CA Real Estate Exam Prep Questions and Answers

Which document is used to give a buyer an overview of the title history and information about what is or isn't covered in an insurance policy? Preliminary report Buyer Maria and seller Doug are closing on June 1. Maria's mortgage loan is $927.86, and $871.86 will go to interest in the first month. Maria will have to pre-pay interest for June using the 360-day proration method. If Doug owns the closing day, what Maria's prepaid interest cost be at closing? $842.74 Which of the following is one of the primary reasons that developers like to invest in unimproved land? A. It looks good to top investors to have a portfolio of unimproved land. B. It's easier to build on a blank canvas than it is to retrofit existing infrastructure. C. It's profitable immediately. D. Structures are already erected on the land, limiting the development that needs to be done. B. It's easier to build on a blank canvas than it is to retrofit existing infrastructure. Buyer Peter is eager to make an offer on the two-story home you just showed him, but you're concerned about the back bedroom, since it looks like a relatively recent addition. When Peter asks you why it's an issue, how do you respond? You recommend that Peter check on the permits for it, so that he doesn't buy the house and then have to correct or even remove the addition because it wasn't built to code. According to national standards for measuring square footage of a dwelling, which space should be included? Attached accessory apartment Which physical characteristic of land addresses the concept that land isn't interchangeable, and one piece of land isn't exactly like another? Uniqueness What's the definition of a qualified mortgage? One that meets stringent CFPB guidelines Jim would like to sell his own home. What is the minimum real estate license he must possess? None