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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. Amendments to the escrow instructions
The party required to prove a fact when an issue is in dispute
Commission is only controlled by law under two situations. One being If property is sold while in probate and...
Changes in escrow instructions - which require the agreement of both the buyer and seller.
Lender (or seller) in a trust deed loan situation

2. Fair Employment and Housing Act
Taxes based on value - such as property tax. ( Latin - according to value )
Financial Institute Reform - Recovery - and Enforcement Act of 1989
National Association of Independent Fee Appraisers
Law prohibits discrimination in supplying housing accommodations because of race - color - religion - sex - marital status - national origin - ancestry - age - familial status or disability.

3. Recording Act of California
Joint tenants have: unity of time - unity of title - unity of interest - unity of possession
After being acknowledged - any instrument or judgment affecting the title to or possession of real property may be recorded
Financial Institute Reform - Recovery - and Enforcement Act of 1989
is deeded to the county

4. 1 square mile =
Property owned by husband and wife
A clause in a mortgage or trust deed that the senior lienholder will retain lien priority in the event of a merger.
Lender (or seller) in a trust deed loan situation
43560 square feet

5. Beneficiary
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but market desire is for a double car garage - home has only 1 bathroom but market desires two - floor plan is an older outdated layout
Lender (or seller) in a trust deed loan situation
1 square mile
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.

6. Bait and switch
1 square mile
Instrument used to secure a loan on personal property is called
After being acknowledged - any instrument or judgment affecting the title to or possession of real property may be recorded
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

7. 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
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
Two or more persons - as partners - own property for partnership purposes

8. Abstract of title
A copy of all recorded documents dealing with a property. Attorneys give title opinions based on abstracts.
Any loss of value due to conditions outside of the property itself. aka social obsolescence
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
Law prohibits discrimination in supplying housing accommodations because of race - color - religion - sex - marital status - national origin - ancestry - age - familial status or disability.

9. Adam E Lee
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
Principal + Interest + Monthly taxes and insurance + homeowners assoc. fee = 25% - 30% gross monthly income
8 Ways to terminate an easement Abandonment - Destruction - Adverse Possession - Merger - Express Agreement - Lawsuit - Estoppel - Excessive use
One who represents another in an agency relationship.

10. Attractive nuisance doctrine
An owner has a duty to reasonably protect children from injury when the premises are likely to attract children.
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
Negotiable commission for residential
A formal declaration of the truthfulness of a statement - given in lieu of a verification.

11. Adverse possession
The sudden removal of land by action of water - such as a river changing course.
A procedural act that must be complied with prior to revocation - suspension - or denial of a real estate license.
A method to acquire title. It requires five-year - open - notorious - uninterrupted use under some claim of right - and the payment of taxes.
Buyer to take possession 3 days after the close of escrow

12. vendor (term in real estate)
An owner has a duty to reasonably protect children from injury when the premises are likely to attract children.
A formal declaration of the truthfulness of a statement - given in lieu of a verification.
Part of the Business and Professions Code covering loan costs - commissions - and payment requirements relating to loan brokerage activity.
In a legal sales contract - the seller is often referred to as the

13. Township
Deed from trustee to trustor - at the request of the beneficiary of trust (lender) - that returns title to the trustor on payment of indebtedness
Taxes based on value - such as property tax. ( Latin - according to value )
36 individual square miles or 640 acres.
The sudden removal of land by action of water - such as a river changing course.

14. Real property is synonymous with...
real estate
Truth in Lending Act - Implemented by Regulation Z set by the Federal Trade Commission
Elements of a contract - mutual COnsent - CApacity - COnsideration - LAwful purpose ( must be in writing )
Grid horizontal lines (US Government and township)

15. Federal Truth-in-Lending Law
is deeded to the county
The revocation of a specific property grant in a will by disposing of said property prior to death.
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.
Finance charge and annual percentage rate - Regulation Z

16. PITI
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
A quitclaim deed conveys only the present right - title and interest of the
Real Estate Settlement Procedures Act - requires special information booklet - requires good faith estimate - requires uniform settlement statement

17. A tenancy in common
Grid of vertical lines (US Government and township)
Joint ownership of real property by two or more persons - each of whom has an undivided interest (not necessarily equal) without right of survivorship
43560 square feet
A statement made before a notary or court officer that the signing of a document was the signer's own free act.

18. Antimerger clause
A clause in a mortgage or trust deed that the senior lienholder will retain lien priority in the event of a merger.
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
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

19. 'As is'
Licensed real estate agent who can deal directly with principals and employ licensed real estate salepersons
Lender (or seller) in a trust deed loan situation
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
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.

20. Staging
An advertisement that fails to reveal that the advertiser is an agent and not a principal
Negotiable commission for residential
Offer the seller suggestions on ways to show a home for maximum positive first impression
Truth in Lending Act - Implemented by Regulation Z set by the Federal Trade Commission

21. Bilateral contract - p4p
Promise for a promise.
Property owned by husband and wife
Finance charge and annual percentage rate - Regulation Z
Cconsists of all property acquired by a husband and wife - or either - during a valid marriage - other than separate property

22. Assuming a loa

23. Base lines
Provides for rent as a percentage of the tenants' gross income ( gross sales )
In a legal sales contract - the seller is often referred to as the
Horizontal in the township and section system
Real Property Securities Dealer

24. Advance costs
Advance payments made to an agent to cover expected cash outlays in carrying out the agency.
Competitive Market Analysis
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
36 individual square miles or 640 acres.

25. Tenancy in common
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
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
Property owned by husband and wife
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.

26. Three most common methods of describing property
By recorded map; by U. S. Government section and township; and by metes and bounds
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.
National Association of Independent Fee Appraisers
Simultaneous ownership of a given piece of property by two or more persons - Tenancy in common; Joint tenancy; and Community property.

27. Actual notice
Government National Mortgage Association
Taxes based on value - such as property tax. ( Latin - according to value )
Notice that has been expressly given and is known to a party
Sales prices of comparable properties

28. Beneficiary statement
Statement by beneficiary as to balance due on loan.
The revocation of a specific property grant in a will by disposing of said property prior to death.
Loss in value from any cause? is a common definition
Copies of all listings - deposit receipts - canceled checks - and trust records must be retained by a licensed real estate broker

29. Budle of rights - 5 things

30. Advance fee
A fee for rental information accepted in advance - or a promotional fee for a sale listing.
A covenant under which an owner is required to do something - such as build within a stated period of time.
Provides for project approval in close proximity to earthquake faults - as well as disclosures to buyers.
Real Estate Investment Trust

31. depreciation
A clause in a mortgage or trust deed that the senior lienholder will retain lien priority in the event of a merger.
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 action to remove a nuisance
Loss in value from any cause? is a common definition

32. Breach of contract
Commission is only controlled by law under two situations. One being If property is sold while in probate and...
Grid of vertical lines (US Government and township)
Failure to comply with a material term or provision of a contract
A procedural act that must be complied with prior to revocation - suspension - or denial of a real estate license.

33. RPSD
Real Estate Educators Association
Multiple Listing Service
Real Property Securities Dealer
Separate ownershi and Concurrent ownership; a. Tenancy in common; b. Joint tenancy; and c. Community property.

34. Meridians
The Broker is the Agent of the seller. The salesperson is the
Alternative Minimum Tax - requires taxpayers - who make above a certain amount of gross income to - to figure taxes twice.
Vertical in the township and section system
Real Estate Equity Trust

35. Community Property
36 individual square miles or 640 acres.
Property owned by husband and wife
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.

36. FNMA
Federal National Mortgage Association
A prejudgment lien that can be obtained to ensure the availability of property for execution after a judgment is obtained.
Multiple Listing Service
8 Ways to terminate an easement Abandonment - Destruction - Adverse Possession - Merger - Express Agreement - Lawsuit - Estoppel - Excessive use

37. Alquist-Priolo Special Studies Zone Act
Alternative Minimum Tax - requires taxpayers - who make above a certain amount of gross income to - to figure taxes twice.
36 individual square miles or 640 acres.
Provides for project approval in close proximity to earthquake faults - as well as disclosures to buyers.
National Association of Independent Fee Appraisers

38. Blind ad
Easement that gives the dominant tenement owner the right to use the servient tenement.
An advertisement that fails to reveal that the advertiser is an agent and not a principal
Created in 1934 to provide mortgage insurance on loans made by FHA - approved lenders - part of HUD
An agreement specifying activities for which the agent is to be compensated. It would include provisions for an advance payment of fees.

39. The Recovery Account
All payments become due upon default of payment. In California - the debtor can cure the default by catching up on payments prior to foreclosure.
Easement that gives the dominant tenement owner the right to use the servient tenement.
Legal relationship under which an agent represents another - or principal - in dealings with third parties.
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

40. Open end mortgage
The party required to prove a fact when an issue is in dispute
Principal + Interest + Monthly taxes and insurance + homeowners assoc. fee = 25% - 30% gross monthly income
Finance charge and annual percentage rate - Regulation Z
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.

41. Affirmation
A formal declaration of the truthfulness of a statement - given in lieu of a verification.
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.
Joint ownership of real property by two or more persons - each of whom has an undivided interest (not necessarily equal) without right of survivorship
Vertical in the township and section system

42. CE+3
Separate ownershi and Concurrent ownership; a. Tenancy in common; b. Joint tenancy; and c. Community property.
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
Buyer to take possession 3 days after the close of escrow
A prejudgment lien that can be obtained to ensure the availability of property for execution after a judgment is obtained.

43. Article 7
Part of the Business and Professions Code covering loan costs - commissions - and payment requirements relating to loan brokerage activity.
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
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

44. Concurrent ownership or co-ownership
By recorded map; by U. S. Government section and township; and by metes and bounds
An agreement specifying activities for which the agent is to be compensated. It would include provisions for an advance payment of fees.
Simultaneous ownership of a given piece of property by two or more persons - Tenancy in common; Joint tenancy; and Community property.
Notice that has been expressly given and is known to a party

45. Salesperson can only work for...
One broker
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
A method to acquire title. It requires five-year - open - notorious - uninterrupted use under some claim of right - and the payment of taxes.
A prejudgment lien that can be obtained to ensure the availability of property for execution after a judgment is obtained.

46. Affirmative covenant
Notice that has been expressly given and is known to a party
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.
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.

47. Arbitration
Agency in which an agent has a financial interest in the subject matter of the agency.
One who represents another in an agency relationship.
Simultaneous ownership of a given piece of property by two or more persons - Tenancy in common; Joint tenancy; and Community property.
Nonjudicial process for resolution of disputes either by agreement or mandated by law.

48. Farm
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.
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
Part of the Business and Professions Code covering loan costs - commissions - and payment requirements relating to loan brokerage activity.
Finance charge and annual percentage rate - Regulation Z

49. Grantor - quitclaim
Ownership by one person
A quitclaim deed conveys only the present right - title and interest of the
Taxes based on value - such as property tax. ( Latin - according to value )
An act that requires recordings and publication of a sale not in the normal course of business.

50. Community property
Cconsists of all property acquired by a husband and wife - or either - during a valid marriage - other than separate property
Federal Trade Commission
Promise for a promise.
Advance payments made to an agent to cover expected cash outlays in carrying out the agency.