Principles Of Real Estate II EXAMINATION
SET 2026 SOLVED QUESTIONS GRADED A+
● Which federal law prohibits discrimination in any aspect of a credit
transaction? Answer: Equal Credit Opportunity Act
● Quarterly interest payment on a loan is $3600 with an interest rate of
6%. What is the loan amount? Answer: $240,000
● Appraisers must be aware of: Answer: market cycles, economic forces,
and political actions
● Which of the following is not one of the requirements of a valid lease?
A. competent parties
B. agreement to let and take
c. adequate consideration
d. recording Answer: d. recording
● A Residential Mortgage Loan Originator must be licensed with
a. TREC
b. Texas Department of Savings and Mortgage Lending Answer: Texas
Department of Savings and Mortgage Lending
, ● Which of the following statements of property managers is false?
a. a management agreement is used to create the agency relationship
b. property managers must be full time employees of the owner Answer:
Property managers must be full time employees of the owner
● 10. The consummation of a real estate transaction in which all of the
appropriate documents are signed and the proceeds of the loan are
dispersed as:
A. Funding
B. Closing Answer: B. Closing
● Loan-to-value ratio is: Answer: the percentage of the appraised value
or sales price that the lender will lend, whichever is lower
● Where would you expect to find PMI? Answer: a high LTV
conventional loan
● The principle of appraisal that states value is influenced by the cost of
acquiring a comparable replacement Answer: the principle of
substitution
● The presence of a higher priced property in a neighborhood that helps
the values of the neighbors Answer: progression
SET 2026 SOLVED QUESTIONS GRADED A+
● Which federal law prohibits discrimination in any aspect of a credit
transaction? Answer: Equal Credit Opportunity Act
● Quarterly interest payment on a loan is $3600 with an interest rate of
6%. What is the loan amount? Answer: $240,000
● Appraisers must be aware of: Answer: market cycles, economic forces,
and political actions
● Which of the following is not one of the requirements of a valid lease?
A. competent parties
B. agreement to let and take
c. adequate consideration
d. recording Answer: d. recording
● A Residential Mortgage Loan Originator must be licensed with
a. TREC
b. Texas Department of Savings and Mortgage Lending Answer: Texas
Department of Savings and Mortgage Lending
, ● Which of the following statements of property managers is false?
a. a management agreement is used to create the agency relationship
b. property managers must be full time employees of the owner Answer:
Property managers must be full time employees of the owner
● 10. The consummation of a real estate transaction in which all of the
appropriate documents are signed and the proceeds of the loan are
dispersed as:
A. Funding
B. Closing Answer: B. Closing
● Loan-to-value ratio is: Answer: the percentage of the appraised value
or sales price that the lender will lend, whichever is lower
● Where would you expect to find PMI? Answer: a high LTV
conventional loan
● The principle of appraisal that states value is influenced by the cost of
acquiring a comparable replacement Answer: the principle of
substitution
● The presence of a higher priced property in a neighborhood that helps
the values of the neighbors Answer: progression
