California Real Estate Exam: Questions Answers

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California Real Estate Exam: Questions & Answers

Latest Update 100% Verified Question 1: An appraiser's definition of "Value" would be:

• present worth of all rights to future benefits arising out of

ownership.

• the ability of one commodity to command other commodities

in exchange.

• relationship between the thing desired and the potential

purchaser.

• all of the above.

CORRECT ANSWER : d. all of the above.

Question 2: Which of the following abbreviations is associated

with the FHA?

• NAR
• CPM
• MIP/MMI
• MBA

CORRECT ANSWER : c. MIP/MMI

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Question 3: 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?

• $1,500
• $1,200
• $1,000
• $750

CORRECT ANSWER : a. $1,500

Question 4: Which of the following is NOT a lien?

• Encumbrance
• Homestead
• Zoning
• All of the above

CORRECT ANSWER : d. All of the above

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Question 5: A property sells for $121,000. The purchaser gives

$10,000 down payment, agrees to place an additional $5,000 down, and take 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 conditions, how much would the documentary tax stamps be?

• $1.10
• $5.50
• $133.10
• $23.10

CORRECT ANSWER : d. $23.10

Question 6: 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?

• Replacement (cost approach)
• Comparison
• Capitalization
• None of the above

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CORRECT ANSWER : a. Replacement (cost approach)

Question 7: The members of the National Association of Real

Estate Brokers are called:

• Realtors®.
• Consolidated Brokers.
• Realtists.
• None of the above.

CORRECT ANSWER : c. Realtists.

Question 8: 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?

• $765.35
• $742.51
• $784.38
• $795.97

CORRECT ANSWER : c. $784.38