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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. Liquidated damages
The Fiduciary Duty owed to a principal (seller) by the Agent (broker) obedience - loyalty - disclosure - confidentiality - accountability - reasonable use of (skill - training - experience - competency)
The Broker is the Agent of the seller. The salesperson is the
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
Notice that has been expressly given and is known to a party

2. The maximum commission a broker may charge a seller for the sale of residential income property
All beneficial rights that go with ownership of real property
Negotiable commission for residential
Agency in which an agent has a financial interest in the subject matter of the agency.
Foreign Investments in Real Property Tax Act

3. Bequest
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
Any loss of value due to conditions outside of the property itself. aka economic obsolescence
Personal property transferred by will
NE - North East

4. Salesperson can only work for...
One broker
Prohibits discrimination in a place of public accommodation based on an individual's physical or mental disabilities.
A person appointed as an agent under a power of attorney
By recorded map; by U. S. Government section and township; and by metes and bounds

5. Instrument
Licensed real estate agent who can deal directly with principals and employ licensed real estate salepersons
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.
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
Must be disclosed to the buyer if

6. Agency by ratification

7. Bilateral contract
A formal declaration of the truthfulness of a statement - given in lieu of a verification.
Within 3 days from acceptance of the offer (this must happen)
A mutual exchange of promises.
The Broker is the Agent of the seller. The salesperson is the

8. TTIP
Property owned by husband and wife
Joint tenants have: unity of time - unity of title - unity of interest - unity of possession
A formal declaration of the truthfulness of a statement - given in lieu of a verification.
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

9. Abstract of judgment

10. Agency
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
Legal relationship under which an agent represents another - or principal - in dealings with third parties.
Truth in Lending Act - Implemented by Regulation Z set by the Federal Trade Commission
One broker

11. Amendments to the escrow instructions
Multiple Listing Service
Vertical in the township and section system
Changes in escrow instructions - which require the agreement of both the buyer and seller.
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.

12. 1 square mile =
Alternative Minimum Tax - requires taxpayers - who make above a certain amount of gross income to - to figure taxes twice.
After being acknowledged - any instrument or judgment affecting the title to or possession of real property may be recorded
43560 square feet
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

13. NAIFA
National Association of Independent Fee Appraisers
Person holding title to real property in severalty
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
Any loss of value due to conditions outside of the property itself. aka economic obsolescence

14. Unruh Civil Rights Act - California
Finance charge and annual percentage rate - Regulation Z
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
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
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

15. Fair Employment and Housing Act
A fee for rental information accepted in advance - or a promotional fee for a sale listing.
Law prohibits discrimination in supplying housing accommodations because of race - color - religion - sex - marital status - national origin - ancestry - age - familial status or disability.
Financial Institute Reform - Recovery - and Enforcement Act of 1989
Any loss of value due to conditions outside of the property itself. aka social obsolescence

16. FIRPTA
Foreign Investments in Real Property Tax Act
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
A mutual exchange of promises.
Within 3 days from acceptance of the offer (this must happen)

17. FSBO's
For Sale By Owners
Provides for rent as a percentage of the tenants' gross income ( gross sales )
Owner assigns right to collect rent to another. Usually given to a lienholder when owner is delinquent in rent
8 Ways to terminate an easement Abandonment - Destruction - Adverse Possession - Merger - Express Agreement - Lawsuit - Estoppel - Excessive use

18. FNMA
A final payment that is more than twice the amount of the lowest payment.
Mortgages in California
Federal National Mortgage Association
Real Estate Equity Trust

19. Major repairs in the past 5 years ( house for sale )...
Must be disclosed to the buyer if
A statement made before a notary or court officer that the signing of a document was the signer's own free act.
Notice that has been expressly given and is known to a party
A covenant under which an owner is required to do something - such as build within a stated period of time.

20. Township
Simultaneous ownership of a given piece of property by two or more persons - Tenancy in common; Joint tenancy; and Community property.
Two or more persons - as partners - own property for partnership purposes
36 individual square miles or 640 acres.
All payments become due upon default of payment. In California - the debtor can cure the default by catching up on payments prior to foreclosure.

21. REEA
Real Estate Educators Association
Foreign Investments in Real Property Tax Act
Act of a party that can be treated as a breach of contract because it makes performance by that party impossible.
Federal Home Loan Mortgage Corporation

22. Housing Financial Discrimination Act of 1977 (Holden Act)
Mortgages in California
The Broker is the Agent of the seller. The salesperson is the
Any loss of value due to conditions outside of the property itself. aka social 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

23. Attorney-in-fact
Provides for rent as a percentage of the tenants' gross income ( gross sales )
A person appointed as an agent under a power of attorney
Time tested model used in writing ads - Attention - Interest - Desire - Action
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

24. Assuming a loa

25. Meridians
A procedural act that must be complied with prior to revocation - suspension - or denial of a real estate license.
Vertical in the township and section system
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
Multiple Listing Service

26. The Recovery Account
A covenant under which an owner is required to do something - such as build within a stated period of time.
Deed from trustee to trustor - at the request of the beneficiary of trust (lender) - that returns title to the trustor on payment of indebtedness
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
Real Estate Mortgage Trust

27. Ademption
Advance payments made to an agent to cover expected cash outlays in carrying out the agency.
The revocation of a specific property grant in a will by disposing of said property prior to death.
A mutual exchange of promises.
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

28. Tax delinquent real property not redeemed by the owner during the five-year statutory redemption period...
1 square mile
A disclosure statement given to borrowers by mortgage loan brokers that provides information on all costs - fees - and loan terms.
An agreement specifying activities for which the agent is to be compensated. It would include provisions for an advance payment of fees.
is deeded to the county

29. Ad valorum taxes
Taxes based on value - such as property tax. ( Latin - according to value )
The party required to prove a fact when an issue is in dispute
Lender (or seller) in a trust deed loan situation
The seller's signature

30. Real property is synonymous with...
real estate
A method to acquire title. It requires five-year - open - notorious - uninterrupted use under some claim of right - and the payment of taxes.
The Broker is the Agent of the seller. The salesperson is the sub-agent of the
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

31. PITI
An action to remove a nuisance
Items used to qualify a buyer for the proper debt:income ratio. Usually 1/3 of gross income. principle - interest - taxes - insurance
Personal property transferred by will
36 individual square miles or 640 acres.

32. Administrative Procedure Act
A procedural act that must be complied with prior to revocation - suspension - or denial of a real estate license.
A covenant under which an owner is required to do something - such as build within a stated period of time.
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
Elements of a contract - mutual COnsent - CApacity - COnsideration - LAwful purpose ( must be in writing )

33. GNMA
An owner has a duty to reasonably protect children from injury when the premises are likely to attract children.
Federal Trade Commission
Agency in which an agent has a financial interest in the subject matter of the agency.
Government National Mortgage Association

34. Bilateral contract - p4p
Any loss of value due to conditions outside of the property itself. aka economic obsolescence
Real Estate Educators Association
Promise for a promise.
Prohibits discrimination in a place of public accommodation based on an individual's physical or mental disabilities.

35. A tenancy in common
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 mortgage or trust deed covering more than one property
Real Property Securities Dealer
Joint ownership of real property by two or more persons - each of whom has an undivided interest (not necessarily equal) without right of survivorship

36. Blockbusting
Sales prices of comparable properties
A loan to be completely repaid - principal and interest - by a series of regular equal installment payments
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
Inducing panic selling based on fear of the entry of persons of another race - color - religion - or ancestry into the area.

37. Bankruptcy
Law prohibits discrimination in supplying housing accommodations because of race - color - religion - sex - marital status - national origin - ancestry - age - familial status or disability.
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.
Ownership by one person
Parallel wooden members used to support floor and ceiling loads are called

38. Blind ad
36 individual square miles or 640 acres.
Simultaneous ownership of a given piece of property by two or more persons - Tenancy in common; Joint tenancy; and Community property.
Real Estate Mortgage Trust
An advertisement that fails to reveal that the advertiser is an agent and not a principal

39. 3 years - broker documents
Financial Institute Reform - Recovery - and Enforcement Act of 1989
Copies of all listings - deposit receipts - canceled checks - and trust records must be retained by a licensed real estate broker
Notice that has been expressly given and is known to a party
Inducing panic selling based on fear of the entry of persons of another race - color - religion - or ancestry into the area.

40. Three most common methods of describing property
An agency created by a principal's approving an unauthorized act of another.
A covenant under which an owner is required to do something - such as build within a stated period of time.
Real Estate Equity Trust
By recorded map; by U. S. Government section and township; and by metes and bounds

41. Deed of reconveyance
Deed from trustee to trustor - at the request of the beneficiary of trust (lender) - that returns title to the trustor on payment of indebtedness
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
Within 3 days from acceptance of the offer (this must happen)
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. amortized note
Transfer of all rights under a contract to a third party. Assignor remains secondarily liability.
Parallel wooden members used to support floor and ceiling loads are called
Provides for rent as a percentage of the tenants' gross income ( gross sales )
A note that will liquidate itself over its term in equal installments

43. Agent
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.
One who represents another in an agency relationship.
Transfer of all rights under a contract to a third party. Assignor remains secondarily liability.
An acknowledgment of the grantor's signature

44. Accretion
An act that requires recordings and publication of a sale not in the normal course of business.
An acknowledgment of the grantor's signature
The gradual buildup of land by natural causes ( generally by action of water )
Foreign Investments in Real Property Tax Act

45. Institutional advertising

46. A valid deed does not have to contain

47. Assignment of contract
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
Person holding title to real property in severalty
Transfer of all rights under a contract to a third party. Assignor remains secondarily liability.
A mutual exchange of promises.

48. Bulk zoning
Transfer of all rights under a contract to a third party. Assignor remains secondarily liability.
A formal declaration of the truthfulness of a statement - given in lieu of a verification.
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

49. vendor (term in real estate)
National Association of Independent Fee Appraisers
In a legal sales contract - the seller is often referred to as the
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
Loss of value due to adverse factors within a structure that affect the marketability of the property.

50. Staging
An acknowledgment of the grantor's signature
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
Offer the seller suggestions on ways to show a home for maximum positive first impression
Loss of value due to adverse factors within a structure that affect the marketability of the property.