California Real Estate Exam Multiple Choice
Questions||questions and answers with
rationales/graded A+/2026 update/100% correct
/instant download
Save
Terms in this set (510)
An appraiser's definition of "Value" d. all of the above.
would be:
These are elements of value.
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.
Which of the following abbreviations c. MIP/MMI
is associated with the FHA?
MIP - Mortgage Insurance Premium/Mutual
a. NAR Mortgage Insurance.
b. CPM
c. MIP/MMI
d. MBA
,An investor group recently sold a a. $1,500
parcel of land for $217,500, which
was 45% more than they paid for it. $217,500 ÷ 145% (1.45) = $150,000 original price
The land is described as follows: N½ Acreage: N½ of the NW¼ of the SE¼ = 20 acres
of the NW¼ of the SE¼ of Section 13 W½ of the NE¼ = 80 acres
plus the W½ of the NE¼ of Section Therefore, price per acre = $150,000 ÷ 100 = $1,500.
13. What was the original price they
paid per acre for the property?
a. $1,500
b. $1,200
c. $1,000
d. $750
Which of the following is NOT a lien? d. All of the above
a. Encumbrance A lien is a charge against property, whereby the
b. Homestead property is made security for payment of the debt,
c. Zoning i.e., attachment.
d. All of the above
,A property sells for $121,000. The d. $23.10
purchaser gives $10,000 down
payment, agrees to place an Do NOT pay on old existing loan being taken over.
additional $5,000 down, and ta ke Therefore, ($121,000 - 100,000) ÷ 1,000 x ($1.10) = 21.0
over an existing VA first loan of x $1.10 = $23.10.
$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
If an appraiser were called upon to a. Replacement (cost approach)
evaluate a public building, which had
unique and distinctive architecture, Since there is no income for capitalization and no
he would employ which of the means for comparing sales, replacement cost is the
following methods of valuation? only approach available.
a. Replacement (cost approach)
b. Comparison
c. Capitalization
d. None of the above
The members of the National c. Realtists.
Association of Real Estate Brokers
are called:
a. Realtors®.
b. Consolidated Brokers.
c. Realtists.
d. None of the above.
, If the taxes on a newly acquired c. $784.38
property will amount to 1.25% of the
purchase price, what will the first $125,500 x (.0125) ÷ 2 = $784.38.
installment (6 months) bill for a home
costing $125,500 be?
a. $765.35
b. $742.51
c. $784.38
d. $795.97
The best source for establishing the a. county tax assessor.
age of a home would be the:
The county tax assessor is the best source for
a. county tax assessor. establishing the age of a home.
b. building and safety department.
c. county recorder's office.
d. either a or b.
"Gross multiplier" is used to c. dividing the sales price by the gross monthly
determine value of certain types of rental.
income properties. It is determined
by: Gross Rent Multiplier is a rough, quick way of
converting gross rent into market value.
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.
Questions||questions and answers with
rationales/graded A+/2026 update/100% correct
/instant download
Save
Terms in this set (510)
An appraiser's definition of "Value" d. all of the above.
would be:
These are elements of value.
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.
Which of the following abbreviations c. MIP/MMI
is associated with the FHA?
MIP - Mortgage Insurance Premium/Mutual
a. NAR Mortgage Insurance.
b. CPM
c. MIP/MMI
d. MBA
,An investor group recently sold a a. $1,500
parcel of land for $217,500, which
was 45% more than they paid for it. $217,500 ÷ 145% (1.45) = $150,000 original price
The land is described as follows: N½ Acreage: N½ of the NW¼ of the SE¼ = 20 acres
of the NW¼ of the SE¼ of Section 13 W½ of the NE¼ = 80 acres
plus the W½ of the NE¼ of Section Therefore, price per acre = $150,000 ÷ 100 = $1,500.
13. What was the original price they
paid per acre for the property?
a. $1,500
b. $1,200
c. $1,000
d. $750
Which of the following is NOT a lien? d. All of the above
a. Encumbrance A lien is a charge against property, whereby the
b. Homestead property is made security for payment of the debt,
c. Zoning i.e., attachment.
d. All of the above
,A property sells for $121,000. The d. $23.10
purchaser gives $10,000 down
payment, agrees to place an Do NOT pay on old existing loan being taken over.
additional $5,000 down, and ta ke Therefore, ($121,000 - 100,000) ÷ 1,000 x ($1.10) = 21.0
over an existing VA first loan of x $1.10 = $23.10.
$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
If an appraiser were called upon to a. Replacement (cost approach)
evaluate a public building, which had
unique and distinctive architecture, Since there is no income for capitalization and no
he would employ which of the means for comparing sales, replacement cost is the
following methods of valuation? only approach available.
a. Replacement (cost approach)
b. Comparison
c. Capitalization
d. None of the above
The members of the National c. Realtists.
Association of Real Estate Brokers
are called:
a. Realtors®.
b. Consolidated Brokers.
c. Realtists.
d. None of the above.
, If the taxes on a newly acquired c. $784.38
property will amount to 1.25% of the
purchase price, what will the first $125,500 x (.0125) ÷ 2 = $784.38.
installment (6 months) bill for a home
costing $125,500 be?
a. $765.35
b. $742.51
c. $784.38
d. $795.97
The best source for establishing the a. county tax assessor.
age of a home would be the:
The county tax assessor is the best source for
a. county tax assessor. establishing the age of a home.
b. building and safety department.
c. county recorder's office.
d. either a or b.
"Gross multiplier" is used to c. dividing the sales price by the gross monthly
determine value of certain types of rental.
income properties. It is determined
by: Gross Rent Multiplier is a rough, quick way of
converting gross rent into market value.
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.
