California Real Estate MCQs

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The term that best describes a continuous urban corridor joining at least two cities is






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The term real property can also be described as






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The rights of a landowner to a river bordering her property are known as






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In the case of a transfer of ownership of a piece of real estate, a fixture is normally






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A tenant who operates a jewelry store wants to take his jewelry cases with him at the expiration of the lease. Which of the following is most correc...






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A legal description of property is not adequate unless






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The lot and block system of property description is not also known as the






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How many acres does a section of land contain?






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The type of ownership that provides the most complete bundle of rights is






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Which of the following best describes the interests of the holder of a life estate?






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The requirement that multiple owners take title to property at the same time is a characteristic of






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Which of the following are most similar to each other with respect to inheriting property?






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Which of the following is a generic term for a group of people joining together to invest in real estate?






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When is a landowner entitled to compensation for a change in zoning?






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A statement of the goals and policies regarding growth of a community is a good definition of the






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The proper way for a landowner who has physical difficulty in developing his property to get relief is to obtain a






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At which lot does the Subdivided Lands Law take effect?






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The primary difference between a common interest subdivision and a standard subdivision is






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The state has enacted legislation providing special consideration or control for development of






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All liens are encumbrances. All encumbrances are






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A mechanic’s lien creates






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The land that benefits from an easement is referred to as the






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A deed restriction prohibiting the sale of property to certain ethnic groups






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A private deed restriction that places a restraint on alienation






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The process by which eminent domain occurs is called






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Which of the following types of easement does not run with the land?






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An easement is an encumbrance






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An agent represents a






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What is another term for an agent entrusted to act on someone’s behalf?






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The seller of a one-family house is required to disclose to buyers






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The agent who brings a ready, willing, and able buyer to a seller is commonly called the






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Broker A has a listing agreement to sell Seller B’s house. Broker A brings an offer to Seller B on behalf of Buyer C. Seller B rejects the offer a...






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Seller A has signed a listing agreement with Broker B. Without the assistance of Broker B, Seller A sells her property and under the terms of the l...






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Broker A agrees to represent Seller B in the sale of her house. Seller B agrees to pay Broker A a commission if he successfully sells the house. Wh...






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Seller A wants to walk away with $200,000 after the sale of her house and all expenses are paid. She agrees that Broker B can keep, as his fee, an...






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A cooperating broker may represent






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Who of the following owes fiduciary responsibility to the buyer?






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A real estate salesperson is always considered an






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Which of the following is not a type of listing agreement?






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A broker hired to sell a house is considered a






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Seller A wants to get the broadest exposure for the sale of her house but does not want to pay a commission if she sells the house herself. What ty...






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Broker A has a listing to market Seller B’s house. He also has a buyer’s agency agreement to find a house for Buyer C. If Buyer C becomes intere...






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All agency agreements for the sale of property must be in writing except creation of an agency by






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Broker A agrees in writing to keep details of Seller B’s property in his files but indicated that he will not actively market it. Seller B agrees ...






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An uncashed deposit check usually may be held and not deposited by the broker for how many days before an offer is accepted?






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The most profitable single use that will generate the highest value for a piece of property is called its






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Which of the following is not a characteristic of value?






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Two lots, each valued at $50,000, when combined have a value of $125,000. What term best describes this added value?






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In appraising a property, the process by which dissimilarities are accounted for in comparing a subject property and a comparable property is calle...






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Which of the following is an example of functional obsolescence?






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Which of the following is deducted from potential gross income to arrive at effective gross income?






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An appraisal may have more than one date on it. The date of the value estimate is the






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If you assume that depreciation occurs at an even rate, what method of calculating depreciation would you be using?






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In the income approach to estimating value, another term for the capitalization rate is






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A parking lot in a downtown area being developed with office buildings is most likely






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The gross rent multiplier approach is a useful income approach in appraising






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In order to arrive at a final value estimate after applying all three approaches to value, which of the following will an appraiser do?






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Potential gross income of an investment property is the same as






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Which approach to valuation estimates land and building value separately?






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What type of value is the term ad valorem most closely associated with?






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Appraisers paid on the basis of a percentage of the value of a property are






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“An improvement to a property is worth the value it adds, if any, to the whole property, not its individual cost or value” is a good definition...






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Rising mortgage interest rates will tend to






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A person wanting to buy a $200,000 home by putting down $40,000 in cash and borrowing $160,000 is making use of what financial concept?






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A buyer purchases a $275,000 house with $60,000 down and a mortgage loan of $215,000. In order to secure a preferred interest rate, the borrower mu...






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Which of the following activities of the Federal Reserve System is likely to have the most direct effect on the rates charged for consumer credit?






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After 1989, who insured deposits in all federally chartered banks?






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“The difference between the value of a property and all debts attributed to it” is a good definition of






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The terms and conditions of the promise to pay back money borrowed to buy a house is found in the






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The process by which a mortgage loan is paid off in equal payments consisting of principal and interest is called






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The object of creating a negotiable instrument is to






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A home buyer borrows $280,000 to purchase a home for 30 years at an interest rate of 7%. How much interest will he pay the first year on the loan? ...






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California law protects homeowners when the sale of the property cannot cover the outstanding mortgage balance






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A purchaser wants to buy a house that costs $330,000. The bank is offering a mortgage loan at a loan-to-value ratio of 80%. How much will the purch...






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What does a discount point do to the effective yield that a lender gets from a mortgage loan?






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Equity is most accurately defined as






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The law that controls advertising of real estate loans is






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A mortgage lender requires a borrower to make monthly payments, in addition to the mortgage payments, to a special account to cover taxes and hazar...






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Which of the following is not true of VA and FHA loan programs in California?






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Which type of mortgage loan typically results in negative amortization?