TEXAS PRINCIPLES OF REAL ESTATE II FINAL EXAM 2024 :
COMPREHENSIVE QUESTIONS & ANSWERS: LATEST UPDATED
:COMPLETE VERSION A+ GRADE ASSURED
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? - (correct 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: - (correct answer) green initiatives
Which of the following borrowers would be MOST likely to use a graduated-payment
mortgage? - (correct answer) young borrower starting their career, anticipating an
income raise in the next several years
Which type of loan is exempt from RESPA? - (correct answer) loans on vacant land
Which TILA regulation requires a disclosure statement where lenders must make
certain loan facts known to borrowers? - (correct answer) Regulation Z
The most common formal organization of a syndicate is that of a(n): - (correct
answer) LLC
Which of the following BEST describes why RESPA was passed? - (correct 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: - (correct answer) corrective maintenance
Which of the following is TRUE? - (correct 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: -
(correct 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? - (correct 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.
What is the difference between actual and constructive notice? - (correct answer)
Constructive notice is the assumption that a diligent individual can search the public
record to gain knowledge; actual notice is direct or first-hand knowledge.
, The investment strategy of taking on debt in order to realize a greater return is known
as: - (correct answer) Leverage
What is an easement by prescription? - (correct answer) An easement by
prescription is granted after the dominant estate has used the property in a hostile,
continuous, and open manner for a statutorily prescribed number of years. This type of
easement is also called a prescriptive easement.
A new $350,000 home is being built in a neighborhood of mostly $200,000 homes.
Although the home has many updates and is in better condition than the surrounding
houses, its value is significantly less than the price.
Which value principle of appraisal explains this? - (correct answer) principle of
regression, which states that a subject property situated in the midst of lower-value
homes will experience a downward pull on its own value.
What is investment gain? - (correct answer) Investment gain has to do with the
increase in a property's value due to active and purposeful development of a property.
How many feet are in a mile? - (correct answer) 5,280 feet
What is a quitclaim deed? - (correct answer) A quitclaim deed provides the grantee
with the least protection of any deed, while putting the least liability on the grantor. It
carries no covenants nor warranties and conveys only such interest that the grantor
may have when the deed is delivered.
Alexis owns a fried chicken restaurant, Tender Times. When her area is rezoned from
commercial to residential, Alexis is allowed to continue operating Tender Times in the
same location.
What is this an example of? - (correct answer) While the use of the property
originally conformed to zoning, that was no longer the case once the rezoning took
place. So the present (commercial) use would be considered a nonconforming use,
which is where a once-permissible-but-no-longer-permitted use is grandfathered in.
Who is the representative of the title insurance company who reviews the title
insurance commitment, prepares the Closing Disclosure, and conducts the closing? -
(correct answer) closing agent
Which of these scenarios would be most likely to result in the granting of a
conditional-use permit? - (correct 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.
COMPREHENSIVE QUESTIONS & ANSWERS: LATEST UPDATED
:COMPLETE VERSION A+ GRADE ASSURED
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? - (correct 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: - (correct answer) green initiatives
Which of the following borrowers would be MOST likely to use a graduated-payment
mortgage? - (correct answer) young borrower starting their career, anticipating an
income raise in the next several years
Which type of loan is exempt from RESPA? - (correct answer) loans on vacant land
Which TILA regulation requires a disclosure statement where lenders must make
certain loan facts known to borrowers? - (correct answer) Regulation Z
The most common formal organization of a syndicate is that of a(n): - (correct
answer) LLC
Which of the following BEST describes why RESPA was passed? - (correct 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: - (correct answer) corrective maintenance
Which of the following is TRUE? - (correct 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: -
(correct 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? - (correct 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.
What is the difference between actual and constructive notice? - (correct answer)
Constructive notice is the assumption that a diligent individual can search the public
record to gain knowledge; actual notice is direct or first-hand knowledge.
, The investment strategy of taking on debt in order to realize a greater return is known
as: - (correct answer) Leverage
What is an easement by prescription? - (correct answer) An easement by
prescription is granted after the dominant estate has used the property in a hostile,
continuous, and open manner for a statutorily prescribed number of years. This type of
easement is also called a prescriptive easement.
A new $350,000 home is being built in a neighborhood of mostly $200,000 homes.
Although the home has many updates and is in better condition than the surrounding
houses, its value is significantly less than the price.
Which value principle of appraisal explains this? - (correct answer) principle of
regression, which states that a subject property situated in the midst of lower-value
homes will experience a downward pull on its own value.
What is investment gain? - (correct answer) Investment gain has to do with the
increase in a property's value due to active and purposeful development of a property.
How many feet are in a mile? - (correct answer) 5,280 feet
What is a quitclaim deed? - (correct answer) A quitclaim deed provides the grantee
with the least protection of any deed, while putting the least liability on the grantor. It
carries no covenants nor warranties and conveys only such interest that the grantor
may have when the deed is delivered.
Alexis owns a fried chicken restaurant, Tender Times. When her area is rezoned from
commercial to residential, Alexis is allowed to continue operating Tender Times in the
same location.
What is this an example of? - (correct answer) While the use of the property
originally conformed to zoning, that was no longer the case once the rezoning took
place. So the present (commercial) use would be considered a nonconforming use,
which is where a once-permissible-but-no-longer-permitted use is grandfathered in.
Who is the representative of the title insurance company who reviews the title
insurance commitment, prepares the Closing Disclosure, and conducts the closing? -
(correct answer) closing agent
Which of these scenarios would be most likely to result in the granting of a
conditional-use permit? - (correct 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.
