California Real Estate License Exam Prep: Unlocking the DRE Salesperson and Broker Exam - Chapter 5 - Transfer of property

Sep 28, 2026

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Exam-prep instructions and answer-sheet guidance support a multiple-choice review for the California real estate licensing process. The material centers on Chapter 5, Transfer of property, listing key concepts and exam-relevant terms such as title insurance, deeds, escrow, proration, recording, recording-related tax issues, and vesting types. It explains how title insurance policies work, how coverage differs across CLTA standard and ALTA extended forms, and how title searches lead to an abstract of title and a preliminary title report.

LanguageEnglish

CategoryExam

FormatPDF

Pages16

Reading Time40 min

AccessFree to download

ANSWER SHEET INSTRUCTIONS

Chapter 5: Transfer of property

Key Concepts

Key Terms

Title insurance

California Real Estate License Exam Prep: Unlocking the DRE Salesperson and Broker Exam ANSWER SHEET INSTRUCTIONS: The exam consists of multiple choice questions. Multiple choice questions are answered by selecting A, B, C, or D. You may use pen or pencil. Chapter 5: Transfer of property 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. A o o o o o o o o o o o o o o o o o o o o o o o o o B o o o o o o o o o o o o o o o o o o o o o o o o o C o o o o o o o o o o o o o o o o o o o o o o o o o D o o o o o o o o o o o o o o o o o o o o o o o o o 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38. 39. 40. 41. 42. 43. 44. 45. A o o o o o o o o o o o o o o o o o o o o B o o o o o o o o o o o o o o o o o o o o C o o o o o o o o o o o o o o o o o o o o D o o o o o o o o o o o o o o o o o o o o Chapter 5: Transfer of property 83 | | | --- | | Chapter 5: Transfer of property | | | Key Concepts Critical real estate concepts equaling approximately 8% of the state licensing exam. • Title insurance • Deeds • Escrow • Tax aspects • Special processes • Transfer through court supervision • Types of vesting Key Terms Fundamental real estate vocabulary likely to appear on the state exam with reference to the quiz questions illustrating its application. See the Real estate glossary on page 331 for the full definitions. abstract of title (q. 17) adjusted basis (q. 25) ad valorum (q. 22) adverse possession (q. 38) American Land Title Association (ALTA) (q. 16) California Veteran (CalVet) loan (q. 37) chain of title (q. 39) cloud on title ( q. 33) California Land Title Association (CLTA) (q. 12) contingency (q. 40) conveyance (q. 41) delinquent taxes (q. 20) escrow (q. 1, 3, 4, 23) impounds (q. 42) joint tenancy (q. 10, 11) personal property (q. 24) preliminary title report (prelim) (q. 15) property tax assessment (q. 21) probate sale (q. 35) proration (q. 2, 6, 27) recording (q. 18, 19) recurring costs (q. 5) severalty (q. 8) sheriff’s sale (q. 36) tax deduction on personal residence (q. 26) tax foreclosure sale (q. 29) tenancy in common (q. 7) title (q.13, 14) transfer by contract (q. 34) transfer by deed (q. 30, 31, 32) transfer stamp (q. 28) vesting (q. 9) 84 Unlocking the DRE Salesperson and Broker Exam, Sixth Edition 􀁒Note: This section is designed to give you a broad understanding of the basic principles which relate to the subject matter of this chapter. However, it is not exhaustive. For further reading on this concept, seeyour Real Estate Principles and Legal Aspects licensing course materials. JUST THE FACTS Title insurance A policy of title insurance is the contract under which a title insurance company reimburses or holds harmless a person who acquires an interest in real estate against a monetary loss caused by an encumbrance on title that: • is not listed in the title insurance policy as an exception to coverage; and • the insured policy holder was unaware of when the policy was issued. Thus, title insurance insures against things that happened prior to the date of issuance and guarantees against those conditions forever. It is a one-time expense (not recurring) which is paid during escrow. The title company has no obligation under a policy to clear title of the unlisted encumbrance. Title insurance policies are issued on one of several general forms used by the entire title insurance industry in California. The policies are typically issued to: • buyers of real estate; • tenants acquiring long-term leases; and • lenders whose loans are secured by real estate. Several types of title coverage are available, including: • a Ca

FAQs

How are multiple-choice answers marked on the answer sheet?

Select A, B, C, or D for each multiple-choice question, using pen or pencil.

What topics make up the key concepts for Chapter 5?

Key concepts focus on title insurance, deeds, escrow, tax aspects, special processes, transfer through court supervision, and types of vesting.

What is the difference between a preliminary title report and an abstract of title?

A prelim is intended to disclose current vesting and encumbrances but is not a representation of title condition and can’t be relied on; an abstract of title is an accurate factual representation derived from the title search.

Sep 28, 2026

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