California Real Estate Practice
Practice Exam
1 of 50 - Sal bought a personal residence for $150,000. He made
$150,000 of improvements during the three years he lived in it before
he sold it. He sold the home for $750,000 and paid $50,000 in selling
expenses, including the broker's commission. On what amount will he
pay capital gains tax?
$150,000
You answered incorrectly
Remember that there is a $250,000 exclusion on capital gains tax for the
sale of an individual's personal residence. So, $750,000 sale price –
($150,000 + $150,000) = $450,000 - $50,000 selling expenses = $400,000 -
$250,000 exclusion = $150,000 capital gain to be taxed.
2 of 50 - Which of the following would not qualify as a 1031 exchange?
A rental condominium for a recreational vehicle
You answered correctly
3 of 50 - When doing research to recommend a reasonable listing price
for a home, the most critical part of the research deals with analyzing:
Selling prices of recently sold homes
You answered correctly
4 of 50 - Which of the following is a credit to the seller on the
settlement statement?
Sales price
You answered correctly
5 of 50 - Alex makes an offer to purchase one of Bill’s listings. Bill
cannot contact the seller. In the meantime, Bill gets another offer on
the property from another buyer at a higher price. What should Bill do?
Present both offers to the seller.
You answered correctly
6 of 50 - Greg grew up in and lives in a rural area. He’s very
comfortable selling that type of property and knows he can work well
with clients in that area. What property type will be his specialty?
Agricultural
You answered correctly
7 of 50 - Glenna and Amanda just bought their first home. They will
have a number of new expenses as a result of this purchase. Which of
these expenses is not associated with owning a home?
Personal property tax
You answered correctly
, 8 of 50 - Tim thinks his buyers are ready to make an offer. He asks,
“Which one of the children gets the basement bedroom with the
private entrance?” What kind of closing technique is Tim using?
Bonus
Alternative
Ownership
Standing-room-only
You answered correctly
9 of 50 - Agent John just listed a home in a mid-range priced
neighborhood. Which of these ad headlines would probably be the
least effective for this home?
Large Back Yard
Three Bedrooms
$125,000
Needs Paint
You answered correctly
10 of 50 - Greg and Wanda Sandler purchased their home 35 years ago
and it was paid off at the end of thirty years. In order to supplement
their fixed income, the Sandlers receive monthly checks from their
bank. Most likely, what did they get?
Home equity loan
Amortized loan
Senior citizen loan
Reverse annuity mortgage
You answered correctly
11 of 50 - Seller Kim tells her agent Greg that she would be willing to
accept $185,000 on her $205,000 listed home. There are no offers on
the property during the 6-month listing period and the listing expires.
Several weeks later when showing another home to a buyer, Greg
mentions that Kim would have accepted less for her home. Which is
true?
Greg is violating the duties he owes to his new buyer.
Greg has put himself in a potential dual agency situation.
Greg has violated the duty of confidentiality to Kim.
Greg has no fiduciary responsibilities to Kim once the listing expired.
You answered correctly
12 of 50 - Fair Housing laws are designed to:
Give housing choices to the widest range of people.
Restrict the housing market.
Prohibit discrimination.
Ensure fair real estate negotiations.
Practice Exam
1 of 50 - Sal bought a personal residence for $150,000. He made
$150,000 of improvements during the three years he lived in it before
he sold it. He sold the home for $750,000 and paid $50,000 in selling
expenses, including the broker's commission. On what amount will he
pay capital gains tax?
$150,000
You answered incorrectly
Remember that there is a $250,000 exclusion on capital gains tax for the
sale of an individual's personal residence. So, $750,000 sale price –
($150,000 + $150,000) = $450,000 - $50,000 selling expenses = $400,000 -
$250,000 exclusion = $150,000 capital gain to be taxed.
2 of 50 - Which of the following would not qualify as a 1031 exchange?
A rental condominium for a recreational vehicle
You answered correctly
3 of 50 - When doing research to recommend a reasonable listing price
for a home, the most critical part of the research deals with analyzing:
Selling prices of recently sold homes
You answered correctly
4 of 50 - Which of the following is a credit to the seller on the
settlement statement?
Sales price
You answered correctly
5 of 50 - Alex makes an offer to purchase one of Bill’s listings. Bill
cannot contact the seller. In the meantime, Bill gets another offer on
the property from another buyer at a higher price. What should Bill do?
Present both offers to the seller.
You answered correctly
6 of 50 - Greg grew up in and lives in a rural area. He’s very
comfortable selling that type of property and knows he can work well
with clients in that area. What property type will be his specialty?
Agricultural
You answered correctly
7 of 50 - Glenna and Amanda just bought their first home. They will
have a number of new expenses as a result of this purchase. Which of
these expenses is not associated with owning a home?
Personal property tax
You answered correctly
, 8 of 50 - Tim thinks his buyers are ready to make an offer. He asks,
“Which one of the children gets the basement bedroom with the
private entrance?” What kind of closing technique is Tim using?
Bonus
Alternative
Ownership
Standing-room-only
You answered correctly
9 of 50 - Agent John just listed a home in a mid-range priced
neighborhood. Which of these ad headlines would probably be the
least effective for this home?
Large Back Yard
Three Bedrooms
$125,000
Needs Paint
You answered correctly
10 of 50 - Greg and Wanda Sandler purchased their home 35 years ago
and it was paid off at the end of thirty years. In order to supplement
their fixed income, the Sandlers receive monthly checks from their
bank. Most likely, what did they get?
Home equity loan
Amortized loan
Senior citizen loan
Reverse annuity mortgage
You answered correctly
11 of 50 - Seller Kim tells her agent Greg that she would be willing to
accept $185,000 on her $205,000 listed home. There are no offers on
the property during the 6-month listing period and the listing expires.
Several weeks later when showing another home to a buyer, Greg
mentions that Kim would have accepted less for her home. Which is
true?
Greg is violating the duties he owes to his new buyer.
Greg has put himself in a potential dual agency situation.
Greg has violated the duty of confidentiality to Kim.
Greg has no fiduciary responsibilities to Kim once the listing expired.
You answered correctly
12 of 50 - Fair Housing laws are designed to:
Give housing choices to the widest range of people.
Restrict the housing market.
Prohibit discrimination.
Ensure fair real estate negotiations.
