Real Estate Crash Course Practice Exam - Questions
With Accurate Solutions
When comparing condominiums and rented apartments, which of the
following is true:
a. in both the condominium and apartment, each resident would receive a
separate property tax bill.
b. each occupant would have a certain kind of estate in real property
c. both A and B
d. none of the above Right Ans - each occupant would have a certain kind of
estate in real property
With regard to the income capitalization approach, an appraiser would not
deduct which of the following expenses to calculate net income:
a. mortgage interest
b. vacancy losses
c. property management fees
d. utilities Right Ans - mortgage interest
The most reliable method used by an appraiser in the valuation of a public
library would be:
a. sales comparison approach
b. income capitalization approach
c. cost approach
d. libraries cannot be appraised by appraisers Right Ans - cost approach -
since libraries don't have comparable nor do they produce income it's not
going to be income capitalization approach
3 methods to conduct an appraisal by an appraiser Right Ans - 1. sales
comparison approach
2. income capitalization approach (value = property annual net
income/appropriate rate of return)
3. cost approach
,when analyzing whether or not an agent used reasonable skill and
competence in a real estate transaction, the courts use ____ to make this
determination.
a. oral examinations
b. written examinations
c. a standard of care
d. arbitration Right Ans - a standard of care
if a citizen died without a will and has no heirs, which of the following will
occur after the statutorily required waiting period:
a. eminent domain
b. police power
c. escheat to the state
d. nuncupation Right Ans - escheat to the state
the taking of land because a party died without having a will (intestate) and
no heir is the definition for... Right Ans - escheat
the supreme power of the govt to take private property for public use upon
payment of just compensation to the owner is the definition for... Right Ans
- eminent domain
Private property restrictions placed upon real property are typically enforced
by:
a. condemnation
b. eminent domain
c. injunction
d. zoning Right Ans - injunction (a court order that requires a party to do,
or to refrain from doing, certain acts).
On occasion, a given city many attempt to change the zoning in an area to be
more inline with the general plan. This process of rezoning might involve all of
the following, except:
a. limitations on building density
b. controls regarding the size of building able to be constructed
,c. limitations of land use
d. retroactive zoning limitations requiring existing structures to be torn down
Right Ans - retroactive zoning limitations requiring existing structures to be
torn down
An injured party obtained a judgement (was sued) against another and an
abstract of judgement was subsequently recorded with the county recorder/
This lien is a/an:
a. voluntary lien
b. general lien
c. specific lien
d. mechanics lien Right Ans - general lien (judgements are involuntary,
since one is getting sued... a judgement can affect everything you own so yes,
this is a general lien.... it's also not a specific lien, nor mechanics lien for a job
on the property)
The appraisal of an income producing property is made as of a "given date" to
indicate:
a. the assessed value of a property
b. the date of the physical inspection of the property
c. the market conditions at the time of the appraisal
d. all of the above Right Ans - the market conditions at the time of the
appraisal (appraisal is valid for one day of the date given, only because market
conditions can change the next day)
easements create the right to use the land of another, typically for access. Of
the below answer choices, which is NOT characteristic of an easement:
a. easements can be created through the use of a DEED or other instrument of
conveyance
b. easements are non-possessory in nature
c. the owner of the land can terminate the easement at any time
d. easements typically involve the concept of ingress and egress Right Ans -
the owner (servient tenant) of the land can terminate the easement at any
time (...is not true, so this is the correct answer)... the dominant tenant CAN
terminate the easement at any time even though he/she is not the owner of
the property.
, In real estate, the act of one broker representing both the buyer and seller in
the same transaction. Legal, as long as disclosure and approval are secured.
This is the definition of:
a. dual agency
b. single agency
c. agency by ratification
d. agency by estoppel Right Ans - dual agency
Assume that a real estate broker has secured a listing and that listing is later
sold by one of his/her salespeople. What type of agency has occurred?
a. dual agency
b. single agency
c. agency by ratification
d. agency by estoppel Right Ans - dual agency (One same brokerage had
those 2 separate RE salespeople on the listing)
Definition: A self-employed appraiser that charges a client on a per appraisal
basis is known as:
a. MAI (Member appraisal institute)
b. staff appraiser
c. fee appraiser
d. certified appraiser Right Ans - fee appraiser
With regard to property, which of the following is true:
a. if an owner has an estate in an item, the item must be real property
b. if an item is real property, it is also known as chattel
c. if an item is a fixture, it must be personal property
d. if an item is not personal property, it must be real property Right Ans - if
an item is not personal property, is must be real property
All of the following are required to have a valid contract in CA except:
a. lawful object
b. parties capable of contracting
With Accurate Solutions
When comparing condominiums and rented apartments, which of the
following is true:
a. in both the condominium and apartment, each resident would receive a
separate property tax bill.
b. each occupant would have a certain kind of estate in real property
c. both A and B
d. none of the above Right Ans - each occupant would have a certain kind of
estate in real property
With regard to the income capitalization approach, an appraiser would not
deduct which of the following expenses to calculate net income:
a. mortgage interest
b. vacancy losses
c. property management fees
d. utilities Right Ans - mortgage interest
The most reliable method used by an appraiser in the valuation of a public
library would be:
a. sales comparison approach
b. income capitalization approach
c. cost approach
d. libraries cannot be appraised by appraisers Right Ans - cost approach -
since libraries don't have comparable nor do they produce income it's not
going to be income capitalization approach
3 methods to conduct an appraisal by an appraiser Right Ans - 1. sales
comparison approach
2. income capitalization approach (value = property annual net
income/appropriate rate of return)
3. cost approach
,when analyzing whether or not an agent used reasonable skill and
competence in a real estate transaction, the courts use ____ to make this
determination.
a. oral examinations
b. written examinations
c. a standard of care
d. arbitration Right Ans - a standard of care
if a citizen died without a will and has no heirs, which of the following will
occur after the statutorily required waiting period:
a. eminent domain
b. police power
c. escheat to the state
d. nuncupation Right Ans - escheat to the state
the taking of land because a party died without having a will (intestate) and
no heir is the definition for... Right Ans - escheat
the supreme power of the govt to take private property for public use upon
payment of just compensation to the owner is the definition for... Right Ans
- eminent domain
Private property restrictions placed upon real property are typically enforced
by:
a. condemnation
b. eminent domain
c. injunction
d. zoning Right Ans - injunction (a court order that requires a party to do,
or to refrain from doing, certain acts).
On occasion, a given city many attempt to change the zoning in an area to be
more inline with the general plan. This process of rezoning might involve all of
the following, except:
a. limitations on building density
b. controls regarding the size of building able to be constructed
,c. limitations of land use
d. retroactive zoning limitations requiring existing structures to be torn down
Right Ans - retroactive zoning limitations requiring existing structures to be
torn down
An injured party obtained a judgement (was sued) against another and an
abstract of judgement was subsequently recorded with the county recorder/
This lien is a/an:
a. voluntary lien
b. general lien
c. specific lien
d. mechanics lien Right Ans - general lien (judgements are involuntary,
since one is getting sued... a judgement can affect everything you own so yes,
this is a general lien.... it's also not a specific lien, nor mechanics lien for a job
on the property)
The appraisal of an income producing property is made as of a "given date" to
indicate:
a. the assessed value of a property
b. the date of the physical inspection of the property
c. the market conditions at the time of the appraisal
d. all of the above Right Ans - the market conditions at the time of the
appraisal (appraisal is valid for one day of the date given, only because market
conditions can change the next day)
easements create the right to use the land of another, typically for access. Of
the below answer choices, which is NOT characteristic of an easement:
a. easements can be created through the use of a DEED or other instrument of
conveyance
b. easements are non-possessory in nature
c. the owner of the land can terminate the easement at any time
d. easements typically involve the concept of ingress and egress Right Ans -
the owner (servient tenant) of the land can terminate the easement at any
time (...is not true, so this is the correct answer)... the dominant tenant CAN
terminate the easement at any time even though he/she is not the owner of
the property.
, In real estate, the act of one broker representing both the buyer and seller in
the same transaction. Legal, as long as disclosure and approval are secured.
This is the definition of:
a. dual agency
b. single agency
c. agency by ratification
d. agency by estoppel Right Ans - dual agency
Assume that a real estate broker has secured a listing and that listing is later
sold by one of his/her salespeople. What type of agency has occurred?
a. dual agency
b. single agency
c. agency by ratification
d. agency by estoppel Right Ans - dual agency (One same brokerage had
those 2 separate RE salespeople on the listing)
Definition: A self-employed appraiser that charges a client on a per appraisal
basis is known as:
a. MAI (Member appraisal institute)
b. staff appraiser
c. fee appraiser
d. certified appraiser Right Ans - fee appraiser
With regard to property, which of the following is true:
a. if an owner has an estate in an item, the item must be real property
b. if an item is real property, it is also known as chattel
c. if an item is a fixture, it must be personal property
d. if an item is not personal property, it must be real property Right Ans - if
an item is not personal property, is must be real property
All of the following are required to have a valid contract in CA except:
a. lawful object
b. parties capable of contracting
