FREE REAL ESTATE AND STUDY GAMES ABOUT CA REAL

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FREE REAL ESTATE AND STUDY GAMES ABOUT CA REAL

ESTATE PRINC EXAM QUESTIONS

Actual Qs and Ans Expert-Verified Explanation

This Exam contains:

-Guarantee passing score -413 Questions and Answers -format set of multiple-choice -Expert-Verified Explanation

Question 1: conformity

Answer:

When land uses are compatible and homes are similar in design and size, the maximum value is realized.

Question 2: front foot

Answer:

The width of a property on the side facing the street.

Question 3: interest

Answer:

The charge for the use of money.

Question 4: conforming loans

Answer:

Have terms and conditions that follow the guidelines set forth by Fannie Mae and Freddie Mac. These loans are called "A" paper loans, or prime loans, and can be made to purchase or refinance homes (one-to-four residential units).

Question 5: standby commitment

Answer:

A letter that promises to deliver a takeout loan in the future.

Question 6: vendor

Answer:

The seller under a contract of sale (land contract).

Question 7: commission

Answer:

A fee for services rendered usually based on a certain percentage of the sales price of a property.

Question 8: manufactured home

Answer:

Home built in a factory after June 15, 1976 that conforms to the federal Manufactured Home Construction and Safety Standards.

Question 9: setback

Answer:

The distance a building must be set back from the street; usually determined by local building code.

Question 10: vacancy factor

Answer:

Loss of income because of a vacant unit is known.

Question 11: fee simple qualified

Answer:

1.An estate in which the holder has a fee simple title, subject to return to the grantor if a specified condition occurs. 2.Also known as fee simple defeasible.

Question 12: lease

Answer:

A contract between an owner and tenant.

Question 13: Housing Financial Discrimination Act of 1977.

Answer:

(1) A law designed primarily to eliminate discrimination in leading practices based upon the character of the neighborhood in which real property in located. (2) Also known as "Holden Act" (See redlining).

Question 14: fictitious trust deed

Answer:

Recorded trust deed containing details that apply to later loan documents.

Question 15: implied warranty of habitability

Answer:

The property will be maintained to meet bare living requirements

Question 16: Real Estate Commissioner

Answer:

Person appointed by the governor to enforce the provisions of the Real Estate Law and the Subdivided Lands Law.

Question 17: water-pressure test

Answer:

Water pressure can be tested by turning on all faucets and flushing all toilets at the same time.

Question 18: Real Estate Recovery Fund

Answer:

A separate account funded through collection of a fixed amount from each license fee.

Question 19: party wall

Answer:

Wall erected on the line between two adjoining properties, which are under different ownership, for the use of both parties.

Question 20: avulsion

Answer:

The sudden washing or tearing of land by the action of water.

Question 21: conventional loan

Answer:

Any loan made by lenders without any governmental guarantees.

Question 22: marketable title

Answer:

Good or clear saleable title reasonably free from risk of litigation over possible defects.

Question 23: employee

Answer:

Someone who is under the control and direction of a broker.

Question 24: capitalism

Answer:

An economic system in which most of the economy's resources are privately owned.

Question 25: title

Answer:

Evidence of land ownership.

Question 26: intestate

Answer:

Dying without leaving a will.

Question 27: renegotiable rate mortgage

Answer:

Loan in which the interest rate is renegotiated periodically.

Question 28: seller financing disclosure statement

Answer:

It gives both the seller and buyer all the information needed to make an informed decision about using seller financing to complete the sale.