PRINCIPLES OF REAL ESTATE II EVALUATION SHEET 2025/2026
QUESTIONS WITH ANSWERS GUARANTEE A+
✔✔The interest for 11 months on a $15,000 loan at an interest rate of 8% is -
✔✔$1,100 (Step1: 15,000/12mo = 1,250; Step2: 1,250*11mo = 13,750; Step3:
13,750*0.08 = 1,100)
✔✔If a property is sold for $90,000, what commission would be paid to the brokers if the
commission rate is 6%? - ✔✔$5,400 (90,000*0.06)
✔✔8% of 23,000 = - ✔✔$1,840 (23,000*0.08)
✔✔Which is generally recognized as title evidence and can be used to establish
ownership of property - ✔✔Title Insurance
✔✔The premium for title insurance is paid - ✔✔once, upon issuance of the title policy
✔✔A brief history of all the documents affecting title is - ✔✔an abstract of title
✔✔In a will, a bequest is a gift of - ✔✔personal property
✔✔The 10-year statute for adverse possession is normally limited to the acquisition of
how may acres? - ✔✔160
✔✔A deed must be signed by - ✔✔the grantor
✔✔What kind of deed is usually given by someone acting on behalf of the owner i.e.
executor, administrator or a custodian? - ✔✔Special warranty
✔✔Reverse mortgages enable homeowners who are of what age or older to borrow
against the equity in their homes? - ✔✔62
✔✔To comply with the truth-in-lending requirements, the interest rate that should be
used in an advertisement should be - ✔✔the annual percentage rate
✔✔If a contractor needs to get permanent financing to repay a construction loan, he
gets - ✔✔a takeout loan
✔✔What kind of document, issued by the VA, sets a maximum VA loan amount for a
property? - ✔✔Notice of Value
✔✔Three discount points charged by a lender for an FHA loan of $100,000 equal -
✔✔$3,000
, ✔✔In an adjustable-rate mortgage, - ✔✔interest rate changes are tied to an economic
index
✔✔The Texas First-Time Homebuyer Program provides interest rates that are -
✔✔lower than current market rates
✔✔What kind of redemption must the lender be paid the amount in default if the
borrower wants to be reinstated? - ✔✔Equitable
✔✔A power of sale clause gives which party the right to sell the property at auction
without going to court? - ✔✔Trustee
✔✔Current market value is 35,000 & assessed at 100% of value. Tax rate is $4 per
100. Tax due is: - ✔✔$1,400 (Step1: 35,000/100 = 350; Step2: 350*4 = 1,400)
✔✔Interest calculations on a fully amortized loan are computed on which amount -
✔✔Remaining principal balance
✔✔Who typically pays a residential rental locator? - ✔✔Apartment owner
✔✔Which of the following entities licenses auctioneers? - ✔✔Texas Department of
Licensing and Regulation
✔✔Which of the following agencies license property developers? - ✔✔Licensing not
required
✔✔In 2013, what was the primary specialty of Texas REALTORS®? - ✔✔Residential
sales
✔✔Which of these specialties requires a TREC license? - ✔✔Rental locator
✔✔Multiple offers to purchase real estate are not considered competitive bids requiring
an auctioneer's licensure if: - ✔✔all of the material terms of the transaction other than
price are different
✔✔An appraisal may be BEST defined as - ✔✔an opinion of value
✔✔Which of the following agencies license home inspectors? - ✔✔Texas Real Estate
Commission
✔✔Which of the following agencies license escrow officers? - ✔✔Texas Department of
Insurance
QUESTIONS WITH ANSWERS GUARANTEE A+
✔✔The interest for 11 months on a $15,000 loan at an interest rate of 8% is -
✔✔$1,100 (Step1: 15,000/12mo = 1,250; Step2: 1,250*11mo = 13,750; Step3:
13,750*0.08 = 1,100)
✔✔If a property is sold for $90,000, what commission would be paid to the brokers if the
commission rate is 6%? - ✔✔$5,400 (90,000*0.06)
✔✔8% of 23,000 = - ✔✔$1,840 (23,000*0.08)
✔✔Which is generally recognized as title evidence and can be used to establish
ownership of property - ✔✔Title Insurance
✔✔The premium for title insurance is paid - ✔✔once, upon issuance of the title policy
✔✔A brief history of all the documents affecting title is - ✔✔an abstract of title
✔✔In a will, a bequest is a gift of - ✔✔personal property
✔✔The 10-year statute for adverse possession is normally limited to the acquisition of
how may acres? - ✔✔160
✔✔A deed must be signed by - ✔✔the grantor
✔✔What kind of deed is usually given by someone acting on behalf of the owner i.e.
executor, administrator or a custodian? - ✔✔Special warranty
✔✔Reverse mortgages enable homeowners who are of what age or older to borrow
against the equity in their homes? - ✔✔62
✔✔To comply with the truth-in-lending requirements, the interest rate that should be
used in an advertisement should be - ✔✔the annual percentage rate
✔✔If a contractor needs to get permanent financing to repay a construction loan, he
gets - ✔✔a takeout loan
✔✔What kind of document, issued by the VA, sets a maximum VA loan amount for a
property? - ✔✔Notice of Value
✔✔Three discount points charged by a lender for an FHA loan of $100,000 equal -
✔✔$3,000
, ✔✔In an adjustable-rate mortgage, - ✔✔interest rate changes are tied to an economic
index
✔✔The Texas First-Time Homebuyer Program provides interest rates that are -
✔✔lower than current market rates
✔✔What kind of redemption must the lender be paid the amount in default if the
borrower wants to be reinstated? - ✔✔Equitable
✔✔A power of sale clause gives which party the right to sell the property at auction
without going to court? - ✔✔Trustee
✔✔Current market value is 35,000 & assessed at 100% of value. Tax rate is $4 per
100. Tax due is: - ✔✔$1,400 (Step1: 35,000/100 = 350; Step2: 350*4 = 1,400)
✔✔Interest calculations on a fully amortized loan are computed on which amount -
✔✔Remaining principal balance
✔✔Who typically pays a residential rental locator? - ✔✔Apartment owner
✔✔Which of the following entities licenses auctioneers? - ✔✔Texas Department of
Licensing and Regulation
✔✔Which of the following agencies license property developers? - ✔✔Licensing not
required
✔✔In 2013, what was the primary specialty of Texas REALTORS®? - ✔✔Residential
sales
✔✔Which of these specialties requires a TREC license? - ✔✔Rental locator
✔✔Multiple offers to purchase real estate are not considered competitive bids requiring
an auctioneer's licensure if: - ✔✔all of the material terms of the transaction other than
price are different
✔✔An appraisal may be BEST defined as - ✔✔an opinion of value
✔✔Which of the following agencies license home inspectors? - ✔✔Texas Real Estate
Commission
✔✔Which of the following agencies license escrow officers? - ✔✔Texas Department of
Insurance
