California Real Estate Exam
1,459+ Practice Questions & Answers
Every question includes a detailed explanation. Organized by the 13 topics on the California real estate salesperson exam.
Agency
157 questions- Which of the following best describes 'agency' in real estate?
- A buyer's agent owes which fiduciary duties to their client? (OLD CAR)
- A dual agent represents:
- When does an agency relationship typically terminate?
- What is a 'subagent' in real estate?
- Which of the following best describes an 'express agency'?
- An agent who acts beyond the scope of their authority may be liable for:
- What is 'ratification' in agency law?
- A seller's agent who learns the seller is willing to accept less than the listing price must:
- A real estate agent must disclose their agency relationship to all parties:
- What is 'agency by estoppel'?
- A listing agreement is a contract between:
- In an exclusive right-to-sell listing, the broker earns a commission if:
- An exclusive agency listing differs from an exclusive right-to-sell listing because:
- What must a buyer's agent disclose to their client about a property?
- An agent who represents both the buyer and the seller in the same transaction is known as a:
- In California, which form is used to disclose the agency relationship to buyers and sellers?
- When must a listing agent provide the agency disclosure form to the seller?
- Which type of agency is created when a principal's actions lead a third party to reasonably believe an agency relationship exists?
- A seller's agent who unintentionally creates an agency relationship with the buyer by providing advice and assistance may be guilty of:
- What is the primary fiduciary duty that requires an agent to always act in the client's best interest?
- Under California law, a real estate broker who manages property for clients must maintain a separate trust account for client funds. Mixing client funds with the broker's personal funds is called:
- Which of the following would NOT terminate an agency relationship?
- A cooperating broker who finds a buyer for another broker's listing, and acts as the subagent of the seller, owes fiduciary duties to:
- The duty of an agent to keep the principal informed of all facts relevant to the transaction is called:
- When a seller lists a property 'net' — meaning they want a specific amount and the agent keeps everything above that — this arrangement is:
- A buyer's agent has a duty to maintain confidentiality about the buyer's motivations and financial position. Which of the following CAN the agent reveal to the seller?
- A property manager hired by an owner to manage an apartment complex is an example of what type of agent?
- Under California law, an agent must present all written offers to the seller unless the seller has given written instructions to the contrary. This obligation extends to offers received:
- What is 'ratification' in the context of agency law?
- A California salesperson who works for two different brokers simultaneously without disclosure is:
- The 'duty of obedience' requires a real estate agent to follow all lawful instructions of the principal. Which instruction would an agent be JUSTIFIED in refusing?
- Which fiduciary duty requires an agent to use the skills and knowledge expected of a competent real estate professional?
- In California, a 'designated agency' arrangement allows a broker to:
- After a listing expires, a former listing agent who contacts the seller directly to negotiate a new listing must:
- In California, a real estate agent who represents the buyer and the seller in the same transaction is known as a:
- The California Agency Disclosure law (Civil Code §2079) requires an agent to provide the Agency Disclosure form to buyers and sellers at what point in the transaction?
- Which fiduciary duty requires an agent to keep the principal's confidential information secret even after the agency relationship ends?
- An agent who creates the impression of being someone's agent through conduct, even without an express agreement, has created what type of agency?
- A seller's agent has a fiduciary duty of loyalty. This means the agent must:
- Under California law, which document is used to confirm the agency relationship in a residential real estate transaction?
- A buyer's agent has a duty of disclosure. Which of the following must the buyer's agent disclose to the buyer?
- What is the term for an agency created by written or oral agreement between the principal and agent?
- In California, when a broker represents both buyer and seller with written consent, what limitations apply to the dual agent?
- Which type of agency relationship is created when a principal approves an act already performed without prior authorization?
- A listing agent discovers that the home has a leaky basement that the seller did not mention. Under California law, the agent must:
- The duty of 'obedience' in a fiduciary relationship means an agent must:
- Which of the following would automatically terminate an agency relationship in California?
- What California form is commonly used to establish a formal buyer representation agreement?
- Under California's DRE regulations, a salesperson's agency obligations ultimately flow through:
- The concept of 'vicarious liability' in real estate agency means that:
- An agent who secretly purchases a listing from their own seller without disclosure has violated which fiduciary duty?
- What is the primary difference between a 'special agent' and a 'general agent' in real estate?
- In California, a listing agent who also brings the buyer and represents both parties must disclose dual agency:
- The duty of 'reasonable care and diligence' requires a real estate agent to:
- Which of the following best describes an 'exclusive right to sell' listing in terms of agency?
- What does it mean when an agent has 'apparent authority' to bind a principal?
- Under California's 'Team' advertising rules, what must a real estate team's marketing materials include?
- When may a California real estate licensee act as a principal (buying or selling for themselves) rather than as an agent?
- The duty of 'accounting' in a fiduciary relationship requires an agent to:
- In California, what is the maximum number of days a buyer's agent must provide the buyer with the Agency Disclosure form?
- A real estate agent who represents both the buyer and the seller in the same transaction is called a:
- Which of the following is NOT a fiduciary duty an agent owes to their principal?
- Under California law, a real estate salesperson legally works under the license of and owes their primary fiduciary duty to:
- An agent who represents only the seller is obligated to disclose to the buyer which of the following?
- When does an agency relationship typically terminate in a listing agreement?
- An agent who locates a ready, willing, and able buyer for a property, but who was never authorized by the seller, may still claim a commission under what legal theory?
- Subagency in real estate refers to:
- A listing agent tells potential buyers that the seller 'is highly motivated and needs to sell quickly.' This statement is:
- Which type of listing agreement gives the broker the most protection and guarantees a commission regardless of who sells the property?
- California law requires that an agency confirmation be included in:
- An agent overhears their buyer-client say they would pay up to $550,000 for a home listed at $525,000. In a dual agency situation, what should the agent do with this information?
- The duty of 'obedience' in agency law means an agent must:
- In a typical California transaction, the selling broker (buyer's agent) is considered the agent of:
- When an agent creates an agency relationship through actions rather than an explicit agreement, this is called:
- A property manager who collects rents, pays bills, and handles maintenance for a property owner is acting as:
- An agent's duty to account means:
- Which of the following actions would most likely create an undisclosed dual agency?
- If a salesperson's broker is found to have violated DRE regulations, who bears the ultimate legal and supervisory responsibility?
- An agent who acts beyond the scope of their authority without the principal's consent may expose themselves to liability for:
- Under California's agency law, a 'designated agent' refers to:
- A buyer's agent discovers that a home has significant foundation problems not disclosed by the seller. What is the agent's duty?
- The 'procuring cause' doctrine in real estate refers to:
- Which of the following best describes a 'special agent' in real estate?
- An agent who secretly profits from a transaction without the principal's knowledge has violated the fiduciary duty of:
- In California, a real estate 'agent' as defined by the agency disclosure law refers to:
- California's agency disclosure requirements mandate that the disclosure be made to a buyer or seller:
- What is 'dual agency' in a California real estate transaction?
- Which of the following is a fiduciary duty owed by a California listing broker to the seller?
- What is a 'buyer's agent' (buyer's representative) and what duties do they owe?
- Under California law, which of the following disclosures is the listing agent required to make to a buyer?
- An 'ostensible agency' (apparent authority) arises when:
- The duty of 'confidentiality' in a California agency relationship requires the agent to:
- A California salesperson may receive compensation for real estate services from:
- What is 'informed consent' in the context of California dual agency?
- A selling agent (buyer's agent) is required to conduct which type of inspection of a residential property in California?
- Under California law, a real estate agent's duty to disclose applies to which of the following?
- What is 'subagency' in real estate?
- A broker who operates as a 'transaction broker' (non-agent facilitator) in California:
- When must a California listing agent confirm the agency relationship in writing?
- In California, an agent's duty of 'obedience' to their principal means the agent must:
- The agency relationship between a California broker and salesperson is best described as:
- What is the primary purpose of California's Transfer Disclosure Statement (TDS)?
- A real estate agent who fails to disclose a known material defect to the buyer may be subject to:
- A 'designated agency' arrangement in California refers to:
- Which of the following actions by a listing agent would constitute a breach of fiduciary duty to the seller?
- How is an agency relationship most commonly created in California real estate?
- A California real estate broker's duty of 'accounting' to their principal requires the broker to:
- When does a California agency relationship typically terminate in a residential sale?
- Under California law, if a listing agent also represents the buyer in the same transaction without proper disclosure and consent, the listing agent has committed:
- Which of the following best describes a 'dual agent' in California?
- When must a California real estate agent provide the 'Disclosure Regarding Real Estate Agency Relationships' form?
- In a buyer's agency relationship, to whom does the agent owe fiduciary duties?
- What is 'ostensible agency' (also called apparent agency)?
- A seller's agent learns that the seller is in financial distress and must sell quickly. What must the agent do with this information?
- Under California law, all real estate salespersons must work under the supervision of:
- Which fiduciary duty requires an agent to follow all lawful instructions of the client?
- What is a 'net listing' and why is it controversial in California?
- An agent who fails to disclose a known material defect to a buyer may be liable for:
- What is 'ratification' as it applies to agency?
- In California, which form confirms the agency relationship at the time a purchase agreement is executed?
- A buyer's agent shows a buyer a property listed by her own broker. If neither agent is designated, this creates:
- Which of the following actions would be a violation of an agent's duty of loyalty?
- What is 'designated agency'?
- An agency relationship can be terminated by all of the following EXCEPT:
- A subagent owes fiduciary duties to:
- Which of the following is NOT a fiduciary duty owed by an agent to a client?
- When a listing expires, which of the following is still required of the agent?
- An agent representing only buyers is known as a:
- In California, what is a 'non-exclusive buyer representation agreement'?
- What disclosure must be made when a real estate licensee wishes to purchase property for themselves that they have listed?
- What is meant by the agent's duty of 'accounting'?
- A listing agreement that automatically renews unless cancelled is called a(n):
- In California, which type of listing gives only ONE broker the exclusive right to earn a commission, even if the seller finds the buyer?
- Under an exclusive agency listing, the seller retains the right to:
- Which of the following is an example of 'puffing'?
- A buyer's agent who also represents the seller without proper disclosure is guilty of:
- A real estate agent's duty of 'disclosure' includes which of the following?
- Agency by 'estoppel' means the agency is created because:
- In a 'single agency' arrangement, the agent represents:
- When does a real estate salesperson owe duties to someone who is NOT their client?
- What is a 'safety clause' (protection clause) in a listing agreement?
- Which statement about open listings is correct?
- What does the acronym 'OLDCAR' stand for in the context of agent fiduciary duties?
- What is the primary legal document that establishes the agency relationship between a seller and their real estate broker?
- What is a 'buyer representation agreement' and what does it accomplish?
- A listing agent who learns the seller is in financial distress must:
- Which of the following is an example of implied agency?
- Under California law, a real estate licensee acting as an agent must provide the Agency Disclosure form to all parties:
- A subagent represents:
- Which of the following would most likely create an ostensible (apparent) agency?
- A seller's agent discovers a material defect during a property showing. The agent must:
- The 'procuring cause' doctrine in real estate determines:
- In a transaction where both the buyer and seller are represented by agents from the same brokerage, this is called:
- A net listing is:
- A buyer's agent who also represents another buyer interested in the same property creates:
- Under California law, the Transfer Disclosure Statement (TDS) is required for:
Contracts
155 questions- Which of the following is NOT a required element of a valid contract?
- What is 'consideration' in a real estate contract?
- A contract that is 'voidable' means:
- In California, real estate contracts must be in writing to be enforceable under the:
- What happens when a buyer makes a counteroffer to the seller's counteroffer?
- What is 'specific performance' as a contract remedy?
- An 'option contract' in real estate gives the buyer:
- What does 'time is of the essence' mean in a real estate contract?
- A contingency in a real estate contract:
- What is liquidated damages in a California residential purchase agreement?
- What is novation in contract law?
- What is an 'as-is' sale in real estate?
- What is the parol evidence rule?
- A buyer submits an offer, which the seller counters. The buyer then submits a new counteroffer. What is the status of the seller's original counteroffer?
- Which of the following would make a contract void (not just voidable)?
- Which element is NOT required for a valid real estate contract in California?
- A contract that is missing an essential element is:
- Under the California Statute of Frauds, which type of agreement MUST be in writing to be enforceable?
- When a buyer makes an offer and the seller changes one term of the offer and sends it back, this is legally a:
- A liquidated damages clause in a California residential purchase agreement limits the seller's damages, if the buyer defaults, to:
- An option contract gives the optionee the:
- In contract law, 'time is of the essence' means:
- Which remedy allows a buyer to force a seller to complete the sale as agreed when the seller refuses to close?
- A contract signed under duress is:
- In a California standard residential purchase agreement, when does an offer become a binding contract?
- A contingency clause in a purchase agreement protects the buyer by:
- Mutual mistake of a material fact in a contract may allow the parties to:
- An 'as-is' clause in a purchase agreement means the buyer:
- A real estate listing agreement in which the broker earns a commission only if they are the procuring cause of the sale is called an:
- In an exclusive right to sell listing, the listing broker earns a commission if:
- The 'parol evidence rule' states that:
- What is an 'addendum' in a real estate contract?
- Which of the following best describes 'novation' in a real estate contract?
- A buyer who gives a seller a deposit check that cannot clear the bank may be liable for:
- Under California law, a minor (under 18) who signs a real estate contract:
- Which of the following is NOT one of the four essential elements required for a valid real estate contract in California?
- A contract in which one party has performed but the other has not yet is called:
- Under California's Statute of Frauds, which of the following real estate agreements must be in writing to be enforceable?
- What is 'liquidated damages' in a California residential real estate purchase contract?
- When a buyer makes an offer and the seller counters with different terms, the original offer is:
- A voidable contract is one that:
- What is the legal effect of a 'time is of the essence' clause in a California real estate contract?
- In a California residential purchase agreement, what is a 'contingency'?
- Specific performance is a legal remedy in real estate contracts where:
- Which type of contract listing gives the broker a commission only if the broker personally finds the buyer?
- A contract signed by a minor (under 18) in California is generally:
- What is 'consideration' in the context of a real estate contract?
- Under California law, a real estate licensee who acts as a loan broker in a transaction must provide the borrower with a:
- What is a 'bilateral contract' as it applies to a real estate purchase agreement?
- What is a 'net listing,' and what concern does the California DRE have regarding them?
- What happens to an offer if it is not accepted before the stated expiration time?
- A seller accepts a buyer's offer on a home. Before escrow closes, the seller receives a significantly higher offer. The seller may:
- Which of the following best describes 'mutual consent' (meeting of the minds) in contract law?
- An option contract in California real estate gives the optionee the right to:
- Under California law, what is 'rescission' of a contract?
- What is the difference between an 'assignment' and a 'novation' of a contract?
- A buyer's loan contingency in a California purchase agreement protects the buyer by:
- What does it mean for a contract to be 'void' versus 'voidable'?
- Under California's parol evidence rule, when may extrinsic (outside) evidence be introduced to change the terms of a written contract?
- A California residential purchase agreement includes a 17-day inspection contingency. On day 18, the buyer has not removed the contingency or canceled. What is the correct procedure for the seller?
- Which of the following is NOT a required element for a valid real estate contract in California?
- A buyer makes an offer on a home and the seller counters with a higher price. The buyer then submits a new offer at the seller's counter price. At this point, what is the legal status of the original offer?
- Under California law, a listing agreement for the sale of a residential property must be:
- The California Residential Purchase Agreement (RPA) is a contract that is primarily drafted by:
- When a buyer fails to complete a purchase after removing all contingencies, the seller may retain the buyer's deposit as:
- A contingency in a real estate purchase contract is best described as:
- Which of the following best describes 'time is of the essence' in a real estate contract?
- A contract that has all the elements to be legally binding but can be voided at the option of one party is called:
- In California, a minor (under age 18) who purchases real property may:
- An option contract in real estate gives the optionee the:
- Which contract remedy allows a party to ask the court to force the other party to perform their contractual obligations?
- A bilateral contract in real estate is one in which:
- Rescission of a contract means:
- A contract for the sale of real property where the buyer makes installment payments directly to the seller and receives the deed only after the final payment is called:
- Novation in a real estate contract occurs when:
- Under California law, the statute of limitations for bringing a lawsuit on a written real estate contract is generally:
- A buyer's broker submits an offer for a property listed on the MLS. The listing broker informs the buyer's broker that the seller has received a better offer. The buyer's broker asks the seller to counter anyway. Under the law of agency and contract, the listing broker should:
- Which of the following describes an 'as-is' clause in a California residential purchase agreement?
- In California, the Transfer Disclosure Statement (TDS) is required for:
- An earnest money deposit in a purchase contract is typically held by:
- When a seller accepts an offer but makes even a minor change to the terms, the result is:
- A listing agreement that gives one specific broker the right to sell a property, but still allows the owner to sell without paying a commission, is a:
- Under California law, a net listing is:
- An offer is considered revoked when:
- A purchase contract contingent on the buyer selling their current home is known as a:
- Under California law, which of the following is NOT a required element for a valid real estate contract?
- A buyer submits an offer on a home. Before the seller accepts, the buyer withdraws the offer. What is the result?
- In California, a counteroffer by the seller has what legal effect on the buyer's original offer?
- What is the California Residential Purchase Agreement (RPA) used for?
- A contract that is 'voidable' differs from a 'void' contract in that:
- A contingency in a purchase contract:
- In the California RPA, the default time period for the buyer's investigation contingency (inspection period) is:
- What happens to the buyer's earnest money deposit if the buyer backs out of a purchase contract after removing all contingencies in California?
- The legal remedy of 'specific performance' in a real estate contract means:
- Which statement best describes 'time is of the essence' in a real estate contract?
- An 'exclusive right to sell' listing gives the broker:
- Under an 'exclusive agency' listing, when does the broker NOT earn a commission?
- What is an 'option contract' in real estate?
- Which of the following would render a real estate contract void in California?
- In real estate, 'rescission' means:
- What is an 'as-is' sale in California real estate?
- A 'novation' in a real estate contract occurs when:
- The 'parol evidence rule' in contract law prevents parties from:
- In California, a real estate purchase contract entered into by a minor (under 18) is:
- An 'addendum' to a real estate contract:
- Which of the following best describes 'mutual consent' (meeting of the minds) in contract formation?
- A 'right of first refusal' clause in a real estate contract gives the holder:
- A 'seller's market' typically creates which contract dynamic?
- Under the Statute of Frauds, which type of real estate contract MUST be in writing to be enforceable?
- A 'bilateral contract' in real estate is one in which:
- When a buyer makes a counteroffer to a seller's counter-counteroffer, what happens to the original offer?
- A contract entered into by a minor (under 18) in California is generally:
- In a California purchase agreement, what does 'time is of the essence' mean?
- What is an 'earnest money deposit' in a real estate transaction?
- What is the difference between a void contract and a voidable contract?
- A real estate purchase contract is fully executed when:
- What is 'novation' in contract law?
- What is 'specific performance' as a legal remedy in real estate contracts?
- A 'contingency' in a real estate purchase agreement is:
- Under a California Residential Purchase Agreement, how long does the seller typically have to respond to an offer before it expires?
- What happens when a buyer removes all contingencies in a California purchase agreement?
- What is an 'as-is' clause in a real estate contract?
- What is 'liquidated damages' in the context of a California residential purchase agreement?
- A purchase agreement signed by a buyer who was under duress would be:
- In California, which type of deed gives the MOST protection to the buyer?
- An offer is revoked before acceptance. This is legally:
- What is an 'addendum' to a real estate contract?
- Under what circumstances may a buyer receive their earnest money deposit back without penalty in California?
- What does 'rescission' of a contract mean?
- The doctrine of 'caveat emptor' (let the buyer beware) has been largely replaced in California by:
- A listing agreement is a type of contract between:
- What is 'assignment' of a contract?
- What is a 'land contract' (contract of sale or installment sale contract)?
- In California residential real estate, the standard purchase agreement used by most agents is published by:
- A contract that is 'executory' is one that:
- Under California law, a real estate commission agreement is enforceable only if it is:
- What is 'mutual consent' (meeting of the minds) in contract law?
- Which clause in a purchase agreement requires the buyer to notify the seller of any issues discovered during inspection, or lose the right to object?
- What is the effect of 'fraud in the inducement' on a contract?
- A seller accepts a buyer's offer by email. The buyer receives the email. When is the contract formed?
- What is an 'integration clause' (merger clause) in a real estate contract?
- What is a 'counter offer' and what is its legal effect on the original offer?
- An offer becomes a contract when:
- A counter offer:
- Which of the following is NOT an essential element of a valid real estate contract?
- A contract entered into by a minor is generally:
- In California, the statute of limitations for a written contract is:
- An 'as-is' clause in a purchase contract means:
- Specific performance is a remedy that requires:
- An exclusive right-to-sell listing entitles the broker to a commission:
- Which of the following is a valid reason to void a contract?
- The California Residential Purchase Agreement (RPA) is published by:
- Time is of the essence in a real estate contract means:
- An option contract gives the optionee:
- A buyer removes all contingencies in writing. The seller then refuses to close. The buyer's most appropriate legal remedy is:
Finance
137 questions- What is the difference between a mortgage and a deed of trust?
- What does LTV stand for and what does it measure?
- What is PMI and when is it typically required?
- An adjustable-rate mortgage (ARM) is best described as:
- What is amortization in a mortgage?
- What is the purpose of RESPA (Real Estate Settlement Procedures Act)?
- What is a 'balloon payment' mortgage?
- An FHA loan is best described as:
- A VA loan is available to:
- What does 'points' mean in mortgage financing?
- What is a 'due-on-sale' clause?
- What is seller financing (purchase money mortgage)?
- What is the Truth in Lending Act (TILA) designed to do?
- What is a HELOC?
- What is a 'short sale'?
- A loan in which the interest rate changes periodically based on a financial index is called a(n):
- The 'due-on-sale' clause in a mortgage requires:
- Private Mortgage Insurance (PMI) is typically required when a borrower's down payment is:
- The annual percentage rate (APR) on a loan differs from the interest rate because it includes:
- A 'balloon payment' mortgage is characterized by:
- The federally mandated disclosure that shows the estimated loan terms and closing costs is called the:
- Which type of loan allows the borrower to draw funds as needed during a set period, using the home as collateral?
- Discount points paid at loan origination are used to:
- Under the Community Reinvestment Act (CRA), banks are required to:
- Which loan program is specifically designed for veterans and active-duty military and requires no down payment?
- In California, a deed of trust differs from a mortgage primarily because it:
- The loan-to-value (LTV) ratio is calculated as:
- The Equal Credit Opportunity Act (ECOA) prohibits lenders from discriminating based on all of the following EXCEPT:
- A 'purchase money mortgage' is best described as:
- Under Regulation Z (Truth in Lending Act), if a lender advertises a specific monthly payment, they must also disclose:
- A borrower's debt-to-income (DTI) ratio is calculated by dividing:
- A 'hard money loan' is typically characterized by:
- The maximum conforming loan limit set by the FHFA determines:
- Which of the following is an example of 'predatory lending'?
- In California, a lender who forecloses on a purchase money deed of trust on a 1-4 unit residential property occupied by the borrower is generally:
- What is the primary purpose of the Truth in Lending Act (TILA) as it applies to California real estate transactions?
- A loan that requires only interest payments during the loan term with the entire principal due at maturity is called a:
- Under conventional lending standards, what is the maximum LTV ratio for a first mortgage on a single-family home that does NOT require private mortgage insurance (PMI)?
- Which of the following is NOT a qualifying factor used by lenders when underwriting a residential mortgage loan?
- A deed of trust in California has three parties. Which of the following correctly identifies all three?
- The Real Estate Settlement Procedures Act (RESPA) prohibits which of the following in residential mortgage transactions?
- An adjustable-rate mortgage (ARM) has a rate cap structure of 2/2/6. What does the '6' represent?
- Which federal agency insures FHA loans against default?
- A 'due-on-sale' clause in a deed of trust allows the lender to:
- In California, what is the minimum time from recording the Notice of Default (NOD) to a non-judicial trustee's sale?
- Private Mortgage Insurance (PMI) primarily protects:
- Which of the following best describes a 'purchase money mortgage'?
- The secondary mortgage market primarily functions to:
- Under California's anti-deficiency statutes, which type of loan is protected from a deficiency judgment after non-judicial foreclosure?
- A 'blanket mortgage' is most commonly used in which situation?
- The Equal Credit Opportunity Act (ECOA) prohibits lenders from discriminating in lending based on all of the following EXCEPT:
- A homeowner has a first trust deed balance of $300,000 and a second trust deed of $50,000. The property is foreclosed and sells for $320,000. How much does the second trust deed holder receive?
- What is a reverse mortgage and who typically uses it?
- Discount points paid on a mortgage loan are best described as:
- Which of the following is a key benefit of VA financing compared to conventional loans?
- Under the federal Homeowners Protection Act, when must lenders automatically cancel PMI on a residential mortgage?
- Under TRID rules, which document must a lender provide to a borrower within 3 business days of receiving a completed loan application?
- A 'hard money loan' in California is typically characterized by which of the following?
- Which of the following best describes the role of a mortgage broker in California?
- What does the term 'amortization' mean in the context of a mortgage loan?
- What is the primary purpose of the Truth in Lending Act (TILA) as it applies to California residential mortgage loans?
- A borrower obtains a $400,000 loan at 6% annual interest. What is the first month's interest-only payment?
- Which type of mortgage loan has a fixed interest rate for an initial period, then adjusts periodically based on a market index?
- Under California law, what is the maximum prepayment penalty period allowed on a conventional first mortgage secured by owner-occupied residential property of 1-4 units?
- What term describes the process by which a lender reduces the risk of an ARM by capping how much the interest rate can change at each adjustment period and over the life of the loan?
- A property appraises at $500,000 and the buyer makes a 10% down payment. What is the loan-to-value (LTV) ratio?
- Private Mortgage Insurance (PMI) is typically required by conventional lenders when the LTV exceeds:
- What is a 'due-on-sale' clause in a mortgage?
- Which federal law prohibits lenders from discriminating against borrowers based on race, color, religion, national origin, sex, familial status, or disability when making mortgage loans?
- The Real Estate Settlement Procedures Act (RESPA) prohibits:
- A reverse mortgage allows a homeowner to:
- What is 'negative amortization' in a mortgage loan?
- Under California's Holden Act, lenders are prohibited from:
- A deed of trust in California involves three parties. Who are they?
- California is primarily a 'lien theory' or 'title theory' state for mortgages?
- What is a 'loan discount point'?
- Which loan program is specifically designed to help veterans purchase homes with no down payment requirement?
- What is the debt-to-income (DTI) ratio, and why is it important to mortgage lenders?
- In California, the non-judicial foreclosure process under a deed of trust is initiated by recording a:
- California's anti-deficiency statutes generally protect borrowers in which foreclosure scenario?
- Which document provides a borrower with a standardized breakdown of estimated closing costs within 3 business days of a loan application?
- A 'balloon payment' mortgage is one in which:
- The conforming loan limit determines which loans can be:
- A mortgage broker differs from a mortgage banker in that a mortgage broker:
- What is 'equity' in real estate?
- What is the primary difference between a mortgage and a deed of trust?
- What is the loan-to-value (LTV) ratio if a buyer purchases a $400,000 home with a $60,000 down payment?
- What is private mortgage insurance (PMI) and when is it typically required?
- What is an adjustable-rate mortgage (ARM)?
- What is 'amortization' in mortgage lending?
- The Truth in Lending Act (TILA) requires lenders to disclose:
- What is the difference between APR and interest rate?
- What is a 'conforming loan'?
- What is a 'hard money loan'?
- What is 'seller financing' (owner carry-back)?
- What is the purpose of the Real Estate Settlement Procedures Act (RESPA)?
- A 'due-on-sale clause' in a mortgage means:
- What is the 'secondary mortgage market'?
- What type of loan is guaranteed by the Department of Veterans Affairs?
- What is a 'bridge loan'?
- What is the debt-to-income (DTI) ratio and how is it used?
- What is a 'reverse mortgage' and who is it designed for?
- What is 'negative amortization'?
- Which government-sponsored enterprise (GSE) specializes in purchasing and securitizing FHA and VA loans?
- What is a 'purchase money mortgage'?
- In California, a non-judicial foreclosure (trustee's sale) on a deed of trust requires how many days of published notice before the sale?
- What is the difference between a first mortgage and a second mortgage?
- What is 'mortgage fraud'?
- What does 'PITI' stand for in mortgage terminology?
- What is an FHA loan?
- Under California's anti-deficiency laws, which type of loan typically prevents a lender from suing a borrower for a deficiency after foreclosure?
- What is a 'lock-in rate' (rate lock) in mortgage financing?
- What is the role of an 'underwriter' in the mortgage process?
- What does it mean when a buyer is 'pre-approved' for a mortgage?
- What is a 'home equity line of credit' (HELOC)?
- What is 'redlining' and why is it illegal?
- In a deed of trust, non-judicial foreclosure, who conducts the trustee's sale?
- What is a 'USDA Rural Development loan' and who qualifies?
- What is 'mortgage insurance premium' (MIP) and when is it required?
- What is the purpose of the Good Faith Estimate (now Loan Estimate) under RESPA?
- A VA loan guaranty means:
- Which loan type is best suited for a borrower who expects to sell within 5 years?
- What is 'amortization' in real estate finance?
- A 'due-on-sale' clause in a mortgage:
- What is the maximum seller concession allowed on a conventional loan with less than 10% down?
- A purchase-money mortgage is:
- Under Regulation Z (Truth in Lending Act), the right of rescission allows a borrower to cancel:
- What does LTV stand for and why does it matter to lenders?
- A hard money loan is typically:
- What is the conforming loan limit's primary purpose?
- Private Mortgage Insurance (PMI) is typically required when:
- A negative amortization loan means:
- A 'bridge loan' is used for:
- A deed of trust in California differs from a mortgage primarily because:
- A wraparound mortgage (all-inclusive deed of trust in California):
- What does it mean when a mortgage has a 'prepayment penalty'?
- The Truth in Lending Act (TILA) requires lenders to disclose the:
Real Estate Math
133 questions- A home sells for $450,000. The commission rate is 6%. How much is the total commission?
- A listing agent and buyer's agent split a 6% commission 50/50 on a $380,000 sale. How much does each agent's broker receive?
- A property has a net operating income (NOI) of $36,000 per year. If the cap rate is 6%, what is the property's value?
- A buyer puts 20% down on a $500,000 home. What is the loan amount?
- A rectangular lot is 150 feet wide and 200 feet deep. What is its area in acres? (1 acre = 43,560 sq ft)
- A home was purchased for $320,000 and sold for $410,000. What was the percentage of appreciation?
- An agent earns 60% of the commission her broker receives. The total commission on a $520,000 sale at 5% is split 50/50 between listing and buyer's broker. How much does the agent earn?
- A property's annual NOI is $48,000 and it sold at an 8% cap rate. What was the sale price?
- A seller wants to net $280,000 after paying a 6% commission. What must the property sell for?
- A lot measures 1.5 acres. How many square feet is that?
- A property generates $4,200/month in rent. Using a GRM of 160, what is the estimated value?
- Annual property taxes are $6,000. The property sells on April 1 (taxes paid in arrears). How much does the seller owe the buyer at closing?
- A $350,000 home appreciates 4% per year. What is it worth after 2 years?
- A commercial building has a NOI of $72,000. If you want a 9% return, what should you pay?
- A house sold for $625,000. The listing agent and buyer's agent each receive 2.5% commission. How much does each agent's side receive?
- A buyer purchases a home for $485,000 and makes a 20% down payment. What is the loan amount?
- A property sells for $620,000. The listing office earns a 3% commission and the buyer's agent's office earns 2.5%. What is the total commission paid?
- A property has a NOI (Net Operating Income) of $54,000. If the capitalization rate is 6%, what is the estimated property value?
- A property is assessed at $340,000. The tax rate is $12 per $1,000 of assessed value. What are the annual property taxes?
- A borrower takes out a $300,000 mortgage at 6% annual interest. What is the first month's interest payment?
- A seller wants to net $450,000 after paying a 5% commission. What must the property sell for (rounded to the nearest dollar)?
- A rectangular lot measures 150 feet by 200 feet. What is the lot size in acres? (1 acre = 43,560 sq ft)
- A buyer pays 3 discount points on a $420,000 loan. How much does the buyer pay in discount points?
- An investor buys a rental property for $800,000. Annual gross rent is $72,000 and operating expenses are $24,000. What is the capitalization rate?
- A property was purchased for $380,000 and sold 3 years later for $437,000. What was the total percentage gain?
- A broker charges a total 6% commission on a $550,000 sale, split evenly between listing and buyer's sides (3% each). The listing agent receives 60% of the listing side. How much does the listing agent personally receive?
- Annual property taxes of $5,400 are to be prorated at a July 1 closing. The tax year runs January 1 to December 31 and taxes are paid in arrears. How much does the seller owe the buyer as a proration credit?
- A building has a gross annual income of $120,000 and a vacancy/collection loss of 5%. Net operating expenses are $40,000. What is the NOI?
- An apartment building has 6 units each renting for $1,800/month. The gross rent multiplier (GRM) for comparable buildings is 110. What is the estimated value of the building using the monthly GRM method?
- A buyer's loan-to-value ratio (LTV) is 80% on a $600,000 purchase. What is the down payment amount?
- A house is purchased in California for $750,000. Under Prop 13, the base property tax rate is 1%. What is the maximum annual base property tax?
- A property generates annual gross rent of $96,000. If comparable properties sell at a GRM of 12 (annual), what is the estimated property value?
- A borrower pays $1,610/month in principal and interest on a 30-year fixed mortgage at 6.5%. If the original loan amount was $254,000, how much total interest is paid over the life of the loan?
- A property sells for $415,000. The buyer puts 10% down and the lender charges a 1% loan origination fee. What is the loan origination fee?
- A house sells for $580,000. Property tax (Prop 13 base rate of 1%) plus $800 in special assessments. What is the first year's total property tax bill?
- A property management company charges 8% of collected rents. The monthly rent roll is $28,500 and vacancy is 10%. What is the monthly management fee?
- Under California's Proposition 13, the assessed value of a property may increase by a maximum of how much per year (absent a change in ownership)?
- A seller nets $392,000 after paying a 6% commission and $8,000 in closing costs. What was the sale price of the property?
- A commercial property has an annual NOI of $105,600 and comparable properties are selling at a 7% cap rate. What is the property's value using the income approach?
- A property is depreciated over 27.5 years (residential). The building value (excluding land) is $385,000. What is the annual depreciation deduction for tax purposes?
- A buyer purchases a home for $750,000 and makes a 20% down payment. What is the loan amount?
- A listing agent earns a 6% commission on a sale of $875,000. The commission is split 50/50 with the buyer's agent brokerage. How much does the listing agent's brokerage receive?
- A property is assessed at 80% of its $500,000 market value. The tax rate is $12 per $1,000 of assessed value. What is the annual property tax?
- An investor buys a rental property for $480,000 and collects $3,200 per month in gross rent. What is the Gross Rent Multiplier (GRM)?
- A seller wants to net exactly $400,000 after paying a 5% commission. What minimum sale price must be achieved?
- A home was purchased for $320,000 and sold 3 years later for $389,600. What was the total percentage appreciation over the 3 years?
- A rectangular lot measures 150 feet wide by 220 feet deep. How many square feet does it contain?
- A borrower's monthly gross income is $8,500. The lender uses a 43% maximum DTI. The borrower has $850 in existing monthly debt payments. What is the maximum allowable monthly mortgage payment?
- A property sold for $680,000. The California county documentary transfer tax is $0.55 per $500 of the sale price. What is the transfer tax owed?
- An income property has an NOI of $84,000. Comparable properties are selling at a 7% cap rate. What is the estimated value?
- A buyer takes out a $400,000 mortgage at 6% annual interest. What is the simple interest amount due for the first month?
- A home sold for $550,000. The buyer paid $110,000 as a down payment and financed the rest. What was the loan-to-value ratio (LTV)?
- A salesperson earns 40% of commissions collected by her broker. The broker earns a 5% commission on a $925,000 sale. How much does the salesperson receive?
- A 10-acre parcel is priced at $32,000 per acre. How much would a buyer pay for exactly 2.5 acres?
- A property is valued at $560,000. Property taxes are 1.25% of value annually and are paid in two equal installments. What is each installment amount?
- A 6% commission on an $820,000 sale is split with the listing broker receiving 60% and the selling broker receiving 40%. How much does the selling broker receive?
- A buyer's agent earns 2.5% commission on a $660,000 purchase. The agent retains 70% and pays 30% to the brokerage. How much does the agent personally receive?
- A home purchased for $480,000 appreciates at 4% compounded annually. What is its value after 2 years?
- A property has a building-to-land value ratio of 75:25 and a total value of $900,000. What is the depreciable basis (building value) for tax purposes?
- Escrow closes on March 15. Annual property taxes of $6,000 were prepaid by the seller for the full calendar year. Using a 360-day year (30-day months), how much property tax credit does the buyer owe the seller at closing?
- A rectangular commercial lot is 200 feet wide by 400 feet deep. How many acres does it contain? (1 acre = 43,560 sq ft)
- A lender charges 2 discount points and a 1% origination fee on a $350,000 loan. What is the total amount the borrower pays in points and origination fees at closing?
- A property has a $250,000 loan at 7.2% annual interest. The monthly payment is $1,700. How much of the FIRST monthly payment goes to principal?
- An investor purchases a property for $525,000 with a 25% down payment and finances the remainder. What is the loan amount and the LTV ratio?
- A 5,000 sq ft commercial space rents for $2.50 per square foot per month. The landlord charges a 6% property management fee on gross rents. What is the monthly management fee?
- A home sells for $625,000. The listing agent's brokerage earns a 3% commission and the buyer's agent's brokerage earns 2.5%. What is the total commission paid?
- A property has an annual gross income of $120,000 and operating expenses of $48,000. Using a capitalization rate of 6%, what is the property's estimated value?
- A buyer obtains a $400,000 loan at 6% annual interest. What is the monthly interest charge for the first month (interest-only calculation)?
- A salesperson sells a home for $540,000. The total commission is 6%, split evenly between the listing and selling brokers. The listing salesperson receives 60% of their broker's side. How much does the listing salesperson earn?
- A property was purchased for $380,000 and later sold for $475,000. What was the percentage appreciation?
- A rectangular lot measures 150 feet wide by 200 feet deep. What is the lot's area in acres? (1 acre = 43,560 sq ft)
- A borrower takes out a $350,000 mortgage at 7% annual interest for 30 years. The monthly P&I payment factor per $1,000 borrowed at 7% for 30 years is $6.653. What is the monthly payment?
- An investor purchases a fourplex for $800,000. The property generates $6,000/month in gross rents. What is the Gross Rent Multiplier (GRM)?
- A property is assessed at 60% of its market value of $500,000. The tax rate is $1.20 per $100 of assessed value. What are the annual property taxes?
- A home listed at $550,000 receives an offer at 96% of list price. How much is the offer?
- A seller nets $412,000 after paying a 5% commission. What was the selling price?
- A duplex generates $3,200/month per unit. Annual vacancy loss is estimated at 5%. What is the Effective Gross Income (EGI) for the year?
- A loan has a balance of $285,000. Monthly interest charged is $1,662.50. What is the annual interest rate?
- A buyer makes a $75,000 down payment on a $375,000 home. What is the loan-to-value (LTV) ratio?
- A home is depreciated for income tax purposes using straight-line depreciation over 27.5 years. The purchase price was $550,000, with $50,000 allocated to land. What is the annual depreciation deduction?
- A property sells for $620,000. Transfer taxes are charged at $1.10 per $1,000 of sales price. What is the total transfer tax?
- An investor buys a property for $450,000, makes $30,000 in improvements, and sells it for $560,000. Ignoring closing costs and commissions, what is the investor's net profit?
- A seller agrees to pay 3.5 discount points on a buyer's $320,000 loan to buy down the interest rate. How much will the seller pay in points?
- A property's NOI is $54,000 per year. A comparable property recently sold at a 7.5% cap rate. Using the income approach, what is this property's estimated value?
- A rectangular commercial building is 80 feet wide and 120 feet long. At a lease rate of $2.50 per square foot per month, what is the monthly rent?
- A borrower's gross monthly income is $8,500. The lender requires a housing expense ratio of no more than 28%. What is the maximum allowable monthly housing payment?
- A home is purchased for $480,000 with a 20% down payment. The buyer pays 1% of the loan amount as an origination fee. How much is the origination fee?
- A property has an assessed value of $420,000. California's Proposition 13 limits the property tax rate to 1% of assessed value. What is the base annual property tax?
- An agent earns a flat fee of $8,000 for a sale. The brokerage takes 30% and the agent keeps 70%. How much does the agent retain?
- A property's effective gross income is $108,000 per year. Operating expenses are $42,000. At a 7% cap rate, what is the estimated value?
- A property sells for $450,000. The commission rate is 6%. What is the total commission?
- A salesperson receives 55% of the commission earned by their broker. If the total commission is $18,000, how much does the salesperson receive?
- A property is appraised at $320,000. The buyer makes a 20% down payment. What is the loan amount?
- A buyer pays $285,000 for a property appraised at $250,000. What is the LTV ratio if the buyer takes out a loan for $228,000?
- An apartment building has a gross annual income of $120,000, vacancy and collection loss of 5%, and operating expenses of $42,000. What is the Net Operating Income (NOI)?
- A building has an NOI of $80,000 and is purchased for $1,000,000. What is the cap rate?
- A property has an NOI of $45,000 and similar properties in the area have a cap rate of 7.5%. What is the estimated value?
- A buyer takes out a $300,000 loan at 6% annual interest (interest only). What is the first month's interest payment?
- A house was purchased for $200,000 and sold 3 years later for $250,000. What is the percentage increase in value?
- A rectangular lot measures 150 feet wide by 200 feet deep. What is the area in square feet?
- How many acres is a parcel measuring 660 feet by 330 feet? (1 acre = 43,560 sq ft)
- A seller nets $180,000 after paying a 6% commission. What was the original sale price? (Round to nearest dollar)
- A property's assessed value is $180,000 and the tax rate is $1.25 per $100 of assessed value. What is the annual property tax?
- A borrower makes 360 monthly payments of $1,200. The original loan was $180,000. How much total interest was paid?
- An investor purchases a fourplex for $800,000. Each unit rents for $1,500/month. What is the monthly GRM?
- A buyer's gross monthly income is $7,500. Lender's maximum housing-expense ratio is 28%. What is the maximum monthly PITI payment?
- A lot is 1.5 acres. How many square feet is it? (1 acre = 43,560 sq ft)
- A property is purchased for $375,000 with a 5% down payment. What is the loan amount?
- An agent earns a 2.5% commission on a $560,000 sale. What is their commission?
- A seller accepts an offer of $425,000, agrees to pay the buyer's closing costs of $8,500, and pays a 6% commission. How much does the seller net?
- Property taxes of $3,600 are paid for the full year. The property sells with a closing date of April 1 (day 91 of 365). How much does the buyer owe the seller in prorated taxes? (Use 365-day year)
- A building has a replacement cost of $500,000 and is 30 years old with an estimated 50-year useful life. Using straight-line depreciation, what is the accrued depreciation?
- The monthly rent on a property is $2,400. The gross rent multiplier (annual) for comparable properties is 14. What is the estimated property value?
- A property is purchased for $550,000 with a 20% down payment. The loan origination fee is 1 point. How much is the origination fee?
- A buyer's monthly gross income is $6,000. Their monthly debts include a $400 car payment and a $100 student loan payment. The proposed PITI is $1,500. What is the buyer's total debt-to-income (back-end) ratio?
- A commercial property generates $15,000/month in gross rent. Vacancy is 8%, and operating expenses are $70,000/year. What is the annual NOI?
- A salesperson lists a home for $550,000 and it sells for 97% of list price. The commission rate is 5%, of which the salesperson receives 60%. How much does the salesperson earn?
- A property sells for $450,000. The commission rate is 5.5%. What is the total commission?
- A buyer puts 20% down on a $525,000 home. What is the loan amount?
- A rental property has a monthly gross income of $4,200 and a vacancy rate of 5%. What is the effective gross income per year?
- A property's NOI is $36,000 and the cap rate is 6%. What is the estimated value?
- A salesperson earns 60% of the commission. The total commission on a $380,000 sale at 6% is split 50/50 between listing and selling offices. What does the salesperson earn?
- A rectangular lot measures 150 feet by 200 feet. How many acres is it? (1 acre = 43,560 sq ft)
- A property was purchased for $320,000 and sold 3 years later for $389,000. What is the percentage of appreciation?
- A loan of $300,000 at 7% annual interest. What is the first month's interest payment?
- A property has annual expenses of $18,000 and an NOI of $42,000. What is the gross income if the vacancy rate is 5%?
- A property is assessed at 80% of its market value of $400,000. The tax rate is $12 per $1,000 of assessed value. What is the annual property tax?
- An agent lists a property at $550,000 and it sells for 97% of list price. The total commission is 5%. How much does the listing broker receive if the commission is split 50/50?
- A commercial building has 20,000 sq ft of rentable space. It is 90% occupied at $25/sq ft/year. Annual expenses are $180,000. What is the NOI?
- If a property sells for $612,000 and the broker charges 6% commission split equally between listing and selling broker, and the selling agent receives 55% of the selling side, how much does the selling agent earn?
- A buyer purchases a property for $475,000 with a 10% down payment. The lender charges 2 discount points. How much are the discount points in dollars?
- A property has a GRM of 12 and monthly rent of $3,500. What is the estimated value?
- A 30-year amortized loan of $400,000 at 6.5% has a monthly payment of $2,528. What is the total interest paid over the life of the loan?
Property Ownership
131 questions- In California, which form of co-ownership includes the right of survivorship?
- Tenancy in common differs from joint tenancy in that:
- Community property in California means:
- A 'fee simple' estate is best described as:
- What is a life estate?
- What are the four unities required for joint tenancy? (TTIP)
- Which of the following correctly describes an easement in gross?
- What is 'adverse possession'?
- A 'deed restriction' (CC&R) is best described as:
- Real property includes which of the following?
- Which of the following is an example of personal property (chattel)?
- The PETE mnemonic in real estate stands for the government's four powers over real estate:
- What is 'escheat'?
- A fixture is determined by which of the following tests?
- What is a 'lis pendens'?
- Community property in California includes:
- Which form of co-ownership includes a right of survivorship and is only available to married couples or registered domestic partners in California?
- The four unities required to create a joint tenancy are:
- A life estate owner (life tenant) may NOT:
- An easement appurtenant differs from an easement in gross in that it:
- In California, adverse possession requires all of the following EXCEPT:
- A deed restriction that limits how property can be used is called a:
- A property owner discovers a neighbor's fence extends 2 feet onto their lot. This is called an:
- Which of the following is an example of personal property (chattel) becoming real property through attachment?
- A deed that conveys title with the grantor's guarantee of defending the title against all claims is a:
- California's Proposition 13 limits annual property tax increases to a maximum of:
- A homeowner's association (HOA) assessment lien for unpaid dues has priority over:
- Which of the following best describes a 'fee simple absolute' estate?
- A grant deed in California contains which implied warranty?
- Which of the following is a government limitation on private property ownership?
- A recorded document that provides constructive notice to the world of a claim or interest in real property means:
- What is the purpose of a title search?
- Escheat refers to the process by which:
- A 'partition action' in California is used when:
- Under California law, when spouses hold title as joint tenants and one spouse dies, the surviving spouse:
- Which form of co-ownership in California requires all owners to hold equal, undivided interests and automatically passes a deceased owner's share to the surviving owners?
- In California, when a married couple acquires real property during marriage with community funds and takes title as 'community property with right of survivorship,' what is the primary advantage over joint tenancy?
- A property owner grants a neighbor the right to cross their land to access a public road. This arrangement is best described as:
- Under California law, how can a joint tenancy be severed by one co-owner without the consent of the other joint tenants?
- A property owner has the right to use, exclude others, and dispose of their property. These rights collectively are referred to as:
- Which type of deed provides the GREATEST protection to the grantee by warranting title against all claims, both during and before the grantor's ownership?
- A California homeowner has lived in their primary residence for 2 of the past 5 years and is selling it. What is the maximum federal capital gains exclusion available to a single filer?
- A utility company has the right to run power lines across a private owner's land. This is an example of:
- Under California's Proposition 13, when is real property generally reassessed to market value?
- Which of the following BEST describes a life estate in California?
- Adverse possession in California requires continuous, open, notorious, hostile, and exclusive use for a statutory period of:
- A deed must include which of the following to be valid in California?
- Which doctrine holds that a landowner adjacent to a watercourse has the right to use water from that watercourse based on their land's proximity?
- A fixture is personal property that has become real property. Which factor is LEAST important in determining whether an item is a fixture in California?
- What is the legal term for the right of the government to take private property for public use upon payment of just compensation?
- In California, personal property of a deceased person who dies intestate (without a will) and has no known heirs ultimately passes to:
- A property owner builds a fence 2 feet over the boundary onto a neighbor's land. This is called:
- Which type of lease creates a freehold estate rather than a leasehold estate?
- Under California community property law, which of the following is SEPARATE property of one spouse?
- A developer places a deed restriction on a subdivision prohibiting any lot from being used for commercial purposes. This type of restriction is called:
- The term 'littoral rights' refers to the rights of owners whose land borders:
- In California, what happens to a joint tenancy when one joint tenant conveys their interest to a third party without the other joint tenants' knowledge?
- A fee simple defeasible estate is BEST described as:
- Which of the following is NOT a method by which title to real property can be acquired in California?
- Under the doctrine of accretion, a landowner gains additional land when:
- Which of the following best describes 'fee simple absolute' ownership?
- Under California law, when two unmarried persons take title to property as joint tenants, what right does each party have upon the other's death?
- A deed that warrants only against defects arising during the grantor's period of ownership is called a:
- Which type of tenancy is created when a landlord allows a tenant to remain in possession after a lease expires without a new agreement?
- An easement appurtenant involves which of the following?
- Under California community property law, which of the following is considered separate property?
- A 'lis pendens' recorded against a property provides notice that:
- Which of the following is an example of an involuntary lien?
- In California, what is the maximum homestead exemption available to a qualified homeowner as of January 1, 2021?
- When a property is held in trust, who holds legal title?
- Which of the following is NOT one of the four unities required to create a joint tenancy?
- A buyer purchases a property subject to an existing mortgage. What is the buyer's liability if the lender forecloses?
- Under California's Proposition 13 (1978), property tax is reassessed to market value upon:
- What type of property ownership gives a condominium owner fee simple title to the interior space of their unit?
- Which doctrine allows a person to gain title to property through open, notorious, hostile, and continuous use for the statutory period in California?
- Which of the following describes 'constructive notice' in real property?
- An encroachment is best described as:
- A life estate grants ownership rights:
- Which of the following is a general lien rather than a specific lien?
- The bundle of rights associated with real property ownership includes all EXCEPT:
- In California, a deed must be signed by whom to be valid?
- What distinguishes real property from personal property?
- Which California statute governs the recording of real property documents?
- A property owner grants an oil company the right to extract minerals from beneath their land. What type of right is this?
- Which form of co-ownership is most commonly used between married couples in California who want the property to pass to the survivor without probate?
- What is 'tenancy in common'?
- What distinguishes joint tenancy from tenancy in common?
- In California, when a married couple holds title as 'community property with right of survivorship,' what happens when one spouse dies?
- What are the 'four unities' required to create a joint tenancy?
- What is a 'fee simple absolute' estate?
- What is a 'life estate'?
- What is an 'easement appurtenant'?
- What is an 'easement in gross'?
- How is an easement by prescription acquired in California?
- What is 'adverse possession' and what are California's requirements?
- Which form of ownership provides the MOST protection from creditors among married couples in California?
- In a condominium, what does each owner actually own?
- What is a 'planned unit development' (PUD)?
- What is a 'cooperative' (co-op) form of ownership?
- What is a 'license' in property law?
- What is a 'deed restriction' (private restriction/CC&R)?
- The term 'bundle of rights' refers to:
- What is 'tenancy by the entirety'?
- What is an 'encroachment'?
- What does 'fee simple defeasible' mean?
- What is 'riparian rights'?
- A homeowner's deed of trust is an example of which type of property interest?
- What is a 'leasehold estate'?
- What is meant by the term 'color of title'?
- What is a 'partition action' and when is it used?
- Which of the following is personal property (personalty) rather than real property?
- In California, what is the legal presumption when a married couple takes title to property without specifying how title is held?
- What is a 'real property security' under California law?
- What is 'constructive notice' of an interest in real property?
- What is a 'mechanic's lien'?
- What are 'CC&Rs' in the context of a homeowners association (HOA)?
- What is 'littoral rights'?
- What is the significance of 'recording' a deed in California?
- What is a 'holdover tenancy' (tenancy at sufferance)?
- What does 'intestate succession' mean?
- What is a 'right of first refusal' in real estate?
- What is a 'transfer on death deed' (TODD) in California?
- Which form of co-ownership includes the right of survivorship?
- A fee simple absolute estate is best described as:
- A life estate gives the life tenant the right to:
- Which type of lease gives the tenant the most security of tenure?
- A deed restriction (CC&R) that limits property use to single-family residential is an example of:
- Adverse possession in California requires how many years of continuous, open, hostile use?
- A 'tenancy in severalty' means the property is owned by:
- A leasehold estate gives the tenant:
- In California, a married person can hold title separately as their sole and separate property if:
Property Valuation
123 questions- Which appraisal approach is most commonly used for single-family homes?
- The income approach to value is most appropriate for:
- What is 'depreciation' in real estate appraisal?
- Functional obsolescence refers to:
- What is 'highest and best use' in real estate?
- What is 'comparables' (comps) in real estate?
- What is the cost approach to value?
- External obsolescence (economic obsolescence) is caused by:
- What is a capitalization rate (cap rate)?
- Gross Rent Multiplier (GRM) is calculated as:
- What is 'market value'?
- The principle of substitution states that:
- What is 'assemblage' in real estate?
- What does 'plottage' refer to?
- The principle of progression in real estate means:
- The income approach to value is most commonly used for:
- In the sales comparison approach, the appraiser makes adjustments to the comparable sales to account for differences from the subject property. If a comparable has a feature the subject lacks, the adjustment is:
- The cost approach to value is best suited for:
- Which type of depreciation is caused by factors external to the property, such as a nearby industrial plant?
- Net Operating Income (NOI) is calculated as:
- An appraiser determines a property has a capitalization rate of 8% and a NOI of $80,000. What is the estimated value?
- The principle of progression states that:
- Functional obsolescence differs from physical deterioration in that it results from:
- A Comparative Market Analysis (CMA) prepared by a real estate agent is:
- When a property is over-improved relative to its neighborhood, the excess value added by the improvement is called:
- Under the principle of conformity, property values are maximized when:
- The effective age of a building refers to:
- Plottage value refers to the increased value resulting from:
- In a 'buyer's market,' real estate prices tend to:
- An appraiser uses the 'before and after' method when appraising property affected by:
- The principle of anticipation states that value is:
- Which factor would most likely increase the capitalization rate an investor requires for an income property?
- The 'highest and best use' of a property is defined as the use that is:
- The sales comparison approach to property valuation is MOST appropriate when appraising:
- In the income approach to valuation, Net Operating Income (NOI) is calculated as:
- The cost approach to appraisal is MOST useful for which type of property?
- What is 'functional obsolescence' as used in real estate appraisal?
- The principle of 'substitution' in real estate valuation holds that:
- A property generates an NOI of $60,000. Comparable properties sell at a 5% cap rate. What is the indicated value using the income approach?
- An appraiser conducting 'paired sales analysis' is attempting to:
- External obsolescence (economic obsolescence) differs from other depreciation types because it is:
- The Gross Rent Multiplier (GRM) is calculated by:
- According to the principle of 'contribution,' an improvement adds value to a property:
- What is the standard appraisal form used for a single-family residential property in a federally related mortgage transaction?
- The 'highest and best use' of a property is defined as the use that meets all four of which criteria?
- When adjusting a comparable sale in the sales comparison approach, an appraiser ADDS value to the comparable when the comparable is:
- The 'effective age' of a building used in appraisal is best defined as:
- In the cost approach, 'reproduction cost' differs from 'replacement cost' because:
- The principle of 'regression' in real estate states that:
- A Competitive Market Analysis (CMA) prepared by a real estate licensee differs from a formal appraisal in that:
- The Uniform Standards of Professional Appraisal Practice (USPAP) are developed and maintained by:
- When reconciling the three approaches to value in an appraisal, the appraiser should:
- Plottage value (assemblage) occurs when:
- In California, a real estate appraiser's license is issued by:
- Gross Potential Income (GPI) in real estate income analysis represents:
- A property has a GPI of $120,000, 5% vacancy and credit loss, and operating expenses of $45,000. What is the NOI?
- When using the age-life method to estimate accrued depreciation, the depreciation percentage is calculated by dividing effective age by:
- The principle of 'anticipation' in real estate valuation states that:
- Which appraisal approach is most appropriate for valuing a special-purpose property such as a church or school with few comparable sales?
- An appraiser values a property using the sales comparison approach and finds that a comparable property has a swimming pool worth $15,000 but the subject property does not. What adjustment does the appraiser make?
- What does the term 'market value' mean in real estate appraisal?
- An appraiser is using the cost approach to value a 10-year-old building. The replacement cost new is $400,000 and the building has experienced 25% total depreciation. The land is valued at $120,000. What is the indicated value?
- Which type of depreciation results from factors outside the property, such as proximity to a freeway or an industrial plant?
- The principle of substitution in appraisal holds that:
- A neighborhood is zoned residential but has deteriorating properties, declining rents, and increasing vacancies. What stage of the neighborhood life cycle does this describe?
- What is the purpose of a Comparative Market Analysis (CMA) as used by real estate agents?
- An appraiser determines that the highest and best use of a parcel is for commercial development, not its current residential use. How does this affect the appraisal?
- Under USPAP (Uniform Standards of Professional Appraisal Practice), a licensed appraiser must retain the workfile for a completed appraisal for a minimum of:
- A 2,000 sq ft home in a neighborhood has a value of $400 per square foot based on comparable sales. Using the sales comparison approach, what is the indicated value?
- The economic principle of 'plottage' refers to:
- A property's assessed value is $360,000 for tax purposes. A comparable home on the same street recently sold for $600,000. What assessment ratio is being applied?
- Which of the following is an example of functional obsolescence in a residential property?
- The income approach to value is most appropriate for which type of property?
- When using the sales comparison approach, which of the following properties would typically be selected as a comparable sale?
- The concept of 'regression' in real estate appraisal means:
- A seller has a home with market value of $750,000. The seller wants to net $700,000 after paying a 6% commission. Can the seller achieve this by listing at $750,000?
- Which federal law requires federally regulated lenders to use licensed or certified appraisers for most real estate transactions above a certain threshold?
- A 'before and after' appraisal method is most commonly used in which situation?
- Which of the following factors does NOT directly affect a property's market value?
- An appraiser is reconciling three value indicators from the three approaches: Cost approach = $485,000; Sales comparison approach = $475,000; Income approach = $460,000. The subject is an owner-occupied single-family home. Which approach should receive the most weight?
- What does 'depreciation' mean in the context of real estate appraisal?
- A property generates annual rental income of $96,000. An appraiser uses a gross rent multiplier (GRM) of 13 to estimate value. What is the indicated value?
- Under California law, who is authorized to prepare a certified appraisal for federally related transactions?
- What are the three standard approaches to property valuation?
- The sales comparison approach to value is MOST reliable for:
- In the income approach, what is the 'capitalization rate' (cap rate)?
- What is the 'cost approach' best suited for?
- What is 'economic obsolescence' in property appraisal?
- In real estate appraisal, what does 'highest and best use' mean?
- What is the difference between 'value in use' and 'market value'?
- What is a 'comparable sale' (comp) in real estate appraisal?
- What is 'functional obsolescence' in an appraisal?
- What is 'Gross Rent Multiplier' (GRM) and how is it calculated?
- What does 'market value' assume about the buyer and seller?
- In the cost approach, what is 'reproduction cost' vs. 'replacement cost'?
- What is 'assessed value' and how does it relate to market value in California?
- What is the purpose of the 'Uniform Standards of Professional Appraisal Practice' (USPAP)?
- A property generates a net operating income of $50,000 and is valued using a 5% cap rate. What is the estimated value?
- What is the 'principle of conformity' in real estate appraisal?
- What is 'regression' as an appraisal principle?
- What is 'progression' as an appraisal principle?
- What is 'plottage' (assemblage) in real estate valuation?
- What is the 'principle of substitution' and why is it important in appraisal?
- What is a Broker Price Opinion (BPO) and how does it differ from an appraisal?
- What is 'depreciation' in the cost approach to appraisal?
- What is 'physical deterioration' in property appraisal?
- In a sales comparison appraisal, if a comparable sale has a garage and the subject property does not, the appraiser makes an adjustment by:
- A property has an annual gross income of $60,000 and a GRM of 10 (annual). What is the estimated value?
- What is 'effective age' in property appraisal?
- What is 'correlation' (reconciliation) in the appraisal process?
- What is the 'principle of contribution' in real estate?
- What is a 'land residual' in real estate investment analysis?
- When does the income approach provide the MOST reliable value indication?
- What is 'over-improvement' and how does it affect property value?
- What does a capitalization rate (cap rate) measure?
- In the cost approach, functional obsolescence refers to:
- Which of the following is an example of external (economic) obsolescence?
- Gross Rent Multiplier (GRM) is calculated by:
- The principle of conformity states that:
- The principle of progression means:
- Which appraisal approach is MOST appropriate for a special-use property like a school or hospital?
- Plottage (assemblage) refers to:
- Highest and best use is defined as the use that is:
Fair Housing
113 questions- Under the federal Fair Housing Act, which of the following is a protected class?
- California's Fair Employment and Housing Act (FEHA) adds which protected class NOT in the federal Fair Housing Act?
- 'Steering' in real estate refers to:
- 'Blockbusting' is best defined as:
- Which act prohibits discrimination in residential mortgage lending?
- What is 'redlining'?
- Under the Fair Housing Act, which of the following is NOT a protected class?
- A landlord may legally ask which of the following questions of a prospective tenant?
- A disabled tenant requests that their landlord allow them to install grab bars in the bathroom. The landlord must:
- The Americans with Disabilities Act (ADA) primarily applies to:
- Which federal law prohibits discrimination in the sale, rental, and financing of housing based on race, color, national origin, religion, sex, familial status, and disability?
- Under the Fair Housing Act, 'familial status' protects which of the following?
- A landlord tells a prospective tenant that the apartment is already rented when it is actually still available, because the prospective tenant is Hispanic. This is an example of:
- Which practice involves inducing homeowners to sell by suggesting that people of a protected class are moving into the neighborhood?
- Steering in real estate refers to:
- Under California's Fair Employment and Housing Act (FEHA), which additional protected class is covered that is NOT in the federal Fair Housing Act?
- A property owner who refuses to rent to a person because they use a wheelchair is most likely violating which provision of the Fair Housing Act?
- Under the Fair Housing Act, a landlord must allow a tenant with a disability to make reasonable modifications to the unit if:
- Which of the following is NOT a protected class under the federal Fair Housing Act?
- Redlining in real estate refers to:
- A seller tells their listing agent 'I don't want to sell to any families with children.' The agent should:
- Which of the following exemptions allows a private individual to sell or rent their property without complying with the Fair Housing Act?
- The Unruh Civil Rights Act in California applies to:
- Under the Fair Housing Act, which advertising practice is prohibited?
- Which California agency primarily enforces the state's fair housing laws?
- Sexual harassment by a landlord or property manager against a tenant is considered a violation of the Fair Housing Act under which protected class?
- Which of the following is an example of a reasonable accommodation under the Fair Housing Act for a person with a disability?
- Under California's Rumford Fair Housing Act, discrimination in housing is prohibited based on all of the following EXCEPT:
- A real estate agent who shows minority buyers only homes in predominantly minority neighborhoods, while showing white buyers homes throughout the city, is engaged in:
- A housing provider who refuses to rent to an applicant after learning the applicant has HIV is:
- Which of the following housing types is generally NOT exempt from the Fair Housing Act?
- Under the Fair Housing Act, 'disparate impact' means:
- A 'senior housing' community can legally exclude families with children if:
- Which of the following is NOT an exemption from the federal Fair Housing Act?
- The Civil Rights Act of 1866 prohibits discrimination in real estate based on:
- The federal Fair Housing Act of 1968 prohibits discrimination based on which protected classes?
- California's Fair Employment and Housing Act (FEHA) includes all federal protected classes PLUS which additional classes?
- Steering is a fair housing violation that involves:
- Under the Fair Housing Act, which of the following is an example of 'familial status' discrimination?
- A landlord refuses to make reasonable accommodations for a tenant with a disability. Under the Fair Housing Act, this is:
- Under the federal Fair Housing Act, which property type is specifically exempt from the prohibition against familial status discrimination?
- Blockbusting (panic selling) is the illegal practice of:
- A person who believes they have been the victim of housing discrimination has how long to file a complaint with HUD under the federal Fair Housing Act?
- Which landmark U.S. Supreme Court case established the principle that racially restrictive covenants are unenforceable?
- An agent who uses a different communication style or provides less information to potential buyers based on their national origin is engaging in:
- Under the Fair Housing Act, 'reasonable modification' refers to:
- A real estate agent shows a white buyer homes in predominantly white neighborhoods and does not show the same buyer available homes in integrated neighborhoods. This is an example of:
- Under California's Unruh Civil Rights Act, which classes are protected in business establishments, including housing?
- A property manager refuses to accept a prospective tenant because the tenant plans to use a Section 8 housing voucher. In California, this is:
- Which of the following advertising phrases would most likely violate the Fair Housing Act?
- Under the Fair Housing Act, which of the following is NOT considered a disability?
- A landlord allows a cat-free policy but refuses to allow a tenant with a phobia disorder to keep an emotional support animal. This is likely:
- The Civil Rights Act of 1866 prohibits discrimination in property transactions based on:
- Disparate impact theory in fair housing law means that:
- Which federal agency is primarily responsible for enforcing the Fair Housing Act?
- A lender denies a mortgage application from a qualified applicant in a neighborhood that is predominantly Hispanic. This may be evidence of:
- Under California law, the penalty for a first violation of the Unruh Civil Rights Act includes:
- Which of the following is a lawful reason for a landlord to deny a rental application?
- A real estate broker participates in a 'gentlemen's agreement' with other brokers not to show properties in certain neighborhoods to minority buyers. This practice is:
- The federal Fair Housing Act of 1968 was enacted as part of which broader legislation?
- Under the California Fair Employment and Housing Act (FEHA), which of the following is a protected class NOT found in the federal Fair Housing Act?
- A landlord refuses to rent to a family with children citing a 'no-children policy.' This is an example of discrimination based on:
- Steering occurs when a real estate agent:
- Blockbusting is an illegal practice in which a real estate agent:
- Under the Fair Housing Act, a landlord may deny a request for a reasonable accommodation for a person with a disability if:
- Redlining refers to the illegal practice of:
- A person who believes they have been the victim of housing discrimination may file a complaint with:
- Under the Fair Housing Act, which of the following advertisements would be considered illegal?
- A landlord has a policy of refusing to rent to anyone with a prior eviction, and a disproportionate number of those rejected are members of a protected class. This could be challenged as:
- Which of the following properties is generally EXEMPT from the federal Fair Housing Act?
- Which California law requires sellers and agents to provide specific disclosures about property condition to buyers in residential transactions?
- Under the federal Fair Housing Act, 'handicap' (disability) includes all of the following EXCEPT:
- California's Unruh Civil Rights Act applies to:
- A property manager shows only one-bedroom units to a single woman and only two-bedroom units to a married couple without asking about their preferences. This is an example of:
- What is a 'reasonable modification' under the Fair Housing Act?
- Under California FEHA, which of the following best describes the 'source of income' protection?
- Which of the following practices related to home loans is prohibited under the Equal Credit Opportunity Act (ECOA)?
- A senior housing community qualifies for the 'Housing for Older Persons Act' (HOPA) exemption from familial status protections if:
- Which of the following is an example of 'disparate treatment' under fair housing law?
- A California real estate licensee's duty to uphold fair housing laws is governed by which DRE regulation?
- Under the Fair Housing Act, maximum civil penalties for a first violation in a HUD administrative proceeding can be up to approximately:
- Which of the following statements about California's Rumford Fair Housing Act is correct?
- The federal Fair Housing Act (Title VIII of the Civil Rights Act of 1968) prohibits discrimination based on which protected classes?
- California's Fair Employment and Housing Act (FEHA) provides ADDITIONAL protections beyond federal law. Which of the following is a California-specific protected class in housing?
- What is 'steering' in the context of fair housing?
- What is 'blockbusting' (panic selling)?
- Under the Fair Housing Act, what reasonable accommodation must landlords provide for tenants with disabilities?
- Which of the following advertisements DOES NOT violate fair housing law?
- What is 'disparate impact' in fair housing law?
- The Civil Rights Act of 1866 prohibits discrimination based on:
- A landlord refuses to rent to a tenant because the tenant uses a wheelchair. What protected class is being violated?
- What is the 'familial status' protected class?
- An exemption to the Fair Housing Act allows discrimination in which situation?
- What does the ADA (Americans with Disabilities Act) require of commercial real estate?
- What is the maximum civil penalty for a FIRST-TIME fair housing violation under the federal Fair Housing Act (as of recent law)?
- What is the 'Mrs. Murphy exemption' to the Fair Housing Act?
- In California, what is 'source of income' discrimination?
- A seller tells their agent they will only sell to buyers of their own religion. The agent should:
- What is 'disparate treatment' in fair housing?
- Under the Fair Housing Act, are 'housing for older persons' (senior housing) communities exempt from the familial status prohibition?
- What complaint procedures are available to a person who believes they have experienced housing discrimination?
- A landlord has a 'no pets' policy. A tenant with a disability requests permission to keep an emotional support animal. What is the landlord's obligation?
- Which of the following actions by a real estate agent could constitute a fair housing violation?
- A property manager uses an application scoring system that results in a much lower approval rate for applicants of a certain national origin. Even if unintentional, this may violate fair housing law under the theory of:
- Under the Fair Housing Act, which of the following is permitted?
- Which federal law prohibits discrimination in mortgage lending based on race, color, religion, national origin, sex, marital status, age, or receipt of public assistance?
- Steering in real estate means:
- Blockbusting is the illegal practice of:
- Under the Fair Housing Act, which of the following is a protected class?
- Which of the following is an exemption under the federal Fair Housing Act?
- Under California's Fair Employment and Housing Act (FEHA), which group is protected in addition to the federal seven?
- A landlord may legally reject a rental applicant based on:
- An agent who tells a prospective buyer 'you'd be more comfortable in a different neighborhood' based on the buyer's race is engaging in:
DRE & Licensing
94 questions- What is the primary purpose of the California Department of Real Estate (DRE)?
- How long is a California real estate salesperson license valid?
- To obtain a California salesperson license, an applicant must be at least:
- A California real estate salesperson must work under:
- How many hours of pre-license education are required for a CA salesperson license?
- A licensed salesperson who changes brokers must:
- Which of the following activities requires a California real estate license?
- How many hours of continuing education are required to renew a California real estate salesperson license?
- What is the 'Real Estate Transfer Disclosure Statement' (TDS)?
- The Real Estate Commissioner in California is:
- Which state agency regulates real estate licensees in California?
- To obtain a California real estate salesperson license, an applicant must complete how many hours of pre-license education?
- A California real estate salesperson license is initially valid for how long?
- Under California law, a real estate salesperson MUST:
- To qualify for a California real estate broker license, an applicant must have:
- Real estate trust funds must be deposited into the trust account within how many business days of receipt?
- The California Real Estate Commissioner is:
- Which of the following does NOT require a real estate license in California?
- What is 'commingling' of funds in real estate?
- The California Real Estate Law is found in which code?
- When a California real estate salesperson terminates their employment with a broker, what must happen?
- A real estate licensee who engages in 'conversion' of trust funds has:
- The DRE's Recovery Account provides funds to:
- A California real estate licensee who violates the Real Estate Law may be subject to all of the following EXCEPT:
- Which of the following is true about a California real estate salesperson's commission?
- Under California law, when must a real estate licensee disclose their license status to the other party in a transaction?
- Which of the following requires a separate endorsement in addition to a California real estate broker license?
- A California real estate broker who supervises salespersons is responsible for:
- A broker who is a REALTOR® is also a member of:
- Under California law, the maximum amount a broker may keep of their own funds in a trust account (to cover bank service charges) is:
- What must a DRE licensee do when they receive a dispute over earnest money between a buyer and seller?
- Which of the following best describes 'net listing' agreements in California?
- A California real estate broker's license must be displayed:
- Which California state agency is responsible for licensing and regulating real estate brokers and salespersons?
- A real estate salesperson's license in California expires every:
- A licensed California real estate salesperson may receive compensation ONLY from:
- Under the California Real Estate Law, how much experience as a licensed salesperson is required before an applicant can apply for a broker's license?
- When a real estate broker receives a deposit check from a buyer, California law requires the broker to place the funds in a trust account or deliver them to the escrow within:
- A California real estate broker who operates under a fictitious business name must:
- Under California law, a real estate licensee is required to disclose their license status in which of the following situations?
- If a real estate salesperson's employing broker dies or has their license suspended, the salesperson may continue to perform licensed activities for how long?
- The California Real Estate Commissioner has the authority to do all of the following EXCEPT:
- A California real estate licensee who engages in misrepresentation, fraud, or dishonest dealing may be subject to discipline under:
- In California, the Real Estate Recovery Account is funded by:
- What is the maximum amount a single claimant can recover from the California Real Estate Recovery Account for acts committed by one licensee?
- A real estate licensee in California is found to have commingled client funds with their personal bank account. This violates:
- Under the Agency Disclosure requirements of California Civil Code Section 2079, a listing agent must provide the agency disclosure form to a seller:
- Under California law, a real estate broker may be held liable for the acts of their salespersons under the doctrine of:
- A California real estate salesperson passes the state exam but does not affiliate with a broker. Their license status would be:
- Which of the following violations would subject a California real estate licensee to the 'moral turpitude' grounds for discipline under the Business and Professions Code?
- A California broker who employs salespersons is required to have a written independent contractor agreement with each salesperson that includes:
- What is the purpose of the California Mortgage Loan Originator (MLO) license endorsement?
- In California, how long does a real estate license applicant who fails the licensing exam have to re-apply for reexamination?
- A California real estate broker advertises properties on social media. Under DRE regulations, the advertisement MUST include:
- Under California law, a 'net listing' arrangement where the broker keeps everything above a specified net price to the seller is:
- Under California's 'do not call' requirements, a real estate licensee who receives a 'do not call' request from a consumer must honor that request for a minimum of:
- What is the California Department of Real Estate (DRE) and what is its primary mission?
- What are the minimum educational requirements to apply for a California real estate salesperson license?
- A California real estate salesperson license is valid for how long and must be renewed how often?
- What is required to obtain a California real estate BROKER license?
- What is a 'pocket card' in California real estate?
- Under what circumstances may a California real estate licensee's license be suspended or revoked?
- What is the California Real Estate Recovery Fund and who may make a claim against it?
- A person receives compensation for negotiating a real estate transaction without a license in California. This is:
- What is a 'real estate salesperson' vs. a 'real estate broker' under California law?
- What does 'acting in the capacity of a real estate licensee' include under California law?
- What is a 'corporate real estate broker license' in California?
- What continuing education must be completed for a first renewal of a California real estate salesperson license?
- Under California law, a real estate licensee who receives a real estate-related felony conviction will:
- What is a 'DRE Bulletin'?
- What is a 'desist and refrain order' issued by the DRE?
- What is the role of the 'Real Estate Commissioner' in California?
- Under California law, a broker must notify the DRE within how many days when a salesperson's association with their office is terminated?
- What is a 'broker-associate' in California?
- Under California law, a licensed real estate salesperson may receive compensation ONLY from:
- What must a California real estate licensee include in all advertising?
- A California broker is responsible for the actions of their salesperson:
- What is the DRE's 'eLicensing' system?
- What is the California Real Estate Law found in?
- What is the minimum age requirement to obtain a California real estate salesperson license?
- Under California law, 'commingling' of funds by a real estate licensee means:
- What is 'self-dealing' and why is it prohibited for real estate licensees?
- What is 'negligent misrepresentation' in the context of real estate?
- How long must a California real estate broker keep transaction records?
- A California real estate salesperson license must be renewed every:
- A real estate salesperson who receives a complaint may have their license:
- To obtain a California broker's license, a salesperson must have:
- Under California law, a licensee convicted of a felony involving moral turpitude:
- The California Department of Real Estate is headed by:
- A real estate licensee who pays or receives a referral fee to an unlicensed person is:
- A broker acting as a property manager must maintain trust account records for how long?
- A California real estate licensee who changes their home address must notify the DRE within:
- A real estate salesperson can only receive compensation from:
- Which of the following is grounds for denial of a California real estate license application?
Escrow & Title
89 questions- What does 'escrow' mean in a California real estate transaction?
- A 'cloud on title' refers to:
- What is the purpose of title insurance?
- Who selects the escrow company in California?
- What is a 'grant deed'?
- What is a 'quitclaim deed'?
- What is a warranty deed?
- What is 'proration' in a real estate closing?
- A 'mechanic's lien' can be filed by:
- Which type of lien takes priority regardless of when it was recorded?
- In California, who typically acts as the escrow holder in a real estate transaction?
- Which of the following best describes the function of escrow?
- Title insurance that protects the lender against losses due to title defects is called:
- In California, the escrow officer receives instructions from:
- Which of the following liens has the highest priority when multiple liens exist on a property?
- A preliminary title report (prelim) is ordered in escrow primarily to:
- What is the purpose of a grant deed in California?
- Which type of deed provides the MOST protection to the buyer?
- A quitclaim deed transfers:
- In California, who typically pays for the owner's title insurance policy?
- The doctrine of 'constructive notice' in real estate means:
- When does title officially transfer to the buyer in a California real estate transaction?
- A mechanic's lien can be filed by:
- An 'abstract of title' is best described as:
- In California, a deed of trust involves three parties. Who are they?
- After a loan is paid off in California, the lender should provide a:
- Prorations in escrow refer to:
- RESPA (Real Estate Settlement Procedures Act) requires lenders to provide buyers with a Closing Disclosure at least how many business days before closing?
- An extended (ALTA) title insurance policy differs from a standard (CLTA) policy primarily by:
- Which of the following is considered an involuntary lien?
- What is the 'chain of title'?
- In California, for how long must a mechanic's lienholder file a lawsuit to enforce the lien after recording it?
- Which document gives the escrow holder authority to proceed with a transaction?
- Which of the following best describes 'title insurance'?
- In California, escrow is considered 'closed' when:
- A preliminary title report is issued by a title company PRIMARILY to:
- Which type of title insurance policy protects the lender's interest in a mortgaged property?
- In a California real estate transaction, who typically pays for the owner's title insurance policy?
- Which of the following liens would have PRIORITY over a previously recorded first mortgage in California?
- Under California law, a mechanics' lien must be filed within what time period after completion of a construction project by a general contractor?
- A CLTA (California Land Title Association) title policy differs from an ALTA (American Land Title Association) extended coverage policy primarily in that CLTA does NOT cover:
- Which of the following is an example of a specific lien?
- In California, an escrow holder is considered a dual agent for both buyer and seller. This means the escrow holder:
- Recording a deed provides:
- A grant deed in California contains which of the following implied warranties?
- What is a 'chain of title'?
- Under California's race-notice recording statute, a subsequent purchaser prevails over a prior unrecorded deed if the subsequent purchaser:
- In California, escrow instructions that are signed by both buyer and seller create:
- A lis pendens recorded against a property notifies the public that:
- What document does a trustee under a deed of trust record to start a non-judicial foreclosure in California?
- Which of the following would NOT be covered by a standard owner's title insurance policy?
- In California, the documentary transfer tax is calculated based on:
- A title company discovers a 'gap' in the chain of title. This means:
- An abstract of title differs from a title insurance policy in that an abstract:
- In California escrow, when a buyer cancels the transaction after all contingencies have been removed, the seller may be entitled to retain:
- Which of the following is an involuntary lien?
- After a non-judicial foreclosure sale in California, the former homeowner has a right of redemption for:
- In California, a homestead declaration provides protection from forced sale by unsecured creditors up to what maximum amount for a single person?
- What is the primary function of escrow in a California real estate transaction?
- In California, who may act as an escrow holder in a real estate transaction?
- What is title insurance and what does it protect against?
- What is the difference between an 'owner's title insurance policy' and a 'lender's title insurance policy'?
- What is a 'preliminary title report' (prelim)?
- What does it mean when escrow 'closes'?
- What is a 'deed of trust' and how does it differ from a mortgage in terms of the parties involved?
- What is a 'cloud on title'?
- What is a 'quiet title action'?
- What is 'chain of title'?
- What is a 'grant deed' and what implied warranties does it contain?
- Under the California 'race-notice' recording statute, a subsequent buyer is protected if they:
- What is the 'ALTA' and 'CLTA' in title insurance?
- When does legal title to a property pass to the buyer in a California transaction?
- What is an 'abstract of title'?
- What does it mean for title to be 'marketable'?
- What is a 'Closing Disclosure' (CD) and when must it be provided to a buyer?
- What is 'title search' in a real estate transaction?
- What is 'subrogation' in title insurance?
- What is an 'escrow holdback'?
- What is the purpose of a 'FIRPTA withholding' in a real estate closing?
- What is the purpose of a 'title commitment' (commitment for title insurance)?
- What is 'actual notice' of a property interest?
- Which type of title insurance protects the lender?
- A grant deed in California implies which warranties?
- A quitclaim deed conveys:
- In California, escrow is typically handled by:
- What is a preliminary title report?
- Which type of deed offers the most protection to the grantee?
- RESPA prohibits:
- A 'chain of title' refers to:
Land Use & Zoning
88 questions- What is a 'special use permit' (conditional use permit)?
- The police power of the government includes the right to:
- What is 'inverse condemnation'?
- A 'general plan' in California is:
- What is a 'variance' in zoning?
- Eminent domain refers to:
- A 'nonconforming use' is:
- What is an easement appurtenant?
- Which type of zoning allows for a mix of residential and commercial uses within the same district?
- A property owner wants to use their land in a way that is not permitted under current zoning. Which approval would allow a one-time exception without changing the zone?
- Under California law, which document serves as the 'constitution' for a city or county's long-range land use planning?
- A commercial business that was legally established before current zoning regulations were adopted may continue to operate as a:
- Which of the following best describes 'spot zoning'?
- A property owner receives a permit to operate a daycare center in a residential zone. This is an example of a:
- California's Subdivision Map Act requires subdividers of five or more parcels to obtain approval of a:
- Which California agency is primarily responsible for enforcing state housing law and ensuring cities meet their Regional Housing Needs Allocation (RHNA)?
- An 'inclusionary zoning' ordinance typically requires developers to:
- What is the purpose of a 'buffer zone' in zoning?
- Eminent domain allows the government to take private property for public use. What must the government provide to the property owner?
- A regulation that deprives an owner of all economically beneficial use of their property may constitute a:
- A 'setback' requirement in a zoning code specifies:
- Which of the following is an example of 'downzoning'?
- Under the California Environmental Quality Act (CEQA), which document is required for projects that may have a significant environmental impact?
- Which federal law regulates the development of wetlands and requires a permit before discharging fill material?
- An accessory dwelling unit (ADU) on a single-family lot in California:
- A 'floor area ratio' (FAR) of 2.0 on a 10,000 sq ft lot means the total floor area of all buildings may not exceed:
- Which zone would most likely permit a lumberyard, auto repair shop, and light manufacturing?
- A planned unit development (PUD) differs from conventional zoning in that it:
- Which term describes the government's power to regulate private land use for the health, safety, and welfare of the public?
- A property is located in a Coastal Zone. Which California agency has jurisdiction over development permits in that zone?
- A developer dedicates land to the city for a public park as a condition of subdivision approval. This is called a:
- Which statement about CC&Rs (Covenants, Conditions, and Restrictions) is TRUE?
- A city ordinance restricts a parcel to single-family residential use only. This is an example of:
- Which government power allows a city to acquire private property for a public highway, provided just compensation is paid?
- A property owner wants to use their land in a way not permitted by current zoning. They apply for permission to deviate from the zoning requirements. This is called a:
- A gas station existed legally before the surrounding area was rezoned to residential. The gas station is allowed to continue operating as a:
- The California Coastal Commission primarily regulates:
- A local government passes an ordinance requiring all new residential buildings to have a minimum of 1,500 square feet. This is an example of:
- Under California's Subdivision Map Act, a developer who wants to divide land into five or more parcels must obtain:
- When a city council rezones only one small parcel to a more intensive use than surrounding properties, this is known as:
- A general plan in California is BEST described as:
- A property owner's land is taken by the government through eminent domain and the owner believes the offered compensation is inadequate. The owner's legal recourse is:
- Which California law requires developers of subdivisions with 500 or more lots to provide public utilities and improvements before selling lots?
- A deed restriction that limits a property to residential use is an example of:
- A homeowners association (HOA) enforces CC&Rs that prohibit parking commercial vehicles in driveways. A resident parks a work van there. The HOA can:
- A city adopts a plan that clusters residential buildings on a portion of a large parcel, leaving the rest as open space. This technique is called:
- An Environmental Impact Report (EIR) in California is required under:
- Which term describes the government's right to take private property that has been abandoned and for which there are no identifiable heirs?
- A setback requirement in a zoning ordinance refers to:
- A local government's right to regulate land use for the protection of public health, safety, and welfare is derived from:
- Under California's Subdivided Lands Law, the DRE issues a _______ before lots in a new subdivision may be offered for sale.
- A zoning ordinance allows a church in a residential zone only with approval from the zoning board after a public hearing. This is an example of a:
- The purpose of California's Coastal Act and the California Coastal Commission is to:
- Building codes differ from zoning ordinances primarily because building codes:
- The term 'inverse condemnation' refers to a situation where:
- Agricultural zoning in California is primarily designed to:
- A developer proposes a mixed-use project combining retail on the ground floor and residential units above in a zone that only permits single-use development. The developer should apply for:
- What is 'zoning' and which level of government typically enacts it?
- What is a 'variance' in land use law?
- What is a 'conditional use permit' (special use permit)?
- What is a 'nonconforming use'?
- What is the 'general plan' (master plan) in California land use?
- What is 'eminent domain'?
- What is 'spot zoning'?
- The California Environmental Quality Act (CEQA) requires:
- What is a 'setback' requirement in zoning?
- What is a 'buffer zone' in land use planning?
- What is 'density' in land use and zoning?
- What is 'floor area ratio' (FAR)?
- What is a 'subdivision' under California law?
- What is the purpose of California's Subdivided Lands Law (administered by the DRE)?
- What is a 'public report' (white paper) in a California subdivision?
- What is 'police power' as it relates to zoning and land use?
- What is a 'deed covenant' or restrictive covenant in land use?
- In California, what is an 'accessory dwelling unit' (ADU)?
- What is a 'Tentative Map' in the California subdivision process?
- What is a 'planned development permit' (PDP) in California?
- A nonconforming use is:
- A variance allows a property owner to:
- The General Plan in California serves as:
- A conditional use permit (CUP) allows:
- Eminent domain is the power of the government to:
- An easement by prescription is similar to:
- Spot zoning refers to:
- A buffer zone in zoning is used to:
- What is an 'exaction' in land use planning?
- Under the California Environmental Quality Act (CEQA), an Environmental Impact Report (EIR) is required when:
- A deed restriction that discriminates by race is:
Environmental
85 questions- Which federal law requires disclosure of lead-based paint in homes built before 1978?
- What is radon?
- Asbestos becomes a health hazard when it is:
- CERCLA (Superfund) holds which parties responsible for environmental cleanup?
- What is a Natural Hazard Disclosure (NHD) in California?
- What does CERCLA stand for?
- Underground storage tanks (USTs) are a concern in real estate because:
- What is the Alquist-Priolo Earthquake Fault Zone Act in California?
- Mold in a home is most commonly associated with:
- Proposition 65 in California requires:
- Which federal Superfund law holds current and past property owners potentially liable for cleanup of hazardous substances, even if they did not cause the contamination?
- A California seller's agent discovers the property was previously used as a dry-cleaning business. What is the agent's primary obligation?
- Asbestos-containing materials (ACM) in a home are generally considered most dangerous when they are:
- Which of the following best describes a 'Phase I Environmental Site Assessment'?
- Lead-based paint disclosure requirements under federal law apply to residential properties built before:
- Radon is a health hazard in real estate because it is:
- Under California's Proposition 65, sellers must warn buyers about:
- Underground storage tanks (USTs) are a significant environmental concern in real estate primarily because they can:
- A property located near a former gas station shows evidence of petroleum contamination in the soil. A buyer who later discovers this and was not told may sue the seller for:
- Mold in a residential property is primarily a health concern because exposure can cause:
- Which of the following is NOT a federally designated category of hazardous waste under RCRA?
- A buyer purchasing commercial property to avoid CERCLA liability should conduct due diligence to qualify as an 'innocent landowner.' Which step is most critical?
- California requires sellers of residential property to disclose whether the property is located in a Special Flood Hazard Area. This information is found on:
- The Natural Hazard Disclosure (NHD) Statement required in California real estate transactions covers which of the following?
- Formaldehyde is a common indoor air quality concern in homes primarily because it is found in:
- Which of the following is the BEST description of a 'brownfield' site?
- Which agency administers California's hazardous waste cleanup and site remediation programs, including the Cortese List of contaminated sites?
- A homebuyer's inspector finds what appears to be asbestos floor tiles in a 1960s home. The most appropriate advice to the buyer is to:
- Which type of soil condition is most associated with liquefaction risk during an earthquake?
- A property is located within an Alquist-Priolo Earthquake Fault Zone. What does this mean for new construction?
- When a seller knows of a material defect related to an environmental hazard, failing to disclose it to a buyer may result in:
- Which of the following is TRUE about carbon monoxide (CO) detectors in California residential properties?
- What is 'encapsulation' as it relates to asbestos management?
- A real estate licensee who fails to disclose a known environmental hazard on a listing may face liability under which California law?
- The term 'sick building syndrome' refers to:
- Which federal law requires sellers to disclose known lead-based paint hazards in homes built before 1978?
- CERCLA (the Superfund law) is significant to real estate because:
- A California seller's agent discovers that a property is located within a Special Flood Hazard Area. The agent must:
- Radon is a health hazard in real estate because it:
- Under California law, a seller must disclose if a property is located in which of the following natural hazard zones? (Select the BEST answer.)
- Asbestos is most hazardous in real estate when:
- A Phase I Environmental Site Assessment (ESA) is typically conducted to:
- Underground storage tanks (USTs) on a property are a concern because:
- California Proposition 65 (Safe Drinking Water and Toxic Enforcement Act) requires businesses to:
- The presence of mold in a property is material because:
- Which term describes the cleanup of contaminated soil and groundwater at a Superfund site?
- What is the primary concern with formaldehyde in residential real estate?
- A property is located in an area designated as a 'Seismic Hazard Zone' by the California Geological Survey. The seller must:
- Lead-based paint hazards in pre-1978 homes present the greatest risk to:
- Which of the following best describes an 'innocent landowner' defense under CERCLA?
- The California Air Resources Board (CARB) is relevant to real estate because it:
- A buyer's agent notices what appears to be efflorescence (white mineral deposits) on the basement walls of a property. The agent should:
- The 'stigma' associated with a property that was formerly contaminated but has been fully remediated BEST refers to:
- Under California's Transfer Disclosure Statement, which of the following is a seller required to disclose?
- Polychlorinated biphenyls (PCBs) are a concern in older commercial properties primarily because they were used in:
- A property is located near a former dry-cleaning facility. The MOST likely environmental contaminant of concern is:
- The 'stigma discount' concept in appraisal is applied when:
- California requires a Natural Hazard Disclosure Statement (NHD) for which type of transfer?
- The 'innocent landowner' defense requires, among other things, that the buyer conducted 'all appropriate inquiry.' For most commercial transactions, this means performing at minimum a:
- Which of the following best describes 'sick building syndrome'?
- What is the federal Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA/Superfund) and how does it affect real estate?
- What is 'asbestos' and why is it a concern in real estate?
- What is 'radon' and how is it addressed in real estate?
- What is the significance of lead-based paint in residential real estate transactions?
- What are 'underground storage tanks' (USTs) and why are they a concern?
- What is a 'Phase I Environmental Site Assessment'?
- What is 'mold' as an environmental concern in real estate?
- What is California's 'Proposition 65' (Safe Drinking Water and Toxic Enforcement Act) and how does it affect real estate?
- What is a 'natural hazard disclosure' (NHD) and when is it required in California?
- What is 'PCB contamination' and why is it relevant to commercial real estate?
- In California, what must be disclosed in the 'Transfer Disclosure Statement' regarding environmental hazards?
- What is an 'environmental lien' and how can it affect a real estate transaction?
- What is 'electromagnetic fields' (EMF) and why might it be relevant in a real estate disclosure?
- What is the significance of a property being located in a FEMA 'Special Flood Hazard Area' (100-year floodplain)?
- What is a 'brownfield' in real estate development?
- Which federal law requires disclosure of known lead-based paint in homes built before 1978?
- CERCLA (Superfund) holds which parties liable for hazardous waste cleanup costs?
- Asbestos in a building is most dangerous when:
- The Alquist-Priolo Earthquake Fault Zone Act in California requires:
- Radon gas enters buildings primarily through:
- California's Natural Hazard Disclosure (NHD) Statement must disclose if a property is in:
- What is the primary concern with underground storage tanks (USTs) in real estate?
- Mold disclosure is required in California when:
- What is the purpose of Phase I Environmental Site Assessment?
- Lead paint testing on a pre-1978 home purchase must be completed within:
Trust Funds
77 questions- A broker must deposit a buyer's earnest money deposit into a trust account within:
- Commingling in real estate refers to:
- What is 'conversion' in the context of trust funds?
- A broker's trust fund account must be reconciled:
- Can a broker keep their own money in a client trust account?
- If a buyer's offer is rejected and they had deposited earnest money, the broker must:
- Under California law, a real estate broker must deposit trust funds received into a neutral escrow or into the broker's trust fund account no later than:
- A broker's trust fund account must be maintained at:
- Which of the following is considered 'commingling' of trust funds?
- The illegal use of client trust funds for the broker's personal benefit is called:
- A salesperson collects an earnest money deposit from a buyer. What must the salesperson do with these funds?
- A broker may maintain a personal (broker's) funds balance in the trust account of up to how much to cover bank service charges?
- Which of the following records is a broker required to maintain for the trust fund account?
- How often must a broker reconcile the trust fund bank account balance with the total of all client ledger balances?
- A buyer's earnest money deposit is held in the broker's trust account. The sale falls through with no dispute. The broker may release the deposit:
- A broker who holds a disputed earnest money deposit and cannot get agreement from the parties may:
- Which of the following is an example of a trust fund?
- Under California law, a DRE auditor examining a broker's trust fund records has the right to inspect those records:
- A broker who is also a property manager collects rent on behalf of an owner. These rental proceeds are:
- A 'shortage' in a broker's trust account — where the trust liability exceeds the bank balance — is most likely evidence of:
- Interest earned on funds held in a broker's trust account generally belongs to:
- A broker receives an earnest money check made out to the seller. The buyer instructs the broker to hold the check uncashed until offer acceptance. The broker MUST:
- Which of the following is TRUE about salesperson trust fund accounts?
- A broker receives a $5,000 earnest money deposit on a Friday at 5 PM. The three-business-day deposit deadline would be:
- When a real estate transaction closes, how should trust funds (e.g., the buyer's deposit) be handled?
- A broker's trust fund records must be retained for how long after the transaction closes or the funds are disbursed?
- A property manager receives a security deposit from a tenant. Under California Civil Code, residential security deposits may NOT exceed:
- If a broker discovers a shortage in the trust account caused by a bank error, what is the BEST course of action?
- A broker who violates trust fund regulations is subject to which of the following penalties?
- Which of the following is NOT a permissible disbursement from a broker's trust account?
- Which California law specifically governs a real estate broker's obligations with respect to trust funds?
- Under California law, a real estate broker must deposit trust funds received into the trust account no later than:
- A real estate broker's trust account must be maintained at:
- The commingling of trust funds occurs when a broker:
- Conversion of trust funds occurs when a broker:
- A broker may keep a maximum of how much of the broker's own funds in the trust account without it being considered commingling?
- Which of the following is considered a trust fund under California law?
- If a buyer's check for earnest money is made payable to the listing broker, and the buyer instructs the broker to hold the check uncashed until the offer is accepted, the broker should:
- A broker is required to maintain a columnar record (trust fund ledger) for the trust account. The purpose of this record is to:
- A salesperson receives an earnest money check from a buyer. What must the salesperson do with the check?
- A DRE audit of a broker's trust account reveals that the balance of individual client ledgers is less than the total bank balance. This condition is called:
- When escrow is used in a California real estate transaction, trust funds are typically held by:
- A broker who maintains a property management business must:
- The DRE has the authority to audit a broker's trust account records:
- A broker receives a $10,000 earnest money deposit in cash from a buyer. The broker must:
- Under California law, trust fund records must be retained for a minimum of:
- A broker receives a commission payment directly from the seller at closing. This money should be deposited into:
- A buyer and seller have a dispute over who is entitled to an earnest money deposit after a transaction falls through. The broker should:
- Which statement about a broker's trust account is TRUE?
- A broker's trust account shortage (the bank balance is less than the sum of all beneficiary ledger balances) most likely indicates:
- Interest earned on a real estate trust account in California generally:
- A property manager collects security deposits from tenants. Under California law, security deposits:
- A salesperson who works for Broker A receives an earnest money deposit. Without telling Broker A, the salesperson deposits it into the salesperson's own personal account. This is:
- California regulations require that a broker maintain a 'trust fund bank account record' (journal). What does this record show?
- A broker places a client's $50,000 earnest money deposit into a money market account earning interest. The broker does NOT inform the client or credit the interest to the client. This is:
- Which California government agency has primary jurisdiction over the investigation of trust fund violations by real estate licensees?
- What are 'trust funds' in California real estate practice?
- Under California law, when must a broker deposit funds received from clients into the broker's trust account?
- What is 'commingling' of trust funds?
- What is 'conversion' of trust funds?
- A California real estate broker's trust account must be maintained at:
- What is the maximum amount a broker may keep in their trust account from personal funds?
- What records must a California broker maintain for their trust account?
- What is a 'neutral escrow' and when is it used for trust funds?
- When may a broker withdraw funds from their trust account?
- What must a broker do when they receive a buyer's earnest money deposit check with instructions to hold it uncashed pending acceptance?
- A buyer's earnest money is being held by the listing broker. The transaction falls through and there is a dispute about who is entitled to the funds. What should the broker do?
- For how long must a California broker maintain trust fund records?
- What is a 'columnar cash record' (general journal) in trust fund accounting?
- Can a property management broker combine the security deposits for multiple tenants in a single trust account?
- What constitutes 'misappropriation' of trust funds?
- What is 'impound' or 'reserve' accounts in real estate lending?
- A broker receives a check as earnest money. Under California law, the broker must deposit it into the trust account within:
- Which of the following is NOT a permissible trust account?
- If a buyer instructs the broker to hold their uncashed check until offer acceptance, the broker should:
- A broker's trust account cannot be an interest-bearing account unless:
- A broker must maintain a separate trust account ledger for each:
Property Management
77 questions- In California, a landlord must give how much notice to enter a rental property for non-emergency repairs?
- What is a gross lease?
- A percentage lease is most commonly used in:
- In California, a landlord must return a security deposit within how many days of a tenant moving out?
- A net lease requires the tenant to pay:
- What is a 'holdover tenant'?
- Under California law, what is the maximum security deposit a landlord may collect for an unfurnished residential unit?
- A property manager who collects rents, signs leases, and manages maintenance on behalf of an owner must hold which California license?
- How many days does a California landlord have to return a tenant's security deposit after the tenancy ends?
- Which of the following is a legitimate deduction a landlord may make from a tenant's security deposit in California?
- In California, a month-to-month residential tenant who has lived in a property for more than one year must receive how much advance notice to terminate the tenancy?
- What is the primary purpose of a management agreement between a property owner and a property manager?
- Under the California Fair Employment and Housing Act (FEHA), which of the following is NOT a protected class in housing?
- A property manager notices a roof leak causing damage. The owner is traveling and unreachable. What should the property manager do?
- What is a 3-Day Notice to Pay Rent or Quit used for in California?
- Which California statute governs the habitability requirements for residential rental properties?
- A property manager collects $5,000 in rents. Under California law, these funds must be:
- In California, the Costa-Hawkins Rental Housing Act restricts local governments from applying rent control to which type of residential property?
- What is the purpose of a property management trust account reconciliation?
- Under California's AB 1482 (Tenant Protection Act of 2019), which properties are exempt from statewide rent cap provisions?
- A property manager who is a licensed salesperson must perform property management duties under the supervision of:
- What does the term 'gross lease' mean in a commercial property management context?
- California's Unruh Civil Rights Act prohibits discrimination in business establishments based on which of the following?
- What is a 'percentage lease' commonly used in which type of property?
- A landlord wishes to enter a tenant's unit to make repairs. Under California law, how much advance notice is generally required?
- Which of the following best describes a 'net-net-net' (triple net) lease?
- What is the California law requirement for smoke detectors in residential rental properties?
- An owner hires a property manager and grants them 'general authority.' This means the manager may:
- Which of the following actions by a landlord constitutes illegal 'self-help' eviction in California?
- A property management company charges 8% of gross monthly rents as its fee. The property generates $12,500/month in rent. What is the monthly management fee?
- What is the 'implied warranty of habitability' in California residential rentals?
- A property manager must give a tenant written notice before entering a rental unit for non-emergency repairs. What is the minimum advance notice required under California law?
- Under California law, what is the maximum security deposit a landlord may collect from an unfurnished residential tenant?
- A property manager collects rent on behalf of an owner. Under California law, within how many days after the close of the month must the manager provide the owner with an itemized accounting of funds received and disbursed?
- A property manager executes a lease on behalf of an owner without written authorization from the owner. Which of the following best describes this situation?
- Which federal law prohibits housing discrimination based on race, color, national origin, religion, sex, familial status, and disability in the rental of residential property?
- A property manager wants to raise rents for existing tenants in a unit subject to local rent control. What must the manager do first?
- Under California law, a landlord who wrongfully withholds a tenant's security deposit beyond the statutory deadline must pay the tenant how much in addition to the actual amount wrongfully withheld?
- A commercial property manager is negotiating a lease for a retail tenant. Which lease type requires the tenant to pay base rent plus a share of property taxes, insurance, and operating expenses?
- A property manager discovers that a rental unit has a habitability defect (broken heating) and the owner refuses to make the repair. What remedy does California law give the tenant?
- Which document establishes the ongoing relationship between a property owner and a property management company and should be signed before any management services begin?
- A property manager serves a 3-day notice to pay rent or quit on a tenant. The tenant fails to pay and does not vacate. What is the property manager's next step?
- Under the Americans with Disabilities Act (ADA) and California law, which properties are generally required to provide accessible parking, ramps, and common-area accommodations?
- A property manager collects $10,000 in rents in July. Operating expenses paid that month total $7,500. What amount should the manager remit to the owner (before management fee)?
- A residential tenant in California gives 30 days' written notice to vacate. The tenant has lived in the unit for 3 years. Is this notice sufficient?
- An owner wants to convert a residential rental building to condominiums and sell the units. Under California law, what must the owner provide to existing tenants?
- Which of the following is NOT a protected class under the California Fair Employment and Housing Act (FEHA) as it applies to housing?
- A property manager's primary fiduciary duty runs to:
- A property manager notices visible mold in a rental unit and the landlord instructs the manager to paint over it without disclosing the issue to a prospective tenant. What should the property manager do?
- Under California's AB 1482 (Tenant Protection Act of 2019), which type of residential property is generally EXEMPT from just-cause eviction requirements?
- A property manager receives a written request from a disabled tenant asking for permission to install grab bars in the bathroom at the tenant's expense. Under the Fair Housing Act, how should the manager respond?
- A gross lease for a commercial unit requires the tenant to pay $3,000 per month. The landlord pays all operating expenses, which total $900 per month. What is the landlord's effective net income from this lease per month?
- A California landlord wishes to terminate a month-to-month tenancy for a tenant who has lived in the unit for 6 months. What is the minimum notice the landlord must provide?
- Which of the following best describes the role of a resident manager at an apartment complex?
- A property manager is responsible for a 50-unit apartment building. California law requires the manager to keep copies of all property management records for a minimum of:
- A tenant's lease expires and they remain in possession without signing a new lease, continuing to pay rent, which the landlord accepts. What type of tenancy has been created?
- What type of agency relationship exists between a property manager and a property owner?
- In California, a property manager who collects rents and security deposits on behalf of an owner must:
- What is a 'management agreement' in property management?
- Under California law, how long does a landlord have to return a tenant's security deposit after the tenancy ends?
- What is California's maximum security deposit limit for an unfurnished residential unit?
- What is California's 'warranty of habitability' for rental properties?
- What is a 'triple net lease' (NNN) in commercial property management?
- What is the purpose of a 'move-in/move-out inspection' in property management?
- In California, what notice is required before a landlord enters a tenant's occupied rental unit?
- What is 'deferred maintenance' and why is it a concern in property management?
- What is 'vacancy rate' and how does it affect property value?
- A property manager's primary duty is to:
- Under California law, a landlord must give how much notice to enter a tenant's unit for non-emergency repairs?
- A gross lease means:
- A triple net (NNN) lease requires the tenant to pay:
- California's security deposit law for unfurnished residential units limits the maximum deposit to:
- After a tenant vacates, a California landlord must return the security deposit within:
- Under California's just cause eviction requirements (AB 1482), which of the following is NOT a valid just cause for eviction?
- Constructive eviction occurs when:
- An unlawful detainer (eviction) action in California begins after the landlord serves:
- A management agreement must include:
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