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CALIFORNIA REAL ESTATE SALESPERSON EXAM
2024 ACTUAL EXAM QUESTIONS WITH DETAILED
VERIFIED ANSWERS /ALREADY GRADED A+
Acceleration Clause - (answers)The clause in a mortgage or deed of trust that can
be enforced to make the entire debt due immediately if the borrower defaults on an
installment payment or other covenant. (Pay now)
Adjustable Rate Mortgage (ARM) - (answers)a mortgage with an interest rate that
increases or decreases during the life of the loan
adjustment date - (answers)The date the interest rate changes on an adjustable-rate
mortgage.
Amortization - (answers)A method for computing equal periodic payments for an
installment loan. (Paid within certain range of time)
amortization schedule - (answers)A table showing precisely how a loan will be
repaid. It gives the required payment on each payment date and a breakdown of the
payment, showing how much is interest and how much is repayment of principal.
Annual Percentage Rate (APR) - (answers)Cost of borrowing money on an annual
basis; takes into account the interest rate and other related fees on a loan.
Application - (answers)The form used to apply for a mortgage loan, containing
information about a borrower'a income, savings, assets, debts, and more.
, 2
Appraisal - (answers)A written justification of the price paid for a property,
primarily based on an analysis of comparable sales of similar homes nearby.
appraised value - (answers)An opinion of a property's fair market value, based on
an appraiser's knowledge, experience, and analysis of the property. Since an
appraisal is based primarily on comparable sales, and the most recent sale is the
one on the property in question, the appraisal usually comes out at the purchase
price.
Appraiser - (answers)An individual qualified by education, training, and
experience to estimate the value of real property and personal property. Although
some appraisers work directly for mortgage lenders, most are independent.
Appreciation - (answers)increase in value over time
Assessed Value (AV) - (answers)The valuation placed on property by a public tax
assessor for purposes of taxation.
Assessment - (answers)The placing of a value on property for the purpose of
taxation.
Assessor - (answers)A public official who establishes the value of a property for
taxation purposes.
Asset - (answers)item of value owned by a firm or an individual
, 3
Assignment - (answers)When ownership of your mortgage is transferred from one
company or individual to another, it is called an assignment.
Assumable Mortgage - (answers)A mortgage that can be assumed by the buyer
when a home is sold. Usually, the borrower must "qualify" in order to assume the
loan.
assumption - (answers)The term applied when a buyer assumes the seller's
mortgage.
Balloon Mortgage - (answers)A mortgage loan that requires the remaining
principal balance be paid at a specific point in time. For example, a loan may be
amortized as if it would be paid over a thirty year period, but requires that at the
end of the tenth year the entire remaining balance must be paid.
Balloon Payment - (answers)The final lump sum payment that is due at the
termination of a balloon mortgage.
bankruptcy - (answers)By filing in federal bankruptcy court, an individual or
individuals can restructure or relieve themselves of debts and liabilities.
Bankruptcies are of various types, but the most common for an individual seem to
be a "Chapter 7 No Asset" bankruptcy which relieves the borrower of most types
of debts. A borrower cannot usually qualify for an "A" paper loan for a period of
two years after the bankruptcy has been discharged and requires the re-
establishment of an ability to repay debt.
Bill of sale - (answers)A written document that transfers title to personal property.
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biweekly mortgage - (answers)A mortgage in which you make payments every
two weeks instead of once a month. The basic result is that instead of making
twelve monthly payments during the year, you make thirteen. The extra payment
reduces the principal, substantially reducing the time it takes to pay off a thirty
year mortgage. Note: there are independent companies that encourage you to set up
bi-weekly payment schedules with them on your thirty year mortgage. They charge
a set-up fee and a transfer fee for every payment. Your funds are deposited into a
trust account from which your monthly payment is then made, and the excess
funds then remain in the trust account until enough has accrued to make the
additional payment which will then be paid to reduce your principle. You could
save money by doing the same thing yourself, plus you have to have faith that once
you transfer money to them that they will actually transfer your funds to your
lender.
bond market - (answers)Usually refers to the daily buying and selling of thirty
year treasury bonds. Lenders follow this market intensely because as the yields of
bonds go up and down, fixed rate mortgages do approximately the same thing. The
same factors that affect the Treasury Bond market also affect mortgage rates at the
same time. That is why rates change daily, and in a volatile market can and do
change during the day as well.
Bridge loan - (answers)Not used much anymore, bridge loans are obtained by
those who have not yet sold their previous property, but must close on a purchase
property. The bridge loan becomes the source of their funds for the down payment.
One reason for their fall from favor is that there are more and more second
mortgage lenders now that will lend at a high loan to value. In addition, sellers
often prefer to accept offers from buyers who have already sold their property.
Broker - (answers)Broker has several meanings in different situations. Most
Realtors are "agents" who work under a "broker." Some agents are brokers as well,
either working form themselves or under another broker. In the mortgage industry,
CALIFORNIA REAL ESTATE SALESPERSON EXAM
2024 ACTUAL EXAM QUESTIONS WITH DETAILED
VERIFIED ANSWERS /ALREADY GRADED A+
Acceleration Clause - (answers)The clause in a mortgage or deed of trust that can
be enforced to make the entire debt due immediately if the borrower defaults on an
installment payment or other covenant. (Pay now)
Adjustable Rate Mortgage (ARM) - (answers)a mortgage with an interest rate that
increases or decreases during the life of the loan
adjustment date - (answers)The date the interest rate changes on an adjustable-rate
mortgage.
Amortization - (answers)A method for computing equal periodic payments for an
installment loan. (Paid within certain range of time)
amortization schedule - (answers)A table showing precisely how a loan will be
repaid. It gives the required payment on each payment date and a breakdown of the
payment, showing how much is interest and how much is repayment of principal.
Annual Percentage Rate (APR) - (answers)Cost of borrowing money on an annual
basis; takes into account the interest rate and other related fees on a loan.
Application - (answers)The form used to apply for a mortgage loan, containing
information about a borrower'a income, savings, assets, debts, and more.
, 2
Appraisal - (answers)A written justification of the price paid for a property,
primarily based on an analysis of comparable sales of similar homes nearby.
appraised value - (answers)An opinion of a property's fair market value, based on
an appraiser's knowledge, experience, and analysis of the property. Since an
appraisal is based primarily on comparable sales, and the most recent sale is the
one on the property in question, the appraisal usually comes out at the purchase
price.
Appraiser - (answers)An individual qualified by education, training, and
experience to estimate the value of real property and personal property. Although
some appraisers work directly for mortgage lenders, most are independent.
Appreciation - (answers)increase in value over time
Assessed Value (AV) - (answers)The valuation placed on property by a public tax
assessor for purposes of taxation.
Assessment - (answers)The placing of a value on property for the purpose of
taxation.
Assessor - (answers)A public official who establishes the value of a property for
taxation purposes.
Asset - (answers)item of value owned by a firm or an individual
, 3
Assignment - (answers)When ownership of your mortgage is transferred from one
company or individual to another, it is called an assignment.
Assumable Mortgage - (answers)A mortgage that can be assumed by the buyer
when a home is sold. Usually, the borrower must "qualify" in order to assume the
loan.
assumption - (answers)The term applied when a buyer assumes the seller's
mortgage.
Balloon Mortgage - (answers)A mortgage loan that requires the remaining
principal balance be paid at a specific point in time. For example, a loan may be
amortized as if it would be paid over a thirty year period, but requires that at the
end of the tenth year the entire remaining balance must be paid.
Balloon Payment - (answers)The final lump sum payment that is due at the
termination of a balloon mortgage.
bankruptcy - (answers)By filing in federal bankruptcy court, an individual or
individuals can restructure or relieve themselves of debts and liabilities.
Bankruptcies are of various types, but the most common for an individual seem to
be a "Chapter 7 No Asset" bankruptcy which relieves the borrower of most types
of debts. A borrower cannot usually qualify for an "A" paper loan for a period of
two years after the bankruptcy has been discharged and requires the re-
establishment of an ability to repay debt.
Bill of sale - (answers)A written document that transfers title to personal property.
, 4
biweekly mortgage - (answers)A mortgage in which you make payments every
two weeks instead of once a month. The basic result is that instead of making
twelve monthly payments during the year, you make thirteen. The extra payment
reduces the principal, substantially reducing the time it takes to pay off a thirty
year mortgage. Note: there are independent companies that encourage you to set up
bi-weekly payment schedules with them on your thirty year mortgage. They charge
a set-up fee and a transfer fee for every payment. Your funds are deposited into a
trust account from which your monthly payment is then made, and the excess
funds then remain in the trust account until enough has accrued to make the
additional payment which will then be paid to reduce your principle. You could
save money by doing the same thing yourself, plus you have to have faith that once
you transfer money to them that they will actually transfer your funds to your
lender.
bond market - (answers)Usually refers to the daily buying and selling of thirty
year treasury bonds. Lenders follow this market intensely because as the yields of
bonds go up and down, fixed rate mortgages do approximately the same thing. The
same factors that affect the Treasury Bond market also affect mortgage rates at the
same time. That is why rates change daily, and in a volatile market can and do
change during the day as well.
Bridge loan - (answers)Not used much anymore, bridge loans are obtained by
those who have not yet sold their previous property, but must close on a purchase
property. The bridge loan becomes the source of their funds for the down payment.
One reason for their fall from favor is that there are more and more second
mortgage lenders now that will lend at a high loan to value. In addition, sellers
often prefer to accept offers from buyers who have already sold their property.
Broker - (answers)Broker has several meanings in different situations. Most
Realtors are "agents" who work under a "broker." Some agents are brokers as well,
either working form themselves or under another broker. In the mortgage industry,
