PRINCIPLES OF REAL ESTATE IIFINAL
EXAM QUESTIONS AND RATIONALES
LATEST UPDATE
Written documents affecting title to real estate are recorded:
A. Where the titleholder resides
B. Where the titleholder has legal residence
C. At the county clerk's office where the property is located
D. At any county clerk's office in Texas - ANSWER- C. At the county clerk's office where
the property is located
Each county in Texas has a county clerk's office and all documents pertaining to
property in that county are recorded in that office.
A person appointed by a court to settle the estate of a deceased person when the
executor cannot
perform or refuses to perform is:
A. Another executor
B. A legatee
C. An administrator
D. A devisee - ANSWER- C. An administrator
Administrators are not named in the will and are court appointed and executors are
named in the will and are court approved.
What is an abstract of title?
A. Title insurance
B. A history of all recorded activity affecting a parcel of real estate
C. A judgment on real property
D. A patent - ANSWER- B. A history of all recorded activity affecting a parcel of real
estate
An abstractor searches the public records for all documents pertaining to the property
and an attorney often writes an opinion of the abstract.
Property managers have a _______________ relationship with the property owner.
A. Partnership
B. Subagency
,C. Binding
D. Fiduciary - ANSWER- D. Fiduciary
The owner is the property manager's client and the tenant is the property manager's
customer.
A chain of title shows the linkage of property ownership that connects the present owner
to the
original source of title. In most cases it starts with:
A. Ownership from 1955
B. Chattel
C. A suit in a federal court
D. The original grant of the land from the government to a private citizen - ANSWER- D.
The original grant of the land from the government to a private citizen
A chain of title is a list of who owned the property, who they sold it to, the date the sale
occurred, and the number of the book and page it was recorded in at the county clerk's
office.
A handwritten will signed by the testator but not witnessed is known as a(n):
A. Nuncupative will
B. Holographic will
C. Oral will
D. Formal will - ANSWER- B. Holographic will
A holographic will is handwritten, dated, and signed by the person making the will. It is
not witnessed and is not recorded. A holographic will is legal in 19 states.
A voluntary gift of private land to the public is known as:
A. Alienation
B. A dedication
C. Reliction
D. Annexation - ANSWER- B. A dedication
A dedication is a gift of private land to the public. An example would be a private owner
who gives land to the city for a park and playground.
The general warranty deed contains:
A. The covenant of seisin
B. The covenant against encumbrances
,C. Both A and B
D. Neither A or B - ANSWER- C. Both A and B
The covenant of seisin means the person conveying the land has the right to convey the
land. A covenant against encumbrances means the property is not encumbered by
anything other than the encumbrances that have been disclosed.
. In order to convey title to real property, a deed must be signed by the:
A. Grantee
B. Grantor
C. Agent
D. Buyer - ANSWER- B. Grantor
B. The deed must be signed by the seller. The grantor is the seller.
. Sam has moved onto a property owned by Fred. Sam is not leasing the property. If
Sam holds
possession of the property for a long period of time, he will own the property through:
A. Adverse possession
B. Eminent domain
C. Foreclosure
D. Erosion - ANSWER- A. Adverse possession
A. There are four statutes of adverse possession. They are the 3-year, 5-year, 10- year,
and the 25-year statutes. The 10 year is the most common and the 25 year is absolute.
The Act passed in 1968 to protect the consumer from land scams is the:
A. Buyers Land Protection Act
B. Interstate Land Sales Full Disclosure Act (ILSFDA or ILSA)
C. Federal Land and Housing Act
D. Texas Public Ownership - ANSWER- B. Interstate Land Sales Full Disclosure Act
(ILSFDA or ILSA)
The Interstate Land Sales Full Disclosure Act was passed in 1968. It is administered by
the Consumer Financial Protection Bureau (CFPB)
The trustee in a deed of trust:
A. Writes the contract for the buyer
B. Shows the property to the buyer
C. Forecloses on the property in the event of default
, D. Collects the monthly payments - ANSWER- C. Forecloses on the property in the
event of default
The trustee in a deed of trust forecloses on the property if the borrower gets behind on
the payments. The trustee also releases the lien when the borrower has completely paid
for the property
. Removing the original borrower's name from the contract and substituting the new
buyers name is called:
A. Novation
B. Substitute
C. Covenants
D. Subdividing - ANSWER- A. Novation
Novation of parties substitutes a new name for the name that was on the contract. A
novation of contracts substitutes a new contract for original contract.
4. The right to redeem the property before a mortgage foreclosure sale is called:
A. Equitable redemption
B. Buyer redemption
C. Statutory redemption
D. This is never used in Texas. - ANSWER- A. Equitable redemption
Equitable redemption is used with a foreclosure for mortgage. Statutory redemption is
used with a property tax sale. The owner of the property sold at a tax sale can redeem
the property from the buyer after the sale.
The right to redeem the property after a tax foreclosure sale is called:
A. Equitable redemption
B. Buyer redemption
C. Statutory redemption
D. Never used in Texas - ANSWER- C. Statutory redemption
Statutory redemption is used after a tax sale. Equitable redemption is used with a
foreclosure for mortgage. The owner of the property must pay all of the late payments
and penalties on the property before the foreclosure to stop the foreclosure for
mortgage.
The Texas Bootstrap Loan Program:
A. Is a self-help housing construction program for very low-income families
EXAM QUESTIONS AND RATIONALES
LATEST UPDATE
Written documents affecting title to real estate are recorded:
A. Where the titleholder resides
B. Where the titleholder has legal residence
C. At the county clerk's office where the property is located
D. At any county clerk's office in Texas - ANSWER- C. At the county clerk's office where
the property is located
Each county in Texas has a county clerk's office and all documents pertaining to
property in that county are recorded in that office.
A person appointed by a court to settle the estate of a deceased person when the
executor cannot
perform or refuses to perform is:
A. Another executor
B. A legatee
C. An administrator
D. A devisee - ANSWER- C. An administrator
Administrators are not named in the will and are court appointed and executors are
named in the will and are court approved.
What is an abstract of title?
A. Title insurance
B. A history of all recorded activity affecting a parcel of real estate
C. A judgment on real property
D. A patent - ANSWER- B. A history of all recorded activity affecting a parcel of real
estate
An abstractor searches the public records for all documents pertaining to the property
and an attorney often writes an opinion of the abstract.
Property managers have a _______________ relationship with the property owner.
A. Partnership
B. Subagency
,C. Binding
D. Fiduciary - ANSWER- D. Fiduciary
The owner is the property manager's client and the tenant is the property manager's
customer.
A chain of title shows the linkage of property ownership that connects the present owner
to the
original source of title. In most cases it starts with:
A. Ownership from 1955
B. Chattel
C. A suit in a federal court
D. The original grant of the land from the government to a private citizen - ANSWER- D.
The original grant of the land from the government to a private citizen
A chain of title is a list of who owned the property, who they sold it to, the date the sale
occurred, and the number of the book and page it was recorded in at the county clerk's
office.
A handwritten will signed by the testator but not witnessed is known as a(n):
A. Nuncupative will
B. Holographic will
C. Oral will
D. Formal will - ANSWER- B. Holographic will
A holographic will is handwritten, dated, and signed by the person making the will. It is
not witnessed and is not recorded. A holographic will is legal in 19 states.
A voluntary gift of private land to the public is known as:
A. Alienation
B. A dedication
C. Reliction
D. Annexation - ANSWER- B. A dedication
A dedication is a gift of private land to the public. An example would be a private owner
who gives land to the city for a park and playground.
The general warranty deed contains:
A. The covenant of seisin
B. The covenant against encumbrances
,C. Both A and B
D. Neither A or B - ANSWER- C. Both A and B
The covenant of seisin means the person conveying the land has the right to convey the
land. A covenant against encumbrances means the property is not encumbered by
anything other than the encumbrances that have been disclosed.
. In order to convey title to real property, a deed must be signed by the:
A. Grantee
B. Grantor
C. Agent
D. Buyer - ANSWER- B. Grantor
B. The deed must be signed by the seller. The grantor is the seller.
. Sam has moved onto a property owned by Fred. Sam is not leasing the property. If
Sam holds
possession of the property for a long period of time, he will own the property through:
A. Adverse possession
B. Eminent domain
C. Foreclosure
D. Erosion - ANSWER- A. Adverse possession
A. There are four statutes of adverse possession. They are the 3-year, 5-year, 10- year,
and the 25-year statutes. The 10 year is the most common and the 25 year is absolute.
The Act passed in 1968 to protect the consumer from land scams is the:
A. Buyers Land Protection Act
B. Interstate Land Sales Full Disclosure Act (ILSFDA or ILSA)
C. Federal Land and Housing Act
D. Texas Public Ownership - ANSWER- B. Interstate Land Sales Full Disclosure Act
(ILSFDA or ILSA)
The Interstate Land Sales Full Disclosure Act was passed in 1968. It is administered by
the Consumer Financial Protection Bureau (CFPB)
The trustee in a deed of trust:
A. Writes the contract for the buyer
B. Shows the property to the buyer
C. Forecloses on the property in the event of default
, D. Collects the monthly payments - ANSWER- C. Forecloses on the property in the
event of default
The trustee in a deed of trust forecloses on the property if the borrower gets behind on
the payments. The trustee also releases the lien when the borrower has completely paid
for the property
. Removing the original borrower's name from the contract and substituting the new
buyers name is called:
A. Novation
B. Substitute
C. Covenants
D. Subdividing - ANSWER- A. Novation
Novation of parties substitutes a new name for the name that was on the contract. A
novation of contracts substitutes a new contract for original contract.
4. The right to redeem the property before a mortgage foreclosure sale is called:
A. Equitable redemption
B. Buyer redemption
C. Statutory redemption
D. This is never used in Texas. - ANSWER- A. Equitable redemption
Equitable redemption is used with a foreclosure for mortgage. Statutory redemption is
used with a property tax sale. The owner of the property sold at a tax sale can redeem
the property from the buyer after the sale.
The right to redeem the property after a tax foreclosure sale is called:
A. Equitable redemption
B. Buyer redemption
C. Statutory redemption
D. Never used in Texas - ANSWER- C. Statutory redemption
Statutory redemption is used after a tax sale. Equitable redemption is used with a
foreclosure for mortgage. The owner of the property must pay all of the late payments
and penalties on the property before the foreclosure to stop the foreclosure for
mortgage.
The Texas Bootstrap Loan Program:
A. Is a self-help housing construction program for very low-income families
