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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What best describes the interests of the holder of a life estate?

possession, use, and ownership
rental income and property rights
temporary use and occupancy
capital gains and investment leverage

The correct answer is: possession, use, and ownership

The interests of the holder of a life estate are possession, use, and ownership. This means they have control over the property, can use it for their own purposes, and have ownership rights. The other options are incorrect because - B: Rental income and property rights do not fully encompass the interests of a life estate holder, as they do not necessarily have rental income and their property rights are limited by the terms of the life estate. - C: Temporary use and occupancy is only a small part of the interests of a life estate holder, as they also have the right to possess and use the property for their own purposes. - D: Capital gains and investment leverage do not apply to a life estate, as the holder does not have a financial investment in the property.