California Real Estate Exam Questions With Correct Answers

California Real Estate Exam Questions
With Correct Answers

An appraiser's definition of "Value" would be:
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a. present worth of all rights to future benefits arising out of ownership.
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b. the ability of one commodity to command other commodities in
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exchange. c. relationship between the thing desired and the potential
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purchaser.
d. all of the above. - CORRECT ANSWER✔✔-d. all of the above.
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These are elements of value.
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Which of the following abbreviations is associated with the FHA?
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a. NAR
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b. CPM
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c. MIP/MMI
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d. MBA - CORRECT ANSWER✔✔-c. MIP/MMI
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,MIP - Mortgage Insurance Premium/Mutual Mortgage Insurance.
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An investor group recently sold a parcel of land for $217,500, which was
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45% more than they paid for it. The land is described as follows: N½ of
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the NW¼ of the SE¼ of Section 13 plus the W½ of the NE¼ of Section 13.
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What was the original price they paid per acre for the property?
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a. $1,500
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b. $1,200
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c. $1,000
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d. $750 - CORRECT ANSWER✔✔-a. $1,500
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$217,500 ÷ 145% (1.45) = $150,000 original price
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Acreage: N½ of the NW¼ of the SE¼ = 20 acres
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W½ of the NE¼ = 80 acres
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Therefore, price per acre = $150,000 ÷ 100 = $1,500.
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Which of the following is NOT a lien?
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a. Encumbrance
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b. Homestead
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c. Zoning
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,d. All of the above - CORRECT ANSWER✔✔-d. All of the above
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A lien is a charge against property, whereby the property is made
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security for payment of the debt, i.e., attachment.
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A property sells for $121,000. The purchaser gives $10,000 down
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payment, agrees to place an additional $5,000 down, and ta ke over an
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existing VA first loan of $100,000, with the remainder to be in the form
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of a 2nd note and trust deed. For these cond itions, how much would
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the documentary tax stamps be?
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a. $1.10|




b. $5.50|




c. $133.10
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d. $23.10 - CORRECT ANSWER✔✔-d. $23.10
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Do NOT pay on old existing loan being taken over. Therefore, ($121,000 -
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100,000) ÷ 1,000 x ($1.10) = 21.0 x $1.10 = $23.10.
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If an appraiser were called upon to evaluate a public building, which had
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|unique and distinctive architecture, he would employ which of the
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following methods of valuation? | | |

, a. Replacement (cost approach)
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b. Comparison
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c. Capitalization
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d. None of the above - CORRECT ANSWER✔✔-a. Replacement (cost
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approach)


Since there is no income for capitalization and no means for comparing
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sales, replacement cost is the only approach available.
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The members of the National Association of Real Estate Brokers are
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called:


a. Realtors®.
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b. Consolidated Brokers.
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c. Realtists.
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d. None of the above. - CORRECT ANSWER✔✔-c. Realtists.
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If the taxes on a newly acquired property will amount to 1.25% of the
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purchase price, what will the first installment (6 months) bill for a home
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costing $125,500 be?
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a. $765.35
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