California Real Estate Salesperson Exam -with 100% verified solutions 2024-2025-tutor veri, Exams of Business Administration

Download California Real Estate Salesperson Exam -with 100% verified solutions 2024-2025-tutor veri and more Exams Business Administration in PDF only on Docsity! California Real Estate Salesperson Exam -with 100% verified solutions 2024-2025-tutor verified 150Q&A Which of the following is most vital or important in planning a subdivision: Market Analysis When rent is computed on the gross sales of a business occupying real property, the lease is correctly termed: Percentage Lease What is not an adequate method of transferring property? Executive Sale What is considered personal property? Existing Mortgage 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: $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: Regression Which of the following actions or events would result in the termination of a sales escrow: 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: Gross National Product An easement on real property can be terminated by: 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: 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: 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: An abstract of title 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: 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: 16 or more Which of the following pairs of words are SYNONYMOUS: 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: 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: 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: 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: A lower capitalization rate Under FHA, the usual ceiling height in a single-family residence is: 8 Feet In a deed of trust, the power of sale in event of foreclosure is given from the: Trustor to the trustee When a residential neighborhood is composed most of owner occupied residential properties it tends to: Stabilize Value Federal income tax rates on ordinary taxable income are: 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: 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: $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: 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 How many years is an attachment lien good for: 3 years A real estate salesperson's license has been suspended because many was paid out of the Recovery Account to a person who had a judgement against the salesperson. His license will not be reinstated until he: Pays the Recovery Account for the money it paid plus interest Which of the following defines the term "equity": Any of the below: -The owner's interest in real property, over and above all liens against it What can be appurtenant to land: Stock in a mutual water company If a man leased a store for only 6 months, he would have an: Estate for years To whom must a subdivider give a copy of the Commissioner's public report? Any person, at any time, upon request Single-family home values are least protected in neighborhoods where there is: An increasing misture of average-quality homes with high-quality homes The process of expressing anticipated future benefits of ownership in dollars and discounting them to a present worth at a rate which is attracting purchase capital to similar investments is called: Capitalization The available supply of real estate loan funds tends to be increased by all of the following EXECPT: An increase demand for a more liquid type of assets If a person obtains a contract through duress, that contact is: Voidable The primary purpose of city and county building codes is to establish: Minimum standardsfor public health, safety, moral, and general welfare When a trustor defaults on his or her payments and refuses to reinstate the deed of trust, the most expedient thing for the beneficiary to do is to institute a: Trustee sale While appraising a residence in a hillside subdivision, the appraiser observes cracks in the foundation and notices that the doors and windows do not close properly. The appraiser would probably recommend that which of the following be ordered: Soil engineer's report A contractor was building a new home. Before completion, he received several offers to rent the property. Just before completion, the city announced that is was taking 10 feet off the front of the property to widen the street to facilitate traffic. Thereafter, offers to rent were for approximately 10% less. This would be an example of which type of depreciation: Economic obsolescence On September 30, 1983, Daniels offered to buy Barnes' home. The offer was accepted and escrow opened. Barnes had purchased the home in 1978, financing it by an FHA loan, on which he was then currently making payments. A preliminary title report dated September 30, 1983 will: Show the particulars of a deed of trust with Barnes as trustor Water that is suitable for drinking and is not contaminated is said to be: Potable water The provisions of the Real Estate Settlement Procedures Act (RESPA) apply only to transactions involving certain types of property. What type of property must comply with RESPA: One-to-Four family residential dwellings A grant deed is deemed by law to be executed at the time it is: Signed by the grantor Which of the following is true with regard to the Alquist-Priolo Earthquake Special Studies Act? Both of the below -Most agents and sellers have a professional company prepare these disclosures -It applies to all counties in California The legitimacy of zoning laws rests upon: The established right of police power of government Placing two or more contiguous units under common ownership for the purpose of increasing the value per unit is known as: Plottage The words "time is of the essence" can be found in which of the following contracts: Real estate purchase contract and receipt for deposit Smith owns a single-family residence in which he resides. he trades with Brown for another residence, which Brown is renting to a tenant. Both parties intend to use their newly acquired properties for rental income. Which of the following is true: Brown can negotiate a tax-free exchange A parcel of vacant land measuring 110 yards by 220 yards would contain how many acres: 5 110 x 3 = 330 220 x 3 = 660 330 x 660 = 217,800 square feet 217,800 ÷ 43,560 = 5 The primary purpose of a site analysis by an appraiser is to determine the: Highest and best use No prudent person would pay more for a parcel of real property than the price of a reasonably close alternative which is available without undue delay refers most nearly to the principle of: Substitution The capitalization rate to be used in the income approach to the appraisal of real property provides for a return on, and a return of, the investment in the improvements. A return of the investment is provided for by means of: Depreciation methods 87 Mr. and Mrs. Martin have sold their home, with the escrow scheduled to closed on March 1. The annual property taxes on their home are $1,440. Assuming that the first installment of taxes has already been paid, and the second installment is to be prorated on the date of the close of escrow, the amount of the taxes which would normally be charged to the buyer would be approximately: $480 The monthly taxes are $120. The tax year runs July 1 through June 30. The buyer would owe taxes for March, April, May, and June (4 months) $120 x 4 months = $480 Loans from some lenders must comply with the Real Estate Settlement Procedures Act. When the loan is secured by residential real property, and contains 1-to-4 residential units, the loan must comply with the RESPA regulations if the loan is made by: Lenders whose deposits are insured by an agency of the federal government Ownership rights and interest in real estate are called: Estates or fees Which of the following is not a characteristic of an easement: It is an interest that can be terminated at will by the possessor of the land In relation to deeds on real property,which of the following is NOT true: A reconveyance deed is issued by the trustee to convey title to a new purchaser in connection with a "trust deed sale" What best describes the period of time in which a lis pendens action is effective: Any of the below -Before the trial is held -Until the lawsuit is dismissed -Until a final judgment is rendered One of the following actions, taken in relation to advertising the sale of real property, is considered prima facie evidence by the Real Estate Commissioner in California as being misleading of deceptive advertising. Which one is so regarded: A misleading map directing prospective purchasers to the site of a property for sale and consults an attorney concerning his possible actions against Brown. Sorenson will most likely be advised by the attorney that: Sorenson has no cause for acting against Brown An apartment owner was figuring his net income for income tax purposes. he took the gross income and deducted certain expenses. Of the ones listed below, which could he NOT deduct: Cost of a fence The most effective way for the Federal Reserve Board to create A TIGHT MONEY MARKET would be to: Raise the discount rate and sell government bonds A subordination clause in a TRUST deed BENEFITS: Trustor A mortgage which by its terms provides that is secures the amount of the initial loan together with ANY SUMS LATER LOANED to the mortgagor by the mortgagee is known as: An open-ended mortgage An agreement between party A granting party B the right to offer, sell, or distribute goods or services under a marketing plan describedby party A is commonly known as: A franchise agreement To guard against the loss of capital caused by inflation, an investor would probably invest in: Equities A new well and pump were installed on a parcel of land. For property tax assessment purposes, the county assessor would consider these as: Improvements For appraisal purposes, "capitalization" is a process used to: Convert income into value Space available to meet public demand expands and contracts when stimulated by the fluctuation of: Prices and rents Conventional loans are distinguished from FHA insured loan by all the following, except: Conventional loans always permit a deficiency judgment, while FHA loans never allow them Which of the following expenses is not deducted from gross income to determine annual net income when using the capitalization approach to appraise an income producing property? Cost of capital If an appraiser determines the value of a property by considering the income that is produces and the percentage return which can reasonably be expected to be earned on the investment, be is using a process which is called: Capitalization The terms of some real estate loans provide that the interest rate may be increased or decreased depending on money market condition. We call this type of loan: A variable interest rate loan In 1920, race restrictions limited the sale or lease of property to persons of the Caucasian race were imposed on a subdivision. The restrictions are due to expire in 2010. At the present, the restrictions are: Unenforceable, even though the majority of homeowners want them Whenever possible, an appraiser would estimate the value of land on the basis of: The selling prices of comparable sites When a lender in a trust deed takes in lieu of foreclosure, who becomes the owner of the property? Beneficiary Which of the following phrases will best describe the nature of a broker's duty to keep his principal informed: Fiduciary obligations Each of the following is considered an estate in real property, EXCEPT: Trust deed Which of the following techniques would an appraiser mainly rely on to appraise a lot on which the buyer intends to build a single-family residence: Market approach An interest in real property can be acquired through "adverse possession" or by "prescription." The interest acquired by prescription is: The right to use the land of another A standard title insurance policy insures against: A recorded deed in the chain of title that was not properly delivered Under the police power of the government, a city's general plan can be implemented by all of the following except: Adopting a retroactive zoning ordinance Saunders purchased a home from Barnes and agreed to assume an existing conventional loan. The lender agreed to the assumption and issued a substitution of liability. Under these circumstances: Barnes is relieved from further duties under the obligation A trustor defaults on his loan and refuses to reinstate the deed of trust. The most expedient thing for the beneficiary to do is to institute a: Trustee's sale Possession under a claim of adverse possession must be: All of the below: -Open and notorious -Hostile -Continuous Constructive notice to purchasers of a home could be given by all of the following EXCEPT: Knowledge of a stranger in possession with an unrecorded deed A real estate licensee may lawfully refuse to show a home to a minority prospect who has requested to see it in which of the following situations: When the owner is out of town and has instructed the licensee that no showing may be made in his absence When using a purchase money trust deed, the trustor: Signs the trust deed which is used as security for the loan A loan secured by real property usually consists of: A promissory note and a trust deed Which of the following DOES NOT DIRECTLY AFFECT the level and movement of mortgage interest rates: The rate of unemployment The type of depreciation which is socially oriented and from which we derive the saying "more buildings are torn down than fall down" would be known as: Economic obsolescence Mr. Gomez took out a loan for improvements to his real property that was fully amortized. If the loan provides that there are equal monthly payments, the amount credited to the principal will: Increase while the interest payment decreases Which of the following will be found in the Federal Fair Housing Law: A provision which allows all prospective buyers to be given the same opportunity to select available houses in their price range without restrictions because of race, color, religion, or national origin