California Legal Aspects of Real Estate
Final Exam Questions with Verified and
Updated Answers
, California Legal Aspects of Real Estate
Final Exam Questions with Verified and
Updated Answers
A balloon payment on a real estate loan is:
a. the final payment to pay off a loan
b. the smallest payment made on the loan
c. more than twice the amount of the smallest payment
d. a payment made by a guarantor of the loan - Answer ✓✓c. more than twice the
amount of the smallest payment
A deed in lieu of foreclosing is when, instead of foreclosing, the mortgage allows the
mortgagor to deed the property to the:
a. investor purchasing the property at the foreclosure sale
b. mortgagor's relative
c. mortgagee
d. real estate agent - Answer ✓✓c. mortgagee
A due-on-sale clause is also known as:
a. an alienation clause
b. an overall clause
c. a due-on-loan-payoff clause
d. an alternative payoff clause - Answer ✓✓a. an alienation clause
A homestead declaration does not protect an owner from liens such as:
a. trust deeds
b. mechanic's liens
c. all of these
d. tax liens - Answer ✓✓c. all of these
A homestead exemption applies to:
a. a property tax reduction amount
, b. an owner's equity
c. the amount a person can pay for a homestead property
d. the total amount of the obligation - Answer ✓✓b. an owner's equity
A landlord has a right of entry into leased premises if the tenant has:
a. mistreated the landlord
b. been obnoxious to other tenants
c. abandoned the premises
d. defaulted on the rent - Answer ✓✓c. abandoned the premises
A landlord's obligation to put a building intended for human habitation in a condition that
is fit for occupancy is referred to as:
a. fulfilling the beneficial habitation laws
b. an implied warranty of habitability
c. fulfilling occupancy standards
d. a warranty of occupancy - Answer ✓✓b. an implied warranty of habitability
A lease may be terminated if a trust deed, which was recorded before the lease, is:
a. stopped
b. paid off
c. foreclosed
d. hypothecated - Answer ✓✓c. foreclosed
A lease that provides renewal options on a tenancy for years on agricultural land for
more than 51 years would be:
a. enforceable
b. a violation of the tenant's rights
c. unenforceable
d. a violation of the landlord's rights - Answer ✓✓c. unenforceable
A nephew who unjustly persuades his elderly uncle to transfer property to him for a
token consideration would make the contract voidable and would be considered:
Final Exam Questions with Verified and
Updated Answers
, California Legal Aspects of Real Estate
Final Exam Questions with Verified and
Updated Answers
A balloon payment on a real estate loan is:
a. the final payment to pay off a loan
b. the smallest payment made on the loan
c. more than twice the amount of the smallest payment
d. a payment made by a guarantor of the loan - Answer ✓✓c. more than twice the
amount of the smallest payment
A deed in lieu of foreclosing is when, instead of foreclosing, the mortgage allows the
mortgagor to deed the property to the:
a. investor purchasing the property at the foreclosure sale
b. mortgagor's relative
c. mortgagee
d. real estate agent - Answer ✓✓c. mortgagee
A due-on-sale clause is also known as:
a. an alienation clause
b. an overall clause
c. a due-on-loan-payoff clause
d. an alternative payoff clause - Answer ✓✓a. an alienation clause
A homestead declaration does not protect an owner from liens such as:
a. trust deeds
b. mechanic's liens
c. all of these
d. tax liens - Answer ✓✓c. all of these
A homestead exemption applies to:
a. a property tax reduction amount
, b. an owner's equity
c. the amount a person can pay for a homestead property
d. the total amount of the obligation - Answer ✓✓b. an owner's equity
A landlord has a right of entry into leased premises if the tenant has:
a. mistreated the landlord
b. been obnoxious to other tenants
c. abandoned the premises
d. defaulted on the rent - Answer ✓✓c. abandoned the premises
A landlord's obligation to put a building intended for human habitation in a condition that
is fit for occupancy is referred to as:
a. fulfilling the beneficial habitation laws
b. an implied warranty of habitability
c. fulfilling occupancy standards
d. a warranty of occupancy - Answer ✓✓b. an implied warranty of habitability
A lease may be terminated if a trust deed, which was recorded before the lease, is:
a. stopped
b. paid off
c. foreclosed
d. hypothecated - Answer ✓✓c. foreclosed
A lease that provides renewal options on a tenancy for years on agricultural land for
more than 51 years would be:
a. enforceable
b. a violation of the tenant's rights
c. unenforceable
d. a violation of the landlord's rights - Answer ✓✓c. unenforceable
A nephew who unjustly persuades his elderly uncle to transfer property to him for a
token consideration would make the contract voidable and would be considered:
