California Real Estate Exam Questions and Answers(A+ Solution guide) Updated 2024

In reference to Property Taxes, "basis" or "cost" is - Purchase price of prop plus cost of improvements. How is a condominium unit owned? - Separate interest How are common interests in a condo owned? - Equally in undivided interest Subdivided Land Laws refer to - Subdivisions of 5+ parcels on 160 acres, regulated marketing & financing, and requires disclosures in public report. How long is a disclosure in public report for Subdivided Land Laws good for? - 5 Years When does a tax year run? - July 1-June 30 Legally combining smaller, adjacent parcels of land to form a larger parcel. - Plottage or assemblage Separating large parcels into smaller lots - Subdividing or separating Amount or size of land being increased by natural forces such as deposits by wind or water. - Accretion Gradual uncovering of land previously covered by water such as when a stream changes course. - Reliction The Statute of Limitations in the state of California allows how long to take action? - 4 yearsThe process by which the court may seize real or personal property as security for a satisfaction of monetary judgement. - Attachment When is a 20-day preliminary notice of a mechanics lien need to be issued? - 20-days after the claimant (contractor) has first furnished labor, services, equipment, or materials. What is the purpose of issuing a preliminary notice of a mechanics lien to a claimant? - To inform concerned parties that the property may be subject to liens arising out of contract. What is the brokers relationship to the customer? - The broker is the agent to the customer (customer employs the broker). What is the agents (salesperson) relationship to the broker? - The salesperson is the agent to the broker (the broker gives the salesperson authority to act on his/her behalf). A Home Equity Line of Credit is - An Open Ended Mortgage An Open Ended Mortgage is - A type of note that permits the borrower to obtain more money at a future date under the same deed of trust. Zoning is an example of - Police power Local jurisdictions have the authority to divide land into districts and impose land use regulations to promote health, safety, and welfare of the public--this is known as - Zoning When can restrictions placed on a deed be removed? - Never What is the only restriction placed on a deed that is considered illegal? - Race restrictions Is an option contract bilateral or unilateral? - UnilateralWhat does an option contract NOT do? - Create a legal interest in a property If a buyer has defaulted on on an original land contract which had been recorded, this would result in a defective title, requiring legal action to clear the title. This is called - a Quiet Title Action. A promise is also known as a - Covenant