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CA Real Estate Exam 2024 Practice Questions And answers | Updated with complete solution Rated A+
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CA Real Estate Exam 2024 Practice Questions And answers | Updated with complete solution Rated A+
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CA Real Estate Exam 2024 PracticeQuestions And answers | Updated with
complete solution Rated A+
An insurance policy which combines personal liability insurance and hazard insurance
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coverage for a dwelling and its contents is called:
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Homeowner's insurance II
Buyer's insurance II
Errors and omissions insurance II II II
All of the above - Homeowner's insurance
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Homeowner's insurance ensures comprehensive protection for homeowners. II II II II II II
What is the status of a contract when all terms have been fulfilled and the transaction has
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been closed?
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Fully executed II
Terminated
Voidable
Unenforceable - Fully executed II II II II II
This means that both parties have performed their obligations under the contract and
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there are no further actions required. At this point, the contract has been completely
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executed and both parties are typically released from any further obligations under the
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agreement.
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Surface rights, air rights, and subsurface rights are all rights that can be sold by a property
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owner while still retaining the property itself. These rights are known as:
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Severable rights II
Littoral rights II
Owner's rights II
Riparian rights - Severable rights II II II II II II
Surface rights, air rights, and subsurface rights can be sold separately and are called
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severable rights.
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When an easement allows the use of a neighboring property which automatically
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transfers upon the sale of either dominant or servient property, it is called what type of
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easement?
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Easement by prescription II II
,Easement appurtenant II
Easement in gross II II
Easement of utility - Easement in appurtenant II II II II II II II II
Appurtenant means "runs with the land." II II II II II
Linda purchased a fee simple interest for the private use of a residential property for one
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week every single year. What did Linda purchase?
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Shares in a cooperative building II II II II
A condominium
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Common elements II
Resort timeshare - Resort timeshare II II II II II II
Vacation timeshare resorts sell a fee simple form of ownership to a buyer for the private
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and exclusive use of a unit for one week a year. There is title work, a closing, and the
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buyer is conveyed a deed.
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What is the highest form of land ownership which includes the full and complete bundle of
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property rights?
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Fee simple defeasible
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Fee simple determinable
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Fee simple condition subsequent
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Fee simple absolute - Fee simple absolute
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Fee simple absolute freehold estate is the highest level of property ownership giving the
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ownership giving the owner the right of possession, control, exclusion, enjoyment, and
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disposition.
II
What type of ownership would allow two or more owners to have various unequal
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percentages of ownership?
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Joint tenancy with rights of survivorship
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Joint tenancy II
Tenancy in common II II
Tenancy in severalty - Tenancy in common II II II II II II II II
Tenancy in common grants owners to have an equal, undivided interest in a property, but
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also allows owners to have varying percentages of unequal ownership as well.
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II Tenancy in severalty is best described as: II II II II II II
Two property owners
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One property owner
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More than two property owners
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,Property owned by a corporation - One property owner II II II II II II II II II II
Severing all other owners, when a single person is the sole owner of a property.
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II Which of the following is not one of the four land use controls?
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Police power II
Intestate
Escheat
Eminent domain - Intestate II II II II II
The four public land use controls in real estate are: police power, escheat, eminent
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domain, and taxation. Intestate is a person who died without making a will.
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II What is the general purpose for cities to require building permits?
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Permit fees are income for the city II II II II II II
Control the amount of building allowed II II II II II
To supersede deed restrictions
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To require a minimum level of construction standards - To require a minimum level of
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construction standards
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Construction standards are placed to maintain the safety and well-being of the public. II II II II II II II II II II II II
II The interest rate banks charge to their preferred customers is called:
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The graduated rate
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The preferred rate
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The prime rate
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The priority rate - The prime rate
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The prime rate is the rate the banks charge their preferred customers for loans.
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The city of Brownwood plans to build a new water treatment facility, but the land that is
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required is privately owned. Eminent domain allows the city to:
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Take possession with no compensation to the property owner
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Do nothing, the city does not own the land
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Ask the property owner to donate
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Take possession against the owner's wishes, but the owner must be compensated -
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Take possession against the owner's wishes, but the owner must be compensated
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Eminent domain allows the government to take possession of privately owned land for
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use by the public even at the objection of the owner as long as the property owner
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receives compensation.
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, II When the appraised value of a property is given, it is based on:
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Comparable sales II
A lower purchase price
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None of these II II
An exact determination of market value - Comparable sales
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Agent Brook is preparing for a listing appointment and has gathered information to
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prepare a report of recent market data for the seller to review. The report agents reconcile
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to obtain a reasonable list price for a property based on current listings, recent sales, and
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expireds would be called:
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Comparable marketing analytics (CMA) II II II
Broker price opinion (BPO) II II II
Comparative market analysis (CMA) II II II
Agent market analysis (AMA) - Comparative market analysis (CMA)
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Paul owns an older residential property in an area now zoned for commercial use. Paul
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decides to renovate the home into a laundry mat. The change in the properties
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functionality for Paul's financial gain is an example of:
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Highest and best use II II II
Substitution
Assemblage
Conformity - Highest and best use II II II II II II II
The transition of the residential property to an income producing business is an example
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of the property being put to its highest and best use.
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Jon's Tire Store is being built across the street from Big Bob's Tires. What appraisal
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principle describes this situation?
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Substitution
Plottage
Competition
Progression - Competition II II II II
The appraisal principle of competition states that two similar businesses attract more
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customers when within close proximity than they would separately.
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Buyer Sam purchased a run down residential home in a neighborhood with many nice
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well kept properties. Sam intends to renovate the home and resell it for a profit.
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Considering the nicer homes in the neighborhood help raise his property value, what
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appraisal principle is Sam leveraging?
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Regression
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