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CA Real Estate Exam 2025 PRACTICE EXAM (100% CORRECT) GRADED A+ |VERIFIED| 2025 $9.79
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CA Real Estate Exam 2025 PRACTICE EXAM (100% CORRECT) GRADED A+ |VERIFIED| 2025
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CA Real Estate Exam 2025 PRACTICE EXAM (100% CORRECT) GRADED A+ |VERIFIED| 2025 Buyer Sam purchased a dilapidated residential property located in a neighborhood with well-maintained homes. Sam plans to renovate and resell the property for a profit. Given that the surrounding properties wi...

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  • December 8, 2024
  • 57
  • 2024/2025
  • Exam (elaborations)
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  • ca real estate exam 2025 practice exam 100 corr

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CA Real Estate Exam 2025 PRACTICE
EXAM (100% CORRECT) GRADED A+
|VERIFIED| 2025
Buyer Sam purchased a dilapidated residential property located in a neighborhood with well-maintained
homes. Sam plans to renovate and resell the property for a profit. Given that the surrounding properties
will likely increase his property's value, what appraisal principle is Sam relying on?

A) Regression

B) Progression

C) Assemblage

D) Substitution



The principle of Progression suggests that a property in disrepair will increase in value when surrounded
by well-kept homes. The value of Sam's home will rise due to the influence of neighboring properties.



During the appraisal process, the appraiser will never adjust the value of the:

A) Appraisal

B) Comps

C) Subject property

D) Land



The subject property remains unadjusted in the appraisal process; adjustments are made to comparable
properties to determine a fair market value.



While working on an appraisal report, appraiser Jake finds that a comparable property has more
amenities than the subject property. How should Jake adjust the value to reflect the subject property's
value?

A) Add value to the subject property

B) Subtract value from the subject

C) Add value to the comparable


1

,D) Subtract value from the comparable



To account for the additional features in the comparable property, Jake will subtract value from the
comparable to estimate the value of the subject property without those features.



The town of Big Bear is experiencing an influx of new residents, and there are few homes available for
sale. There are also no new construction developments underway. How will this impact the price of
existing homes in the area?

A) The prices will decline over time

B) The prices will remain stable

C) The prices will decline swiftly

D) The prices will increase



Due to limited supply and high demand, the prices of existing homes in Big Bear are expected to rise.



Homeowner Paul is selling his home without a real estate agent and advertises it with "Owner Financing,
3% down payment." Is this advertisement in violation of the Truth in Lending Act (TILA)?

A) Yes, when a down payment is listed, a price must also be included

B) Yes, the ad does not disclose all the terms of the financing

C) No, property owners are exempt from TILA advertising requirements

D) Yes, the ad contains trigger terms



The Truth in Lending Act requires full disclosure of specific terms, including the price, when advertising
financing. Property owners, however, are generally exempt from TILA’s advertising rules.



Which loan type does not require a down payment?

A) VA loan

B) Conventional loan

C) Bridge loan

D) FHA loan


2

,VA loans, backed by the Department of Veterans Affairs, do not require a down payment for eligible
veterans.



Discount points allow lenders to charge upfront interest in exchange for lowering the loan's interest rate.
What is the cost of the discount points based on?

A) The down payment

B) The appraised property value

C) The loan amount

D) The sales price



Discount points are calculated as a percentage of the loan amount, with one point equaling 1% of the
total loan.



FHA loans require that borrowers provide protection for the lender in case of loan default. What type of
insurance must the borrower pay for this protection?

A) Credit life insurance

B) Homeowner's insurance

C) Mortgage insurance premium

D) Title insurance



Borrowers with FHA loans must pay a mortgage insurance premium (MIP) to protect the lender in case
of default.



Fair housing laws apply not only to real estate agents but also to lenders. When a lender denies a
mortgage application based solely on the racial makeup of the neighborhood where the property is
located, what illegal practice is being committed?

A) Steering

B) Redlining

C) Mortgage fraud

D) Panic selling


3

, Redlining is an illegal practice where lenders refuse loans based on the racial or ethnic composition of a
neighborhood, violating the Fair Housing Act.



Terry received a conventional 30-year mortgage to purchase his home. After making significant extra
payments, Terry will pay off the loan in only 17 years. Which loan feature might charge Terry an
additional fee for paying off the loan early?

A) Interest fee

B) Escalation clause

C) Subordination clause

D) Prepayment penalty



A prepayment penalty is a fee that can be charged if a borrower pays off the loan earlier than agreed.



Mark has fallen behind on his mortgage payments and has received a notice from his lender demanding
full payment of the remaining balance immediately. This is an example of:

A) Judicial foreclosure

B) Subordination clause

C) Acceleration clause

D) Escalation clause



An acceleration clause allows the lender to demand the full loan balance if the borrower fails to meet
payment terms.



Some loans include an account where the lender places a portion of each payment to cover property
taxes. What is this type of account called?

A) Escrow account

B) Mortgage account

C) Interest account

D) Savings account



4

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