CA DRE SALESPERSON EXAM II LATEST VERSION A & B 2024/2025 ACTUAL EXAM COMPLETE QUESTIONS, Exams of Business Administration

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CA DRE SALESPERSON EXAM II LATEST VERSION A & B

202 4/ 2025 ACTUAL EXAM COMPLETE QUESTIONS AND

100% CORRECT VERIFIED ANSWERS GRADED A

What are the two types of freehold estates?

1. an estate in fee (simple absolute)
2. a life estate. What is the most complete, largest type of estate that includes all rights associated with the estate? An estate in fee simple absolute What type of estate do you own if someone grants you real property for you to own only during your lifetime? When you die, the property reverts back to original estate owner. a life estate The rights of tenants who rent or lease property is what type of estate? Less-than-freehold Does property refer to "rights" or "thing" owned? Thing What are the two types of property? real and personal What four things make up real property?
3. land;
4. anything affixed and regarded as permanent part of the land;
5. anything incidental or appurtenant to the land;
6. anything immovable from land Besides the earth, i.e. soil and rocks, what else do you own when you own land? The air space above the land and space beneath the land.

What types of things are considered "affixed" to the land? bridges, trees, buildings and anything affixed to the buildings, ie doors. What are waterways, easements, access or other benefits associated with land considered? incidental or appurtenant to the land What are the four different duration types that are associated with estates?

1. estates of inheritance or perpetual estates
2. estates for life
3. estates for years
4. estates at will If property is not real property, than what type of property is it? Personal property What are three kinds of personal property?
5. money
6. movable goods/chattels
7. evidence of debt What are fixtures? Personal property that is attached to land so that it becomes a part of the real property. What are the five tests used by the courts to determine if an item is a fixture? MARIA M ethod of attachment A greement as to nature of property R elationship of parties (landlord/tenant) I ntention A daptability for ordinary use What are the three most common methods of describing property?

1. recorded map;
2. by US Government section and township;
3. metes and bounds In townships and sections, what are the horizontal and vertical lines called? Base lines (horizontal) Meridians (vertical) What are a grid of base lines and meridian lines (horizontal and vertical lines) called? Ranges and township lines How many miles apart are ranges and township lines? Six miles apart. What are the three main sets of base and meridian lines in California?
4. Humbolt
5. Mt. Diablo
6. San Bernardino A square created by the intersection of a range and township line? a township How many square miles are in a township? 36 square miles A township is divided into how many one mile squares or sections? 36 sections, 1 square mile each How many feet are in a mile? 5,280 feet How many square feet are in an acre? 43,560 square feet

How many acres are in each section of a township? 640 acres How many acres are in a half section of a township? 320 acres When property is not described by a recorded map, what type of description may be used? Metes and bounds What are metes measures of? Length, such as feet, yards, etc What are bounds? Natural or man-made boundaries and landmarks used to describe property, such as rivers roads, trees, fences, creeks, etc Notice given through public record is what type of notice? Constructive Notice Where must instruments affecting real property be recorded? In the county where the property is located. If the property lies in more than one county, the instrument must be recorded in each county property is located. Property owned by one person? Sole or several ownership Simultaneous ownership of property by two or more people can be what types of ownership?

1. Joint (joint tenancy)
2. Common (tenancy in common)
3. Community ownership (community property)
4. Partnership Interest (tenancy in partnership) When title is held as tenants in common, is there right of survivorship?

NO. The deceased undivided interest in property may go to heirs. When is a tenancy in common created? If an instrument conveying property title to two or more people does not specify whether the interest in the property is joint tenancy, in partnership, or common property. What is the most important characteristic of joint tenancy? The right of survivorship. What four "unities" must be in place for a joint tenancy to exist?

1. time
2. title
3. interest
4. possession If one joint tenant dies, does the surviving joint tenant become full owner of the property, to the exclusion of heirs? Yes. A column of land six miles wide, determined by a government survey, running in a north south direction, lying east or west of a meridian. range Personal property used in a business, attached to the property, but removable by the tenant. Trade Fixtures Imaginary north-south lines used in government surveys. Meridian lines Property that is movable and not real property. Personal Property A written instrument that passes title of personal property from vendor (seller) to the vendee (buyer). Bill of Sale

A legal description of land, setting forth all the boundary lines with their terminal points and angles. Metes and Bounds Allbthe legal rights relevant to ownership of property including rights of use, posssession, encumbering, and disposition. Bundle of Rights A personal property interest in real property; an old term meaning personal property. Chattel or Chattel Real An area of land equaling 43,560 square feet, or a tract about 208.71 feet square. Acre The right of a landowner, whose land borders a stream or waterway, to use and enjoy the water, provided such use does not injure the rights of other owners. Riparian Rights A square of land (US Government Survey) that contains 640 acres and is one square mile. Section The reasonable space above a parcel; or in a condominium, the cubic area of a space within the walls. Airspace Imaginary east-west lines that intersect meridian lines to form a starting point for the measurement of land. Base Lines Water that is suitable for human consumption. Potable Water Crops produced on leased land by a tenant farmer from an annual cultivation considered personal property. Emblements

September 9, 1850 Admission of CA into US An acre of land less the amount of land dedicated for public improvements (sidewalks, alleys, etc) Commercial Acre When a tenant voluntarily moves out of an apartment and never returns. Abandonment or Vacating The acquiring of additional property. Accession The giving of private land by its owner for a public use; most commonly, the developer who gives it to the city. Dedication The reverting of private property to the state when there are no valid heirs. Escheat A voluntary association between two or more people to carry on a business with general and limited partners. General and Limited Partnership A deed using the word "grant", or like words, containing warranties against prior conveyances and encumberances. This is the most commonly used deed in California. Grant Deed An estate of unlimited duration, eg fee simple or life estate. Freehold Estate Undivided ownership of a property interest by two or more persons, each of whom has a right to an equal share in the interest and a right of survivorship. Joint Tenancy

Notice that is actually and expressly given or implied. Actual Notice A person authorized by the state to witness the signatures of persons executing documents, sign the certificate and affix the seal. Notary Republic An event that must happen before title is passed. Condition Precedent Documents filed with the County Recorder in such a way as are considered open notice to the world. Constructive Notice Co-ownersip of property by two or more persons who hold undivided interest, without right of survivorship. The interest need not be equal. Tenancy in Common An unlawful intrusion onto another's property by making improvements to real property; e.g. a swimming pool built across a property line. Encroachment A legal entity, sanctioned by the state, with rights and liabilities, distinct and apart from those of the persons composing it. Corporation The intentional and voluntary relinquishment of any ownership interest (such as an easement) or possesion ofvreal property. Abandonment The means of acquiring interests in land, usualy an easement, by continued use. Perscription A condition attached to an estate whereby the estate is defeated or changed through the failure or non-performance of the condition.

Condition Subsequent A process of law by which the state lays out the correct succession of inheritance when a person dies without leaving a valid will. Intestate Succession Different types of statements made before a professional witness. Affirmation, Affidavit, Verification An estate that reverts back to the grantor after the life of the tenant expires. Reversion The court procedure proving that a will is valid. Probate A method of acquiring title to real property, through possession of the property for a statutory period under certain conditions, by a person other than the owner. Adverse Possession The total amount of revenue a property is capable of producing at full capacity. Potential Gross Income (PGI) Non-possessor y interests. Encumbrances In a vertical subdivision, what is separated from ownership of the rest of the property?

1. Subsurface
2. The surface
3. The air space What type of USPAP requirement do not allow for departure from the standards rule?
4. Binding; 2. Specific; 3. Silly; 4 Strict? Look up this one Direct costs

Costs of material and labor used to build an improvement Estimating the amounts of each type of depreciation separately is called... Observed condition method or the breakdown method Effective age An appraiser's judgement as to a building's remaining economic life Reconciliation - check this one! When the appraiser analyzes all the data and reasoning that went into the value indicators in order to arrive at a single indication of value. A thee-quarter bath has A shower, a sink and a toilet Analyzing the appraisal problem, selecting the appropriate method of valuation, and giving it the most weight is called... Reconciliation A letter of transmittal A brief letter addressed to the appraisal client and signed by the appraiser What method requires the appraiser to measure the quantities of various components, such as foundation, floor, walls, roof, etc Unit-in-place method Advisory Opinions Merely indicate the advice and opinion of the Appraisal Standards Board. They do NOT establish new standards and do NOT interpret existing standards. Point estimate The final value estimate stated in a single dollar amount Eminent domain

The power of the government to take private property for public use. Appraisal Qualifications Board Concerned with the education, testing and experience requirements for appraisers. Transferability The ability to will, lease, or sell property. Leased fee The interest of the owner of leased property Short Lived Component An item that has a life span that is less than the expected life of the building Limiting condition A statement that specifically limits the application of the conclusions in an appraisal report. According to market trend data, what forces interact to affect property value?

1. Social and Economic; 2. Government and Environmental Supply & Demand The amount of property for sale in a given market combined with the amount of property buyers want to purchase at that price. Reference Point An identifiable, fixed position from which measurements can be taken. Depositing Institution Accepts deposits from it's account holders Comparable Property A property that is similar to the subject property in certain characteristics. District

A neighborhood that includes only one type of land use, ie residential disrict Depreciation The difference in value between the cost of improvements and their current value Reconstructed Operating Statement A statement of income and expenses issued for income capitalization in appraisals. Office of Thrift Supervision (OTS) Created by FIRREA to take over the responsibilities of the disbanded Federal Home Loan Bank Board FIRREA Financial Institution Reform, Recovery, and Enforcement Act, 1989 Paired Data Analysis Technique for measuring the effect on value that is caused by differences in a single element of comparisons. Deminimus Value Do not require the services of an appraiser and are set by the FIRREA as being under $250, Accuracy of data is measured by... How well it has been verified. Community Property Husband and wife share interest equally in the property BTU The quantity of heat required to raise one pound of water one degree Farenheit Compound Interest Interest earned on both principal and accrued (paid) interest Hip Roof

A roof that has inclined surfaces that rise from every wall of the house. Competency Rule Prohibits appraisers from accepting assignments for which they are not qualified USPAP Uniform Standards of Professional Appraisal Practice The Appraisal Standards Board Develops, interprets and amends the Uniform Standards of Professional Appraisal Practice (USPAP) Sustitution Principle that states a buyer will not pay more for a property than it would cost to acquire a substitute property of equal utility. Net Adjustment The net sum of positive and negative adjustments Cost Approach Assumes the value of the improved property is indicated by the value of the site, plus the cost of improvements, minus depreciation. Sill A horizontal piece at the bottom of a window Recapture The repayment of capital return of the investment. Relative Comparison Analysis Analysis where adjustment values are expressed in terms of value (superior, inferior, etc) Functional Obsolescense Depreciation caused by design defects. Sheathing

The "skin" that is attached to the frame of the house. Range Value The appraiser's estimate of the range in which the property's value is most likely to fall A legal definition of property Is one that is adequate to identify the properties exact boundaries Condominium Project Each living unit (air space) is owned separately in a fee simple. Right Triangle A triangle where the two sides meet at a right angle. Secondary Mortgage Markets Freddie Mac, Fannie Mae, Ginnie Mae Ad Valorem Taxes Taxes based on the value of real estate The quality of a value indicator is determined by

1. Level of accuracy; 2. Relevance to the appraisal problem Excess Land Land above and beyond what is needed for the highest and best use of a site Volume The size of an object in three dimensions Sub-structure or foundation data Information about the parts of the building below grade level; includes basement or crawl space Lien A financial encumbrance on property or an interest held by a creditor

Sales Comparison Approach When a property's value is compared to the value of other similar properties in the market Cost Index Trending Estimating the reproduction cost of a building whose original construction cost is known Principle of Anticipation Value of property is affected by the potential future benefits of ownership What number do you divide a number into to get a reciprocal? 1 Value estimates are always made as of a specific date, called... The effective date of appraisal Building Residual Technique Where the appraiser independently estimates the value of the land or site and uses the residual method to find the value of improvements