TEXAS PRINCIPLES OF REAL ESTATE 1 AND II FINAL LATEST
ACTUAL EXAM QUESTIONS AND CORRECT DETAILED ANSWERS
Another way for a property owner to protect his or her ownership rights against an
adverse possessor is to allow permissive use through a:
trust.
mortgage.
license.
title transfer. - ANSWER: C
The Texas Department of Insurance promulgates the Texas title insurance forms for
use in residential transactions. The title insurance policies available for residential
transactions in Texas to protect the interests of owners and lenders are all of the
following, except the:
Owner Policy (Form T-1)
Residential Owner Policy (T-1R)
Loan Policy (T-2)
Title Assurance Policy (T-3) - ANSWER: D
The Texas Department of Insurance promulgates the Texas title insurance forms.
Title insurance companies in the state of Texas must use these forms when
preparing and issuing policies. The policies available for residential transactions in
Texas are the Owner Policy (Form T-1), the Residential Owner Policy (T-1R) (if the
insured is a natural person), and the Loan Policy (T-2).
Roof types are determined by all of the following, except:
direction of the roof planes.
steepness of the roof planes.
roofing materials.
number of roof the planes. - ANSWER: C
A licensee should know the most desirable roof pitches and be able to distinguish a
hip roof from a gable roof. Roof types are determined by the direction, steepness,
and number of roof planes. The pitch of a roof is how steep it is. The steeper the
pitch of a roof, the longer its life expectancy.
Which of the following is not true regarding the inception of the National
Environmental Policy Act (NEPA)?
It was the first law to require that the environmental effects of public decisions be
considered.
It was signed into law by President Richard Nixon on January 1, 1970.
, It required federal agencies undertaking activities on federal property to conduct an
environmental analysis of the proposed project.
NEPA changed how local government agencies make decisions. - ANSWER: D
Under the federal Interstate Land Sales Full Disclosure Act (ILSA), purchasers have a
statutory right that runs for _____ years from the date the purchase contract is
executed by the purchaser.
2
3
4
5 - ANSWER: 2
In the event of foreclosure, FHA-approved lenders are protected by charging the
borrower a fee for an insurance policy called:
Mutual Mortgage Insurance.
Residential Insurance.
Property Insurance.
Hazard Insurance. - ANSWER: A
To qualify for a USDA loan, a borrower must have a(n) __________ that does not
exceed the __________.
adjusted annual household income; established moderate-income limit
moderate-income limit; annual household income
salary; adjusted annual household income
none of the choices apply - ANSWER: A
After obtaining the Certificate of Reasonable Value, the Certificate of Eligibility is
annotated to show how much of the __________ has been used.
entitlement
lump sum
loan
none of the choices apply - ANSWER: A
The Certificate of Eligibility is annotated to show how much of the entitlement has
been used and will be returned to the veteran.
The type of mortgage product, such as an adjustable-rate mortgage, that allows
borrowers to qualify for larger loans is called a:
nontraditional mortgage.
traditional mortgage.
simple mortgage.
ACTUAL EXAM QUESTIONS AND CORRECT DETAILED ANSWERS
Another way for a property owner to protect his or her ownership rights against an
adverse possessor is to allow permissive use through a:
trust.
mortgage.
license.
title transfer. - ANSWER: C
The Texas Department of Insurance promulgates the Texas title insurance forms for
use in residential transactions. The title insurance policies available for residential
transactions in Texas to protect the interests of owners and lenders are all of the
following, except the:
Owner Policy (Form T-1)
Residential Owner Policy (T-1R)
Loan Policy (T-2)
Title Assurance Policy (T-3) - ANSWER: D
The Texas Department of Insurance promulgates the Texas title insurance forms.
Title insurance companies in the state of Texas must use these forms when
preparing and issuing policies. The policies available for residential transactions in
Texas are the Owner Policy (Form T-1), the Residential Owner Policy (T-1R) (if the
insured is a natural person), and the Loan Policy (T-2).
Roof types are determined by all of the following, except:
direction of the roof planes.
steepness of the roof planes.
roofing materials.
number of roof the planes. - ANSWER: C
A licensee should know the most desirable roof pitches and be able to distinguish a
hip roof from a gable roof. Roof types are determined by the direction, steepness,
and number of roof planes. The pitch of a roof is how steep it is. The steeper the
pitch of a roof, the longer its life expectancy.
Which of the following is not true regarding the inception of the National
Environmental Policy Act (NEPA)?
It was the first law to require that the environmental effects of public decisions be
considered.
It was signed into law by President Richard Nixon on January 1, 1970.
, It required federal agencies undertaking activities on federal property to conduct an
environmental analysis of the proposed project.
NEPA changed how local government agencies make decisions. - ANSWER: D
Under the federal Interstate Land Sales Full Disclosure Act (ILSA), purchasers have a
statutory right that runs for _____ years from the date the purchase contract is
executed by the purchaser.
2
3
4
5 - ANSWER: 2
In the event of foreclosure, FHA-approved lenders are protected by charging the
borrower a fee for an insurance policy called:
Mutual Mortgage Insurance.
Residential Insurance.
Property Insurance.
Hazard Insurance. - ANSWER: A
To qualify for a USDA loan, a borrower must have a(n) __________ that does not
exceed the __________.
adjusted annual household income; established moderate-income limit
moderate-income limit; annual household income
salary; adjusted annual household income
none of the choices apply - ANSWER: A
After obtaining the Certificate of Reasonable Value, the Certificate of Eligibility is
annotated to show how much of the __________ has been used.
entitlement
lump sum
loan
none of the choices apply - ANSWER: A
The Certificate of Eligibility is annotated to show how much of the entitlement has
been used and will be returned to the veteran.
The type of mortgage product, such as an adjustable-rate mortgage, that allows
borrowers to qualify for larger loans is called a:
nontraditional mortgage.
traditional mortgage.
simple mortgage.
