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.
Which of these scenarios would be most likely to result in the granting of a conditional-use permit? -
ANSWER A person wanting to build or establish a bed & breakfast in an area zoned for residential
use could seek a conditional-use permit from the zoning board as it could be judged as marginally
out of compliance with existing zoning.
Which type of loan is exempt from RESPA? - ANSWER loans on vacant land
Which TILA regulation requires a disclosure statement where lenders must make certain loan facts
known to borrowers? - ANSWER Regulation Z
The most common formal organization of a syndicate is that of a(n): - ANSWER LLC
When does the Interstate Land Sales Full Disclosure Act require the seller to give the report to a lot
purchaser? - ANSWER before a purchase agreement is signed.
Elmer wants to install lowered light switches in his apartment so that he can reach them from his
wheelchair. The landlord agrees but says that Elmer must install them at his own expense. Elmer
argues that the landlord must pay for them.
Who is right? - ANSWER The landlord, has every right to make Elmer pay for the modifications.
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:
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.
Which of these scenarios would be most likely to result in the granting of a conditional-use permit? -
ANSWER A person wanting to build or establish a bed & breakfast in an area zoned for residential
use could seek a conditional-use permit from the zoning board as it could be judged as marginally
out of compliance with existing zoning.
Which type of loan is exempt from RESPA? - ANSWER loans on vacant land
Which TILA regulation requires a disclosure statement where lenders must make certain loan facts
known to borrowers? - ANSWER Regulation Z
The most common formal organization of a syndicate is that of a(n): - ANSWER LLC
When does the Interstate Land Sales Full Disclosure Act require the seller to give the report to a lot
purchaser? - ANSWER before a purchase agreement is signed.
Elmer wants to install lowered light switches in his apartment so that he can reach them from his
wheelchair. The landlord agrees but says that Elmer must install them at his own expense. Elmer
argues that the landlord must pay for them.
Who is right? - ANSWER The landlord, has every right to make Elmer pay for the modifications.
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:
