Principles of Real Estate II Final Exam Questions And Answers

Principles of Real Estate II Final Exam
Questions And Answers


1. The ______________ is the most active in the regulation of real estate licensees. - (correct answer) -
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d) state government
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2. Which of the following is necessary for a deed of conveyance to be valid? - (correct answer) -b) The
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deed must be in writing
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3. The primary distinction between the legal concepts of real estate and real property is that - (correct
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answer) -a) real property includes ownership of a bundle of rights.
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4. An applicant for a salesperson license must - (correct answer) -c) have a finger printing and
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background check prior to receiving a license.
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5. TRELA makes provisions for - (correct answer) -c) a prerequisite of a minimum of 15 classroom hours
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counted toward license renewal every two years.
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6. A(n) ______________ is a freehold estate that is limited to the duration of the life of the owner. -
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(correct answer) -b) life estate I,; I,; I,; I,;



7. What distinguishes a lien from other types of encumbrance? - (correct answer) -a) It involves a
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monetary claim against the value of a property.
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8. What type of conventional life estate ends with the death of the life estate owner? - (correct answer)
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-b) Ordinary life estate
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9. When speaking of real estate market dynamics, the amount of available properties that becomes
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occupied over a period of time is called - (correct answer) -b) absorption.
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10. What is the primary danger of allowing an encroachment? - (correct answer) -c) Over time, the
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encroachment may become an easement by prescription that damages the property's market value.
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11. What statement is TRUE of payment that is made from the real estate recovery fund on account of
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a licensee's acts? - (correct answer) -d) The license is suspended immediately, but will be reissued upon
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reimbursement of the fund, with interest.
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12. A salesperson listed a home and then transferred his license to another broker. Which of the
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following is true? - (correct answer) -d) The listing will stay with the original broker.
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13. A licensee is required to keep the Commission updated with - (correct answer) -a) her current email
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address.
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14. When an owner leases her property, she temporarily relinquishes the right to - (correct answer) -c)
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occupy the property.
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15. Which education requirement can a person leave out when applying for a salesperson license? -
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(correct answer) -a) Evidence of a degree in some form of postsecondary education.
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16. Which of the following is an expense which would be listed on the HUD-1 Uniform Settlement
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Statement? - (correct answer) -b) Title insurance fees
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17. Listing, marketing, facilitating transactions and managing information summarizes the critical skills in
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which of the following? - (correct answer) -d) Real estate brokerage
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18. Which of the following happens when a leased property is sold? - (correct answer) -a) The buyer
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acquires title subject to the lease.
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19. Which of the following is a valid distinction between a corporation and a proprietorship? - (correct
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answer) -a) A corporation has perpetual existence; a proprietorship terminates upon the owner's death.
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20. What type of property is abstract, having no physical existence in itself, other than as evidence of
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one's ownership interest? - (correct answer) -a) Intangible
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