payments
Parallel wooden members used to support floor and ceiling loads are called
Time tested model used in writing ads - Attention - Interest - Desire - Action
An advertisement that fails to reveal that the advertiser is an agent and not a principal

10. Broker's loan statement
A disclosure statement given to borrowers by mortgage loan brokers that provides information on all costs - fees - and loan terms.
A note that will liquidate itself over its term in equal installments
Statement by beneficiary as to balance due on loan.
All payments become due upon default of payment. In California - the debtor can cure the default by catching up on payments prior to foreclosure.

11. Fair Employment and Housing Act
Law prohibits discrimination in supplying housing accommodations because of race - color - religion - sex - marital status - national origin - ancestry - age - familial status or disability.
Commission is only controlled by law under two situations. One being If property is sold while in probate and...
real estate
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

12. Bilateral contract - p4p
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.
Promise for a promise.
Any loss of value due to conditions outside of the property itself. aka economic obsolescence
Real Property Securities Dealer

13. Ad valorum taxes
Vertical in the township and section system
Real Estate Mortgage Trust
Taxes based on value - such as property tax. ( Latin - according to value )
real estate

14. 'As is'
Inducing panic selling based on fear of the entry of persons of another race - color - religion - or ancestry into the area.
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.
Department of Housing and Urban Development
Principal + Interest + Monthly taxes and insurance + homeowners assoc. fee = 25% - 30% gross monthly income

15. Real Property Loan Law
Offer the seller suggestions on ways to show a home for maximum positive first impression
Changes in escrow instructions - which require the agreement of both the buyer and seller.
The Broker is the Agent of the seller. The salesperson is the
Commission is only controlled by law under two situations. One being If property is sold while in probate and...

16. Joint tenancy - TTIP
A copy of all recorded documents dealing with a property. Attorneys give title opinions based on abstracts.
Real Property Securities Dealer
All beneficial rights that go with ownership of real property
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

17. Adam E Lee
8 Ways to terminate an easement Abandonment - Destruction - Adverse Possession - Merger - Express Agreement - Lawsuit - Estoppel - Excessive use
Elements of a contract - mutual COnsent - CApacity - COnsideration - LAwful purpose ( must be in writing )
Truth in Lending Act - Implemented by Regulation Z set by the Federal Trade Commission
Competitive Market Analysis

18. Salesperson can only work for...
1 square mile
One broker
Statement by beneficiary as to balance due on loan.
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

19. Ademption
Failure to comply with a material term or provision of a contract
A person appointed by the court to administer the estate of a deceased person.
The revocation of a specific property grant in a will by disposing of said property prior to death.
A change made to a note or contract by one of the parties without the consent of the other.

20. Separate ownership
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
Ownership by one person
is deeded to the county
Offer the seller suggestions on ways to show a home for maximum positive first impression

21. Agency coupled with an interest
The revocation of a specific property grant in a will by disposing of said property prior to death.
Agency in which an agent has a financial interest in the subject matter of the agency.
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
8 Ways to terminate an easement Abandonment - Destruction - Adverse Possession - Merger - Express Agreement - Lawsuit - Estoppel - Excessive use

22. Instrument
1 square mile
In a legal sales contract - the seller is often referred to as the
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
Separate ownershi and Concurrent ownership; a. Tenancy in common; b. Joint tenancy; and c. Community property.

23. Deposits from clients must be placed in a brokers trust fund
A clause in a mortgage or trust deed that the senior lienholder will retain lien priority in the event of a merger.
Lender (or seller) in a trust deed loan situation
Within 3 days from acceptance of the offer (this must happen)
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

24. The Recovery Account
Zoning for beauty or appearance. Appearance of zone may have a pattern in architecture - colors - and styles.
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 loss of value due to conditions outside of the property itself. aka social obsolescence
Attempt to establish a firm's identity to the public

25. Social obsolescence
Grid horizontal lines (US Government and township)
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 )
Items used to qualify a buyer for the proper debt:income ratio. Usually 1/3 of gross income. principle - interest - taxes - insurance

26. Liquidated damages
Parallel wooden members used to support floor and ceiling loads are called
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
Agency in which an agent has a financial interest in the subject matter of the agency.
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.

27. Assignment of lease
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.
Government National Mortgage Association
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

28. TILA
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
Transfer of all interest in a contract or lease.
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.

29. FIRPTA
Items used to qualify a buyer for the proper debt:income ratio. Usually 1/3 of gross income. principle - interest - taxes - insurance
Foreign Investments in Real Property Tax Act
A disclosure statement given to borrowers by mortgage loan brokers that provides information on all costs - fees - and loan terms.
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

30. Economic obsolescence
Zoning for density with open-space requirements as well as setback - parking - and height restrictions
An owner has a duty to reasonably protect children from injury when the premises are likely to attract children.
Any loss of value due to conditions outside of the property itself. aka social obsolescence
All payments become due upon default of payment. In California - the debtor can cure the default by catching up on payments prior to foreclosure.

31. Township
For Sale By Owners
Grid horizontal lines (US Government and township)
Personal property transferred by will
Offer the seller suggestions on ways to show a home for maximum positive first impression

32. Major repairs in the past 5 years ( house for sale )...
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
real estate
The Fiduciary Duty owed to a principal (seller) by the Agent (broker) obedience - loyalty - disclosure - confidentiality - accountability - reasonable use of (skill - training - experience - competency)
Must be disclosed to the buyer if

33. Uniform Settlement Statement
Sales prices of comparable properties
Statement of the actual settlement costs. Provided by US Dept of HUD.
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.
A final payment that is more than twice the amount of the lowest payment.

34. Affirmation
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
Lender (or seller) in a trust deed loan situation
Commission is only controlled by law under two situations. One being If property is sold while in probate and...
A formal declaration of the truthfulness of a statement - given in lieu of a verification.

35. HUD
A mortgage or trust deed covering more than one property
Department of Housing and Urban Development
A loan to be completely repaid - principal and interest - by a series of regular equal installment payments
Use of personal property to secure or guarantee a promissory note.

36. Blanket encumbrance
The buyer's agreeing to be primarily liable on the loan while the seller has secondary liability
Instrument used to secure a loan on personal property is called
A mortgage or trust deed covering more than one property
Federal Home Loan Mortgage Corporation

37. Base lines
Time tested model used in writing ads - Attention - Interest - Desire - Action
Horizontal in the township and section system
Real Estate Investment Trust
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

38. Tenancy in partnershipm
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.
Two or more persons - as partners - own property for partnership purposes
Grid horizontal lines (US Government and township)

39. Anticipatory breach
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.
Act of a party that can be treated as a breach of contract because it makes performance by that party impossible.
An agreement specifying activities for which the agent is to be compensated. It would include provisions for an advance payment of fees.
Parallel wooden members used to support floor and ceiling loads are called

40. Bequest
Parallel wooden members used to support floor and ceiling loads are called
The sudden removal of land by action of water - such as a river changing course.
Promise for a promise.
Personal property transferred by will

41. Administrator
A person appointed by the court to administer the estate of a deceased person.
Created in 1934 to provide mortgage insurance on loans made by FHA - approved lenders - part of HUD
Real Estate Mortgage Trust
The gradual buildup of land by natural causes ( generally by action of water )

42. Functional obsolescence
A disclosure statement given to borrowers by mortgage loan brokers that provides information on all costs - fees - and loan terms.
A statement made before a notary or court officer that the signing of a document was the signer's own free act.
Loss of value due to adverse factors within a structure that affect the marketability of the property.
Sales prices of comparable properties

43. Township
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
36 individual square miles or 640 acres.
Real Property Securities Dealer
Finance charge and annual percentage rate - Regulation Z

44. Farm
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 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
A person appointed by the court to administer the estate of a deceased person.
Provides for project approval in close proximity to earthquake faults - as well as disclosures to buyers.

45. Agent
All beneficial rights that go with ownership of real property
An agency created by a principal's approving an unauthorized act of another.
Transfer of all rights under a contract to a third party. Assignor remains secondarily liability.
One who represents another in an agency relationship.

46. Federal Truth-in-Lending Law
An agency created by a principal's approving an unauthorized act of another.
Legal relationship under which an agent represents another - or principal - in dealings with third parties.
A mutual exchange of promises.
Finance charge and annual percentage rate - Regulation Z

47. A broker selling a property on which he holds an option should notify the purchaser...
Part of the Business and Professions Code governing transactions in trust deeds and real property sales contracts
Truth in Lending Act - Implemented by Regulation Z set by the Federal Trade Commission
Real Estate Equity Trust
that he is acting as an optionor

48. Breach of contract
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
Federal Home Loan Mortgage Corporation
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
Failure to comply with a material term or provision of a contract

49. Federal Housing Administration - role
A quitclaim deed conveys only the present right - title and interest of the
Created in 1934 to provide mortgage insurance on loans made by FHA - approved lenders - part of HUD
Loss of value due to adverse factors within a structure that affect the marketability of the property.
Finance charge and annual percentage rate - Regulation Z

50. What trust deeds in California are called..
An agency created by a principal's approving an unauthorized act of another.
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.
Mortgages in California
The Broker is the Agent of the seller. The salesperson is the sub-agent of the