Texas Principles of Real Estate II (Final Exam Study Guide Questions & Answers(RATED A)
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Course
Texas Principles
Institution
Texas Principles
What is the name of the sworn statement in which the seller assures the title company (and the buyer) that there are no liens, unpaid bills for repairs or improvements, or undisclosed defects in the title? - ANSWER affidavits as to debts and liens
Tax incentives that cover the cost of energy-ef...
Texas Principles of Real Estate
II (Final Exam Study Guide
Questions & Answers(RATED
A)
What is the name of the sworn statement in which the seller assures the title company (and the
buyer) that there are no liens, unpaid bills for repairs or improvements, or undisclosed defects in the
title? - ANSWER affidavits as to debts and liens
Tax incentives that cover the cost of energy-efficient improvements, EEMs, and Energy Star-qualified
homes are examples of: - ANSWER green initiatives
Which of the following borrowers would be MOST likely to use a graduated-payment mortgage? -
ANSWER young borrower starting their career, anticipating an income raise in the next several years
Which of the following BEST describes why RESPA was passed? - ANSWER to ensure meaningful
disclosure of closing costs in a real estate transaction
Property manager William hires an HVAC specialist to repair a broken air conditioner in an
apartment.
This is an example of: - ANSWER corrective maintenance
Which of the following is TRUE? - ANSWER A Texas real estate license does NOT allow agents and
brokers to act as appraisers or home mortgage originators
A handwritten will created solely by the maker (and not witnessed) is called a: - ANSWER
holographic will
, Ashley just bought a house. To purchase the house, she got a loan for $400,000 with 3 discount
points. How much did she pay for the discount points? - ANSWER One discount point costs 1% of the
loan amount; therefore, one discount point cost $4,000 in Ashley's case. Ashley paid $12,000 for 3
discount points.
What is a habendum clause? - ANSWER A habendum clause defines or limits the ownership interest
of the grantee.
Emanuel wants to purchase a resort property on the beach, but he needs to make some renter
revenue to help pay for both his primary residence and his resort property.
What factor should Emanuel NOT be prioritizing? - ANSWER decorating the resort property with
personal, familial items to make his family feel welcome
43,560 sq. ft. could also be expressed as: - ANSWER one acre
Using the cost approach formula, find a property's value using the following information:
The subject property is 20 years old and has 30 remaining years of economic life.
The cost of reproduction of the subject property is $375,000.
The subject property's land value is $140,625. - ANSWER Here are the steps to solving this problem,
using the cost approach formula (Reproduction cost - Depreciation + Land value = Property value):
Calculate depreciation percentage: 20 ÷ (20+30) = 0.4. Calculate depreciation amount: $375,000 x 0.4
= $150,000. Calculate property value: Property reproduction cost ($375,000) - Depreciation amount
($150,000) + Land value ($140,625) = $365,625.
The Interstate Land Sales Full Disclosure Act is applicable to developers involved in the interstate sale
or leasing of: - ANSWER 100 or more lots
Tyrone signed a lease on a residential property. His lease lasts nine months.
Which of the following is TRUE? - ANSWER Lease agreements for less than one year are NOT
required to be in writing.
What does the acronym REIT stand for? - ANSWER A real estate investment trust (REIT) is a
registered company that owns and operates commercial real estate.
Grayson is worried that, because she is an elderly person, she will not get pre-approval on her loan.
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