CA Real Estate Exam 2024 Practice
Questions And answers | Updated with
complete solution Rated A+
An insurance policy which combines personal liability insurance and hazard insurance
IIII II II II II II II II II II
coverage for a dwelling and its contents is called:
II II II II II II II II II
Homeowner's insurance II
Buyer's insurance II
Errors and omissions insurance II II II
All of the above - Homeowner's insurance
II II II II II II II II
Homeowner's insurance ensures comprehensive protection for homeowners. II II II II II II
What is the status of a contract when all terms have been fulfilled and the transaction has
II II II II II II II II II II II II II II II II II
been closed?
II II
Fully executed II
Terminated
Voidable
Unenforceable - Fully executed II II II II II
This means that both parties have performed their obligations under the contract and
II II II II II II II II II II II II
there are no further actions required. At this point, the contract has been completely
II II II II II II II II II II II II II II
executed and both parties are typically released from any further obligations under the
II II II II II II II II II II II II II
agreement.
II
Surface rights, air rights, and subsurface rights are all rights that can be sold by a property
II II II II II II II II II II II II II II II II II
owner while still retaining the property itself. These rights are known as:
II II II II II II II II II II II II
Severable rights II
Littoral rights II
Owner's rights II
Riparian rights - Severable rights II II II II II II
Surface rights, air rights, and subsurface rights can be sold separately and are called
II II II II II II II II II II II II II
severable rights.
II II
When an easement allows the use of a neighboring property which automatically
II II II II II II II II II II II II
transfers upon the sale of either dominant or servient property, it is called what type of
II II II II II II II II II II II II II II II II
easement?
II
Easement by prescription II II
,Easement appurtenant II
Easement in gross II II
Easement of utility - Easement in appurtenant II II II II II II II II
Appurtenant means "runs with the land." II II II II II
Linda purchased a fee simple interest for the private use of a residential property for one
II II II II II II II II II II II II II II II II
week every single year. What did Linda purchase?
II II II II II II II II
Shares in a cooperative building II II II II
A condominium
II II
Common elements II
Resort timeshare - Resort timeshare II II II II II II
Vacation timeshare resorts sell a fee simple form of ownership to a buyer for the private
II II II II II II II II II II II II II II II
and exclusive use of a unit for one week a year. There is title work, a closing, and the
II II II II II II II II II II II II II II II II II II II
buyer is conveyed a deed.
II II II II II
What is the highest form of land ownership which includes the full and complete bundle of
II II II II II II II II II II II II II II II II
property rights?
II II
Fee simple defeasible
II II
Fee simple determinable
II II
Fee simple condition subsequent
II II II
Fee simple absolute - Fee simple absolute
II II II II II II II II
Fee simple absolute freehold estate is the highest level of property ownership giving the
II II II II II II II II II II II II II
ownership giving the owner the right of possession, control, exclusion, enjoyment, and
II II II II II II II II II II II II
disposition.
II
What type of ownership would allow two or more owners to have various unequal
II II II II II II II II II II II II II II
percentages of ownership?
II II II
Joint tenancy with rights of survivorship
II II II II II
Joint tenancy II
Tenancy in common II II
Tenancy in severalty - Tenancy in common II II II II II II II II
Tenancy in common grants owners to have an equal, undivided interest in a property, but
II II II II II II II II II II II II II II
also allows owners to have varying percentages of unequal ownership as well.
II II II II II II II II II II II II
II Tenancy in severalty is best described as: II II II II II II
Two property owners
II II
One property owner
II II
More than two property owners
II II II II
,Property owned by a corporation - One property owner II II II II II II II II II II
Severing all other owners, when a single person is the sole owner of a property.
II II II II II II II II II II II II II II
II Which of the following is not one of the four land use controls?
II II II II II II II II II II II II
Police power II
Intestate
Escheat
Eminent domain - Intestate II II II II II
The four public land use controls in real estate are: police power, escheat, eminent
II II II II II II II II II II II II II
domain, and taxation. Intestate is a person who died without making a will.
II II II II II II II II II II II II II
II What is the general purpose for cities to require building permits?
II II II II II II II II II II
Permit fees are income for the city II II II II II II
Control the amount of building allowed II II II II II
To supersede deed restrictions
II II II
To require a minimum level of construction standards - To require a minimum level of
II II II II II II II II II II II II II II II II
construction standards
II II
Construction standards are placed to maintain the safety and well-being of the public. II II II II II II II II II II II II
II The interest rate banks charge to their preferred customers is called:
II II II II II II II II II II
The graduated rate
II II
The preferred rate
II II
The prime rate
II II II
The priority rate - The prime rate
II II II II II II II II
The prime rate is the rate the banks charge their preferred customers for loans.
II II II II II II II II II II II II II
The city of Brownwood plans to build a new water treatment facility, but the land that is
II II II II II II II II II II II II II II II II II
required is privately owned. Eminent domain allows the city to:
II II II II II II II II II II
Take possession with no compensation to the property owner
II II II II II II II II
Do nothing, the city does not own the land
II II II II II II II II
Ask the property owner to donate
II II II II II
Take possession against the owner's wishes, but the owner must be compensated -
II II II II II II II II II II II II II II
Take possession against the owner's wishes, but the owner must be compensated
II II II II II II II II II II II II
Eminent domain allows the government to take possession of privately owned land for
II II II II II II II II II II II II
use by the public even at the objection of the owner as long as the property owner
II II II II II II II II II II II II II II II II II
receives compensation.
II II
, II When the appraised value of a property is given, it is based on:
II II II II II II II II II II II II
Comparable sales II
A lower purchase price
II II II
None of these II II
An exact determination of market value - Comparable sales
II II II II II II II II II II
Agent Brook is preparing for a listing appointment and has gathered information to
II II II II II II II II II II II II II
prepare a report of recent market data for the seller to review. The report agents reconcile
II II II II II II II II II II II II II II II II
to obtain a reasonable list price for a property based on current listings, recent sales, and
II II II II II II II II II II II II II II II II
expireds would be called:
II II II II
Comparable marketing analytics (CMA) II II II
Broker price opinion (BPO) II II II
Comparative market analysis (CMA) II II II
Agent market analysis (AMA) - Comparative market analysis (CMA)
II II II II II II II II II II
Paul owns an older residential property in an area now zoned for commercial use. Paul
II II II II II II II II II II II II II II II
decides to renovate the home into a laundry mat. The change in the properties
II II II II II II II II II II II II II II
functionality for Paul's financial gain is an example of:
II II II II II II II II II
Highest and best use II II II
Substitution
Assemblage
Conformity - Highest and best use II II II II II II II
The transition of the residential property to an income producing business is an example
II II II II II II II II II II II II II
of the property being put to its highest and best use.
II II II II II II II II II II II
Jon's Tire Store is being built across the street from Big Bob's Tires. What appraisal
II II II II II II II II II II II II II II II
principle describes this situation?
II II II II
Substitution
Plottage
Competition
Progression - Competition II II II II
The appraisal principle of competition states that two similar businesses attract more
II II II II II II II II II II II
customers when within close proximity than they would separately.
II II II II II II II II II
Buyer Sam purchased a run down residential home in a neighborhood with many nice
II II II II II II II II II II II II II II
well kept properties. Sam intends to renovate the home and resell it for a profit.
II II II II II II II II II II II II II II II
Considering the nicer homes in the neighborhood help raise his property value, what
II II II II II II II II II II II II II
appraisal principle is Sam leveraging?
II II II II II
Regression
Questions And answers | Updated with
complete solution Rated A+
An insurance policy which combines personal liability insurance and hazard insurance
IIII II II II II II II II II II
coverage for a dwelling and its contents is called:
II II II II II II II II II
Homeowner's insurance II
Buyer's insurance II
Errors and omissions insurance II II II
All of the above - Homeowner's insurance
II II II II II II II II
Homeowner's insurance ensures comprehensive protection for homeowners. II II II II II II
What is the status of a contract when all terms have been fulfilled and the transaction has
II II II II II II II II II II II II II II II II II
been closed?
II II
Fully executed II
Terminated
Voidable
Unenforceable - Fully executed II II II II II
This means that both parties have performed their obligations under the contract and
II II II II II II II II II II II II
there are no further actions required. At this point, the contract has been completely
II II II II II II II II II II II II II II
executed and both parties are typically released from any further obligations under the
II II II II II II II II II II II II II
agreement.
II
Surface rights, air rights, and subsurface rights are all rights that can be sold by a property
II II II II II II II II II II II II II II II II II
owner while still retaining the property itself. These rights are known as:
II II II II II II II II II II II II
Severable rights II
Littoral rights II
Owner's rights II
Riparian rights - Severable rights II II II II II II
Surface rights, air rights, and subsurface rights can be sold separately and are called
II II II II II II II II II II II II II
severable rights.
II II
When an easement allows the use of a neighboring property which automatically
II II II II II II II II II II II II
transfers upon the sale of either dominant or servient property, it is called what type of
II II II II II II II II II II II II II II II II
easement?
II
Easement by prescription II II
,Easement appurtenant II
Easement in gross II II
Easement of utility - Easement in appurtenant II II II II II II II II
Appurtenant means "runs with the land." II II II II II
Linda purchased a fee simple interest for the private use of a residential property for one
II II II II II II II II II II II II II II II II
week every single year. What did Linda purchase?
II II II II II II II II
Shares in a cooperative building II II II II
A condominium
II II
Common elements II
Resort timeshare - Resort timeshare II II II II II II
Vacation timeshare resorts sell a fee simple form of ownership to a buyer for the private
II II II II II II II II II II II II II II II
and exclusive use of a unit for one week a year. There is title work, a closing, and the
II II II II II II II II II II II II II II II II II II II
buyer is conveyed a deed.
II II II II II
What is the highest form of land ownership which includes the full and complete bundle of
II II II II II II II II II II II II II II II II
property rights?
II II
Fee simple defeasible
II II
Fee simple determinable
II II
Fee simple condition subsequent
II II II
Fee simple absolute - Fee simple absolute
II II II II II II II II
Fee simple absolute freehold estate is the highest level of property ownership giving the
II II II II II II II II II II II II II
ownership giving the owner the right of possession, control, exclusion, enjoyment, and
II II II II II II II II II II II II
disposition.
II
What type of ownership would allow two or more owners to have various unequal
II II II II II II II II II II II II II II
percentages of ownership?
II II II
Joint tenancy with rights of survivorship
II II II II II
Joint tenancy II
Tenancy in common II II
Tenancy in severalty - Tenancy in common II II II II II II II II
Tenancy in common grants owners to have an equal, undivided interest in a property, but
II II II II II II II II II II II II II II
also allows owners to have varying percentages of unequal ownership as well.
II II II II II II II II II II II II
II Tenancy in severalty is best described as: II II II II II II
Two property owners
II II
One property owner
II II
More than two property owners
II II II II
,Property owned by a corporation - One property owner II II II II II II II II II II
Severing all other owners, when a single person is the sole owner of a property.
II II II II II II II II II II II II II II
II Which of the following is not one of the four land use controls?
II II II II II II II II II II II II
Police power II
Intestate
Escheat
Eminent domain - Intestate II II II II II
The four public land use controls in real estate are: police power, escheat, eminent
II II II II II II II II II II II II II
domain, and taxation. Intestate is a person who died without making a will.
II II II II II II II II II II II II II
II What is the general purpose for cities to require building permits?
II II II II II II II II II II
Permit fees are income for the city II II II II II II
Control the amount of building allowed II II II II II
To supersede deed restrictions
II II II
To require a minimum level of construction standards - To require a minimum level of
II II II II II II II II II II II II II II II II
construction standards
II II
Construction standards are placed to maintain the safety and well-being of the public. II II II II II II II II II II II II
II The interest rate banks charge to their preferred customers is called:
II II II II II II II II II II
The graduated rate
II II
The preferred rate
II II
The prime rate
II II II
The priority rate - The prime rate
II II II II II II II II
The prime rate is the rate the banks charge their preferred customers for loans.
II II II II II II II II II II II II II
The city of Brownwood plans to build a new water treatment facility, but the land that is
II II II II II II II II II II II II II II II II II
required is privately owned. Eminent domain allows the city to:
II II II II II II II II II II
Take possession with no compensation to the property owner
II II II II II II II II
Do nothing, the city does not own the land
II II II II II II II II
Ask the property owner to donate
II II II II II
Take possession against the owner's wishes, but the owner must be compensated -
II II II II II II II II II II II II II II
Take possession against the owner's wishes, but the owner must be compensated
II II II II II II II II II II II II
Eminent domain allows the government to take possession of privately owned land for
II II II II II II II II II II II II
use by the public even at the objection of the owner as long as the property owner
II II II II II II II II II II II II II II II II II
receives compensation.
II II
, II When the appraised value of a property is given, it is based on:
II II II II II II II II II II II II
Comparable sales II
A lower purchase price
II II II
None of these II II
An exact determination of market value - Comparable sales
II II II II II II II II II II
Agent Brook is preparing for a listing appointment and has gathered information to
II II II II II II II II II II II II II
prepare a report of recent market data for the seller to review. The report agents reconcile
II II II II II II II II II II II II II II II II
to obtain a reasonable list price for a property based on current listings, recent sales, and
II II II II II II II II II II II II II II II II
expireds would be called:
II II II II
Comparable marketing analytics (CMA) II II II
Broker price opinion (BPO) II II II
Comparative market analysis (CMA) II II II
Agent market analysis (AMA) - Comparative market analysis (CMA)
II II II II II II II II II II
Paul owns an older residential property in an area now zoned for commercial use. Paul
II II II II II II II II II II II II II II II
decides to renovate the home into a laundry mat. The change in the properties
II II II II II II II II II II II II II II
functionality for Paul's financial gain is an example of:
II II II II II II II II II
Highest and best use II II II
Substitution
Assemblage
Conformity - Highest and best use II II II II II II II
The transition of the residential property to an income producing business is an example
II II II II II II II II II II II II II
of the property being put to its highest and best use.
II II II II II II II II II II II
Jon's Tire Store is being built across the street from Big Bob's Tires. What appraisal
II II II II II II II II II II II II II II II
principle describes this situation?
II II II II
Substitution
Plottage
Competition
Progression - Competition II II II II
The appraisal principle of competition states that two similar businesses attract more
II II II II II II II II II II II
customers when within close proximity than they would separately.
II II II II II II II II II
Buyer Sam purchased a run down residential home in a neighborhood with many nice
II II II II II II II II II II II II II II
well kept properties. Sam intends to renovate the home and resell it for a profit.
II II II II II II II II II II II II II II II
Considering the nicer homes in the neighborhood help raise his property value, what
II II II II II II II II II II II II II
appraisal principle is Sam leveraging?
II II II II II
Regression
