CE SHOP CALIFORNIA REAL ESTATE
PRINCIPLES EXAM QUESTIONS WITH
COMPLETE SOLUTIONS
Which occupancy type is eligible for a VA loan - Answer-owner occupied
When a land trust expires, the trustee must either extend the trust term or sell the real
estate and ------ - Answer-give the proceeds to the beneficiary
If buyer signs agency agreement. but natural disaster destroys property? what happens
- Answer-Agreement is terminated by force of law
contractor licensing requirements - Answer-Homeowners are exempt if they are working
without the intention to sell. Work that costs $500+ requires a license
Fiduciary Duty - Answer-That duty owed by an agent to act in the highest good faith
toward the principal and not to obtain any advantage over the latter by the slightest
misrepresentation, concealment, duress or pressure.
prepayment penalty - Answer-a fee charged if you repay a loan before the agreed-upon
time
CMA - Answer-Comparative Market Analysis
Why might a license want to make 2 visits to the property as a part of a listing
presentation - Answer-use info from a tour to prepare the CMA
Depreciable Base - Answer-acquisition cost of an investment property plus any
improvements or renovations
Estate at Sufferance - Answer-Tenant remains on the property, without the landlord's
permission, after the lease has expired
Holdover Tenant - Answer-Tenant who remains in possession of leased property after
the expiration of the lease term.
Estate at will - Answer-An occupation of space, for an indefinite period, which can be
terminated by either the lessor or lessee at any time. Also referred to as tenancy at will.
Net Lease - Answer-A lease requiring the tenant to pay not only rent but also costs
incurred in maintaining the property, including taxes, insurance, utilities, and repairs.
, Gross Lease - Answer-Tenant pays rents, landlord pays all expenses of property; most
common form of residential lease
Percentage Lease - Answer-One that bases the amount of rent on a percentage of the
sales generated in the space.
Sublease - Answer-The transfer of part of the term of a lease, but not the remainder of
it, to someone else.
adoption process steps - Answer-
After a general plan is developed, what is the next step in the adoption process -
Answer-The plan is reviewed at a public hearing by the planning commission
rectangular (government) survey system - Answer-Based on two sets of intersecting
lines: principal meridians (north and sounth) and base lines (east and west).
Voidable Contract - Answer-A contract that may be legally avoided at the option of one
or both of the parties.
Void Contract - Answer-an agreement of no legal effect
executory contract - Answer-A contract that has not yet been fully performed.
Executed Contract - Answer-A contract that has been completely performed by both
parties.
The sub agency relationship - Answer-ex. Kayla is a licensee w ABC realty and lists a
property for seller Devon. Maurice is a salesperson w XYZ realty group and he has a
buyer customer who wants to see property.
CERCLA - Answer-Comprehensive Environmental Response, Compensation, and
Liability Act
CERCLA amendment says that "innocent landowners" aren't responsible for clean-up of
hazardous contamination? - Answer-Superfunds amendments and reauthorization act
two types pf physical deterioration - Answer-curable and incurable
Extended title insurance policy - Answer-Covers defects of an incorrect survey and
boundary encroachments
- Buyer will post likely pay for this policy
-typically purchased for lender
How many feet in an acre? - Answer-43,560 feet
PRINCIPLES EXAM QUESTIONS WITH
COMPLETE SOLUTIONS
Which occupancy type is eligible for a VA loan - Answer-owner occupied
When a land trust expires, the trustee must either extend the trust term or sell the real
estate and ------ - Answer-give the proceeds to the beneficiary
If buyer signs agency agreement. but natural disaster destroys property? what happens
- Answer-Agreement is terminated by force of law
contractor licensing requirements - Answer-Homeowners are exempt if they are working
without the intention to sell. Work that costs $500+ requires a license
Fiduciary Duty - Answer-That duty owed by an agent to act in the highest good faith
toward the principal and not to obtain any advantage over the latter by the slightest
misrepresentation, concealment, duress or pressure.
prepayment penalty - Answer-a fee charged if you repay a loan before the agreed-upon
time
CMA - Answer-Comparative Market Analysis
Why might a license want to make 2 visits to the property as a part of a listing
presentation - Answer-use info from a tour to prepare the CMA
Depreciable Base - Answer-acquisition cost of an investment property plus any
improvements or renovations
Estate at Sufferance - Answer-Tenant remains on the property, without the landlord's
permission, after the lease has expired
Holdover Tenant - Answer-Tenant who remains in possession of leased property after
the expiration of the lease term.
Estate at will - Answer-An occupation of space, for an indefinite period, which can be
terminated by either the lessor or lessee at any time. Also referred to as tenancy at will.
Net Lease - Answer-A lease requiring the tenant to pay not only rent but also costs
incurred in maintaining the property, including taxes, insurance, utilities, and repairs.
, Gross Lease - Answer-Tenant pays rents, landlord pays all expenses of property; most
common form of residential lease
Percentage Lease - Answer-One that bases the amount of rent on a percentage of the
sales generated in the space.
Sublease - Answer-The transfer of part of the term of a lease, but not the remainder of
it, to someone else.
adoption process steps - Answer-
After a general plan is developed, what is the next step in the adoption process -
Answer-The plan is reviewed at a public hearing by the planning commission
rectangular (government) survey system - Answer-Based on two sets of intersecting
lines: principal meridians (north and sounth) and base lines (east and west).
Voidable Contract - Answer-A contract that may be legally avoided at the option of one
or both of the parties.
Void Contract - Answer-an agreement of no legal effect
executory contract - Answer-A contract that has not yet been fully performed.
Executed Contract - Answer-A contract that has been completely performed by both
parties.
The sub agency relationship - Answer-ex. Kayla is a licensee w ABC realty and lists a
property for seller Devon. Maurice is a salesperson w XYZ realty group and he has a
buyer customer who wants to see property.
CERCLA - Answer-Comprehensive Environmental Response, Compensation, and
Liability Act
CERCLA amendment says that "innocent landowners" aren't responsible for clean-up of
hazardous contamination? - Answer-Superfunds amendments and reauthorization act
two types pf physical deterioration - Answer-curable and incurable
Extended title insurance policy - Answer-Covers defects of an incorrect survey and
boundary encroachments
- Buyer will post likely pay for this policy
-typically purchased for lender
How many feet in an acre? - Answer-43,560 feet
