California Real Estate Practice Exam

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Master the California Real Estate Exam with our comprehensive practice quiz. Get expert tips, detailed content review, and insider strategies to pass on your first try.

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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Under what condition does California law protect homeowners when the sale of the property cannot cover the outstanding mortgage balance?

Only on the original purchase mortgage loan
On all refinance loans
When the homeowner declares bankruptcy
Regardless of the mortgage type

The correct answer is: Only on the original purchase mortgage loan

California law only protects homeowners in the case of an original purchase mortgage loan, meaning the loan used to initially purchase the property. This means that any refinanced loans or mortgages taken out for other purposes may not be protected under California law. Additionally, declaring bankruptcy does not automatically trigger this protection for homeowners. Therefore, option B and C are incorrect. Option D is also incorrect as the type of mortgage can impact whether or not the homeowner is protected under California law, so this protection is not guaranteed regardless of the mortgage type.