AYPO REAL ESTATE PRINCIPLES OF
REAL ESTATE II EXAM STUDY GUIDE
QUESTIONS AND ANSWERS
Which of the following conditions must be met for a REIT? ANSW✅✅At least 75% of the REIT's
total assets must be invested in real estate assets and cash
Where are investment products like REMICs traded? ANSW✅✅Stock market
If a commercial landlord has locked a tenant out of leased premises in violation of Section 93.002,
the tenant: ANSW✅✅may recover possession of the premises as provided by section 93.003.
A leasehold that continues for a definite period of time, which can be anywhere from weeks, to
months, to years at a time is: ANSW✅✅An estate for years.
What type of clause would the following be?"Tenants shall not operate machinery which produces a
noise in excess of 100 decibels between the hours of 9:00 pm and 9:00 am." ANSW✅✅Use clause
A landlord may not intentionally prevent a tenant from entering the leased premises unless:
ANSW✅✅1. the tenant is delinquent in paying all or part of the rent
2. the landlord's right to change the locks because of a tenant's failure to timely pay rent is placed in
the lease
3. the landlord has locally mailed not later than the fifth calendar day before the date on which the
door locks are changed
What is the "natural breakpoint" on a commercial lease? ANSW✅✅When the percentage of sales
(in a percentage lease) equals the base rent
The law of supply is that higher prices (usually, when measured relative to costs) will:
ANSW✅✅encourage increasing supplies of whatever is experiencing these gains.
What percentage of income is it recommended that a tenant pays no more than for rent?
ANSW✅✅1/3
, If a tenant abandons the leased premises in violation of the lease, what must the landlord do?
ANSW✅✅They have a duty to mitigate damages.
The FTC rule that advertising must be truthful and not designed to deceive consumers means what?
ANSW✅✅the advertisement cannot contain statements likely to mislead reasonable consumers
Which of the following is not an effective way to prevent errors? ANSW✅✅E&O insurance
Mold remediation for the state of Texas is managed by whom? ANSW✅✅Texas Department of
State Services
Where would one take a duly executed, acknowledged, and delivered deed to have it filed as part of
the public record? ANSW✅✅The county clerk''s office of the county where the property is located
Which title is a property title that is considered free from defect and therefore the possibility of
litigation is eliminated but even though there may still be encumbrances on the title it is one of
which the parties are aware, such as a lien or an easement? ANSW✅✅Marketable title
A county clerk who accepts electronic documents for recording shall: ANSW✅✅(1) continue to
accept paper documents; and (2) place entries for paper documents and electronic documents in the
same index.
Why would a lender require a borrower to obtain title insurance when obtaining a mortgage?
ANSW✅✅Title insurance prevents an error from the title company creating later problems with a
lien (any lien placed on a property without a clear title or a title with unknown encumbrances would
not be easily enforced in the event of a default)
If the sale, transfer, purchase, or acquisition agreement transfers or sells an interest in land or in a
mortgage or other lien vested according to the real property records in the failed depository
institution: ANSW✅✅a recorded affidavit or memorandum under this section is constructive
notice of the transfer or sale.
Estates of indeterminable length, for example, those that exist for a lifetime or forever are:
ANSW✅✅Freehold estates
REAL ESTATE II EXAM STUDY GUIDE
QUESTIONS AND ANSWERS
Which of the following conditions must be met for a REIT? ANSW✅✅At least 75% of the REIT's
total assets must be invested in real estate assets and cash
Where are investment products like REMICs traded? ANSW✅✅Stock market
If a commercial landlord has locked a tenant out of leased premises in violation of Section 93.002,
the tenant: ANSW✅✅may recover possession of the premises as provided by section 93.003.
A leasehold that continues for a definite period of time, which can be anywhere from weeks, to
months, to years at a time is: ANSW✅✅An estate for years.
What type of clause would the following be?"Tenants shall not operate machinery which produces a
noise in excess of 100 decibels between the hours of 9:00 pm and 9:00 am." ANSW✅✅Use clause
A landlord may not intentionally prevent a tenant from entering the leased premises unless:
ANSW✅✅1. the tenant is delinquent in paying all or part of the rent
2. the landlord's right to change the locks because of a tenant's failure to timely pay rent is placed in
the lease
3. the landlord has locally mailed not later than the fifth calendar day before the date on which the
door locks are changed
What is the "natural breakpoint" on a commercial lease? ANSW✅✅When the percentage of sales
(in a percentage lease) equals the base rent
The law of supply is that higher prices (usually, when measured relative to costs) will:
ANSW✅✅encourage increasing supplies of whatever is experiencing these gains.
What percentage of income is it recommended that a tenant pays no more than for rent?
ANSW✅✅1/3
, If a tenant abandons the leased premises in violation of the lease, what must the landlord do?
ANSW✅✅They have a duty to mitigate damages.
The FTC rule that advertising must be truthful and not designed to deceive consumers means what?
ANSW✅✅the advertisement cannot contain statements likely to mislead reasonable consumers
Which of the following is not an effective way to prevent errors? ANSW✅✅E&O insurance
Mold remediation for the state of Texas is managed by whom? ANSW✅✅Texas Department of
State Services
Where would one take a duly executed, acknowledged, and delivered deed to have it filed as part of
the public record? ANSW✅✅The county clerk''s office of the county where the property is located
Which title is a property title that is considered free from defect and therefore the possibility of
litigation is eliminated but even though there may still be encumbrances on the title it is one of
which the parties are aware, such as a lien or an easement? ANSW✅✅Marketable title
A county clerk who accepts electronic documents for recording shall: ANSW✅✅(1) continue to
accept paper documents; and (2) place entries for paper documents and electronic documents in the
same index.
Why would a lender require a borrower to obtain title insurance when obtaining a mortgage?
ANSW✅✅Title insurance prevents an error from the title company creating later problems with a
lien (any lien placed on a property without a clear title or a title with unknown encumbrances would
not be easily enforced in the event of a default)
If the sale, transfer, purchase, or acquisition agreement transfers or sells an interest in land or in a
mortgage or other lien vested according to the real property records in the failed depository
institution: ANSW✅✅a recorded affidavit or memorandum under this section is constructive
notice of the transfer or sale.
Estates of indeterminable length, for example, those that exist for a lifetime or forever are:
ANSW✅✅Freehold estates
