Real Estate Principles Exam Questions With
Accurate Answers 2025\2026 A+ Grade
Real Estate Taxation
- accurate answers-Proposition 13 limits maximum annual tax on real
property to
- 1 percent of base value plus
- InDebtedness approved prior to passage of Prop 13 and
- Bonded indebtedness approved by voters after July 1. 1978
Proposition 13
- accurate answers-The maximum annual tax on real property can be no more
than
- 1% of base year value plus
- an additional amount to pay for indebtedness
- bonded indebtedness approved by voters after July 1, 1978
Taxable Property Value
- accurate answers-Base value is market value as of Feb 28, 1975, or date of
subsequent reassessment event plus 2 percent annual inflation factor
- When property is sold or has changed ownership, assessed value is full of
cash value as of the date of the sale or change of ownership
- For new construction, assessed value is full of cash value as of completion
- Assessed value can be reduced during a period of negative inflation
Reassessment Event
- accurate answers-- Does not occur
- in transfer between spouses
- in transfer of principal residence and first $1 million of other real property
between parents and children
- in new purchase within the same county by homeowner over age 55
- in new purchase by severely disabled homeowner
,Assessed Value
- accurate answers-For property tax purposes, is the property value to which
the tax is applied.
Property Tax Year
- accurate answers-- Jan 1, next year's tax is lien on property
- July 1 to June 30 is tax fiscal year
- Nov 1, first tax installment due
- Dec 10, 5:00pm, first installment
- Feb 1, second tax installment due
- April 10, 5pm, second installment due
Tax Lien
- accurate answers-A legal claim by a government entity to take an
individual's property or income when their taxes are not paid in full
Special rules
- accurate answers-Purchase and change of ownership do not include:
- The transfer of real property between spouse and
- The transfer of a principal residence and the first $1 million in assessed
value of other property between parents and children.
County assessor
- accurate answers-the elected official responsible for determining assessed
values and preparing the tax roll
Change in ownership statement
- accurate answers-Anyone who acquires an interest in real property.
Exemptions
- accurate answers-1) Intangible property (such as stocks and promissory
notes)
2) Personal property and household furnishings of individuals
3) property owned by a government, unless the property is outside the
jurisdiction of the public entity and was taxable before acquisition. or it is new
construction replacing property that was taxable when acquired;
4) Property used exclusively for religious, charitable, or hospital purposes and
, 5) property owned by nonprofit organizations, such as private schools and
colleges.
Redemption
- accurate answers-Unpaid taxes are subject to delinquency penalties. Over
time the amount owed also is increased by additional costs, interest, and
redemption penalties.
Special Assessments
- accurate answers-Can be imposed on real property for a specific local
purpose, such as street construction or repair.
Benefit Assessments
- accurate answers-Also called a local assessment, levy based on other than
assessed value, special benefit assessment, or special assessment. It is
different in form and effect from a true special assessment.
homeowner's exemption
- accurate answers-An owner occupied residence, including a condo or duplex
unit.
Tax Lien
- accurate answers-A legal claim by a government entity to take an
individual's property or income when their taxes are not paid in full
Documentary Transfer Tax
- accurate answers-CA allows a city or county to impose a documentary
transfer tax on all transfer of real property located in the jurisdiction.
Tax rate
- accurate answers-55 cents per $500 or fraction of $500 of the consideration
(price) paid for the property.
Taxation of Manufactured Homes
- accurate answers-Can be either personal property or real property.
Qualification as real property
- accurate answers-- a building permit is obtained
- the home is attached to a foundation
Accurate Answers 2025\2026 A+ Grade
Real Estate Taxation
- accurate answers-Proposition 13 limits maximum annual tax on real
property to
- 1 percent of base value plus
- InDebtedness approved prior to passage of Prop 13 and
- Bonded indebtedness approved by voters after July 1. 1978
Proposition 13
- accurate answers-The maximum annual tax on real property can be no more
than
- 1% of base year value plus
- an additional amount to pay for indebtedness
- bonded indebtedness approved by voters after July 1, 1978
Taxable Property Value
- accurate answers-Base value is market value as of Feb 28, 1975, or date of
subsequent reassessment event plus 2 percent annual inflation factor
- When property is sold or has changed ownership, assessed value is full of
cash value as of the date of the sale or change of ownership
- For new construction, assessed value is full of cash value as of completion
- Assessed value can be reduced during a period of negative inflation
Reassessment Event
- accurate answers-- Does not occur
- in transfer between spouses
- in transfer of principal residence and first $1 million of other real property
between parents and children
- in new purchase within the same county by homeowner over age 55
- in new purchase by severely disabled homeowner
,Assessed Value
- accurate answers-For property tax purposes, is the property value to which
the tax is applied.
Property Tax Year
- accurate answers-- Jan 1, next year's tax is lien on property
- July 1 to June 30 is tax fiscal year
- Nov 1, first tax installment due
- Dec 10, 5:00pm, first installment
- Feb 1, second tax installment due
- April 10, 5pm, second installment due
Tax Lien
- accurate answers-A legal claim by a government entity to take an
individual's property or income when their taxes are not paid in full
Special rules
- accurate answers-Purchase and change of ownership do not include:
- The transfer of real property between spouse and
- The transfer of a principal residence and the first $1 million in assessed
value of other property between parents and children.
County assessor
- accurate answers-the elected official responsible for determining assessed
values and preparing the tax roll
Change in ownership statement
- accurate answers-Anyone who acquires an interest in real property.
Exemptions
- accurate answers-1) Intangible property (such as stocks and promissory
notes)
2) Personal property and household furnishings of individuals
3) property owned by a government, unless the property is outside the
jurisdiction of the public entity and was taxable before acquisition. or it is new
construction replacing property that was taxable when acquired;
4) Property used exclusively for religious, charitable, or hospital purposes and
, 5) property owned by nonprofit organizations, such as private schools and
colleges.
Redemption
- accurate answers-Unpaid taxes are subject to delinquency penalties. Over
time the amount owed also is increased by additional costs, interest, and
redemption penalties.
Special Assessments
- accurate answers-Can be imposed on real property for a specific local
purpose, such as street construction or repair.
Benefit Assessments
- accurate answers-Also called a local assessment, levy based on other than
assessed value, special benefit assessment, or special assessment. It is
different in form and effect from a true special assessment.
homeowner's exemption
- accurate answers-An owner occupied residence, including a condo or duplex
unit.
Tax Lien
- accurate answers-A legal claim by a government entity to take an
individual's property or income when their taxes are not paid in full
Documentary Transfer Tax
- accurate answers-CA allows a city or county to impose a documentary
transfer tax on all transfer of real property located in the jurisdiction.
Tax rate
- accurate answers-55 cents per $500 or fraction of $500 of the consideration
(price) paid for the property.
Taxation of Manufactured Homes
- accurate answers-Can be either personal property or real property.
Qualification as real property
- accurate answers-- a building permit is obtained
- the home is attached to a foundation
