Real Estate Principles Summary Quiz

A person or institution appointed by a testator to carry out the terms of their will is known as a

Executor

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

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

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

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

To mingle or mix, for example, a client's funds in the broker's personal or general account is known as

Commingling

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 a

Escrow

Residential property includes how many dwelling units

1-4 dwellings

Which of the following is an element of a valid contract

A lawful objective, Consideration, Mutual Assent

The rights, or interests, that an individual has in a particular piece of property are referred to as

Bundle of Rights

A real estate sales contract is an example of a

Bilateral Contract

A loan whereby there is no government participation or cooperation is known as a

Conventional loan

Which of the following is an approach used by appraisers to value property

Cost Approach, Income Approach, Sales Comparison Approach

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

Absolute ownership of real property is also known as a

Fee Simple Estate

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

This is an item of personal property that has been attached to real property

Fixture

A property manager is an example of a

General Agent

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

A tax deed is an example of a

Involuntary Deed

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

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

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 greatest number of questions on the state exam

Practice of Real Estate and Disclosures

The marketplace whereby loans are originated is referred to as the

Primary Mortgage Market

This principal affirms that value is created by anticipated benefits to be derived in the future

Principal of Anticipation

This principal affirms that value is created when properties tend to be similar in a particular neighborhood

Principal of Conformity

This is an item of removable personal property that a tenant attached to a leased land for business purposes

Trade Fixture

Regular insurance coverage does NOT cover unrecorded claims

True

Zoning is an example of police power

True

This federal law prohibited all discrimination on the basis of race only

Civil Rights Act of 1866

This is known as the refusal to lend money within a specific area

Redlining

The ability to give satisfaction and/or excite desire for possession is known as

Utility

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

Continuing education is required for all real estate agents in California every

4 years

1 acre is equal to how many square feet

43560

A person appointed by a court to administer the estate o a one who has died in testate is known as a

Administrator

The supply of willing and able buyers in the marketplace or lack thereof is referred to as

Demand

The ability to sue for the enforcement of the contract is known as

Enforceability

Which of the following is considered a formal description of property

Government Survey, Metes and Bounds, Lot and Block

Which of the following is the most widely used deed in California

Grant Deed

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

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

One mile is equal to how many linear feet

5280

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

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

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 part or parties in the suit or proceeding

Injunction

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

The commission owed to the broker in a transaction is determined in this document

Listing Agreement

The official proving of a will is known as

Probate

A deed to relinquish any interest in property with the grantor without interference of possession is known as

Quitclaim Deed

That which is immovable, including land, things affixed to land, and appurtenances is known as

Real Property

A state law requiring certain contracts to be in writing and signed before they will be enforceable at law is known as the

Statue of Frauds

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