TEXAS SAE REAL ESTATE INVESTMENT 2 LATEST VERSIONS (VERSIONS A & B) 2023-2024 ACTUAL EXAM
300 REAL EXAM QUESTIONS AND CORRECT DETAILED ANSWERS
Which class of office building is aimed at tenants requiring functional space at below-average rents for
the area? - (answer) Class C
Class C office buildings command below-average rates for the area. They're functional, but not
prestigious.
With a triple net lease, the tenant pays _______ separately from the base rent. - (answer) Taxes,
insurance, and maintenance
When two very similar properties are for sale in the same neighborhood, which one will sell first
according to the principle of substitution? - (answer) The lower priced home
To protect themselves from liability, it's a good idea for property managers to ______. - (answer) Stay
up to date on local landlord-tenant laws
According to the International Council for Shopping Centers, which commercial property comprises only
1% of the retail industry? - (answer) Factory outlet
Which payment plan consists of the borrower paying a constant amount made up of principal and
interest on a periodic basis (usually monthly)? - (answer) Fully amortized loan payment plan
Why are many middle-income cooperatives converted to condominiums? - (answer) To make resale
easier
What type of lease is used most often with community shopping centers? - (answer) percentage
Property taxes generate approximately ______ of local government revenue. - (answer) one third (1/3)
Brittany has a small office in a professional building. She has a set monthly lease payment that has been
calculated to include maintenance of the common areas in the building, such as the restroom and small
kitchen, and all nets, utilities, and janitorial charges for her space. The payment also includes taxes and
,TEXAS SAE REAL ESTATE INVESTMENT 2 LATEST VERSIONS (VERSIONS A & B) 2023-2024 ACTUAL EXAM
300 REAL EXAM QUESTIONS AND CORRECT DETAILED ANSWERS
insurance. The landlord takes these payments and pays the individual expenses himself. What type of
lease does Brittany have? - (answer) Gross lease
Which of the following statements best describes the judicial foreclosure and sale process? - (answer)
The lender must seek the court's permission to foreclose on the property used as collateral for the loan.
What's compound interest? - (answer) Interest that's reinvested into an account that then earns
interest
The owner's covenants and an insurance provision are included in which of the following documents? -
(answer) Property management agreement
What's the name of the tax program that requires a withholding of a portion of the gross purchase price
when foreign owners of real estate in the U.S. sell that property? - (answer) Foreign Investment in Real
Estate Property Tax Act (FIRPTA)
Jenner purchased his first home, to which he'll have access forever, as far as he knows. Jenner owns
______. - (answer) A freehold estate
What is the formal action to impose the property tax? - (answer) levy
Which clause in a commercial lease determines how the tenant may use the space? - (answer) Use
The element of a deed that signifies the grantor's intention to transfer title to the grantee is the ______.
- (answer) Act of conveyance
Lyn runs a brokerage and maintains a master file for all the office transactions. The file must be
maintained for how long? - (answer) As long as Lyn's state requires
All files must be maintained on state law requirements.
,TEXAS SAE REAL ESTATE INVESTMENT 2 LATEST VERSIONS (VERSIONS A & B) 2023-2024 ACTUAL EXAM
300 REAL EXAM QUESTIONS AND CORRECT DETAILED ANSWERS
Milo is interested in converting his rental properties into condominiums. He's completed his feasibility
study and determined that the conversion costs will pay for themselves at sale time and the market will
support the conversion. What else does Milo need to do prior to conversion? - (answer) Make certain
the conversion will be allowed by the local government
Ricky Nubbins is three months behind in his rent and has received several reminders from the landlord
that the rent is past due. As a result, the landlord has begun working through proper channels to legally
end Ricky's lease before the contract end date. The landlord is terminating his lease through ______. -
(answer) Eviction
If you and a sibling both inherited your father's property when he died, what type of deed would you
need to get from your sibling in order to be the sole owner of the property? - (answer) Quitclaim deed
What is the name of the tenant group that, along with the property manager, is responsible for regional
shopping center promotional activities? - (answer) Merchants' association
Quentin is a victim of fair housing discrimination who is seeking redress in federal court. What is the
limit on the amount of punitive damages he may be awarded? - (answer) There is no limit
Which of the following is a passive type of real estate investment? - (answer) limited partnership
Which statement best describes an amortized loan? - (answer) Debt that is paid off by making periodic
payments consisting of interest and principal
With an amortized loan, the principal is paid down over the life of the loan according to an amortization
schedule, typically through equal payments.
Kristoff got a bit behind on his mortgage and missed several payments. He and his lender devised a
schedule that gives Kristoff an opportunity to make up those delinquent payments. What is this an
example of? - (answer) Repayment plan
Kali's good at bargaining. She's willing to concede some things in order to entice a new tenant into
taking one of the rental spaces in the mall, but she always ensures that she's looking out for the owner's
, TEXAS SAE REAL ESTATE INVESTMENT 2 LATEST VERSIONS (VERSIONS A & B) 2023-2024 ACTUAL EXAM
300 REAL EXAM QUESTIONS AND CORRECT DETAILED ANSWERS
interests by including a certain number of escalation clauses. Which commercial property manager duty
is Kali exceptionally good at? - (answer) Leasing the property
Who is the withholding agent under Foreign Investment in Real Property Tax Act? - (answer) Buyer
Property manager Elise sends a monthly report to her client Katherine, who owns an apartment
complex. What can Katherine expect to see on this report? - (answer) Rental receipts, income,
disbursements, and operating expenses
Who might be impacted by the expiration of abatements? - (answer) New buyers
Cooperative owners are actually called ______. - (answer) Shareholders
Hester has been doing her research and attending city planning meetings in hopes of finding a single-
family home on the edge of a commercial district. What type of investment opportunity is Hester looking
for? - (answer) A home targeted for rezoning
Which of the following investors is exempt from fair housing laws? - (answer) An investor who owns
fewer than three single-family homes
An investor who owns three or fewer single-family homes, and who doesn't use real estate licensees to
assist in the sale of the investment properties is exempt from fair housing laws.
If a minor enters into a contract with an adult, which of the following is true? - (answer) The minor
may legally hold the adult to the contract, but the adult cannot legally hold the minor to the contract.
Deidra wants to invest in a super-regional shopping center. What size trade area can she plan to service?
- (answer) Five to 25 miles
Which of the following statements about an office condo owner's responsibilities is true? - (answer)
The owner is responsible for paying the PITI.
300 REAL EXAM QUESTIONS AND CORRECT DETAILED ANSWERS
Which class of office building is aimed at tenants requiring functional space at below-average rents for
the area? - (answer) Class C
Class C office buildings command below-average rates for the area. They're functional, but not
prestigious.
With a triple net lease, the tenant pays _______ separately from the base rent. - (answer) Taxes,
insurance, and maintenance
When two very similar properties are for sale in the same neighborhood, which one will sell first
according to the principle of substitution? - (answer) The lower priced home
To protect themselves from liability, it's a good idea for property managers to ______. - (answer) Stay
up to date on local landlord-tenant laws
According to the International Council for Shopping Centers, which commercial property comprises only
1% of the retail industry? - (answer) Factory outlet
Which payment plan consists of the borrower paying a constant amount made up of principal and
interest on a periodic basis (usually monthly)? - (answer) Fully amortized loan payment plan
Why are many middle-income cooperatives converted to condominiums? - (answer) To make resale
easier
What type of lease is used most often with community shopping centers? - (answer) percentage
Property taxes generate approximately ______ of local government revenue. - (answer) one third (1/3)
Brittany has a small office in a professional building. She has a set monthly lease payment that has been
calculated to include maintenance of the common areas in the building, such as the restroom and small
kitchen, and all nets, utilities, and janitorial charges for her space. The payment also includes taxes and
,TEXAS SAE REAL ESTATE INVESTMENT 2 LATEST VERSIONS (VERSIONS A & B) 2023-2024 ACTUAL EXAM
300 REAL EXAM QUESTIONS AND CORRECT DETAILED ANSWERS
insurance. The landlord takes these payments and pays the individual expenses himself. What type of
lease does Brittany have? - (answer) Gross lease
Which of the following statements best describes the judicial foreclosure and sale process? - (answer)
The lender must seek the court's permission to foreclose on the property used as collateral for the loan.
What's compound interest? - (answer) Interest that's reinvested into an account that then earns
interest
The owner's covenants and an insurance provision are included in which of the following documents? -
(answer) Property management agreement
What's the name of the tax program that requires a withholding of a portion of the gross purchase price
when foreign owners of real estate in the U.S. sell that property? - (answer) Foreign Investment in Real
Estate Property Tax Act (FIRPTA)
Jenner purchased his first home, to which he'll have access forever, as far as he knows. Jenner owns
______. - (answer) A freehold estate
What is the formal action to impose the property tax? - (answer) levy
Which clause in a commercial lease determines how the tenant may use the space? - (answer) Use
The element of a deed that signifies the grantor's intention to transfer title to the grantee is the ______.
- (answer) Act of conveyance
Lyn runs a brokerage and maintains a master file for all the office transactions. The file must be
maintained for how long? - (answer) As long as Lyn's state requires
All files must be maintained on state law requirements.
,TEXAS SAE REAL ESTATE INVESTMENT 2 LATEST VERSIONS (VERSIONS A & B) 2023-2024 ACTUAL EXAM
300 REAL EXAM QUESTIONS AND CORRECT DETAILED ANSWERS
Milo is interested in converting his rental properties into condominiums. He's completed his feasibility
study and determined that the conversion costs will pay for themselves at sale time and the market will
support the conversion. What else does Milo need to do prior to conversion? - (answer) Make certain
the conversion will be allowed by the local government
Ricky Nubbins is three months behind in his rent and has received several reminders from the landlord
that the rent is past due. As a result, the landlord has begun working through proper channels to legally
end Ricky's lease before the contract end date. The landlord is terminating his lease through ______. -
(answer) Eviction
If you and a sibling both inherited your father's property when he died, what type of deed would you
need to get from your sibling in order to be the sole owner of the property? - (answer) Quitclaim deed
What is the name of the tenant group that, along with the property manager, is responsible for regional
shopping center promotional activities? - (answer) Merchants' association
Quentin is a victim of fair housing discrimination who is seeking redress in federal court. What is the
limit on the amount of punitive damages he may be awarded? - (answer) There is no limit
Which of the following is a passive type of real estate investment? - (answer) limited partnership
Which statement best describes an amortized loan? - (answer) Debt that is paid off by making periodic
payments consisting of interest and principal
With an amortized loan, the principal is paid down over the life of the loan according to an amortization
schedule, typically through equal payments.
Kristoff got a bit behind on his mortgage and missed several payments. He and his lender devised a
schedule that gives Kristoff an opportunity to make up those delinquent payments. What is this an
example of? - (answer) Repayment plan
Kali's good at bargaining. She's willing to concede some things in order to entice a new tenant into
taking one of the rental spaces in the mall, but she always ensures that she's looking out for the owner's
, TEXAS SAE REAL ESTATE INVESTMENT 2 LATEST VERSIONS (VERSIONS A & B) 2023-2024 ACTUAL EXAM
300 REAL EXAM QUESTIONS AND CORRECT DETAILED ANSWERS
interests by including a certain number of escalation clauses. Which commercial property manager duty
is Kali exceptionally good at? - (answer) Leasing the property
Who is the withholding agent under Foreign Investment in Real Property Tax Act? - (answer) Buyer
Property manager Elise sends a monthly report to her client Katherine, who owns an apartment
complex. What can Katherine expect to see on this report? - (answer) Rental receipts, income,
disbursements, and operating expenses
Who might be impacted by the expiration of abatements? - (answer) New buyers
Cooperative owners are actually called ______. - (answer) Shareholders
Hester has been doing her research and attending city planning meetings in hopes of finding a single-
family home on the edge of a commercial district. What type of investment opportunity is Hester looking
for? - (answer) A home targeted for rezoning
Which of the following investors is exempt from fair housing laws? - (answer) An investor who owns
fewer than three single-family homes
An investor who owns three or fewer single-family homes, and who doesn't use real estate licensees to
assist in the sale of the investment properties is exempt from fair housing laws.
If a minor enters into a contract with an adult, which of the following is true? - (answer) The minor
may legally hold the adult to the contract, but the adult cannot legally hold the minor to the contract.
Deidra wants to invest in a super-regional shopping center. What size trade area can she plan to service?
- (answer) Five to 25 miles
Which of the following statements about an office condo owner's responsibilities is true? - (answer)
The owner is responsible for paying the PITI.
