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California Real Estate Exam Multiple Choice Questions and Answers (Latest Update 2025)
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California Real Estate Exam Multiple Choice Questions and Answers (Latest Update 2025)
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California Real Estate Exam MultipleChoice Questions and Answers (Latest
Update 2025)
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 between 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
,California Real Estate Exam Multiple
Choice Questions and Answers (Latest
Update 2025)
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 NW¼ of the SE¼ of Section
13 plus the W½ of the NE¼ of Section 13. What was the
original price they 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.
,California Real Estate Exam Multiple
Choice Questions and Answers (Latest
Update 2025)
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
, California Real Estate Exam Multiple
Choice Questions and Answers (Latest
Update 2025)
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 architecture, 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 the only approach
available.
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