California Broker Real Estate Exam Questions with Verified Answers

California Broker Real Estate Exam Questions with Verified Answers All agency agreements for the sale of property must be in writing except creation of an agency by - Answer-there are no exceptions. The most profitable single use that will generate the highest value for a piece of property is called it's - Answer-highest and best use. Broker A agrees in writing to keep details of Seller B's property in his files but indicated that he will not actively market it. Seller B agrees to pay Broker A a commission if he finds a buyer. This agreement would best be described as - Answer-express unilateral. Which of the following is not a characteristic of value? - Answer-change An uncashed deposit check usually may be held and not deposited by the broker for how many days before an offer is accepted? - Answer-until the offer is accepted Two lots, each valued at $50,000, when combined have a value of $125,000. What term best describes this added value? - Answer-plottage What is deducted from potential gross income to arrive at an effective gross income? - Answer-vacancy and collection loss In the income approach to estimating value, another term for the capitalization rate is - Answer-rate of return. In appraising a property, the process by which dissimilarities are accounted for in comparing a subject property and a comparable property is called - Answer-making adjustments. An appraisal may have more than one date on it. The date of the value estimate is the - Answer-effective date. What is an example of functional obsolescence? - Answer-having to get to a bedroom by going through another bedroom If you assume that depreciation occurs at an even rate, what method of calculating depreciation would you be using? - Answer-economic age life method A parking lot in a downtown area being developed with office buildings is most likely - Answer-an interim use of the property. Potential gross income of an investment property is the same as - Answer-market rent plus other building income. The gross rent multiplier approach is a useful income approach in appraising - Answer-single-family homes.