CALIFORNIA REAL ESTATE EXAM
COMPLETE 500+ QUESTIONS WITH
100% CORRECT ANSWERS AND
DETAILED EXPLANATIONS
\.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. - ANSWERS-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 - ANSWERS-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 - ANSWERS-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 - ANSWERS-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 - ANSWERS-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 - ANSWERS-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. - ANSWERS-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 - ANSWERS-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.
COMPLETE 500+ QUESTIONS WITH
100% CORRECT ANSWERS AND
DETAILED EXPLANATIONS
\.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. - ANSWERS-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 - ANSWERS-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 - ANSWERS-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 - ANSWERS-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 - ANSWERS-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 - ANSWERS-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. - ANSWERS-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 - ANSWERS-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.
