CALIFORNIA REAL ESTATE LICENSE EXAM 2026
STUDY GUIDE
◉ ingress and egress (right of). Answer: The permission to enter
upon and exit from property. A form of easement. Often related to
Streams
◉ Abstract of Judgement. Answer: Document stipulating the
outcome of a legal action, which can be filed in any county where the
judgement debtor has property.
◉ Abstract of Title. Answer: A summary or digest of all recorded
transfers, conveyances, legal proceedings, and any other facts relied
on as evidence of title to show continuity of ownership and indicate
any possible impairments to title
◉ Acceleration Clause. Answer: A provision in a real estate financing
instrument that allows the lender to declare the remaining
indebtedness due and payable on the happening of certain
conditions, such as the sale of the property or the borrower's default
in payment
◉ Acceptance. Answer: Indication by the person to whom an offer is
made (the offeree) of agreement to the terms of the offer. If the offer
requires a writing, the acceptance must also be in writing.
,◉ Accession. Answer: The process of manufactured or natural
improvement or addition to property.
◉ Accounting. Answer: The obligation to account for all money or
property belonging to the principal
◉ Accretion. Answer: Accession by natural forces, e.g., alluvium.
◉ Acknowledgement. Answer: A formal declaration made before an
authorized person by a person who has executed a written
instrument, stating that the execution of the instrument is the
person's own act
◉ Acquisition Cost. Answer: For FHA-insured loans, the price to
procure property, including purchase price and all nonrecurring
closing costs, including discount points, FHA application fee, service
charge and credit report, FHA appraisal, escrow, document
preparation, title insurance, termite inspection, reconveyance, and
recording fees
◉ Acre. Answer: A measure of land equal to 43,560 square feet, 160
Rods, 4,840 Square yards, or a tract about 208.71 feet square
,◉ Action for Declaratory Relief. Answer: Legal proceeding brought
to determine the respective rights of the parties before a
controversy arises
◉ Action to a Quiet Title. Answer: A court proceeding brought to
establish title to real property
◉ Actual Age. Answer: The number of years since completion of a
building; also called historical or chronological age
◉ Actual Authority. Answer: The authority an agent has because it is
specified in the agency agreement, or that the agent believes he or
she has because of an unintentional or a careless act of principal
◉ Actual Fraud. Answer: A deliberate misrepresentation or a
representation made in reckless disregard of its truth or falsity; the
suppression of truth; a promise made without the intention to
perform it; or any other act intended to deceive.
◉ Adjustable Rate Mortgage (ARM). Answer: Finance instrument
whose interest rate will vary according to the change in an identified
index or rate, such as the 11th District Cost of Funds.
◉ Adjustable Rate Note. Answer: Promissory note that serves as
evidence of a debt that carries an interest rate that will vary
, according to the change in an identified index or rate, such as the
11th District Cost of Funds.
◉ Adjusted Cost Basis. Answer: Purchase price of property plus cost
of specified improvements, less any depreciation deductions taken
on the property
◉ Adjusted Gross Income. Answer: Income from all sources less
deductions for taxes, depreciation, and other allowable deductions
◉ Administrator. Answer: The personal representative of the estate
appointed by the probate court.
◉ Ad Valorem. Answer: A Latin phrase meaning "according to
value"; used to describe a tax charged in relation to the value of the
property taxed
◉ Adverse Possession. Answer: A method of acquiring original title
to property by occupying the property against the interest of the
true owner and fulfilling other statutory requirements
◉ Affirmative Fraud. Answer: A deliberate statement of a material
fact that the speaker knows to be false and on which the speaker
intends another person to rely to his or her detriment.
STUDY GUIDE
◉ ingress and egress (right of). Answer: The permission to enter
upon and exit from property. A form of easement. Often related to
Streams
◉ Abstract of Judgement. Answer: Document stipulating the
outcome of a legal action, which can be filed in any county where the
judgement debtor has property.
◉ Abstract of Title. Answer: A summary or digest of all recorded
transfers, conveyances, legal proceedings, and any other facts relied
on as evidence of title to show continuity of ownership and indicate
any possible impairments to title
◉ Acceleration Clause. Answer: A provision in a real estate financing
instrument that allows the lender to declare the remaining
indebtedness due and payable on the happening of certain
conditions, such as the sale of the property or the borrower's default
in payment
◉ Acceptance. Answer: Indication by the person to whom an offer is
made (the offeree) of agreement to the terms of the offer. If the offer
requires a writing, the acceptance must also be in writing.
,◉ Accession. Answer: The process of manufactured or natural
improvement or addition to property.
◉ Accounting. Answer: The obligation to account for all money or
property belonging to the principal
◉ Accretion. Answer: Accession by natural forces, e.g., alluvium.
◉ Acknowledgement. Answer: A formal declaration made before an
authorized person by a person who has executed a written
instrument, stating that the execution of the instrument is the
person's own act
◉ Acquisition Cost. Answer: For FHA-insured loans, the price to
procure property, including purchase price and all nonrecurring
closing costs, including discount points, FHA application fee, service
charge and credit report, FHA appraisal, escrow, document
preparation, title insurance, termite inspection, reconveyance, and
recording fees
◉ Acre. Answer: A measure of land equal to 43,560 square feet, 160
Rods, 4,840 Square yards, or a tract about 208.71 feet square
,◉ Action for Declaratory Relief. Answer: Legal proceeding brought
to determine the respective rights of the parties before a
controversy arises
◉ Action to a Quiet Title. Answer: A court proceeding brought to
establish title to real property
◉ Actual Age. Answer: The number of years since completion of a
building; also called historical or chronological age
◉ Actual Authority. Answer: The authority an agent has because it is
specified in the agency agreement, or that the agent believes he or
she has because of an unintentional or a careless act of principal
◉ Actual Fraud. Answer: A deliberate misrepresentation or a
representation made in reckless disregard of its truth or falsity; the
suppression of truth; a promise made without the intention to
perform it; or any other act intended to deceive.
◉ Adjustable Rate Mortgage (ARM). Answer: Finance instrument
whose interest rate will vary according to the change in an identified
index or rate, such as the 11th District Cost of Funds.
◉ Adjustable Rate Note. Answer: Promissory note that serves as
evidence of a debt that carries an interest rate that will vary
, according to the change in an identified index or rate, such as the
11th District Cost of Funds.
◉ Adjusted Cost Basis. Answer: Purchase price of property plus cost
of specified improvements, less any depreciation deductions taken
on the property
◉ Adjusted Gross Income. Answer: Income from all sources less
deductions for taxes, depreciation, and other allowable deductions
◉ Administrator. Answer: The personal representative of the estate
appointed by the probate court.
◉ Ad Valorem. Answer: A Latin phrase meaning "according to
value"; used to describe a tax charged in relation to the value of the
property taxed
◉ Adverse Possession. Answer: A method of acquiring original title
to property by occupying the property against the interest of the
true owner and fulfilling other statutory requirements
◉ Affirmative Fraud. Answer: A deliberate statement of a material
fact that the speaker knows to be false and on which the speaker
intends another person to rely to his or her detriment.
