California Real Estate Exam Study Guide Questions with Correct Answers

California Real Estate Exam Study Guide Questions with Correct Answers What is the DOCTRINE OF EMINENT DOMAIN? - Answer-Private property taken for beneficial public use. Examples: Freeways, highways, dams, power stations, hospital sites, parks, etc. How does the process of Eminent Domain work? - Answer-a. A negotiation is made to purchase the land. 1) Owner may sell. Owner is compensated. 2) Owner may refuse to sell. If owner refuses to sell, power of condemnation is invoked. Owner still receives "just" compensation. Note: Under either circumstance owner is generally paid for the real property but not for personal property. What is Police Power? - Answer-REGULATING THE USE OF LAND The right of the state to enact laws; of cities or counties to enact ordinances for protection and the "Health, Welfare, Safety, Morals and General Well-Being" of the public. Examples: Zoning Ordinances (designating property usage) or Condemnation for health or safety purposes. Note: Compensation is not required for actions instituted under Police Power. What is Escheat? - Answer-Reversion of unclaimed property to the State a. Action takes place when death occurs and the deceased party leaves NO WILL, and NO HEIRS to claim the estate. b. Not automatic - requires a 5 YEAR WAITING PERIOD. What are two types of Estates in Property? - Answer-Freehold and Less-than-freehold What is a Freehold estate? - Answer-Ownership evidenced by deed. Conveys existing "Bundle of Rights". Fee Estate or/and Life Estate What are 3 essential characteristics of a freehold estate? - Answer-1. Freely Transferable (can be deeded)