CA Real Estate State Exam Crash Course-
Questions with 100% Correct Answers.
.
How are ownership rights and interest in real property established by way of a court
proceeding?
A - cloud on title
B - equitable use
C- quiet title action
D - quitclaim - Correct Answer-C - quiet title action
Answer Feedback: A quiet title action is proceeding to establish an individual's right
to ownership of real property against one or more adverse claimants.
The recording of an instrument gives:
A - actual notice
B - passive notice
C - absolute notice
D - constructive notice - Correct Answer-D - constructive notice
Answer Feedback: Constructive notice is given by taking physical possession or by
recording an instrument.
Federal income tax rates on ordinary income are:
A - progressive
B - equal
C - flat
D - digressive - Correct Answer-A - progressive
Answer Feedback: The more you make, the more you are taxed.
,When title of a property is voluntary transferred without any money consideration,
this would be considered:
A - avulsion
B - eminent domain
C - a gift
D - foreclosure - Correct Answer-C - a gift
Answer Feedback: This describes a gift which is the only right choice of a voluntary
transfer without consideration (money).
Who would you contact if you feel your property has been over assessed by the
county assessor?
A - Local housing council
B - Board of equalization
C - County tax collector
D - Assessment appeals board - Correct Answer-D - Assessment appeals board
Answer Feedback: You would contact this department to plead your case.
A single family home that had an assessed value that was much lower than the
current market value was sold on November 3rd at its current market value. What
will the new owners have to pay?
A - supplement tax based on the difference between the old assessed value and
the new assessed value for the remaining fiscal year
B - nothing
C - a prorated amount of tax
D - a flat tax of 10% - Correct Answer-A - supplement tax based on the difference
between the old assessed value and the new assessed value for the remaining
fiscal year
,Answer Feedback: When a property is sold for more than the assessed value, the
new buyer will receive a supplemental tax bill based on the new assessed value.
An income property owner was figuring out their net income for tax purposes. They
took the gross income and deducted certain expenses. What cannot be deducted?
A - management expenses
B - cost of a fence
C - interest for a loan
D - depreciation - Correct Answer-B - cost of a fence
Answer Feedback: A fence is a capital improvement and cannot be deducted as an
expense for tax purposes.
When referring to a building bought for income purposes, the owner can deduct all
of the following for income tax purposes, except:
A - loss of rental due to vacancies
B - depreciation when the property value increases
C - interest payments on the second trust deed
D - cost of repairing the vacant units - Correct Answer-A - loss of rental due to
vacancies
Answer Feedback: Vacancy losses cannot be deducted from income.
A sale leaseback purchaser would be least concerned about the:
A - depreciated value of the building
B - condition of the improvement
C - location of the property
D - creditworthiness of the tenant - Correct Answer-A - depreciated value of the
building
, Answer Feedback: Depreciated value has to do with the adjusted costs basis of the
building.
Why can a corporation not qualify as a "joint tenant" for ownership interest of real
property?
A - A corporation can be foreign or domestic
B - Only community property can be held as joint tenancy
C - It has perpetual existence
D - A corporation has a board of directors - Correct Answer-C - It has perpetual
existence
Answer Feedback: Corporations don't die and since one of the characteristics of
joint tenancy is the right of survivorship, a corporation owning real property in "joint
tenancy" would be an unfair advantage. Death is a requirement.
The assessment roll in real property taxes exists to establish the tax base. Who
sets the county tax rate?
A - The board of supervisors
B - The county assessor
C - The state assessor
D - The federal government - Correct Answer-A - The board of supervisors
Answer Feedback: The board supervisors of each county sets the maximum annual
tax on real property.
Which of the following is not an example of police power by the government?
A - eminent domain
B - zoning
C - the right to tax
D - adopt and enforce laws - Correct Answer-C - the right to tax
Questions with 100% Correct Answers.
.
How are ownership rights and interest in real property established by way of a court
proceeding?
A - cloud on title
B - equitable use
C- quiet title action
D - quitclaim - Correct Answer-C - quiet title action
Answer Feedback: A quiet title action is proceeding to establish an individual's right
to ownership of real property against one or more adverse claimants.
The recording of an instrument gives:
A - actual notice
B - passive notice
C - absolute notice
D - constructive notice - Correct Answer-D - constructive notice
Answer Feedback: Constructive notice is given by taking physical possession or by
recording an instrument.
Federal income tax rates on ordinary income are:
A - progressive
B - equal
C - flat
D - digressive - Correct Answer-A - progressive
Answer Feedback: The more you make, the more you are taxed.
,When title of a property is voluntary transferred without any money consideration,
this would be considered:
A - avulsion
B - eminent domain
C - a gift
D - foreclosure - Correct Answer-C - a gift
Answer Feedback: This describes a gift which is the only right choice of a voluntary
transfer without consideration (money).
Who would you contact if you feel your property has been over assessed by the
county assessor?
A - Local housing council
B - Board of equalization
C - County tax collector
D - Assessment appeals board - Correct Answer-D - Assessment appeals board
Answer Feedback: You would contact this department to plead your case.
A single family home that had an assessed value that was much lower than the
current market value was sold on November 3rd at its current market value. What
will the new owners have to pay?
A - supplement tax based on the difference between the old assessed value and
the new assessed value for the remaining fiscal year
B - nothing
C - a prorated amount of tax
D - a flat tax of 10% - Correct Answer-A - supplement tax based on the difference
between the old assessed value and the new assessed value for the remaining
fiscal year
,Answer Feedback: When a property is sold for more than the assessed value, the
new buyer will receive a supplemental tax bill based on the new assessed value.
An income property owner was figuring out their net income for tax purposes. They
took the gross income and deducted certain expenses. What cannot be deducted?
A - management expenses
B - cost of a fence
C - interest for a loan
D - depreciation - Correct Answer-B - cost of a fence
Answer Feedback: A fence is a capital improvement and cannot be deducted as an
expense for tax purposes.
When referring to a building bought for income purposes, the owner can deduct all
of the following for income tax purposes, except:
A - loss of rental due to vacancies
B - depreciation when the property value increases
C - interest payments on the second trust deed
D - cost of repairing the vacant units - Correct Answer-A - loss of rental due to
vacancies
Answer Feedback: Vacancy losses cannot be deducted from income.
A sale leaseback purchaser would be least concerned about the:
A - depreciated value of the building
B - condition of the improvement
C - location of the property
D - creditworthiness of the tenant - Correct Answer-A - depreciated value of the
building
, Answer Feedback: Depreciated value has to do with the adjusted costs basis of the
building.
Why can a corporation not qualify as a "joint tenant" for ownership interest of real
property?
A - A corporation can be foreign or domestic
B - Only community property can be held as joint tenancy
C - It has perpetual existence
D - A corporation has a board of directors - Correct Answer-C - It has perpetual
existence
Answer Feedback: Corporations don't die and since one of the characteristics of
joint tenancy is the right of survivorship, a corporation owning real property in "joint
tenancy" would be an unfair advantage. Death is a requirement.
The assessment roll in real property taxes exists to establish the tax base. Who
sets the county tax rate?
A - The board of supervisors
B - The county assessor
C - The state assessor
D - The federal government - Correct Answer-A - The board of supervisors
Answer Feedback: The board supervisors of each county sets the maximum annual
tax on real property.
Which of the following is not an example of police power by the government?
A - eminent domain
B - zoning
C - the right to tax
D - adopt and enforce laws - Correct Answer-C - the right to tax
