Preparation Exam Test California Real Estate
Principles Questions and Answers Respectively.
A freehold estate consists of:
A. An estate from period to period
B. An estate at will
C. A fee estate
D. A leasehold estate. - Correct Answer-a fee estate
The state wants to acquire a strip of farmland to build a highway. Does the state have the
right to acquire privately owned land for public use?
A. Yes; the state's right is called eminent domain.
B.Yes; the state's right is called escheat.
C. Yes; the state's right is called condemnation.
D. No; under the U.S. Constitution, state or federal governments may never acquire
private property. - Correct Answer-Yes the state's right is eminent domain.
Stephen leases store space to Rose for a restaurant, and Rose installs her ovens, booths,
counters, and other equipment. When do these items become real property?
A.when the lease expires, if the items are not taken by the tenant B.when the lease takes
effect
C.when Rose defaults on her rental payments
D. when they are installed - Correct Answer-when the lease expires, if the items are not
taken by the tenant
In some cases, a broker's commission can be earned by proving that he set in motion a
series of events which resulted in the sale of a property. If a broker produces a ready,
willing and able buyer, he would most likely:
A. have showed the property to the buyer.
B. be considered the "procuring cause" of the sale.
C. have an exclusive right-to-sell listing.
, D. have secured the buyer's signature on the sales contract. - Correct Answer-be
considered the "procuring cause" of the sale.
The beneficiary of a second trust deed sold his interest in the property for less than the
unpaid balance of the note. This action is most commonly described as:
A.Liquidating
B.Subrogating
C. Leveraging
D.Discounting - Correct Answer-Discounting
The effort that brings about the desired result in a real estate sale is known as:
A.procuring cause.
B. principal.
C.REALTOR.
D.procuring broker. - Correct Answer-procuring cause
Susan just learned that the city would like to tear down three homes across the street and
build a new multi-unit apartment building in their place. She wants to sell her home now,
before the value decreases. This is an example of
A.contribution.
B.anticipation.
C.competition.
D. conformity. - Correct Answer-anticipation
The maximum permissible "loan to value ratios" are:
A.fixed by law for conventional loans.
B.based on the banker's competitive market analysis.
C. not determined by federal statute in the case of FHA loans.
D.based on sale price or appraised value, whichever is lower. - Correct Answer-based on
sale price or appraised value, whichever is lower.
An encumbrance that affects the title, usually related to money, is known as:
Principles Questions and Answers Respectively.
A freehold estate consists of:
A. An estate from period to period
B. An estate at will
C. A fee estate
D. A leasehold estate. - Correct Answer-a fee estate
The state wants to acquire a strip of farmland to build a highway. Does the state have the
right to acquire privately owned land for public use?
A. Yes; the state's right is called eminent domain.
B.Yes; the state's right is called escheat.
C. Yes; the state's right is called condemnation.
D. No; under the U.S. Constitution, state or federal governments may never acquire
private property. - Correct Answer-Yes the state's right is eminent domain.
Stephen leases store space to Rose for a restaurant, and Rose installs her ovens, booths,
counters, and other equipment. When do these items become real property?
A.when the lease expires, if the items are not taken by the tenant B.when the lease takes
effect
C.when Rose defaults on her rental payments
D. when they are installed - Correct Answer-when the lease expires, if the items are not
taken by the tenant
In some cases, a broker's commission can be earned by proving that he set in motion a
series of events which resulted in the sale of a property. If a broker produces a ready,
willing and able buyer, he would most likely:
A. have showed the property to the buyer.
B. be considered the "procuring cause" of the sale.
C. have an exclusive right-to-sell listing.
, D. have secured the buyer's signature on the sales contract. - Correct Answer-be
considered the "procuring cause" of the sale.
The beneficiary of a second trust deed sold his interest in the property for less than the
unpaid balance of the note. This action is most commonly described as:
A.Liquidating
B.Subrogating
C. Leveraging
D.Discounting - Correct Answer-Discounting
The effort that brings about the desired result in a real estate sale is known as:
A.procuring cause.
B. principal.
C.REALTOR.
D.procuring broker. - Correct Answer-procuring cause
Susan just learned that the city would like to tear down three homes across the street and
build a new multi-unit apartment building in their place. She wants to sell her home now,
before the value decreases. This is an example of
A.contribution.
B.anticipation.
C.competition.
D. conformity. - Correct Answer-anticipation
The maximum permissible "loan to value ratios" are:
A.fixed by law for conventional loans.
B.based on the banker's competitive market analysis.
C. not determined by federal statute in the case of FHA loans.
D.based on sale price or appraised value, whichever is lower. - Correct Answer-based on
sale price or appraised value, whichever is lower.
An encumbrance that affects the title, usually related to money, is known as:
