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