Real Estate U - Real Estate Principles - Final Exam
Which of the following is an element of a valid contract...?
- A lawful objective - Consideration - Mutual assent
Residential property includes how many dwelling units...?
1-4 dwellings
This is a section of the U.S. Internal Revenue Service Code that allows investors to defer capital gains taxes on any exchange of like-kind properties for business or investment purposes...?
1031 exchange
A person appointed by a court to administer the estate of a one who has died intestate is known as a...?
administrator
A real estate sales contract is an example of a...?
bilateral contract
The rights, or interests, that an individual has in a particular piece of property are referred to as...?
bundle of rights
The ability to sue for the enforcement of the contract is known as...?
enforceability
This is an item of personal property that has been attached to real property...?
fixture
A tax deed is an example of a...?
involuntary deed
The commission owed to the broker in a transaction is determined in this document...?
listing agreement
Title to real property held in the name of only one person is known as...?
ownership in severalty
That which is immovable, including land, things affixed to land, and appurtenances is known as...?
real property
An estate for years is NOT automatically renewed...?
true
The division of an area into zones, as to restrict the number and types of buildings and their uses is known as...?
zoning
Continuing education is required for all real estate agents in California every...?
4 years
1 acre is equal to how many square feet...?
43560
1 mile is equal to how many linear feet...?
5280
This Act prohibited discrimination on the basis of race, sex, color, national origin, or gender in any housing program receiving federal money...?
civil rights act of 1964
A leasehold estate for any specific period of time is known as...?
estate for years
An estate which vests after the termination of the prior estate is known as...?
estate in remainder
Property or estate ownership that reverts back to the grantor after a temporary ownership period is known as...?
estate in reversion
This is an appraisal phrase meaning that use which, at the time of an appraisal, is most likely to produce the greatest net return to the land and/or buildings over a given period of time...?
highest and best use
This principle affirms that value is created by anticipated benefits to be derived in the future...?
principle of conformity
The official proving of a will is also known as...?
probate
A deed to relinquish any interest in property with the grantor without interference of possession is known as a...?
quitclaim deed
Regular insurance coverage does NOT cover unrecorded claims...? (t/f)
true
Zoning is an example of police power...? (t/f)
true
Which of the following is an approach used by appraisers to value property...?
Cost Approach Income Approach Sales Comparison Approach
Which of the following is considered a formal description of property...?
Government Survey Metes and Bounds Lot and Block
The right of any political body to enact laws and enforce them, for the order, safety, health, morals and general welfare of the public is known as...?
Police Power
This is known as the use of prejudice to instill fear, or panic (also known as panic selling), in order to motivate individuals in a particular area or neighborhood to sell or dispose of their property because of the entrance, or potential entry, of a protected class...?
blockbusting
This federal law prohibited all discrimination on the basis of race only...?
civil rights act of 1866
Lots that touch at any point are known as...?
contiguous
The reversion of the State of property in event the owner thereof abandons it or dies, without leaving a will and has no distributees to whom the property may pass by lawful descent is known as...?
escheat
The deposit of instruments and/or funds with instructions with a third neutral party to carry out the provisions of an agreement or contract is known as...?
escrow
The degree, quantity, nature, and extent of interest that a person has in real and personal property is known as...?
estate
Leases under one year MUST be in writing...?
false
An inheritable estate in land providing the greatest interest of any form of title is known as...?
fee simple absolute
An estate that will end automatically when the stated event or condition occurs is known as...?
fee simple determinable
Absolute ownership of real property is also known as a...?
fee simple estate
Absolute ownership of real property is also known as...?
fee simple estate
This refers to "under-improved" properties surrounded by properties of greater value...?
law of progression
This refers to when a property is "over improved" relative to other surrounding properties in the area that are of lesser value...?
law of regression
This is a contract whereby, for a consideration, usually termed rent, one who is entitled to the possession of real property transfers such rights to another for life, for a term of years, or at will...?
lease
A non-freehold estate of limited duration, providing the right of possession and control but not title is referred to as a...?
leasehold estate
A person to whom property is rented under a lease is referred to as the...?
lessee
One who rents property to another under a lease is referred to as the...?
lessor
The rights of a land owner or land occupier to use flowing water (such as a river) that is adjacent to the land are known as...?
riparian rights
The marketplace whereby the loans that were originated in the primary mortgage market are bought and sold is known as the...?
secondary mortgage market
A legal charge against real estate by a public authority to pay for the cost of public improvements such as street lights, sidewalks, and street improvements is known as a...?
special assessment
An action to compel performance of an agreement is known as...?
specific performance
The deed given to a purchaser at a public sale of land held for nonpayment of taxes is known as a...?
tax deed
The ability to give satisfaction and/or excite desire for possession is known as...?
utility
The authorization to improve or develop a particular property in a manner not authorized by zoning is known as...?
variance
Which of the following is considered an assessment event...?
-A maximum increase of 2% of the dollar amount of taxes paid -Value of improvements -At the purchase or sale of a property
The marketplace whereby loans are originated is referred to as the...?
primary mortgage market
This principle affirms that value is created by anticipated benefits to be derived in the future...?
principle of anticipation
A condominium is considered real property...?
true
Periodic tenancy is also referred to as an estate from year to year...?
true
The indemnity recoverable by a person who has sustained an injury, either in his or her person, property, or relative rights, through the act or default of another is known as...?
damages
A freehold estate created for the duration of the life or lives of certain named persons is known as a...?
life estate
A state law requiring certain contracts to be in writing and signed before they will be enforceable at law is known as the...?
statute of frauds
This is known as the refusal to lend money within a specific area...?
redlining
A term used in describing the boundary lines of land, seeing forth all the boundary lines together with their terminal points and angles is known as...?
metes and bounds
This is a contract whereby a mortgagor agrees to use real property as security for the repayment of debt...?
mortgage
A broker who arranges a mortgage loan between a lender and a borrower for a fee is referred to as a...?
mortgage broker
This occurs when using racial, ethnic, or religious criteria in suggesting, recommending, and/or influencing individuals regarding locations for the purchase or rental of a single family residence or rental dwelling...?
steering
An ownership of realty by two or more persons, each of whom has an undivided interest, without the right of survivorship is known as...?
tenancy in common
A common-law doctrine that makes an employer liable for the actions of an employee when the actions take place within the scope of employment is known as...?
respondeat superior
A written instrument which when properly executed and delivered conveys title to real property from one person (grantor) to another (grantee) is known as a...?
deed
That duty owed by an agent to act in the highest good faith toward the principal and not to obtain any advantage over the latter by the slightest misrepresentation, concealment, duress or pressure, is known as...?
fiduciary duty
To mingle or mix, for example, a client's funds in the broker's personal or general account is known as...?
commingling
This includes five or more units wherein the owner has a fee simple interest in the air space, or four walls in which they live or occupy, plus common areas which are owned as a tenancy in common...?
condominium
Any disturbance of the tenant's possession of the leased premises by the landlord whereby the premises are rendered unfit or unsuitable for the purpose for which they were leased is known as...?
constructive eviction
A loan whereby there is no government participation or cooperation is known as a...?
conventional loan
The supply of willing and able buyers in the marketplace or lack thereof is referred to as..?
demand
A right of the government to acquire property for necessary public use by condemnation is known as...?
eminent domain
A legal proceeding by a lessor landlord to recover possession of real property is known as...?
eviction
A person or institution appointed by a testator to carry out the terms of their will is known as a...?
executor
The linear distance along which a building faces a lot line or a roadway is known as...?
frontage
A property manager is an example of a...?
general agent
Which of the following is the most widely used deed in California...?
grant deed
A person who receives title to real property by deed is known as the...?
grantee
A person who conveys title to real property by deed is known as the...?
grantor
A person who acts for another but who sells final results and whose methods of achieving those results are not subject to the control of another is referred to as a...?
independent contractor
This is a writ or order issued under the seal of a court to restrain one or more parties to a suit or proceeding from doing an act which is deemed to be inequitable or unjust in regard to the rights of some other party or parties in the suit or proceeding...?
injunction
Undivided ownership of a property interest by two or more persons each of whom has a right to an equal share in the interest and a right of survivorship is known as...?
joint tenancy
When two or more natural persons own property that comes with a special benefit called the right of survivorship, it is referred to as a...?
joint tenancy
A lease that automatically renews for successive periods unless terminated by either party is also known as...?
periodic tenancy
All property that is not considered to be real property is known as...?
personal property
The authority to act for another person in specified or all legal or financial matters is known as...?
power of attorney
Which category of topics accounts for the most number of questions on the State exam...?
practice of real estate and disclosures
There are two primary types of estates, freehold estate and leasehold estates...?
true
Continuing to occupy property after lawful authorization has expired is known as...?
estate at sufferance
Which of the following is an example of a leasehold estate...?
estate at will periodic tenancy estate for years
A leasehold estate that may be terminated at the desire of either party is known as...?
estate at will
This is an item of removable personal property that a tenant attached to leased land for business purposes...?
trade fixture
A legal obligation of one party to a victim as a result of a civil wrong or injury is referred to as...?
tort liability