Principles Of Real Estate II CERTIFICATION
PAPER 2026 FULL SOLUTION GRADED A+
● Tax incentives that cover the cost of energy-efficient improvements,
EEMs, and Energy Star-qualified homes are examples of: Answer: green
initiatives
● Which of the following borrowers would be MOST likely to use a
graduated-payment mortgage? Answer: young borrower starting their
career, anticipating an income raise in the next several years
● Which type of loan is exempt from RESPA? Answer: loans on vacant
land
● Which TILA regulation requires a disclosure statement where lenders
must make certain loan facts known to borrowers? Answer: Regulation
Z
● The most common formal organization of a syndicate is that of a(n):
Answer: LLC
● Which of the following BEST describes why RESPA was passed?
Answer: to ensure meaningful disclosure of closing costs in a real estate
transaction
, ● Property manager William hires an HVAC specialist to repair a broken
air conditioner in an apartment.
This is an example of: Answer: corrective maintenance
● Which of the following is TRUE? Answer: A Texas real estate license
does NOT allow agents and brokers to act as appraisers or home
mortgage originators
● A handwritten will created solely by the maker (and not witnessed) is
called a: Answer: holographic will
● Ashley just bought a house. To purchase the house, she got a loan for
$400,000 with 3 discount points. How much did she pay for the discount
points? Answer: One discount point costs 1% of the loan amount;
therefore, one discount point cost $4,000 in Ashley's case. Ashley paid
$12,000 for 3 discount points.
● What is the difference between actual and constructive notice?
Answer: Constructive notice is the assumption that a diligent individual
can search the public record to gain knowledge; actual notice is direct or
first-hand knowledge.
● The investment strategy of taking on debt in order to realize a greater
return is known as: Answer: Leverage
PAPER 2026 FULL SOLUTION GRADED A+
● Tax incentives that cover the cost of energy-efficient improvements,
EEMs, and Energy Star-qualified homes are examples of: Answer: green
initiatives
● Which of the following borrowers would be MOST likely to use a
graduated-payment mortgage? Answer: young borrower starting their
career, anticipating an income raise in the next several years
● Which type of loan is exempt from RESPA? Answer: loans on vacant
land
● Which TILA regulation requires a disclosure statement where lenders
must make certain loan facts known to borrowers? Answer: Regulation
Z
● The most common formal organization of a syndicate is that of a(n):
Answer: LLC
● Which of the following BEST describes why RESPA was passed?
Answer: to ensure meaningful disclosure of closing costs in a real estate
transaction
, ● Property manager William hires an HVAC specialist to repair a broken
air conditioner in an apartment.
This is an example of: Answer: corrective maintenance
● Which of the following is TRUE? Answer: A Texas real estate license
does NOT allow agents and brokers to act as appraisers or home
mortgage originators
● A handwritten will created solely by the maker (and not witnessed) is
called a: Answer: holographic will
● Ashley just bought a house. To purchase the house, she got a loan for
$400,000 with 3 discount points. How much did she pay for the discount
points? Answer: One discount point costs 1% of the loan amount;
therefore, one discount point cost $4,000 in Ashley's case. Ashley paid
$12,000 for 3 discount points.
● What is the difference between actual and constructive notice?
Answer: Constructive notice is the assumption that a diligent individual
can search the public record to gain knowledge; actual notice is direct or
first-hand knowledge.
● The investment strategy of taking on debt in order to realize a greater
return is known as: Answer: Leverage
