CALIFORNIA REAL ESTATE EXAM MULTIPLE CHOICE QUESTIONS WITH 100% CORRECT AND VERIFIED ANSWERS|LATEST UPDATE 2025/2026

CALIFORNIA REAL ESTATE EXAM MULTIPLE
CHOICE QUESTIONS WITH 100% CORRECT AND
VERIFIED ANSWERS|LATEST UPDATE 2025/2026

An appraiser's definition of "Value" would be:
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a. present worth of all rights to future benefits arising out of ownership.
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b. the ability of one commodity to command other commodities in exchange. c. relationship b
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etween the thing desired and the potential purchaser.
B B B B B B B




d. all of the above. - ANSWER
B B B B B B d. all of the above.
B B B B




These are elements of value.
B B B B




Which of the following abbreviations is associated with the FHA?
B B B B B B B B B




a. NAR
B




b. CPM
B




c. MIP/MMI
B




d. MBA - ANSWER
B B B c. MIP/MMI B




MIP - Mortgage Insurance Premium/Mutual Mortgage Insurance.
B B B B B B




An investor group recently sold a parcel of land for $217,500, which was 45% more than they
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paid for it. The land is described as follows: N½ of the NW¼ of the SE¼ of Section 13 plus the
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W½ of the NE¼ of Section 13. What was the original price they paid per acre for the property?
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a. $1,500
B




b. $1,200
B




c. $1,000
B




1
Wicky

,d. $750 - ANSWER
B B B a. $1,500
B




$217,500 ÷ 145% (1.45) = $150,000 original price
B B B B B B B




Acreage: N½ of the NW¼ of the SE¼ = 20 acres
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W½ of the NE¼ = 80 acres
B B B B B B




Therefore, price per acre = $150,000 ÷ 100 = $1,500.B B B B B B B B B




Which of the following is NOT a lien?
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a. Encumbrance
B B




b. Homestead
B




c. Zoning
B




d. All of the above - ANSWER
B B B B B B d. All of the above
B B B B




A lien is a charge against property, whereby the property is made security for payment of the d
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ebt, i.e., attachment.
B B




A property sells for $121,000. The purchaser gives $10,000 down payment, agrees to place an
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additional $5,000 down, and ta ke over an existing VA first loan of $100,000, with the remaind
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er to be in the form of a 2nd note and trust deed. For these cond itions, how much would the d
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ocumentary tax stamps be? B B B




a. $1.10
B




b. $5.50B




c. $133.10
B




d. $23.10 - ANSWER
B B B d. $23.10
B




Do NOT pay on old existing loan being taken over. Therefore, ($121,000 -
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100,000) ÷ 1,000 x ($1.10) = 21.0 x $1.10 = $23.10.
B B B B B B B B B B B




2
Wicky

,If an appraiser were called upon to evaluate a public building, which had unique and distinctiv
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e architecture, he would employ which of the following methods of valuation?
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a. Replacement (cost approach)
B B B




b. Comparison
B




c. Capitalization
B




d. None of the above - ANSWER
B B B B B B a. Replacement (cost approach)
B B B




Since there is no income for capitalization and no means for comparing sales, replacement cos
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t is the only approach available.
B B B B B




The members of the National Association of Real Estate Brokers are called:
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a. Realtors®.
B




b. Consolidated Brokers.
B B




c. Realtists.
B




d. None of the above. - ANSWER
B B B B B B c. Realtists.
B




If the taxes on a newly acquired property will amount to 1.25% of the purchase price, what wil
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l the first installment (6 months) bill for a home costing $125,500 be?
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a. $765.35
B




b. $742.51
B




c. $784.38
B




d. $795.97 - ANSWER
B B B c. $784.38
B




$125,500 x (.0125) ÷ 2 = $784.38. B B B B B B




3
Wicky

, The best source for establishing the age of a home would be the:
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a. county tax assessor.
B B B




b. building and safety department.
B B B B




c. county recorder's office.
B B B




d. either a or b. - ANSWER
B B B B B B a. county tax assessor.
B B B




The county tax assessor is the best source for establishing the age of a home.
B B B B B B B B B B B B B B




"Gross multiplier" is used to determine value of certain types of income properties. It is deter
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mined by: B




a. dividing the gross rental income by the appraised value. b. multiplying the market price by t
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he capitalization rate.
B B




c. dividing the sales price by the gross monthly rental.
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d. multiplying the gross monthly rental by a reasonable cap rate. -
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B ANSWER c. dividing the sales price by the gross monthly rental.
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Gross Rent Multiplier is a rough, quick way of converting gross rent into market value.
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Which of the following could be used with a purchaser without the immediate involvement of
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a title change?
B B




a. Grant deed
B B




b. Land contract
B B




c. Quit claim deed
B B B




d. Warranty deed - ANSWER
B B B B b. Land contract
B B




4
Wicky