BSRV4601 FUNDAMENTALS OF REAL
ESTATE 2 APPENDIX ACTUAL EXAM PAPER
2026 QUESTIONS WITH ANSWERS
GRADED A+
◍ 80. What does the C stand for in the fiduciary dities.
Answer: Care and confidentiality
◍ 46. What is the source of money for an FHA loan?.
Answer: A qualified lending institution
◍ balloon payment.
Answer: a payment at the end of a loan period which includes the total
outstanding balance of the loan
◍ 49. What is the first step in the appraisal process?.
Answer: Indicate objective of appraisal
◍ 69. Exclusive Right to Sell Listing definition....
Answer: A type of listing to list and sell real estate property in which the
seller employs one broker but that broker earns a commission "no matter
who sells the property including the owner"
◍ principle of progression.
Answer: the idea that the presence of higher-value properties can bump up
the value of a lower-value property
◍ 6. What is the salespersons obligation to a buyer under single agency
listing?.
Answer: Inform the buyer
◍ Federal Deposit Insurance Corporation (FDIC).
, Answer: independent agency that provides deposit insurance to depositors in
U.S. banks
◍ 28. Purchase money order is a debit to the....
Answer: Debit to the SELLER (It's a loan in which the seller provides
financing to help buyer)
◍ after-tax cash flow.
Answer: a financial performance measure that reflects a property's ability to
generate positive cash flow
◍ 66. Physical deterioration....
Answer: associated with normal wear and tear.
◍ 17. Who determines the commission in a listing contract?.
Answer: An agreement between the owner and broker
◍ net lease.
Answer: lease in which the (usually commercial) tenant pays a base rent rate
plus property taxes
◍ 29. Balloon Mortgage definition....
Answer: A mortgage with a balloon payment
◍ 90. What is a mortgage that will not fully amortize the loan?.
Answer: Balloon Mortgage
◍ 71. Definition of appraisal....
Answer: supportable estimate of value
◍ secondary mortgage market.
Answer: the environment in which mortgage lenders sell home loans they
originate to government agencies or investment bankers
◍ 63. Fiduciary responsibility in a property management contract is to the.
Answer: lessor
◍ condemnation.
Answer: the governmental act of seizing private land through exercise of
, power of eminent domain
◍ 50. What is an example of external depreciation?.
Answer: Nearby property that suffers from lack of maintenance and is
negatively affecting the sellers property.
◍ escheat.
Answer: the legal doctrine by which the decedent's property will pass to the
state without their consent if that individual dies without a will, a surviving
spouse, lineal descendants, or other known heirs
◍ 68. Proper listing price of the property....
Answer: based on seller
◍ 78. What are the conditions to when an agreement of sale becomes a binding
contract?.
Answer: When the buyer accepts the offer and the seller is notified.
◍ 82. Selling agent represents who in a single agency listing agreement?
(Scenario Question).
Answer: Dangerfield represents Crawford
◍ 27. All are examples of single agency disclosures with the exception of.
Answer: revealing the owner will except less.
◍ 22. What is the purpose of RESPA?.
Answer: to to provide disclosure of closing cost info.
◍ residential rental locator.
Answer: a residential rental locator works as an independent contractor to
match landlords and tenants, and must be licensed by the Texas Real Estate
Commission (TREC); also known as a leasing agent or leasing consultant
◍ chain of title.
Answer: the entire record of a property's ownership
◍ 40. Typically who pays for title insurance?.
Answer: Buyer
, ◍ servient tenement.
Answer: describes the parcel of land that must allow an adjacent owner to
cross; an easement appurtenant exists at the expense of this party
◍ fee simple defeasible.
Answer: a property interest characterized by perpetual ownership on the
condition that the property is used for a certain purpose or under specific
conditions; ownership reverts back to the original owner if these stipulations
are violated
◍ 98. What is the max profit a married couple can take on capital gain?.
Answer: 500k
◍ 70. What type of property would be most appropriate to use the cost
approach method?.
Answer: 25 year old church
◍ recording.
Answer: the placing of documents about the claims and ownership of real
estate in the county clerk's office at the courthouse
◍ Closing Disclosure.
Answer: also known as the closing statement, it is a form used to itemize
services and fees charged to the borrower by the lender when applying for a
real estate loan
◍ legatee.
Answer: the person receiving a gift of personal property
◍ zoning ordinance.
Answer: the division of land within a jurisdiction into separate districts
within which uses are permitted, prohibited, or permitted with conditions
◍ wraparound mortgage.
Answer: like a bridge loan, enables a borrower to obtain additional financing
from a second lender without paying off the first loan - gives borrower new,
increased rate at higher interest rate and assumes payment of existing loan
ESTATE 2 APPENDIX ACTUAL EXAM PAPER
2026 QUESTIONS WITH ANSWERS
GRADED A+
◍ 80. What does the C stand for in the fiduciary dities.
Answer: Care and confidentiality
◍ 46. What is the source of money for an FHA loan?.
Answer: A qualified lending institution
◍ balloon payment.
Answer: a payment at the end of a loan period which includes the total
outstanding balance of the loan
◍ 49. What is the first step in the appraisal process?.
Answer: Indicate objective of appraisal
◍ 69. Exclusive Right to Sell Listing definition....
Answer: A type of listing to list and sell real estate property in which the
seller employs one broker but that broker earns a commission "no matter
who sells the property including the owner"
◍ principle of progression.
Answer: the idea that the presence of higher-value properties can bump up
the value of a lower-value property
◍ 6. What is the salespersons obligation to a buyer under single agency
listing?.
Answer: Inform the buyer
◍ Federal Deposit Insurance Corporation (FDIC).
, Answer: independent agency that provides deposit insurance to depositors in
U.S. banks
◍ 28. Purchase money order is a debit to the....
Answer: Debit to the SELLER (It's a loan in which the seller provides
financing to help buyer)
◍ after-tax cash flow.
Answer: a financial performance measure that reflects a property's ability to
generate positive cash flow
◍ 66. Physical deterioration....
Answer: associated with normal wear and tear.
◍ 17. Who determines the commission in a listing contract?.
Answer: An agreement between the owner and broker
◍ net lease.
Answer: lease in which the (usually commercial) tenant pays a base rent rate
plus property taxes
◍ 29. Balloon Mortgage definition....
Answer: A mortgage with a balloon payment
◍ 90. What is a mortgage that will not fully amortize the loan?.
Answer: Balloon Mortgage
◍ 71. Definition of appraisal....
Answer: supportable estimate of value
◍ secondary mortgage market.
Answer: the environment in which mortgage lenders sell home loans they
originate to government agencies or investment bankers
◍ 63. Fiduciary responsibility in a property management contract is to the.
Answer: lessor
◍ condemnation.
Answer: the governmental act of seizing private land through exercise of
, power of eminent domain
◍ 50. What is an example of external depreciation?.
Answer: Nearby property that suffers from lack of maintenance and is
negatively affecting the sellers property.
◍ escheat.
Answer: the legal doctrine by which the decedent's property will pass to the
state without their consent if that individual dies without a will, a surviving
spouse, lineal descendants, or other known heirs
◍ 68. Proper listing price of the property....
Answer: based on seller
◍ 78. What are the conditions to when an agreement of sale becomes a binding
contract?.
Answer: When the buyer accepts the offer and the seller is notified.
◍ 82. Selling agent represents who in a single agency listing agreement?
(Scenario Question).
Answer: Dangerfield represents Crawford
◍ 27. All are examples of single agency disclosures with the exception of.
Answer: revealing the owner will except less.
◍ 22. What is the purpose of RESPA?.
Answer: to to provide disclosure of closing cost info.
◍ residential rental locator.
Answer: a residential rental locator works as an independent contractor to
match landlords and tenants, and must be licensed by the Texas Real Estate
Commission (TREC); also known as a leasing agent or leasing consultant
◍ chain of title.
Answer: the entire record of a property's ownership
◍ 40. Typically who pays for title insurance?.
Answer: Buyer
, ◍ servient tenement.
Answer: describes the parcel of land that must allow an adjacent owner to
cross; an easement appurtenant exists at the expense of this party
◍ fee simple defeasible.
Answer: a property interest characterized by perpetual ownership on the
condition that the property is used for a certain purpose or under specific
conditions; ownership reverts back to the original owner if these stipulations
are violated
◍ 98. What is the max profit a married couple can take on capital gain?.
Answer: 500k
◍ 70. What type of property would be most appropriate to use the cost
approach method?.
Answer: 25 year old church
◍ recording.
Answer: the placing of documents about the claims and ownership of real
estate in the county clerk's office at the courthouse
◍ Closing Disclosure.
Answer: also known as the closing statement, it is a form used to itemize
services and fees charged to the borrower by the lender when applying for a
real estate loan
◍ legatee.
Answer: the person receiving a gift of personal property
◍ zoning ordinance.
Answer: the division of land within a jurisdiction into separate districts
within which uses are permitted, prohibited, or permitted with conditions
◍ wraparound mortgage.
Answer: like a bridge loan, enables a borrower to obtain additional financing
from a second lender without paying off the first loan - gives borrower new,
increased rate at higher interest rate and assumes payment of existing loan
