CE SHOP California Real Estate
Principles Exam 2025 Questions and
Answers
Asset held In a land trust - ANSWER✔✔-Real Estate
Level of government where building codes are enforced - ANSWER✔✔-Local
Fixtures - ANSWER✔✔-items of personal property that are attached or annexed to real property
Fair Housing Act of 1968 - ANSWER✔✔-Prohibited discrimination concerning the sale, rental, and
financing of housing based on race. Eliminate discrimination caused by blockbusting, steering, and
redlining.
Steering - ANSWER✔✔-Channeling prospective buyers or tenants to particular neighborhoods
based upon their race, religion, national origin, or ancestry.
Redlining - ANSWER✔✔-A discriminatory real estate practice where minority groups are prevented
from obtaining money to purchase homes or property in white neighborhoods. The practice derived
its name from the red lines depicted on cadastral maps used by real estate agents and developers.
Today, redlining is officially illegal.
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 1
, Blockbusting - ANSWER✔✔-A process by which real estate agents convince white property owners
to sell their houses at low prices because of fear that persons of color will soon move into the
neighborhood
reserve fund - ANSWER✔✔-money that can be made available for the future expansion of a
business. ALSO CALLED ESCROW ACCOUNT
Radon - ANSWER✔✔-A gas that arises from the earth where radioactive materials are present.
Causes lung cancer
Which category of appraiser can appraise one -4 unit residential property valued under 1 million and
that are not complex in nature, and non-residential properties valued below 250000 -
ANSWER✔✔-Residential license
Plottage - ANSWER✔✔-Occurs when two or more sites are combined, with the result that the
value of the assembled site is worth more than the value of the sum of each of the individual sites.
competition, principle of - ANSWER✔✔-Business profits encourage competition, which ultimately
may reduce profits for any one business
CONFORMITY, PRINCIPLE OF - ANSWER✔✔-The maximum of value is realized when a
reasonable degree of homogeneity of improvements is present. Use conformity is desirable, creating
and maintaining higher values.
CONTRIBUTION, PRINCIPLE OF - ANSWER✔✔-An appraisal principle which holds that
the value of real property is at its best when the improvements
produce the highest return proportionate with their cost - the
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 2
Principles Exam 2025 Questions and
Answers
Asset held In a land trust - ANSWER✔✔-Real Estate
Level of government where building codes are enforced - ANSWER✔✔-Local
Fixtures - ANSWER✔✔-items of personal property that are attached or annexed to real property
Fair Housing Act of 1968 - ANSWER✔✔-Prohibited discrimination concerning the sale, rental, and
financing of housing based on race. Eliminate discrimination caused by blockbusting, steering, and
redlining.
Steering - ANSWER✔✔-Channeling prospective buyers or tenants to particular neighborhoods
based upon their race, religion, national origin, or ancestry.
Redlining - ANSWER✔✔-A discriminatory real estate practice where minority groups are prevented
from obtaining money to purchase homes or property in white neighborhoods. The practice derived
its name from the red lines depicted on cadastral maps used by real estate agents and developers.
Today, redlining is officially illegal.
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 1
, Blockbusting - ANSWER✔✔-A process by which real estate agents convince white property owners
to sell their houses at low prices because of fear that persons of color will soon move into the
neighborhood
reserve fund - ANSWER✔✔-money that can be made available for the future expansion of a
business. ALSO CALLED ESCROW ACCOUNT
Radon - ANSWER✔✔-A gas that arises from the earth where radioactive materials are present.
Causes lung cancer
Which category of appraiser can appraise one -4 unit residential property valued under 1 million and
that are not complex in nature, and non-residential properties valued below 250000 -
ANSWER✔✔-Residential license
Plottage - ANSWER✔✔-Occurs when two or more sites are combined, with the result that the
value of the assembled site is worth more than the value of the sum of each of the individual sites.
competition, principle of - ANSWER✔✔-Business profits encourage competition, which ultimately
may reduce profits for any one business
CONFORMITY, PRINCIPLE OF - ANSWER✔✔-The maximum of value is realized when a
reasonable degree of homogeneity of improvements is present. Use conformity is desirable, creating
and maintaining higher values.
CONTRIBUTION, PRINCIPLE OF - ANSWER✔✔-An appraisal principle which holds that
the value of real property is at its best when the improvements
produce the highest return proportionate with their cost - the
FOR STUDY PURPOSES ONLY COPYRIGHT © 2025 ALL RIGHTS RESERVED 2
