Quizeey

California Real Estate Salesperson

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Set · 2026-10

A well-maintained house loses value because of newly increased noise from a nearby industrial operation. What type of depreciation is most relevant?

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2026-10 · 150 practice questions with explanations

Original, independent study material. This is not an official exam paper.

20 questions on this page

  1. A well-maintained house loses value because of newly increased noise from a nearby industrial operation. What type of depreciation is most relevant?

  2. An income property has stabilized annual net operating income of $96,000 and an appropriate capitalization rate of 8%. What value does direct capitalization indicate?

  3. A property has $120,000 annual potential gross income, $6,000 vacancy and collection loss, and $34,000 operating expenses. Before debt service, what is NOI?

  4. An investment property has annual NOI of $75,000 and a value of $1,250,000. What capitalization rate is indicated?

  5. A rental house sells for $600,000 and has monthly gross rent of $3,000. What monthly gross rent multiplier is indicated?

  6. A property sells for $720,000 and produces annual gross income of $60,000. What annual gross income multiplier is indicated?

  7. An investor receives $18,000 annual before-tax cash flow after debt service on a $200,000 cash investment. What is the cash-on-cash return?

  8. Using 43,560 square feet per acre, how many square feet are in a 0.75-acre parcel?

  9. A brokerage earns a total $40,000 commission on a transaction. Its written agreement gives the salesperson 60% of that amount, with no other deductions or splits. What is the salesperson's share?

  10. In a common California loan secured by a deed of trust, which document states the borrower's promise to repay the debt?

  11. In a typical deed-of-trust arrangement, which party is the trustor?

  12. Two deeds of trust secure the same property. Which statement about priority is most accurate?

  13. A buyer obtains a $480,000 loan on a property valued at $600,000 for this calculation. What is the loan-to-value ratio?

  14. A lender charges two discount points on a $400,000 loan. What is the dollar charge?

  15. A $300,000 interest-only loan carries a 6% annual simple interest rate. Ignoring fees and day-count variations, what is one month's interest?

  16. In a standard fully amortizing fixed-rate loan with level principal-and-interest payments, what usually happens over time?

  17. A scheduled loan payment is less than the interest accrued for the period, and the unpaid interest is added to principal. What is occurring?

  18. A partially amortizing loan requires a large remaining balance to be paid at maturity. What is that final payment called?

  19. An adjustable-rate mortgage calculates its rate from a stated index plus a margin, subject to applicable limits. Which statement is correct?

  20. What is the FHA's role in a typical FHA-insured home loan?

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