California Real Estate Exam 2025 100 QA Flashcards

California Real Estate Exam 2025 (100 Q&A) Flashcards Which state ment accurately describes a real estate mortgage?it is a security instrument that pledges the property as collateral for a loan.Agent Brook is preparing for a listing appointment and has gathered information to prepare a report of recent market data for the seller to review. The report agents reconcile to obtain a reasonable list price for a property based on

current listings, recent sales, and expired would be called:

Comparative Market Analysis What does the covenant of seizin entail? Guarantee of clear title Which o f the following is NOT a function of FNMA (Fannie Mae)?Regulating Mortgage interest rates which two documents are necessary to establish a legally binding mortgage loan?Promissory note and deed of trust.A lot with dimensions of 85'x190' and 55'9"x120' has sold at $2 per square foot. What is the broker's commission at an 8% rate

$3,654.40

What is the the term of the right of a water company to lay and maintain water mains along the rear of a lot?Water Easement Mike and Ike orally agree to a two-year lease. If Ike breaches the agreement, can Mike bring a court action to enforce the lease? Explain why or why not No, because oral leases are unenforceable Tom is constructing a new house valued at $100K. Given that the average property value of his surrounding neighbors is $225K which principle suggests that Tom will experience a positive effect on his property value?Principle of Progression If a buyer defaults on a sal contract after providing $10,000 as a earnest money for $200,000 property, what can the seller do with the $10,000?Keep the entire amount as compensation.The city of Brownwoood plans to build a new water treatment facility but the land that is required is privately

owned. Eminent domain allows the city to:

Take possession of the land against the owners wishes, yet the owner must be compensated When the appraised value of a property is given, its based

on:

Comparable Sales In which type of financing can negative amortization occur?Adjustable-rate mortgage Mr. Brown grants his neighbor, Mr White, a written servitude to cross his property, which is properly recorded.Later, Mr. Brown sells the property to Mr. Green without disclosing the existence of the servitude. What happens to the servitude?The servitude remains valid and continues to be enforced against Mr. Green What does the term "merchantable title" or "marketable title" refer to ?A title free from defects and legal encumbrances

Which of the following best describes the economic characteristics of land?Demand, Utility, Scarcity, Transferability, Situs.A landlord selling his property collected June rent from five

tenants: two at $345 and three at $425. What is the total

rent collected?

$1,965

If a landlord receives rent at the start of the month and sells the property ten days later, how should the rent be prorated at settlement?The rent is divided based on the number of days owned by the seller and the buyer.Tom and Jerry enter into a contract where Tom agrees to build a house and sell it to Jerry in 120 days. Jerry agrees to pay Tom's price within 60 days of completion. What type of contract is this before the house is completed ?Executory Contract If your Broker sells a triangular parcel of land for $750 an acre, and your commission rate is 8%, what will be your commission if the land has a base length of 1,200 feet and a hight of 700 feet?

Formula: (1/2)Base LengthHight=(1/2)1,200ft700ft =

420,000=43,560-420,000/43,560=9.6418733750=7,2318%

At what point does legal title to real property transfer from the seller to the buyer?Closing or Settlement How are the numbers typically assigned on a range?From west to East How do you determine the property taxes for a propertyMultiply the assessed Value by the Tax Rate V What is the primary characteristic of a variable rate mortgage?Interest rate fluctuates based on market conditions The Civil Rights Act of 1866 prohibits:Racial discrimination in the sales or leas of residential or commercial property.what is the highest form of land ownership which includes the full and complete bundle of property rights?Fee Simple Absolute Bob Jones, whole lacks a real estate license, hires Sally's salesperson to sell his property. during Sally's absence, Bob shows the property, provides the price quotation, and accepts deposits. What are the implications of Bob's actions?Bobs actions are illegal.The Beautiful town of Big Bear is experiencing a fast influx of new residents but not many houses are buying built.What will this do to the price of the existing homes in the area?The price will increase what is a true statement regarding the record of deed?Recording a deed establishes ownership rights Homeowner Paul is selling his home without a real estate agent. he placed an ad stating " Owner Financing 3% down payment" is Paul's ad in violation of the truth in Lending Act?No, Property owners are not regulated by TRIL advertising requirements.Mar is not able to make his entire mortgage payment on time each month and has fallen behind on payments.because of his failure to pay, his lender, ABC Homes Loans, sent him a notice that they are calling for the remaining mortgage balance to be paid in full in one lump

sum immediately. this is an example of.Acceleration Clause What is the general purpose for cities to require building permits To require a minimum level of construction standard.In real estate, what is the closes meaning to the term "quieting a title" Clearing any liens or encumbrances on a property

If a right is not asserted within a reasonable timeframe what consequence might a court determine?Abandonment Which statement indicates that any verbal discussion made prior to a written contract are invalidated and cannot be considered ?Parol Evidence Rule Jon's Tire Store is being built across the street from Big Bob's Tires. What appraisal principle describes this situation?Competition on a 90'x90' lot building setback of 30' from the front, 10' from the side, and 20' from the rear, what is the net building area in square feet.2,800sqft When an easement allows the use of a neighboring property which automatically transfers upon the sale of either dominant or servient property, it is called what type of easement ?Easement Appurtenant.Which of the following formulas is used to determine value through the income approach in real estate?Value = Gross Rent Multiplier * Monthly Rent Surface rights, air rights, and subsurface rights can be sold by a property owner while still retaining the property itself.

These rights are known as:

Severble Rights