Texas Real Estate Finance Practice
Exam Questions & Correct and Verified
Answers.Latest update2025/2026 Graded
A+, Exams of Nursing
Which of the following default types would be considered a technical default? - CORRECT ANSWERS
failure to keep property in good repair
Which Texas agency licenses, regulates, and examines the trust- and insurance-funded prepaid funeral
contract sellers? - CORRECT ANSWERS TExas department of banking
The Tax Reform Act of 1986 established an entity that can issue multiclass securities. What is this entity
called? - CORRECT ANSWERS REMIC
What is the main advantage of a single-family home investment over other real estate investments? -
CORRECT ANSWERS liquidity
Who is the person who grants approval for the loan, rejects the loan, or in some cases, agrees to
approve the loan if certain conditions are met? - CORRECT ANSWERS underwriter
Which of the following statements is not true about a note? - CORRECT ANSWERS a note must
be tied to a mortgage to be legal
What percent of the REIT's assets must be made up of cash, real estate, mortgage notes, or government
securities? - CORRECT ANSWERS 75
Mary is getting a $120,000 loan at 6.5 percent and will pay 3 discount points. What will the effective
interest rate be? - CORRECT ANSWERS .06875
How is the payoff of a construction loan normally accomplished? - CORRECT ANSWERS with a
takeout loan
Which type of property is most benefited by the income capitalization approach to estimating value? -
CORRECT ANSWERS apartment building
Which statement is not true about the Farm Credit System? - CORRECT ANSWERS FCS banks
lend money from their deposits
In Texas, what is the maximum late payment penalty allowed? - CORRECT ANSWERS no
restrictions
With which kind of lease does the tenant not know the actual change in the rent amount in advance? -
CORRECT ANSWERS indexed
Exam Questions & Correct and Verified
Answers.Latest update2025/2026 Graded
A+, Exams of Nursing
Which of the following default types would be considered a technical default? - CORRECT ANSWERS
failure to keep property in good repair
Which Texas agency licenses, regulates, and examines the trust- and insurance-funded prepaid funeral
contract sellers? - CORRECT ANSWERS TExas department of banking
The Tax Reform Act of 1986 established an entity that can issue multiclass securities. What is this entity
called? - CORRECT ANSWERS REMIC
What is the main advantage of a single-family home investment over other real estate investments? -
CORRECT ANSWERS liquidity
Who is the person who grants approval for the loan, rejects the loan, or in some cases, agrees to
approve the loan if certain conditions are met? - CORRECT ANSWERS underwriter
Which of the following statements is not true about a note? - CORRECT ANSWERS a note must
be tied to a mortgage to be legal
What percent of the REIT's assets must be made up of cash, real estate, mortgage notes, or government
securities? - CORRECT ANSWERS 75
Mary is getting a $120,000 loan at 6.5 percent and will pay 3 discount points. What will the effective
interest rate be? - CORRECT ANSWERS .06875
How is the payoff of a construction loan normally accomplished? - CORRECT ANSWERS with a
takeout loan
Which type of property is most benefited by the income capitalization approach to estimating value? -
CORRECT ANSWERS apartment building
Which statement is not true about the Farm Credit System? - CORRECT ANSWERS FCS banks
lend money from their deposits
In Texas, what is the maximum late payment penalty allowed? - CORRECT ANSWERS no
restrictions
With which kind of lease does the tenant not know the actual change in the rent amount in advance? -
CORRECT ANSWERS indexed
