California Real Estate Exam: Questions
& Answers
Reed vs. King Case (Ans- Must disclose death (and manner of death) on a property if occurs within 3 years, except AIDS
Jones vs. Mayer Supreme Court Decision (1968) (Ans- Racial discrimination not allowed (whether selling or buying) in all PRIVATE property transactions (based on Civil Rights Act of 1968)
Easton vs Strassburgar (Ans- Seller disclosures to third parties AND agent visual inspection of all accessible for 1-4 single family homes
If license applicant is delinquent on child support, what type of license will be issued?(Ans- 150 day temporary license
A commission is earned when...(Ans- A ready, willing, and able buyer is found
Name 4 examples of real property (Ans- Land Fixtures (attachments) Appurtenances Immovable by law
DEF mineral rights (Ans- Right to remove substances from land, usually beneath the surface
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Name two instruments to transfer ownership (Ans-
- Deed (real estate)
- Bill of sale (personal property)
Name five tests to determine if something is a fixture:
(Ans- MARIA Method of attachment Adaptability Relationship of parties Intent of parties in placement Agreement of parties
Of the five MARIA tests to determine if something is a fixture which is most important (Ans- INTENT
Estate always relates to...(Ans- Ownership
DEF freehold estate (Ans- Highest form of land ownership and of indefinite duration
Fee Simple Absolute (Ans- Same DEF as freehold. Difference is that this is the MODERN def (this is BEST answer)
DEF Fee simple defeasible (Ans- Estate that is subject to the power of termination
Defeasible estates are subject to a ...(Ans- condition
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What is the result of a breach in condition of a defeasible estate?(Ans- Loss of title
In CC&Rs, breaking (covenant/condition) result in loss of title?(Ans- Condition
What are two other names for a fee simple estate?(Ans-
- Estate of inheritance
- Perpetual Estate
In a fee simple defeasible estate, to whom does the estate revert back to if a condition is breached?(Ans- Creator of the estate
Example: Hugh Hefner and Cal Poly Pomona
Def of Life Estate (Ans- A freehold estate with limited duration which is based on someone's life.
Can the holder of the life estate sll or lease the estate?(Ans- Yes
Who does the life go back to when the holder dies?(Ans-
- Estate in reversion - goes back to creator
- Estate in remainder - goes to third party
DEF encumbrance (Ans- Anything that would be a burden on the title
Name two types of encumbrances (Ans-
- Money (liens)
- Non-money (easements) 3 / 4
A holder of a life estate cannot do two things:
(Ans-
- Will or devise the estate
- Commit waste (such as not pay property taxes and not maintain the
property)
Mechanic's Lien: used to secure payment to anyone that provides any of
these four things:
(Ans-
- Labor
- Services
- Materials AND/OR
- Equipment
Mechanics liens become effect when...(Ans- work started
An owner can post and record WHAT to protect the title against a mechanic's lien?(Ans- Notice of Non Responsibility
DEF lien (Ans- An encumbrance that the property acts as security for payment of a debt or discharge of an obligation.Note - on the property NOT the owner
List two examples of a specific, involuntary lien (Ans- Property Tax Mechanics Lien
Name one example of a specific voluntary lien (Ans- Mortgage loan
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