AYPO REAL ESTATE PRINCIPLES OF
REAL ESTATE II EXAM STUDY GUIDE
h If the base side of a triangular plot measures 45' and the height line measures 12', what is the area of
the plot in square feet?([b x h] x ½ = A) - 270 square feet
An applicant is allowed to use what electronic devices during the real estate exam? - Hand-held
calculator
Convert the following fraction to a decimal for ease of computation: 31/25 - 1.24
What is the general formula to determine Capital Gain? - Profit from Sale - Base Value = Capital Gain
A property owner borrows $490,000 at a 12% interest rate. How much interest accumulates in the first
year?(Interest Rate = Interest / Principle) - $58,800
A property owner has a 20-year mortgage that is worth $97,500 with a 7.5% annual interest rate. What
does the property owner pay in mortgage payments every month? - $784.87
What is the basic formula for determining the proration of fees? - Tax or Fee Rate x Remaining Days or
Months = Tax or Fee Owed
A house has 3 distinct rectangular shapes:
A=20'x30'
B=10'x10'
C=75'x50'
What is the square footage total? - 4450 ft2
How many hours must an applicant provide that are acceptable and verifiable appraisal experience
acquired over a minimum of 12 months? - 1,500 hours
What is functional obsolescence? - The loss of property value due to qualities of the property that
cannot be easily changed
What is the most probable price which a property should bring in a competitive and open market under
all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably? -
Market value
Which of the following objective value means the value of a piece of property will rise or fall because of
a future benefit or a future complication? - Anticipation
Replacement cost, or the dollar amount it would cost to construct at current prices a structure that is not
exactly the same is in which type of appraisal? - Cost approach.
, A CMA is what? - Comparative Market Analysis
What are fees paid to the lender to compensate the loan company or bank for evaluating, processing,
and approving a mortgage? - Origination points.
A privately run, for-profit financial institution that provides a number of services including mortgage
lending is a... - Bank.
-
In which type of payment plan does the borrower pay a lesser amount for the first years of the plan,
often scheduled at five years, and then a higher monthly amount in the last portion of the loan? -
Flexible payment plan.
What is a federal program run by the U.S. Department of the Treasury which is intended help
homeowners avoid foreclosure? - The Making Home Affordable Program.
Which of the following is a VLB qualifying requirement? - The home must remain as the veteran's
primary residence for at least three years
The Federal Reserve System does not directly control... - 1. national production.
2. levels of employment.
3. inflation.
What occurs in secondary capital markets? - Securities are traded between investors
What is an alternative to financial institutions particularly for buyers who are not able to obtain
conventional financing? - Private lending.
Which of the following combines and replaces the final Truth-in-Lending disclosure and the HUD-1? - The
closing disclosure
Zoning regulations must be designed to: - 1. Lessen congestion in the streets.
2. Provide adequate light and air.
3. Avoid undue concentration of population.
What is a unique political subdivision of a municipality in Texas? - TIRZ
Which are the two means used to alter a deed restriction? - Waiver and judicial
Of the 167,625,000 acres of land in Texas, 1.92% is owned by the state and/or federal government,
ranking Texas __ of the 50 states. - 47
What means "trade or commerce among the several states or between any foreign country and any
state?" - Interstate commerce.
What does CERCLA do? - Provides a Federal "Superfund" to clean up uncontrolled or abandoned
hazardous-waste sites as well as accidents, spills, and other emergency releases of pollutants and
contaminants into the environment.
REAL ESTATE II EXAM STUDY GUIDE
h If the base side of a triangular plot measures 45' and the height line measures 12', what is the area of
the plot in square feet?([b x h] x ½ = A) - 270 square feet
An applicant is allowed to use what electronic devices during the real estate exam? - Hand-held
calculator
Convert the following fraction to a decimal for ease of computation: 31/25 - 1.24
What is the general formula to determine Capital Gain? - Profit from Sale - Base Value = Capital Gain
A property owner borrows $490,000 at a 12% interest rate. How much interest accumulates in the first
year?(Interest Rate = Interest / Principle) - $58,800
A property owner has a 20-year mortgage that is worth $97,500 with a 7.5% annual interest rate. What
does the property owner pay in mortgage payments every month? - $784.87
What is the basic formula for determining the proration of fees? - Tax or Fee Rate x Remaining Days or
Months = Tax or Fee Owed
A house has 3 distinct rectangular shapes:
A=20'x30'
B=10'x10'
C=75'x50'
What is the square footage total? - 4450 ft2
How many hours must an applicant provide that are acceptable and verifiable appraisal experience
acquired over a minimum of 12 months? - 1,500 hours
What is functional obsolescence? - The loss of property value due to qualities of the property that
cannot be easily changed
What is the most probable price which a property should bring in a competitive and open market under
all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably? -
Market value
Which of the following objective value means the value of a piece of property will rise or fall because of
a future benefit or a future complication? - Anticipation
Replacement cost, or the dollar amount it would cost to construct at current prices a structure that is not
exactly the same is in which type of appraisal? - Cost approach.
, A CMA is what? - Comparative Market Analysis
What are fees paid to the lender to compensate the loan company or bank for evaluating, processing,
and approving a mortgage? - Origination points.
A privately run, for-profit financial institution that provides a number of services including mortgage
lending is a... - Bank.
-
In which type of payment plan does the borrower pay a lesser amount for the first years of the plan,
often scheduled at five years, and then a higher monthly amount in the last portion of the loan? -
Flexible payment plan.
What is a federal program run by the U.S. Department of the Treasury which is intended help
homeowners avoid foreclosure? - The Making Home Affordable Program.
Which of the following is a VLB qualifying requirement? - The home must remain as the veteran's
primary residence for at least three years
The Federal Reserve System does not directly control... - 1. national production.
2. levels of employment.
3. inflation.
What occurs in secondary capital markets? - Securities are traded between investors
What is an alternative to financial institutions particularly for buyers who are not able to obtain
conventional financing? - Private lending.
Which of the following combines and replaces the final Truth-in-Lending disclosure and the HUD-1? - The
closing disclosure
Zoning regulations must be designed to: - 1. Lessen congestion in the streets.
2. Provide adequate light and air.
3. Avoid undue concentration of population.
What is a unique political subdivision of a municipality in Texas? - TIRZ
Which are the two means used to alter a deed restriction? - Waiver and judicial
Of the 167,625,000 acres of land in Texas, 1.92% is owned by the state and/or federal government,
ranking Texas __ of the 50 states. - 47
What means "trade or commerce among the several states or between any foreign country and any
state?" - Interstate commerce.
What does CERCLA do? - Provides a Federal "Superfund" to clean up uncontrolled or abandoned
hazardous-waste sites as well as accidents, spills, and other emergency releases of pollutants and
contaminants into the environment.
