California Real Estate Practice Exam

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Prepare effectively for the California Real Estate Exam with comprehensive quizzes, flashcards, and detailed explanations. Enhance your knowledge of real estate principles, laws, and regulations essential for passing the 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!

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The best description of a holder in due course is?

A mortgage broker
A real estate agent
A note purchaser
A loan servicer

The correct answer is: A note purchaser

A holder in due course is someone who has taken possession of a negotiable instrument for value, in good faith, and without notice of any defects or issues. In comparison, a mortgage broker (A) typically arranges loans between borrowers and lenders, but does not hold the note itself. A real estate agent (B) assists buyers and sellers in the process of buying and selling property and is not typically involved in the note itself. A loan servicer (D) is responsible for collecting payments on a loan, but does not hold the note itself. Only a note purchaser (C) meets the criteria for a holder in due course.