Question: Match condemnation, escheat, special assessment, police power, CC&Rs, variance, eminent domain, and nonconforming use.

Answer Options: Legal taking proceeding reversion to state tax on benefited property welfare-regulation power private subdivision restrictions zoning deviation permit government taking power grandfathered use.

Answer: Condemnation — taking proceeding; Escheat — reversion; Special assessment — benefited-property tax; Police power — welfare regulations; CC&Rs — private restrictions; Variance — zoning deviation; Eminent domain — taking power; Nonconforming use — grandfathered use. 143

Question: Match CMA, highest and best use, substitution, sales comparison, market value, income approach, depreciation, and cost approach.

Answer Options: Informal estimate optimal feasible use comparable alternative principle adjusted recent sales probable fair-sale price revenue analysis loss in value replacement/reproduction analysis.

Answer: CMA — informal estimate; Highest and best use — optimal feasible use; Substitution — comparable alternative; Sales comparison — adjusted recent sales; Market value — probable price; Income — revenue analysis; Depreciation — loss in value; Cost — replacement/reproduction analysis. 144

Question: Match promissory note, straight loan, mortgage, LTV, acceleration clause, discount point, bridge loan, and PITI.

Answer Options: Promise to repay interest-only payments voluntary lien loan/value relationship entire balance due after default prepaid interest gap loan principal-interest-taxes-insurance.

Answer: Promissory note — promise; Straight loan — interest only; Mortgage — voluntary lien; LTV — loan/value ratio; Acceleration — balance due; Discount point — prepaid interest; Bridge — gap loan; PITI — payment components. 145

Question: Match void contract, statute of frauds, rescission, liquidated damages, meeting of the minds, counteroffer, option, and addendum.

Answer: Void contract — lacks enforceability; Statute of frauds — writing/signature requirement; Rescission — restores parties; Liquidated damages — agreed damages; Meeting of minds — mutual agreement; Counteroffer — changed response; Option — right but no obligation to buy; Addendum — document attached before signing. 146

Question: Match procuring cause, general agent, principal, renunciation, self-dealing, designated agency, transaction broker, and customer.

Answer: Procuring cause — produces contract; General agent — continuing authority in an area; Principal — grants authority; Renunciation — gives up authority; Self-dealing — puts own interests first; Designated agency — appointed in-house representative; Transaction broker — neutral administrative services; Customer — unrepresented party. 147

Question: Match encapsulation, due diligence, latent defect, stigmatized property, material fact, radon, brownfield, and patent defect.

Answer: Encapsulation — seals asbestos; Due diligence — investigation; Latent defect — hidden flaw; Stigmatized property — affected by past event; Material fact — decision-influencing information; Radon — radioactive gas; Brownfield — contaminated former commercial site; Patent defect — visible flaw. 148

Question: Match market rent, retaliatory eviction, quiet enjoyment, actual eviction, rent roll, habitability, contract rent, and self-help eviction.

Answer: Market rent — amount property should bring; Retaliatory eviction — removal for protected complaint; Quiet enjoyment — undisturbed possession; Actual eviction — legal removal; Rent roll — unit/tenant report; Habitability — safe premises; Contract rent — actual lease rent; Self-help eviction — illegal force, lockout, or shutoff. 149

Question: Match constructive notice, abstract of title, title, marketable title, short sale, grantor, cloud on title, and quitclaim deed.

Answer: Constructive notice — legally imputed knowledge; Abstract — chronological document summary; Title — ownership interest; Marketable title — free of serious defects; Short sale — lender-approved sale below debt; Grantor — conveys property; Cloud — title defect; Quitclaim — conveys possible interest without warranties. 150

Question: Match DNC Registry, trust funds, redlining, blockbusting, steering, blind advertisement, antitrust, and statutory nonemployee.

Answer: DNC — protected phone list; Trust funds — money held for others; Redlining — discriminatory lending by area; Blockbusting — inducing panic sales; Steering — discriminatory neighborhood guidance; Blind ad — brokerage not identified; Antitrust — competition laws; Statutory nonemployee — special tax classification for licensees. 151

Question: Match equity, LTV, discount point, statutory year, PITI, net to seller, proration, and capitalization rate.

Answer: Equity — value minus liens; LTV — loan compared with value; Discount point — prepaid interest; Statutory year — 360 days; PITI — principal, interest, taxes, insurance; Net to seller — proceeds after costs; Proration — allocated shared expenses; Cap rate — investment return percentage. Cumulative practice questions 152

Question: Which loan is appropriate for buying a new home before selling the current one?

Answer Options: A. Blanket B. Bridge C. Home-equity D. Reverse mortgage.

Answer: B. Bridge loan. 153