Texas Principles of Real Estate II Final Exam
Review 2026/2027 | Comprehensive
Practice Questions
What is the name of the sworn statement in which the seller assures the title
company (and the buyer) that there are no liens, unpaid bills for repairs or
improvements, or undisclosed defects in the title? - correct answer-affidavits as
to debts and liens
Tax incentives that cover the cost of energy-efficient improvements, EEMs, and
Energy Star-qualified homes are examples of: - correct answer-green initiatives
Which of the following borrowers would be MOST likely to use a graduated-
payment mortgage? - correct answer-young borrower starting their career,
anticipating an income raise in the next several years
Which type of loan is exempt from RESPA? - correct answer-loans on vacant land
Which TILA regulation requires a disclosure statement where lenders must make
certain loan facts known to borrowers? - correct answer-Regulation Z
The most common formal organization of a syndicate is that of a(n): - correct
answer-LLC
, Which of the following BEST describes why RESPA was passed? - correct 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: - correct answer-corrective maintenance
Which of the following is TRUE? - correct 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: -
correct 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? - correct
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? - correct 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: - correct answer-Leverage
What is an easement by prescription? - correct answer-An easement by
prescription is granted after the dominant estate has used the property in a
Review 2026/2027 | Comprehensive
Practice Questions
What is the name of the sworn statement in which the seller assures the title
company (and the buyer) that there are no liens, unpaid bills for repairs or
improvements, or undisclosed defects in the title? - correct answer-affidavits as
to debts and liens
Tax incentives that cover the cost of energy-efficient improvements, EEMs, and
Energy Star-qualified homes are examples of: - correct answer-green initiatives
Which of the following borrowers would be MOST likely to use a graduated-
payment mortgage? - correct answer-young borrower starting their career,
anticipating an income raise in the next several years
Which type of loan is exempt from RESPA? - correct answer-loans on vacant land
Which TILA regulation requires a disclosure statement where lenders must make
certain loan facts known to borrowers? - correct answer-Regulation Z
The most common formal organization of a syndicate is that of a(n): - correct
answer-LLC
, Which of the following BEST describes why RESPA was passed? - correct 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: - correct answer-corrective maintenance
Which of the following is TRUE? - correct 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: -
correct 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? - correct
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? - correct 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: - correct answer-Leverage
What is an easement by prescription? - correct answer-An easement by
prescription is granted after the dominant estate has used the property in a
