California Real Estate Exam Multiple Choice Questions and answers( 100% verified answers)latest update 2023
California Real Estate Exam Multiple
Choice Questions and answers( 100%
verified answers)latest update 2023
An appraiser’s definition of “Value” would be:
a. present worth of all rights to future benefits arising out of ownership.
b. the ability of one commodity to command other commodities in exchange. c. relationship between
the thing desired and the potential purchaser.
d. all of the above. – correct answers d. all of the above.
These are elements of value.
Which of the following abbreviations is associated with the FHA?
a. NAR
b. CPM
c. MIP/MMI
d. MBA – correct answers c. MIP/MMI
MIP – Mortgage Insurance Premium/Mutual Mortgage Insurance.
An investor group recently sold a parcel of land for $217,500, which was 45% more than they paid for it.
The land is described as follows: N½ of the NW¼ of the SE¼ of Section 13 plus the W½ of the NE¼ of
Section 13. What was the original price they paid per acre for the property?
a. $1,500
b. $1,200
c. $1,000
d. $750 – correct answers a. $1,500
California Real Estate Exam Multiple
Choice Questions and answers( 100%
verified answers)latest update 2023
$217,500 ÷ 145% (1.45) = $150,000 original price
Acreage: N½ of the NW¼ of the SE¼ = 20 acres
W½ of the NE¼ = 80 acres
Therefore, price per acre = $150,000 ÷ 100 = $1,500.
Which of the following is NOT a lien?
a. Encumbrance
b. Homestead
c. Zoning
d. All of the above – correct answers d. All of the above
A lien is a charge against property, whereby the property is made security for payment of the debt, i.e.,
attachment.
A property sells for $121,000. The purchaser gives $10,000 down payment, agrees to place an additional
$5,000 down, and ta ke over an existing VA first loan of $100,000, with the remainder to be in the form
of a 2nd note and trust deed. For these cond itions, how much would the documentary tax stamps be?
a. $1.10
b. $5.50
c. $133.10
d. $23.10 – correct answers d. $23.10
Do NOT pay on old existing loan being taken over. Therefore, ($121,000 – 100,000) ÷ 1,000 x ($1.10) =
21.0 x $1.10 = $23.10.
California Real Estate Exam Multiple
Choice Questions and answers( 100%
verified answers)latest update 2023
If an appraiser were called upon to evaluate a public building, which had unique and distinctive
architecture, he would employ which of the following methods of valuation?
a. Replacement (cost approach)
b. Comparison
c. Capitalization
d. None of the above – correct answers a. Replacement (cost approach)
Since there is no income for capitalization and no means for comparing sales, replacement cost is the
only approach available.
The members of the National Association of Real Estate Brokers are called:
a. Realtors®.
b. Consolidated Brokers.
c. Realtists.
d. None of the above. – correct answers c. Realtists.
If the taxes on a newly acquired property will amount to 1.25% of the purchase price, what will the first
installment (6 months) bill for a home costing $125,500 be?
a. $765.35
b. $742.51
c. $784.38
d. $795.97 – correct answers c. $784.38
$125,500 x (.0125) ÷ 2 = $784.38.
California Real Estate Exam Multiple
Choice Questions and answers( 100%
verified answers)latest update 2023
The best source for establishing the age of a home would be the:
a. county tax assessor.
b. building and safety department.
c. county recorder’s office.
d. either a or b. – correct answers a. county tax assessor.
The county tax assessor is the best source for establishing the age of a home.
“Gross multiplier” is used to determine value of certain types of income properties. It is determined by:
a. dividing the gross rental income by the appraised value. b. multiplying the market price by the
capitalization rate.
c. dividing the sales price by the gross monthly rental.
d. multiplying the gross monthly rental by a reasonable cap rate. – correct answers c. dividing the sales
price by the gross monthly rental.
Gross Rent Multiplier is a rough, quick way of converting gross rent into market value.
Which of the following could be used with a purchaser without the immediate involvement of a title
change?
a. Grant deed
b. Land contract
c. Quit claim deed
d. Warranty deed – correct answers b. Land contract
Powered by https://learnexams.com/search/study?query=