PRINCIPLES OF REAL ESTATE II FINAL EXAM
Actual Questions and Answers
Expert-Verified Explanation
This Exam contains:
✪ 40 Questions and Answers
✪ Multiple-choice and True/False Format
✪ Expert-Verified Explanations
✪ Verified with Trusted Textbooks
1. The ______________ is the most active in the regulation of real estate licensees.
A. federal government
B. county authority
C. private sector
D. state government
Answer: D
EXPLANATION: State governments, through their real estate commissions or agencies,
actively regulate licensing and enforcement of real estate laws.
2. Which of the following is necessary for a deed of conveyance to be valid?
A. A verbal agreement
B. The deed must be in writing
C. Notarized signature only
D. It must be recorded immediately
Answer: B
EXPLANATION: A deed must be in writing to satisfy the Statute of Frauds and be legally
enforceable.
3. The primary distinction between real estate and real property is that:
A. Real property includes ownership of a bundle of rights
B. Real estate includes lease agreements
C. Real estate cannot be inherited
D. Real property excludes land
Answer: A
EXPLANATION: Real property includes the land, improvements, and associated rights (bundle
of rights).
, 4. An applicant for a salesperson license must:
A. Submit credit report
B. Be a property owner
C. Have a fingerprint and background check
D. Pass an ethics course only
Answer: C
EXPLANATION: Fingerprinting and a background check are required to assess the applicant’s
legal eligibility.
5. TRELA makes provisions for:
A. Voluntary ethics training
B. Sales tax waivers
C. 15 classroom hours toward renewal every two years
D. National certification
Answer: C
EXPLANATION: The Texas Real Estate License Act (TRELA) mandates continuing education
for license renewals.
6. A(n) ______________ is a freehold estate limited to the duration of the owner’s life.
A. fee simple absolute
B. life estate
C. leasehold estate
D. determinable fee estate
Answer: B
EXPLANATION: A life estate ends upon the death of the individual designated as the
measuring life.
7. What distinguishes a lien from other encumbrances?
A. It’s a physical condition
B. It’s a government right
C. It involves a monetary claim
D. It cannot be removed
Answer: C
EXPLANATION: Liens are financial claims or charges on a property.
8. What type of conventional life estate ends with the death of the life estate owner?
A. Pur autre vie
B. Ordinary life estate
Actual Questions and Answers
Expert-Verified Explanation
This Exam contains:
✪ 40 Questions and Answers
✪ Multiple-choice and True/False Format
✪ Expert-Verified Explanations
✪ Verified with Trusted Textbooks
1. The ______________ is the most active in the regulation of real estate licensees.
A. federal government
B. county authority
C. private sector
D. state government
Answer: D
EXPLANATION: State governments, through their real estate commissions or agencies,
actively regulate licensing and enforcement of real estate laws.
2. Which of the following is necessary for a deed of conveyance to be valid?
A. A verbal agreement
B. The deed must be in writing
C. Notarized signature only
D. It must be recorded immediately
Answer: B
EXPLANATION: A deed must be in writing to satisfy the Statute of Frauds and be legally
enforceable.
3. The primary distinction between real estate and real property is that:
A. Real property includes ownership of a bundle of rights
B. Real estate includes lease agreements
C. Real estate cannot be inherited
D. Real property excludes land
Answer: A
EXPLANATION: Real property includes the land, improvements, and associated rights (bundle
of rights).
, 4. An applicant for a salesperson license must:
A. Submit credit report
B. Be a property owner
C. Have a fingerprint and background check
D. Pass an ethics course only
Answer: C
EXPLANATION: Fingerprinting and a background check are required to assess the applicant’s
legal eligibility.
5. TRELA makes provisions for:
A. Voluntary ethics training
B. Sales tax waivers
C. 15 classroom hours toward renewal every two years
D. National certification
Answer: C
EXPLANATION: The Texas Real Estate License Act (TRELA) mandates continuing education
for license renewals.
6. A(n) ______________ is a freehold estate limited to the duration of the owner’s life.
A. fee simple absolute
B. life estate
C. leasehold estate
D. determinable fee estate
Answer: B
EXPLANATION: A life estate ends upon the death of the individual designated as the
measuring life.
7. What distinguishes a lien from other encumbrances?
A. It’s a physical condition
B. It’s a government right
C. It involves a monetary claim
D. It cannot be removed
Answer: C
EXPLANATION: Liens are financial claims or charges on a property.
8. What type of conventional life estate ends with the death of the life estate owner?
A. Pur autre vie
B. Ordinary life estate
