REAL ESTATE PRINCIPLES EXAM SCRIPT 2025/2026
QUESTIONS WITH ANSWERS RATED A+
✔✔A grant deed: - ✔✔Warrants that the property has not been previously conveyed by
the grantor
✔✔An income property was appraised for $1,000 based on a 6% capitalization rate. If
an investor used an 8% capitalization rate, the value of the property would be: -
✔✔$75,000
✔✔Once an abstract of judgment is recorded it remains a lien on all real property for: -
✔✔Ten Years
✔✔If a note in the amount of $22,250 specifies monthly payments over a period of 30
years at 6.6% interest per annum, what is the first months interest payment? -
✔✔$122.38
✔✔"Duress" is a term, which is most closely associated to matters concerning: -
✔✔Contracts
✔✔The California State agency that governs the issuance of liquor licenses is the: -
✔✔State Franchise Tax board
✔✔The gross multiplier method of appraisal would be of little value when appraising: -
✔✔Public Building
✔✔Blank, special, restrictive, and qualified are all terms used to specify types of: -
✔✔Endorsements
✔✔The phrase in a loan contract that specifies all due and payable upon the happening
of a certain event would be classified as: - ✔✔An acceleration clause
✔✔When a property is sold during a tight money market and the existing loan contains
an alienation clause, which of the following most likely to occur? - ✔✔Buyer will secure
new financing
✔✔The governments control over land use, planning, and zoning are an important
example of: - ✔✔Police Power
✔✔A corporation is prohibited from holding title to real property in California with any
one as a joint tenant because: - ✔✔Of its perpetual existence
, ✔✔Charles died interstate and left a $60,000 estate but no heirs, his estate would: -
✔✔Revert to the state
✔✔When land gradually builds up as a result of the action of water, it is known as: -
✔✔Accretion
✔✔A first trust deed can usually be distinguished from a second trust deed by the: -
✔✔Time and date of recordation
✔✔A lender agrees to make a loan on a large commercial complex provided the
borrower gives the lender a 2% interest in the ownership. This type of loan would be
known as a: - ✔✔Participation-Loan
✔✔When an appraiser analyzes the rent while using the income approach he should
base his appraisal on: - ✔✔Durability, quality and quantity.
✔✔What is the most comprehensive and complete appraisal report? - ✔✔Narrative
✔✔The term "Realtor" is a trade name and only persons who are members of ______
have the right to use the term? - ✔✔National Association of Realtors
✔✔The phrase in a loan contract that specifies "all due and payable upon the
happening of a certain event would be classified as: - ✔✔An acceleration clause
✔✔What is considered a quiet title action? - ✔✔Court action to remove a cloud on the
title
✔✔A corporation is prohibited from holding title to real property in California with any
one as a joint tenant bc: - ✔✔Perpetual existence
✔✔A trust deed and note on a conventional loan is held by: - ✔✔The Lending Institution
✔✔When a Cal-Vet wishes to purchase a home and use his or her California veterans
benefits he or she would make an application to the: - ✔✔Department of Veterans
Affairs
✔✔A real estate subdivider who resides in Hawaii is required to comply with various
laws if he wants to offer his property located in Hawaii for sale in California. The law that
he would be most concerned with would be the: - ✔✔California Real Estate Law
✔✔FHA has established certain MPR's that apply to loans that they insure. MPR is an
abbreviation for: - ✔✔Minimum Property Requirements
QUESTIONS WITH ANSWERS RATED A+
✔✔A grant deed: - ✔✔Warrants that the property has not been previously conveyed by
the grantor
✔✔An income property was appraised for $1,000 based on a 6% capitalization rate. If
an investor used an 8% capitalization rate, the value of the property would be: -
✔✔$75,000
✔✔Once an abstract of judgment is recorded it remains a lien on all real property for: -
✔✔Ten Years
✔✔If a note in the amount of $22,250 specifies monthly payments over a period of 30
years at 6.6% interest per annum, what is the first months interest payment? -
✔✔$122.38
✔✔"Duress" is a term, which is most closely associated to matters concerning: -
✔✔Contracts
✔✔The California State agency that governs the issuance of liquor licenses is the: -
✔✔State Franchise Tax board
✔✔The gross multiplier method of appraisal would be of little value when appraising: -
✔✔Public Building
✔✔Blank, special, restrictive, and qualified are all terms used to specify types of: -
✔✔Endorsements
✔✔The phrase in a loan contract that specifies all due and payable upon the happening
of a certain event would be classified as: - ✔✔An acceleration clause
✔✔When a property is sold during a tight money market and the existing loan contains
an alienation clause, which of the following most likely to occur? - ✔✔Buyer will secure
new financing
✔✔The governments control over land use, planning, and zoning are an important
example of: - ✔✔Police Power
✔✔A corporation is prohibited from holding title to real property in California with any
one as a joint tenant because: - ✔✔Of its perpetual existence
, ✔✔Charles died interstate and left a $60,000 estate but no heirs, his estate would: -
✔✔Revert to the state
✔✔When land gradually builds up as a result of the action of water, it is known as: -
✔✔Accretion
✔✔A first trust deed can usually be distinguished from a second trust deed by the: -
✔✔Time and date of recordation
✔✔A lender agrees to make a loan on a large commercial complex provided the
borrower gives the lender a 2% interest in the ownership. This type of loan would be
known as a: - ✔✔Participation-Loan
✔✔When an appraiser analyzes the rent while using the income approach he should
base his appraisal on: - ✔✔Durability, quality and quantity.
✔✔What is the most comprehensive and complete appraisal report? - ✔✔Narrative
✔✔The term "Realtor" is a trade name and only persons who are members of ______
have the right to use the term? - ✔✔National Association of Realtors
✔✔The phrase in a loan contract that specifies "all due and payable upon the
happening of a certain event would be classified as: - ✔✔An acceleration clause
✔✔What is considered a quiet title action? - ✔✔Court action to remove a cloud on the
title
✔✔A corporation is prohibited from holding title to real property in California with any
one as a joint tenant bc: - ✔✔Perpetual existence
✔✔A trust deed and note on a conventional loan is held by: - ✔✔The Lending Institution
✔✔When a Cal-Vet wishes to purchase a home and use his or her California veterans
benefits he or she would make an application to the: - ✔✔Department of Veterans
Affairs
✔✔A real estate subdivider who resides in Hawaii is required to comply with various
laws if he wants to offer his property located in Hawaii for sale in California. The law that
he would be most concerned with would be the: - ✔✔California Real Estate Law
✔✔FHA has established certain MPR's that apply to loans that they insure. MPR is an
abbreviation for: - ✔✔Minimum Property Requirements
