Principles of Real Estate 2
Exam 2 Questions &
Answers!!
A Habendum Clause - ANSWER "To have and to hold for the life of the guarantee"
The disposition stage - ANSWER The stage of land development when utilities are installed, parks are
constructed, marketing programs are initiated, and title to individual parcels is transferred as lots are
sold for construction
What purpose does a REIT use funds from investors? - ANSWER To purchase both real estate and
mortgages
The effective term of a deed restriction may be extended with the consent of - ANSWER a majority
of the owners in a subdivision
Through a restrictive covenant in a deed, a developer may establish restrictions on the right to -
ANSWER use of land
In order to allow uses of property deemed desirable for public convenience but only marginally
acceptable in a specific zone, a planning and zoning commission can grant a - ANSWER Conditional-
use permit
True or False - ANSWER A property managers collection policy should be firm and consistent
The hiring and supervising of employees who perform maintenance and other services generally is
the responsibility of - ANSWER The property manager
The budget should take into consideration the owners long range plans for the property and must
contain an estimate of - ANSWER income and expenses
, A ground lease is usually - ANSWER long term lease
True or False - ANSWER In an actual eviction, the landlord files a suit for possession to have the
tenant removed from the premises
If there are no smoke alarms in a leased residence, the tenant may - ANSWER Request one from the
landlord
Estate for years - ANSWER Definite fixed period of time
Debit - ANSWER Something that is owed
The fees to the county clerk to record the deed are paid by - ANSWER The buyer
The borrower must be provided the closing disclosure at least how many business days before
closing - ANSWER three
If a sale closing in escrow cannot be consummated because the seller's title cannot be cleared the
escrow agent - ANSWER Reinstate parties back to their former status as if no sale occured
The seller owes $2,400 in taxes for the current year. With a May 28 closing date and using a calendar
year, the daily proration amount is? - ANSWER $6.575
A house appraised for tax purposes at $90,000 is taxed at an annual rate of $2.50 per each $100 of
appraised value. The yearly tax is - ANSWER $2,250
Title Insurance - ANSWER Generally recognized as title evidence and can be used to establish
ownership of property
The premium for title insurance is paid - ANSWER once, upon issuance of the title policy.
Abstract of Title - ANSWER Brief history of all the documents affecting title
Exam 2 Questions &
Answers!!
A Habendum Clause - ANSWER "To have and to hold for the life of the guarantee"
The disposition stage - ANSWER The stage of land development when utilities are installed, parks are
constructed, marketing programs are initiated, and title to individual parcels is transferred as lots are
sold for construction
What purpose does a REIT use funds from investors? - ANSWER To purchase both real estate and
mortgages
The effective term of a deed restriction may be extended with the consent of - ANSWER a majority
of the owners in a subdivision
Through a restrictive covenant in a deed, a developer may establish restrictions on the right to -
ANSWER use of land
In order to allow uses of property deemed desirable for public convenience but only marginally
acceptable in a specific zone, a planning and zoning commission can grant a - ANSWER Conditional-
use permit
True or False - ANSWER A property managers collection policy should be firm and consistent
The hiring and supervising of employees who perform maintenance and other services generally is
the responsibility of - ANSWER The property manager
The budget should take into consideration the owners long range plans for the property and must
contain an estimate of - ANSWER income and expenses
, A ground lease is usually - ANSWER long term lease
True or False - ANSWER In an actual eviction, the landlord files a suit for possession to have the
tenant removed from the premises
If there are no smoke alarms in a leased residence, the tenant may - ANSWER Request one from the
landlord
Estate for years - ANSWER Definite fixed period of time
Debit - ANSWER Something that is owed
The fees to the county clerk to record the deed are paid by - ANSWER The buyer
The borrower must be provided the closing disclosure at least how many business days before
closing - ANSWER three
If a sale closing in escrow cannot be consummated because the seller's title cannot be cleared the
escrow agent - ANSWER Reinstate parties back to their former status as if no sale occured
The seller owes $2,400 in taxes for the current year. With a May 28 closing date and using a calendar
year, the daily proration amount is? - ANSWER $6.575
A house appraised for tax purposes at $90,000 is taxed at an annual rate of $2.50 per each $100 of
appraised value. The yearly tax is - ANSWER $2,250
Title Insurance - ANSWER Generally recognized as title evidence and can be used to establish
ownership of property
The premium for title insurance is paid - ANSWER once, upon issuance of the title policy.
Abstract of Title - ANSWER Brief history of all the documents affecting title
