California Real Estate Practice Exam

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

Prepare for the California Real Estate Exam. Study with flashcards and multiple-choice questions, each question includes hints and explanations. Get ready to ace your exam!

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!

Practice this question and more.

Under which of the following types of financing is a buyer required to purchase term life insurance?

Cal-Vet
Conventional
FHA
VA

The correct answer is: Cal-Vet

This is because under the Cal-Vet program, the buyer is required to have a life insurance policy that will cover the full amount of the loan in case of their death. This requirement does not exist for the other types of financing listed. Option B, conventional financing, may require a buyer to have private mortgage insurance, but not term life insurance. Option C, FHA financing, requires mortgage insurance but not life insurance. Option D, VA financing, does not require any type of insurance.