Texas Real Estate Final Exam
Personal property may become real property by
the process of:
a. devise.
b. reliction.
c. attachment.
d. alienation. - Answer-C. Attachment
If a property generates a negative cash flow, in
order to be an attractive investment to a
prospective purchaser:
a. there must be a substantial down payment.
b. there must be a large depreciable base.
c. there must be a substantial increase in
property value.
d. there must be little deferred maintenance. - Answer-C. There must be a substantial increase in
property value
,The closed sales price of an income property
divided by its gross monthly rent equals the:
a. estimated market value.
b. capitalization rate.
c. gross income multiplier.
d. gross rent multiplier - Answer-D. Gross rent multipier
What is 75% of $250,000?
a. $187,500
b. $182,500
c. $62,500
d. none of the above - Answer-A. $187,000
Racial discrimination under the Civil Rights
Act of 1866 is enforced by:
a. local jurisdiction.
b. state court.
c. federal court.
d. justice of the peace court. - Answer-C. Federal court
Under eminent domain, if the parties cannot
,agree to property value, which type of lawsuit
will be filed by a city to take the property for
public use?
a. annexation
b. injunction
c. condemnation
d. specific performance - Answer-C. Condemnation
The term that describes the percentage of the
appraised value of a property that a lender will
finance is called:
a. loan-to-value ratio.
b. owner's equity.
c. certificate of reasonable value.
d. capital investment - Answer-A. Loan-to-Value
Abby is purchasing a home with a mortgage
loan and is paying for an appraisal of the property.
The appraisal is made to determine:
a. if Abby got a good deal.
b. if the seller had the house priced right.
c. if the value of the collateral satisfies the
, lender's underwriting guidelines for the
loan.
d. whether the buyer's financing requirements
meet the underwriting guidelines for the
loan - Answer-C. if the value of the collateral satisfies the
lender's underwriting guidelines for the
loan.
The best definition of a material fact is that it:
a. reveals only information about the physical
condition of a property.
b. is an agreed upon condition of the
purchase agreement.
c. is a factor a builder considers when
selecting building materials.
d. is anything important to any person
making a decision. - Answer-D. is anything important to any person making a decision.
Which of the following is a government right
in land?
a. eminent domain by a retail center
b. eminent domain by a public utility company
c. inheritance by the state when a person dies
Personal property may become real property by
the process of:
a. devise.
b. reliction.
c. attachment.
d. alienation. - Answer-C. Attachment
If a property generates a negative cash flow, in
order to be an attractive investment to a
prospective purchaser:
a. there must be a substantial down payment.
b. there must be a large depreciable base.
c. there must be a substantial increase in
property value.
d. there must be little deferred maintenance. - Answer-C. There must be a substantial increase in
property value
,The closed sales price of an income property
divided by its gross monthly rent equals the:
a. estimated market value.
b. capitalization rate.
c. gross income multiplier.
d. gross rent multiplier - Answer-D. Gross rent multipier
What is 75% of $250,000?
a. $187,500
b. $182,500
c. $62,500
d. none of the above - Answer-A. $187,000
Racial discrimination under the Civil Rights
Act of 1866 is enforced by:
a. local jurisdiction.
b. state court.
c. federal court.
d. justice of the peace court. - Answer-C. Federal court
Under eminent domain, if the parties cannot
,agree to property value, which type of lawsuit
will be filed by a city to take the property for
public use?
a. annexation
b. injunction
c. condemnation
d. specific performance - Answer-C. Condemnation
The term that describes the percentage of the
appraised value of a property that a lender will
finance is called:
a. loan-to-value ratio.
b. owner's equity.
c. certificate of reasonable value.
d. capital investment - Answer-A. Loan-to-Value
Abby is purchasing a home with a mortgage
loan and is paying for an appraisal of the property.
The appraisal is made to determine:
a. if Abby got a good deal.
b. if the seller had the house priced right.
c. if the value of the collateral satisfies the
, lender's underwriting guidelines for the
loan.
d. whether the buyer's financing requirements
meet the underwriting guidelines for the
loan - Answer-C. if the value of the collateral satisfies the
lender's underwriting guidelines for the
loan.
The best definition of a material fact is that it:
a. reveals only information about the physical
condition of a property.
b. is an agreed upon condition of the
purchase agreement.
c. is a factor a builder considers when
selecting building materials.
d. is anything important to any person
making a decision. - Answer-D. is anything important to any person making a decision.
Which of the following is a government right
in land?
a. eminent domain by a retail center
b. eminent domain by a public utility company
c. inheritance by the state when a person dies
