PRINCIPLES OF REAL ESTATE II 2025/2026 QUESTIONS WITH
ANSWERS GUARANTEE A+
✔✔A method of valuing a property based on the monetary returns it can be expected to
produce is the:
A. Income approach
B. Cost approach
C. Curable approach
D. Market approach - ✔✔A. Income approach
✔✔Which of the following estimates of value is most likely to provide only a rough
estimate of the value
of the rental property?
A. Cost approach
B. Gross rent multiplier
C. Income approach
D. Market approach - ✔✔B. Gross rent multiplier
✔✔9. A borrower's property serves as collateral while the borrower retains the rights of
possession and
use of it by the process of:
A. Alienation
B. Hypothecation
C. Amortization
D. Acceleration - ✔✔B. Hypothecation
✔✔Truth-in-Lending laws were created primarily to protect:
A. Consumers
B. Lenders
C. Beneficiaries
D. Mortgagees - ✔✔A. Consumers
✔✔The regulations that implement the enforcement of the Truth-in-Lending Act are
known as:
A. Regulation Y
B. Regulation T
C. Regulation Z
D. Regulation L - ✔✔C. Regulation Z
✔✔The right of rescission in credit transactions for home refinancing is ________
business days.
A. 2
B. 3
C. 5
D. 10 - ✔✔B. 3
, ✔✔Laws that limit the amount of interest that can be charged to borrowers are called:
A. Read laws
B. Reserves for default and loan servicing cost
C. Rent laws
D. Usury laws - ✔✔D. Usury laws
✔✔The practice of some lenders not making loans on properties in certain
neighborhoods is known
as:
A. Blockbusting
B. Redlining
C. Canceling
D. Capping - ✔✔B. Redlining
✔✔The secondary mortgage market is:
A. A market in which mortgage loans can be sold to investors
B. A mortgage loan for persons over the age of 65
C. A local lender who offers loans to homebuyers
D. A way to put two mortgages on a house - ✔✔A. A market in which mortgage loans
can be sold to investors
✔✔The Federal National Mortgage Corporation is known as
A. Farmer Mac
B. Freddie Mac
C. Fannie Mae
D. Ginnie Mae - ✔✔C. Fannie Mae
✔✔A blanket mortgage is:
A. Only for people over 68
B. For only one property owned by the homeowner
C. Always used to finance a vacation rental
D. A mortgage that covers more than one property - ✔✔D. A mortgage that covers more
than one property
✔✔The lender was able to foreclose quickly because of
A. The Deed of Trust
B. The term loan
C. The personal loan
D. The regular mortgage - ✔✔A. The Deed of Trust
✔✔The Butterfields redeemed the property before the foreclosure. This is called
A. Statutory redemption
B. Equitable redemption
ANSWERS GUARANTEE A+
✔✔A method of valuing a property based on the monetary returns it can be expected to
produce is the:
A. Income approach
B. Cost approach
C. Curable approach
D. Market approach - ✔✔A. Income approach
✔✔Which of the following estimates of value is most likely to provide only a rough
estimate of the value
of the rental property?
A. Cost approach
B. Gross rent multiplier
C. Income approach
D. Market approach - ✔✔B. Gross rent multiplier
✔✔9. A borrower's property serves as collateral while the borrower retains the rights of
possession and
use of it by the process of:
A. Alienation
B. Hypothecation
C. Amortization
D. Acceleration - ✔✔B. Hypothecation
✔✔Truth-in-Lending laws were created primarily to protect:
A. Consumers
B. Lenders
C. Beneficiaries
D. Mortgagees - ✔✔A. Consumers
✔✔The regulations that implement the enforcement of the Truth-in-Lending Act are
known as:
A. Regulation Y
B. Regulation T
C. Regulation Z
D. Regulation L - ✔✔C. Regulation Z
✔✔The right of rescission in credit transactions for home refinancing is ________
business days.
A. 2
B. 3
C. 5
D. 10 - ✔✔B. 3
, ✔✔Laws that limit the amount of interest that can be charged to borrowers are called:
A. Read laws
B. Reserves for default and loan servicing cost
C. Rent laws
D. Usury laws - ✔✔D. Usury laws
✔✔The practice of some lenders not making loans on properties in certain
neighborhoods is known
as:
A. Blockbusting
B. Redlining
C. Canceling
D. Capping - ✔✔B. Redlining
✔✔The secondary mortgage market is:
A. A market in which mortgage loans can be sold to investors
B. A mortgage loan for persons over the age of 65
C. A local lender who offers loans to homebuyers
D. A way to put two mortgages on a house - ✔✔A. A market in which mortgage loans
can be sold to investors
✔✔The Federal National Mortgage Corporation is known as
A. Farmer Mac
B. Freddie Mac
C. Fannie Mae
D. Ginnie Mae - ✔✔C. Fannie Mae
✔✔A blanket mortgage is:
A. Only for people over 68
B. For only one property owned by the homeowner
C. Always used to finance a vacation rental
D. A mortgage that covers more than one property - ✔✔D. A mortgage that covers more
than one property
✔✔The lender was able to foreclose quickly because of
A. The Deed of Trust
B. The term loan
C. The personal loan
D. The regular mortgage - ✔✔A. The Deed of Trust
✔✔The Butterfields redeemed the property before the foreclosure. This is called
A. Statutory redemption
B. Equitable redemption
