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Questions With Answers For Real Estate Exam 2024/2025
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Questions With Answers For Real Estate Exam 2024/2025
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California Real Estate Exam 2024Study online at
https://quizlet.com/_eowa1k
1.An insurance policy which combines personal liability insurance and haz-
ard insurance coverage for a dwelling and its contents is called:
Homeowners insurance
2.What is the status of a contract when all the terms have been fulfilled
and the transaction has been closed?: Fully executed
3.Surface rights, air, rights, and subsurface rights are all rights that can be
sold by a property owner while still retaining the property itself. These
rights are known as:: Several rights
4.When an easement allows the use of a neighboring property which auto-
matically transfers upon the sale of either dominant or servient property. It
is called what type of easement: Easement appurtenant
5.Linda purchased a fee simple interest for the private use of a
residential property for one week every single year. What did Linda
purchase?: Resort timeshare
6.What is the highest form of landownership which includes the full
and complete bundle of property rights?: Fee simple absolute
7.What type of ownership would allow two or more owners to have
various unequal percentages of ownership?: Tenancy in common
8.Tendency in severalty is best described as: One property owner
9.Which of the following is not one of the four land use controls?: intestate
10.What is the general purpose for cities to require building permits?:
To require a minimum level of construction standards
11.The interest rate bank charge to their preferred customers is called:
The prime rate
12.The city of Brownwood plants to build a new water treatment facility,
but the land that is required is privately owned. Eminent domain allows the
city to: Take possession of the land against the owners wishes yet the
owner must be compensated
13.When the appraised value of a property is given, it is based on:
Comparable sales
14.Agent Brooke is preparing for a listing appointment and has gathered in-
formation to prepare a report of recent market data for the seller to review.
The report agents reconcile to obtain a reasonable list price for a property
based on current listings, recent sales and expireds would be called.:
Comparative market analysis (CMA)
15. Paul owns an older residential property in an area now zone for
commercial use. Paul decides to renovate the home into a laundromat. The
change in the properties functionality for Paul's financial gain is an example
of what: Highest and best use
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, California Real Estate Exam 2024
Study online at
https://quizlet.com/_eowa1k
16.John's tire store is being built across the street from big Bob's tires.
What appraisal principal describes this situation: Competition
17.Buyer Sam purchased a rundown residential home in a neighborhood
with many nice well-kept properties. Sam intends to renovate the home and
resell it for a profit. Considering the nicer homes in the neighborhood help
raise his property value, what appraisal principle is Sam leveraging ?:
Progression
18.During the appraisal process, the appraiser will never adjust the price
of the: Subject property
19.While working on an appraisal report appraiser, Jake finds that the com-
parable property is superior to the subject property with more amenities.
How will Jake make adjustments to arrive at a value of the subject
property?: Sub- tract value from comparable
20.The beautiful town of big Bear is experiencing a fast influx of new resi-
dence. There are a few homes on the market and no new construction
devel- opments in the works. What will this do to the price of the existing
homes in the area?: The prices will increase
21.Homeowner Paul is selling his home without a real estate agent. He
places an advertisement stating "owner financing 3% down payment" is
Paul's ad- vertisement in violation of the Truth in Lending act?: No property
owners are not regulated by TRIL advertising requirements
22.Which one of the following loan types does not require a down payment?
: VA Loan
23.Discount points are away lenders are able to charge prepaid interest in
order to lower the interest rate over the life of the loan. What is the cost of
the discount point based on?: The loan amount
24.FHA loans require the borrowers provide protection to the lender in
case of loan default. What must the borrower pay for to provide this
protection to the lender?: Mortgage insurance premium
25.Fair housing regulations apply not only to real estate agents, but also
lenders. When a lender denies a mortgage application solely based on the
racial demographics of the neighborhood. The property is located in the
lender is guilty of: Red lining.
Lenders are to base credit decisions on the borrowers, credit worthiness.
26. Terry received a conventional 30 year loan to purchase his home.
Thanks to some large extra payments Terry will have his home paid for in
only 17 years. Which of the following loan terms could charge Terry an extra
fee for paying off the home so soon?: prepayment penalty
27.Mark is not able to make his entire mortgage payment on time each
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