Principles of Real Estate II
Final Exam Questions &
Answers(GRADED 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.
15. Which education requirement can a person leave out when applying for a salesperson license? -
ANSWER a) Evidence of a degree in some form of postsecondary education.
16. Which of the following is an expense which would be listed on the HUD-1 Uniform Settlement
Statement? - ANSWER b) Title insurance fees
17. Listing, marketing, facilitating transactions and managing information summarizes the critical
skills in which of the following? - ANSWER d) Real estate brokerage
18. Which of the following happens when a leased property is sold? - ANSWER a) The buyer acquires
title subject to the lease.
19. Which of the following is a valid distinction between a corporation and a proprietorship? -
ANSWER a) A corporation has perpetual existence; a proprietorship terminates upon the owner's
death.
20. What type of property is abstract, having no physical existence in itself, other than as evidence of
one's ownership interest? - ANSWER a) Intangible
Final Exam Questions &
Answers(GRADED 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.
15. Which education requirement can a person leave out when applying for a salesperson license? -
ANSWER a) Evidence of a degree in some form of postsecondary education.
16. Which of the following is an expense which would be listed on the HUD-1 Uniform Settlement
Statement? - ANSWER b) Title insurance fees
17. Listing, marketing, facilitating transactions and managing information summarizes the critical
skills in which of the following? - ANSWER d) Real estate brokerage
18. Which of the following happens when a leased property is sold? - ANSWER a) The buyer acquires
title subject to the lease.
19. Which of the following is a valid distinction between a corporation and a proprietorship? -
ANSWER a) A corporation has perpetual existence; a proprietorship terminates upon the owner's
death.
20. What type of property is abstract, having no physical existence in itself, other than as evidence of
one's ownership interest? - ANSWER a) Intangible
