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California Real Estate Exam Multiple Choice Questions And Answers
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California Real Estate Exam Multiple Choice Questions And Answers
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California Real Estate Exam MultipleChoice Questions And Answers
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 ,betwee
n ,the ,thing ,desired ,and ,the ,potential ,purchaser.
d. ,all ,of ,the ,above. ,- ,(correct ,answer) ,-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 ,answer) ,-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 ,N
W¼ ,of ,the ,SE¼ ,of ,Section ,13 ,plus ,the ,W½ ,of ,the ,NE¼ ,of ,Section ,13. ,What ,was ,the ,original ,price ,th
ey ,paid ,per ,acre ,for ,the ,property?
,a. ,$1,500
b. ,$1,200
c. ,$1,000
d. ,$750 ,- ,(correct ,answer) ,-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 ,answer) ,-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 ,answer) ,-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 ,arch
itecture, ,he ,would ,employ ,which ,of ,the ,following ,methods ,of ,valuation?
a. ,Replacement ,(cost ,approach)
b. ,Comparison
c. ,Capitalization
d. ,None ,of ,the ,above ,- ,(correct ,answer) ,-a. ,Replacement ,(cost ,approach)
Since ,there ,is ,no ,income ,for ,capitalization ,and ,no ,means ,for ,comparing ,sales, ,replacement ,cost ,is ,th
e ,only ,approach ,available.
The ,members ,of ,the ,National ,Association ,of ,Real ,Estate ,Brokers ,are ,called:
a. ,Realtors®.
b. ,Consolidated ,Brokers.
c. ,Realtists.
d. ,None ,of ,the ,above. ,- ,(correct ,answer) ,-c. ,Realtists.
If ,the ,taxes ,on ,a ,newly ,acquired ,property ,will ,amount ,to ,1.25% ,of ,the ,purchase ,price, ,what ,will ,the
,first ,installment ,(6 ,months) ,bill ,for ,a ,home ,costing ,$125,500 ,be?
a. ,$765.35
b. ,$742.51
c. ,$784.38
, d. ,$795.97 ,- ,(correct ,answer) ,-c. ,$784.38
$125,500 ,x ,(.0125) ,÷ ,2 ,= ,$784.38.
The ,best ,source ,for ,establishing ,the ,age ,of ,a ,home ,would ,be ,the:
a. ,county ,tax ,assessor.
b. ,building ,and ,safety ,department.
c. ,county ,recorder's ,office.
d. ,either ,a ,or ,b. ,- ,(correct ,answer) ,-a. ,county ,tax ,assessor.
The ,county ,tax ,assessor ,is ,the ,best ,source ,for ,establishing ,the ,age ,of ,a ,home.
"Gross ,multiplier" ,is ,used ,to ,determine ,value ,of ,certain ,types ,of ,income ,properties. ,It ,is ,determined
,by:
a. ,dividing ,the ,gross ,rental ,income ,by ,the ,appraised ,value. ,b. ,multiplying ,the ,market ,price ,by ,the ,ca
pitalization ,rate.
c. ,dividing ,the ,sales ,price ,by ,the ,gross ,monthly ,rental.
d. ,multiplying ,the ,gross ,monthly ,rental ,by ,a ,reasonable ,cap ,rate. ,- ,(correct ,answer) ,-
c. ,dividing ,the ,sales ,price ,by ,the ,gross ,monthly ,rental.
Gross ,Rent ,Multiplier ,is ,a ,rough, ,quick ,way ,of ,converting ,gross ,rent ,into ,market ,value.
Which ,of ,the ,following ,could ,be ,used ,with ,a ,purchaser ,without ,the ,immediate ,involvement ,of ,a ,titl
e ,change?
a. ,Grant ,deed
b. ,Land ,contract
c. ,Quit ,claim ,deed
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