CALIFORNIA REAL ESTATE EXAM 3 LATEST VERSIONS

CALIFORNIA REAL ESTATE EXAM 3 LATEST VERSIONS

(VERSION A, B AND C) 2023-2024 ACTUAL EXAM 350

QUESTIONS AND CORRECT DETAILED ANSWERS

(VERIFIED ANSWERS) |ALREADY GRADED A+

VERSION A

• You are preparing a competitive market analysis on a vacant lot that you hope to

list for sale. Which of the following approaches to value will be used in the development of the estimated value?

• Cost approach
• Gross rent multiplier
• Income approach
• Sales comparison approach - ANSWER- D. Sales comparison approach

• Which of the following comparables would be the most helpful in appraising a

home?

• A similar home sold for nonpayment of taxes.
• A similar property sold under duress.
• A similar home sold by a motivated seller to a motivated buyer.
• A similar home sold by an unwilling seller to an unsure buyer. - ANSWER- C.

A similar home sold by a motivated seller to a motivated buyer.

3. The period over which a property may be profitably utilized is called its:

• economic life
• amortized life
• income life
• net life - ANSWER- A. economic life 1 / 4

• Wear and tear to the load bearing members of a building would be classified as:
• functional obsolescence-curable
• physical deterioration-curable
• functional obsolescence-incurable
• physical deterioration-incurable - ANSWER- D. physical deterioration-

incurable

5. While the economy is experiencing inflation, interest rates:

• drop and housing prices rise
• rise and housing prices drop
• rise and housing prices rise
• None of the above - ANSWER- C. rise and housing prices rise

• When using the market-data approach to appraise a single-family home, recent

sales are compared to the subject property as to:

• capitalization rates
• exterior features only
• the entire property
• rental income - ANSWER- the entire property

7. A real estate commission is usually based on the:

• listing price
• selling price 2 / 4

• down payment
• loan amount - ANSWER- selling price

8. The increase of value with the passage of time describes:

• appreciation
• "return on" investment
• "return of" investment
• depreciation - ANSWER- appreciation

• Which of the following statements does NOT correctly describe a fiduciary?
• A fiduciary owes loyalty to the principal
• A fiduciary must conform to the principal's legal instructions
• A fiduciary is an agent
• A fiduciary is a neutral third party - ANSWER- fiduciary is a neutral third party

• A broker secured a buyer for his client and the seller accepted. Under which

type of listing could a broker not receive a commission?

• net listing
• open listing
• exclusive listing
• exclusive authorization and right to sell listing - ANSWER- net listing

• Mr. Seller signs an open listing on his home with five different brokers. In this

case:

• each broker has an opportunity to earn the entire commission 3 / 4

• the brokers will split the commission five ways regardless of who sells it
• the owner must pay a full commission to all five brokers when it sells
• the owner must pay the first broker to take the listing no matter who sells it -

ANSWER- each broker has an opportunity to earn the entire commission

12. A mortgage is usually accompanied by:

• a deed
• a conditional sales contract
• a title policy
• a promissory note - ANSWER- a promissory note

• Failure to perform any of the terms or conditions of a contract is called a(n):
• novation
• break
• addendum
• breach - ANSWER- breach

• A parcel of vacant land is listed for $100,000, requiring 20% down with the

seller to carry back the balance. The broker brings in a full-price cash offer, but the

owner refuses. The broker is entitled to:

• half of the commission
• the full commission
• a commission as a percent of the down payment
• nothing - ANSWER- nothing

• Under a lease, the leasehold interest lies in the:
• / 4