Page | 1
TEXAS SAE REAL ESTATE
INVESTMENT 2 LATEST VERSIONS
(VERSIONS A & B) 2024-2025
ACTUAL EXAM 300 REAL EXAM
QUESTIONS AND CORRECT
DETAILED ANSWERS✓
Question: 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.
Question: With a triple net lease, the tenant pays _______ separately from the
base rent.
Answer:
✓ Taxes, insurance, and maintenance
Question: When two very similar properties are for sale in the same
neighborhood, which one will sell first according to the principle of
substitution?
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Answer:
✓ The lower priced home
Question: To protect themselves from liability, it's a good idea for property
managers to ______.
Answer:
✓ Stay up to date on local landlord-tenant laws
Question: According to the International Council for Shopping Centers, which
commercial property comprises only 1% of the retail industry?
Answer:
✓ Factory outlet
Question: 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
Question: Why are many middle-income cooperatives converted to
condominiums?
Answer:
✓ To make resale easier
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Question: What type of lease is used most often with community shopping
centers?
Answer:
✓ percentage
Question: Property taxes generate approximately ______ of local government
revenue.
Answer:
✓ one third (1/3)
Question: 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 insurance. The landlord takes these payments and pays the
individual expenses himself. What type of lease does Brittany have?
Answer:
✓ Gross lease
Question: Which of the following statements best describes the judicial
foreclosure and sale process?
Answer:
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✓ The lender must seek the court's permission to foreclose on the
property used as collateral for the loan.
Question: What's compound interest?
Answer:
✓ Interest that's reinvested into an account that then earns interest
Question: The owner's covenants and an insurance provision are included in
which of the following documents?
Answer:
✓ Property management agreement
Question: 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)
Question: Jenner purchased his first home, to which he'll have access forever,
as far as he knows. Jenner owns ______.
Answer:
✓ A freehold estate
Question: What is the formal action to impose the property tax?
TEXAS SAE REAL ESTATE
INVESTMENT 2 LATEST VERSIONS
(VERSIONS A & B) 2024-2025
ACTUAL EXAM 300 REAL EXAM
QUESTIONS AND CORRECT
DETAILED ANSWERS✓
Question: 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.
Question: With a triple net lease, the tenant pays _______ separately from the
base rent.
Answer:
✓ Taxes, insurance, and maintenance
Question: When two very similar properties are for sale in the same
neighborhood, which one will sell first according to the principle of
substitution?
, Page | 2
Answer:
✓ The lower priced home
Question: To protect themselves from liability, it's a good idea for property
managers to ______.
Answer:
✓ Stay up to date on local landlord-tenant laws
Question: According to the International Council for Shopping Centers, which
commercial property comprises only 1% of the retail industry?
Answer:
✓ Factory outlet
Question: 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
Question: Why are many middle-income cooperatives converted to
condominiums?
Answer:
✓ To make resale easier
, Page | 3
Question: What type of lease is used most often with community shopping
centers?
Answer:
✓ percentage
Question: Property taxes generate approximately ______ of local government
revenue.
Answer:
✓ one third (1/3)
Question: 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 insurance. The landlord takes these payments and pays the
individual expenses himself. What type of lease does Brittany have?
Answer:
✓ Gross lease
Question: Which of the following statements best describes the judicial
foreclosure and sale process?
Answer:
, Page | 4
✓ The lender must seek the court's permission to foreclose on the
property used as collateral for the loan.
Question: What's compound interest?
Answer:
✓ Interest that's reinvested into an account that then earns interest
Question: The owner's covenants and an insurance provision are included in
which of the following documents?
Answer:
✓ Property management agreement
Question: 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)
Question: Jenner purchased his first home, to which he'll have access forever,
as far as he knows. Jenner owns ______.
Answer:
✓ A freehold estate
Question: What is the formal action to impose the property tax?
