California — Property Ownership & Land-Use — California Real Estate — State Law Practice Test

This California Real Estate — State Law California — Property Ownership & Land-Use practice set has 24 practice questions based on the official exam materials, each with an instant explanation.

Sample questions

Three questions from the California — Property Ownership & Land-Use bank with the correct answer and an explanation. The practice quiz above draws 24 questions at random from the same bank.

1. Under California's Proposition 13 (Cal. Const. Art. XIII A), what is the maximum ad valorem general property tax rate that may be applied to a property's assessed value?

   • 1% of the assessed value — Correct answer
   • 2% of the assessed value
   • 1% of the current market value
   • A rate set annually by each county assessor

   Explanation: Proposition 13 caps the base general (ad valorem) property tax at 1% of the property's assessed (base-year) value; voter-approved bonded indebtedness can be added on top, but the general rate itself is limited to 1%. English term — Ad valorem tax（从价税）: a tax based on the assessed value of the property. Source: Cal. Const. Art. XIII A §1.

   Handbook: California Property Ownership — Proposition 13 base tax rate (Cal. Const. Art. XIII A §1)

2. Under Proposition 13, absent a change of ownership or new construction, by how much may a California property's assessed (taxable) value be increased each year?

   • A maximum of 2% per year — Correct answer
   • A maximum of 1% per year
   • Up to the full change in market value
   • A maximum of 10% every five years

   Explanation: Proposition 13 limits the annual increase in a property's base-year value to a maximum of 2% per year (tied to the inflation factor, but never exceeding 2%). This keeps the taxable value below market value for long-held property until a reassessment event occurs. English term — Base-year value（基准年价值）: the assessed value set at acquisition, escalated at most 2% yearly. Source: Cal. Const. Art. XIII A §2(b).

   Handbook: California Property Ownership — Proposition 13 2% annual cap (Cal. Const. Art. XIII A §2(b))

3. Under Proposition 13, which event causes a California property to be REASSESSED to its current full market value (a new base-year value)?

   • A change of ownership or completion of new construction — Correct answer
   • Any year in which local home prices rise more than 2%
   • Refinancing the existing mortgage on the property
   • The owner reaching age 55

   Explanation: Proposition 13 reassesses a property to current market value only upon a change of ownership or the completion of new construction. Otherwise the base-year value rises at most 2% per year, regardless of how much the market climbs. English term — Reassessment（重新评估）: re-setting a property's taxable value to current market value upon a qualifying event. Source: Cal. Const. Art. XIII A §2(a).

   Handbook: California Property Ownership — Proposition 13 reassessment triggers (Cal. Const. Art. XIII A §2(a))