BSRV4601 FUNDAMENTALS OF REAL
ESTATE 2 APPENDIX FINAL TEST 2026
QUESTIONS WITH CORRECT ANSWERS
GRADED A+
◍ 81. A broker's primary objective as a property manager is to oversee the
maintenance of rental property, fill vacancies with suitable tenants and:.
Answer: d) collect rent and account to the landlord
◍ 34. _____ is a process in which an independent agent manages the closing
of a real estate transaction through the exchange of documents and money
between two parties..
Answer: b) Escrow
◍ 47. A nuisance which affects an entire segment of the population, such as a
neighborhood, is known as a(n):.
Answer: b) public nuisance
◍ Mortgagor.
Answer: borrower
◍ 100. The California Energy Commission designed and implemented the
_____ program to include a uniform rating scheme for the systematic
delivery of home energy ratings to homeowners..
Answer: c) California Home Energy Rating System (HERS)
◍ 71. When the due-on clause is triggered, the lender may recast or call the
loan, also known as:.
Answer: d) acceleration
◍ severance.
Answer: turning the item into personal property
,◍ 12. _____ are funds belonging to others which a broker and their agents
handle when acting in a transaction..
Answer: c) Trust funds
◍ 7. Agency in real estate related transactions includes relationships between
brokers and their:.
Answer: c) Both a and b
◍ Easement in Gross.
Answer: the right to use land for a specific, limited purpose unrelated to any
adjacent parcel
◍ General Lien.
Answer: A lien that attaches to all property owned by an individual. Real
and personal.
◍ 44. A(n) _____ belongs to and benefits an adjacent property and is said to
run with the land as an interest the adjacent property holds in the burdened
real estate..
Answer: b) appurtenant easement
◍ Joint Tenancy.
Answer: Time (all given at same time)Title (all hold title at same
time)Interest (is equal for all owners)Possession (all equal right to
possession)
◍ 90. The agreed-to time period following the due date during which rent may
be paid without incurring a late charge is referred to as the:.
Answer: b) grace period
◍ 58. _____ refers to a form of indemnity insurance issued by a title insurance
company which holds harmless the named insureds against monetary loss
caused by an encumbrance not listed in Schedule B of the policy and not
known by the insured when the policy was issued..
Answer: a) Title insurance
◍ 33. The _____ of a property is the highest price on the date of valuation a
, willing seller and buyer would agree to..
Answer: d) fair market value
◍ fee simple determinable.
Answer: if the condition of ownership isn't met, the title of the property
transfers automatically to the holder of the possibility of reverter.
◍ 56. Lis pendens means Notice of Litigation or:.
Answer: d) Notice of Pending Action
◍ 65. Default mortgage insurance coverage provided by private insurers for
conventional loans with loan-to-value ratios higher than 80 % is called:.
Answer: c) private mortgage insurance (PMI)
◍ PITI.
Answer: Principal, Interest, Taxes, Insurance
◍ Easement.
Answer: the right to use land for a specific and limited purpose
◍ Littoral Rights.
Answer: rights of a landowner adjacent to a lakeRemember "L" -
Littoral/Lake
◍ encumbrance.
Answer: liens (financial), easements (physical), encroachments (physical)
◍ 77. A trust deed holder may foreclose on a property by:.
Answer: c) Either a. or b. (a) nonjudicial foreclosure under the power-of-sale
provision in the trust deed. (b) judicial foreclosure under mortgage law.
◍ 52. To be considered capable at the time of signing a deed, a grantor needs
to be of sound mind, possess their civil rights and _____:.
Answer: d) be an adult at least 18 years of age
◍ 35. _____ refers to the right of the government to take private property for
public use..
Answer: c) Eminent domain
ESTATE 2 APPENDIX FINAL TEST 2026
QUESTIONS WITH CORRECT ANSWERS
GRADED A+
◍ 81. A broker's primary objective as a property manager is to oversee the
maintenance of rental property, fill vacancies with suitable tenants and:.
Answer: d) collect rent and account to the landlord
◍ 34. _____ is a process in which an independent agent manages the closing
of a real estate transaction through the exchange of documents and money
between two parties..
Answer: b) Escrow
◍ 47. A nuisance which affects an entire segment of the population, such as a
neighborhood, is known as a(n):.
Answer: b) public nuisance
◍ Mortgagor.
Answer: borrower
◍ 100. The California Energy Commission designed and implemented the
_____ program to include a uniform rating scheme for the systematic
delivery of home energy ratings to homeowners..
Answer: c) California Home Energy Rating System (HERS)
◍ 71. When the due-on clause is triggered, the lender may recast or call the
loan, also known as:.
Answer: d) acceleration
◍ severance.
Answer: turning the item into personal property
,◍ 12. _____ are funds belonging to others which a broker and their agents
handle when acting in a transaction..
Answer: c) Trust funds
◍ 7. Agency in real estate related transactions includes relationships between
brokers and their:.
Answer: c) Both a and b
◍ Easement in Gross.
Answer: the right to use land for a specific, limited purpose unrelated to any
adjacent parcel
◍ General Lien.
Answer: A lien that attaches to all property owned by an individual. Real
and personal.
◍ 44. A(n) _____ belongs to and benefits an adjacent property and is said to
run with the land as an interest the adjacent property holds in the burdened
real estate..
Answer: b) appurtenant easement
◍ Joint Tenancy.
Answer: Time (all given at same time)Title (all hold title at same
time)Interest (is equal for all owners)Possession (all equal right to
possession)
◍ 90. The agreed-to time period following the due date during which rent may
be paid without incurring a late charge is referred to as the:.
Answer: b) grace period
◍ 58. _____ refers to a form of indemnity insurance issued by a title insurance
company which holds harmless the named insureds against monetary loss
caused by an encumbrance not listed in Schedule B of the policy and not
known by the insured when the policy was issued..
Answer: a) Title insurance
◍ 33. The _____ of a property is the highest price on the date of valuation a
, willing seller and buyer would agree to..
Answer: d) fair market value
◍ fee simple determinable.
Answer: if the condition of ownership isn't met, the title of the property
transfers automatically to the holder of the possibility of reverter.
◍ 56. Lis pendens means Notice of Litigation or:.
Answer: d) Notice of Pending Action
◍ 65. Default mortgage insurance coverage provided by private insurers for
conventional loans with loan-to-value ratios higher than 80 % is called:.
Answer: c) private mortgage insurance (PMI)
◍ PITI.
Answer: Principal, Interest, Taxes, Insurance
◍ Easement.
Answer: the right to use land for a specific and limited purpose
◍ Littoral Rights.
Answer: rights of a landowner adjacent to a lakeRemember "L" -
Littoral/Lake
◍ encumbrance.
Answer: liens (financial), easements (physical), encroachments (physical)
◍ 77. A trust deed holder may foreclose on a property by:.
Answer: c) Either a. or b. (a) nonjudicial foreclosure under the power-of-sale
provision in the trust deed. (b) judicial foreclosure under mortgage law.
◍ 52. To be considered capable at the time of signing a deed, a grantor needs
to be of sound mind, possess their civil rights and _____:.
Answer: d) be an adult at least 18 years of age
◍ 35. _____ refers to the right of the government to take private property for
public use..
Answer: c) Eminent domain
