California Real Estate Exam
Multiple Choice Questions 2026
Exam All Answers and
Illustrations Given
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. - 🧠ANSWER ✔✔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 - 🧠ANSWER ✔✔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 - 🧠ANSWER ✔✔a. $1,500
$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
3
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2026. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
, c. Zoning
d. All of the above - 🧠ANSWER ✔✔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 - 🧠ANSWER ✔✔d. $23.10
Multiple Choice Questions 2026
Exam All Answers and
Illustrations Given
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. - 🧠ANSWER ✔✔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 - 🧠ANSWER ✔✔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 - 🧠ANSWER ✔✔a. $1,500
$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
3
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2026. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
, c. Zoning
d. All of the above - 🧠ANSWER ✔✔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 - 🧠ANSWER ✔✔d. $23.10
