Real Estate Principles Chapter 12
An owner is exempt from paying capital gains on up to how much profit on an owner-occupied residence, if he or she has lived there for at least 2 of the previous 5 years
$250,000
A married couple are exempt from paying capital gains up to how much profit on an owner-occupied residence, if they lived there for at least 2 of the previous 5 years
$500,000
In California, resident managers are required in building with at lease how many dwelling units
16
How long does an individual have to close on another property in order to take advantage of a 1031 exchange
180 days
How long does an individual have to identify another property in order to take advantage of a 1031 exchange
45 days
A property will be sold at a tax sale if property taxes are not paid for how many years
5
The 2nd installment of property taxes are due on
February 1st
The 1st installment of property taxes are due on
November 1st
According to this, State property taxes are limited to 1% of the fair market value
Proposition 13
At resale of a capital item, the amount by which the net sale proceeds exceed the adjusted cost basis (book value) is referred to as
capital gain
A commission is owned to the agent only after the transaction closes
false
Capital gains is 15% for high earners
false
Resident managers are required to hold a real estate license in the State of California
false
A real estate broker can only sell a mobile home if they have been registered with
housing and community development
The individual who enters into a listing contract with a principal is known as the
listing agent
A structure transportable in one or more sections, designed and equipped to contain not more that two dwelling units to be used with to without a foundation system is known as a
mobile home
Who is authorized to advertise a mobile home as new
mobile home dealer
A real estate broker cannot have 2 or more mobile homes offered for sale without first having a
mobile home dealer's license
Income earned from providing services or the sale of goods (inventory) is known as
ordinary income
Taxation is manifestation of
police power
In the mortgage industry, this is a step above pre-qualification, it involves verifying a purchaser's credit, down payment, and employment history
pre-approval
In the Property Management Agreement, who is the agent
property manager
Properties in California are assessed at which of the following events
purchase or sale of property
An individual who supervises the care of an apartment complex while living in one of the units in the complex is known as a
resident manager
The individual who finds the buyer (or seller) for the property is referred to as the
selling agent
A legal charge against real estate by a public authority to pay for the cost of public improvements such as street lights, sidewalks, and street improvements is known as a
special assessment
Capital gains are typically taxed at a lower rate than ordinary income
true
Disclosure to the client must be executed prior to signing the listing agreement
true
In order to execute a 1031 exchange, a qualified intermediary must be used
true
The listing agent can also be the selling agent
true