Barney Fletcher Practice Exam 1 | Real Estate Pre-Licensing Study Guide & Test Prep
Which would NOT be used in the capitalization approach?
A. gross income
B. operating expenses
C. reproduction cost
D. allowance for vacancy - (ANSWER)C. reproduction cost
A property had a land value of $40,000, a 2,000 square feet structure with a rebuilding cost of $70 per
square foot, depreciation of $5,000 due to functional obsolescence and $1,500 due to physical
depreciation. What would be the estimate of value for this property using the cost approach?
A. $133,500
B. $140,000
C. $173,500
D. $180,000 - (ANSWER)C. $173,500
2,000 sf x $70 = $140,000. $140,000 - $5,000 - $1,500 = $133,500. $133,500 + $40,000 = $173,500
A well maintained home in an area of run down homes would be an example of:
A. physical depreciation
B. functional obsolescence
C. external obsolescence
D. reproduction cost - (ANSWER)C. external obsolescence
An appraiser who was considering the effective age of a property with the chronological age would
usually accept each of the following statements EXCEPT:
A. the effective age may be less than the chronological age
B. improvement with new materials could decrease the effective age
,Barney Fletcher Practice Exam 1 | Real Estate Pre-Licensing Study Guide & Test Prep
C. modernizing or maintaining the building could decrease the effective age
D. the effective age is usually greater than the chronological age - (ANSWER)D. the effective age is
usually greater than the chronological age
Which is NOT true about a mechanic's lien?
A. it can be filed for the value of the cost of the improvement
B. it must be filed within a specified time period
C. it would have to be enforced by the court
D. its priority rights are determined by the date of recording - (ANSWER)D. its priority rights are
determined by the date of recording
A property was assessed at 25% of market value. The rate was $5 per $1,000. If the homeowner actually
paid $150, what was the total value of the property?
A. $30,000
B. $82,500
C. $120,000
D. $133,000 - (ANSWER)C. $120,000
$150 divided by .5% = $30,000. $30,000 divided by 25% = a total value of $120,000
A property had several different encumbrances recorded against it. Which of the following factors
would indicate which would be paid off first?
A. date of acknowledgement
B. amount of the lien
C. whether it was a voluntary or involuntary lien
D. type of lien - (ANSWER)D. type of lien
, Barney Fletcher Practice Exam 1 | Real Estate Pre-Licensing Study Guide & Test Prep
A cooperative would take title to property under which of the following categories?
A. tenants in common
B. joint tenancy
C. severalty
D. tenancy by the entireties - (ANSWER)C. severalty
Which of the following items would result in a transfer of real estate through court action?
A. police power
B. constructive notice
C. deed recordation
D. eminent domain - (ANSWER)D. eminent domain
A property with a market value of $7,000 was assessed at 96% of value. The tax rate was 63 mills. What
were the annual taxes?
A. $43
B. $44
C. $423
D. $441 - (ANSWER)C. $423
$7,000 x 96% = $6,720. $6,720 x 6.3% = $423.36
Which of the following is NOT an appurtenance that belongs to and passes with the land?
A. right
B. privilege
C. improvement
Which would NOT be used in the capitalization approach?
A. gross income
B. operating expenses
C. reproduction cost
D. allowance for vacancy - (ANSWER)C. reproduction cost
A property had a land value of $40,000, a 2,000 square feet structure with a rebuilding cost of $70 per
square foot, depreciation of $5,000 due to functional obsolescence and $1,500 due to physical
depreciation. What would be the estimate of value for this property using the cost approach?
A. $133,500
B. $140,000
C. $173,500
D. $180,000 - (ANSWER)C. $173,500
2,000 sf x $70 = $140,000. $140,000 - $5,000 - $1,500 = $133,500. $133,500 + $40,000 = $173,500
A well maintained home in an area of run down homes would be an example of:
A. physical depreciation
B. functional obsolescence
C. external obsolescence
D. reproduction cost - (ANSWER)C. external obsolescence
An appraiser who was considering the effective age of a property with the chronological age would
usually accept each of the following statements EXCEPT:
A. the effective age may be less than the chronological age
B. improvement with new materials could decrease the effective age
,Barney Fletcher Practice Exam 1 | Real Estate Pre-Licensing Study Guide & Test Prep
C. modernizing or maintaining the building could decrease the effective age
D. the effective age is usually greater than the chronological age - (ANSWER)D. the effective age is
usually greater than the chronological age
Which is NOT true about a mechanic's lien?
A. it can be filed for the value of the cost of the improvement
B. it must be filed within a specified time period
C. it would have to be enforced by the court
D. its priority rights are determined by the date of recording - (ANSWER)D. its priority rights are
determined by the date of recording
A property was assessed at 25% of market value. The rate was $5 per $1,000. If the homeowner actually
paid $150, what was the total value of the property?
A. $30,000
B. $82,500
C. $120,000
D. $133,000 - (ANSWER)C. $120,000
$150 divided by .5% = $30,000. $30,000 divided by 25% = a total value of $120,000
A property had several different encumbrances recorded against it. Which of the following factors
would indicate which would be paid off first?
A. date of acknowledgement
B. amount of the lien
C. whether it was a voluntary or involuntary lien
D. type of lien - (ANSWER)D. type of lien
, Barney Fletcher Practice Exam 1 | Real Estate Pre-Licensing Study Guide & Test Prep
A cooperative would take title to property under which of the following categories?
A. tenants in common
B. joint tenancy
C. severalty
D. tenancy by the entireties - (ANSWER)C. severalty
Which of the following items would result in a transfer of real estate through court action?
A. police power
B. constructive notice
C. deed recordation
D. eminent domain - (ANSWER)D. eminent domain
A property with a market value of $7,000 was assessed at 96% of value. The tax rate was 63 mills. What
were the annual taxes?
A. $43
B. $44
C. $423
D. $441 - (ANSWER)C. $423
$7,000 x 96% = $6,720. $6,720 x 6.3% = $423.36
Which of the following is NOT an appurtenance that belongs to and passes with the land?
A. right
B. privilege
C. improvement
