California Real Estate Practice Exam

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Study for the California Real Estate Exam with confidence. Engage with interactive questions designed to enhance your understanding of real estate principles, laws, and practices. Prepare thoroughly for your licensing test and ensure you have the knowledge to succeed in your real estate career!

Practice this question and more.

When will the base value of a property and the assessed value be the same?

If the improvement was built this year
If no improvements have been made
After 10 years
When the property is sold

The correct answer is: If the improvement was built this year

Both the base value and the assessed value of a property can change over time. Therefore, the only way for the base value and assessed value to be the same is if the property assessment was done for the first time when the improvement was built this year. This would ensure that there have been no changes to the property's value since the initial assessment. Option B is incorrect because even if no improvements have been made, the assessed value may still change due to changes in the market or other factors. Option C is incorrect because there is no set timeline for the base value and assessed value to be the same. Option D is incorrect because the assessed value can change even if the property is sold, depending on the market value at the time of sale.