Texas Principles of Real Estate II Questions & Answers(SCORED A+)
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Texas Principles of Real Estate II
Institution
Texas Principles Of Real Estate II
Lenders require a borrower to establish and maintain a reserve fund to ______. - ANSWER Pay any property taxes in case the borrower misses a payment
Brandon recently purchased an old warehouse building. This building will serve as a hub for local deliveries of fruits and vegetables within the s...
Texas Principles of Real Estate
II Questions &
Answers(SCORED A+)
Lenders require a borrower to establish and maintain a reserve fund to ______. - ANSWER Pay any
property taxes in case the borrower misses a payment
Brandon recently purchased an old warehouse building. This building will serve as a hub for local
deliveries of fruits and vegetables within the state. During its first week in operation, one of the
delivery drivers was involved in an accident that spilled coconuts all over the road and shut down the
interstate for hours. What type of risk is this? - ANSWER Static
Which entity enforces subdivision covenants? - ANSWER The civil court system
What does the right of first refusal clause do when included in a lease agreement in Texas? -
ANSWER Gives a tenant the option to buy the property they are leasing before the property is sold
to someone else
What does a CMA determine? - ANSWER Market price range
Where do live auctions typically take place? - ANSWER On the steps of the local courthouse
Which term refers to the person receiving title, often called the "party of the second part," in a
deed? - ANSWER Grantee
What's an affidavit as to debts and liens? - ANSWER A sworn statement by the seller that no unpaid
bills remain for repairs or improvements to the property.
Which amendment to CERCLA says that "innocent landowners" aren't responsible for clean-up of
hazardous contamination? - ANSWER Superfunds Amendments and Reauthorization Act
,The economic principle that tells us that when supply goes up, price goes down is commonly referred
to as what? - ANSWER Supply and demand
Which of the following is most susceptible to a predatory lender? - ANSWER A borrower with poor
credit
Who conducts the closing? - ANSWER Closing agent
What could be a consequence if there were no secondary mortgage market? - ANSWER Lenders
might not have funds available to make new loans to the public.
For residential property managers dealing with prospective tenants, their responsibilities include
checking ______. - ANSWER References
What's the term for a charge that a transactional party must pay at closing? - ANSWER Debit
Who usually pays the broker commission? - ANSWER The seller
Which of the following statements is true about using utilities interruption as a means of collecting
rent? - ANSWER It is illegal.
Which of the following is one benefit to business owners for leasing instead of buying real estate for
their business? - ANSWER Monthly rent is a tax deduction as a business expense.
Jerry's home has been in his family for nearly 75 years and sits smack dab in the middle of where a
public university wants to expand. A government authority has made a fair offer for seizing Jerry's
home as part of the process of taking someone's property called ______. - ANSWER Condemnation
What might Trina's mother have bequeathed to Trina? - ANSWER Her jewelry and fine china
A vacant lot that was purchased for $18,000 three years ago has appreciated 15%. What would its
value be today? - ANSWER $20,700
, Which of the following options describes principal as it relates to loans? - ANSWER Amount of
payment that will be applied to the loan balance
With the cost approach to value, what is the reproduction cost? - ANSWER Cost to build an exact
replica of the subject, with the same materials and deficiencies
A steel plant is an example of which commercial property category? - ANSWER Manufacturing
What does a balloon payment represent at the end of a loan term? - ANSWER It means that some
principal remains at the end of the loan term.
When a real estate professional goes beyond a broad brushstroke approach to a CMA and takes the
time to research not only recent sales, but competition and expired listings, what trait are they
exhibiting? - ANSWER Diligence
Voluntary alienation includes which of the following? - ANSWER Kali intentionally transfers her
property to Sandy.
What section of the property management agreement states that the owner actually owns the
property, and it's not facing foreclosure? - ANSWER Owner's covenants
Why are residential properties popular with investors? - ANSWER They're always in demand.
Appraiser Jerry is looking past how a property is being used to determine a more optimal function.
What is he determining? - ANSWER Highest and best use
When a mortgage is used as a security instrument, who holds the mortgage and the promissory
note? - ANSWER The lender holds the mortgage and the note.
To whom would a 1031 tax exchange usually appeal? - ANSWER Investors
Which of the following statements about zoning ordinances is true? - ANSWER Before zoning
ordinances are changed, they must be examined for fairness and reasonableness.
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