California Real Estate Exam Multiple Choice Questions
with Solutions (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 \u2705d. 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 \u2705c. MIP\/MMI
MIP – Mortgage Insurance Premium\/Mutual Mortgage Insurance.<\/p>\n\n\n\n
California Real Estate Exam Multiple Choice Questions
with Solutions (Latest Update 2023)
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: N\u00bd of the NW\u00bc
of the SE\u00bc of Section 13 plus the W\u00bd of the NE\u00bc 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 \u2705a. $1,500
$217,500 \u00f7 145% (1.45) = $150,000 original price
Acreage: N\u00bd of the NW\u00bc of the SE\u00bc = 20 acres
W\u00bd of the NE\u00bc = 80 acres
Therefore, price per acre = $150,000 \u00f7 100 = $1,500.
Which of the following is NOT a lien?
a. Encumbrance<\/p>\n\n\n\n
California Real Estate Exam Multiple Choice Questions
with Solutions (Latest Update 2023)
b. Homestead
c. Zoning
d. All of the above – correct answers \u2705d. 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 \u2705d. $23.10<\/p>\n\n\n\n
California Real Estate Exam Multiple Choice Questions
with Solutions (Latest Update 2023)
Do NOT pay on old existing loan being taken over. Therefore, ($121,000 –
100,000) \u00f7 1,000 x ($1.10) = 21.0 x $1.10 = $23.10.
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 \u2705a. 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\u00ae.
b. Consolidated Brokers.<\/p>\n\n\n\n
Real Estate Salesperson California State Exam Questions
Solved (Latest Update 2023)
Which of the following is most vital or important in planning a subdivision: –
correct answers \u2705Market Analysis
When rent is computed on the gross sales of a business occupying real
property, the lease is correctly termed: – correct answers \u2705Percentage
Lease
What is not an adequate method of transferring property? – correct answers
\u2705Executive Sale
What is considered personal property? – correct answers \u2705Existing
Mortgage
If an income property is valued at $100,000 based on an 8% capitalization
rate, what would be the value of the property if a 10% return is required: –
correct answers \u2705$80,000
$100,000 Value of Property
x 0.08 Capitalization Rate<\/p>\n\n\n\n
Real Estate Salesperson California State Exam Questions
Solved (Latest Update 2023)
=$8,000 Net Income
$8,000 Net Income
\u00f7 0.10 of Return
=$80,000 Value of Property
The value of the best property in the neighborhood will be adversely
affected by the presence of comparatively substandard property is a
statement relating to value and is know as the Principle of: – correct answers
\u2705Regression
Which of the following actions or events would result in the termination of a
sales escrow: – correct answers \u2705Mutual consent of the parties
The measure of goods and services produced by the nation during any one
calendar year is the definition of which of the following: – correct answers
\u2705Gross National Product<\/p>\n\n\n\n
Real Estate Salesperson California State Exam Questions
Solved (Latest Update 2023)
An easement on real property can be terminated by: – correct answers \u2705A
release signed by the holder of the dominant tenement
An appraiser’s narrative appraisal report of a single-family residence
probably would contain no reference to: – correct answers \u2705The type of
financing available
When identical or highly similar properties are offered for sale, the property
offered at the lower price attracts the greatest demand. That statement is an
illustration of which of the following principles of appraising: – correct
answers \u2705Substitution
When the public records have been examined in order to determine the
chain of title to a parcel of real property, a written summary of that chain of
title is known as: – correct answers \u2705An abstract of title
The remedy of unlawful detainer action is used by offended: – correct
answers \u2705Lessors<\/p>\n\n\n\n
Real Estate Salesperson California State Exam Questions
Solved (Latest Update 2023)
Freehold estates would include which of the following: – correct answers
\u2705A life estate
If a lender accepts a deed in lieu of foreclosure from a trustor, the lender: –
correct answers \u2705Will assume any junior liens
Which of the following would usually be true concerning a hard money
second trust deed: – correct answers \u2705It’s secured by real estate and given
to a third party to obtain a cash loan
Betty is beneficiary of a $15,000 deed of trust on a single-family home
located in Long Beach, CA. Trustor Milo made $2,000 in payments, then
defaulted. At a trustee’s sale, the property sold for $10,000, resulting in a
$3,000 deficiency. In California, a deficiency judgement cannot be obtained:<\/p>\n\n\n\n
California Real Estate Salesperson Exam Prep (Q&As)
Latest Update 2023
When agent Andy took a listing, he promised the seller that he would
advertise the property in a magazine until it was sold. Andy told the seller he
submitted the ad, but the magazine said Andy never contacted them or
submitted the ad. Andy is guilty of: – correct answers \u2705Actual Fraud
A fee simple estate is: – correct answers \u2705an estate of inheritance.
If an appraiser is appraising a special purpose property he would probably
use the: – correct answers \u2705Cost Approach
The main purpose of “RESPA” (Real Estate Settlement Procedures Act) is to: –
correct answers \u2705To provide consumers with enough information to enable
them to shop for settlement services
Definitions of market value is least concerned with: – correct answers
\u2705Market cost
What type if an appraisal license is required to appraise a commercial strip
mall valued at $700,000: – correct answers \u2705Certified general license;<\/p>\n\n\n\n
California Real Estate Salesperson Exam Prep (Q&As)
Latest Update 2023
Property taxes are described as “ad valorem” taxes. “Ad valorem” most
nearly means – correct answers \u2705According to value;
In order to comply with the regulations of the state Housing Law, a person
should seek the issuance of a building permit from: – correct answers \u2705the
local Department of Building and Safety
One of the main benefits of a sale-leaseback transaction would be; – correct
answers \u2705The ability of the seller to deduct al of his future rent payments
as business expenditures
A broker who holds a valid listing on a property places a classified ad for the
property containing only the following information “For Sale: 3 bedroom, 2
bath home with swimming pool. Asking price $165,000. Telephone 555-
9276″. This type of advertisement would be an example of a: – correct
answers \u2705Blind ad
A property owner lists his property for sale with a broker. During the
negotiations, the owner told the broker that the owner wanted $138,000 for
the property, and anything above that amount the broker could keep as his<\/p>\n\n\n\n
California Real Estate Exam Questions and Answers
(Latest Update 2023)
In reference to Property Taxes, “basis” or “cost” is – correct answers
\u2705Purchase price of prop plus cost of improvements.
How is a condominium unit owned? – correct answers \u2705Separate interest
How are common interests in a condo owned? – correct answers \u2705Equally
in undivided interest
Subdivided Land Laws refer to – correct answers \u2705Subdivisions of 5+ parcels
on 160 acres, regulated marketing & financing, and requires disclosures in
public report.
How long is a disclosure in public report for Subdivided Land Laws good for?<\/p>\n\n\n\n
California Real Estate Exam Questions and Answers
(Latest Update 2023)
Separating large parcels into smaller lots – correct answers \u2705Subdividing or
separating
Amount or size of land being increased by natural forces such as deposits by
wind or water. – correct answers \u2705Accretion
Gradual uncovering of land previously covered by water such as when a
stream changes course. – correct answers \u2705Reliction
The Statute of Limitations in the state of California allows how long to take
action? – correct answers \u27054 years
The process by which the court may seize real or personal property as
security for a satisfaction of monetary judgement. – correct answers
\u2705Attachment
When is a 20-day preliminary notice of a mechanics lien need to be issued? –
correct answers \u270520-days after the claimant (contractor) has first furnished
labor, services, equipment, or materials.<\/p>\n\n\n\n
California Real Estate Exam Questions and Answers
(Latest Update 2023)
What is the purpose of issuing a preliminary notice of a mechanics lien to a
claimant? – correct answers \u2705To inform concerned parties that the property
may be subject to liens arising out of contract.
What is the brokers relationship to the customer? – correct answers \u2705The
broker is the agent to the customer (customer employs the broker).
What is the agents (salesperson) relationship to the broker? – correct
answers \u2705The salesperson is the agent to the broker (the broker gives the
salesperson authority to act on his\/her behalf).
A Home Equity Line of Credit is – correct answers \u2705An Open Ended
Mortgage
An Open Ended Mortgage is – correct answers \u2705A type of note that permits
the borrower to obtain more money at a future date under the same deed of
trust.
Zoning is an example of – correct answers \u2705Police power<\/p>\n\n\n\n
California Real Estate Exam Questions and Answers
(Latest Update 2023)
Local jurisdictions have the authority to divide land into districts and impose
land use regulations to promote health, safety, and welfare of the public–
this is known as – correct answers \u2705Zoning
When can restrictions placed on a deed be removed? – correct answers
\u2705Never
What is the only restriction placed on a deed that is considered illegal? –
correct answers \u2705Race restrictions
Is an option contract bilateral or unilateral? – correct answers \u2705Unilateral
What does an option contract NOT do? – correct answers \u2705Create a legal
interest in a property
If a buyer has defaulted on on an original land contract which had been
recorded, this would result in a defective title, requiring legal action to clear
the title. This is called – correct answers \u2705a Quiet Title Action.<\/p>\n\n\n\n
California Real Estate License Exam 1 Questions and
Answers (Latest Update 2023)
1.1. A title was recorded for a parcel of real property vested in the name of
Johan Wilson, a single woman. After her marriage to William Roberts, she
executed a deed to the property only in the name of Johan Roberts, a
married woman. The discrepancy in the grantors name is:
A. Valid if William Roberts agrees to it
B. A defect on title that may cause title to be vested as tenants in common
C. Immaterial if the property is properly described
D. A defect which may cause a cloud on the title – correct answers \u2705A
defect which may cause a cloud on the title.
1.2. Which contract would be the most difficult for a buyer to obtain
financing?
A. Land Contract
B. FHA
C. VA
D. Conventional – correct answers \u2705Land Contract
1.3. When a broker runs an advertisement, the broker must disclose:
A. Last name of the broker
B. Name of the broker
C. Name of broker and salesperson<\/p>\n\n\n\n
California Real Estate License Exam 1 Questions and
Answers (Latest Update 2023)
D. Name of the salesperson – correct answers \u2705Name of the broker
1.4. Following in-house sales are true, except:
A. The listing agent can act as a dual agent
B. The listing broker can act as a buyers agent only
C. The broker may purchase the property himself
D. The seller may represent the seller only – correct answers \u2705The seller
may represent the seller only
1.5. The Federal Housing Administration (FHA) was created primarily:
A. To provide insurance for home loans in the secondary market
B. To insure the borrower
C. To provide insurance for home loans made by approved lender
D. To improve the economy for mortgage bankers – correct answers \u2705To
provide insurance for home loans made by approved lenders
1.6. Which of the following loans on a home would probably be made
without requiring a down payment from the borrower?
A. VA Loan
B. CAL-VET
C. FHA<\/p>\n\n\n\n
California Real Estate License Exam 1 Questions and
Answers (Latest Update 2023)
D. Conventional – correct answers \u2705VA Loan
1.7. A person who wishes to purchase a home using the Cal-Vet program
would send his application to:
A. Department of Real Estate
B. Real Estate Commissioner
C. Department of Veterans Affairs
D. Veterans Administration – correct answers \u2705Department of Veterans
Affairs
1.8. The item that would appear on the debit side of a buyer’s closing
statement would be:
A. Purchase Price
B. Prepaid Rents
C. Mortgage Insurance
D. Down Payment – correct answers \u2705Purchase Price
1.9. When dealing with the public, a broker may not:
A. Disclose any of his duties to other agents
B. Remain silent concerning material facts about a property known only by
himself<\/p>\n\n\n\n
California Real Estate License Exam 1 Questions and
Answers (Latest Update 2023)
C. Reject a listing if it is discriminatory or overpriced for minorities
D. All of the above – correct answers \u2705Remain silent concerning material
facts about a property known only by himself
1.10. Which of the following is the reason that a real estate agent must keep
his principal informed of material facts concerning a pending real estate
transaction?
A. When the agent is a fiduciary
B. When it’s printed on the purchase agreement
C. When the agent concerned with the commission which seller is paying
D. When the broker works only for the seller – correct answers \u2705When the
agent is a fiduciary
1.11. A buyer relied upon the fraudulent statement of the seller’s agent and
was damaged. The seller was unaware of the agent’s false statement, and he
tried to enforce the agreement. The buyer:
A. Could sue the seller for fraud
B. Could sue the seller’s agent for fraud
C. Has sufficient grounds for recission
D. Could do any of the above – correct answers \u2705Could sue the seller for
fraud, could sue the seller’s agent for fraud, has sufficient grounds for
recission<\/p>\n\n\n\n
CA Real Estate Exam 2023 (Assured Success) Correctly
Verified Answers
A rectangular lot contained 17,550 square feet. It measured 150 feet deep. A
man wanted to build a store and needed more land. He could buy one lot on
each side of this lot. Each of the side lots was the same size and the same
shape. Each was 150 feet deep. Each contained 6,000 square feet. If he
purchased all three lots, what would be the front footage: – correct answers
\u2705197;
When rent is computed on the gross sales of a business occupying real
property, the lease is correctly termed: – correct answers \u2705A percentage
lease.
If a man has a freehold estate, which of the following would result in his
having a less-than-freehold estate: – correct answers \u2705A: Sale and
leaseback;
If a man leased a store for only six months, he would have an: – correct
answers \u2705B: Estate for years;
An easement differs from a license in that a license: – correct answers \u2705D:
May be revoked.<\/p>\n\n\n\n
CA Real Estate Exam 2023 (Assured Success) Correctly
Verified Answers
The remedy of unlawful detainer action is used by offended: – correct
answers \u2705C: Lessors;
Which of the following is considered personal property: – correct answers
\u2705C: An existing mortgage;
Which of the following would not be classified as real property: – correct
answers \u2705D: Leasehold estates in residential properties.
All of the following are factors generally considered when determining
whether an item of personal property has become real property, except: –
correct answers \u2705C: Cost of the article;
Which of the following is not a test for a fixture: – correct answers \u2705D: The
time of attachment.
Which of the following loans would be most likely to qualify for FHA
insurance but not for a VA loan guarantee: – correct answers \u2705A: A loan to
purchase 1-4 units of residential rental property;<\/p>\n\n\n\n
CA Real Estate Exam 2023 (Assured Success) Correctly
Verified Answers
Bascomb purchased a parcel of real property, and received a standard policy
of title insurance. Bascomb would be protected against all of the following
items except: – correct answers \u2705B: Easements and liens on the property
not revealed by the public records;
When legal title is transferred as the result of the sale of real estate
encumbered by a deed of trust, it is always necessary: – correct answers
\u2705C: For the grantor to deliver a deed;
An ALTA policy of title insurance goes beyond the protection afforded by a
CLTA policy in guarding against: – correct answers \u2705C: The location of
property lines according to formal survey;
Jones, who does not have a real estate license, is the owner and president of
an investment firm. He advertises and sells properties for his clients. Since
these transactions involve real estate, who will prosecute him for violating
the real estate law: – correct answers \u2705A: The District Attorney;<\/p>\n\n\n\n
CA Real Estate Exam 2023 (Assured Success) Correctly
Verified Answers
The primary purpose of city and county building codes is to establish: –
correct answers \u2705B: Minimum standards for public health, safety, moral,
and general welfare;
Recorded title to a parcel of real property was vested in Mary Wilson, a
single woman. After her marriage to John Roberts, she executed a deed to
the property only in the name of Mary Roberts, a married woman. The
discrepancy in the grantor’s name is: – correct answers \u2705B: A defect which
may cause a cloud on the title;
On September 30, 1983, Daniels offered to buy Barnes’ home. The offer was
accepted and escrow opened. Barnes had purchased the home in 1978,
financing it by an FHA loan, on which he was then currently making
payments. A preliminary title report dated September 30, 1983 will: – correct
answers \u2705B: Show the particulars of a deed of trust with Barnes as trustor;
A valid deed must contain: – correct answers \u2705D: A granting clause.
: An agreement wherein one party agrees to reimburse the other party for
damages suffered in the event of a clearly defined risk, in exchange fo<\/p>\n","protected":false},"excerpt":{"rendered":"
California Real Estate Exam Multiple Choice Questionswith Solutions (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 inexchange. c. relationship between the thing desired and the potentialpurchaser.d. all of the above. – correct answers […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[25],"tags":[],"class_list":["post-117350","post","type-post","status-publish","format-standard","hentry","category-exams-certification"],"_links":{"self":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/117350","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/comments?post=117350"}],"version-history":[{"count":0,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/117350\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/media?parent=117350"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/categories?post=117350"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/tags?post=117350"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}