California Real Estate Review Questions
Course Introduction
This course provides a comprehensive introduction to the principles, practices, and laws governing real estate in California. Students will explore essential topics such as property ownership, land use controls, agency relationships, contracts, financing, and escrow procedures unique to the state. The course also covers state-specific legal requirements, ethical considerations, and current market trends, preparing students for success in the California real estate industry and for the state licensing examination. Practical case studies and real-world scenarios are included to enhance understanding of the complexities and opportunities within the California real estate market.
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) A deeded easement of right-of-way over the land of another is considered to be:
A) personal property
B) an encroachment
C) an appurtenance
D) a lien
Answer: C
Q2) California became a state in:
A) 1848.
B) 1849.
C) 1850.
D) 1851.
Answer: A
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Chapter 2: Part I: Legal Description, Method of Acquiring
Title , and Deeds
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69 Verified Questions
69 Flashcards
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Sample Questions
Q1) Joint tenancy has certain special characteristics. Which of these is considered to be the most important?
A) the right to will
B) the right of survivorship
C) the right to encumber
D) the right to an undivided interest
Answer: B
Q2) Which of the following is not required for a deed to be valid?
A) signature of grantor
B) granting clause
C) date
D) must be in writing
Answer: C
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Page 4
Chapter 3: Encumbrances, Liens, and Homesteads
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40 Verified Questions
40 Flashcards
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Sample Questions
Q1) For a head of household, under 65 years and not of low income, the homestead exemption is:
A) $25,000
B) $50,000
C) $75,000
D) $100,000
Answer: C
Q2) Private deed restrictions are also known as CC&Rs. These initials stand for:
A) conditions, characteristics, and restrictions
B) covenants, conditions, and reconveyances
C) covenants, conditions, and restrictions
D) conditions, covenants, and reconveyances
Answer: C
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Chapter 4: Real Estate Agency
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40 Verified Questions
40 Flashcards
Source URL: https://quizplus.com/quiz/77309
Sample Questions
Q1) Most real estate agencies are created by:
A) agreement
B) estoppel
C) ratification
D) implication
Q2) A property tax bill is an example of:
A) a voluntary lien
B) a general lien
C) an involuntary lien
D) two of the above are correct
Q3) For a single person, under 65 years and not of low income, the homestead exemption is:
A) $50,000
B) $75,000
C) $100,000
D) $150,000
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Page 6
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) A properly signed exclusive right-to-sell listing agreement is an:
A) implied contract
B) unilateral contract
C) bilateral contract
D) purchase contract
Q2) A broker's commission is most likely earned when the broker:
A) secures acceptance of an offer
B) secures a substantial deposit with an offer
C) communicates acceptance to the offeror
D) communicates offer to seller
Q3) At what minimum age is a civilian single person, who has not had any court or guardianship intervention, legally capable of entering into an enforceable real estate contract?
A) 21 years
B) 18 years
C) 19 years
D) 16 years
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Page 7
Chapter 6: Practical Real Estate Mathematics
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40 Verified Questions
40 Flashcards
Source URL: https://quizplus.com/quiz/77307
Sample Questions
Q1) An owner sold a property for a $100,000 profit. The $100,000 represents a 25% profit on the selling price. What was the selling price?
A) $250,000
B) $300,000
C) $375,000
D) $400,000
Q2) How much interest will there be in the second payment on a fully amortized loan of $240,000 at 8% interest payable $1,800 per month?
A) $1,440.67
B) $1,598.67
C) $1,600
D) $1,723.47
Q3) A person borrowed $18,000 for a period of 180 days using a straight note at 10% interest payable monthly. How much total interest will have been paid in 90 days?
A) $450
B) $900
C) $1,800
D) $3,600
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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) Which of the following words expresses a meaning most completely opposite to the term "alienation"?
A) amortization
B) ad valorem
C) acquisition
D) acceleration
Q2) A negative amortized ARM means:
A) it can cause some problems in later years.
B) the payments may not cover the annual interest.
C) the unpaid interest is added to the principal.
D) all of the above.
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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Chapter 8: Part I: Real Estate Lenders
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40 Verified Questions
40 Flashcards
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Sample Questions
Q1) An enforceable due-on-sale clause is correctly called a/an:
A) acceleration clause
B) alienation clause
C) wraparound clause
D) prepay clause
Q2) In an installment sales contract, title to the property is held by the
A) grantee
B) vendee
C) trustee
D) lender
Q3) A straight note differs from an installment note
A) a straight note contains no interest payment
B) an installment note will contain a reduction in principal
C) a straight note will contain a reduction in principal
D) an installment note is "interest only"
Q4) The ultimate source of all loan funds is:
A) taxes
B) government spending
C) transfer payments
D) savings
10
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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) All of the following are non-institutional lenders, except:
A) credit union
B) mortgage company
C) life insurance company
D) pension fund
Q2) With a gross monthly multiplier of 150, a duplex that rents one unit for $575 per month and the other for $625 should have an estimated value of:
A) $173,000
B) $176,000
C) $180,000
D) $197,000
Q3) All things being equal, the higher the cap rate, the:
A) higher the value
B) lower the return
C) higher the rent
D) lower the value
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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) The most important consideration in an appraisal is the:
A) methods used
B) experience, license, and integrity of the appraiser
C) data gathered
D) inspection of the title records
Q2) Find the value by use of the income approach. (round to the nearest $100)
1) three-unit apartment rents for $1,000 per month per unit
2) vacancy factor of 5%
3) annual operating expenses $10,000
4) capitalization rate of 8%
A) $302,500
B) $288,000
C) $276,500
D) $275,000
Q3) Real estate loan payments and income tax depreciation deductions are not considered operating expenses.
A) It depends if the property is held as an LLC
B) False
C) True
D) Only on state income tax not federal income tax
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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) Under the rental offset rules, which of the following is true? The tenant can do housing code repairs up to:
A) one month's rent, once per year
B) two months' rent, twice per year
C) one month's rent, twice per 12-month period
D) one month's rent, twice per year
Q2) Quite often a retail store owner will contract to pay rent under a percentage lease. This means the rent is based on:
A) net receipts plus a base rental fee
B) gross receipts with an established base rent
C) net receipts with an established maximum
D) a fixed amount for entire lease
Q3) Which title policy do lender's require?
A) CLTA policy
B) standard policy
C) ALTA policy
D) ABRA policy
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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) Discrimination due to race, color, or creed in housing under both federal and state legislation is:
A) illegal
B) unlawful
C) unenforceable
D) all of the above
Q2) All of the following are common interest developments, except:
A) condominiums
B) PUDs
C) stock cooperatives
D) standard tract homes
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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Page 14
Chapter 13: Introduction to Taxation
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39 Verified Questions
39 Flashcards
Source URL: https://quizplus.com/quiz/77300
Sample Questions
Q1) Private property is deeded to the state for delinquent property taxes after:
A) 1 year
B) 2 years
C) 3 years
D) 5 years
Q2) For investors, losses on the operation of rental real estate are what type of losses?
A) passive
B) active
C) actual
D) portfolio
Q3) The amount paid as a commission for the sale of an owner-occupied home can be deducted on the seller's federal income tax as:
A) a long-term capital gain
B) a standard deduction
C) an expense of sale
D) an ordinary loss
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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) The rental operation of a mobile home park is within the jurisdiction of the:
A) Department of Real Estate
B) Department of Housing and Urban Development
C) Department of Veterans Affairs
D) State Department of Housing and Community Development
Q2) Which of the following is true?
A) a person cannot use a homeowner's exemption and a veteran's exemption on the same home
B) real property taxes become a lien on the first Monday in March
C) a 12% penalty is added for delinquent property taxes
D) California has special property tax exemptions for senior citizens 45 years or older
Q3) Regarding the financing of a mobile home purchase:
A) interest rates are usually less favorable than conventional homes
B) mobile homes cannot qualify for FHA financing
C) the pay back years are longer than on conventional homes
D) loans are secured by a note and deed of trust
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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 candidate for the real estate broker's examination must:
A) be 21 years or older
B) have completed 8 college-level real estate courses
C) have at least 4 years' experience as a real estate salesperson
D) be a resident of California
Q2) 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
Q3) After first obtaining a real estate sales license, said licensee must take how many DRE core three-hour approved continuing education courses in order to renew their license?
A) 3
B) 4
C) 5
D) 6
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