CALIFORNIA REAL ESTATE EXAM ACTUAL EXAM 200
QUESTIONS AND CORRECT DETAILED ANSWERS (WITH
MULTIPLE CHOICE QUESTIONS AND CORRECT
ANSWERS) |AGRADE
In reference to Property Taxes, "basis" or "cost" is - ANSWER: Purchase price of prop
plus cost of improvements.
How is a condominium unit owned? - ANSWER: Separate interest
How are common interests in a condo owned? - ANSWER: Equally in undivided
interest
Subdivided Land Laws refer to - ANSWER: Subdivisions of 5+ parcels on 160 acres,
regulated marketing & financing, and requires disclosures in public report.
How long is a disclosure in public report for Subdivided Land Laws good for? -
ANSWER: 5 Years
When does a tax year run? - ANSWER: July 1-June 30
Legally combining smaller, adjacent parcels of land to form a larger parcel. -
ANSWER: Plottage or assemblage
Separating large parcels into smaller lots - ANSWER: Subdividing or separating
Amount or size of land being increased by natural forces such as deposits by wind or
water. - ANSWER: Accretion
Gradual uncovering of land previously covered by water such as when a stream
changes course. - ANSWER: Reliction
The Statute of Limitations in the state of California allows how long to take action? -
ANSWER: 4 years
The process by which the court may seize real or personal property as security for a
satisfaction of monetary judgement. - ANSWER: Attachment
When is a 20-day preliminary notice of a mechanics lien need to be issued? -
ANSWER: 20-days after the claimant (contractor) has first furnished labor, services,
equipment, or materials.
What is the purpose of issuing a preliminary notice of a mechanics lien to a claimant?
- ANSWER: To inform concerned parties that the property may be subject to liens
arising out of contract.
, What is the brokers relationship to the customer? - ANSWER: The broker is the agent
to the customer (customer employs the broker).
What is the agents (salesperson) relationship to the broker? - ANSWER: The
salesperson is the agent to the broker (the broker gives the salesperson authority to
act on his/her behalf).
A Home Equity Line of Credit is - ANSWER: An Open Ended Mortgage
An Open Ended Mortgage is - ANSWER: A type of note that permits the borrower to
obtain more money at a future date under the same deed of trust.
Zoning is an example of - ANSWER: Police power
Local jurisdictions have the authority to divide land into districts and impose land use
regulations to promote health, safety, and welfare of the public--this is known as -
ANSWER: Zoning
When can restrictions placed on a deed be removed? - ANSWER: Never
What is the only restriction placed on a deed that is considered illegal? - ANSWER:
Race restrictions
Is an option contract bilateral or unilateral? - ANSWER: Unilateral
What does an option contract NOT do? - ANSWER: Create a legal interest in a
property
If a buyer has defaulted on on an original land contract which had been recorded,
this would result in a defective title, requiring legal action to clear the title. This is
called - ANSWER: a Quiet Title Action.
A promise is also known as a - ANSWER: Covenant
A court action is mandatory to evict a delinquent tenant. This process is called -
ANSWER: Unlawful Detainer
A verbal contract is considered - ANSWER: Valid
California Statute of Frauds require a real estate agreement to be - ANSWER: In
writing
What kind of listing agreement offers a listing broker to receive a commission
regardless of who is the "procuring" cause? Is also considered the greatest
protection for the agent. - ANSWER: Exclusive right to sell
QUESTIONS AND CORRECT DETAILED ANSWERS (WITH
MULTIPLE CHOICE QUESTIONS AND CORRECT
ANSWERS) |AGRADE
In reference to Property Taxes, "basis" or "cost" is - ANSWER: Purchase price of prop
plus cost of improvements.
How is a condominium unit owned? - ANSWER: Separate interest
How are common interests in a condo owned? - ANSWER: Equally in undivided
interest
Subdivided Land Laws refer to - ANSWER: Subdivisions of 5+ parcels on 160 acres,
regulated marketing & financing, and requires disclosures in public report.
How long is a disclosure in public report for Subdivided Land Laws good for? -
ANSWER: 5 Years
When does a tax year run? - ANSWER: July 1-June 30
Legally combining smaller, adjacent parcels of land to form a larger parcel. -
ANSWER: Plottage or assemblage
Separating large parcels into smaller lots - ANSWER: Subdividing or separating
Amount or size of land being increased by natural forces such as deposits by wind or
water. - ANSWER: Accretion
Gradual uncovering of land previously covered by water such as when a stream
changes course. - ANSWER: Reliction
The Statute of Limitations in the state of California allows how long to take action? -
ANSWER: 4 years
The process by which the court may seize real or personal property as security for a
satisfaction of monetary judgement. - ANSWER: Attachment
When is a 20-day preliminary notice of a mechanics lien need to be issued? -
ANSWER: 20-days after the claimant (contractor) has first furnished labor, services,
equipment, or materials.
What is the purpose of issuing a preliminary notice of a mechanics lien to a claimant?
- ANSWER: To inform concerned parties that the property may be subject to liens
arising out of contract.
, What is the brokers relationship to the customer? - ANSWER: The broker is the agent
to the customer (customer employs the broker).
What is the agents (salesperson) relationship to the broker? - ANSWER: The
salesperson is the agent to the broker (the broker gives the salesperson authority to
act on his/her behalf).
A Home Equity Line of Credit is - ANSWER: An Open Ended Mortgage
An Open Ended Mortgage is - ANSWER: A type of note that permits the borrower to
obtain more money at a future date under the same deed of trust.
Zoning is an example of - ANSWER: Police power
Local jurisdictions have the authority to divide land into districts and impose land use
regulations to promote health, safety, and welfare of the public--this is known as -
ANSWER: Zoning
When can restrictions placed on a deed be removed? - ANSWER: Never
What is the only restriction placed on a deed that is considered illegal? - ANSWER:
Race restrictions
Is an option contract bilateral or unilateral? - ANSWER: Unilateral
What does an option contract NOT do? - ANSWER: Create a legal interest in a
property
If a buyer has defaulted on on an original land contract which had been recorded,
this would result in a defective title, requiring legal action to clear the title. This is
called - ANSWER: a Quiet Title Action.
A promise is also known as a - ANSWER: Covenant
A court action is mandatory to evict a delinquent tenant. This process is called -
ANSWER: Unlawful Detainer
A verbal contract is considered - ANSWER: Valid
California Statute of Frauds require a real estate agreement to be - ANSWER: In
writing
What kind of listing agreement offers a listing broker to receive a commission
regardless of who is the "procuring" cause? Is also considered the greatest
protection for the agent. - ANSWER: Exclusive right to sell
