CALIFORNIA REAL ESTATE EXAM WITH 100 VERIFIED SOLUT
IONS 2025
An |appraiser's |definition |of |"Value" |would |be:
a. present |worth |of |all |rights |to |future |benefits |arising |out |of |ownership.
b. the |ability |of |one |commodity |to |command |other |commodities |in |exchange. |c.
|relationship |between |the |thing |desired |and |the |potential |purchaser.
d. |all |of |the |above.
d. |all |of |the |above.
These |are |elements |of |value.
Which |of |the |following |abbreviations |is |associated |with |the |FHA?
a. NAR
b. CPM
c. MIP/MMI
d. MBA
c. MIP/MMI
MIP |- |Mortgage |Insurance |Premium/Mutual |Mortgage |Insurance.
An |investor |group |recently |sold |a |parcel |of |land |for |$217,500, |which |was |45% |more |than
|they |paid |for |it. |The |land |is |described |as |follows: |N½ |of |the |NW¼ |of |the |SE¼ |of |Section
|13 |plus |the |W½ |of |the |NE¼ |of |Section |13. |What |was |the |original |price |they |paid |per |acre
|for |the |property?
a. $1,500
b. $1,200
c. $1,000
d. $750
a. $1,500
$217,500 |÷ |145% |(1.45) |= |$150,000 |original |price
|Acreage: |N½ |of |the |NW¼ |of |the |SE¼ |= |20 |acres
|W½ |of |the |NE¼ |= |80 |acres
Therefore, |price |per |acre |= |$150,000 |÷ |100 |= |$1,500.
Which |of |the |following |is |NOT |a |lien?
|
a. Encumbrance
,b. Homestead
c. Zoning
d. All |of |the |above
d. |All |of |the |above
A |lien |is |a |charge |against |property, |whereby |the |property |is |made |security |for |payment
|of |the |debt, |i.e., |attachment.
A |property |sells |for |$121,000. |The |purchaser |gives |$10,000 |down |payment, |agrees |to
|place |an |additional |$5,000 |down, |and |ta |ke |over |an |existing |VA |first |loan |of |$100,000,
|with |the |remainder |to |be |in |the |form |of |a |2nd |note |and |trust |deed. |For |these |cond |itions,
|how |much |would |the |documentary |tax |stamps |be?
a. $1.10
b. $5.50
c. $133.10
d. $23.10
d. |$23.10
Do |NOT |pay |on |old |existing |loan |being |taken |over. |Therefore, |($121,000 |- |100,000) |÷ |1,000
|x |($1.10) |= |21.0 |x |$1.10 |= |$23.10.
If |an |appraiser |were |called |upon |to |evaluate |a |public |building, |which |had |unique |and
|distinctive |architecture, |he |would |employ |which |of |the |following |methods |of |valuation?
a. Replacement |(cost |approach)
b. Comparison
c. Capitalization
d. None |of |the |above
a. Replacement |(cost |approach)
Since |there |is |no |income |for |capitalization |and |no |means |for |comparing |sales, |replacement
|cost |is |the |only |approach |available.
The |members |of |the |National |Association |of |Real |Estate |Brokers |are |called:
a. Realtors®.
b. Consolidated |Brokers.
c. Realtists.
d. None |of |the |above.
c. |Realtists.
If |the |taxes |on |a |newly |acquired |property |will |amount |to |1.25% |of |the |purchase |price,
|what |will |the |first |installment |(6 |months) |bill |for |a |home |costing |$125,500 |be?
, a. $765.35
b. $742.51
c. $784.38
d. $795.97
c. |$784.38
$125,500 |x |(.0125) |÷ |2 |= |$784.38.
The |best |source |for |establishing |the |age |of |a |home |would |be |the:
a. county |tax |assessor.
b. building |and |safety |department.
c. county |recorder's |office.
d. either |a |or |b.
a. county |tax |assessor.
The |county |tax |assessor |is |the |best |source |for |establishing |the |age |of |a |home.
"Gross |multiplier" |is |used |to |determine |value |of |certain |types |of |income |properties. |It |is
|determined |by:
a. dividing |the |gross |rental |income |by |the |appraised |value. |b. |multiplying |the |market |price
|by |the |capitalization |rate.
c. |dividing |the |sales |price |by |the |gross |monthly |rental.
d. |multiplying |the |gross |monthly |rental |by |a |reasonable |cap |rate.
c. |dividing |the |sales |price |by |the |gross |monthly |rental.
Gross |Rent |Multiplier |is |a |rough, |quick |way |of |converting |gross |rent |into |market |value.
Which |of |the |following |could |be |used |with |a|purchaser |without |the |immediate
|involvement |of |a |title |change?
a. Grant |deed
b. Land |contract
c. Quit |claim |deed
d. Warranty |deed
b. Land |contract
The |land |contract |does |not |pass |title |until |some |later |time, |whereby |the |buyer |(vendee)
|has |performed |certain |requirements |(i.e., |accumulate |a |minimum |amount |of |equity |for
|down |payment); |title |in |the |meantime |remains |with |the |seller |(vendor).
IONS 2025
An |appraiser's |definition |of |"Value" |would |be:
a. present |worth |of |all |rights |to |future |benefits |arising |out |of |ownership.
b. the |ability |of |one |commodity |to |command |other |commodities |in |exchange. |c.
|relationship |between |the |thing |desired |and |the |potential |purchaser.
d. |all |of |the |above.
d. |all |of |the |above.
These |are |elements |of |value.
Which |of |the |following |abbreviations |is |associated |with |the |FHA?
a. NAR
b. CPM
c. MIP/MMI
d. MBA
c. MIP/MMI
MIP |- |Mortgage |Insurance |Premium/Mutual |Mortgage |Insurance.
An |investor |group |recently |sold |a |parcel |of |land |for |$217,500, |which |was |45% |more |than
|they |paid |for |it. |The |land |is |described |as |follows: |N½ |of |the |NW¼ |of |the |SE¼ |of |Section
|13 |plus |the |W½ |of |the |NE¼ |of |Section |13. |What |was |the |original |price |they |paid |per |acre
|for |the |property?
a. $1,500
b. $1,200
c. $1,000
d. $750
a. $1,500
$217,500 |÷ |145% |(1.45) |= |$150,000 |original |price
|Acreage: |N½ |of |the |NW¼ |of |the |SE¼ |= |20 |acres
|W½ |of |the |NE¼ |= |80 |acres
Therefore, |price |per |acre |= |$150,000 |÷ |100 |= |$1,500.
Which |of |the |following |is |NOT |a |lien?
|
a. Encumbrance
,b. Homestead
c. Zoning
d. All |of |the |above
d. |All |of |the |above
A |lien |is |a |charge |against |property, |whereby |the |property |is |made |security |for |payment
|of |the |debt, |i.e., |attachment.
A |property |sells |for |$121,000. |The |purchaser |gives |$10,000 |down |payment, |agrees |to
|place |an |additional |$5,000 |down, |and |ta |ke |over |an |existing |VA |first |loan |of |$100,000,
|with |the |remainder |to |be |in |the |form |of |a |2nd |note |and |trust |deed. |For |these |cond |itions,
|how |much |would |the |documentary |tax |stamps |be?
a. $1.10
b. $5.50
c. $133.10
d. $23.10
d. |$23.10
Do |NOT |pay |on |old |existing |loan |being |taken |over. |Therefore, |($121,000 |- |100,000) |÷ |1,000
|x |($1.10) |= |21.0 |x |$1.10 |= |$23.10.
If |an |appraiser |were |called |upon |to |evaluate |a |public |building, |which |had |unique |and
|distinctive |architecture, |he |would |employ |which |of |the |following |methods |of |valuation?
a. Replacement |(cost |approach)
b. Comparison
c. Capitalization
d. None |of |the |above
a. Replacement |(cost |approach)
Since |there |is |no |income |for |capitalization |and |no |means |for |comparing |sales, |replacement
|cost |is |the |only |approach |available.
The |members |of |the |National |Association |of |Real |Estate |Brokers |are |called:
a. Realtors®.
b. Consolidated |Brokers.
c. Realtists.
d. None |of |the |above.
c. |Realtists.
If |the |taxes |on |a |newly |acquired |property |will |amount |to |1.25% |of |the |purchase |price,
|what |will |the |first |installment |(6 |months) |bill |for |a |home |costing |$125,500 |be?
, a. $765.35
b. $742.51
c. $784.38
d. $795.97
c. |$784.38
$125,500 |x |(.0125) |÷ |2 |= |$784.38.
The |best |source |for |establishing |the |age |of |a |home |would |be |the:
a. county |tax |assessor.
b. building |and |safety |department.
c. county |recorder's |office.
d. either |a |or |b.
a. county |tax |assessor.
The |county |tax |assessor |is |the |best |source |for |establishing |the |age |of |a |home.
"Gross |multiplier" |is |used |to |determine |value |of |certain |types |of |income |properties. |It |is
|determined |by:
a. dividing |the |gross |rental |income |by |the |appraised |value. |b. |multiplying |the |market |price
|by |the |capitalization |rate.
c. |dividing |the |sales |price |by |the |gross |monthly |rental.
d. |multiplying |the |gross |monthly |rental |by |a |reasonable |cap |rate.
c. |dividing |the |sales |price |by |the |gross |monthly |rental.
Gross |Rent |Multiplier |is |a |rough, |quick |way |of |converting |gross |rent |into |market |value.
Which |of |the |following |could |be |used |with |a|purchaser |without |the |immediate
|involvement |of |a |title |change?
a. Grant |deed
b. Land |contract
c. Quit |claim |deed
d. Warranty |deed
b. Land |contract
The |land |contract |does |not |pass |title |until |some |later |time, |whereby |the |buyer |(vendee)
|has |performed |certain |requirements |(i.e., |accumulate |a |minimum |amount |of |equity |for
|down |payment); |title |in |the |meantime |remains |with |the |seller |(vendor).
