Principles Of Real Estate II PREPARATION
TEST 2026 QUESTIONS AND CORRECT
ANSWERS GRADED A+
● Which of the following about a holographic will is FALSE?. Answer:
It can NOT be changed
● Which of the following BEST describes why RESPA was passed?.
Answer: To ensure meaningful disclosure of closing costs in a real estate
transaction
● Ricky, a borrower, has a mortgage loan that has just been bought by a
new investor. Ricky panics, as his loan conditions are bound to change
with the new owner. Evaluate if Ricky's fear is accurate, and why/why
not.. Answer: Ricky shouldn't worry; even though the loan is being sold
by the lender, Ricky will most likely not be affected at all
● Rex purchased an investment property with the intention of renting it
out. To finance it, he set up a partially amortized loan with a balloon
payment. What risk could this pose for him as the borrower?. Answer: If
his property fails to gain anticipated value, Rex could be caught with
insufficient funds to pay for the larger, final balloon payment.
, ● Who is the representative of the title insurance company who reviews
the title insurance commitment, prepares the Closing Disclosure, and
conducts the closing?. Answer: Closing agent
● Alicia has two people interested in the lots she is selling. She gives
them both a copy of the property report. She is required to do so under
what Act?. Answer: The Interstate Land Sale Full Disclosure Act
● A tenant has recently signed a lease for a new commercial property.
According to the lease terms, the tenant pays a monthly rent, and the
landlord covers maintenance and other property expenses. This lease is
a:. Answer: Gross lease
● What legislation mandates a nationwide licensing and registration
system for residential mortgage loan originators (MLOs)?. Answer:
SAFE Act (The Secure and Fair Enforcement for Mortgage Licensing
Act)
● What is a primary advantage of a REMIC?. Answer: They offer
stability with the variety of mortgages they contain
● Tumi needs to know what her loan principal will be. The property
costs $400,000 and she is able to make a $65,000 down payment. What
is her loan principal?. Answer: $335,000
TEST 2026 QUESTIONS AND CORRECT
ANSWERS GRADED A+
● Which of the following about a holographic will is FALSE?. Answer:
It can NOT be changed
● Which of the following BEST describes why RESPA was passed?.
Answer: To ensure meaningful disclosure of closing costs in a real estate
transaction
● Ricky, a borrower, has a mortgage loan that has just been bought by a
new investor. Ricky panics, as his loan conditions are bound to change
with the new owner. Evaluate if Ricky's fear is accurate, and why/why
not.. Answer: Ricky shouldn't worry; even though the loan is being sold
by the lender, Ricky will most likely not be affected at all
● Rex purchased an investment property with the intention of renting it
out. To finance it, he set up a partially amortized loan with a balloon
payment. What risk could this pose for him as the borrower?. Answer: If
his property fails to gain anticipated value, Rex could be caught with
insufficient funds to pay for the larger, final balloon payment.
, ● Who is the representative of the title insurance company who reviews
the title insurance commitment, prepares the Closing Disclosure, and
conducts the closing?. Answer: Closing agent
● Alicia has two people interested in the lots she is selling. She gives
them both a copy of the property report. She is required to do so under
what Act?. Answer: The Interstate Land Sale Full Disclosure Act
● A tenant has recently signed a lease for a new commercial property.
According to the lease terms, the tenant pays a monthly rent, and the
landlord covers maintenance and other property expenses. This lease is
a:. Answer: Gross lease
● What legislation mandates a nationwide licensing and registration
system for residential mortgage loan originators (MLOs)?. Answer:
SAFE Act (The Secure and Fair Enforcement for Mortgage Licensing
Act)
● What is a primary advantage of a REMIC?. Answer: They offer
stability with the variety of mortgages they contain
● Tumi needs to know what her loan principal will be. The property
costs $400,000 and she is able to make a $65,000 down payment. What
is her loan principal?. Answer: $335,000
