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Flashcards in Quick Quiz 5 Deck (36)
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31

What is the indicated value of a property that produces a gross monthly income of $2,400 and an appropriate (annual) multiplier of 10.72?
A) $225,000
B) $25,000
C) $308,000
D) $108,000

C) $308,000
Gross monthly income $2,400 × 12 months = $28,800/year
Gross multiplier × Gross income = Value estimate
10.72 × $28,800 = $308,736 Closest $308,000

32

An increase in value, resulting from improved usability where one or more contiguous lots are joined together under single ownership, would be a definition most appropriately applied to
A) plottage.
B) assemblage.
C) severalty ownership.
D) appurtenance.

A) plottage.
Plottage increment is the increase in value after combining lots. Assemblage is the act of combining one or more contiguous lots under single ownership.

33

A fire insurance policy can be canceled by the insurance company
A) without notice if the buyer has had excessive losses.
B) only after the company has given written notice and the insured has signed an acceptance.
C) at any time without notice.
D) if the company gives the insured notice within a reasonable time prior to cancellation.

D) if the company gives the insured notice within a reasonable time prior to cancellation.
A fire insurance policy can be canceled only after written notice has been given to the insured with a reasonable time for cancellation to take effect.

34

The right to use and enjoy another's property short of an estate is an example of a(n)
A) easement.
B) deed.
C) leasehold.
D) subordination clause.

A) easement.
An easement is the right to use another's property without payment. Although it is an interest in real property, it is not a "possessory" interest and therefore is not an estate.

35

Which would have the least effect on property taxes in a community?
A) Zoning and private restrictions
B) Compactness of the community
C) Number of commercial buildings and high-priced homes
D) Homestead exemptions

D) Homestead exemptions
Homesteads will not protect the owners from property taxes and would have the least effect on them.

36

If a person paid $220 interest on an $8,000 loan for 90 days, the interest rate was
A) 9%.
B) 12%.
C) 10%.
D) 11%.

D) 11%.
(R × T) × P = I
(%/yr.) × $8,000 = $880*
$880 ÷ $8,000 = 0.11 = 11%/yr.
$220 Interest/90 days × 4 Quarters
$880 Interest/yr.