California Real Estate License Exam Questions with Complete Answers

California Real Estate License Exam Questions with Complete Answers 1.17. Leland uses an 8% capitalization rate for a 40-unit apartment building that generates $174,000 net income. Which of the following is the most appropriate value of this property? A. $1,400,000 B. $1,566,000 C. $2,175,000 D. $2,170,000 - Answer-$174,000 / .08 = $2,175,000 1.18. A broker is negotiating a 25-year commercial lease at a strait annual rental of $30,000. The broker is to receive a compensation for negotiating this lease as follows: 7% of the annual rental for the first five years, 5% of the annual rental the next 4 years, 3% of the annual rental for each of the next fifteen years; and 1% of the annual rental for every year thereafter during the term of the lease. By the end of the 19th year, the broker will have received a total commission of most nearly: A. $25,000 B. $20,800 C. $20,500 D. $20,700 - Answer-$30,000 x 7% = $2,100 x 1 = $2,100 $30,000 x 5% = $1,500 x 4 = $6,000 $30,000 x 3% = $900 x 14 = $12,600 Total: $20,700 1.19. A salesman was to receive a 45% share of a 6% gross commission. He received $8,100. The property sold for: A. $300,000 B. $200,000 C. $280,000 D. $400,000 - Answer-$8,100 / 45% = $18,000 $18,000 / 6% = $300,000 1.20. Two brokers agree to split a 4 1/2 % commission on a 50-50 basis on the sale of a property for $162,500. The listing salesperson agreed to a 50-50 split with his employing broker. What would be the commission amount for the listing salesperson? A. $3,626.20 B. $1,828.13 C. $5,400.00 D. $4,860.00 - Answer-$162,500 x 4.5% = $7,312.50 $7,312 x 50% = $3,656.25 $3,656.25 x 50% = $1,828.13