RE License Test Questions and Answers Latest Update 2024/2025 Graded A+

Ashton, an appraiser, is estimating value using the sales comparison approach. He applies more weight to two comparables over several others he used. What process is he utilizing? - answerCorrelation; Through a correlation process, the most weight may be given to one or two comparables, or equal weight may be given to all. The term reconciliation is often synonymous with correlation. Blake is allowed to use his property in a way that's prohibited under current zoning ordinances, because those ordinances would cause undue hardship for him. What gives him this permission? - answerUSE VARIANCE; This is a Use Variance. In contrast, an applicant for a Special Use permit doesn't have to show hardship, simply that the proposed use meets the conditions already contained in the ordinance (e.g., change in setback). What are the four ECONOMIC CHARACTERISTICS of Real property - answer(1) SCARCITY You can't make more land. (2) IMPROVEMENTS; A land's value can be positively or negatively affected by the improvements made on it. (3) PERMANENCE of Investment; long term returns (4) SITUS/LOCATION/AREA PREFERENCE: A property's value depends in large part on its location To effect a transfer of title by deed in Texas, what must occur? - answerThe grantor must deliver the deed to the grantee and the grantee must accept it; DELIVERY and ACCEPTANCE are the actions that are required to effect a transfer of title by deed. However, acceptance is usually implied. What are the 3 PHYSICAL Characteristics of Real Property - answer(1) Immobility; Doesn't move (2) Indestructibility; improvements may deteriorate but not Land (3) Uniqueness; one piece of land is never like another What is a Monument, in a Metes-&-Bounds property description? - answerMonument: Permanent physical marker used in a metes-and-bounds description that can be man-made or natural. It may be a tree, creek, or rock, or a stake placed in the ground. Monuments are used to mark points at which there is a change in direction as one follows the boundary of the parcel. In a Government Survey System (GSS), what is the Principal Meridian? - answerThe principal meridian is the north-south line that runs through an initial point in the RGSS system. There are 37 named principal meridians in the U.S. RE License Test Questions and Answers Latest Update 2024/2025 Graded A+ In a Government Survey System (GSS), what is the BASE LINE? - answerThe BASE LINE is the east-west line from which measurements originate. East-west lines of a GSS survey are called range lines. The rectangular government survey system, regulated by the U.S. Department of the Interior's Bureau of Land Management, divides land into townships and further into sections and fractions of sections. How big are Townships? - answerTownships are 6mi x 6mi = 36 square miles Every township is six miles square (36 square miles). How big is each section? - answerEach section is one square mile, which is also one mile, squared. Gene and Alex bought a property that backed up to a neighborhood park. The previous owner mentioned that ever since the park was built eight years ago, the next-door neighbor who works at the park has cut through the yard to get to the park rather than go around via the streets, which saves about half a mile. What kind of easement is this? - answerEASEMENT BY PRESCRIPTION; Easements by prescription are created through continuous, exclusive, and long-term use of another's property without actual permission. Gus has applied for a home equity line of credit from his federally insured bank so that he can make some renovations to his kitchen. The same bank is his lender for his home mortgage. Will this loan be subject to Real Estate Settlement Procedures Act requirements? - answerYes, because RESPA applies to any residential loan transaction from a federally insured financial institution, including equity lines of credit. Which clause in the security instrument mandates the lien be discharged when the loan is paid off? - answerDEFEASANCE CLAUSE Which clause means the borrower must fully repay the loan when transferring ownership. - answerDue-on-Sale Clause or Alienation Clause FHA required borrows meet debt-to-income ratios. How much is the max "Housing Ratio" (aka Front end ratio)? - answer31%*. This comprises of housing costs (PITI+HOA dues+ PMI)/monthly gross income. 31% limit may increase if borrower has a higher credit score FHA required borrows meet debt-to-income ratios. How much is the max "Debt Ratio" (aka Back end ratio)? - answer43% to 50%. This includes housing + all other debt like car pmt, CC pmts, school loans etc FHA loans require a min credit score to qualify for the 3.5% down pmt. What is that Min credit score? - answerBorrowers must have a minimum credit score of 580 to qualify for the 3.5% down payment. All lenders have different underwriting standards, but traditionally, the housing debt-to-income ratio has been ______%, with a total debt-to-income ratio of ______ %. - answer25 to 28; 33 to 36; Although 25% to 28%, and 33% to 36% are often used, the qualifying mortgage rules set total debt-to-income ratio at no more than 43%. While this may seem generous, it's a hard and fast percentage that allows for little lender discretion. VA lenders ignore the front end ratio (aka Housing ratio) and look for what % as the back end ratio - answerVA lenders look for a DTI of no more than 41% What is the max amt the VA guarantees? - answerThe VA guarantees up to 25% of loans between $144,000 and the existing loan limit. This 25% replaces the down payment the lender would typically receive. How many acres are in 1 Hectar - answer2.47 Acres Gross rent multiplier (GRM) is used for the appraised value of four or less units. What is the FORMULA? - answerGRM = Value / Gross MONTHLY Rent Violations of the CAN-SPAM Act may result in fines of up to __________per separate email/violation? - answer$40,000 per violation What does the federal Telephone Consumer Protection Act, which is overseen by the Federal Communications Commission (FCC), do? - answerThe federal Consumer Protection Act, protects consumers from unwanted telephone solicitations. The Do Not Call Registry (DNC) act prohibits solicitation calls to any household that has registered its number with the FTC's DNC, with the following exceptions: - answer(1) If you already have a business relationship with that household or have the household's permission to call. (2) If the party is a former customer (for up to 18 months after being involved in a transaction). (3) If you've had an inquiry from them (for up to three months after the inquiry). (4) If the entity is a political or charitable organization The Do Not Call Registry act (DNC) prohibits calls from what time to what time? - answerThe act prohibits calls before 8 a.m. or after 9 p.m., anonymous calls, robo calls, and calls to cell phones. What is the penalty for violating the Do Not Call Registry Act? - answer$41,484 per violation/separate call. The Do Not Call Registry Act requires the Licensee to check the DNC list every how many days? - answerThe DNC requires licensees to check the DNC registry at least every 31 days and drop any disconnected, registered, or reassigned phone numbers from their contact lists.