California Real Estate Exam Review Questions with
Verified Detailed Answers
In reference to Property Taxes, "basis" or "cost" is - Answer Purchase price of prop plus cost of
improvements.
How is a condominium unit owned? - Answer Separate interest
How are common interests in a condo owned? - Answer Equally in undivided interest
Subdivided Land Laws refer to - Answer Subdivisions of 5+ parcels on 160 acres, regulated marketing &
financing, and requires disclosures in public report.
How long is a disclosure in public report for Subdivided Land Laws good for? - Answer 5 Years
When does a tax year run? - Answer July 1-June 30
Legally combining smaller, adjacent parcels of land to form a larger parcel. - Answer Plottage or
assemblage
Separating large parcels into smaller lots - Answer Subdividing or separating
Amount or size of land being increased by natural forces such as deposits by wind or water. - Answer
Accretion
Gradual uncovering of land previously covered by water such as when a stream changes course. -
Answer Reliction
The Statute of Limitations in the state of California allows how long to take action? - Answer 4 years
,The process by which the court may seize real or personal property as security for a satisfaction of
monetary judgement. - Answer Attachment
When is a 20-day preliminary notice of a mechanics lien need to be issued? - Answer 20-days after the
claimant (contractor) has first furnished labor, services, equipment, or materials.
What is the purpose of issuing a preliminary notice of a mechanics lien to a claimant? - Answer To
inform concerned parties that the property may be subject to liens arising out of contract.
What is the brokers relationship to the customer? - Answer The broker is the agent to the customer
(customer employs the broker).
What is the agents (salesperson) relationship to the broker? - Answer The salesperson is the agent to
the broker (the broker gives the salesperson authority to act on his/her behalf).
A Home Equity Line of Credit is - Answer An Open Ended Mortgage
An Open Ended Mortgage is - Answer A type of note that permits the borrower to obtain more money at
a future date under the same deed of trust.
Zoning is an example of - Answer Police power
Local jurisdictions have the authority to divide land into districts and impose land use regulations to
promote health, safety, and welfare of the public--this is known as - Answer Zoning
When can restrictions placed on a deed be removed? - Answer Never
What is the only restriction placed on a deed that is considered illegal? - Answer Race restrictions
Is an option contract bilateral or unilateral? - Answer Unilateral
, What does an option contract NOT do? - Answer Create a legal interest in a property
If a buyer has defaulted on on an original land contract which had been recorded, this would result in a
defective title, requiring legal action to clear the title. This is called - Answer a Quiet Title Action.
A promise is also known as a - Answer Covenant
A court action is mandatory to evict a delinquent tenant. This process is called - Answer Unlawful
Detainer
A verbal contract is considered - Answer Valid
California Statute of Frauds require a real estate agreement to be - Answer In writing
What kind of listing agreement offers a listing broker to receive a commission regardless of who is the
"procuring" cause? Is also considered the greatest protection for the agent. - Answer Exclusive right to
sell
What does a deed NOT need to be considered valid? - Answer A date
A valid deed must have 3 components - Answer Be in writing, be signed by the grantor, and delivered to
the grantee
For a deed to be recorded, it must - Answer Be acknowledged (notarized)
A chattel - Answer Is most accurately described as personal property
Which is NOT corporeal property? A fee simple estate, a leasehold, an easement, or a fixture? - Answer
An easement
Verified Detailed Answers
In reference to Property Taxes, "basis" or "cost" is - Answer Purchase price of prop plus cost of
improvements.
How is a condominium unit owned? - Answer Separate interest
How are common interests in a condo owned? - Answer Equally in undivided interest
Subdivided Land Laws refer to - Answer Subdivisions of 5+ parcels on 160 acres, regulated marketing &
financing, and requires disclosures in public report.
How long is a disclosure in public report for Subdivided Land Laws good for? - Answer 5 Years
When does a tax year run? - Answer July 1-June 30
Legally combining smaller, adjacent parcels of land to form a larger parcel. - Answer Plottage or
assemblage
Separating large parcels into smaller lots - Answer Subdividing or separating
Amount or size of land being increased by natural forces such as deposits by wind or water. - Answer
Accretion
Gradual uncovering of land previously covered by water such as when a stream changes course. -
Answer Reliction
The Statute of Limitations in the state of California allows how long to take action? - Answer 4 years
,The process by which the court may seize real or personal property as security for a satisfaction of
monetary judgement. - Answer Attachment
When is a 20-day preliminary notice of a mechanics lien need to be issued? - Answer 20-days after the
claimant (contractor) has first furnished labor, services, equipment, or materials.
What is the purpose of issuing a preliminary notice of a mechanics lien to a claimant? - Answer To
inform concerned parties that the property may be subject to liens arising out of contract.
What is the brokers relationship to the customer? - Answer The broker is the agent to the customer
(customer employs the broker).
What is the agents (salesperson) relationship to the broker? - Answer The salesperson is the agent to
the broker (the broker gives the salesperson authority to act on his/her behalf).
A Home Equity Line of Credit is - Answer An Open Ended Mortgage
An Open Ended Mortgage is - Answer A type of note that permits the borrower to obtain more money at
a future date under the same deed of trust.
Zoning is an example of - Answer Police power
Local jurisdictions have the authority to divide land into districts and impose land use regulations to
promote health, safety, and welfare of the public--this is known as - Answer Zoning
When can restrictions placed on a deed be removed? - Answer Never
What is the only restriction placed on a deed that is considered illegal? - Answer Race restrictions
Is an option contract bilateral or unilateral? - Answer Unilateral
, What does an option contract NOT do? - Answer Create a legal interest in a property
If a buyer has defaulted on on an original land contract which had been recorded, this would result in a
defective title, requiring legal action to clear the title. This is called - Answer a Quiet Title Action.
A promise is also known as a - Answer Covenant
A court action is mandatory to evict a delinquent tenant. This process is called - Answer Unlawful
Detainer
A verbal contract is considered - Answer Valid
California Statute of Frauds require a real estate agreement to be - Answer In writing
What kind of listing agreement offers a listing broker to receive a commission regardless of who is the
"procuring" cause? Is also considered the greatest protection for the agent. - Answer Exclusive right to
sell
What does a deed NOT need to be considered valid? - Answer A date
A valid deed must have 3 components - Answer Be in writing, be signed by the grantor, and delivered to
the grantee
For a deed to be recorded, it must - Answer Be acknowledged (notarized)
A chattel - Answer Is most accurately described as personal property
Which is NOT corporeal property? A fee simple estate, a leasehold, an easement, or a fixture? - Answer
An easement
