Exam (elaborations)

California Real Estate Exam Multiple Choice Questions with Correct Answers

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Real Estate

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Real Estate

California Real Estate Exam Multiple Choice Questions with Correct 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 between...

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Uploaded on November 4, 2024
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california real estate exam multiple choice questi

Institution Real Estate
Course Real Estate

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Copyright © KAYLIN 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED FIRST PUBLISH NOVEMBER, 2024

California Real Estate Exam Multiple

Choice Questions with Correct 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 between

the thing desired and the potential purchaser.

d. all of the above. - 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 - ANSWER✔✔-c. MIP/MMI

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,Copyright © KAYLIN 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED FIRST PUBLISH NOVEMBER, 2024

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 - 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

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d. All of the above - 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 - 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

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, Copyright © KAYLIN 2024/2025 ACADEMIC YEAR. ALL RIGHTS RESERVED FIRST PUBLISH NOVEMBER, 2024

c. Capitalization

d. None of the above - 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.

The members of the National Association of Real Estate Brokers are called:

a. Realtors®.

b. Consolidated Brokers.

c. Realtists.

d. None of the above. - 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 - ANSWER✔✔-c. $784.38

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