California: Real Estate Principles Practice Exam
1 - Salesperson License/ Q&A.
6 of 50 - What are the parts of a mortgage loan? What purpose does each part
serve?
A. A Pledge and Collateral. A Pledge is a promise to pay; and Collateral allows a
lender the right to foreclose if the borrower does not pay.
B. A Promissory Note, a Deed of Trust, and Collateral. A Promissory Note is an
I.O.U. to pay; a Deed of Trust secures the interest in a borrower's real property;
and Collateral allows a lender the right to foreclose if the borrower does not pay.
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,C. A Pledge and Collateral. A Pledge allows a lender the right to foreclose if the
borrower does not pay; and Collateral is a promise to pay.
D. None of the Above. - Answer: A. A Pledge and Collateral. A Pledge is a promise
to pay; and Collateral allows a lender the right to foreclose if the borrower does
not pay.
7 of 50 - Jack is leasing a home from Justin for a year. He has decided to lease until
he gets a good feel for the area and knows where he wants to buy. In this
relationship, who has the reversionary right and who has the possessory right ?
A. Jack has the possessory right and Justin the reversionary right.
B. Jack has the reversionary right and Justin the possessory right.
C. Jack and Justin both have the possessory right.
D. Jack and Justin both share the reversionary right. - Answer: A. Jack has the
possessory right and Justin the reversionary right.
8 of 50 - Which of the following is not a characteristic of the California mortgage
market?
A. California has a large amount of the country's biggest commercial and savings
banks.
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, B. California has a high population; therefore more people means more homes are
needed.
C. Mortgages are used instead of Deeds of Trust, which allows borrowers greater
flexibility and protection.
D. California has a very active secondary mortgage market. - Answer: C.
Mortgages are used instead of Deeds of Trust, which allows borrowers greater
flexibility and protection.
9 of 50 - Bob leased an apartment for three years from the Steiners. He was never
late on his rent in those three years, kept the apartment immaculate, and never
caused a moment of trouble. He has recently purchased his first home and moved
out of the apartment. As expected, Bob gave the Steiners sixty days' notice he
would be moving and left the apartment in perfect condition. It has been 45 days
since he moved out and he's been watching for his security deposit refund to
purchase a new sofa. When should he expect his security deposit refunded?
A. If there had been no damage or cleaning required, which seemed highly likely
in Bob's case, the landlord should have refunded his security deposit within 21
days of Bob's vacating the property.
B. If there had been no damage or cleaning required, which seemed highly
unlikely in Bob's case, the landlord should have refunded his security deposit
within 30 days of Bob's vaca - Answer: A. If there had been no damage or cleaning
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1 - Salesperson License/ Q&A.
6 of 50 - What are the parts of a mortgage loan? What purpose does each part
serve?
A. A Pledge and Collateral. A Pledge is a promise to pay; and Collateral allows a
lender the right to foreclose if the borrower does not pay.
B. A Promissory Note, a Deed of Trust, and Collateral. A Promissory Note is an
I.O.U. to pay; a Deed of Trust secures the interest in a borrower's real property;
and Collateral allows a lender the right to foreclose if the borrower does not pay.
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,C. A Pledge and Collateral. A Pledge allows a lender the right to foreclose if the
borrower does not pay; and Collateral is a promise to pay.
D. None of the Above. - Answer: A. A Pledge and Collateral. A Pledge is a promise
to pay; and Collateral allows a lender the right to foreclose if the borrower does
not pay.
7 of 50 - Jack is leasing a home from Justin for a year. He has decided to lease until
he gets a good feel for the area and knows where he wants to buy. In this
relationship, who has the reversionary right and who has the possessory right ?
A. Jack has the possessory right and Justin the reversionary right.
B. Jack has the reversionary right and Justin the possessory right.
C. Jack and Justin both have the possessory right.
D. Jack and Justin both share the reversionary right. - Answer: A. Jack has the
possessory right and Justin the reversionary right.
8 of 50 - Which of the following is not a characteristic of the California mortgage
market?
A. California has a large amount of the country's biggest commercial and savings
banks.
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, B. California has a high population; therefore more people means more homes are
needed.
C. Mortgages are used instead of Deeds of Trust, which allows borrowers greater
flexibility and protection.
D. California has a very active secondary mortgage market. - Answer: C.
Mortgages are used instead of Deeds of Trust, which allows borrowers greater
flexibility and protection.
9 of 50 - Bob leased an apartment for three years from the Steiners. He was never
late on his rent in those three years, kept the apartment immaculate, and never
caused a moment of trouble. He has recently purchased his first home and moved
out of the apartment. As expected, Bob gave the Steiners sixty days' notice he
would be moving and left the apartment in perfect condition. It has been 45 days
since he moved out and he's been watching for his security deposit refund to
purchase a new sofa. When should he expect his security deposit refunded?
A. If there had been no damage or cleaning required, which seemed highly likely
in Bob's case, the landlord should have refunded his security deposit within 21
days of Bob's vacating the property.
B. If there had been no damage or cleaning required, which seemed highly
unlikely in Bob's case, the landlord should have refunded his security deposit
within 30 days of Bob's vaca - Answer: A. If there had been no damage or cleaning
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