California Real Estate Exam 2023 Question
Bank, Over 700 Questions And Answers
Broker A receives two offers on Seller B's house, which is listed for sale at
$250,000. The first offer is for all cash at $200,000. The second offer is for 20%
down with 80% financing for the full price. What should the broker do with
respect to both offers?
Present both offers to the seller as soon as possible.
The two primary documents dealing with payment of a loan are the mortgage or
deed of trust and a
promissory note.
The term that best describes a continuous urban corridor joining at least two
cities is
megalopolis.
The term real property can also be described as
the bundle of rights.
The rights of a landowner to a river bordering her property are known as
riparian rights.
In the case of a transfer of ownership of a piece of real estate, a fixture is
normally
assumed to be included in the transfer.
A tenant who operates a jewelry store wants to take his jewelry cases with him at
the expiration of the lease. What is the best solution?
He may take the cases if removal will not cause substantial damage.
A legal description of property is not adequate unless
land boundaries are defined.
The lot and block system of property description is not also known as the
rectangular survey system.
What best describes the interests of the holder of a life estate?
possession, use, and ownership
How many acres does a section of land contain?
640
The requirement that multiple owners take title to property at the same time is a
characteristic of
joint tenancy.
The type of ownership that provides the most complete bundle of rights is
fee simple absolute.
Which are most similar to each other with respect to inheriting property?
joint tenancy and community property with right of survivorship (both allow for reversion
to remaining owners)
A statement of the goals and policies regarding growth of a community is a good
definition of the
general plan.
The primary difference between a common interest subdivision and a standard
subdivision is
,ownership of common areas.
Which of the following is a generic term for a group of people joining together to
invest in real estate?
syndicate
The proper way for a landowner who has physical difficulty in developing his
property to get relief is to obtain a
variance.
When is a landowner entitled to compensation for a change in zoning?
when the landowner is denied all practical economic use of the property
At which lot does the Subdivided Lands Law take effect?
the fifth lot
The state has enacted legislation providing special consideration or control for
development of
rangeland, earthquake areas & coastal areas
The land that benefits from an easement is referred to as the
dominant tenement.
All liens are encumbrances. All encumbrances are
limitations.
A deed restriction prohibiting the sale of property to certain ethnic groups
is illegal and unenforceable.
A mechanic's lien creates
a cloud on title.
A private deed restriction that places a restraint on alienation
is void, restricts the sale of property and is unenforceable.
An easement is an encumbrance
always.
The seller of a one-family house is required to disclose to buyers
the structural and mechanical condition of the property.
The process by which eminent domain occurs is called
police power.
An agent represents a
principal.
Which of the following types of easement does not run with the land?
the electric company's easement to cross over your land with their power lines
What is another term for an agent entrusted to act on someone's behalf?
fiduciary
The agent who brings a ready, willing, and able buyer to a seller is commonly
called the
procuring cause.
Broker A agrees to represent Seller B in the sale of her house. Seller B agrees to
pay Broker A a commission if he successfully sells the house. What do we know
for certain based on these facts?
A bilateral express contract exists between Broker A and Seller B
Broker A has a listing agreement to sell Seller B's house. Broker A brings an offer
to Seller B on behalf of Buyer C. Seller B rejects the offer and a week later
attempts to negotiate directly with Buyer C. Seller B has violated
,the duty of care.
Seller A wants to walk away with $200,000 after the sale of her house and all
expenses are paid. She agrees that Broker B can keep, as his fee, anything he
gets above that. What type of agreement have they made?
a net listing
Seller A has signed a listing agreement with Broker B. Without the assistance of
Broker B, Seller A sells her property and under the terms of the listing agreement
owes no commission to Broker B. What type of listing agreement did Seller A
sign?
an exclusive agency listing
A cooperating broker may represent
the buyer or the seller or the listing broker
This is not a type of listing agreement?
multiple listing
Broker A has a listing to market Seller B's house. He also has a buyer's agency
agreement to find a house for Buyer C. If Buyer C becomes interested in Seller
B's house what might the danger be, if any, to Broker A?
the creation of a dual agency (this can be taken care of by disclosing to both parties)
Who of the following owes fiduciary responsibility to the buyer?
the buyer's agent
A broker hired to sell a house is considered a
special agent.
A real estate salesperson is always considered an
employee.
Seller A wants to get the broadest exposure for the sale of her house but does
not want to pay a commission if she sells the house herself. What type of listing
will she try to establish?
open listing
All agency agreements for the sale of property must be in writing except creation
of an agency by
there are no exceptions.
The most profitable single use that will generate the highest value for a piece of
property is called it's
highest and best use.
Broker A agrees in writing to keep details of Seller B's property in his files but
indicated that he will not actively market it. Seller B agrees to pay Broker A a
commission if he finds a buyer. This agreement would best be described as
express unilateral.
Which of the following is not a characteristic of value?
change
An uncashed deposit check usually may be held and not deposited by the broker
for how many days before an offer is accepted?
until the offer is accepted
Two lots, each valued at $50,000, when combined have a value of $125,000. What
term best describes this added value?
plottage
, What is deducted from potential gross income to arrive at an effective gross
income?
vacancy and collection loss
In the income approach to estimating value, another term for the capitalization
rate is
rate of return.
In appraising a property, the process by which dissimilarities are accounted for in
comparing a subject property and a comparable property is called
making adjustments.
An appraisal may have more than one date on it. The date of the value estimate is
the
effective date.
What is an example of functional obsolescence?
having to get to a bedroom by going through another bedroom
If you assume that depreciation occurs at an even rate, what method of
calculating depreciation would you be using?
economic age life method
A parking lot in a downtown area being developed with office buildings is most
likely
an interim use of the property.
Potential gross income of an investment property is the same as
market rent plus other building income.
The gross rent multiplier approach is a useful income approach in appraising
single-family homes.
Which approach to valuation estimates land and building value separately?
cost approach
In order to arrive at a final value estimate after applying all three approaches to
value, which of the following will an appraiser do?
Reconcile the three values.
What type of value is the term advalorem most closely associated with?
assessed value
Rising mortgage interest rates will tend to
lower property values.
What activities of the Federal Reserve System is likely to have the most direct
effect on the rates charged for consumer credit?
adjusting the discount rate
Appraisers paid on the basis of a percentage of the value of a property are
in violation of appraisal ethical standards.
A person wanting to buy a $200,000 home by putting down $40,000 in cash and
borrowing $160,000 is making use of what financial concept?
leverage
"An improvement to a property is worth the value it adds, if any, to the whole
property, not its individual cost or value" is a good definition of the principle of
contribution.
Bank, Over 700 Questions And Answers
Broker A receives two offers on Seller B's house, which is listed for sale at
$250,000. The first offer is for all cash at $200,000. The second offer is for 20%
down with 80% financing for the full price. What should the broker do with
respect to both offers?
Present both offers to the seller as soon as possible.
The two primary documents dealing with payment of a loan are the mortgage or
deed of trust and a
promissory note.
The term that best describes a continuous urban corridor joining at least two
cities is
megalopolis.
The term real property can also be described as
the bundle of rights.
The rights of a landowner to a river bordering her property are known as
riparian rights.
In the case of a transfer of ownership of a piece of real estate, a fixture is
normally
assumed to be included in the transfer.
A tenant who operates a jewelry store wants to take his jewelry cases with him at
the expiration of the lease. What is the best solution?
He may take the cases if removal will not cause substantial damage.
A legal description of property is not adequate unless
land boundaries are defined.
The lot and block system of property description is not also known as the
rectangular survey system.
What best describes the interests of the holder of a life estate?
possession, use, and ownership
How many acres does a section of land contain?
640
The requirement that multiple owners take title to property at the same time is a
characteristic of
joint tenancy.
The type of ownership that provides the most complete bundle of rights is
fee simple absolute.
Which are most similar to each other with respect to inheriting property?
joint tenancy and community property with right of survivorship (both allow for reversion
to remaining owners)
A statement of the goals and policies regarding growth of a community is a good
definition of the
general plan.
The primary difference between a common interest subdivision and a standard
subdivision is
,ownership of common areas.
Which of the following is a generic term for a group of people joining together to
invest in real estate?
syndicate
The proper way for a landowner who has physical difficulty in developing his
property to get relief is to obtain a
variance.
When is a landowner entitled to compensation for a change in zoning?
when the landowner is denied all practical economic use of the property
At which lot does the Subdivided Lands Law take effect?
the fifth lot
The state has enacted legislation providing special consideration or control for
development of
rangeland, earthquake areas & coastal areas
The land that benefits from an easement is referred to as the
dominant tenement.
All liens are encumbrances. All encumbrances are
limitations.
A deed restriction prohibiting the sale of property to certain ethnic groups
is illegal and unenforceable.
A mechanic's lien creates
a cloud on title.
A private deed restriction that places a restraint on alienation
is void, restricts the sale of property and is unenforceable.
An easement is an encumbrance
always.
The seller of a one-family house is required to disclose to buyers
the structural and mechanical condition of the property.
The process by which eminent domain occurs is called
police power.
An agent represents a
principal.
Which of the following types of easement does not run with the land?
the electric company's easement to cross over your land with their power lines
What is another term for an agent entrusted to act on someone's behalf?
fiduciary
The agent who brings a ready, willing, and able buyer to a seller is commonly
called the
procuring cause.
Broker A agrees to represent Seller B in the sale of her house. Seller B agrees to
pay Broker A a commission if he successfully sells the house. What do we know
for certain based on these facts?
A bilateral express contract exists between Broker A and Seller B
Broker A has a listing agreement to sell Seller B's house. Broker A brings an offer
to Seller B on behalf of Buyer C. Seller B rejects the offer and a week later
attempts to negotiate directly with Buyer C. Seller B has violated
,the duty of care.
Seller A wants to walk away with $200,000 after the sale of her house and all
expenses are paid. She agrees that Broker B can keep, as his fee, anything he
gets above that. What type of agreement have they made?
a net listing
Seller A has signed a listing agreement with Broker B. Without the assistance of
Broker B, Seller A sells her property and under the terms of the listing agreement
owes no commission to Broker B. What type of listing agreement did Seller A
sign?
an exclusive agency listing
A cooperating broker may represent
the buyer or the seller or the listing broker
This is not a type of listing agreement?
multiple listing
Broker A has a listing to market Seller B's house. He also has a buyer's agency
agreement to find a house for Buyer C. If Buyer C becomes interested in Seller
B's house what might the danger be, if any, to Broker A?
the creation of a dual agency (this can be taken care of by disclosing to both parties)
Who of the following owes fiduciary responsibility to the buyer?
the buyer's agent
A broker hired to sell a house is considered a
special agent.
A real estate salesperson is always considered an
employee.
Seller A wants to get the broadest exposure for the sale of her house but does
not want to pay a commission if she sells the house herself. What type of listing
will she try to establish?
open listing
All agency agreements for the sale of property must be in writing except creation
of an agency by
there are no exceptions.
The most profitable single use that will generate the highest value for a piece of
property is called it's
highest and best use.
Broker A agrees in writing to keep details of Seller B's property in his files but
indicated that he will not actively market it. Seller B agrees to pay Broker A a
commission if he finds a buyer. This agreement would best be described as
express unilateral.
Which of the following is not a characteristic of value?
change
An uncashed deposit check usually may be held and not deposited by the broker
for how many days before an offer is accepted?
until the offer is accepted
Two lots, each valued at $50,000, when combined have a value of $125,000. What
term best describes this added value?
plottage
, What is deducted from potential gross income to arrive at an effective gross
income?
vacancy and collection loss
In the income approach to estimating value, another term for the capitalization
rate is
rate of return.
In appraising a property, the process by which dissimilarities are accounted for in
comparing a subject property and a comparable property is called
making adjustments.
An appraisal may have more than one date on it. The date of the value estimate is
the
effective date.
What is an example of functional obsolescence?
having to get to a bedroom by going through another bedroom
If you assume that depreciation occurs at an even rate, what method of
calculating depreciation would you be using?
economic age life method
A parking lot in a downtown area being developed with office buildings is most
likely
an interim use of the property.
Potential gross income of an investment property is the same as
market rent plus other building income.
The gross rent multiplier approach is a useful income approach in appraising
single-family homes.
Which approach to valuation estimates land and building value separately?
cost approach
In order to arrive at a final value estimate after applying all three approaches to
value, which of the following will an appraiser do?
Reconcile the three values.
What type of value is the term advalorem most closely associated with?
assessed value
Rising mortgage interest rates will tend to
lower property values.
What activities of the Federal Reserve System is likely to have the most direct
effect on the rates charged for consumer credit?
adjusting the discount rate
Appraisers paid on the basis of a percentage of the value of a property are
in violation of appraisal ethical standards.
A person wanting to buy a $200,000 home by putting down $40,000 in cash and
borrowing $160,000 is making use of what financial concept?
leverage
"An improvement to a property is worth the value it adds, if any, to the whole
property, not its individual cost or value" is a good definition of the principle of
contribution.
