California Real Estate Exam Questions
With Correct Answers
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 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 - CORRECT 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 - CORRECT 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
|
c. Zoning
|
,d. All of the above - CORRECT 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 - CORRECT ANSWER✔✔-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.
| | | | | | | | | | |
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 ANSWER✔✔-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 ANSWER✔✔-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
|
With Correct Answers
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 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 - CORRECT 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 - CORRECT 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
|
c. Zoning
|
,d. All of the above - CORRECT 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 - CORRECT ANSWER✔✔-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.
| | | | | | | | | | |
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 ANSWER✔✔-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 ANSWER✔✔-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
|
