Elaborate California Real Estate Exam Practice
Questions with Accurate Answers 2024.
Which of the following best describes the economic characteristics of land?
A) Demand, Utility, Scarcity, Transferability, Situs
B) Scarcity, Situs, Immobility, Utility, Demand
C) Situs, Transferability, Demand, Immobility
D) Indestructibility, Demand, Non-Homogenous, Situs - Correct Answer-Correct Answer:
A) Demand, Utility, Scarcity, Transferability, Situs
(How to remember: DUSTS)
An easement appurtenant
A) May be terminated by the dominant tenement
B) May be terminated by the servient tenement
C) Will be terminated if abandoned by the servient tenement
D) Cannot be terminated - Correct Answer-A) May be terminated by the dominant
tenement
Agent Terry convinces an owner to list his property way under market value. Terry sells
the property to his brother Mark without disclosing the relationship to the buyer in writing.
Mark turns around and sells the property for a profit to split with Terry. This is an example
of:
A) Wholesaling
B) Creative Agency
C) Stealing
D) Self Dealing - Correct Answer-Correct Answer:
D) Self Dealing
,Self dealing is an intentional misrepresentation of an agent's relationship and interest in a
transaction.
What is the general purpose for cities to require building permits?
A) Permit fees are income for the city
B) Control the amount of building allowed
C) To supersede deed restrictions
D) To require a minimum level of construction standards - Correct Answer-Correct
Answer:
D) To require a minimum level of construction standards
The purpose of building permits is to ensure that the proposed work complies with state
and local codes enacted for health, safety and energy conservation purposes.
Tenancy in Severalty is best described as
A) Two property owners
B) One property owner
C) More than two property owners
D) Property owned by a corporation - Correct Answer-Correct Answer:
B) One property owner
Tenancy in severalty — also called sole ownership, ownership in severalty or sole and
separate ownership — is a way of titling real estate to signify that you own the property by
yourself rather than jointly. In a legal context, the term severalty indicates that the owner
has severed their interest from others and is acting as an individual, not as part of a joint
interest.
Surface rights, air rights, and subsurface rights are all rights that can be sold by a property
owner while still retaining the property itself. These rights are known as:
A) Severable rights
B) Littoral Rights
,C) Owner's rights
D) Riparian rights - Correct Answer-Correct Answer:
A) Severable rights
Since surface rights, air rights, and subsurface rights can all be sold SEPARATELY, they
are SEVERABLE rights.
Andy's Arcade has been in business in the same location for 15 years. The city recently
rezoned the area, no longer allowing commercial usage. Soon after the rezoning, Andy's
suffered a devastating fire and the arcade was a total loss. What will Andy need to obtain
from the city in order to rebuild the arcade in the same location?
A) Andy can not rebuild in the same location
B) Andy will need to obtain a variance
C) Andy will only need a building permit
D) Andy must get approval from the EPA - Correct Answer-Correct Answer:
B) Andy will need to obtain a variance
A variance would allow the property owner to deviate from the regular zoning
requirements set forth by the zoning board. Without a variance, all construction in the
zoned area must be residential.
Mr. Thompson passed away. He had no heirs and left no will or instructions as to whom he
wanted to leave his property to. In this situation, his property will revert back to the state
under the doctrine of:
A) Testate
B) Escheat
C) Intestate
D) Eminent Domain - Correct Answer-Correct Answer:
B) Escheat
During the appraisal process the appraiser will NEVER adjust the price of the:
, A) Appraisal
B) Comps
C) Subject Property
D) Land - Correct Answer-Correct Answer:
C) Subject Property
During the appraisal process the appraiser always adjusts the value of the comparables
accordingly but never the value of the subject property
Homeowner Paul is selling his home without a real estate agent. He places an
advertisement stating "Owner Financing 3% down payment" is Paul's advertisement in
violation of the Truth in Lending Act?
A) Yes, when a down payment is listed there must be a price listed also.
B) No, property owners are not regulated by TRIL advertising requirements.
C) Yes, all the terms of the owner financing are not disclosed.
D) Yes, the ad contains trigger terms. - Correct Answer-Correct Answer:
B) No, property owners are not regulated by TRIL advertising requirements.
The Truth in Lending Act and Regulation Z regulates the terms used in lending
advertisements by lenders.
Property owners are exempt from the advertising requirements when selling their
property.
Discount points are a way lenders are able to charge prepaid interest in order to lower the
interest rate over the life of the loan. What is the cost of the discount points based on?
A) The down payment required
B) The appraised property value
C) The loan amount
D) The sales price - Correct Answer-Correct Answer:
C) The loan amount
Questions with Accurate Answers 2024.
Which of the following best describes the economic characteristics of land?
A) Demand, Utility, Scarcity, Transferability, Situs
B) Scarcity, Situs, Immobility, Utility, Demand
C) Situs, Transferability, Demand, Immobility
D) Indestructibility, Demand, Non-Homogenous, Situs - Correct Answer-Correct Answer:
A) Demand, Utility, Scarcity, Transferability, Situs
(How to remember: DUSTS)
An easement appurtenant
A) May be terminated by the dominant tenement
B) May be terminated by the servient tenement
C) Will be terminated if abandoned by the servient tenement
D) Cannot be terminated - Correct Answer-A) May be terminated by the dominant
tenement
Agent Terry convinces an owner to list his property way under market value. Terry sells
the property to his brother Mark without disclosing the relationship to the buyer in writing.
Mark turns around and sells the property for a profit to split with Terry. This is an example
of:
A) Wholesaling
B) Creative Agency
C) Stealing
D) Self Dealing - Correct Answer-Correct Answer:
D) Self Dealing
,Self dealing is an intentional misrepresentation of an agent's relationship and interest in a
transaction.
What is the general purpose for cities to require building permits?
A) Permit fees are income for the city
B) Control the amount of building allowed
C) To supersede deed restrictions
D) To require a minimum level of construction standards - Correct Answer-Correct
Answer:
D) To require a minimum level of construction standards
The purpose of building permits is to ensure that the proposed work complies with state
and local codes enacted for health, safety and energy conservation purposes.
Tenancy in Severalty is best described as
A) Two property owners
B) One property owner
C) More than two property owners
D) Property owned by a corporation - Correct Answer-Correct Answer:
B) One property owner
Tenancy in severalty — also called sole ownership, ownership in severalty or sole and
separate ownership — is a way of titling real estate to signify that you own the property by
yourself rather than jointly. In a legal context, the term severalty indicates that the owner
has severed their interest from others and is acting as an individual, not as part of a joint
interest.
Surface rights, air rights, and subsurface rights are all rights that can be sold by a property
owner while still retaining the property itself. These rights are known as:
A) Severable rights
B) Littoral Rights
,C) Owner's rights
D) Riparian rights - Correct Answer-Correct Answer:
A) Severable rights
Since surface rights, air rights, and subsurface rights can all be sold SEPARATELY, they
are SEVERABLE rights.
Andy's Arcade has been in business in the same location for 15 years. The city recently
rezoned the area, no longer allowing commercial usage. Soon after the rezoning, Andy's
suffered a devastating fire and the arcade was a total loss. What will Andy need to obtain
from the city in order to rebuild the arcade in the same location?
A) Andy can not rebuild in the same location
B) Andy will need to obtain a variance
C) Andy will only need a building permit
D) Andy must get approval from the EPA - Correct Answer-Correct Answer:
B) Andy will need to obtain a variance
A variance would allow the property owner to deviate from the regular zoning
requirements set forth by the zoning board. Without a variance, all construction in the
zoned area must be residential.
Mr. Thompson passed away. He had no heirs and left no will or instructions as to whom he
wanted to leave his property to. In this situation, his property will revert back to the state
under the doctrine of:
A) Testate
B) Escheat
C) Intestate
D) Eminent Domain - Correct Answer-Correct Answer:
B) Escheat
During the appraisal process the appraiser will NEVER adjust the price of the:
, A) Appraisal
B) Comps
C) Subject Property
D) Land - Correct Answer-Correct Answer:
C) Subject Property
During the appraisal process the appraiser always adjusts the value of the comparables
accordingly but never the value of the subject property
Homeowner Paul is selling his home without a real estate agent. He places an
advertisement stating "Owner Financing 3% down payment" is Paul's advertisement in
violation of the Truth in Lending Act?
A) Yes, when a down payment is listed there must be a price listed also.
B) No, property owners are not regulated by TRIL advertising requirements.
C) Yes, all the terms of the owner financing are not disclosed.
D) Yes, the ad contains trigger terms. - Correct Answer-Correct Answer:
B) No, property owners are not regulated by TRIL advertising requirements.
The Truth in Lending Act and Regulation Z regulates the terms used in lending
advertisements by lenders.
Property owners are exempt from the advertising requirements when selling their
property.
Discount points are a way lenders are able to charge prepaid interest in order to lower the
interest rate over the life of the loan. What is the cost of the discount points based on?
A) The down payment required
B) The appraised property value
C) The loan amount
D) The sales price - Correct Answer-Correct Answer:
C) The loan amount
