California Real Estate Practice Exam

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Study for the California Real Estate Exam with confidence. Engage with interactive questions designed to enhance your understanding of real estate principles, laws, and practices. Prepare thoroughly for your licensing test and ensure you have the knowledge to succeed in your real estate career!

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How is property owned under a trust arrangement?

The beneficiary owns the title directly.
The title is held by the trustee on behalf of the beneficiary.
Ownership is transferred to a non-profit organization.
It is owned jointly by all beneficiaries without a trustee.

The correct answer is: The title is held by the trustee on behalf of the beneficiary.

A trust arrangement involves a trustee holding the title of the property on behalf of the beneficiary. This allows the trust to protect and manage the property for the benefit of the beneficiary. Option A is incorrect because the beneficiary does not directly own the property. Option C is incorrect because ownership is not transferred to a non-profit organization. Option D is incorrect because there is typically a trustee involved in the ownership of trust property.