PRINCIPLES OF REAL ESTATE II FINAL
EXAM QUESTIONS WITH VERIFIED
ANSWERS
l1. The ______________ is the most active in the regulation of real estate licensees. - d) state
government
2. Which of the following is necessary for a deed of conveyance to be valid? - b) The deed must be in
writing
3. The primary distinction between the legal concepts of real estate and real property is that - a) real
property includes ownership of a bundle of rights.
4. An applicant for a salesperson license must - c) have a finger printing and background check prior to
receiving a license.
5. TRELA makes provisions for - c) a prerequisite of a minimum of 15 classroom hours counted toward
license renewal every two years.
6. A(n) ______________ is a freehold estate that is limited to the duration of the life of the owner. - b)
life estate
7. What distinguishes a lien from other types of encumbrance? - a) It involves a monetary claim against
the value of a property.
8. What type of conventional life estate ends with the death of the life estate owner? - b) Ordinary life
estate
9. When speaking of real estate market dynamics, the amount of available properties that becomes
occupied over a period of time is called - b) absorption.
10. What is the primary danger of allowing an encroachment? - c) Over time, the encroachment may
become an easement by prescription that damages the property's market value.
11. What statement is TRUE of payment that is made from the real estate recovery fund on account of a
licensee's acts? - d) The license is suspended immediately, but will be reissued upon reimbursement of
the fund, with interest.
12. A salesperson listed a home and then transferred his license to another broker. Which of the
following is true? - d) The listing will stay with the original broker.
13. A licensee is required to keep the Commission updated with - a) her current email address.
14. When an owner leases her property, she temporarily relinquishes the right to - c) occupy the
property.
, 15. Which education requirement can a person leave out when applying for a salesperson license? - a)
Evidence of a degree in some form of postsecondary education.
16. Which of the following is an expense which would be listed on the HUD-1 Uniform Settlement
Statement? - b) Title insurance fees
17. Listing, marketing, facilitating transactions and managing information summarizes the critical skills in
which of the following? - d) Real estate brokerage
18. Which of the following happens when a leased property is sold? - a) The buyer acquires title subject
to the lease.
19. Which of the following is a valid distinction between a corporation and a proprietorship? - a) A
corporation has perpetual existence; a proprietorship terminates upon the owner's death.
20. What type of property is abstract, having no physical existence in itself, other than as evidence of
one's ownership interest? - a) Intangible
21. In an economic system, supply is defined as - b) the quantity of a product or service available for sale,
lease, or trade at any given time.
22. Which is NOT included in the ownership bundle of rights? - d) Taxation
23. Which of the following items are paid in arrears? - c) Taxes and interest
24. Which of the following laws or rulings extended discrimination to include gender, handicapped
status, and family status? - c) The Fair Housing Amendments Act of 1988.
25. What type of seller financing allows the seller to receive a junior mortgage from the buyer to use to
make the payments on the original first mortgage? - b) Wraparound mortgage
26. All of the following are ways of specializing in the real estate brokerage business except? - b) By area
27. Who are the essential parties involved in an estate in trust? - d) Trustor, trustee, and beneficiary.
28. The purpose of a covenant clause in a deed of conveyance is to - a) state the grantor's assurance or
warrant to the grantee that a certain condition or fact concerning the property is true.
29. The most commonly used deed is the - a) general warranty deed.
30. Who owns the property in a time-share estate? - b) The property is owned by tenants in common or
by a freehold owner who leases on a time-share basis.
31. A broker has her license suspended for violating state license law. In such a case, the licenses of her
three salespeople are - b) inactive.
32. A property owner is precluded by deed restriction from developing a thirty foot boat dock. The
limitation prompts the owner to sell to another party. The new owner - b) takes title subject to the same
restriction.
EXAM QUESTIONS WITH VERIFIED
ANSWERS
l1. The ______________ is the most active in the regulation of real estate licensees. - d) state
government
2. Which of the following is necessary for a deed of conveyance to be valid? - b) The deed must be in
writing
3. The primary distinction between the legal concepts of real estate and real property is that - a) real
property includes ownership of a bundle of rights.
4. An applicant for a salesperson license must - c) have a finger printing and background check prior to
receiving a license.
5. TRELA makes provisions for - c) a prerequisite of a minimum of 15 classroom hours counted toward
license renewal every two years.
6. A(n) ______________ is a freehold estate that is limited to the duration of the life of the owner. - b)
life estate
7. What distinguishes a lien from other types of encumbrance? - a) It involves a monetary claim against
the value of a property.
8. What type of conventional life estate ends with the death of the life estate owner? - b) Ordinary life
estate
9. When speaking of real estate market dynamics, the amount of available properties that becomes
occupied over a period of time is called - b) absorption.
10. What is the primary danger of allowing an encroachment? - c) Over time, the encroachment may
become an easement by prescription that damages the property's market value.
11. What statement is TRUE of payment that is made from the real estate recovery fund on account of a
licensee's acts? - d) The license is suspended immediately, but will be reissued upon reimbursement of
the fund, with interest.
12. A salesperson listed a home and then transferred his license to another broker. Which of the
following is true? - d) The listing will stay with the original broker.
13. A licensee is required to keep the Commission updated with - a) her current email address.
14. When an owner leases her property, she temporarily relinquishes the right to - c) occupy the
property.
, 15. Which education requirement can a person leave out when applying for a salesperson license? - a)
Evidence of a degree in some form of postsecondary education.
16. Which of the following is an expense which would be listed on the HUD-1 Uniform Settlement
Statement? - b) Title insurance fees
17. Listing, marketing, facilitating transactions and managing information summarizes the critical skills in
which of the following? - d) Real estate brokerage
18. Which of the following happens when a leased property is sold? - a) The buyer acquires title subject
to the lease.
19. Which of the following is a valid distinction between a corporation and a proprietorship? - a) A
corporation has perpetual existence; a proprietorship terminates upon the owner's death.
20. What type of property is abstract, having no physical existence in itself, other than as evidence of
one's ownership interest? - a) Intangible
21. In an economic system, supply is defined as - b) the quantity of a product or service available for sale,
lease, or trade at any given time.
22. Which is NOT included in the ownership bundle of rights? - d) Taxation
23. Which of the following items are paid in arrears? - c) Taxes and interest
24. Which of the following laws or rulings extended discrimination to include gender, handicapped
status, and family status? - c) The Fair Housing Amendments Act of 1988.
25. What type of seller financing allows the seller to receive a junior mortgage from the buyer to use to
make the payments on the original first mortgage? - b) Wraparound mortgage
26. All of the following are ways of specializing in the real estate brokerage business except? - b) By area
27. Who are the essential parties involved in an estate in trust? - d) Trustor, trustee, and beneficiary.
28. The purpose of a covenant clause in a deed of conveyance is to - a) state the grantor's assurance or
warrant to the grantee that a certain condition or fact concerning the property is true.
29. The most commonly used deed is the - a) general warranty deed.
30. Who owns the property in a time-share estate? - b) The property is owned by tenants in common or
by a freehold owner who leases on a time-share basis.
31. A broker has her license suspended for violating state license law. In such a case, the licenses of her
three salespeople are - b) inactive.
32. A property owner is precluded by deed restriction from developing a thirty foot boat dock. The
limitation prompts the owner to sell to another party. The new owner - b) takes title subject to the same
restriction.
