TEXAS REAL ESTATE NATIONAL EXAM ACTUAL EXAM 145 QUESTIONS AND CORRECT DETAILED ANSWERS (VERIFIED AND CORRECT ANSWERS) |ALREADY GRADE

TEXAS REAL ESTATE NATIONAL EXAM ACTUAL EXAM 145 QUESTIONS AND CORRECT DETAILED ANSWERS (VERIFIED AND CORRECT ANSWERS) |ALREADY GRADE An assessment is a special type of appraisal used for A.) Property tax purposes. B.) Estate tax returns. C.) Divorce settlements. D.) Income tax returns. - Answer️️ -A. property tax purposes A company who provided materials for an owner to remodel their property may give constructive notice of their unpaid invoices by: A.) obtain a blanket lien B.) obtain a mechanic's or material man's lien C.) obtain a vendor's lien D.) obtain an inchoate lien - Answer️️ -B. obtain a mechanic's or material man's lien The value of land can be greatly influenced by improvements made to surrounding parcels of land. This characteristic is called? - Answer️️ -modification Which of these would the seller sign at closing TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD OWNER: EMILLYCHARLOTTE COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED FIRST PUBLISHED: SEPTEMBER 2024 A.) The mortgage B.) The Promissory note C.) The deed of trust D.) The property deed - Answer️️ -D. the property deed Regarding a land contract, which of the following is a true statement? A.) A buyer is given legal ownership and title when the contract is signed. B.) A buyer is given the right to possession. C.) A land contract is the best means to purchase a property. D.) The seller forfeits legal title until the contract is honored. - Answer️️ -B. a buyer is given the right to possession RESPA prohibits, A.) Use of the HUD settlement statement B.) Owner refinance C.) Fees for services not actually performed during the closing process D.) The buyer from selecting their own title insurance company - Answer️️ -C. fees for services not actually performed during the closing process The definition of real property includes all except which of the following A.) Air rights B.) Surface rights C.) Chattels D.) Subsurface rights - Answer️️ -C. chattels TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD OWNER: EMILLYCHARLOTTE COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED FIRST PUBLISHED: SEPTEMBER 2024 The appraisal principle of substitution states that A.) Some improvements have a larger payoff in increased value than others. B.) The buyer is paying for expected benefits in the future. C.) No one will pay more if something equally desirable is available for less. D.) Maximum value is reached where there is reasonable uniformity in the neighborhood. - Answer️️ -C. no one will pay more if something equally desirable is available for less Market data approach appraising may require adjustments of sold comparables by an appraiser for all of the following EXCEPT A.) Replacement cost of structure. B.) financing made available by seller. C.) Lot size and location D.) Sale date of comparable - Answer️️ -A. replacement cost of structure The term "Commingling" refers to A.) One office finding a buyer for another office's listing. B.) The same office acting as buyer's broker and seller's broker for the same property. C.) Looking for real estate business at community social events. D.) Mixing funds held for other persons with one's own money. - Answer️️ -D. mixing funds held for other persons with one's own money When evaluating the data in a neighborhood analysis, a residential property manager will be LEAST concerned with: TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD OWNER: EMILLYCHARLOTTE COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED FIRST PUBLISHED: SEPTEMBER 2024 A.) Opportunity for expansion B.) Special utility services C.) Traffic counts D.) Trends in population composition - Answer️️ -B. special utility services Title Insurance protects the owner or lender against unexpected claims arising from past. A.) Zoning ordinances. B.) Recorded Easements. C.) Forged documents. D.) Unpaid property taxes. - Answer️️ -C. forged documents An abstract of title contains A.) An Attorney's opinion of title. B.) A quiet title lawsuit. C.) The summary of a title search. D.) A registrar's certificate of title. - Answer️️ -C. the summary of a title search When is a salesperson allowed to do an appraisal A.) if their fee is under 1% of the value B.) if the value is over $250,000 C.) Never D.) if the loan is FHA insured - Answer️️ -C. never An example of government influence on the real estate economy is: TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD OWNER: EMILLYCHARLOTTE COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED FIRST PUBLISHED: SEPTEMBER 2024 A.) Tax rates B.) interest rates C.) local building codes D.) all of the above - Answer️️ -D. all the above The percentage the lender will loan in relationship to the appraised value of the property is called: A.) loan-to-value ratio B.) insured ratio C.) market ratio D.) adjustable ratio - Answer️️ -A. loan-to-value ratio Value is best defined as A.) The highest price that a property will bring. B.) Capital outlay for land, labor, materials and profits. C.) A measure of the present worth of future benefits as perceived by each person. D.) The amount a buyer agrees to pay and a seller agrees to accept. - Answer️️ -C. a measure of the present worth of future benefits as perceived by each person A metes and bounds survey also starts at the "point of beginning" and ends at the: A.) The last benchmark B.) Monument C.) Point of beginning D.) Datum - Answer️️ -C. point of beginning TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD OWNER: EMILLYCHARLOTTE COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED FIRST PUBLISHED: SEPTEMBER 2024 The legal remedy in many sales contracts which allows the non-defaulting party to force the sale is A.) Punitive damages. B.) Earnest money. C.) Bilateral promises. D.) Specific performance. - Answer️️ -d. specific performance When a contract contains provisions outlining what money penalties will be levied against the party that refuses to perform, the amount specified is known as A.) Consideration. B.) Liquidated damages. C.) Earnest money. D.) Specific performance. - Answer️️ -B. liquidated damages What is the seller's evidence of title A.) Mortgage information letter B.) Title insurance policy C.) Mortgagee insurance premium D.) Mortgagee's title policy - Answer️️ -B. title insurance policy Business cycles A.) Recur at regular intervals. B.) Cannot be regulated by government fiscal and monetary policy. C.) Involve periods of expansion, recession, depression and revival. TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD OWNER: EMILLYCHARLOTTE COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED FIRST PUBLISHED: SEPTEMBER 2024 D.) Occur simultaneously throughout the state. - Answer️️ -C. involve periods of expansion, recession, depression and revival Which of the following actions might leave a licensee open to a charge of practicing law without a license? A.) Licensee advises the seller that the property won't sell because it is over priced B.) Licensee advises the buyer that a title policy should be obtained as well as a survey C.) Licensee advises both the buyer and seller that in his opinion title to the subject property is encumbered D.) Licensee adds factual statements and business details to a promulgated form as requested by the client - Answer️️ -C. licensee advises both he buyer and seller that in his opinion title to the subject property is encumbered Which principle of valuation would a homeowner use to determine if an additional room would increase or decrease the value of his property in a deteriorating neighborhood A.) plottage B.) anticipation C.) balance D.) contribution - Answer️️ -D. contribution When money is escrowed each month to cover annual payments of insurance and taxes, the mortgage is called A.) A growing equity mortgage. B.) A graduated payment mortgage. TITLE: EMILLYCHARLOTTE 2024/2025 ACADEMIC PERIOD OWNER: EMILLYCHARLOTTE COPYRIGHT STATEMENT: ©2024 EMILLYCHARLOTTE. ALL RIGHTS RESERVED FIRST PUBLISHED: SEPTEMBER 2024 C.) A budget mortgage. D.) A blanket mortgage. - Answer️️ -C. a budget mortgage The term "comps" refers to A.) Reserves for replacement. B.) Operating expense ratios. C.) Recent nearby sales. D.) Reproduction cost. - Answer️️ -C. recent nearby sales In a loan closing, proper signatures on the promissory note create A.) The transfer of ownership to a trustee. B.) The lien on the property. C.) The indebtedness of the borrower. D.) Recordation of the lien on the land records. - Answer️️ -C.