Q&A Hero

Q: Zoning is one of the economic forces affecting value.

Q: The broad forces affecting value are physical, social, economic and political in nature.

Q: A strong demand can be effective without purchasing power.

Q: Demand and scarcity are both essential elements of value.

Q: The sales price chart shown below suggests an average monthly increase of about one percent for the area under study.MonthAverage PriceApril$170,000May$171,700June$173,500July$174,000August$176,000September$178,750October$180,500

Q: The direction and speed of price movements may suggest how strong or weak the market is.

Q: Real estate markets do not meet any of the criteria of a perfect market.

Q: A perfect market occurs only when an active and large role is played by government.

Q: The economic base of a town depends upon its production for local use.

Q: A town seldom changes its main function.

Q: The so-called central town is selected mainly to provide services along a transportation route.

Q: The neighborhood is the starting point of the market data search in an appraisal.

Q: The neighborhood cycle is noted by development, stability, decline, and renaissance or renewal.

Q: The boundaries of a neighborhood may be determined by either physical, economic, or legal factors.

Q: Income and commercial properties are most often appraised by emphasizing the income approach to value.

Q: In the sales comparison approach, the appraiser adjusts comparable sales by adding or subtracting amounts from their sale price to "improve" their comparability.

Q: The cost approach is normally given more weight in the appraisal of old and substantially obsolete buildings.

Q: In simple terms, market value essentially means the most probable sales price in an open market.

Q: Value in use is an objective kind of value that means the value to people in general.

Q: Written appraisals usually consist of a letter, a printed form, or a narrative report.

Q: The type of appraisal report used, (Self-Contained, Summary, or Restricted Use) should be decided upon in advance between the appraiser and the client.

Q: The typical appraisal assignment is to appraise the "fee simple" ownership.

Q: Well-prepared Restricted Use Appraisal Reports are considered to be less reliable than Self-Contained Appraisal Reports.

Q: If you are a state licensed or certified appraiser, in most states your appraisals must always conform to USPAP.

Q: A valid contract must have parties, a subject, consideration, agreement, and mutual obligation.

Q: A section of land always contains exactly 640 acres.

Q: Metes and bounds; recorded lot, block, and tract; and government survey represent the three types of legal descriptions.

Q: Building codes are enforced under the police power of government.

Q: Deed restrictions are examples of government controls.

Q: In a property under lease, the land owner holds a leasehold estate.

Q: Real property rights cannot be divided.

Q: When personal property is attached to real estate it is often called a fixture. Fixtures always remain personal property.

Q: Easements often constitute appurtenant rights.

Q: Tangible property can include both real property and personal property.

Q: State and federal laws generally require a license or certificate to perform certain federally related appraisals.

Q: A court order can require an appraiser to reveal the results of an appraisal made in confidence.

Q: USPAP imposes both ethical obligations and minimum appraisal standards.

Q: Areas of public control requiring appraisals include eminent domain and taxation.

Q: The only market transactions requiring appraisals are the purchase and sale of real estate.

Q: Appraisals are needed to provide unbiased opinions of value that can be reviewed.

Q: Formal appraisals rely on supporting data, but no judgment or intuition is needed.

Q: Informal appraisals are performed by most people in real estate.

Q: An appraisal is simply a statement of value.

Q: As a general term, value means the worth, usefulness, or utility of an object.

Q: Which of the following need a real estate license? (a) a person selling their own home (b) a person managing their own rental (c) both a and b (d) a full service property manager

Q: Commission rates for real estate agents are established by: (a) the Real Estate Commissioner (b) local boards of real estate (c) multiple listing organizations (d) negotiations

Q: A candidate for the real estate broker's examination must: (a) be 21 years or older (b) have completed 8 college-level real estate courses (c) have at least 4 years' experience as a real estate salesperson (d) be a resident of California

Q: The second installment of real property taxes is delinquent if not paid by: (a) November 1 (b) December 10 (c) February I (d) April 10

Q: Which of the following would not be governed by the Subdivision Map Act? (a) A condominium project (b) A new single family residence (c) A 100 acre residential development in Las Vegas (d) A new commercial subdivision

Q: Businesses, including real estate offices are directly affected by which state anti discrimination law? (a) Rumford Act (b) Unruh Civil Rights Act (c) Holden Act (d) Civil Rights Act of 1968

Q: If a person purchases the right to occupy a unit for a certain designated period each year, this is called: (a) undivided ownership (b) time share ownership (c) cooperative ownership (d) estate for years ownership

Q: The subdivision law administered by the California Real Estate Commissioner, who requires the issuance of a public report, is the: (a) Subdivision Map Act (b) Subdivided Lands Act (c) Subdivision Report Act (d) Subdivided Interstate Act

Q: There are certain requirements that must be met before a transaction can be placed in escrow. They are: (a) a binding contract between buyer and seller (b) a neutral third party is employed (c) conditional delivery of all documents related to sale (d) all of the above

Q: A history of title transfers for a particular parcel of land is a/an: (a) preliminary report (b) title insurance policy (c) abstracter index (d) chain of title

Q: Regarding the sales comparison approach, which is false? (a) the comps are adjusted to the subject property (b) three is the minimum number of comps to use (c) the subject property is adjusted to the comps (d) this approach is best for valuating residential homes

Q: Which of the following are licensed by the Office of Real Estate Appraisers to do the most complex property appraisals? (a) real estate agents (b) certified-residential appraisers (c) certified-general appraisers (d) licensed appraisers

Q: With a gross monthly multiplier of 150, a duplex that rents one unit for $575 per month and the other for $625 should have an estimated value of: (a) $173,000 (b) $176,000 (c) $197,000 (d) $180,000

Q: The market approach would be given the most weight if appraising a: (a) new home (b) new apartment (c) five-year-old home (d) special purpose property

Q: A loss in value because of a busy street is an example of: (a) economic obsolescence (b) accrual for depreciation (c) functional obsolescence (d) physical deterioration

Q: The appraisal principle that states that the value of a property is dynamic, not static, is the: (a) principle of supply and demand (b) principle of highest and best use (c) principle of substitution (d) principle of change

Q: Which of the following is a physical force that influences value? (a) rate of changes in population (b) income levels (c) size and shape of the parcel (d) zoning changes

Q: The most important consideration in an appraisal is the: (a) methods used (b) experience, license, and integrity of the appraiser (c) data gathered (d) inspection of the title records

Q: Which program would be the best for a borrower looking to put as small a down payment as possible? (a) FHA (b) VA (c) Cal Vet (d) Conventional

Q: Which of the following types of loans are made only to individuals who are intending to occupy the property as a personal residence? (a) VA (b) conventional (c) purchase money (d) jumbo

Q: A mortgage broker negotiated a loan for $10,000 secured by a second trust deed to be paid in 30 monthly payments. The maximum commission the broker is permitted to charge is: (a) $195 (b) $390 (c) $700 (d) $1,000

Q: In a normal sale using both a grant deed and a trust deed (deed of trust) the buyer is the: (a) grantor and trustor (b) grantor and trustee (c) grantee and trustee (d) grantee and trustor

Q: An investor wants to acquire income property that will generate a 10% cap rate. A 6-unit apartment complex rents for $950 per unit per month. Vacancies are 5% of gross rents and operating expenses total $20,500 per year. What is the maximum the investor should offer for this property? (round to nearest $1,000) (a) $684,000 (b) $573,000 (c) $445,000 (d) $403,000

Q: A lot is sold for $180,000, making a 20% profit over cost. What was the cost? (a) $136,000 (b) $144,000 (c) $148,000 (d) $150,000

Q: Four separate co-buyers of a parcel of land signed a deposit receipt contract at different times and places. A copy must be: (a) given to the first signer only (b) given to each at the time they sign (c) given to the first and last signers only (d) sent to each one after the last one signed

Q: A real estate agent may legally refuse to show property available for sale to a person of a minority race if the: (a) agent feels the home was not suited for the people (b) owners were out of town and had left instructions the home was not to be shown to anyone during their absence (c) owners had given specific instructions against showing the home to minority buyers (d) agent felt the buyers would not like the location

Q: If the seller refuses to sell after signing a valid purchase contract and the buyer wants the property instead of money damages, the buyer will most likely sue for: (a) specific performance (b) reversion of title (c) damages (d) rescission

Q: When the owner of a piece of leased property gives the lessee an option to buy, the option: (a) requires the optionee to complete the sale (b) is a lien on the seller's title (c) requires no consideration or fee (d) is not a purchase contract until the option is exercised

Q: An owner gives Ace Realty an exclusive right to sell listing for 90 days. Thirty days later, the owner finds a buyer and sells the property without the services of Ace Realty. The: (a) owner owes Ace Realty a commission (b) owner does not owe a commission (c) sale is voidable (d) two of the answers are correct

Q: An executed contract is a contract that is: (a) signed (b) in writing (c) completed (d) recorded

Q: All of the following are essential for a valid real estate contract, except: (a) lawful object (b) mutual consent (c) capable parties (d) a deposit

Q: The law that states that real estate contracts must in writing to be enforceable is called the statute of: (a) frauds (b) time (c) contracts (d) limitations

Q: Buyer makes a written bonafide offer to purchase, and seller signs the acceptance. A contract is first created: (a) when buyer receives proper communication of seller's acceptance (b) immediately upon seller's acceptance (c) when the buyer and seller sign escrow instructions (d) when the broker presents the offer to the seller

Q: Real estate agencies cannot be terminated by: (a) Agreement (b) Death of the principal (c) Mutual consent (d) Suffrage

Q: Receiving a commission from both the buyer and seller without full disclosure and approval is: (a) legal (b) unenforcable (c) illegal (d) valid

Q: According to the Real Estate Law, for supervising purposes, the relationship between a salesperson and a broker is most similar to: (a) fiduciary (b) independent contractor (c) employer-employee (d) ostensible