California Real Estate Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

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!

Start Multiple Choice Practice Test
Start Flash Cards

Practice this question and more.

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

  1. Only on the original purchase mortgage loan

  2. On all refinance loans

  3. When the homeowner declares bankruptcy

  4. 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.

More Questions Like This