California Real Estate Exam Test Questions with
Correct -Latest Updated 2024-2025.
An insurance policy which combines personal liability insurance and hazard insurance
coverage for a dwelling and its contents is called - Correct Answer-Homeowners
insurance
What is the status of a contract when all the terms have been fulfilled and the transaction
has been closed? - Correct Answer-Fully executed
Surface rights, air, rights, and subsurface rights are all rights that can be sold by a
property owner while still retaining the property itself. These rights are known as: - Correct
Answer-Several rights
When an easement allows the use of a neighboring property which automatically transfers
upon the sale of either dominant or servient property. It is called what type of easement -
Correct Answer-Easement appurtenant
Linda purchased a fee simple interest for the private use of a residential property for one
week every single year. What did Linda purchase? - Correct Answer-Resort timeshare
What is the highest form of landownership which includes the full and complete bundle of
property rights? - Correct Answer-Fee simple absolute
What type of ownership would allow two or more owners to have various unequal
percentages of ownership? - Correct Answer-Tenancy in common
Tendency in severalty is best described as - Correct Answer-One property owner
Which of the following is not one of the four land use controls? - Correct Answer-intestate
What is the general purpose for cities to require building permits? - Correct Answer-To
require a minimum level of construction standards
The interest rate bank charge to their preferred customers is called - Correct Answer-The
prime rate
, The city of Brownwood plants to build a new water treatment facility, but the land that is
required is privately owned. Eminent domain allows the city to - Correct Answer-Take
possession of the land against the owners wishes yet the owner must be compensated
When the appraised value of a property is given, it is based on - Correct Answer-
Comparable sales
Agent Brooke is preparing for a listing appointment and has gathered information to
prepare a report of recent market data for the seller to review. The report agents reconcile
to obtain a reasonable list price for a property based on current listings, recent sales and
expireds would be called. - Correct Answer-Comparative market analysis (CMA)
Paul owns an older residential property in an area now zone for commercial use. Paul
decides to renovate the home into a laundromat. The change in the properties
functionality for Paul's financial gain is an example of what - Correct Answer-Highest and
best use
John's tire store is being built across the street from big Bob's tires. What appraisal
principal describes this situation - Correct Answer-Competition
Buyer Sam purchased a rundown residential home in a neighborhood with many nice
well-kept properties. Sam intends to renovate the home and resell it for a profit.
Considering the nicer homes in the neighborhood help raise his property value, what
appraisal principle is Sam leveraging ? - Correct Answer-Progression
During the appraisal process, the appraiser will never adjust the price of the - Correct
Answer-Subject property
While working on an appraisal report appraiser, Jake finds that the comparable property is
superior to the subject property with more amenities. How will Jake make adjustments to
arrive at a value of the subject property? - Correct Answer-Subtract value from
comparable
The beautiful town of big Bear is experiencing a fast influx of new residence. There are a
few homes on the market and no new construction developments in the works. What will
this do to the price of the existing homes in the area? - Correct Answer-The prices will
increase
Correct -Latest Updated 2024-2025.
An insurance policy which combines personal liability insurance and hazard insurance
coverage for a dwelling and its contents is called - Correct Answer-Homeowners
insurance
What is the status of a contract when all the terms have been fulfilled and the transaction
has been closed? - Correct Answer-Fully executed
Surface rights, air, rights, and subsurface rights are all rights that can be sold by a
property owner while still retaining the property itself. These rights are known as: - Correct
Answer-Several rights
When an easement allows the use of a neighboring property which automatically transfers
upon the sale of either dominant or servient property. It is called what type of easement -
Correct Answer-Easement appurtenant
Linda purchased a fee simple interest for the private use of a residential property for one
week every single year. What did Linda purchase? - Correct Answer-Resort timeshare
What is the highest form of landownership which includes the full and complete bundle of
property rights? - Correct Answer-Fee simple absolute
What type of ownership would allow two or more owners to have various unequal
percentages of ownership? - Correct Answer-Tenancy in common
Tendency in severalty is best described as - Correct Answer-One property owner
Which of the following is not one of the four land use controls? - Correct Answer-intestate
What is the general purpose for cities to require building permits? - Correct Answer-To
require a minimum level of construction standards
The interest rate bank charge to their preferred customers is called - Correct Answer-The
prime rate
, The city of Brownwood plants to build a new water treatment facility, but the land that is
required is privately owned. Eminent domain allows the city to - Correct Answer-Take
possession of the land against the owners wishes yet the owner must be compensated
When the appraised value of a property is given, it is based on - Correct Answer-
Comparable sales
Agent Brooke is preparing for a listing appointment and has gathered information to
prepare a report of recent market data for the seller to review. The report agents reconcile
to obtain a reasonable list price for a property based on current listings, recent sales and
expireds would be called. - Correct Answer-Comparative market analysis (CMA)
Paul owns an older residential property in an area now zone for commercial use. Paul
decides to renovate the home into a laundromat. The change in the properties
functionality for Paul's financial gain is an example of what - Correct Answer-Highest and
best use
John's tire store is being built across the street from big Bob's tires. What appraisal
principal describes this situation - Correct Answer-Competition
Buyer Sam purchased a rundown residential home in a neighborhood with many nice
well-kept properties. Sam intends to renovate the home and resell it for a profit.
Considering the nicer homes in the neighborhood help raise his property value, what
appraisal principle is Sam leveraging ? - Correct Answer-Progression
During the appraisal process, the appraiser will never adjust the price of the - Correct
Answer-Subject property
While working on an appraisal report appraiser, Jake finds that the comparable property is
superior to the subject property with more amenities. How will Jake make adjustments to
arrive at a value of the subject property? - Correct Answer-Subtract value from
comparable
The beautiful town of big Bear is experiencing a fast influx of new residence. There are a
few homes on the market and no new construction developments in the works. What will
this do to the price of the existing homes in the area? - Correct Answer-The prices will
increase
