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California Real Estate Test

Instructions:

Answer 50 questions in 15 minutes.
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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. vendor (term in real estate)
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
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.
In a legal sales contract - the seller is often referred to as the
Loss in value from any cause? is a common definition

2. Assuming a loa
Act of a party that can be treated as a breach of contract because it makes performance by that party impossible.
The buyer's agreeing to be primarily liable on the loan while the seller has secondary liability
Truth in Lending Act - Implemented by Regulation Z set by the Federal Trade Commission
Zoning for beauty or appearance. Appearance of zone may have a pattern in architecture - colors - and styles.

3. Tenancy in partnershipm
Two or more persons - as partners - own property for partnership purposes
Buyer to take possession 3 days after the close of escrow
Transfer of all rights under a contract to a third party. Assignor remains secondarily liability.
Transfer of all interest in a contract or lease.

4. Advance fee addendum
NE - North East
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
An agreement specifying activities for which the agent is to be compensated. It would include provisions for an advance payment of fees.
A statement made before a notary or court officer that the signing of a document was the signer's own free act.

5. amortized note
A note that will liquidate itself over its term in equal installments
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
An action to remove a nuisance
An agreement specifying activities for which the agent is to be compensated. It would include provisions for an advance payment of fees.

6. Real Property Loan Law
An action to remove a nuisance
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...
An agreement to accept a lesser consideration than bargained for based on disagreement over performance.

7. Ademption
Agency in which an agent has a financial interest in the subject matter of the agency.
Grid horizontal lines (US Government and township)
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.
The revocation of a specific property grant in a will by disposing of said property prior to death.

8. Agency by estoppel
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.
An act that requires recordings and publication of a sale not in the normal course of business.
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
Loss in value from any cause? is a common definition

9. Principle or 3rd party
Very generally as any right or interest in land - possessed by a stranger to the title - which affects the value of the owner's estate but does not prevent the owner from enjoying and transferring the fee
The Broker is the Agent of the seller. The salesperson is the sub-agent of the
Offer the seller suggestions on ways to show a home for maximum positive first impression
The seller's signature

10. MARIA
Provides for rent as a percentage of the tenants' gross income ( gross sales )
Offer the seller suggestions on ways to show a home for maximum positive first impression
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
Grid of vertical lines (US Government and township)

11. Balloon payment
A final payment that is more than twice the amount of the lowest payment.
Lender (or seller) in a trust deed loan situation
A note that will liquidate itself over its term in equal installments
A disclosure statement given to borrowers by mortgage loan brokers that provides information on all costs - fees - and loan terms.

12. Meridians
After being acknowledged - any instrument or judgment affecting the title to or possession of real property may be recorded
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
Vertical in the township and section system
Copies of all listings - deposit receipts - canceled checks - and trust records must be retained by a licensed real estate broker

13. PITI
A disclosure statement given to borrowers by mortgage loan brokers that provides information on all costs - fees - and loan terms.
An agency created by a principal's approving an unauthorized act of another.
Items used to qualify a buyer for the proper debt:income ratio. Usually 1/3 of gross income. principle - interest - taxes - insurance
A loan to be completely repaid - principal and interest - by a series of regular equal installment payments

14. Beneficiary statement
Real Estate Mortgage Trust
An owner has a duty to reasonably protect children from injury when the premises are likely to attract children.
Statement by beneficiary as to balance due on loan.
Buyer to take possession 3 days after the close of escrow

15. depreciation
The gradual buildup of land by natural causes ( generally by action of water )
Loss in value from any cause? is a common definition
Sales prices of comparable properties
Truth in Lending Act - Implemented by Regulation Z set by the Federal Trade Commission

16. Accretion
An action to remove a nuisance
The gradual buildup of land by natural causes ( generally by action of water )
Truth in Lending Act - Implemented by Regulation Z set by the Federal Trade Commission
1 square mile

17. Monthly house payment (ratio standard)
A change made to a note or contract by one of the parties without the consent of the other.
Ownership by one person
Principal + Interest + Monthly taxes and insurance + homeowners assoc. fee = 25% - 30% gross monthly income
A procedural act that must be complied with prior to revocation - suspension - or denial of a real estate license.

18. CMA
Horizontal in the township and section system
All beneficial rights that go with ownership of real property
Ownership by one person
Competitive Market Analysis

19. Ownership of real property
Joint tenants have: unity of time - unity of title - unity of interest - unity of possession
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.
Separate ownershi and Concurrent ownership; a. Tenancy in common; b. Joint tenancy; and c. Community property.
Advance payments made to an agent to cover expected cash outlays in carrying out the agency.

20. Aesthetic zoning
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.
Grid of vertical lines (US Government and township)
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
Zoning for beauty or appearance. Appearance of zone may have a pattern in architecture - colors - and styles.

21. Bundle of rights
All beneficial rights that go with ownership of real property
Instrument used to secure a loan on personal property is called
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
Ownership by one person

22. Encumbrance
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
Very generally as any right or interest in land - possessed by a stranger to the title - which affects the value of the owner's estate but does not prevent the owner from enjoying and transferring the fee
Legal relationship under which an agent represents another - or principal - in dealings with third parties.

23. Bankruptcy
8 Ways to terminate an easement Abandonment - Destruction - Adverse Possession - Merger - Express Agreement - Lawsuit - Estoppel - Excessive use
Financial Institute Reform - Recovery - and Enforcement Act of 1989
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.
Loss of value due to adverse factors within a structure that affect the marketability of the property.

24. The Recovery Account
Person holding title to real property in severalty
A copy of all recorded documents dealing with a property. Attorneys give title opinions based on abstracts.
Zoning for density with open-space requirements as well as setback - parking - and height restrictions
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

25. Assignment of contract
A mortgage or trust deed covering more than one property
All beneficial rights that go with ownership of real property
Transfer of all rights under a contract to a third party. Assignor remains secondarily liability.
Easement that gives the dominant tenement owner the right to use the servient tenement.

26. Administrative agency
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
NE - North East
A government agency that makes rules and regulations to carry out the law.
Real Estate Mortgage Trust

27. Economic obsolescence
Any loss of value due to conditions outside of the property itself. aka social obsolescence
Provides for rent as a percentage of the tenants' gross income ( gross sales )
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.
An action to remove a nuisance

28. Social obsolescence
Any loss of value due to conditions outside of the property itself. aka economic obsolescence
Commission is only controlled by law under two situations. One being If property is sold while in probate and...
Grid horizontal lines (US Government and township)
The sudden removal of land by action of water - such as a river changing course.

29. Amendments to the escrow instructions
Changes in escrow instructions - which require the agreement of both the buyer and seller.
Government National Mortgage Association
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.
Any loss of value due to conditions outside of the property itself. aka economic obsolescence

30. A valid deed does not have to contain
Zoning for beauty or appearance. Appearance of zone may have a pattern in architecture - colors - and styles.
Federal Home Loan Mortgage Corporation
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 acknowledgment of the grantor's signature

31. Alteration
A disclosure statement given to borrowers by mortgage loan brokers that provides information on all costs - fees - and loan terms.
A copy of all recorded documents dealing with a property. Attorneys give title opinions based on abstracts.
A change made to a note or contract by one of the parties without the consent of the other.
Two or more persons - as partners - own property for partnership purposes

32. RPSD
Federal Trade Commission
Law prohibits discrimination in supplying housing accommodations because of race - color - religion - sex - marital status - national origin - ancestry - age - familial status or disability.
By recorded map; by U. S. Government section and township; and by metes and bounds
Real Property Securities Dealer

33. Antimerger clause
Government National Mortgage Association
Finance charge and annual percentage rate - Regulation Z
Transfer of all rights under a contract to a third party. Assignor remains secondarily liability.
A clause in a mortgage or trust deed that the senior lienholder will retain lien priority in the event of a merger.

34. Open end mortgage
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.
Competitive Market Analysis
Vertical in the township and section system
Nonjudicial process for resolution of disputes either by agreement or mandated by law.

35. FTC
Financial Institute Reform - Recovery - and Enforcement Act of 1989
Provides for project approval in close proximity to earthquake faults - as well as disclosures to buyers.
Federal Trade Commission
Person holding title to real property in severalty

36. Appurtenance
The gradual buildup of land by natural causes ( generally by action of water )
Something that belongs to and goes with a property - such as structure and easement rights
Financial Institute Reform - Recovery - and Enforcement Act of 1989
Part of the Business and Professions Code governing transactions in trust deeds and real property sales contracts

37. 3 years - broker documents
Copies of all listings - deposit receipts - canceled checks - and trust records must be retained by a licensed real estate broker
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
is deeded to the county
National Association of Independent Fee Appraisers

38. REEA
Foreign Investments in Real Property Tax Act
Instrument used to secure a loan on personal property is called
One who represents another in an agency relationship.
Real Estate Educators Association

39. Liquidated damages
By recorded map; by U. S. Government section and township; and by metes and bounds
Legal relationship under which an agent represents another - or principal - in dealings with third parties.
Transfer of all interest in a contract or lease.
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. If property is sold while in probate
Transfer of all interest in a contract or lease.
Transfer of all rights under a contract to a third party. Assignor remains secondarily liability.
A prejudgment lien that can be obtained to ensure the availability of property for execution after a judgment is obtained.
Commission is only controlled by law under two situations. One being the Real Property Loan Law and...

41. Agent
One who represents another in an agency relationship.
Transfer of all rights under a contract to a third party. Assignor remains secondarily liability.
is deeded to the county
Statement by beneficiary as to balance due on loan.

42. Adam E Lee
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
Any loss of value due to conditions outside of the property itself. aka economic obsolescence
8 Ways to terminate an easement Abandonment - Destruction - Adverse Possession - Merger - Express Agreement - Lawsuit - Estoppel - Excessive use
Simultaneous ownership of a given piece of property by two or more persons - Tenancy in common; Joint tenancy; and Community property.

43. GNMA
An advertisement that fails to reveal that the advertiser is an agent and not a principal
Government National Mortgage Association
Legal relationship under which an agent represents another - or principal - in dealings with third parties.
Finance charge and annual percentage rate - Regulation Z

44. Bilateral contract - p4p
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.
Promise for a promise.
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 government agency that makes rules and regulations to carry out the law.

45. Institutional advertising
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
One broker
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
Attempt to establish a firm's identity to the public

46. Burden of proof
The party required to prove a fact when an issue is in dispute
A note that will liquidate itself over its term in equal installments
A copy of all recorded documents dealing with a property. Attorneys give title opinions based on abstracts.
Real Estate Equity Trust

47. Federal Housing Administration - role
Real Estate Equity Trust
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
Deed from trustee to trustor - at the request of the beneficiary of trust (lender) - that returns title to the trustor on payment of indebtedness
Created in 1934 to provide mortgage insurance on loans made by FHA - approved lenders - part of HUD

48. Abatement
An agreement specifying activities for which the agent is to be compensated. It would include provisions for an advance payment of fees.
An action to remove a nuisance
A method to acquire title. It requires five-year - open - notorious - uninterrupted use under some claim of right - and the payment of taxes.
Created in 1934 to provide mortgage insurance on loans made by FHA - approved lenders - part of HUD

49. Assumable loan
Foreign Investments in Real Property Tax 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
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.
Commission is only controlled by law under two situations. One being If property is sold while in probate and...

50. OLDCAR
8 Ways to terminate an easement Abandonment - Destruction - Adverse Possession - Merger - Express Agreement - Lawsuit - Estoppel - Excessive use
Easement that gives the dominant tenement owner the right to use the servient tenement.
The Fiduciary Duty owed to a principal (seller) by the Agent (broker) obedience - loyalty - disclosure - confidentiality - accountability - reasonable use of (skill - training - experience - competency)
Very generally as any right or interest in land - possessed by a stranger to the title - which affects the value of the owner's estate but does not prevent the owner from enjoying and transferring the fee

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