Principles of Real Estate Exam Review
Course Introduction
Principles of Real Estate introduces students to the fundamental concepts, vocabulary, and practices of the real estate industry. The course covers topics such as property ownership rights, land use regulations, contracts, agency relationships, property valuation, financing methods, and the legal environment of real estate transactions. Emphasizing both residential and commercial real estate, students explore market analyses, ethical considerations, and the roles of various industry professionals. This foundational knowledge prepares students for advanced study in real estate, related professional exams, and informed participation in property transactions.
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) Real property can be most completely defined as:
A) land, buildings
B) land, fixtures, minerals
C) land, items affixed to land, immovable by law
D) land, affixed to land, appurtenances, immovable by law
Answer: D
Q2) Erick Chinn bought a stack of lumber, which he placed in his backyard. Later he used some of the lumber to build a room addition to his house. He only used a portion of the lumber. The remaining wood is considered:
A) chattel
B) real property
C) personal property
D) both (a) and (c) are correct
Answer: D
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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) Community property is normally defined as any property acquired by a married person or registered domestic person:
A) prior to marriage or registration
B) during marriage or registration
C) by gift
D) by inheritance
Answer: B
Q2) Zoning regulations have the greatest impact on which right?
A) right to encumber
B) right to possess
C) right to use
D) right to exclude
Answer: C
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Page 4
Chapter 3: Encumbrances, Liens, and Homesteads
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40 Verified Questions
40 Flashcards
Source URL: https://quizplus.com/quiz/77310
Sample Questions
Q1) After a proper Notice of Completion has been filed, if a material supplier wishes to file a mechanics' lien, the supplier has how many days in which to do so?
A) 30
B) 45
C) 60
D) 90
Answer: A
Q2) A type of deed that contains an after acquired clause is called a:
A) grant deed
B) quiet deed
C) quitclaim deed
D) gift deed
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) A broker took a listing on an 8-unit apartment house and stated that it showed a 14% yield on the investment. In figuring the yield, the broker unknowingly did not allow for maintenance expenses or a vacancy factor. A buyer purchased the property on the basis of the broker's analysis. Which of the following best describes this particular violation of real estate law?
A) secret profit
B) misrepresentation
C) conversion of numbers
D) false promise
Q2) An easement is valid for
A) ten years
B) three years
C) indefinitely
D) as long as you own the property
Q3) An easement with only a servient tenement:
A) easement in gross
B) easement appurtenant
C) easement egress
D) easement for encumbrance
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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 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
Q2) Real estate agencies can be created several ways. The most common method is:
A) agreement
B) estoppel
C) ratification
D) implication
Q3) Which of the following is not correct?
A) all real estate salespersons must have written employment contracts with their brokers
B) real estate salespersons are able to contract directly in their own name as an agent with the seller
C) the recovery fund may be used to reimburse qualified principals and buyers for damages suffered because of certain inappropriate acts by real estate licensees
D) most real estate agency agreements are between sellers and brokers, not buyers and brokers
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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) Two people purchased a home for $360,000. They added a $30,000 pool and patio complex. Five years later, they sold the home for $500,000. What was their annual average rate of appreciation above their cost?
A) 5.6%
B) 14.4%
C) 7.2%
D) 4.4%
Q2) From the agent's perspective, the strongest listing agreement is the
A) Exclusive Right to Sell Listing
B) Exclusive Agency Listing
C) Open Listing
D) Net Listing
Q3) A person purchased an undeveloped piece of land on a country road. The land contains a quarter of a quarter of a quarter of a section and the front bordering the road is 435 ft. Approximately how deep is the parcel?
A) 2500 ft.
B) 4000 ft.
C) 1000 ft.
D) 835 ft.
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Chapter 7: Introduction to Real Estate Finance
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34 Verified Questions
34 Flashcards
Source URL: https://quizplus.com/quiz/77306
Sample Questions
Q1) A property is usually appraised in what phase of the financing process?
A) application
B) analysis
C) processing
D) closing
Q2) A lender foreclosed on a California home that had a VA loan. The proceeds from the sale were not enough to cover the outstanding loan amount. Which of the following statements are true?
A) The lender takes the loss and cannot do anything about it.
B) The lender can sue the seller who sold the home to the veteran.
C) The lender cannot sue because California is an anti-deficiency judgment state.
D) The lender can sue for a deficiency judgment.
Q3) Under the Real Property Loan Law, the maximum amount a borrower can pay for closing costs, excluding commission, regardless of the size of the loan, is:
A) 5%
B) $390
C) $700
D) $900
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9
Chapter 8: Part I: Real Estate Lenders
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40 Verified Questions
40 Flashcards
Source URL: https://quizplus.com/quiz/77305
Sample Questions
Q1) In a normal sale using both a grant deed and a trust deed (deed of trust), the buyer is the:
A) grantor and trustor
B) grantor and trustee
C) grantee and trustee
D) grantee and trustor
Q2) Who does not lend their money, but instead earns a fee for bringing a borrower and lender together?
A) mortgage banker
B) mortgage broker
C) mortgage consultant
D) mortgage investor
Q3) A person who buys a note in good faith and obtains superior rights:
A) negotiable holder
B) investor holder
C) holder in due course
D) holder in present
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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) In the cost approach, the most difficult item to measure accurately is:
A) square footage
B) accrued depreciation
C) lot size
D) replacement cost
Q2) Accrued depreciation is used in what appraisal technique?
A) Market approach.
B) Cost approach.
C) Income approach.
D) All of the above.
Q3) Private mortgage insurance (PMI):
A) makes the payments if the borrower gets disabled
B) is paid for by the lender
C) pays the loan off if the borrower dies
D) insures the lender for the top portion of the loan
Q4) The acronym OREA stands for:
A) Office of Real Estate Appraisers.
B) Organization of Real Estate Appraisers.
C) Office of Real Estate Alliance.
D) Organization for Real Estate Appraisers.
Page 11
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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) Termination of an escrow can occur:
A) when the escrow officer completes the paperwork
B) when the listing agent says it is okay
C) upon completion of the sale
D) none of the above
Q2) A standard title insurance policy insures against:
A) encroachments
B) incompetent parties on record
C) unrecorded easements
D) mining claims
Q3) Which of the following must be licensed to be an escrow holder?
A) a bank
B) an attorney
C) a trust company
D) an independent corporation
Q4) Extended coverage title policies are usually requested by:
A) institutional lenders
B) private lenders
C) buyers
D) sellers
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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) If you were to lease a mountain cabin from April 5 to April 30 of the same year, the lease would be recognized as an:
A) estate at will
B) estate at sufferance
C) estate from period to period
D) estate for years
Q2) Title insurance does not cover publicly disclosed:
A) easements
B) zoning ordinances
C) deeds of trust
D) deeds
Q3) A professional property manager
A) is required to have a real estate license
B) must reside on the premises
C) is typically a salaried employee of the property owner
D) all charge the same amount for their services
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Chapter 12: Land-Use Planning, Subdivisions,
Housing, and Other Public Controls
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39 Verified Questions
39 Flashcards
Source URL: https://quizplus.com/quiz/77301
Sample Questions
Q1) A public report is good for:
A) Five years
B)_Seven years
C) Two years
D) One year
Q2) Which is not an example of police power:
A) A property zoned single family residential
B) A one story construction limitation
C) Smoke detectors required to be in homes
D) Taking someone's home to build a freeway
Q3) Which would be the best example of a breach of habitability?
A) pool furniture
B) missing hand railings
C) poor lighting
D) inoperable plumbing
Q4) All of the following are common interest developments, except:
A) condominiums
B) PUDs
C) stock cooperatives
D) standard tract homes
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Chapter 13: Introduction to Taxation
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39 Verified Questions
39 Flashcards
Source URL: https://quizplus.com/quiz/77300
Sample Questions
Q1) A and B have purchased agricultural land as joint tenants. A is farming the entire plot, while B is using no part of it. Regarding property taxes:
A) A is liable for all the taxes
B) B is not liable for any taxes
C) B is liable for one-half of the taxes
D) both owners are liable for taxes
Q2) Since the passage of Proposition 13, the county tax assessor is required to value property for real property taxes on the basis of the:
A) fair loan value
B) adjusted book value
C) current market value
D) full cash value
Q3) If a person purchases the right to occupy a unit for a certain designated period each year, this is called:
A) undivided ownership
B) time share ownership
C) cooperative ownership
D) estate for years ownership
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15
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) When a special assessment is made on a piece of property under the Street Improvement Act of 1911:
A) the 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
Q2) Which of the following regarding mobile homes is true?
A) interest rates on loans are usually lower than on conventional homes
B) they usually depreciate more rapidly than a conventional home
C) they cannot be financed using FHA, VA, or Cal-Vet programs
D) in most cities, they are allowed to be placed in any residential area
Q3) The Veteran's Exemption would most likely be taken on a
A) vacation home
B) primary residence
C) rental property
D) time share
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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) Under certain conditions, a corporation can be licensed as a real estate broker. Which of the following is one of those conditions?
A) the corporation must have an office in California
B) declared dividends are used to pay sales commissions
C) chairman of the board must have a real estate salesperson's license
D) a principal officer of the corporation must be licensed as a broker
Q2) What portion of the building do the upright beams, known as studs, rest upon?
A) collar beam
B) floor joist
C) fire stops
D) sole plate
Q3) What is not a factor to consider when to determine investment potential?
A) Risk
B) Liquidity
C) Carpet quality
D) Management requirements
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