Real Estate Salesperson California State Exam Latest Update 2024-2025 150 Questions and 100% Verified Correct Answers Guaranteed A+ 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: - CORRECT ANSWER: $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
A balloon loan could also be described as a: - CORRECT ANSWER: Partially-amortized loan
A buyer of a residence, prior to the close of escrow, asks the broker for permission to move into the property. The broker should: - CORRECT ANSWER: Obtain written consent from the owner
A clause in a mortgage stating that the rights of the mortgagee shall be secondary to a subsequent mortgage is called: - CORRECT ANSWER: None of the above
A commercial development that has a single line of store buildings constructed along a major transportation route is described as a: - CORRECT ANSWER: Strip commercial development
A contract which, according to the Statute of Frauds, must be in writing in order to maintain a court action for enforcement is: - CORRECT ANSWER: Any agreement which is NOT to be performed WITHIN ONE YEAR
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: - CORRECT ANSWER: Economic obsolescence
A grant deed is deemed by law to be executed at the time it is: - CORRECT ANSWER: Signed by the grantor
A home sold for $200,000. They buyer assumed an existing loan against the property for $160,000. The documentary transfer tax for this county is 55¢ per $500 of consideration. The transfer tax is: - CORRECT ANSWER: $44 1 / 2
The documentary transfer tax is based upon consideration (only cash down or new financing).
$200,000 - $160,000 = $40,000
$40,000 ÷ $500 = $80 taxable units $80 x 55¢ = $44
A lender may also be called a: - CORRECT ANSWER: Beneficiary
A loan secured by real property usually consists of: - CORRECT ANSWER: A promissory note and a trust deed
A man bought two 60 foot lots for $18,000 net each and divided them into three lots of equal frontage which he sold for a price of $15,000 each. His percentage of gross profit was most nearly: - CORRECT ANSWER: 25%
$18,000 x 2 = $36,000 $15,000 x 3 = $45,000
$45,000 - $36,000 = $9,000
$9,000 ÷ $36,000 = 25%
A mortgage that was executed two years ago provided for a prepayment penalty. The mortgagee is most likely to waive this penalty when: - CORRECT ANSWER: A new loan can be made on the property at a higher rate
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: - CORRECT ANSWER: An open-ended mortgage
A new well and pump were installed on a parcel of land. For property tax assessment purposes, the county assessor would consider these as: - CORRECT ANSWER: Improvements
A parcel of vacant land measuring 110 yards by 220 yards would contain how many acres: - CORRECT ANSWER: 5
110 x 3 = 330 220 x 3 = 660 330 x 660 = 217,800 square feet
217,800 ÷ 43,560 = 5
A property sold for $33,700. This was 7% less than what the property originally cost.The original cost was approximately: - CORRECT ANSWER: $36,236
100% - 7% = 93%
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