California Real Estate Exam #1 Questions
& Verified Answers, .
A bearing wall:
(a) generally has stronger supportive members.
(b) can be built at any angle to the door.
(c) is usually left alone during remodeling.
(d) All of the above - CORRECT ANSWERS D
A bearing wall is a main or supporting wall referred to as a load-bearing wall, usually supporting a roof
above. It usually is of stronger construction than other members and is usually left alone when
remodeling. It is possible for a bearing wall to be built in a variety of angles to a door.
What is the length of measurement referred to as a "chain?"
(a) 5,280 feet
(b) 66 feet
(c) 16.5 feet
(d) 9 yards - CORRECT ANSWERS B
The total length of a surveyor's chain is 66 feet.
A deed would contain all of the following EXCEPT:
(a) a description of the property.
(b) a date.
(c) the signature of the grantee.
(d) a granting clause. - CORRECT ANSWERS C
,A valid grant deed requires the signature of the grantor, not the grantee.
When a broker keeps records electronically, the program he would use for record retrieval is:
(a) RAM
(b) SCORE
(c) WORM
(d) DOS - CORRECT ANSWERS C
WORM means "write once read many." This indicates that the record cannot be changed once it is
entered.
Which of the following must comply with the Subdivision Map Act?
(a) noncontiguous units.
(b) parcels of 160 acres or more.
(c) leasing commercial office spaces.
(d) None of the above - CORRECT ANSWERS B
Parcels of 160-acres or more are exempt from the Subdivisions Lands Law.
Which of the following best describes a down payment?
(a) prepayment
(b) front money
(c) deposit
(d) security - CORRECT ANSWERS C
,Down payment (or downpayment, also called a deposit), is an initial up-front partial payment for the
purchase of a house. It is usually paid in cash or equivalent at the time of finalizing the transaction. A
loan of some sort is then required to finance the remainder of the payment.
A veteran may purchase a home under Cal Vet by a:
(a) contract of sale.
(b) trust deed.
(c) mortgage.
(d) Any of the above - CORRECT ANSWERS A
The property the veteran wishes to buy is purchased by the Department of Veteran's Affairs and in turn
re-sold to the veteran on a Land Contract of Sale.
In which of the following ways is fraud different from misrepresentation?
(a) A misrepresentation is a deliberate attempt to deceive while fraud is not.
(b) Fraud is a deliberate attempt to deceive while a misrepresentation is not.
(c) There is no difference between fraud and misrepresentation.
(d) A misrepresentation cannot result in discipline, and fraud will always involve discipline. - CORRECT
ANSWERS B
Fraud involves a deliberate attempt to deceive, misrepresentation does not. A licensee may be
disciplined for either fraud or misrepresentation.
Which of the following would be treated as a credit on the seller's closing statement?
(a) prepaid insurance
, (b) prepaid rents of tenants
(c) both (a) and (b)
(d) neither (a) nor (b) - CORRECT ANSWERS A
Since this is prepaid insurance, it would be a credit on the seller's closing statement.
An appraiser is appraising a property which is next door to an abandoned gas station. The appraiser
should recommend a:
(a) soil engineering study.
(b) toxic waste study.
(c) seismic study
(d) All of the above - CORRECT ANSWERS B
There is a possibility that the old underground fuel storage tanks used by the gas station were left in the
ground and may be leaking. A toxic waste study would require a soil analysis to determine if the tanks
have leaked. A soil engineering study is used to test the soil's ability to support a structure. (See Toxic
Substance Control Act)
The basic valuation principle underlying the market approach is:
(a) change.
(b) increase and decrease.
(c) anticipation
(d) substitution. - CORRECT ANSWERS D
& Verified Answers, .
A bearing wall:
(a) generally has stronger supportive members.
(b) can be built at any angle to the door.
(c) is usually left alone during remodeling.
(d) All of the above - CORRECT ANSWERS D
A bearing wall is a main or supporting wall referred to as a load-bearing wall, usually supporting a roof
above. It usually is of stronger construction than other members and is usually left alone when
remodeling. It is possible for a bearing wall to be built in a variety of angles to a door.
What is the length of measurement referred to as a "chain?"
(a) 5,280 feet
(b) 66 feet
(c) 16.5 feet
(d) 9 yards - CORRECT ANSWERS B
The total length of a surveyor's chain is 66 feet.
A deed would contain all of the following EXCEPT:
(a) a description of the property.
(b) a date.
(c) the signature of the grantee.
(d) a granting clause. - CORRECT ANSWERS C
,A valid grant deed requires the signature of the grantor, not the grantee.
When a broker keeps records electronically, the program he would use for record retrieval is:
(a) RAM
(b) SCORE
(c) WORM
(d) DOS - CORRECT ANSWERS C
WORM means "write once read many." This indicates that the record cannot be changed once it is
entered.
Which of the following must comply with the Subdivision Map Act?
(a) noncontiguous units.
(b) parcels of 160 acres or more.
(c) leasing commercial office spaces.
(d) None of the above - CORRECT ANSWERS B
Parcels of 160-acres or more are exempt from the Subdivisions Lands Law.
Which of the following best describes a down payment?
(a) prepayment
(b) front money
(c) deposit
(d) security - CORRECT ANSWERS C
,Down payment (or downpayment, also called a deposit), is an initial up-front partial payment for the
purchase of a house. It is usually paid in cash or equivalent at the time of finalizing the transaction. A
loan of some sort is then required to finance the remainder of the payment.
A veteran may purchase a home under Cal Vet by a:
(a) contract of sale.
(b) trust deed.
(c) mortgage.
(d) Any of the above - CORRECT ANSWERS A
The property the veteran wishes to buy is purchased by the Department of Veteran's Affairs and in turn
re-sold to the veteran on a Land Contract of Sale.
In which of the following ways is fraud different from misrepresentation?
(a) A misrepresentation is a deliberate attempt to deceive while fraud is not.
(b) Fraud is a deliberate attempt to deceive while a misrepresentation is not.
(c) There is no difference between fraud and misrepresentation.
(d) A misrepresentation cannot result in discipline, and fraud will always involve discipline. - CORRECT
ANSWERS B
Fraud involves a deliberate attempt to deceive, misrepresentation does not. A licensee may be
disciplined for either fraud or misrepresentation.
Which of the following would be treated as a credit on the seller's closing statement?
(a) prepaid insurance
, (b) prepaid rents of tenants
(c) both (a) and (b)
(d) neither (a) nor (b) - CORRECT ANSWERS A
Since this is prepaid insurance, it would be a credit on the seller's closing statement.
An appraiser is appraising a property which is next door to an abandoned gas station. The appraiser
should recommend a:
(a) soil engineering study.
(b) toxic waste study.
(c) seismic study
(d) All of the above - CORRECT ANSWERS B
There is a possibility that the old underground fuel storage tanks used by the gas station were left in the
ground and may be leaking. A toxic waste study would require a soil analysis to determine if the tanks
have leaked. A soil engineering study is used to test the soil's ability to support a structure. (See Toxic
Substance Control Act)
The basic valuation principle underlying the market approach is:
(a) change.
(b) increase and decrease.
(c) anticipation
(d) substitution. - CORRECT ANSWERS D
