Real Estate Salesperson California State Exam 2023 Graded A+

Which of the following is most vital or important in planning a subdivision: - ANSWER-Market Analysis When rent is computed on the gross sales of a business occupying real property, the lease is correctly termed: - ANSWER-Percentage Lease What is not an adequate method of transferring property? - ANSWER-Executive Sale What is considered personal property? - ANSWER-Existing Mortgage If an income property is valued at $100,000 based on an 8% capitalization rate, what would be the value of the property if a 10% return is required: - ANSWER-$80,000 $100,000 Value of Property x 0.08 Capitalization Rate =$8,000 Net Income $8,000 Net Income ÷ 0.10 of Return =$80,000 Value of Property The value of the best property in the neighborhood will be adversely affected by the presence of comparatively substandard property is a statement relating to value and is know as the Principle of: - ANSWER-Regression Which of the following actions or events would result in the termination of a sales escrow: - ANSWER-Mutual consent of the parties The measure of goods and services produced by the nation during any one calendar year is the definition of which of the following: - ANSWER-Gross National Product An easement on real property can be terminated by: - ANSWER-A release signed by the holder of the dominant tenement An appraiser's narrative appraisal report of a single-family residence probably would contain no reference to: - ANSWER-The type of financing available When identical or highly similar properties are offered for sale, the property offered at the lower price attracts the greatest demand. That statement is an illustration of which of the following principles of appraising: - ANSWER-Substitution When the public records have been examined in order to determine the chain of title to a parcel of real property, a written summary of that chain of title is known as: - ANSWER-An abstract of title The remedy of unlawful detainer action is used by offended: - ANSWER-Lessors Freehold estates would include which of the following: - ANSWER-A life estate If a lender accepts a deed in lieu of foreclosure from a trustor, the lender: - ANSWER-Will assume any junior liens Which of the following would usually be true concerning a hard money second trust deed: - ANSWER-It's secured by real estate and given to a third party to obtain a cash loan Betty is beneficiary of a $15,000 deed of trust on a single-family home located in Long Beach, CA. Trustor Milo made $2,000 in payments, then defaulted. At a trustee's sale, the property sold for $10,000, resulting in a $3,000 deficiency. In California, a deficiency judgement cannot be obtained: - ANSWER-In any of the below situations. -If the security is a purchase-money trust deed. -If remedy of trustee's sales is used. -If fair market value of the property exceeds the amount due on the trust deed. What state agency would a consumer contact in order to obtain a written report disclosing the presence of wood destroying organisms? - ANSWER-Structural Pest Control Board When a lender on a graduated payment mortgage is making disclosures that are required under the Truth-in-Lending Law concerning advertising he must disclose the: - ANSWER-Lender's Name A clause in a mortgage stating that the rights of the mortgagee shall be secondary to a subsequent mortgage is called: - ANSWER-None of the above In California the use of an abstract of title has been superseded almost entirely by the: - ANSWER-Policy of title insurance Sherman gives a quitclaim deed to Warner for a parcel of real property. Warner does not record the deed. In this situations, which of the following is true: - ANSWER-The deed is valid as between Sherman and Warner, but invalid as to subsequent recorded interests without notice Which of the following statement is true? - ANSWER-Real property can become personal property Land zoned for use as the site for multi-family residential developments (such as apartment buildings) would be denoted as: - ANSWER-R-3 or R-4 The purchaser of a lot which is subject to a lien for street improvements under the Street Improvement Act of 1911, may prevent the assessment from going to bond if he pays the assessment in full within how many days after the completion of the work: - ANSWER-30 If the owner of an apartment building does not reside on the premises, he is required to have a resident manager or responsible person on the premises where the number of units is: - ANSWER-16 or more Which of the following pairs of words are SYNONYMOUS: - ANSWER-Construction loan - Interim loan When the Real Estate Commissioner wishes to rescind approval of a new subdivision, he would likely do which of the following: - ANSWER-Issue a desist and refrain order If a real estate licensee was trying to persuade people to list or to sell their property by telling them that members of another ethnic group were moving into their neighborhood, and it would be to their advantage to list or to sell, it would be an example of all of the following, EXCEPT: - ANSWER-Legitimate conduct If a seller refuses to state on a real estate transfer disclosure statement that his property is in a slide area, when it is, the real estate agent should: - ANSWER-NOT accept the listing Two buildings are leased on a long-term basis, one for a post office and the other for a hardware store. Using the capitalization approach to appraise the properties, the post office would demand: - ANSWER-A lower capitalization rate Under FHA, the usual ceiling height in a single-family residence is: - ANSWER-8 Feet In a deed of trust, the power of sale in event of foreclosure is given from the: - ANSWER-Trustor to the trustee When a residential neighborhood is composed most of owner occupied residential properties it tends to: - ANSWER-Stabilize Value Federal income tax rates on ordinary taxable income are: - ANSWER-Progressive The owner of a hardware store who owned the real property where is was located, sold the real property and leased it back for a long term. For income tax purposes, the seller may: - ANSWER-Deduct 100% of future rents A property sold for $33,700. This was 7% less than what the property originally cost. The original cost was approximately: - ANSWER-$36,236 100% - 7% = 93% 93% of cost = $33,700 $33,700 divided by 0.93 = $36,236.56 All of the following statements are correct concerning the transfer of title to personal property, EXCEPT: - ANSWER-The condition of the title to personal property can usually be determined by a study of public records with about the same accuracy as title to real property How many years is an attachment lien good for: - ANSWER-3 years A real estate salesperson's license has been suspended because many was paid out of the Recovery Account to a person who had a judgement against the salesperson. His license will not be reinstated until he: - ANSWER-Pays the Recovery Account for the money it paid plus interest Which of the following defines the term "equity": - ANSWER-Any of the below: -The owner's interest in real property, over and above all liens against it -The difference between the loan amount and the value or price of the property -The initial down payment on the property The initials HVAC in a commercial lease refer to: - ANSWER-Heating, Ventilation, & Air Conditioning System Under a conditional / installment sales contract for the sale of real property, legal title is held by the: - ANSWER-Vendor Which of the following closing costs would be classified as a recurring cost: - ANSWER-Impound Account Items If a broker misrepresented his principal's property to a buyer, the broker could cause his principal to be subject to: - ANSWER-Any of the below: -A rescission of the sale by the buyer -A court action for damages by the buyer -A civil suit compensating the buyer for misrepresentation of the broker Which of the following REPRESENTS the minimum time period for an exclusive right to sell listing on real property: - ANSWER-Whatever time period is agreed to by seller and broker When appraising real property by the income approach, the capital invested in the improvements is recaptured by: - ANSWER-Accruals for depreciation Agent Flag often refers to tax shelters when discussing a property with a customer. Agent Flag is primarily referring to: - ANSWER-Income taxes Which of the following is NOT one of the four important elements of value: - ANSWER-Appreciation Economic rent is the rent: - ANSWER-Received for comparable space in the economic open market When the law finds that an owner has riparian rights, it means he has rights relating to the use and ownership of water from which of the following sources: - ANSWER-Rivers, streams, & water courses Capitalization is a process used to: - ANSWER-Convert income into value What can be appurtenant to land: - ANSWER-Stock in a mutual water company If a man leased a store for only 6 months, he would have an: - ANSWER-Estate for years To whom must a subdivider give a copy of the Commissioner's public report? - ANSWER-Any person, at any time, upon request Single-family home values are least protected in neighborhoods where there is: - ANSWER-An increasing misture of average-quality homes with high-quality homes The process of expressing anticipated future benefits of ownership in dollars and discounting them to a present worth at a rate which is attracting purchase capital to similar investments is called: - ANSWER-Capitalization The available supply of real estate loan funds tends to be increased by all of the following EXECPT: - ANSWER-An increase demand for a more liquid type of assets If a person obtains a contract through duress, that contact is: - ANSWER-Voidable The primary purpose of city and county building codes is to establish: - ANSWER-Minimum standardsfor public health, safety, moral, and general welfare When a trustor defaults on his or her payments and refuses to reinstate the deed of trust, the most expedient thing for the beneficiary to do is to institute a: - ANSWER-Trustee sale While appraising a residence in a hillside subdivision, the appraiser observes cracks in the foundation