1
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California Real Estate Exam Multiple
Choice Questions and Answers (100%
Correct Answers) Already Graded A+
An appraiser's definition of "Value" would be:
a. present worth of all rights to future benefits arising out of
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ownership.
b. the ability of one commodity to command other commodities
in exchange. c. relationship between the thing desired and the
potential purchaser.
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d. all of the above. —ANS: 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 —ANS: 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?
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a. $1,500
b. $1,200
c. $1,000
d. $750 —ANS: 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
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Therefore, price per acre = $150,000 ÷ 100 = $1,500.
Which of the following is NOT a lien?
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a. Encumbrance
b. Homestead
c. Zoning
d. All of the above —ANS: 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 —ANS: d. $23.10
, 3
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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
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d. None of the above —ANS: a. Replacement (cost approach)
Since there is no income for capitalization and no means for
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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. —ANS: 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 —ANS: c. $784.38
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$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. —ANS: a. county tax assessor.
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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:
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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.
—ANS: 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 —ANS: b. Land contract
For Expert help and assignment solutions, +254707240657
California Real Estate Exam Multiple
Choice Questions and Answers (100%
Correct Answers) Already Graded A+
An appraiser's definition of "Value" would be:
a. present worth of all rights to future benefits arising out of
© 2025 Assignment Expert
ownership.
b. the ability of one commodity to command other commodities
in exchange. c. relationship between the thing desired and the
potential purchaser.
Guru01 - Stuvia
d. all of the above. —ANS: 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 —ANS: 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?
, 2
For Expert help and assignment solutions, +254707240657
a. $1,500
b. $1,200
c. $1,000
d. $750 —ANS: 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
© 2025 Assignment Expert
Therefore, price per acre = $150,000 ÷ 100 = $1,500.
Which of the following is NOT a lien?
Guru01 - Stuvia
a. Encumbrance
b. Homestead
c. Zoning
d. All of the above —ANS: 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 —ANS: d. $23.10
, 3
For Expert help and assignment solutions, +254707240657
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
© 2025 Assignment Expert
d. None of the above —ANS: a. Replacement (cost approach)
Since there is no income for capitalization and no means for
Guru01 - Stuvia
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. —ANS: 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 —ANS: c. $784.38
, 4
For Expert help and assignment solutions, +254707240657
$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. —ANS: a. county tax assessor.
© 2025 Assignment Expert
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:
Guru01 - Stuvia
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.
—ANS: 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 —ANS: b. Land contract
