Free CA-RE-S Practice Questions

Question 1

A restaurant tenant installs a commercial oven for the business, bolts it to the floor, and connects it to a gas line. The lease says nothing about the oven. Before the lease expires, the tenant can disconnect and remove it safely and repair the bolt holes. How should the oven be classified?

Accepted Answer

A trade fixture the tenant may remove before lease end after repairing any damage

Answer

A fixture belonging to the landlord because bolting it to the floor indicates permanence

Answer

Tenant personal property removable only with the landlord's written consent

Answer

A leasehold improvement that must remain unless the lease permits removal

Question 2

For six uninterrupted years, the owner of Parcel A openly and regularly drives across the same strip on Parcel B without permission and under a claim of right. No taxes are separately assessed against the claimed easement. The Parcel A owner never exclusively possesses the strip or any other part of Parcel B. The facts most strongly support:

Accepted Answer

A prescriptive easement limited to the roadway use

Answer

Fee title to the strip through adverse possession

Answer

An easement by necessity arising from prior common ownership

Answer

An implied license arising from the neighbor's failure to object

Question 3

A buyer reviewing a confirmed long-term radon result of 2.8 pCi/L asks whether the reading is considered risk-free or requires mitigation. Which explanation best reflects EPA guidance?

Accepted Answer

It is below 4 pCi/L but within the range where EPA says fixing should be considered

Answer

Treat it as risk-free because EPA recommends action only at 4 pCi/L or higher

Answer

Recommend mandatory mitigation because every reading above 2 pCi/L exceeds EPA's action level

Answer

Compare it with the national indoor average before deciding whether to mitigate

Question 4

With both parties' informed consent, one brokerage represents the seller and buyer. The broker knows the seller would accept $35,000 less than the asking price. The broker also learns that the property has active foundation settlement, a material condition the buyer neither knows nor can readily observe. Without the seller's further permission, what should the broker disclose to the buyer?

Accepted Answer

The active foundation settlement, but not the seller's confidential price floor

Answer

Both facts, because a dual agent must give each principal identical information

Answer

Neither fact, because both were learned while representing the seller

Answer

The price floor, but not the settlement because the buyer may hire an inspector

Question 5

During a visual inspection of an accessible bedroom in a three-unit residential property, the listing agent sees a large ceiling stain with damp, peeling paint. The seller says an old roof leak was repaired and directs the agent not to disclose it. The agent should:

Accepted Answer

Describe the stain and seller's explanation, and recommend qualified inspection

Answer

Wait until the buyer's inspector confirms that an active leak exists

Answer

Pause the listing until the seller obtains a roofer's written clearance

Answer

Omit the observation because agents are not required to perform destructive testing

Question 6

Halfway through a six-month exclusive-right-to-sell listing that is not coupled with an interest, the seller unequivocally tells the broker, "You no longer have authority to represent me." The revocation violates the listing agreement. As between the seller and broker, what follows immediately?

Accepted Answer

The broker's authority ends immediately, but the seller may owe damages for breach

Answer

The broker's authority continues because the listing has a fixed expiration date

Answer

The listing automatically becomes an open listing for its remaining term

Answer

The broker must obtain a court-ordered release before ceasing representation

Question 7

A house without a pool is being appraised. An otherwise equivalent comparable sold for $820,000 and has a pool with a market-supported contributory value of $40,000. What adjusted sale price does the comparable indicate for the subject?

Accepted Answer

$780,000; subtract the pool's $40,000 contributory value from the sale price

Answer

$860,000; add the pool contribution because the subject lacks the feature

Answer

$820,000; make no adjustment because construction cost is not stated

Answer

Reject the sale because a comparable with a pool cannot be adjusted reliably

Question 8

An eight-unit property produces $192,000 in scheduled rent and $8,000 from parking at full occupancy. Vacancy and collection loss are $12,000, annual operating expenses are $50,000, and annual debt service is $42,000. After separating financing from property operations, which NOI-and-value pair should the appraiser use at an 8% capitalization rate?

Accepted Answer

$138,000 NOI and $1,725,000 value

Answer

$96,000 NOI and $1,200,000 value

Answer

$150,000 NOI and $1,875,000 value

Answer

$188,000 NOI and $2,350,000 value

Question 9

An appraiser evaluates a vacant parcel. Luxury apartments would produce the highest residual land value, but residential use is prohibited and rezoning is not reasonably probable. A retail project conforms to zoning, fits the site, produces the market-required return, and yields a $2.4 million residual land value. Self-storage is permitted and fits the site but fails to produce the required return. Existing parking yields a $1.1 million land value. Which use is highest and best?

Accepted Answer

Retail, because it is the most productive use that passes all four tests

Answer

Luxury apartments, because the highest projected return overrides current zoning

Answer

Self-storage, because physical possibility is enough to establish feasibility

Answer

Parking, because an existing use is presumed to remain highest and best

Question 10

After an adjustable-rate mortgage resets upward, its payment cap keeps the required monthly payment below the interest accruing for that month. The borrower pays the required amount on time. What happens to the loan balance?

Accepted Answer

Unpaid interest is added to principal, causing negative amortization

Answer

The loan remains fully amortizing because the payment was timely

Answer

The lender must waive the interest above the capped payment

Answer

The servicer must accelerate the loan despite the borrower's compliance

Free CA-RE-S Practice Questions

Domain 1: Property Ownership and Land Use Controls and Regulations 15% of exam

Question 1

Question 2

Question 3

Domain 2: Laws of Agency and Fiduciary Duties 17% of exam

Question 4

Question 5

Question 6

Domain 3: Property Valuation and Financial Analysis 14% of exam

Question 7

Question 8

Question 9

Domain 4: Financing 9% of exam

Question 10

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