CALIFORNIA REAL ESTATE ACTUAL EXAM QUESTIONS AND
CORRECT DETAILED ANSWERS (VERIFIED ANSWERS)
|ALREADY GRADED A+
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 answers ✅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 answers ✅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 answers ✅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 answers ✅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 answers ✅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 answers ✅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:
CORRECT DETAILED ANSWERS (VERIFIED ANSWERS)
|ALREADY GRADED A+
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 answers ✅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 answers ✅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 answers ✅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 answers ✅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 answers ✅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 answers ✅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:
