California Real Estate Principles
Midterm Exam
Course Introduction
California Real Estate Principles provides a comprehensive introduction to the fundamental concepts, legal aspects, and practices of real estate in California. This course covers key topics such as property ownership, land use controls, agency relationships, real estate contracts, financing, valuation, and escrow procedures. Emphasis is placed on California-specific laws and regulations, including the requirements for licensure and ethical standards. By the end of the course, students will have a solid foundation to pursue further studies in real estate and to prepare for the California real estate licensing exam.
Recommended Textbook
California Real Estate Principles 9th Edition by
Dennis J. McKenzie
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15 Chapters
624 Verified Questions
624 Flashcards
Source URL: https://quizplus.com/study-set/3880
Page 2
Chapter 1: Introduction to Real Estate
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45 Verified Questions
45 Flashcards
Source URL: https://quizplus.com/quiz/77312
Sample Questions
Q1) Which of the following is classified as personal property?
A) seasonal crops
B) fixtures
C) land
D) appurtenant easements
Answer: A
Q2) Which of the following is considered personal property?
A) a peach orchard
B) stock in a mutual water company
C) silver removed from the ground and sent to the smelter
D) easement
Answer: C
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3
Chapter 2: Part I: Legal Description, Method of Acquiring
Title , and Deeds
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69 Verified Questions
69 Flashcards
Source URL: https://quizplus.com/quiz/77311
Sample Questions
Q1) Before a deed is recorded, it must be acknowledged by:
A) the grantee
B) a notary public
C) the escrow officer
D) the grantor
Answer: D
Q2) A sequential list of owners for a parcel of real estate is called:
A) constructive notice
B) chain of title
C) notarized record
D) deed of reconveyance
Answer: B
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Chapter 3: Encumbrances, Liens, and Homesteads
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40 Verified Questions
40 Flashcards
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Sample Questions
Q1) The major difference between obtaining an easement by prescription or title by adverse possession would involve the:
A) time of continuous use
B) permission of the owner
C) claim of right/color of title
D) payment of property taxes
Answer: D
Q2) The highest form of ownership a person can have in a piece of property is:
A) fee simple absolute
B) fee simple qualified
C) life estate
D) testate estate
Answer: A
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Page 5
Chapter 4: Real Estate Agency
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40 Verified Questions
40 Flashcards
Source URL: https://quizplus.com/quiz/77309
Sample Questions
Q1) An owner lists a property with Broker A. Prospective buyer is found by other Broker B. Broker B is a:
A) dual agent
B) general agent
C) cooperating agent
D) power of agent
Q2) Which of the following best describes the requirements to acquire title by adverse possession?
A) hostile, continuous use, pay mortgage, open and notorious
B) color of title, continuous use, pay property taxes, hostile
C) permission, color of title, pay property taxes, open and notorious
D) claim of right, hostile, secret use, pay mortgage and property tax
Q3) Real estate agencies are created by:
A) special agency.
B) agreement in writing.
C) appointment.
D) none of the above.
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Chapter 5: Real Estate Contracts and Mandated
Disclosures
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40 Verified Questions
40 Flashcards
Source URL: https://quizplus.com/quiz/77308
Sample Questions
Q1) Receiving a commission from both the buyer and seller without full disclosure and approval is called:
A) dual agency
B) single agency
C) divided agency
D) implied agency
Q2) Real estate agencies can be created several ways. The most common method is:
A) agreement
B) estoppel
C) ratification
D) implication
Q3) A broker receives a deposit from a buyer with no instructions to hold the check uncashed pending the seller's acceptance of the offer. After the offer is accepted, the broker decides to put the check in a safe in the office for security purposes until the broker can get to the bank in two weeks. The broker is:
A) guilty of conversion
B) innocent of any wrongdoing
C) guilty of commingling
D) required to place the deposit into a trust fund
Page 7
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Chapter 6: Practical Real Estate Mathematics
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40 Verified Questions
40 Flashcards
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Sample Questions
Q1) If an investor purchases a mountain ski cabin for $120,000 cash and the monthly net rental income is $600, what is the rate of return on the investment?
A) 11%
B) 15%
C) 6%
D) 4.5%
Q2) Real estate broker José, lists a property for $300,000. A six percent commission is agreed upon. Another agent brings an offer for $280,000. The seller then asks Jose to reduce his side if the commission to two and a half percent. José agrees. What is the difference between the reduction in commission and the original commission that Jose will receive?
A) $18,000
B) $2,000
C) $7,000
D) $9,000
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Chapter 7: Introduction to Real Estate Finance
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34 Verified Questions
34 Flashcards
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Sample Questions
Q1) A type of financing instrument in which the owner (vendor) retains the legal title until the buyer (vendee) fulfills the terms of the purchase contract:
A) lease contract
B) installment sales contract
C) wraparound contract
D) junior lien contract
Q2) If a broker negotiated a third trust deed for $12,000 payable in five semi-annual installments, the maximum rate of commission allowed by the Mortgage Loan Brokerage Law would be:
A) 15%
B) 10%
C) 5%
D) no rate is established for third trust deeds
Q3) A copy of a Mortgage Loan Disclosure Statement prepared by the broker and signed by the borrower must be retained by the broker for at least:
A) five years
B) four years
C) three years
D) two years
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Page 9
Chapter 8: Part I: Real Estate Lenders
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40 Verified Questions
40 Flashcards
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Sample Questions
Q1) The VA will guarantee loans on the following properties:
A) mobile homes
B) townhomes
C) both a and b
D) none of the above
Q2) Which of the following are major types of California lenders:
A) Commercial banks
B) Savings banks.
C) Life insurance companies
D) all of the above.
Q3) Which organization requires a CRV appraisal before approving a loan?
A) California Department of Veteran's Affairs
B) Federal Housing Administration
C) U. S. Department of Veterans Affairs
D) Federal National Mortgage Association
Q4) Fannie Mae is the:
A) Federal Home Loan Mortgage Corporation
B) Federal National Mortgage Association
C) Government National Mortgage Association
D) Federal Deposit Insurance Corporation
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Chapter 9: Real Estate Appraisal
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40 Verified Questions
40 Flashcards
Source URL: https://quizplus.com/quiz/77304
Sample Questions
Q1) The cost approach would be given the least weight if appraising a:
A) new home
B) new apartment
C) old home
D) special purpose property
Q2) The essentials of value include all of the following, except:
A) age
B) utility
C) scarcity
D) demand
Q3) Which of the following is not an annual operating expense?
A) real property taxes
B) deferred maintenance
C) janitor's wages
D) utility expenses
Q4) All of the following are non-institutional lenders, except:
A) credit union
B) mortgage company
C) life insurance company
D) pension fund
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Chapter 10: The Role of Escrow and Title Insurance Companies
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40 Verified Questions
40 Flashcards
Source URL: https://quizplus.com/quiz/77303
Sample Questions
Q1) Prepaid property taxes would appear as a prorated:
A) credit to buyer
B) debit to buyer
C) debit to seller
D) charge to lender
Q2) Escrow is a process whereby a neutral third party acts on behalf of the:
A) buyer, seller, buyer's agent, and seller's agent
B) title company
C) selling agent and listing agent
D) buyer and seller only
Q3) Who decides what title company to use?
A) The seller
B) The buyer
C) The listing agent
D) This is negotiable between the buyer and the seller
Q4) Which of the following is not exempt from the escrow licensing law?
A) trust companies
B) escrow companies
C) title insurance companies
D) real estate brokers when acting as an agent in the transaction
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Chapter 11: Landlord and Tenant Relations
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40 Verified Questions
40 Flashcards
Source URL: https://quizplus.com/quiz/77302
Sample Questions
Q1) Ms. Estes owned a fee simple estate and leased it to Mr. Eaton for six years. Ms. Estes has:
A) a remainder interest
B) a fee simple estate
C) an estate in joint tenancy
D) a less-than-freehold estate
Q2) A history of title transfers for a particular parcel of land is a/an:
A) preliminary report
B) title insurance policy
C) abstracter index
D) chain of title
Q3) On behalf of the buyer and seller, the escrow officer acts as:
A) an employee
B) an independent contractor
C) an agent
D) a licensee
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Chapter 12: Land-Use Planning, Subdivisions, Fair Housing, and
Other Public Controls
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39 Verified Questions
39 Flashcards
Source URL: https://quizplus.com/quiz/77301
Sample Questions
Q1) If a city planning commission turns down a variance request, the next level of appeal is to the:
A) city engineer
B) city assessor
C) city council
D) courts
Q2) To exercise this power, government must have a public use and pay just compensation:
A) eminent domain
B) police power
C) planning
D) zoning
Q3) State legislation gives cities and counties some control over real property in all of the following matters, except:
A) lien and attachment laws
B) local planning and zoning laws
C) land use regulations
D) rent controls
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Chapter 13: Introduction to Taxation
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39 Verified Questions
39 Flashcards
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Sample Questions
Q1) A frequently used special assessment law is:
A) the Street Improvement Act of 1911
B) the Mello-Roos Community Facilities Act of 1982
C) Proposition 13
D) Proposition 60
Q2) Property owners can appeal the size of their property tax bill to an assessments appeals commission, or in some areas to the:
A) local board of equalization
B) franchise tax board
C) board of supervisors
D) franchise property tax agency
Q3) When a special assessment is made on a piece of property under the Street Improvement Act of 1911:
A) property owner can deduct principal and interest
B) it is based on the front footage of the property
C) it is appraised as per the amount of square footage
D) assessment must be paid within six months
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Chapter 14: Single-Family Homes and Mobile Homes
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39 Verified Questions
39 Flashcards
Source URL: https://quizplus.com/quiz/77299
Sample Questions
Q1) To qualify for the homeowner's exemption on gain for the sale of a personal residence, the homeowner must
A) live in the property for five years
B) live in the property for two consecutive years
C) live in the property for a total of two years during the last five years
D) live in the property for two consecutive years in the last five years
Q2) A footing is what the:
A) floor sets upon
B) foundation sets upon
C) mudsill sets upon
D) heater sets upon
Q3) Before purchasing a house, a person must decide whether to rent or buy. In considering the pros and cons, which would be considered an advantage of owning rather than renting?
A) tax deductions
B) possible appreciation
C) control
D) all of the above
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16
Chapter 15: A Career in Real Estate
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39 Verified Questions
39 Flashcards
Source URL: https://quizplus.com/quiz/77298
Sample Questions
Q1) A real estate broker's license is issued for:
A) 2 years
B) 4 years
C) 6 years
D) life
Q2) A passing score on the real estate salesperson's examination is:
A) 50%
B) 70%
C) 75%
D) 80%
Q3) In a business opportunity sale, the payment for continued patronage is called:
A) bulk sale
B) goodwill
C) blue sky
D) net worth
Q4) The trade name Realtist designates a member of the:
A) National Association of Realtors
B) Consolidated Brokers of America
C) National Association of Real Estate Professionals
D) National Association of Real Estate Brokers
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