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CALIFORNIA REAL ESTATE EXAM MULTIPLE CHOICE
EXAM 500 QUESTIONS AND CORRECT DETAILED
ANSWERS WITH RATIONALES|ALREADY GRADED
A||EVERYTHING YOU NEED TO PASS CALIFORNIA
REAL ESTATE EXAM IN ONE DOCUMENT
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.
.....ANSWER.....d. all of the above.
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These are elements of value.
Which of the following abbreviations is associated with the FHA?
a. NAR
b. CPM
c. MIP/MMI
d. MBA
.....ANSWER.....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
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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
.....ANSWER.....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?
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a. Encumbrance
b. Homestead
c. Zoning
d. All of the above
.....ANSWER.....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?
CALIFORNIA REAL ESTATE EXAM MULTIPLE CHOICE
EXAM 500 QUESTIONS AND CORRECT DETAILED
ANSWERS WITH RATIONALES|ALREADY GRADED
A||EVERYTHING YOU NEED TO PASS CALIFORNIA
REAL ESTATE EXAM IN ONE DOCUMENT
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.
.....ANSWER.....d. all of the above.
,Page 2 of 423
These are elements of value.
Which of the following abbreviations is associated with the FHA?
a. NAR
b. CPM
c. MIP/MMI
d. MBA
.....ANSWER.....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
,Page 3 of 423
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
.....ANSWER.....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?
, Page 4 of 423
a. Encumbrance
b. Homestead
c. Zoning
d. All of the above
.....ANSWER.....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?
