CALIFORNIA REAL ESTATE EXAM 3

. You are preparing a competitive market analysis on a vacant lot that you hope to list for sale. Which of the following approaches to value will be used in the development of the estimated value? A. Cost approach B. Gross rent multiplier C. Income approach D. Sales comparison approach - D. Sales comparison approach 2. Which of the following comparables would be the most helpful in appraising a home? A. A similar home sold for nonpayment of taxes. B. A similar property sold under duress. C. A similar home sold by a motivated seller to a motivated buyer. D. A similar home sold by an unwilling seller to an unsure buyer. - C. A similar home sold by a motivated seller to a motivated buyer. 3. The period over which a property may be profitably utilized is called its: A. economic life B. amortized life C. income life D. net life - A. economic life 4. Wear and tear to the load bearing members of a building would be classified as: A. functional obsolescence-curable B. physical deterioration-curable C. functional obsolescence-incurable D. physical deterioration-incurable - D. physical deterioration-incurable 5. While the economy is experiencing inflation, interest rates: A. drop and housing prices rise B. rise and housing prices drop C. rise and housing prices rise D. None of the above - C. rise and housing prices rise 6. When using the market-data approach to appraise a single-family home, recent sales are compared to the subject property as to: A. capitalization rates B. exterior features only C. the entire property D. rental income - C The entire property 7. A real estate commission is usually based on the: A. listing price B. selling price C. down payment D. loan amount - B selling price 8. The increase of value with the passage of time describes: A. appreciation B. "return on" investment C. "return of" investment D. depreciation A- appreciation 9. Which of the following statements does NOT correctly describe a fiduciary? A. A fiduciary owes loyalty to the principal B. A fiduciary must conform to the principal's legal instructions C. A fiduciary is an agent D. A fiduciary is a neutral third party D - Fiduciary is a neutral third party 10. A broker secured a buyer for his client and the seller accepted. Under which type of listing could a broker not receive a commission? A. net listing B. open listing C. exclusive listing D. exclusive authorization and right to sell listing A- Net listing