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