PRINCIPLES OF REAL ESTATE II FINAL
EXAM QUESTIONS & ANSWERS(RATED
A+)
1. The ______________ is the most active in the regulation of real estate licensees. -
ANSWER d) state government
2. Which of the following is necessary for a deed of conveyance to be valid? - ANSWER
b) The deed must be in writing
3. The primary distinction between the legal concepts of real estate and real property is
that - ANSWER a) real property includes ownership of a bundle of rights.
4. An applicant for a salesperson license must - ANSWER c) have a finger printing and
background check prior to receiving a license.
5. TRELA makes provisions for - ANSWER c) a prerequisite of a minimum of 15
classroom hours counted toward license renewal every two years.
6. A(n) ______________ is a freehold estate that is limited to the duration of the life of
the owner. - ANSWER b) life estate
7. What distinguishes a lien from other types of encumbrance? - ANSWER a) It involves
a monetary claim against the value of a property.
8. What type of conventional life estate ends with the death of the life estate owner? -
ANSWER b) Ordinary life estate
9. When speaking of real estate market dynamics, the amount of available properties
that becomes occupied over a period of time is called - ANSWER b) absorption.
10. What is the primary danger of allowing an encroachment? - ANSWER c) Over time,
the encroachment may become an easement by prescription that damages the
property's market value.
11. What statement is TRUE of payment that is made from the real estate recovery fund
on account of a licensee's acts? - ANSWER d) The license is suspended immediately,
but will be reissued upon reimbursement of the fund, with interest.
12. A salesperson listed a home and then transferred his license to another broker.
Which of the following is true? - ANSWER d) The listing will stay with the original broker.
, 13. A licensee is required to keep the Commission updated with - ANSWER a) her
current email address.
14. When an owner leases her property, she temporarily relinquishes the right to -
ANSWER c) occupy the property.
29. The most commonly used deed is the - ANSWER a) general warranty deed.
30. Who owns the property in a time-share estate? - ANSWER b) The property is
owned by tenants in common or by a freehold owner who leases on a time-share basis.
31. A broker has her license suspended for violating state license law. In such a case,
the licenses of her three salespeople are - ANSWER b) inactive.
32. A property owner is precluded by deed restriction from developing a thirty foot boat
dock. The limitation prompts the owner to sell to another party. The new owner -
ANSWER b) takes title subject to the same restriction.
33. In the state of Texas, what circumstances would restrict the government from using
eminent domain? - ANSWER b) If the result of the property being taken will confer a
private benefit on a particular private party.
34. A county or municipal authority usually grants a certificate of occupancy for new
construction only after - ANSWER c) the construction complies with building codes.
35. If a parcel does not have a lot and block number and is too irregular to be described
as a fraction of a section, the legal description - ANSWER b) will include a metes and
bounds description.
36. How many acres are there in the S 1/2 of the NW 1/4 of Section 3? - ANSWER c)
80 acres
37. If the monthly rent of a property is $3,000, and the gross rent multiplier (GRM) is 80,
what is the value of the property? - ANSWER b) $240,000
38. The principal shortcoming of the gross rent multiplier approach to estimating value is
that - ANSWER a) numerous expenses are not taken into account.
39. If net income on a property is $20,000 and the cap rate is 5%, the value of the
property using the income capitalization method is - ANSWER b) $400,000.00
40. What calculation is used to figure a property's ROI (return on investment)? -
ANSWER c) Net operating income divided by price
EXAM QUESTIONS & ANSWERS(RATED
A+)
1. The ______________ is the most active in the regulation of real estate licensees. -
ANSWER d) state government
2. Which of the following is necessary for a deed of conveyance to be valid? - ANSWER
b) The deed must be in writing
3. The primary distinction between the legal concepts of real estate and real property is
that - ANSWER a) real property includes ownership of a bundle of rights.
4. An applicant for a salesperson license must - ANSWER c) have a finger printing and
background check prior to receiving a license.
5. TRELA makes provisions for - ANSWER c) a prerequisite of a minimum of 15
classroom hours counted toward license renewal every two years.
6. A(n) ______________ is a freehold estate that is limited to the duration of the life of
the owner. - ANSWER b) life estate
7. What distinguishes a lien from other types of encumbrance? - ANSWER a) It involves
a monetary claim against the value of a property.
8. What type of conventional life estate ends with the death of the life estate owner? -
ANSWER b) Ordinary life estate
9. When speaking of real estate market dynamics, the amount of available properties
that becomes occupied over a period of time is called - ANSWER b) absorption.
10. What is the primary danger of allowing an encroachment? - ANSWER c) Over time,
the encroachment may become an easement by prescription that damages the
property's market value.
11. What statement is TRUE of payment that is made from the real estate recovery fund
on account of a licensee's acts? - ANSWER d) The license is suspended immediately,
but will be reissued upon reimbursement of the fund, with interest.
12. A salesperson listed a home and then transferred his license to another broker.
Which of the following is true? - ANSWER d) The listing will stay with the original broker.
, 13. A licensee is required to keep the Commission updated with - ANSWER a) her
current email address.
14. When an owner leases her property, she temporarily relinquishes the right to -
ANSWER c) occupy the property.
29. The most commonly used deed is the - ANSWER a) general warranty deed.
30. Who owns the property in a time-share estate? - ANSWER b) The property is
owned by tenants in common or by a freehold owner who leases on a time-share basis.
31. A broker has her license suspended for violating state license law. In such a case,
the licenses of her three salespeople are - ANSWER b) inactive.
32. A property owner is precluded by deed restriction from developing a thirty foot boat
dock. The limitation prompts the owner to sell to another party. The new owner -
ANSWER b) takes title subject to the same restriction.
33. In the state of Texas, what circumstances would restrict the government from using
eminent domain? - ANSWER b) If the result of the property being taken will confer a
private benefit on a particular private party.
34. A county or municipal authority usually grants a certificate of occupancy for new
construction only after - ANSWER c) the construction complies with building codes.
35. If a parcel does not have a lot and block number and is too irregular to be described
as a fraction of a section, the legal description - ANSWER b) will include a metes and
bounds description.
36. How many acres are there in the S 1/2 of the NW 1/4 of Section 3? - ANSWER c)
80 acres
37. If the monthly rent of a property is $3,000, and the gross rent multiplier (GRM) is 80,
what is the value of the property? - ANSWER b) $240,000
38. The principal shortcoming of the gross rent multiplier approach to estimating value is
that - ANSWER a) numerous expenses are not taken into account.
39. If net income on a property is $20,000 and the cap rate is 5%, the value of the
property using the income capitalization method is - ANSWER b) $400,000.00
40. What calculation is used to figure a property's ROI (return on investment)? -
ANSWER c) Net operating income divided by price
