TEXAS REAL ESTATE NATIONAL EXAM QUESTIONS
WITH VERIFIED SOLUTIONS/A+ GRADE
An assessment is a special type of appraisal used for
A.) Property tax purposes.
B.) Estate tax returns.
C.) Divorce settlements.
D.) Income tax returns. - ANSWER: A. property tax purposes
A company who provided materials for an owner to remodel their property may give
constructive notice of their unpaid invoices by:
A.) obtain a blanket lien
B.) obtain a mechanic's or material man's lien
C.) obtain a vendor's lien
D.) obtain an inchoate lien - ANSWER: B. obtain a mechanic's or material man's lien
The value of land can be greatly influenced by improvements made to surrounding
parcels of land. This characteristic is called? - ANSWER: modification
Which of these would the seller sign at closing
A.) The mortgage
B.) The Promissory note
C.) The deed of trust
D.) The property deed - ANSWER: D. the property deed
Regarding a land contract, which of the following is a true statement?
A.) A buyer is given legal ownership and title when the contract is signed.
B.) A buyer is given the right to possession.
C.) A land contract is the best means to purchase a property.
D.) The seller forfeits legal title until the contract is honored. - ANSWER: B. a buyer is
given the right to possession
RESPA prohibits,
A.) Use of the HUD settlement statement
B.) Owner refinance
C.) Fees for services not actually performed during the closing process
D.) The buyer from selecting their own title insurance company - ANSWER: C. fees for
services not actually performed during the closing process
The definition of real property includes all except which of the following
A.) Air rights
B.) Surface rights
C.) Chattels
D.) Subsurface rights - ANSWER: C. chattels
The appraisal principle of substitution states that
,A.) Some improvements have a larger payoff in increased value than others.
B.) The buyer is paying for expected benefits in the future.
C.) No one will pay more if something equally desirable is available for less.
D.) Maximum value is reached where there is reasonable uniformity in the
neighborhood. - ANSWER: C. no one will pay more if something equally desirable is
available for less
Market data approach appraising may require adjustments of sold comparables by
an appraiser for all of the following EXCEPT
A.) Replacement cost of structure.
B.) financing made available by seller.
C.) Lot size and location
D.) Sale date of comparable - ANSWER: A. replacement cost of structure
The term "Commingling" refers to
A.) One office finding a buyer for another office's listing.
B.) The same office acting as buyer's broker and seller's broker for the same
property.
C.) Looking for real estate business at community social events.
D.) Mixing funds held for other persons with one's own money. - ANSWER: D. mixing
funds held for other persons with one's own money
When evaluating the data in a neighborhood analysis, a residential property
manager will be LEAST concerned with:
A.) Opportunity for expansion
B.) Special utility services
C.) Traffic counts
D.) Trends in population composition - ANSWER: B. special utility services
Title Insurance protects the owner or lender against unexpected claims arising from
past.
A.) Zoning ordinances.
B.) Recorded Easements.
C.) Forged documents.
D.) Unpaid property taxes. - ANSWER: C. forged documents
An abstract of title contains
A.) An Attorney's opinion of title.
B.) A quiet title lawsuit.
C.) The summary of a title search.
D.) A registrar's certificate of title. - ANSWER: C. the summary of a title search
When is a salesperson allowed to do an appraisal
A.) if their fee is under 1% of the value
B.) if the value is over $250,000
C.) Never
D.) if the loan is FHA insured - ANSWER: C. never
, An example of government influence on the real estate economy is:
A.) Tax rates
B.) interest rates
C.) local building codes
D.) all of the above - ANSWER: D. all the above
The percentage the lender will loan in relationship to the appraised value of the
property is called:
A.) loan-to-value ratio
B.) insured ratio
C.) market ratio
D.) adjustable ratio - ANSWER: A. loan-to-value ratio
Value is best defined as
A.) The highest price that a property will bring.
B.) Capital outlay for land, labor, materials and profits.
C.) A measure of the present worth of future benefits as perceived by each person.
D.) The amount a buyer agrees to pay and a seller agrees to accept. - ANSWER: C. a
measure of the present worth of future benefits as perceived by each person
A metes and bounds survey also starts at the "point of beginning" and ends at the:
A.) The last benchmark
B.) Monument
C.) Point of beginning
D.) Datum - ANSWER: C. point of beginning
The legal remedy in many sales contracts which allows the non-defaulting party to
force the sale is
A.) Punitive damages.
B.) Earnest money.
C.) Bilateral promises.
D.) Specific performance. - ANSWER: d. specific performance
When a contract contains provisions outlining what money penalties will be levied
against the party that refuses to perform, the amount specified is known as
A.) Consideration.
B.) Liquidated damages.
C.) Earnest money.
D.) Specific performance. - ANSWER: B. liquidated damages
What is the seller's evidence of title
A.) Mortgage information letter
B.) Title insurance policy
C.) Mortgagee insurance premium
D.) Mortgagee's title policy - ANSWER: B. title insurance policy
WITH VERIFIED SOLUTIONS/A+ GRADE
An assessment is a special type of appraisal used for
A.) Property tax purposes.
B.) Estate tax returns.
C.) Divorce settlements.
D.) Income tax returns. - ANSWER: A. property tax purposes
A company who provided materials for an owner to remodel their property may give
constructive notice of their unpaid invoices by:
A.) obtain a blanket lien
B.) obtain a mechanic's or material man's lien
C.) obtain a vendor's lien
D.) obtain an inchoate lien - ANSWER: B. obtain a mechanic's or material man's lien
The value of land can be greatly influenced by improvements made to surrounding
parcels of land. This characteristic is called? - ANSWER: modification
Which of these would the seller sign at closing
A.) The mortgage
B.) The Promissory note
C.) The deed of trust
D.) The property deed - ANSWER: D. the property deed
Regarding a land contract, which of the following is a true statement?
A.) A buyer is given legal ownership and title when the contract is signed.
B.) A buyer is given the right to possession.
C.) A land contract is the best means to purchase a property.
D.) The seller forfeits legal title until the contract is honored. - ANSWER: B. a buyer is
given the right to possession
RESPA prohibits,
A.) Use of the HUD settlement statement
B.) Owner refinance
C.) Fees for services not actually performed during the closing process
D.) The buyer from selecting their own title insurance company - ANSWER: C. fees for
services not actually performed during the closing process
The definition of real property includes all except which of the following
A.) Air rights
B.) Surface rights
C.) Chattels
D.) Subsurface rights - ANSWER: C. chattels
The appraisal principle of substitution states that
,A.) Some improvements have a larger payoff in increased value than others.
B.) The buyer is paying for expected benefits in the future.
C.) No one will pay more if something equally desirable is available for less.
D.) Maximum value is reached where there is reasonable uniformity in the
neighborhood. - ANSWER: C. no one will pay more if something equally desirable is
available for less
Market data approach appraising may require adjustments of sold comparables by
an appraiser for all of the following EXCEPT
A.) Replacement cost of structure.
B.) financing made available by seller.
C.) Lot size and location
D.) Sale date of comparable - ANSWER: A. replacement cost of structure
The term "Commingling" refers to
A.) One office finding a buyer for another office's listing.
B.) The same office acting as buyer's broker and seller's broker for the same
property.
C.) Looking for real estate business at community social events.
D.) Mixing funds held for other persons with one's own money. - ANSWER: D. mixing
funds held for other persons with one's own money
When evaluating the data in a neighborhood analysis, a residential property
manager will be LEAST concerned with:
A.) Opportunity for expansion
B.) Special utility services
C.) Traffic counts
D.) Trends in population composition - ANSWER: B. special utility services
Title Insurance protects the owner or lender against unexpected claims arising from
past.
A.) Zoning ordinances.
B.) Recorded Easements.
C.) Forged documents.
D.) Unpaid property taxes. - ANSWER: C. forged documents
An abstract of title contains
A.) An Attorney's opinion of title.
B.) A quiet title lawsuit.
C.) The summary of a title search.
D.) A registrar's certificate of title. - ANSWER: C. the summary of a title search
When is a salesperson allowed to do an appraisal
A.) if their fee is under 1% of the value
B.) if the value is over $250,000
C.) Never
D.) if the loan is FHA insured - ANSWER: C. never
, An example of government influence on the real estate economy is:
A.) Tax rates
B.) interest rates
C.) local building codes
D.) all of the above - ANSWER: D. all the above
The percentage the lender will loan in relationship to the appraised value of the
property is called:
A.) loan-to-value ratio
B.) insured ratio
C.) market ratio
D.) adjustable ratio - ANSWER: A. loan-to-value ratio
Value is best defined as
A.) The highest price that a property will bring.
B.) Capital outlay for land, labor, materials and profits.
C.) A measure of the present worth of future benefits as perceived by each person.
D.) The amount a buyer agrees to pay and a seller agrees to accept. - ANSWER: C. a
measure of the present worth of future benefits as perceived by each person
A metes and bounds survey also starts at the "point of beginning" and ends at the:
A.) The last benchmark
B.) Monument
C.) Point of beginning
D.) Datum - ANSWER: C. point of beginning
The legal remedy in many sales contracts which allows the non-defaulting party to
force the sale is
A.) Punitive damages.
B.) Earnest money.
C.) Bilateral promises.
D.) Specific performance. - ANSWER: d. specific performance
When a contract contains provisions outlining what money penalties will be levied
against the party that refuses to perform, the amount specified is known as
A.) Consideration.
B.) Liquidated damages.
C.) Earnest money.
D.) Specific performance. - ANSWER: B. liquidated damages
What is the seller's evidence of title
A.) Mortgage information letter
B.) Title insurance policy
C.) Mortgagee insurance premium
D.) Mortgagee's title policy - ANSWER: B. title insurance policy
