Principles 2 Aceable Practice Exams | Questions & Answers (100 %Score) Latest Updated
2024/2025 Comprehensive Questions A+ Graded Answers | With Expert Solutions
Pedro has a payment plan featuring constant payments of principal and interest throughout the life of
the loan. His lender first credits the monthly payment towards the interest owed for the month, with
the remainder of the payment going towards reducing the principal balance.
What kind of payment plan is this?
A) An adjustable-rate mortgage loan
B) A straight amortized loan
C) An interest-only loan
D) A fixed-rate amortized loan - D) A fixed-rate amortized loan
Which of the following is NOT one of the minimum requirements for a deed to be valid in Texas?
A) The deed must be delivered to a legitimate grantee and accepted.
B) The deed must be signed by a municipal agent.
C) The parties involved must be properly identified.
D) The property must be properly and sufficiently identified. - B) The deed must be signed by a
municipal agent.
What does "REO" stand for?
A) Resort estate owned
B) Real estate organization
C) Real estate owned
D) Real estate office - C) Real estate owned
A tenant remains in possession of a landlord's property without a current lease agreement or the
landlord's approval.
,Which statement is TRUE in this situation?
A) The tenant has no obligation to pay rent.
B) The landlord can pursue actual eviction.
C) The tenant is maintaining a gross lease.
D) The landlord may be subject to a constructive eviction. - B) The landlord can pursue actual eviction.
Bob is a real estate agent. Can he perform an appraisal?
A) No, unless he is also a licensed appraiser
B) No, he cannot perform appraisals unless his client asks him to
C) Yes, under the supervision of his broker
D) Yes, he can always perform appraisals - A) No, unless he is also a licensed appraiser
Which would NOT be accounted for as an operating expense?
A) Window repairs
B) Security fees
C) Water bill
D) Pet rent - D) Pet rent
In terms of syndicates, what is a general partnership?
A) A partnership where all members equally share responsibilities, profits, and losses
B) A partnership that ensures centralized management as well as limited liability for investors
C) A partnership that is taxed doubly in exchange for other financial benefits
D) A partnership where all members equally share responsibilities but there is limited liability with
profits and losses - A) A partnership where all members equally share responsibilities, profits, and losses
,Consider the following scenarios involving wills. Evaluate in which of the following scenarios the courts
would consider the will to be VALID:
A) A will is made by Lauren, a woman who is being unduly influenced by her eldest son to will her estate
to him.
B) A will is made by Derek, a man who was declared mentally incompetent by the courts two years prior.
C) A will is made by William, a man who suffers from dementia but who retains sufficient mental
capacity to comprehend the specifications of his will.
D) A will is made by a lawyer and signed by Natalie against her volition; her children threaten they will
not speak to her if she does not sign. - C) A will is made by William, a man who suffers from dementia
but who retains sufficient mental capacity to comprehend the specifications of his will.
According to the Texas Property Code, how long does a landlord have to return or account for a security
deposit?
A) 30 days
B) 15 days
C) 45 days
D) 10 days - A) 30 days
The state needs to acquire someone's private land in order to build a six-lane highway. The government
MUST:
A) Take the landowner to court to get a formal decision
B) Provide additional land in substitution of the land they are acquiring
C) Ask the landowner to voluntarily alienate the property
D) Provide just compensation in exchange for the property - D) Provide just compensation in exchange
for the property
What is the value of a property if the net operating income is $45,600 and the cap rate is 20%?
, A) $2,280,000
B) $228,000
C) $9,120
D) $912,000 - B) $228,000 ($45,600/.20)
Cash flow is defined as:
A) Non-spendable cash that an investment generates after accounting for the operating expenses, debt
service, and taxes
B) Increase in the value of the property over time
C) Decrease in the value of the property over time
D) Spendable cash that an investment generates after accounting for the operating expenses, debt
service, and taxes - D) Spendable cash that an investment generates after accounting for the operating
expenses, debt service, and taxes
The replacement cost to build a house is approximately $350,000. Similar lots presently sell for
$100,000. The property's physical deterioration equals about $60,000. Based on the cost approach,
what would be the value of this property?
A) $270,000
B) $250,000
C) $450,000
D) $390,000 - D) $390,000 ($350,0000+$100,000-$60,000)
A person died testate. They devised their real estate to their niece. There is a mechanic's lien on the
property. Which of the following is TRUE?
A) The niece will be responsible for the lien when she takes ownership.
B) The house will be sold at auction to pay the lien.
C) The niece will not be liable for any debts incurred by the testator.
