CA Real Estate Principles Final 2023

police power

A city or county's master plan is an example of government land-use controls where the authority is derived from the government's

mutual consent

A contract is NOT created until offer, acceptance, and communication of acceptance have taken place and the parties have arrived at

executory.

A contract that has NOT been fully performed by one or both parties is referred to as

a rejection

A counteroffer is legally considered

a grant deed

A deed that conveys after-acquired title and contains implied warranties is

a quitclaim deed

A deed that makes no express or implied warranties that the grantor owns any interest in a property is

the county clerk

A fictitious business name statement must be filed with

five years

A fictitious business name statement must be renewed every

by implication of law

A gas company that does not own adjacent land has a right-of-way over an owner's land. Such an interest is known as an easement

a net lease

A lease in which a tenant pays a base rent plus some expenses is called

an encumbrance

A lien is an example of

an exclusive agency

A listing agreement in which the owner retains the right to sell the property without paying a commission to the listing agent is known as

finding a ready, willing, and able buyer

A listing agreement is an employment contract that appoints a broker as an owner's agent for the purpose of

License

A man and a woman have two adjoining parcels of land. The man gives the woman a written, revocable, nonexclusive right to cross over his land as a short cut to his rear yard. What is this right called?

Contribution

A man wants to add a swimming pool and spa to his single-family home. He asked an appraiser to determine whether the new improvements would add value to his home. The appraiser would rely on which principle?

two years

A prepaid rental listing service (PRLS) license is valid for

give their consent

A real estate broker who acts as a dual agent and represents both the buyer and the seller in the same transaction must make sure that both parties

specific performance

A remedy for a breach of contract is to sue to fulfill the terms of the contract, which is called

640 acres

A section contains

gross income multiplier

A simplified alternative to capitalization of net income that does not take into account vacancies, bad debts, or expenses is called

dedication

A transfer of real property from a private individual to the state for public use is called

a holographic will

A will that is in the testator's own handwriting is called

in writing

According to the statute of frauds, a lease for more than one year must be

in all residential transactions involving one to four dwelling units.

Agency disclosure law requires specified agency disclosures

landlocked property

An easement by necessity is often created by the courts to prevent

5 years

An easement by prescription terminates after nonuse for

prescription

An easement that is acquired by a use that is hostile to the interests of the owner is an easement by

stock in a mutual water company.

An example of an appurtenance that "runs with" or is transferred with the land is

a notice of nonresponsibility.

An owner of property can protect against a mechanic's lien for unauthorized work by filing

reinstatement

Before a foreclosure sale takes place, the default can be cured and the borrower can exit the foreclosure process by paying all delinquencies and costs in a process known as

an operable smoke detector.

California law requires that every single-family home that is sold has

factors outside the property

Economic obsolescence is a type of depreciation that results from

guaranteed

For VA loans, a portion of the principal is

the Closing Disclosure form

For a federally related residential mortgage loan, the lender must give the borrower

FHA and VA residential loans

Ginnie Mae is a federal agency that backs

owned and occupied the property for two out of the last five years

Homeowners can exclude from taxation up to $250,000 of profit for a single person and $500,000 for a married couple so long as they

lead-based paint

If a home was built before 1978, the buyer has to be given the opportunity to have the home tested for

negotiable

In California, real estate commissions are

Section 3

In a township, the section north of Section 10 is

conventional loans.

Loans that do NOT involve government cooperation, such as a guarantee or insurance, are known as

gross income less vacancy and expenses

Net operating income is

five years

One of the requirements to acquire title by adverse possession is to pay all the property taxes for

separate ownership by one person

Ownership in severalty is a way of taking title to real estate that involves

joists

Parallel wooden beams that support flooring are called

make construction loans

Real estate licensees act as mortgage brokers when they

the mobilehome has been registered with the Department of Housing and Community Development.

Real estate licensees are authorized to help people buy and sell mobilehomes provided

a mobilehome not permanently attached to a foundation.

Real property does NOT include

correlation

Reconciliation is the same as

refusing to make loans in a particular neighborhood because of its geographic location.

Redlining is the discriminatory practice by lenders of

the governor of California

The California Real Estate Commissioner is appointed by

1919

The California Real Estate Law was upheld in

race

The Civil Rights Act of 1866 prohibited discrimination based on

no post-sale right of redemption

The MOST significant difference between a mortgage and a deed of trust is that, after a trustee's sale using a deed of trust, the trustor has

the same force and effect as law

The Real Estate Commissioner's regulations have

Sales involving one- to four-family dwellings, except for specified exempt transactions

The Transfer Disclosure Statement (TDS) is required in which type of transaction?

the sales comparison approach

The appraisal method used to appraise amenity-type property is

lower value

The appraisal principle of regression provides that a property of higher value tends to decrease in value when surrounded by properties of

the value of a property is determined by the cost of acquiring an equally desirable substitute property

The appraisal principle of substitution states that

regression

The appraisal principle that is considered the opposite of progression is

the R- value

The effectiveness of various kinds of insulation is expressed by

the deed of trust

The financing instrument favored in California is

four years

The full term for a real estate broker's or salesperson's license is

accretion

The gradual addition to land through natural causes is called

a chain of title

The history of documents affecting title to a property is called

a quitclaim deed

The instrument usually used to clear clouds on title or to terminate deed restrictions is

the Alquist-Priolo Earthquake Fault Zoning Act.

The law that requires sellers and agents to disclose if the property is located within a state delineated earthquake fault zone is

metes and bounds

The legal method of describing land that would be used to follow each boundary for a given distance for an irregular parcel is

community property

The legal presumption is that all property acquired during marriage is

give the tenants a written notice to pay or quit and then file an unlawful detainer action.

The legal way to evict tenants who are in default on their rent is for the landlord to

$50,000 per transaction/$250,000 per licensee

The limits on what can be paid out of the Recovery Account are

an exclusive right-to-sell

The listing agreement in which a broker is entitled to a commission no matter who sells the property is known as

1% of assessed value plus voter-approved indebtedness

The maximum annual real property tax rate in California is

a condition

The penalty for violating a covenant is NOT as harsh as violating

the market value

The price a property will bring when neither the buyer nor the seller is acting under duress and it has been on the market for a reasonable length of time is defined as

a straight note

The repayment of a loan that is made by installments of interest only with the principal due in a lump sum is

signed by the grantor.

The requirements for a valid deed are that the grantor must be competent and that the deed must be in writing, designate a grantee, have a granting clause, have an adequate description of the property, and be

Reconveyance deed

The return of title to a borrower after the payoff of a debt is accomplished by the trustee executing and delivering which document to the trustor?

April 10

The second property tax installment becomes delinquent on

right of survivorship

The special benefit of joint tenancy is

the recovery account.

The special fund established to help compensate parties who have obtained a judgment against licensees that is uncollectible is called

avulsion

The sudden loss of land through natural causes is called

studs

The vertical supports of a house frame are called

consideration

To have a valid contract, an obligation or payment by each party must be made, which is referred to as

be 18 years of age or older

To have the capacity to contract, a person must

eight college-level courses

To qualify for a real estate broker's license, a person must complete

like-kind property

To qualify for a tax-deferred exchange, the trade must be for

illegal

Undisclosed dual agency is

Interpleader action

What does an escrow officer file with the court when the buyer and the seller are unable to resolve a dispute regarding the release of funds?

Option listing

What type of listing is typically used when the broker may want to purchase the property?

intestate

When a person dies without a will, the person is said to have died

the mortgagor

When property is used to secure payment of a debt or obligation, a lien on the property is given by the borrower, who is called