TEXAS SAE REAL ESTATE INVESTMENT 2 LATEST
VERSIONS (VERSIONS A & B) ACTUAL EXAM REAL
EXAM QUESTIONS AND CORRECT DETAILED
ANSWERS
Place Lender-aquired insurance on the property and bill the borrower - <<ANSWER>>If
a borrower fails to keep homeowners insurance of the collateral property, what actions
can the lender take?
Mutual Agreement - <<ANSWER>>Leases my be terminated by expiration, eviction or
______?
Market Change - <<ANSWER>>is a dynamic risk
Contract for deed - <<ANSWER>>A means by which the seller passes possession but
retains title to the property until the total or a substantial portion of the purchase price is
paid. Installment contract. The two parties here are the vendor (owner) and the vendee
(buyer).
competition - <<ANSWER>>Prices go down because there are too many homes on the
market and too few buyers. Supply and demand
Multi-Family Residential - <<ANSWER>>Two or more dwelling units
Transfer of ownership before death and avoids probate - <<ANSWER>>A living trust
differs from a testmentary trust in that a living trust is established to convey property as
well as to __________________________
It assures tenants they won't be evicted if they adhere to lease terms -
<<ANSWER>>What is the purpose of the non disturbance clause in a lease.
National Department stores and locally prominent supermarkets - <<ANSWER>>Which
types of stores are usually the magnet stores for a community shopping center.
1031 Exchange - <<ANSWER>>"under Internal Revenue Code section 1031, a tax-
deferred exchange of "like kind" properties."
- 45 days to identify a new property
, - 180 days to close on a new property
ethical behavior - <<ANSWER>>A habit in which you should expect to see in a
successful real estate investor
Insured Value - <<ANSWER>>Replacement cost under an insurance policy
Investment Value - <<ANSWER>>The value of the property to a particular investor,
based on his or her specific requirements, discount rate, expectations, and so on.
Mortgage Value - <<ANSWER>>The value of an asset for purposes of securing a
mortgage loan.
Value in Use - <<ANSWER>>The value that a user expects to get from the use of an
asset.
10 Years - <<ANSWER>>maximum term of a grantor retained income trust
PILOT (Property in Lieu of Tax) Programs - <<ANSWER>>Reimburse municipalities for
lost property tax revenues
Interstate Land Sales Full Disclosure Act (ILSA) - <<ANSWER>>to prevent fraudulent
marketing schemes that may arise when land is sold without being seen by the
purchasers
rent - <<ANSWER>>What does the Leasee give as consideration in a valid lease
contract
Partially Amortized Mortgage - <<ANSWER>>The buyer makes regular payments
smaller than what is required to completely pay off the loan (payments do not fully
amortize the loan) resulting in a larger balloon payment to pay off the remaining amount
due.
Trustee - <<ANSWER>>In a trust, the person who makes sure the terms of the trust are
carried out
Survey - <<ANSWER>>Used to verify, clarify, correct or create an accurate legal
description of land
Principle of Progression - <<ANSWER>>That a lower value property gets a bump in
value by being near a higher value property
591,825 - <<ANSWER>>average gross leasable square feet for a regional shopping
center
Real Estate - <<ANSWER>>type of asset held in a land trust
VERSIONS (VERSIONS A & B) ACTUAL EXAM REAL
EXAM QUESTIONS AND CORRECT DETAILED
ANSWERS
Place Lender-aquired insurance on the property and bill the borrower - <<ANSWER>>If
a borrower fails to keep homeowners insurance of the collateral property, what actions
can the lender take?
Mutual Agreement - <<ANSWER>>Leases my be terminated by expiration, eviction or
______?
Market Change - <<ANSWER>>is a dynamic risk
Contract for deed - <<ANSWER>>A means by which the seller passes possession but
retains title to the property until the total or a substantial portion of the purchase price is
paid. Installment contract. The two parties here are the vendor (owner) and the vendee
(buyer).
competition - <<ANSWER>>Prices go down because there are too many homes on the
market and too few buyers. Supply and demand
Multi-Family Residential - <<ANSWER>>Two or more dwelling units
Transfer of ownership before death and avoids probate - <<ANSWER>>A living trust
differs from a testmentary trust in that a living trust is established to convey property as
well as to __________________________
It assures tenants they won't be evicted if they adhere to lease terms -
<<ANSWER>>What is the purpose of the non disturbance clause in a lease.
National Department stores and locally prominent supermarkets - <<ANSWER>>Which
types of stores are usually the magnet stores for a community shopping center.
1031 Exchange - <<ANSWER>>"under Internal Revenue Code section 1031, a tax-
deferred exchange of "like kind" properties."
- 45 days to identify a new property
, - 180 days to close on a new property
ethical behavior - <<ANSWER>>A habit in which you should expect to see in a
successful real estate investor
Insured Value - <<ANSWER>>Replacement cost under an insurance policy
Investment Value - <<ANSWER>>The value of the property to a particular investor,
based on his or her specific requirements, discount rate, expectations, and so on.
Mortgage Value - <<ANSWER>>The value of an asset for purposes of securing a
mortgage loan.
Value in Use - <<ANSWER>>The value that a user expects to get from the use of an
asset.
10 Years - <<ANSWER>>maximum term of a grantor retained income trust
PILOT (Property in Lieu of Tax) Programs - <<ANSWER>>Reimburse municipalities for
lost property tax revenues
Interstate Land Sales Full Disclosure Act (ILSA) - <<ANSWER>>to prevent fraudulent
marketing schemes that may arise when land is sold without being seen by the
purchasers
rent - <<ANSWER>>What does the Leasee give as consideration in a valid lease
contract
Partially Amortized Mortgage - <<ANSWER>>The buyer makes regular payments
smaller than what is required to completely pay off the loan (payments do not fully
amortize the loan) resulting in a larger balloon payment to pay off the remaining amount
due.
Trustee - <<ANSWER>>In a trust, the person who makes sure the terms of the trust are
carried out
Survey - <<ANSWER>>Used to verify, clarify, correct or create an accurate legal
description of land
Principle of Progression - <<ANSWER>>That a lower value property gets a bump in
value by being near a higher value property
591,825 - <<ANSWER>>average gross leasable square feet for a regional shopping
center
Real Estate - <<ANSWER>>type of asset held in a land trust
