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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. Abatement
Failure to comply with a material term or provision of a contract
Taxes based on value - such as property tax. ( Latin - according to value )
An action to remove a nuisance
Financial Institute Reform - Recovery - and Enforcement Act of 1989

2. Arbitration
NE - North East
Commission is only controlled by law under two situations. One being the Real Property Loan Law and...
Nonjudicial process for resolution of disputes either by agreement or mandated by law.
1 square mile

3. Monthly house payment (ratio standard)
Principal + Interest + Monthly taxes and insurance + homeowners assoc. fee = 25% - 30% gross monthly income
Alternative Minimum Tax - requires taxpayers - who make above a certain amount of gross income to - to figure taxes twice.
Grid horizontal lines (US Government and township)
Advance payments made to an agent to cover expected cash outlays in carrying out the agency.

4. Avulsion
A disclosure statement given to borrowers by mortgage loan brokers that provides information on all costs - fees - and loan terms.
Time tested model used in writing ads - Attention - Interest - Desire - Action
An action to remove a nuisance
The sudden removal of land by action of water - such as a river changing course.

5. AMT
All payments become due upon default of payment. In California - the debtor can cure the default by catching up on payments prior to foreclosure.
All beneficial rights that go with ownership of real 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.
Alternative Minimum Tax - requires taxpayers - who make above a certain amount of gross income to - to figure taxes twice.

6. Federal Truth-in-Lending Law
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
Finance charge and annual percentage rate - Regulation Z
A change made to a note or contract by one of the parties without the consent of the other.

7. Recording Act of California
Government National Mortgage Association
Finance charge and annual percentage rate - Regulation Z
After being acknowledged - any instrument or judgment affecting the title to or possession of real property may be recorded
Statement of the actual settlement costs. Provided by US Dept of HUD.

8. amortized note
A note that will liquidate itself over its term in equal installments
36 individual square miles or 640 acres.
An agreement to accept a lesser consideration than bargained for based on disagreement over performance.
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

9. Alteration
Real Estate Settlement Procedures Act - requires special information booklet - requires good faith estimate - requires uniform settlement statement
Grid of vertical lines (US Government and township)
A change made to a note or contract by one of the parties without the consent of the other.
An advertisement that fails to reveal that the advertiser is an agent and not a principal

10. A broker selling a property on which he holds an option should notify the purchaser...
Real Estate Settlement Procedures Act - requires special information booklet - requires good faith estimate - requires uniform settlement statement
Foreign Investments in Real Property Tax Act
Horizontal in the township and section system
that he is acting as an optionor

11. Housing Financial Discrimination Act of 1977 (Holden Act)
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
The revocation of a specific property grant in a will by disposing of said property prior to death.
A statement made before a notary or court officer that the signing of a document was the signer's own free act.
Easement that gives the dominant tenement owner the right to use the servient tenement.

12. Beneficiary
A covenant under which an owner is required to do something - such as build within a stated period of time.
Any loss of value due to conditions outside of the property itself. aka social obsolescence
For Sale By Owners
Lender (or seller) in a trust deed loan situation

13. Accord and satisfaction
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
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 to accept a lesser consideration than bargained for based on disagreement over performance.
ALTA - The association that developed an extended-coverage policy of title insurance for lenders ( same coverage available to buyers )

14. Principle or 3rd party
Cconsists of all property acquired by a husband and wife - or either - during a valid marriage - other than separate property
The Broker is the Agent of the seller. The salesperson is the sub-agent of the
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
Joint tenants have: unity of time - unity of title - unity of interest - unity of possession

15. Examples functional obsolescence
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
Owner assigns right to collect rent to another. Usually given to a lienholder when owner is delinquent in rent
A person appointed as an agent under a power of attorney
real estate

16. 3 years - broker documents
A procedural act that must be complied with prior to revocation - suspension - or denial of a real estate license.
Copies of all listings - deposit receipts - canceled checks - and trust records must be retained by a licensed real estate broker
Licensed real estate agent who can deal directly with principals and employ licensed real estate salepersons
An agency created by a principal's approving an unauthorized act of another.

17. Actual notice
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
Zoning for density with open-space requirements as well as setback - parking - and height restrictions
Notice that has been expressly given and is known to a party
Commission is only controlled by law under two situations. One being the Real Property Loan Law and...

18. PITI
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
Government National Mortgage Association
A method to acquire title. It requires five-year - open - notorious - uninterrupted use under some claim of right - and the payment of taxes.

19. Concurrent ownership or co-ownership
Property owned by husband and wife
Multiple Listing Service
Simultaneous ownership of a given piece of property by two or more persons - Tenancy in common; Joint tenancy; and Community property.
A mortgage or trust deed covering more than one property

20. Uniform Settlement Statement
ALTA - The association that developed an extended-coverage policy of title insurance for lenders ( same coverage available to buyers )
Legal relationship under which an agent represents another - or principal - in dealings with third parties.
The gradual buildup of land by natural causes ( generally by action of water )
Statement of the actual settlement costs. Provided by US Dept of HUD.

21. Appraisals of single-family dwellings
Sales prices of comparable properties
Copies of all listings - deposit receipts - canceled checks - and trust records must be retained by a licensed real estate broker
Must be disclosed to the buyer if
Statement by beneficiary as to balance due on loan.

22. Which corner does the township numbering system start in?
NE - North East
All payments become due upon default of payment. In California - the debtor can cure the default by catching up on payments prior to foreclosure.
Provides for rent as a percentage of the tenants' gross income ( gross sales )
Part of the Business and Professions Code covering loan costs - commissions - and payment requirements relating to loan brokerage activity.

23. FHLMC
A copy of all recorded documents dealing with a property. Attorneys give title opinions based on abstracts.
Negotiable commission for residential
Federal Home Loan Mortgage Corporation
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.

24. Advance fee addendum
Buyer to take possession 3 days after the close of escrow
Financial Institute Reform - Recovery - and Enforcement Act of 1989
A person appointed by the court to administer the estate of a deceased person.
An agreement specifying activities for which the agent is to be compensated. It would include provisions for an advance payment of fees.

25. Alquist-Priolo Special Studies Zone Act
Created in 1934 to provide mortgage insurance on loans made by FHA - approved lenders - part of HUD
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.
Provides for project approval in close proximity to earthquake faults - as well as disclosures to buyers.
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

26. Americans with Disabilities Act

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

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28. Major repairs in the past 5 years ( house for sale )...
An acknowledgment of the grantor's signature
Must be disclosed to the buyer if
Provides for rent as a percentage of the tenants' gross income ( gross sales )
One who represents another in an agency relationship.

29. 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
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
Alternative Minimum Tax - requires taxpayers - who make above a certain amount of gross income to - to figure taxes twice.
An agreement specifying activities for which the agent is to be compensated. It would include provisions for an advance payment of fees.

30. 640 acres =
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
Cconsists of all property acquired by a husband and wife - or either - during a valid marriage - other than separate property
Instrument used to secure a loan on personal property is called

31. Unruh Civil Rights Act - California
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.
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
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
Personal property transferred by will

32. Agency by estoppel

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33. AIDA
Time tested model used in writing ads - Attention - Interest - Desire - Action
Statement by beneficiary as to balance due on loan.
Any loss of value due to conditions outside of the property itself. aka social obsolescence
All beneficial rights that go with ownership of real property

34. Breach of contract
Zoning for density with open-space requirements as well as setback - parking - and height restrictions
Failure to comply with a material term or provision of a contract
For Sale By Owners
A method to acquire title. It requires five-year - open - notorious - uninterrupted use under some claim of right - and the payment of taxes.

35. depreciation
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
Loss in value from any cause? is a common definition
A person appointed as an agent under a power of attorney
Inducing panic selling based on fear of the entry of persons of another race - color - religion - or ancestry into the area.

36. Balloon payment
A final payment that is more than twice the amount of the lowest payment.
Federal Home Loan Mortgage Corporation
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.
Loss in value from any cause? is a common definition

37. Accretion
The gradual buildup of land by natural causes ( generally by action of water )
Real Property Securities Dealer
All beneficial rights that go with ownership of real property
Within 3 days from acceptance of the offer (this must happen)

38. FIRPTA
Horizontal in the township and section system
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
Mortgages in California
Foreign Investments in Real Property Tax Act

39. MARIA
Taxes based on value - such as property tax. ( Latin - according to value )
An agency created by a principal's approving an unauthorized act of another.
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
All payments become due upon default of payment. In California - the debtor can cure the default by catching up on payments prior to foreclosure.

40. Bait and switch
Personal property transferred by will
Simultaneous ownership of a given piece of property by two or more persons - Tenancy in common; Joint tenancy; and Community property.
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

41. Abstract of title
A copy of all recorded documents dealing with a property. Attorneys give title opinions based on abstracts.
Transfer of all interest in a contract or lease.
Transfer of all rights under a contract to a third party. Assignor remains secondarily liability.
Inducing panic selling based on fear of the entry of persons of another race - color - religion - or ancestry into the area.

42. Budle of rights - 5 things

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43. California has three sets of base lines and meridian
Cconsists of all property acquired by a husband and wife - or either - during a valid marriage - other than separate property
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.
Nonjudicial process for resolution of disputes either by agreement or mandated by law.
An acknowledgment of the grantor's signature

44. Attractive nuisance doctrine
Separate ownershi and Concurrent ownership; a. Tenancy in common; b. Joint tenancy; and c. Community property.
An owner has a duty to reasonably protect children from injury when the premises are likely to attract children.
43560 square feet
Negotiable commission for residential

45. 43560 square feet =
A procedural act that must be complied with prior to revocation - suspension - or denial of a real estate license.
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
A note that will liquidate itself over its term in equal installments
1 square mile

46. Tenancy in partnershipm
Zoning for beauty or appearance. Appearance of zone may have a pattern in architecture - colors - and styles.
An owner has a duty to reasonably protect children from injury when the premises are likely to attract children.
Changes in escrow instructions - which require the agreement of both the buyer and seller.
Two or more persons - as partners - own property for partnership purposes

47. RESPA
Real Estate Settlement Procedures Act - requires special information booklet - requires good faith estimate - requires uniform settlement statement
Nonjudicial process for resolution of disputes either by agreement or mandated by law.
36 individual square miles or 640 acres.
Promise for a promise.

48. Deed of reconveyance
A clause in a mortgage or trust deed that the senior lienholder will retain lien priority in the event of a merger.
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.
Deed from trustee to trustor - at the request of the beneficiary of trust (lender) - that returns title to the trustor on payment of indebtedness
An owner has a duty to reasonably protect children from injury when the premises are likely to attract children.

49. Beneficiary statement
Vertical in the township and section system
Federal National Mortgage Association
Statement by beneficiary as to balance due on loan.
Elements of a contract - mutual COnsent - CApacity - COnsideration - LAwful purpose ( must be in writing )

50. Ranges
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
real estate
Vertical in the township and section system
Grid of vertical lines (US Government and township)