Real Estate Salesperson California State Exam |150 questions with correct answers

Which of the following is most vital or important in planning a subdivision: CORRECT ANSWER Market Analysis When rent is computed on the gross sales of a business occupying real property, the lease is correctly termed: CORRECT ANSWER Percentage Lease What is not an adequate method of transferring property? CORRECT ANSWER Executive Sale What is considered personal property? CORRECT ANSWER Existing Mortgage If an income property is valued at $100,000 based on an 8% capitalization rate, what would be the value of the property if a 10% return is required: CORRECT ANSWER $80,000 $100,000 Value of Property x 0.08 Capitalization Rate =$8,000 Net Income $8,000 Net Income ÷ 0.10 of Return =$80,000 Value of Property The value of the best property in the neighborhood will be adversely affected by the presence of comparatively substandard property is a statement relating to value and is known as the Principle of: CORRECT ANSWER Regression