CA Real Estate Practice Exam #1 (Online) Questions with accurate answers, graded A+

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CA Real Estate Practice Exam #1 (Online) Questions with accurate answers, graded A+ A seller is required to deliver the Homeowner's Guide to Earthquake Safety to the buyer of any one-to-four un... it residential properties built prior to: A. 1952 B. 1960 C. 1960 D. 1975 - ✔✔C. 1960 A Homeowners Guide to Earthquake Safety must be given to the buyer of any real property improved with a residential dwelling built prior to 1960 and consisting of one-to-four units, any of which are of conventional light-frame construction. When calculating the Consumer Price Index (CPI), housing expenses is one of the largest denominators because A. CPI is based upon all consumer purchases; B. More people buy homes than buy businesses; C. Housing impacts economy; D. Housing is one of the largest expenses for consumers. - ✔✔D. Housing is one of the largest expenses for consumers. When calculating the Consumer Price Index (CPI), housing expenses is one of the largest denominators because housing is one of the largest expenses for consumers. Which of the following is an appraiser's primary concern in the appraisal of a residential subdivision? A. Square foot area of each home; B. Marketability and acceptability; C. Functional utility; D. The adjoining neighborhood. - ✔✔B. Marketability and acceptability; Marketability and acceptability are the primary concern when appraising residential property. When a judgment has been recorded, it provides: A. Voidable notice; B. Constructive notice; C. Actual notice; D. Contingent notice. - ✔✔B. Constructive notice; Recording a judgment gives constructive notice. Legally and technically, property is defined as: A. That which is capable of involuntary transfer; B. Things with buyers or sellers; C. Rights or interests which a person has in a thing owned; D. Only personal property. - ✔✔C. Rights or interests which a person has in a thing owned; Property is defined as the rights or interests a person has in the thing owned. A seller (or agent for the seller) must give the buyer a "Natural Hazard Disclosure Statement" if the property is within which of the following areas? A. Special Flood Hazard Area; B. Very High Fire Hazard Severity Zone; C. Earthquake Fault Zone; D. All of the above. - ✔✔D. All of the above. A seller (or agent for the seller) must give the buyer a Natural Hazard Disclosure Statement if the property is within a Special Flood Hazard Area, Area of Potential Flooding, Very High Fire Hazard Severity Zone, Wildland Area, Earthquake Fault Zone or Seismic Hazard Zone Which of the following represents an example of police power? A. A condemnation action on property for construction of a freeway; B. CC&Rs placed in a deed by a developer; C. Enforcement of contracts by equitable civil proceedings in court; D. Zoning laws which restrict and limit the use of land. - ✔✔D. Zoning laws which restrict and limit the use of land. Zoning laws are one example of police power. Which of the following laws exert the greatest control over the California housing and construction industries? A. Uniform Building Code, National Electrical Code, Uniform Plumbing Code; B. State Housing Law, Local building codes and Contractors License Law; C. Subdivision Map Act, local building codes, city's master plan; D. Eminent domain, zoning ordinances, State Housing Law. - ✔✔B. State Housing Law, Local building codes and Contractors License Law; State Housing Law, local building codes and the Contractors License Law exert the greatest control over the housing and construction industries in California. Government land use, planning and zoning laws are important examples of: A. Exercise of eminent domain; B. Use of police power; C. Deed restrictions; D. Escheatment. - ✔✔B. Use of police power; Government land use, planning and zoning laws are all examples of police power. All property is either real property or personal property. Which of the following would normally be considered real property? A. Natural growing vegetation; B. Trade fixtures; C. Lumber in a lumber yard; D. Crops which have been sold prior to harvest. - ✔✔A. Natural growing vegetation A bona fide listing to sell real property must contain: A. Consideration, mutual consent, competent parties, and writing; B. Consideration, mutual consent, capable parties expressed time element and price; C. Capable parties, mutual consent, lawful object, consideration, and be in writing; D. Consideration, price, lawful object, competent parties, and legally sufficient writing. - ✔✔C. Capable parties, mutual consent, lawful object, consideration, and be in writing; A bona fide listing to sell real property must contain: capable parties, mutual consent, lawful object, consideration, and be in writing. Each of the following elements must be established to obtain an easement by prescription, except: A. Use of the property which is hostile and adverse to the true owner; B. Existence of a claim of right or color of title; C. Open and notorious use which is continuous and uninterrupted for a period of five years; D. A confrontation with the true owner. - ✔✔D. A confrontation with the true owner. No confrontation with the true owner is necessary to obtain an easement by prescription. The reason an appraiser determines the value of an income producing property as of a "given date" is to indicate: A. The age of the improvements as of a given date; B. The date the appraiser inspected the property; C. The market conditions influencing the value of the property as of a given point in time; D. The value of the seller's equity as of a given date. - ✔✔C. The market conditions influencing the value of the property as of a given point in time; An appraiser determines the value of an income producing property as of a given date is to indicate the market conditions influencing the value of the property as of a given point in time. After an appraiser has collected all the data, what is the next step in the appraisal process? A. Simply average out the value estimates; B. Reconcile or correlate the adjusted sales price of the comparables; C. Assign appropriate value to individual estimates and average the total number; D. Give an opinion of value. - ✔✔B. Reconcile or correlate the adjusted sales price of the comparables; After the appraiser has collected all the data, the next step in the appraisal process is toreconcile or correlate the adjusted sales prices of the comparables and use the most influential data for the final valuation. A home was sold and the escrow closed October 1, 2000. How would the property taxes for the 2000-2001 tax year typically be prorated between the seller and the buyer? A. The seller pays for the entire year; B. The buyer pays for the entire year; C. The property taxes are divided equally between buyer and seller; D. The seller would pay for the first three months of the property tax year (July, August, and September) by proration in escrow. The buyer would pay for the remainder of the tax year plus supplemental taxes based upon the reassessment that was triggered by the sale. - ✔✔D. The seller would pay for the first three months of the property tax year (July, August, and September) by proration in escrow. The buyer would pay for the remainder of the tax year plus supplemental taxes based upon the reassessment that was triggered by the sale. Property taxes are usually prorated based upon the months each party occupied the property. Escrow closed October 1, 2000, therefore the seller would pay for the first three months of the property tax year (July, August, and September) by proration in escrow. The buyer would pay for the remainder of the tax year plus supplemental taxes based upon the reassessment that was triggered by the sale. Linda applied for a real estate loan. The loan application requested her to disclose her race and marital status. What can she do? A. Refuse to fill out that portion of the loan application; B. Sue the lender and the real estate broker; C. Nothing; D. Completely fill out the loan application if she wants to get the loan. - ✔✔A. Refuse to fill out that portion of the loan application; A loan applicant may refuse to fill out the portion of a loan application disclosing race and marital status. The SW 1/4 of the NW 1/4 of Sec. 5 is valued at $800 per acre. The S 1/2 of the NE 1/4 of Sec. 8 is valued at $500 per acre. What is the difference in value between the two parcels? A. $6,000 B. $8,000 C. $10,000 D. $12,000 - ✔✔B. $8,000 (1) The SW 1/4 of the NW 1/4 of Sec. 5 = 40 acres x $800 = $32,000(2) The S 1/2 of the NE 1/4 of Sec. 8 = 80 acres x $500 = $40,000(3) $40,000 - $32,000 = $8,000 [Show More]

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