CALIFORNIA REAL ESTATE LICENSING EXAM
HIGH-YIELD TOPICS 2026
◉ Freehold estate. Answer: An estate in land in which ownership is
for an indeterminate length of time, in contrast to a leasehold estate.
◉ Front Foot. Answer: Property measured by the front linear foot on
its street line, each front foot extending the depth of the lot
◉ Fructus Industriales. Answer: Plant growth that is the result of
cultivation
◉ Fructus Naturales. Answer: Plant growth that does not require
cultivation, such as natural trees, grasses, and shrubbery.
◉ Full Disclosure of Material Facts. Answer: Obligation of real estate
licensee to make known to the licensee's client as well as
prospective purchasers all facts concerning the property and likely
to affect its value tat are known to the licensee and that the licensee
is not otherwise prohibited by law from disclosing
,◉ Functional Obsolescence. Answer: loss of value due to adverse
factors within a structure that affect the marketability of the
property, such as it's design, layout, or utility.
◉ General Indexes. Answer: Lists of property owners and
documents affecting property title maintained by title companies
◉ General Lien. Answer: A lien on all the property of a debtor.
◉ General Partnership. Answer: An association of two or more
persons, called the partners, to carry on a business as co-owners for
profit. The stockholders of a corporation and the limited partners in
a partnership can lose no more than their initial investment. Under a
general partnership agreement, however, each partner would be
jointly and severally liable for all debts of the firm.
◉ General Plan. Answer: Aka Master plan; includes a statement of
policy of the development and land uses within a city or county and
a program to implement that policy
◉ General Power of Attorney. Answer: Authority to act on behalf of
someone else for financial purposes. See also power of attorney
◉ Gentrification. Answer: Renovation of run-down properties in
neighborhoods that are in decline
,◉ Gift. Answer: Voluntary transfer by an individual of any type of
property for less than full consideration
◉ Gift Deed. Answer: A deed for which the only consideration is
"love and affection"
◉ Gift Tax. Answer: Federal Tax owed by donor on gift in excess of
allowable annual amount per individual. For 2008, gifts of no more
than $12,000 per individual are not taxed
◉ Ginnie Mae. Answer: Formerly the Government National Mortgage
Association; created from the Federal National Mortgage Association
(now known as Fannie Mae) in 1968 to provide a secondary market
for federally backed residential mortgage loans
◉ Girders. Answer: Beams that span foundation walls and footings
to provide support for floor of structure
◉ Good Faith and Honesty. Answer: Obligation of real estate agent to
act in the client's best interests while acting fairly to all parties in the
transaction
◉ Goodwill. Answer: An intangible but salable asset of a business
derived from the expectation of continued public patronage.
, ◉ Graduated Payment Adjustable Rate Mortgage. Answer: Financing
instrument that carries an interest rate that is subject to change
based on a specified index, with loan payments limited to increases
permitted at specific intervals
◉ Graduated Payment Mortgage. Answer: Financing instrument in
which payments are increase during the first five years of the loan
term and then remain fixed for the remainder of the term
◉ Grant. Answer: A conveyance of real estate
◉ Grant Deed. Answer: A limited warranty deed using a granting
clause- the word grant or words to that effect- assuring the grantee
that the estate being conveyed is free from encumbrances placed on
the property by the present owner (the grantor), and that the
grantor has not previously conveyed the property to anyone else
◉ Grantee. Answer: A person to whom property is transferred by
grant
◉ Grantor. Answer: A person conveying property to another by grant
◉ Gross income. Answer: Total property income from all sources
before any expenses are deducted
HIGH-YIELD TOPICS 2026
◉ Freehold estate. Answer: An estate in land in which ownership is
for an indeterminate length of time, in contrast to a leasehold estate.
◉ Front Foot. Answer: Property measured by the front linear foot on
its street line, each front foot extending the depth of the lot
◉ Fructus Industriales. Answer: Plant growth that is the result of
cultivation
◉ Fructus Naturales. Answer: Plant growth that does not require
cultivation, such as natural trees, grasses, and shrubbery.
◉ Full Disclosure of Material Facts. Answer: Obligation of real estate
licensee to make known to the licensee's client as well as
prospective purchasers all facts concerning the property and likely
to affect its value tat are known to the licensee and that the licensee
is not otherwise prohibited by law from disclosing
,◉ Functional Obsolescence. Answer: loss of value due to adverse
factors within a structure that affect the marketability of the
property, such as it's design, layout, or utility.
◉ General Indexes. Answer: Lists of property owners and
documents affecting property title maintained by title companies
◉ General Lien. Answer: A lien on all the property of a debtor.
◉ General Partnership. Answer: An association of two or more
persons, called the partners, to carry on a business as co-owners for
profit. The stockholders of a corporation and the limited partners in
a partnership can lose no more than their initial investment. Under a
general partnership agreement, however, each partner would be
jointly and severally liable for all debts of the firm.
◉ General Plan. Answer: Aka Master plan; includes a statement of
policy of the development and land uses within a city or county and
a program to implement that policy
◉ General Power of Attorney. Answer: Authority to act on behalf of
someone else for financial purposes. See also power of attorney
◉ Gentrification. Answer: Renovation of run-down properties in
neighborhoods that are in decline
,◉ Gift. Answer: Voluntary transfer by an individual of any type of
property for less than full consideration
◉ Gift Deed. Answer: A deed for which the only consideration is
"love and affection"
◉ Gift Tax. Answer: Federal Tax owed by donor on gift in excess of
allowable annual amount per individual. For 2008, gifts of no more
than $12,000 per individual are not taxed
◉ Ginnie Mae. Answer: Formerly the Government National Mortgage
Association; created from the Federal National Mortgage Association
(now known as Fannie Mae) in 1968 to provide a secondary market
for federally backed residential mortgage loans
◉ Girders. Answer: Beams that span foundation walls and footings
to provide support for floor of structure
◉ Good Faith and Honesty. Answer: Obligation of real estate agent to
act in the client's best interests while acting fairly to all parties in the
transaction
◉ Goodwill. Answer: An intangible but salable asset of a business
derived from the expectation of continued public patronage.
, ◉ Graduated Payment Adjustable Rate Mortgage. Answer: Financing
instrument that carries an interest rate that is subject to change
based on a specified index, with loan payments limited to increases
permitted at specific intervals
◉ Graduated Payment Mortgage. Answer: Financing instrument in
which payments are increase during the first five years of the loan
term and then remain fixed for the remainder of the term
◉ Grant. Answer: A conveyance of real estate
◉ Grant Deed. Answer: A limited warranty deed using a granting
clause- the word grant or words to that effect- assuring the grantee
that the estate being conveyed is free from encumbrances placed on
the property by the present owner (the grantor), and that the
grantor has not previously conveyed the property to anyone else
◉ Grantee. Answer: A person to whom property is transferred by
grant
◉ Grantor. Answer: A person conveying property to another by grant
◉ Gross income. Answer: Total property income from all sources
before any expenses are deducted
