California Real Estate Exam 24 PDF

YOUTUBE California Real Estate Exam 24,100 Questions  When a deed does not specify the estate being conveyed, it is presumed to transfer which of the following? A. Fee Simple Absolute  Possession, control, and enjoyment are included in which of the following? C. Bundle of rights  If Alicia deeds...

YOUTUBE California Real Estate Exam 24,100 Questions  When a deed does not specify the estate being conveyed, it is presumed to transfer which of the following? A. Fee Simple Absolute  Possession, control, and enjoyment are included in which of the following? C. Bundle of rights  If Alicia deeds property to Bernice and her heirs, with the stipulation that if Bernice leaves no heirs, the property will then go to Cynthia, then Cynthia now holds which type of estate? D. Remainder Estate  In a deed that states "To Jonathan for his life," what type of interest does the grantor have? D. Reversionary Interest  A life estate may be granted for which of the following purposes? D. All of the above  Which of the following is not a type of freehold estate? C. Leasehold estate  Fee-simple ownership includes all of the following rights except: D. Right to transfer ownership after death  In a scenario where an elderly couple grants a hospital a gift of real property, while reserving a life estate for themselves, the hospital is considered the: D. Grantee  Which of the following activities is not permitted for the owner of a life estate? A. Selling the life estate interest  A widow who is given the right to use the family home for her lifetime with ownership passing to the children upon her death holds which type of interest? B. Life estate  Which of the following statements is true regarding a life estate? C. The life tenant is responsible for paying property taxes and maintenance. 12 What term is used to describe the degree, quantity, or nature of a person's interest in real property? D. Interest in land  The return of land to the grantor or grantor's heirs when the grant is over is best described as: B. Reversion  How should an estate in land vested in a grantee until she marries be properly classified? C. Fee simple, determinable  Which of the following is an example of a less than freehold estate? C. Leasehold estate  With respect to real property, how is the term estate best described? B. The legal interest or rights a person has in real property.  Which statement provides the strongest assurance of free simple ownwership? D To have and to hold forever"  In the administration of an estate, who typically selects the administrator? A. The court  Which of the following characteristics does not describe a fee simple estate? D. Transferred upon the death of the owner  When a man dies without leaving a valid will, his death is referred to as: A. Intestate  A woman possesses a fee simple estate; which of the following actions can she not do to the property? C. Modify or alter the property  A farmer sold a portion of his farm to a railroad company with the condition “as long as it remains a rail line”. If the rail line is abandoned, the property reverts back to the farmer or the farmer's heirs. What type of estate is describe in this scenario? D. Defeasible estate  Which term refers to the largest estate or ownership in real property? A. Fee simple estate  The holder of which of the following would be considered a non-freeholder? C. Leasehold estate  Which of the following actions is not permitted for the grantor of a life estate? D. Revoke or terminate the life estate at any time  Where would a licensee be advised to go to clarify any questions about an encroachment concerning a property she is selling? C, Surveyor's office.  In a scenario where the owner sold a property with a restriction on selling alcohol, but the subsequent buyer violated the restriction, what would be the basis for the owner or owner's heirs to claim a right of re-entry? A, breach of contract.  Which of the following items is an example of personal property? B, car.  Which of the following is typically categorized as personal property? B, furniture.  What is the best definition of real property? A, land and everything permanently attached to it.  What category do temporary or easily movable things or objects typically fall under in real estate? B, chattels.  In a real property sale contract that includes removable items like paintings and furniture, what should the seller deliver along with the deed? D, removable items mentioned in the contract.  Among the following options, which one is not considered a fixture in real estate? D, freestanding microwave.  When determining whether something is a fixture, what is the most significant factor to consider? D, method of attachment.  What is an adjustable rate mortgage that allows the borrower to change the arm to a fixed rate mortgage within a specific time? B, a convertible ARM  Which term most accurately describes personal property? C, chattels.  Literal property is situated on which type of location? A, coastline.  In the context of real estate, the term “improvements” is most closely associated with what? C, building upgrades.  What is the term used to describe the rights of ownership that include the right to use, possess, enjoy, and dispose of a property while excluding others without rights from interfering? D, bundle of rights.  What is the term for the appropriation of land by the owner for public use, which is accepted on behalf of the public, such as streets in a platted subdivision? C, dedication.  When an owner of real property is uncertain about the inclusion of riparian rights, the best way to determine it is by reviewing the? A, deed.  How is the boundary of a property altered? C, land survey.  Who is considered a riparian owner? A, someone who owns land adjacent to a river or stream.  In a physical sense, what does real estate encompass, excluding what? D, personal belongings and chattels.  What do riparian rights refer to? C, rights to use and access water from a river or stream.  What is the term for the removal of land when a stream suddenly changes its channel? C, avulsion.  What must a landowner who sells a one-acre farm do? D, provide a valid legal description.  When a woman receives a gift of real property through a will, she is referred to as? A, devisee.  What is the term used to describe the loss of one's real estate due to the gradual wearing away of soil caused by natural factors? A, erosion.  Which of the following options is not considered an improvement? D, growing natural vegetation.  Which of the following types of property is typically not considered real property? C, vehicles.  How are riparian rights best described? C, rights to use and access water from a river or stream.  What is the term used to describe a right, privilege, or improvement that is inherent to a property and transfers with its ownership? D, appurtenance.  In the context of real property, what does the term fee signify? A, ownership interest.  How would you best describe the rights to the space above the ground within vertical planes? A, air rights.  What is the term for crops that require annual planting and cultivation on land? B, annual crops.  How would you best describe the rights in the land that automatically transfer with the conveyance of the land? A, appurtenant rights.  Among these items, which one is not considered real property when affixed as an appurtenance to land? D, vehicle.  A man dies testate, leaving a wife and minor son. He bequeaths all of his property to his son, but the wife claims her elective share under the uniform probate code. How will the man's property be distributed? B, partially to the son and partially to the wife.  What is the term used to describe a man who makes a will? A, testator.  In a building, what are ceiling tiles that drop into a metal frame considered? A, fixtures.  What does a devisee receive? A, real property.  What is the closest meaning of the term intestate? A, to die without a will.  When real property is conveyed by a codicil to a will, how is it conveyed? D, by testamentary disposition.  What does the term probate refer to in a legal context? A, distribution of assets after death.  What is a devise in the context of real estate? B, the act of leaving property to someone in a will.  How does the property of a person who dies intestate pass? D, it is determined by the court based on intestate succession laws.  In the event of intestate succession where no heirs are found, what is the process by which real property reverts to the government? D, escheat.  What happens to real property when a person dies testate? D, it is transferred to the beneficiaries specified in the person's will.  Which of the following items is not considered personal property when bestowed in a will? C, real estate.  How can the title to an owner's real estate be transferred upon their death? A, will.  What does the term “escheat” refer to in real estate? C, reversion of property to the government.  In the probate process of an estate, who is the last to receive payment, if any? C, beneficiaries.  Which of the following words does not belong to the same group as the others? D, Insurance.  If a buyer defaults on a loan and the lender declares the note to become due and payable immediately, this would best be described as: C. an acceleration clause.  Which of the following documents does not transfer an interest in real property? A. A lease agreement.  Who will receive title to the man's real estate if the probate court declared the will invalid? D. The state appointed administrator of the estate.  Who typically selects the executor of an estate? A. The deceased person in their will.  What will happen to a man's four-acre farm if he dies without a will and with no surviving relatives? D. It will escheat to the state government as unclaimed property.  Under which condition would a property owner have riparian rights? A. When owning property adjacent to a river or a stream.  What happens to a person's real property when they die testate? A. It is transferred according to the person's will.  Which statement is not true about a party wall built on the property line between two lots? D. Either owner can modify or remove the wall without the other's permission.  What is the primary purpose of the Uniform Commercial Code? C. Standardizing commercial transactions and business practices.  Which option “best” describes the difference between an administrator and an executor? A. An administrator is appointed by the court, while an executor is named in the will.  What economic concept did the owner utilize in selecting a location for the doughnut shop? D. Location advantage.  In which of the following would you typically find the four unities of title, time, interest, and possession? A. Joint tenancy.  What does the zoning ordinance that prohibits buildings six stories or taller represent? D. Down zoning.  A provision in a mortgage that allows the lender to demand repayment in full if you sell your mortgage property is called: B. Due on sale provision.  A table or chart that shows how much of each mortgage payment is applied to interest and how much is applied to the principal is called: A. An amortization schedule.  When a property adjoins a navigable waterway, which statement is true regarding riparian water rights? C. Riparian owners have equal rights to use the water.  When a buyer assumes the seller's tax escrow account, held by the lender, what entry is made on the settlement statement at closing? B. Debit to the buyer and credit to the lender for the tax escrow amount.  Which statement is true about Tom, who owned a farm jointly with his son Jerry? A. Tom's creditors can claim his share of the farm to settle his debts.  What is true about Jane's contract after discovering John's fraudulent misrepresentation? A. Jane can cancel the contract and seek legal remedies.  In order for a deed to be valid, it must be: D. All of these.  If you charter a corporation and acquire an apartment building, then sell stock to specific individuals who are granted a proprietary lease, what type of ownership have you established? A, Cooperative ownership.  Which of the following statements is true about a mortgage? C. It represents the borrower's promise to repay the loan.  After C's death, who currently owns the property if A, B, and C were joint tenants? A. A, B, and D.  What type of financing device is most likely involved if the seller provides a deed? B. Land contract.  What would be the first month's interest payment for a $25,000 loan with a 30-year term and a 9% interest rate? B. $187.50.  If a grantor signs a deed on Saturday but delivers it to the grantee on Sunday, which statement is true? D. The grantee has equitable title but not legal title until the deed is delivered. The reason for not buying was probably based upon the principle of: B) Substitution. When a broker misrepresents his principal's property to a buyer, he could cause his principal to be subject to: D) Any of the above. An owner of a 5-unit apartment building that is located within the city limits intends to convert the building into five condominium units and offer them for sale to the public: B) Must file a map with the city under the provisions of the subdivided map act. After acquired title is conveyed in any trust deed for the benefit of the beneficiary, it conveys: D) All of the above. During Broker Shaw's preparation of the exclusive authorization and right to sell on seller Norman's property, Shaw should enter: B) Buyer to assume existing loan. A third party who takes a promissory note that is complete and regular and has no knowledge of any defects is known as: D) Holder in due course. The owner of a single-family residence plans to sell and wants to obtain an FHA appraisal: C) Have a lender apply for a conditional commitment. A buyer defaults in making payments on a loan; therefore, the lender's action probably would result in: C) Acceleration. The classic definition of the boundaries of real property is: B) A reasonable use of airspace and extended to the center of the Earth. A buyer defaults on a loan; therefore, the lender would be able to cause the promissory note to become due and payable; this clause is: C) An acceleration clause. When the supply of a certain commodity increases: B) Price tends to drop. An offer to purchase real property was signed by a prospective buyer; the seller did not accept the offer until October 10th, 1977: A) The buyer may demand the return of his deposit. An offer by one of the parties to a real estate transaction to carry out that party's part of the contract is called: D) Tender. If a person is discriminated against, the actions available to them are best described as: A) Private action in a state or federal court. Many real estate contracts are in writing on forms; the interpretation of such contracts: C) The written parts take preference over the printed parts. A lender possessing a chattel mortgage may: D) All of the above. A real estate broker is usually: D) None of the above. When a broker shows a client's property to a prospective buyer that is listed under an open listing, the broker should: C) Notify the seller as to the prospect's identity. Concerning business opportunities: D) All are true statements. A licensed real estate broker working under a typical exclusive listing incurs several expenses; he is not entitled to be reimbursed for these expenditures unless: B) Such expenditures were authorized by the principal. A primary justification for zoning ordinances is to: C) Promote public health, safety, morals, and general welfare. A salesperson receives a deposit together with a written offer to purchase and delivers them to the employing broker; if the seller instructs the broker to return the deposit: B) The broker may sue the seller but must return the deposit. An attorney drew up a contract between a buyer and a seller; the agreement included a liquidated damages clause calling for the payment of $500 in the event the buyer should default: C) Unsuccessful because the seller agreed to accept the $500 as liquidated damages in the contract. A second offer received on a property prior to the seller's decision on the first offer should be: B) Submitted immediately. A mortgage that can be assumed by the buyer when a home is sold is called: A) Assumable mortgage. If a person is vested, they can use a portion of a fund such as an individual retirement fund but must pay taxes on funds that are withdrawn: B) Vested. A fiduciary who holds or controls property for the benefit of another is called: B) A trustee. A title search would show: A) Clouds. An organization that collects principal and interest payments from borrowers and manages borrowers' escrow accounts is called: B) A servicer. Ownership does not pass to the survivors in the event of death in: A) Tenancy in common. When a lender uses another party to completely originate, process, underwrite, close, fund, or package the mortgages, it is known as: A) Third-party origination. The two categories of closing costs are: C) Non-recurring and prepaid. A technique in which a seller deeds property to a buyer for consideration and the buyer simultaneously leases the property back to the seller is called: B) Sell leaseback. A provision in an agreement that requires the owner of a property to give another party the first opportunity to purchase or lease the property is known as: A) First right of refusal.