CA Real Estate State Exam Crash Course Graded A+

CA Real Estate State Exam Crash Course Graded A+ How are ownership rights and interest in real property established by way of a court proceeding? A - cloud on title B - equitable use C- quiet title action D - quitclaim C - quiet title action Answer Feedback: A quiet title action is proceeding to establish an individual's right to ownership of real property against one or more adverse claimants. The recording of an instrument gives: A - actual notice B - passive notice C - absolute notice D - constructive notice D - constructive notice Answer Feedback: Constructive notice is given by taking physical possession or by recording an instrument. Federal income tax rates on ordinary income are: A - progressive B - equal C - flat D - digressive A - progressive Answer Feedback: The more you make, the more you are taxed. When title of a property is voluntary transferred without any money consideration, this would be considered: A - avulsion B - eminent domain C - a gift D - foreclosure C - a gift Answer Feedback: This describes a gift which is the only right choice of a voluntary transfer without consideration (money). Who would you contact if you feel your property has been over assessed by the county assessor? A - Local housing council B - Board of equalization C - County tax collector D - Assessment appeals board D - Assessment appeals board Answer Feedback: You would contact this department to plead your case. A single family home that had an assessed value that was much lower than the current market value was sold on November 3rd at its current market value. What will the new owners have to pay? A - supplement tax based on the difference between the old assessed value and the new assessed value for the remaining fiscal year B - nothing C - a prorated amount of tax D - a flat tax of 10% A - supplement tax based on the difference between the old assessed value and the new assessed value for the remaining fiscal year Answer Feedback: When a property is sold for more than the assessed value, the new buyer will receive a supplemental tax bill based on the new assessed value. An income property owner was figuring out their net income for tax purposes. They took the gross income and deducted certain expenses. What cannot be deducted? A - management expenses B - cost of a fence C - interest for a loan D - depreciation B - cost of a fence Answer Feedback: A fence is a capital improvement and cannot be deducted as an expense for tax purposes. When referring to a building bought for income purposes, the owner can deduct all of the following for income tax purposes, except: A - loss of rental due to vacancies B - depreciation when the property value increases C - interest payments on the second trust deed D - cost of repairing the vacant units A - loss of rental due to vacancies Answer Feedback: Vacancy losses cannot be deducted from income. A sale leaseback purchaser would be least concerned about the: A - depreciated value of the building B - condition of the improvement C - location of the property D - creditworthiness of the tenant A - depreciated value of the building Answer Feedback: Depreciated value has to do with the adjusted costs basis of the building. Why can a corporation not qualify as a "joint tenant" for ownership interest of real property? A - A corporation can be foreign or domestic B - Only community property can be held as joint tenancy C - It has perpetual existence D - A corporation has a board of directors C - It has perpetual existence Answer Feedback: Corporations don't die and since one of the characteristics of joint tenancy is the right of survivorship, a corporation owning real property in "joint tenancy" would be an unfair advantage. Death is a requirement. The assessment roll in real property taxes exists to establish the tax base. Who sets the county tax rat