CA Real Estate State Exam Crash
Course Questions & Complete
Solutions
C - quiet title action
Answer Feedback: A quiet title action is proceeding to establish an individual's right to
ownership of real property against one or more adverse claimants. - correct answer ✔✔How
are ownership rights and interest in real property established by way of a court proceeding?
A - cloud on title
B - equitable use
C- quiet title action
D - quitclaim
D - constructive notice
Answer Feedback: Constructive notice is given by taking physical possession or by recording an
instrument. - correct answer ✔✔The recording of an instrument gives:
A - actual notice
B - passive notice
C - absolute notice
D - constructive notice
,A - progressive
Answer Feedback: The more you make, the more you are taxed. - correct answer ✔✔Federal
income tax rates on ordinary income are:
A - progressive
B - equal
C - flat
D - digressive
C - a gift
Answer Feedback: This describes a gift which is the only right choice of a voluntary transfer
without consideration (money). - correct answer ✔✔When title of a property is voluntary
transferred without any money consideration, this would be considered:
A - avulsion
B - eminent domain
C - a gift
D - foreclosure
D - Assessment appeals board
Answer Feedback: You would contact this department to plead your case. - correct answer
✔✔Who would you contact if you feel your property has been over assessed by the county
assessor?
A - Local housing council
,B - Board of equalization
C - County tax collector
D - Assessment appeals board
A - supplement tax based on the difference between the old assessed value and the new
assessed value for the remaining fiscal year
Answer Feedback: When a property is sold for more than the assessed value, the new buyer will
receive a supplemental tax bill based on the new assessed value. - correct answer ✔✔A single
family home that had an assessed value that was much lower than the current market value
was sold on November 3rd at its current market value. What will the new owners have to pay?
A - supplement tax based on the difference between the old assessed value and the new
assessed value for the remaining fiscal year
B - nothing
C - a prorated amount of tax
D - a flat tax of 10%
B - cost of a fence
Answer Feedback: A fence is a capital improvement and cannot be deducted as an expense for
tax purposes. - correct answer ✔✔An income property owner was figuring out their net income
for tax purposes. They took the gross income and deducted certain expenses. What cannot be
deducted?
A - management expenses
B - cost of a fence
C - interest for a loan
D - depreciation
, A - loss of rental due to vacancies
Answer Feedback: Vacancy losses cannot be deducted from income. - correct answer ✔✔When
referring to a building bought for income purposes, the owner can deduct all of the following
for income tax purposes, except:
A - loss of rental due to vacancies
B - depreciation when the property value increases
C - interest payments on the second trust deed
D - cost of repairing the vacant units
A - depreciated value of the building
Answer Feedback: Depreciated value has to do with the adjusted costs basis of the building. -
correct answer ✔✔A sale leaseback purchaser would be least concerned about the:
A - depreciated value of the building
B - condition of the improvement
C - location of the property
D - creditworthiness of the tenant
C - It has perpetual existence
Answer Feedback: Corporations don't die and since one of the characteristics of joint tenancy is
the right of survivorship, a corporation owning real property in "joint tenancy" would be an
unfair advantage. Death is a requirement. - correct answer ✔✔Why can a corporation not
qualify as a "joint tenant" for ownership interest of real property?
Course Questions & Complete
Solutions
C - quiet title action
Answer Feedback: A quiet title action is proceeding to establish an individual's right to
ownership of real property against one or more adverse claimants. - correct answer ✔✔How
are ownership rights and interest in real property established by way of a court proceeding?
A - cloud on title
B - equitable use
C- quiet title action
D - quitclaim
D - constructive notice
Answer Feedback: Constructive notice is given by taking physical possession or by recording an
instrument. - correct answer ✔✔The recording of an instrument gives:
A - actual notice
B - passive notice
C - absolute notice
D - constructive notice
,A - progressive
Answer Feedback: The more you make, the more you are taxed. - correct answer ✔✔Federal
income tax rates on ordinary income are:
A - progressive
B - equal
C - flat
D - digressive
C - a gift
Answer Feedback: This describes a gift which is the only right choice of a voluntary transfer
without consideration (money). - correct answer ✔✔When title of a property is voluntary
transferred without any money consideration, this would be considered:
A - avulsion
B - eminent domain
C - a gift
D - foreclosure
D - Assessment appeals board
Answer Feedback: You would contact this department to plead your case. - correct answer
✔✔Who would you contact if you feel your property has been over assessed by the county
assessor?
A - Local housing council
,B - Board of equalization
C - County tax collector
D - Assessment appeals board
A - supplement tax based on the difference between the old assessed value and the new
assessed value for the remaining fiscal year
Answer Feedback: When a property is sold for more than the assessed value, the new buyer will
receive a supplemental tax bill based on the new assessed value. - correct answer ✔✔A single
family home that had an assessed value that was much lower than the current market value
was sold on November 3rd at its current market value. What will the new owners have to pay?
A - supplement tax based on the difference between the old assessed value and the new
assessed value for the remaining fiscal year
B - nothing
C - a prorated amount of tax
D - a flat tax of 10%
B - cost of a fence
Answer Feedback: A fence is a capital improvement and cannot be deducted as an expense for
tax purposes. - correct answer ✔✔An income property owner was figuring out their net income
for tax purposes. They took the gross income and deducted certain expenses. What cannot be
deducted?
A - management expenses
B - cost of a fence
C - interest for a loan
D - depreciation
, A - loss of rental due to vacancies
Answer Feedback: Vacancy losses cannot be deducted from income. - correct answer ✔✔When
referring to a building bought for income purposes, the owner can deduct all of the following
for income tax purposes, except:
A - loss of rental due to vacancies
B - depreciation when the property value increases
C - interest payments on the second trust deed
D - cost of repairing the vacant units
A - depreciated value of the building
Answer Feedback: Depreciated value has to do with the adjusted costs basis of the building. -
correct answer ✔✔A sale leaseback purchaser would be least concerned about the:
A - depreciated value of the building
B - condition of the improvement
C - location of the property
D - creditworthiness of the tenant
C - It has perpetual existence
Answer Feedback: Corporations don't die and since one of the characteristics of joint tenancy is
the right of survivorship, a corporation owning real property in "joint tenancy" would be an
unfair advantage. Death is a requirement. - correct answer ✔✔Why can a corporation not
qualify as a "joint tenant" for ownership interest of real property?
