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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. Avulsion
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.
Lender (or seller) in a trust deed loan situation
The sudden removal of land by action of water - such as a river changing course.

2. FIRPTA
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
Foreign Investments in Real Property Tax Act
Easement that gives the dominant tenement owner the right to use the servient tenement.
Negotiable commission for residential

3. Administrator
A person appointed by the court to administer the estate of a deceased person.
Licensed real estate agent who can deal directly with principals and employ licensed real estate salepersons
One who represents another in an agency relationship.
Legal relationship under which an agent represents another - or principal - in dealings with third parties.

4. REIT
For Sale By Owners
Elements of a contract - mutual COnsent - CApacity - COnsideration - LAwful purpose ( must be in writing )
Owner assigns right to collect rent to another. Usually given to a lienholder when owner is delinquent in rent
Real Estate Investment Trust

5. Advance fee addendum
43560 square feet
An agreement specifying activities for which the agent is to be compensated. It would include provisions for an advance payment of fees.
Horizontal in the township and section system
Competitive Market Analysis

6. Major repairs in the past 5 years ( house for sale )...
One broker
The Broker is the Agent of the seller. The salesperson is the
The seller's signature
Must be disclosed to the buyer if

7. Which corner does the township numbering system start in?
An acknowledgment of the grantor's signature
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 final payment that is more than twice the amount of the lowest payment.
NE - North East

8. Township
NE - North East
Real Estate Settlement Procedures Act - requires special information booklet - requires good faith estimate - requires uniform settlement statement
36 individual square miles or 640 acres.
The Fiduciary Duty owed to a principal (seller) by the Agent (broker) obedience - loyalty - disclosure - confidentiality - accountability - reasonable use of (skill - training - experience - competency)

9. Separate property of a married person includes...
An act that requires recordings and publication of a sale not in the normal course of business.
Easement that gives the dominant tenement owner the right to use the servient tenement.
Truth in Lending Act - Implemented by Regulation Z set by the Federal Trade Commission
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

10. Accord and satisfaction
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
Title or interest acquired by the grantor after property has been conveyed.
An agreement to accept a lesser consideration than bargained for based on disagreement over performance.
The revocation of a specific property grant in a will by disposing of said property prior to death.

11. FNMA
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
Federal National Mortgage Association
Real Estate Educators Association
real estate

12. Concurrent ownership or co-ownership
Horizontal 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
Commission is only controlled by law under two situations. One being If property is sold while in probate and...
Simultaneous ownership of a given piece of property by two or more persons - Tenancy in common; Joint tenancy; and Community property.

13. Liquidated damages
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.
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
Licensed real estate agent who can deal directly with principals and employ licensed real estate salepersons
Transfer of all rights under a contract to a third party. Assignor remains secondarily liability.

14. 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.
The Broker is the Agent of the seller. The salesperson is the sub-agent of the
Real Estate Educators Association
Separate ownershi and Concurrent ownership; a. Tenancy in common; b. Joint tenancy; and c. Community property.

15. 1 square mile =
Department of Housing and Urban Development
Inducing panic selling based on fear of the entry of persons of another race - color - religion - or ancestry into the area.
Truth in Lending Act - Implemented by Regulation Z set by the Federal Trade Commission
43560 square feet

16. Adverse possession
Federal Trade Commission
A method to acquire title. It requires five-year - open - notorious - uninterrupted use under some claim of right - and the payment of taxes.
Zoning for beauty or appearance. Appearance of zone may have a pattern in architecture - colors - and styles.
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.

17. PITI
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
Items used to qualify a buyer for the proper debt:income ratio. Usually 1/3 of gross income. principle - interest - taxes - insurance
After being acknowledged - any instrument or judgment affecting the title to or possession of real property may be recorded
Person holding title to real property in severalty

18. Bilateral contract - p4p
Provides for rent as a percentage of the tenants' gross income ( gross sales )
Finance charge and annual percentage rate - Regulation Z
Promise for a promise.
Loss in value from any cause? is a common definition

19. CMA
Licensed real estate agent who can deal directly with principals and employ licensed real estate salepersons
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
Competitive Market Analysis
Any loss of value due to conditions outside of the property itself. aka social obsolescence

20. Bankruptcy
Elements of a contract - mutual COnsent - CApacity - COnsideration - LAwful purpose ( must be in writing )
A copy of all recorded documents dealing with a property. Attorneys give title opinions based on abstracts.
Mortgages in California
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.

21. Blanket encumbrance
A mortgage or trust deed covering more than one property
A quitclaim deed conveys only the present right - title and interest of the
that he is acting as an optionor
A person appointed by the court to administer the estate of a deceased person.

22. Amendments to the escrow instructions
Changes in escrow instructions - which require the agreement of both the buyer and seller.
Owner assigns right to collect rent to another. Usually given to a lienholder when owner is delinquent in rent
Personal property transferred by will
An owner has a duty to reasonably protect children from injury when the premises are likely to attract children.

23. depreciation
Loss in value from any cause? is a common definition
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.
Zoning for density with open-space requirements as well as setback - parking - and height restrictions
The revocation of a specific property grant in a will by disposing of said property prior to death.

24. California has three sets of base lines and meridian
Competitive Market Analysis
A change made to a note or contract by one of the parties without the consent of the other.
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 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.

25. Arbitration
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
By recorded map; by U. S. Government section and township; and by metes and bounds
Nonjudicial process for resolution of disputes either by agreement or mandated by law.
Loss in value from any cause? is a common definition

26. Breach of contract
Failure to comply with a material term or provision of a contract
Commission is only controlled by law under two situations. One being the Real Property Loan Law and...
Separate ownershi and Concurrent ownership; a. Tenancy in common; b. Joint tenancy; and c. Community property.
Transfer of all interest in a contract or lease.

27. 640 acres =
A covenant under which an owner is required to do something - such as build within a stated period of time.
1 square mile
A formal declaration of the truthfulness of a statement - given in lieu of a verification.
Multiple Listing Service

28. Alteration
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 change made to a note or contract by one of the parties without the consent of the other.
A covenant under which an owner is required to do something - such as build within a stated period of time.
Real Estate Equity Trust

29. Administrative Procedure Act
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 statement made before a notary or court officer that the signing of a document was the signer's own free act.
A fee for rental information accepted in advance - or a promotional fee for a sale listing.
A procedural act that must be complied with prior to revocation - suspension - or denial of a real estate license.

30. Real property is synonymous with...
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.
Easement that gives the dominant tenement owner the right to use the servient tenement.
Loss in value from any cause? is a common definition
real estate

31. Anticipatory breach
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.
A clause in a mortgage or trust deed that the senior lienholder will retain lien priority in the event of a merger.
Act of a party that can be treated as a breach of contract because it makes performance by that party impossible.
Part of the Business and Professions Code covering loan costs - commissions - and payment requirements relating to loan brokerage activity.

32. Tenancy in partnershipm
Vertical in the township and section system
A mutual exchange of promises.
Two or more persons - as partners - own property for partnership purposes
An action to remove a nuisance

33. American Land Title Association
ALTA - The association that developed an extended-coverage policy of title insurance for lenders ( same coverage available to buyers )
Real Estate Equity Trust
One broker
Vertical in the township and section system

34. Assumable loan
Truth in Lending Act - Implemented by Regulation Z set by the Federal Trade Commission
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 quitclaim deed conveys only the present right - title and interest of the
A change made to a note or contract by one of the parties without the consent of the other.

35. Uniform Settlement Statement
Statement of the actual settlement costs. Provided by US Dept of HUD.
Offer the seller suggestions on ways to show a home for maximum positive first impression
Transfer of all interest in a contract or lease.
A person appointed as an agent under a power of attorney

36. Assignment of rent
Changes in escrow instructions - which require the agreement of both the buyer and seller.
Owner assigns right to collect rent to another. Usually given to a lienholder when owner is delinquent in rent
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.
Horizontal in the township and section system

37. REEA
Foreign Investments in Real Property Tax Act
Real Estate Educators Association
Negotiable commission for residential
Part of the Business and Professions Code governing transactions in trust deeds and real property sales contracts

38. Joists
Instrument used to secure a loan on personal property is called
Negotiable commission for residential
Parallel wooden members used to support floor and ceiling loads are called
The Fiduciary Duty owed to a principal (seller) by the Agent (broker) obedience - loyalty - disclosure - confidentiality - accountability - reasonable use of (skill - training - experience - competency)

39. Agent
Elements of a contract - mutual COnsent - CApacity - COnsideration - LAwful purpose ( must be in writing )
The party required to prove a fact when an issue is in dispute
One who represents another in an agency relationship.
An agreement specifying activities for which the agent is to be compensated. It would include provisions for an advance payment of fees.

40. NAIFA
Personal property transferred by will
National Association of Independent Fee Appraisers
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
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

41. FHLMC
Real Estate Mortgage Trust
Federal Home Loan Mortgage Corporation
An agreement to accept a lesser consideration than bargained for based on disagreement over performance.
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

42. Separate ownership
1 square mile
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
Ownership by one person
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

43. Grantor - quitclaim
Law prohibits discrimination in supplying housing accommodations because of race - color - religion - sex - marital status - national origin - ancestry - age - familial status or disability.
Nonjudicial process for resolution of disputes either by agreement or mandated by law.
A quitclaim deed conveys only the present right - title and interest of the
Separate ownershi and Concurrent ownership; a. Tenancy in common; b. Joint tenancy; and c. Community property.

44. Trust Deed
The gradual buildup of land by natural causes ( generally by action of water )
A procedural act that must be complied with prior to revocation - suspension - or denial of a real estate license.
Instrument used to secure a loan on personal property is called
Inducing panic selling based on fear of the entry of persons of another race - color - religion - or ancestry into the area.

45. Budle of rights - 5 things

46. 43560 square feet =
1 square mile
ALTA - The association that developed an extended-coverage policy of title insurance for lenders ( same coverage available to buyers )
Something that belongs to and goes with a property - such as structure and easement rights
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

47. Attorney-in-fact
The sudden removal of land by action of water - such as a river changing course.
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.
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 person appointed as an agent under a power of attorney

48. Attachment
Finance charge and annual percentage rate - Regulation Z
A prejudgment lien that can be obtained to ensure the availability of property for execution after a judgment is obtained.
Personal property transferred by will
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. Open end mortgage
Use of personal property to secure or guarantee a promissory note.
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
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.
Real Property Securities Dealer

50. Three most common methods of describing property
Part of the Business and Professions Code governing transactions in trust deeds and real property sales contracts
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 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
By recorded map; by U. S. Government section and township; and by metes and bounds