Real Estate Salesperson California State Exam with questions and correct answers //latest update

Real Estate Salesperson California State Exam with questions and correct answers //latest update If an income property is valued at $100,000 based on an 8% capitalization rate, what would be the value of the property if a 10% return is required: - ANSWER -$80,000 $100,000 Value of Property x 0.08 Capitalization Rate =$8,000 Net Income $8,000 Net Income ÷ 0.10 of Return =$80,000 Value of Property The value of the best property in the neighborhood will be adversely affected by the presence of comparatively substandard property is a statement relating to value and is know as the Principle of: - ANSWER -Regression Which of the following actions or events would result in the termination of a sales escrow: - ANSWER -Mutual consent of the parties The measure of goods and services produced by the nation during any one calendar year is the definition of which of the following: - ANSWER -Gross National Product An easement on real property can be terminated by: - ANSWER -A release signed by the holder of the dominant tenement An appraiser's narrative appraisal report of a single-family residence probably would contain no reference to: - ANSWER -The type of financing available When identical or highly similar properties are offered for sale, the property offered at the lower price attracts the greatest demand. That statement is an illustration of which of the following principles of appraising: - ANSWER -Substitution When the public records have been examined in order to determine the chain of title to a parcel of real property, a written summary of that chain of title is known as: - ANSWER -An abstract of title The remedy of unlawful detainer action is used by offended: - ANSWER -Lessors Freehold estates would include which of the following: - ANSWER -A life estate If a lender accepts a deed in lieu of foreclosure from a trustor, the lender: - ANSWER - Will assume any junior liens Which of the following would usually be true concerning a hard money second trust deed: - ANSWER -It's secured by real estate and given to a third party to obtain a cash loan Betty is beneficiary of a $15,000 deed of trust on a single-family home located in Long Beach, CA. Trustor Milo made $2,000 in payments, then defaulted. At a trustee's sale, the property sold for $10,000, resulting in a $3,000 deficiency. In California, a deficiency judgement cannot be obtained: - ANSWER -In any of the below situations. -If the security is a purchase-money trust deed. -If remedy of trustee's sales is used. -If fair market value of the property exceeds the amount due on the trust deed. What state agency would a consumer contact in order to obtain a written report disclosing the presence of wood destroying organisms? - ANSWER -Structural Pest Control Board When a lender on a graduated payment mortgage is making disclosures that are required under the Truth-in-Lending Law concerning advertising he must disclose the: - ANSWER -Lender's Name A clause in a mortgage stating that the rights of the mortgagee shall be secondary to a subsequent mortgage is called: - ANSWER -None of the above In California the use of an abstract of title has been superseded almost entirely by the: - ANSWER -Policy of title insurance Sherman gives a quitclaim deed to Warner for a parcel of real property. Warner does not record the deed. In this situations, which of the following is true: - ANSWER -The deed is valid as between Sherman and Warner, but invalid as to subsequent recorded interests without notice Which of the following statement is true? - ANSWER -Real property can become personal property Land zoned for use as the site for multi-family residential developments (such as apartment buildings) would be denoted as: - ANSWER -R-3 or R-4 The purchaser of a lot which is subject to a lien for street improvements under the Street Improvement Act of 1911, may prevent the assessment from going to bond if he pays the assessment in full within how many days after the completion of the work: - ANSWER -30 If the owner of an apartment building does not reside on the premises, he is required to have a resident manager or responsible person on the premises where the number of units is: - ANSWER -16 or more Which of the following pairs of words are SYNONYMOUS: - ANSWER -Construction loan - Interim loan When the Real Estate Commissioner wishes to rescind approval of a new subdivision, he would likely do which of the following: - ANSWER -Issue a desist and refrain order If a real estate licensee was trying to persuade people to list or to sell their property by telling them that members of another ethnic group were moving into their neighborhood, and it would be to their advantage to list or to sell, it would be an example of all of the following, EXCEPT: - ANSWER -Legitimate conduct If a seller refuses to state on a real estate transfer disclosure statement that his property is in a slide area, when it is, the real estate agent should: - ANSWER -NOT accept the listing Two buildings are leased on a long-term basis, one for a post office and the other for a hardware store. Using the capitalization approach to appraise the properties, the post office would demand: - ANSWER -A lower capitalization rate Under FHA, the usual ceiling height in a single-family residence is: - ANSWER -8 Feet In a deed of trust, the power of sale in event of foreclosure is given from the: - ANSWER -Trustor to the trustee When a residential neighborhood is composed most of owner occupied residential properties it tends to: - ANSWER -Stabilize Value Federal income tax rates on ordinary taxable income are: - ANSWER -Progressive The owner of a hardware store who owned the real property where is was located, sold the real property and leased it back for a long term. For income tax purposes, the seller may: - ANSWER -Deduct 100% of future rents A property sold for $33,700. This was 7% less than what the property originally cost. The original cost was approximately: - ANSWER -$36,236 100% - 7% = 93% 93% of cost = $33,700 $33,700 divided by 0.93 = $36,236.56 All of the following statements are correct concerning the transfer of title to personal property, EXCEPT: - ANSWER -The condition of the title to personal property can usually be determined by a study of public records with about the same accuracy as title to real property