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TEXAS PRINCIPLES OF REAL ESTATE II FINAL
EXAM 202 5 : QUESTIONS & ANSWERS WITH 100%
CORRECT ANSWERS/A+ GRADE COMPLETE
VERSION
Written documents affecting a title to real estate are recorded: A. where the titleholder resides B. where the titleholder has legal residence C. at the county clerk's office where the property is located D. at any county clerk's office in Texas
- answer- C. at the county clerk's office where the property is located A person appointed by a court to settle the estate of a deceased person when the executor cannot perform or refuses to perform is: A. another executor B. a legatee C. an administrator D. a devisee - answer- C. an administrator What is an abstract of title? A. title insurance B. a history of all recorded activity affecting a parcel of real estate C. a judgment on real property D. a patent - answer-
B. a history of all recorded activity affecting a parcel of real estate
B. dedication C. reliction D. annexation โ answer
- B. dedication The General Warranty Deed contains: A. the covenant of seisin B. the covenant against encumbrances C. both A and B D. neither A or B โ answer
- C. both A and B In order to convey title to real property, a deed must be signed by the: A. grantee B. grantor C. agent D. buyer - answer- B. grantor Sam has moved onto a property owned by Fred. Sam is not leasing the property. If Sam holds possession of the property for a long period of time, he will own the property thru adverse possession. A. True B. False โ answer
- A. True The act passed in 1968 to protect the consumer from land scams is the:
A. Buyers Land Protection Act B. Interstate Land Sales Full Disclosure Act (ILSFDA or LISA) C. Federal Land and Housing Act D. Texas Public Ownership - answer- B. Interstate Land Sales Full Disclosure Act (ILSFDA or LISA) The trustee in a deed of trust: A. writes the contract for the buyer. B. shows the property to the buyer C. forecloses on the property in the event of default. D. collects the monthly payments. - answer- C. forecloses on the property in the event of default. Removing the original borrower's name from the note and substituting the new buyers name is called: A. novation B. substitute C. covenants D. subdividing - answer- A. novation The right to redeem the property before a mortgage foreclosure sale is called: A. equitable redemption B. buyer redemption C. statutory redemption D. never used in Texas - answer- C. statutory redemption
B. package mortgage C. blanket mortgage D. equity mortgage - answer- B. package mortgage A deed is a written document that transfers title to real estate from one person to another. A. True B. False - answer- A. True In a deed the person giving up ownership is the , and the person receiving ownership is the. A. grantee--------grantor B. sublessor -------sublessee C. sublessee ------- sublessor D. grantor--------grantee - answer- D. grantor ------ grantee The highest and best deed used in Texas is the: A. General Warranty Deed B. Special Warranty Deed C. Bargain and Sale Deed D. Quitclaim Deed - answer- A. General Warranty Deed In a the owner warrants that the owner has done nothing to encumber the title while the owner owned the property.
A. General Warranty Deed B. Special Warranty Deed C. Bargain and Sale Deed D. Quitclaim Deed - answer- B. Special Warranty Deed A is created by using the words "love and affection" as the consideration for the deed. A. Consideration Deed B. Correction Deed C. Guardian Deed D. Gift Deed - answer- D. Gift Deed What a person has seen, heard, or read concerning the property is: A. actual notice B. constructive notice C. due within one year D. due within 30 days - answer- A. actual notice The index lists in alphabetical order all sellers named in the documents recorded in a year. A. grantor B. grantee
A. ABC Title in a trust account B. Seller in their bank account C. Buyer in a saving account D. An attorney for the seller and buyer - answer- A. ABC Title in a trust account Prorations of items in real estate closings are made usually as of the date of: A. recording the deed B. the mortgage payment C. buyers' walkthrough D. closing - answer- D. closing The term BEST describes a tenant's interest in the property under a lease is a: A. life estate B. reversionary interest C. remainder interest D. leasehold estate - answer- D. leasehold estate The borrower is required to be notified when the note is sold and the servicing rights are not sold. A. True B. False - answer- B. False
The premiums for the title insurance policy are set by the A. Title Company B. Texas Department of Insurance C. State Department of Premiums D. Texas Real Estate Commission - answer- B. Texas Department of Insurance A statutory year has days and each month has days. A. 365 ------- 31 B. 365 ------- 28 C. 360 ------- 28 D. 360 -------- 30 - answer- D. 360 ------ 30 When a property has become uninhabitable and the landlord has refused to repair the property the tenant may file a A. constructive eviction B. foreclosure against the owner C. judicial eviction D. must stay in the property until lease is up - answer- A. constructive eviction The legal description that uses distance and direction to describe the shape and boundaries of a property is: A. rectangular survey system
A. term loan B. straight loan C. amortized loan D. loan point - answer- C. amortized loan Zoning is enforced by A. lenders and appraisers B. streets and roads C. building permits and building codes D. neighbors - answer- C. building permits and building codes Graduate, Realtor Institute (GRI) is a designation presented by A. NAR B. TAR C. TRELA D. IREM - answer- A. NAR The CPM designation is presented by: A. IREM B. NAR-National Association of Realtors C. TREC-TEXAS REAL ESTATE COMMISSION
D. TAR-Texas Association of REALTORS - answer- A. IREM - Institute of Real Estate Management Which of the following is not an approach in the appraisal of real estate? A. income approach B. market comparison approach C. cost approach D. projected gross approach - answer- D. projected gross approach A mortgage broker: A. arranges loans between borrowers and lenders B. is a lender C. buys mortgages in the secondary mortgage market D. buys mortgages and resells them at a profit - answer- A. arranges loans between borrowers and lenders The loan that requires regular equal payments of sufficient size and number to pay all interest and principal by the end of the loan is: A. a term loan B. a balloon loan C. a one-time payment loan D. an amortized loan - answer- D. an amortized loan The Deed of Trust has several advantages for the lender including:
D. equity mortgage - answer- A. reverse mortgage The owners of a cooperative estate hold shares of stock in the cooperative and are issued a: A. proprietary lease B. gross lease C. seller's list D. buyer's list - answer- A. proprietary lease All Fair Housing laws apply to properties for lease as well as properties for sale. A. True B. False - answer- A. True At the closing A. all documents will be signed B. all doors and windows must be locked C. seller will receive the sales price for the property D. both A and C - answer- D. both A and C Possession of the property will be given to the buyer when: A. the seller signs the contract B. the buyer offers earnest money
C. the loan funds D. real estate is paid - answer- C. the loan funds In analyzing a mortgage loan application, it is illegal for a lender to consider: A. job stability B. martial status C. income adequacy D. credit rating - answer- B. martial status A legal claim on a property resulting from a debt against the property is called a: A. deed B. lease C. lien D. ownership - answer- C. lien Land plus new construction cost minus depreciation is the formula for the? A. cost approach B. market data approach C. income approach D. capitalization approach - answer- A. cost approach Private Mortgage Insurance was formed as a privately owned business venture to insure home mortgage loans. It insures
D. Abstract - answer- D. Abstract ... is section of the internal U.S. Internal Revenue Service Code that allows investors to defer capital gains taxes on any exchange of like-kind properties for business or investment purposes. A. Section 1031 Exchange B. REIT C. LISA D. Form 1040 - answer- A. Section 1031 Exchange ... has unity of time, unity of instrument of deed, undivided shares or identical interest measured by duration, unity of right of possession to the whole, and is not able to pass on the right to heir, but the ownership passed to the surviving tenant. A. Tenancy in common B. Joint tenant C. Partnership D. Corporation - answer- B. Joint tenant Syndicates rules and regulations are governed by... A. Texas Real Estate Law B. The Securities and Exchange Commission. C. Local Regulations D. IRS Codes - answer- B. The Securities and Exchange Commission. Bill and Jenna are getting a $175,000 loan at 7.5 percent and will pay 2 discount points. What will the point cost be? A. $3, B. $3,
C. $7,
D. $2,625 - answer- B. $3, Point Cost: $3, $175,000 x .01 x 2 points Bill and Jenna are getting a $175,000 loan at 7.5 percent and will pay 2 discount points. What will the effective interest rate be? A. 7.50% B. 7.75% C. 8.75% D. 8.00% - answer- B. 7.75% Effective Interest Rate: 7.75 % 2 points x 1/8 percent = 4/8 =.25 percent 7.50 + .25 = 7.75 percent A $12,500 loan for one year is borrowed at a 5.5 % annual interest rate. What is the simple interest for the one year? A. $687. B. $1,375. C. $500. D. $6,875.00 - answer- A. $687. Interest = principal x rate x time: Using the formula above, the interest rate on a $12,500 loan for one year at 5.5 percent interest is $687.50. $12,500 x .055 x 1 = $687.
