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CA Real Estate Exam A Questions And Answers With Verified Solutions 100% Correct!!!
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CA Real Estate Exam A Questions And Answers With Verified Solutions 100% Correct!!!
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CA Real Estate Exam A Questions AndAnswers With Verified Solutions 100%
Correct!!!
All of the following are ways by which an offer to purchase real estate would be
terminated, except:
A. Failure to accept the offer within a prescribed time period
B. Failure to communicate notice of revocation before the other part has
communicated his or her acceptance
C. A conditional acceptance of the offer by the offeree
D. Death or insanity of the offeror regardless of the notice thereof -
ANSWER✔✔B. Failure to communicate notice of revocation before the other part
has communicated his or her acceptance
When using their closing statement, escrow would debit the seller of income
property for which of the following items:
A. Prepaid taxes
B. Prepaid rent
C. Prepaid fire insurance premium
D. All of the above - ANSWER✔✔B. Prepaid rent
When a Cal-vet wishes to purchase a home and use his California veteran's benefits
he would make the application to:
A. California Veterans Administration
B. Department of Veterans Affairs
C. Federal Housing Administration
D. An institutional lender - ANSWER✔✔B. Department of Veterans Affairs
Which of the following loans would most likely be made without requiring a down
payment from the borrower:
A. VA loan
B. FHA loan
C. Cal-Vet loan
D. Conventional loan - ANSWER✔✔A. VA loan
Recorded title to a parcel of real property was vested in Mary Wilson, a single
woman. After her marriage to John Roberts she executed a deed to the property
,only in the name of Mary Roberts, a married woman. The discrepancy in the
grantor's name is:
A. Immaterial as long as long as the property is adequately described.
B. A defect, which may cause a cloud on the title
C. Cured after the deed is of record for one year
D. A defect, which could cause separate property of both spouses to become joint
tenancy property - ANSWER✔✔B. A defect, which may cause a cloud on the title
If a salesperson wishes to advertise his or her services, the advertisement must
include:
A. The broker's name
B. The broker's name and address
C. the salesperson name only
D. Both B & C - ANSWER✔✔A. The broker's name
Which of the following statements is incorrect with regard to an "in-house" sale?
A. The listing broker can make an offer on his or her own "in-house" listing
B. The listing broker can be the agent of the buyer only
C. The listing broker can act as dual agent for the buyer and the seller
D. The listing broker may be the selling broker without becoming a dual agent -
ANSWER✔✔B. The listing broker can be the agent of the buyer only
For the income tax purposes, capital expenditures for improvements and alterations
are:
A. Deducted in full as expenses
B. Added to the "cost basis" of the property
C. Subtracted from the "cost basis" of the property
D. Cannot be depreciated over the remaining life of the improvements -
ANSWER✔✔B. Added to the "cost basis" of the property
All California counties collect a documentary transfer tax when most transfers of
title are recorded. The rate is $.55 fir each $500 of consideration paid or any part
thereof. If the property sold for $150,000 and the buyer assumed an existing loan
of $25,000, the amount of tax would most nearly be:
A. $28.00
B. $138.00
C. $165.00
D. $113.00 - ANSWER✔✔B. $138.00
,A commercial office building yields an annual net income $174,000. If an
appraiser applied a capitalization rate of 8% to the property, the market value of
the property would most nearly be:
A. $1,392,000
B. $1,666,000
C. $1,932,000
D. $2,175,000 - ANSWER✔✔D. $2,175,000
A broker negotiated a lease for 30 years on a commercial building. The tenant
agreed to pay the owner $30,000 per year in rent. The broker's commission on this
lease was to be paid as follows: 7% in the 1st year; 5% in each o the next 4 years;
3% in each of the next 15 years; 1% in each o the remaining years. How much
commission will the broker have received at the end of 19 years.
A. $25,000
B. $20,800
C. $20,500
D. $20,700 - ANSWER✔✔D. $20,700
Two brokers agreed to split a 4 1/2 % commission on a 50-50 basis on the sale of a
property for $162,500. If the listing salesperson's agreement with the employing
broker was also based on a 50-50 split, the salesperson's commission was:
A. $8,125
B. $4,875
C. $3,658.25
D. $1,828.13 - ANSWER✔✔D. $1,828.13
The document which transfers title but contains no express or implied warranties is
a:
A. Grant Deed
B. Warrant Deed
C. Quitclaim Deed
D. All the preceding - ANSWER✔✔C. Quitclaim Deed
Land which is subject to an easement is said to be:
A. Appurtenant thereto
B. Encroached upon
C. Encumbered
D. Restricted - ANSWER✔✔C. Encumbered
, A real estate syndicate purchased a 20,000 square foot lot on which they planned to
build a high ride apartment. If the lot was 200 feet deep and they paid $4.40 per
square foot, the cost per front foot was
A. $200.00
B. $440.00
C. $880.00
D. $960.00 - ANSWER✔✔C. $880.00
After completion of a new building in which the owner did not record a Notice of
Completion, any unpaid claimant must file a Mechanic's Lien within:
A. 30 days
B. 60 days
C. 90 days
D. 120 days - ANSWER✔✔C. 90 days
Mr. Smith employed the XYZ Pool Conctruction Company to install a swimming
pool at his home. After completion, the contractor filed a lien to obtain payment of
the contract price. The encumbrance created was:
A. A general lien
B. A voluntary lien
C. A specific lien
D. None of the above - ANSWER✔✔C. A specific lien
Which of the following has control over the approval of subdivision under
Subdivision Map Act?
A. Real Estate Commissioner
B. State Contractors License Board
C. Planning Commission
D. County Board of Supervisors - ANSWER✔✔C. Planning Commission
Mutual mortgage insurance on an FHA loan:
A. Pays the borrower the loan balance in the event of a fire loss
B. Protects the lender in the event of the trustor's death
C. Protects the lender against any deficiency in the event of a default
D. Is and expense that is borne by the leader - ANSWER✔✔C. Protects the lender
against any deficiency in the event of a default
A land developer offers a free prize to anyone who replies to his direct mail
advertisement and visits his subdivision site. Prior to awarding the prize however,
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