TEXAS SAE REAL ESTATE APPRAISAL
ACTUAL EXAM PAPER 2026 200+
QUESTIONS AND ANSWERS GRADED A+
⩥ Martin placed all of his real estate investments in a trust, and the
proceeds are distributed through the trust to his son Nathan. Martin still
manages the properties indirectly, and Nathan currently benefits, as he's
past the required beneficiary age of 18. What type of trust is this?
a. Indirect trust
b. Living trust
c. Probate trust
d. Testamentary trust
**Because Martin is still living, this is a living trust. Answer: b. Living
trust
⩥ When using the sales comparison approach to value, what might it
mean if there's a large total adjustment needed for a comparable
property?
a. The comparable is much less valuable than the subject property.
b. The comparable is much more valuable than the subject property.
,c. The comparable is nearly identical to the subject property.
d. The property may not be a reliable comparable for the subject
property.. Answer: d. The property may not be a reliable comparable for
the subject property.
⩥ Which of the following land valuation methods uses this formula:
Income ÷ capitalization rate = value?
a. The abstraction method
b. The allocation method
c. The ground rent capitalization method
d. The sales comparison method. Answer: c. The ground rent
capitalization method
⩥ Which of the following is a true statement about building codes?
a. If there is no local code to cover a situation, no code applies.
b. Local codes address situations not addressed at the federal or state
level.
c. Local codes can change state codes.
d. Local codes don't have to comply with federal codes.. Answer: b.
Local codes address situations not addressed at the federal or state level.
,⩥ Which of the following reports involves the most rigorous process for
establishing a property's market value?
a. BPO
b. CMA
c. Formal appraisal
d. Value history review. Answer: c. Formal appraisal
⩥ Siblings Julia and Gene are co-owners of a small retail building in
which a tanning salon is currently operating. Gene really wants to leave
his ownership interest to his son when he dies, but the way in which they
own the property doesn't allow him to do so. What type of ownership do
they have?
a. Joint tenancy
b. Tenancy by the entirety
c. Tenancy in common
d. Tenancy in severalty
**Joint tenancy does not include the right of inheritance; ownership
interest passes to the remaining tenants once a tenant dies.. Answer: a.
Joint tenancy
, ⩥ Mary is driving through a neighborhood where she's considering
moving. She loves these homes because their exterior is a combination
of stone and stucco. What part of the wall is she looking at?
a. Fascia
b. Flashing
c. Sheathing
d. Siding. Answer: d. Siding
⩥ Which of the following is an advantage of using the sales comparison
approach to valuation?
a. It depends on sufficient amounts of accurate sales data.
b. It requires accurate adjustments.
c. It's accurate if transactions are arms' length.
d. It shows what the market is doing.. Answer: d. It shows what the
market is doing.
⩥ Carl is a builder who is in the process of obtaining permits for a new
project. Along with the specifications, he must submit a copy of the
building plan, which is also known as a ______.
a. Blueprint
b. Building drawing
ACTUAL EXAM PAPER 2026 200+
QUESTIONS AND ANSWERS GRADED A+
⩥ Martin placed all of his real estate investments in a trust, and the
proceeds are distributed through the trust to his son Nathan. Martin still
manages the properties indirectly, and Nathan currently benefits, as he's
past the required beneficiary age of 18. What type of trust is this?
a. Indirect trust
b. Living trust
c. Probate trust
d. Testamentary trust
**Because Martin is still living, this is a living trust. Answer: b. Living
trust
⩥ When using the sales comparison approach to value, what might it
mean if there's a large total adjustment needed for a comparable
property?
a. The comparable is much less valuable than the subject property.
b. The comparable is much more valuable than the subject property.
,c. The comparable is nearly identical to the subject property.
d. The property may not be a reliable comparable for the subject
property.. Answer: d. The property may not be a reliable comparable for
the subject property.
⩥ Which of the following land valuation methods uses this formula:
Income ÷ capitalization rate = value?
a. The abstraction method
b. The allocation method
c. The ground rent capitalization method
d. The sales comparison method. Answer: c. The ground rent
capitalization method
⩥ Which of the following is a true statement about building codes?
a. If there is no local code to cover a situation, no code applies.
b. Local codes address situations not addressed at the federal or state
level.
c. Local codes can change state codes.
d. Local codes don't have to comply with federal codes.. Answer: b.
Local codes address situations not addressed at the federal or state level.
,⩥ Which of the following reports involves the most rigorous process for
establishing a property's market value?
a. BPO
b. CMA
c. Formal appraisal
d. Value history review. Answer: c. Formal appraisal
⩥ Siblings Julia and Gene are co-owners of a small retail building in
which a tanning salon is currently operating. Gene really wants to leave
his ownership interest to his son when he dies, but the way in which they
own the property doesn't allow him to do so. What type of ownership do
they have?
a. Joint tenancy
b. Tenancy by the entirety
c. Tenancy in common
d. Tenancy in severalty
**Joint tenancy does not include the right of inheritance; ownership
interest passes to the remaining tenants once a tenant dies.. Answer: a.
Joint tenancy
, ⩥ Mary is driving through a neighborhood where she's considering
moving. She loves these homes because their exterior is a combination
of stone and stucco. What part of the wall is she looking at?
a. Fascia
b. Flashing
c. Sheathing
d. Siding. Answer: d. Siding
⩥ Which of the following is an advantage of using the sales comparison
approach to valuation?
a. It depends on sufficient amounts of accurate sales data.
b. It requires accurate adjustments.
c. It's accurate if transactions are arms' length.
d. It shows what the market is doing.. Answer: d. It shows what the
market is doing.
⩥ Carl is a builder who is in the process of obtaining permits for a new
project. Along with the specifications, he must submit a copy of the
building plan, which is also known as a ______.
a. Blueprint
b. Building drawing
