TEST QUESTIONS

Question 1

California’s Real Estate Law is found in the

Answer 1

Business and Professions Code

Question 2

Every Real Estate broker must be licensed by the Department of

Answer 2

Real Estate

Question 3

A real estate broker’s license may be obtained by

Answer 3

• Sole Proprietorship
• Corporation
• Partnership

Question 4

Under the Real Estate Law, a real estate salesperson works for a broker as an

Answer 4

employee

Question 5

A real estate salesperson is supervised by

Answer 5

The employing broker only

Question 6

The Real Estate Law allows a business opportunity to be sold

Answer 6

by a real estate licensee

Question 7

When is NOT required to have a real estate license, when selling a property?

Answer 7

Selling your own property

Question 8

The applicant for a real estate salesperson’s license must complete how many college-level courses before taking the licensing examination?

Answer 8

Three

Question 9

Real estate licenses are renewable for a period of

Answer 9

Four years

Question 10

When a real estate license expires, licensed activity must cease but the license may be renewed up to

Answer 10

2 years

Question 11

Under Spanish rule, land was owned primarily by the

Answer 11

King

In 1513, Balboa claimed all lands “washed by the Pacific Ocean” for the King of Spain

Question 12

The term real estate means the same thing as

Answer 12

real property

Question 13

Today, more than 50% of California land is owned by the

Answer 13

private sector

Question 14

Real property includes

Answer 14

Land, appurtenances to land, and fixtures

Question 15

Something that is used with the land for its benefit, such as a roadway or a waterway, is known as

Answer 15

an appurtenance

An appurtenance to land is anything used with the land for the benefit of its owners, such as a roadway, an easement, right of way, or condominium parking space

Question 16

Personal property is usually transferred by a

Answer 16

bill of sale

Ownership of real property is usually transferred by an instrument called a deed. Personal property is usually transferred by a bill of sale

Question 17

There are three principal baselines and meridians in California. The intersection of the Humboldt Baseline and Meridian is in

Answer 17

Northern California

The Humboldt Baseline and Meridian were established on Mt. Pierre in Humboldt County in 1853. The other two baseline and meridians were established a few years earlier

Question 18

The rectangular survey system is also known as the

Answer 18

U.S. government survey system

Question 19

How many sections are in a township

Answer 19

36

Question 20

In medieval England, the highest form of ownership was the

Answer 20

freehold estate

Question 21

The highest form of modern land ownership is known as

Answer 21

a fee simple absolute

Question 22

The right of possession is restricted under a

Answer 22

fee simple subject to a power of termination

Fee simple subject to a power of termination is ownership in which the right of possession is restricted in some way by some limitation or condition.

Question 23

The right of the future holder of what is currently a life estate is a

Answer 23

remainder

Question 24

Someone who receives real property is known as the

Answer 24

grantee

Question 25

Ownership in severalty is

Answer 25

separate ownership Ownership in severalty, also called separate ownership or sole ownership, is ownership by one person. The property owner is the only person to receive the benefits (and responsibilities) of ownership

Question 26

A holder of which of the following ownership interests can devise her share of the property to someone else?

Answer 26

Tenancy in common

Question 27

What is (TTIP)

Answer 27

The four unities of joint tenancy are: unity of time, title, interest, and possession

Question 28

Community property is

Answer 28

all property acquired during marriage that is not separate

Question 29

If a person dies without leaving a will, that person dies

Answer 29

intestate

Question 30

a holographic will does NOT have to be

Answer 30

witnessed

Question 31

Accretion is the process of accumulating new soil

Answer 31

along a flowing body of water

Question 32

Land is torn away by the action of water in the process called

Answer 32

avulsion

Question 33

Private land can be conveyed for public use or ownership by all of these methods

Answer 33

deed, statutory dedication, common law dedication

Question 34

If an owner devoted land to public use, such as roadway, a transfer occurs by

Answer 34

common law dedication A common law dedication occurs when a landowner devotes land to a public use, as when a roadway is opened to public use or described as such in the deeds to adjoining parcels

Question 35

In order to be valid , a grant deed does NOT require

Answer 35

recording There is no legal requirement that a deed be witnessed, that the grantor’s signature be verified, or that the deed be recorded in the county recorder’s office; nevertheless, such steps are practical necessities to prevent problems

Question 36

Which of the following deeds is a security instrument?

Answer 36

Trust deed The trust deed, also called a deed of trust, can be used when property serves as security for a debt, typically the loan used to purchase the property, but it can be any loan using the property as collateral to guarantee payment of the amount borrowed

Question 37

Which type of deed would be used when the purchaser pays off a loan secured by the real estate?

Answer 37

Reconveyance deed A reconveyance deed executed by the trustee is the means by which the trustee returns title to the trustor when the debt secured by the deed of trust is paid off. The beneficiary notifies the trustee that the debt has been cleared by sending the trustee a document called a request for reconveyance.

Question 38

Liens are classified as

Answer 38

encumbrances

Question 39

A mechanic's lien requires

Answer 39

preliminary notice.

Question 40

A notice of nonresponsibility would protect

Answer 40

a mechanic's lien