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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. Budle of rights - 5 things

2. FIRPTA
An act that requires recordings and publication of a sale not in the normal course of business.
Transfer of all interest in a contract or lease.
Negotiable commission for residential
Foreign Investments in Real Property Tax Act

3. Alquist-Priolo Special Studies Zone Act
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
Provides for project approval in close proximity to earthquake faults - as well as disclosures to buyers.
real estate
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

4. Advance costs
Simultaneous ownership of a given piece of property by two or more persons - Tenancy in common; Joint tenancy; and Community property.
Real Estate Equity Trust
A final payment that is more than twice the amount of the lowest payment.
Advance payments made to an agent to cover expected cash outlays in carrying out the agency.

5. Advance fee
A formal declaration of the truthfulness of a statement - given in lieu of a verification.
Truth in Lending Act - Implemented by Regulation Z set by the Federal Trade Commission
A fee for rental information accepted in advance - or a promotional fee for a sale listing.
Multiple Listing Service

6. Blanket encumbrance
Joint tenants have: unity of time - unity of title - unity of interest - unity of possession
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.
Any loss of value due to conditions outside of the property itself. aka social obsolescence
A mortgage or trust deed covering more than one property

7. Acceleration upon default
Federal Trade Commission
A mortgage or trust deed covering more than one property
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 covenant under which an owner is required to do something - such as build within a stated period of time.

8. After-acquired title
Title or interest acquired by the grantor after property has been conveyed.
A formal declaration of the truthfulness of a statement - given in lieu of a verification.
Must be disclosed to the buyer if
An acknowledgment of the grantor's signature

9. Chattel mortgag
Use of personal property to secure or guarantee a promissory note.
Principal + Interest + Monthly taxes and insurance + homeowners assoc. fee = 25% - 30% gross monthly income
Mortgages in California
Federal Home Loan Mortgage Corporation

10. Blind ad
An advertisement that fails to reveal that the advertiser is an agent and not a principal
that he is acting as an optionor
Attempt to establish a firm's identity to the public
Something that belongs to and goes with a property - such as structure and easement rights

11. Encumbrance

12. Real Property Loan Law
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.
Use of personal property to secure or guarantee a promissory note.
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

13. Advance fee addendum
An agreement specifying activities for which the agent is to be compensated. It would include provisions for an advance payment of fees.
Any loss of value due to conditions outside of the property itself. aka 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
Parallel wooden members used to support floor and ceiling loads are called

14. Deed of reconveyance
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.
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
Deed from trustee to trustor - at the request of the beneficiary of trust (lender) - that returns title to the trustor on payment of indebtedness
Alternative Minimum Tax - requires taxpayers - who make above a certain amount of gross income to - to figure taxes twice.

15. Concurrent ownership or co-ownership
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.
Loss of value due to adverse factors within a structure that affect the marketability of the property.
Simultaneous ownership of a given piece of property by two or more persons - Tenancy in common; Joint tenancy; and Community property.
The Fiduciary Duty owed to a principal (seller) by the Agent (broker) obedience - loyalty - disclosure - confidentiality - accountability - reasonable use of (skill - training - experience - competency)

16. Abstract of title
A copy of all recorded documents dealing with a property. Attorneys give title opinions based on abstracts.
Horizontal in the township and section system
The party required to prove a fact when an issue is in dispute
Any loss of value due to conditions outside of the property itself. aka economic obsolescence

17. Fair Employment and Housing Act
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
Law prohibits discrimination in supplying housing accommodations because of race - color - religion - sex - marital status - national origin - ancestry - age - familial status or disability.
The Broker is the Agent of the seller. The salesperson is the
Parallel wooden members used to support floor and ceiling loads are called

18. Avulsion
The seller's signature
Real Estate Educators Association
Property owned by husband and wife
The sudden removal of land by action of water - such as a river changing course.

19. Aesthetic zoning
The party required to prove a fact when an issue is in dispute
Real Estate Educators Association
Zoning for beauty or appearance. Appearance of zone may have a pattern in architecture - colors - and styles.
A fee for rental information accepted in advance - or a promotional fee for a sale listing.

20. AIDA
By recorded map; by U. S. Government section and township; and by metes and bounds
Time tested model used in writing ads - Attention - Interest - Desire - Action
For Sale By Owners
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.

21. REMT
An action to remove a nuisance
Provides for project approval in close proximity to earthquake faults - as well as disclosures to buyers.
Real Estate Mortgage 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

22. Administrative Procedure Act
Separate ownershi and Concurrent ownership; a. Tenancy in common; b. Joint tenancy; and c. Community property.
Principal + Interest + Monthly taxes and insurance + homeowners assoc. fee = 25% - 30% gross monthly income
Legal relationship under which an agent represents another - or principal - in dealings with third parties.
A procedural act that must be complied with prior to revocation - suspension - or denial of a real estate license.

23. Bilateral contract
Commission is only controlled by law under two situations. One being If property is sold while in probate and...
Two or more persons - as partners - own property for partnership purposes
A mutual exchange of promises.
Financial Institute Reform - Recovery - and Enforcement Act of 1989

24. Agent
One who represents another in an agency relationship.
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
Must be disclosed to the buyer if
Copies of all listings - deposit receipts - canceled checks - and trust records must be retained by a licensed real estate broker

25. Assignment of rent
The Fiduciary Duty owed to a principal (seller) by the Agent (broker) obedience - loyalty - disclosure - confidentiality - accountability - reasonable use of (skill - training - experience - competency)
Owner assigns right to collect rent to another. Usually given to a lienholder when owner is delinquent in rent
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
Inducing panic selling based on fear of the entry of persons of another race - color - religion - or ancestry into the area.

26. FHLMC
Within 3 days from acceptance of the offer (this must happen)
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
One broker
Federal Home Loan Mortgage Corporation

27. FSBO's
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 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.
For Sale By Owners
that he is acting as an optionor

28. Agency by estoppel

29. OLDCAR
1 square mile
A government agency that makes rules and regulations to carry out the law.
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. Farm
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
The party required to prove a fact when an issue is in dispute
Grid of vertical lines (US Government and township)
Parallel wooden members used to support floor and ceiling loads are called

31. Meridians
Vertical in the township and section system
Real Estate Mortgage Trust
Offer the seller suggestions on ways to show a home for maximum positive first impression
Created in 1934 to provide mortgage insurance on loans made by FHA - approved lenders - part of HUD

32. Agency by ratification

33. TILA
Title or interest acquired by the grantor after property has been conveyed.
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.
Truth in Lending Act - Implemented by Regulation Z set by the Federal Trade Commission
Any loss of value due to conditions outside of the property itself. aka social obsolescence

34. Anticipatory breach
Federal National Mortgage Association
Agency in which an agent has a financial interest in the subject matter of the agency.
A fee for rental information accepted in advance - or a promotional fee for a sale listing.
Act of a party that can be treated as a breach of contract because it makes performance by that party impossible.

35. Bulk zoning
Loss in value from any cause? is a common definition
Legal relationship under which an agent represents another - or principal - in dealings with third parties.
The Fiduciary Duty owed to a principal (seller) by the Agent (broker) obedience - loyalty - disclosure - confidentiality - accountability - reasonable use of (skill - training - experience - competency)
Zoning for density with open-space requirements as well as setback - parking - and height restrictions

36. Deposits from clients must be placed in a brokers trust fund
Simultaneous ownership of a given piece of property by two or more persons - Tenancy in common; Joint tenancy; and Community property.
Federal National Mortgage Association
Within 3 days from acceptance of the offer (this must happen)
Real Property Securities Dealer

37. vendor (term in 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)
A final payment that is more than twice the amount of the lowest payment.
In a legal sales contract - the seller is often referred to as the
Federal National Mortgage Association

38. Separate ownership
A person appointed as an agent under a power of attorney
Ownership by one person
Items used to qualify a buyer for the proper debt:income ratio. Usually 1/3 of gross income. principle - interest - taxes - insurance
Real Property Securities Dealer

39. Adverse possession
Mortgages in California
A method to acquire title. It requires five-year - open - notorious - uninterrupted use under some claim of right - and the payment of taxes.
Real Estate Equity Trust
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

40. Examples functional obsolescence
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
A final payment that is more than twice the amount of the lowest payment.
A disclosure statement given to borrowers by mortgage loan brokers that provides information on all costs - fees - and loan terms.
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

41. Bankruptcy
The party required to prove a fact when an issue is in dispute
Zoning for beauty or appearance. Appearance of zone may have a pattern in architecture - colors - and styles.
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.
The buyer's agreeing to be primarily liable on the loan while the seller has secondary liability

42. Monthly house payment (ratio standard)
Principal + Interest + Monthly taxes and insurance + homeowners assoc. fee = 25% - 30% gross monthly income
The party required to prove a fact when an issue is in dispute
Changes in escrow instructions - which require the agreement of both the buyer and seller.
Statement by beneficiary as to balance due on loan.

43. amortized note
Agency in which an agent has a financial interest in the subject matter of the agency.
A note that will liquidate itself over its term in equal installments
Mortgages in California
After being acknowledged - any instrument or judgment affecting the title to or possession of real property may be recorded

44. Balloon payment
A final payment that is more than twice the amount of the lowest payment.
Provides for rent as a percentage of the tenants' gross income ( gross sales )
Agency in which an agent has a financial interest in the subject matter of the agency.
In a legal sales contract - the seller is often referred to as the

45. Joint tenancy - TTIP
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
Person holding title to real property in severalty
An action to remove a nuisance
An advertisement that fails to reveal that the advertiser is an agent and not a principal

46. Institutional advertising

47. Article 7
43560 square feet
Part of the Business and Professions Code covering loan costs - commissions - and payment requirements relating to loan brokerage activity.
All beneficial rights that go with ownership of real property
The seller's signature

48. HUD
Department of Housing and Urban Development
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
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 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

49. Appurtenance
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.
Something that belongs to and goes with a property - such as structure and easement rights
Commission is only controlled by law under two situations. One being the Real Property Loan Law and...
Loss of value due to adverse factors within a structure that affect the marketability of the property.

50. Accretion
The gradual buildup of land by natural causes ( generally by action of water )
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
1 square mile
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