PRINCIPLES OF REAL ESTATE 2 Champions
Exam Questions and Correct Answers Latest
Versions 2025 GRADED A+
A building certification program for properties
that are "green" - ✔✔✔ ANSWER LEED
A Farm and Ranch broker should have knowledge on - ✔✔✔ ANSWER
A.) Mineral Rights
B.) Water Rights
C.) Surface Leases
D.) Easements
E.) Farm and Ranch Equipment
A lease for a period of more than one year must be - ✔✔✔ ANSWER in
writing to comply with the Statute of Frauds
a lease in which the payments begin at a lower, fixed rate, but gradually
increase
as the lease matures. - ✔✔✔ ANSWER Graduated lease -
a lease in which the tenant pays rent plus such expenses as taxes,
insurance, repairs, utilities, etc. - ✔✔✔ ANSWER Net lease-
a lease of property where the landlord pays charges regularly incurred
in ownership, such as taxes, insurance, utilities, and repairs. - ✔✔✔
ANSWER Gross lease -
a lease that renews itself automatically for like periods of time - ✔✔✔
ANSWER Periodic tenancy -
,a lease with a definite beginning date and definite ending date - ✔✔✔
ANSWER Estate for years -
a leasehold in which a tenant occupies real estate with the permission
of the owner for an uncertain or unspecified length of time. - ✔✔✔
ANSWER Tenancy at will -
A loan with no discount points is known as a - ✔✔✔ ANSWER "par
loan"
A major difference between mortgage companies and regulated
lenders is - ✔✔✔ ANSWER mortgage companies rely on commercial
banks
A married couple can have a tax-free capital gain on the sale of real
property up to - ✔✔✔ ANSWER $500,000
A mortgage loan originator must provide, in a clear and concise form,
an estimate of the amount of settlement charges the borrower is likely
to pay. - ✔✔✔ ANSWER Loan Estimate (LE)
A person who acquires title to property under a will it is said to have
acquired - ✔✔✔ ANSWER title by devise and devisee.
a person, corporation or firm, not otherwise in banking, that provides
its own funds for mortgage financing as opposed to savings and loan
associations or commercial banks that use other people's money
(depositors) to originate mortgage loans. - ✔✔✔ ANSWER MORTGAGE
BANKERS
a pledge of real estate as security for repayment of a debt - ✔✔✔
ANSWER mortgage
a property owner obtains a certificate much like an automobile title
that is recorded in the public records - ✔✔✔ ANSWER Torrens System,
A property's value and desirability is determined by the level of - ✔✔✔
ANSWER preventive maintenance
,A tenant who fails to move out when the lease expires, - ✔✔✔
ANSWER Holdover tenant -
A(n) is a lease of property where the landlord pays charges
regularly incurred in ownership, such as taxes, insurance, utilities, and
repairs. The tenant pays only rent.
a. Graduated lease
b. Net lease
c. Lease and take back
d. Gross lease - ✔✔✔ ANSWER d. Gross lease
Acronym for Characteristics of Value - ✔✔✔ ANSWER D.U.S.T.
Acronym for Governments rights in land - ✔✔✔ ANSWER PETE
Ad valorem - ✔✔✔ ANSWER according to value
Additional capital or property included in a transaction to even out the
exchange is called .
a. capital gain
b. a syndicate
c. gross potential income
d. boot - ✔✔✔ ANSWER d. boot
Additional capital or property included in a transaction to even out the
exchange is called - ✔✔✔ ANSWER boot
all of the estate devised or bequeathed by the will transfers
immediately to the devisees or legatees named - ✔✔✔ ANSWER will
allows for the indirect investment in mortgages through the sale of
, securities - ✔✔✔ ANSWER Real Estate Mortgage Investment Conduit
(REMIC)
allows the tenant to buy the property at a preset price and terms for a
given period of time.
Also called a lease with an option to buy - ✔✔✔ ANSWER Lease option
-
Amount of money deposited by a prospective buyer as evidence of
good faith. - ✔✔✔ ANSWER Earnest Money Deposit
An places a limit on the amount the interest
rate can increase or decrease at each adjustment date. - ✔✔✔
ANSWER Interest-rate Caps -
an auctioneer is involved in any part of a real estate transaction beyond
calling at auction, - ✔✔✔ ANSWER he or she must be a licensed
individual.
An estate where there is possession, but not ownership - ✔✔✔
ANSWER Leasehold estate -
An individual can have a tax-free capital gain on the sale of real
property up to - ✔✔✔ ANSWER $250,000
An individual who dies leaving a valid will is said to have died
- ✔✔✔ ANSWER testate
An individual who inherits property by intestate succession acquires
title by descent, and is known as a - ✔✔✔ ANSWER
descendant
An individual who receives property in this manner is said to have
acquired the property by - ✔✔✔ ANSWER descent
An organization that advocates on the part of
Exam Questions and Correct Answers Latest
Versions 2025 GRADED A+
A building certification program for properties
that are "green" - ✔✔✔ ANSWER LEED
A Farm and Ranch broker should have knowledge on - ✔✔✔ ANSWER
A.) Mineral Rights
B.) Water Rights
C.) Surface Leases
D.) Easements
E.) Farm and Ranch Equipment
A lease for a period of more than one year must be - ✔✔✔ ANSWER in
writing to comply with the Statute of Frauds
a lease in which the payments begin at a lower, fixed rate, but gradually
increase
as the lease matures. - ✔✔✔ ANSWER Graduated lease -
a lease in which the tenant pays rent plus such expenses as taxes,
insurance, repairs, utilities, etc. - ✔✔✔ ANSWER Net lease-
a lease of property where the landlord pays charges regularly incurred
in ownership, such as taxes, insurance, utilities, and repairs. - ✔✔✔
ANSWER Gross lease -
a lease that renews itself automatically for like periods of time - ✔✔✔
ANSWER Periodic tenancy -
,a lease with a definite beginning date and definite ending date - ✔✔✔
ANSWER Estate for years -
a leasehold in which a tenant occupies real estate with the permission
of the owner for an uncertain or unspecified length of time. - ✔✔✔
ANSWER Tenancy at will -
A loan with no discount points is known as a - ✔✔✔ ANSWER "par
loan"
A major difference between mortgage companies and regulated
lenders is - ✔✔✔ ANSWER mortgage companies rely on commercial
banks
A married couple can have a tax-free capital gain on the sale of real
property up to - ✔✔✔ ANSWER $500,000
A mortgage loan originator must provide, in a clear and concise form,
an estimate of the amount of settlement charges the borrower is likely
to pay. - ✔✔✔ ANSWER Loan Estimate (LE)
A person who acquires title to property under a will it is said to have
acquired - ✔✔✔ ANSWER title by devise and devisee.
a person, corporation or firm, not otherwise in banking, that provides
its own funds for mortgage financing as opposed to savings and loan
associations or commercial banks that use other people's money
(depositors) to originate mortgage loans. - ✔✔✔ ANSWER MORTGAGE
BANKERS
a pledge of real estate as security for repayment of a debt - ✔✔✔
ANSWER mortgage
a property owner obtains a certificate much like an automobile title
that is recorded in the public records - ✔✔✔ ANSWER Torrens System,
A property's value and desirability is determined by the level of - ✔✔✔
ANSWER preventive maintenance
,A tenant who fails to move out when the lease expires, - ✔✔✔
ANSWER Holdover tenant -
A(n) is a lease of property where the landlord pays charges
regularly incurred in ownership, such as taxes, insurance, utilities, and
repairs. The tenant pays only rent.
a. Graduated lease
b. Net lease
c. Lease and take back
d. Gross lease - ✔✔✔ ANSWER d. Gross lease
Acronym for Characteristics of Value - ✔✔✔ ANSWER D.U.S.T.
Acronym for Governments rights in land - ✔✔✔ ANSWER PETE
Ad valorem - ✔✔✔ ANSWER according to value
Additional capital or property included in a transaction to even out the
exchange is called .
a. capital gain
b. a syndicate
c. gross potential income
d. boot - ✔✔✔ ANSWER d. boot
Additional capital or property included in a transaction to even out the
exchange is called - ✔✔✔ ANSWER boot
all of the estate devised or bequeathed by the will transfers
immediately to the devisees or legatees named - ✔✔✔ ANSWER will
allows for the indirect investment in mortgages through the sale of
, securities - ✔✔✔ ANSWER Real Estate Mortgage Investment Conduit
(REMIC)
allows the tenant to buy the property at a preset price and terms for a
given period of time.
Also called a lease with an option to buy - ✔✔✔ ANSWER Lease option
-
Amount of money deposited by a prospective buyer as evidence of
good faith. - ✔✔✔ ANSWER Earnest Money Deposit
An places a limit on the amount the interest
rate can increase or decrease at each adjustment date. - ✔✔✔
ANSWER Interest-rate Caps -
an auctioneer is involved in any part of a real estate transaction beyond
calling at auction, - ✔✔✔ ANSWER he or she must be a licensed
individual.
An estate where there is possession, but not ownership - ✔✔✔
ANSWER Leasehold estate -
An individual can have a tax-free capital gain on the sale of real
property up to - ✔✔✔ ANSWER $250,000
An individual who dies leaving a valid will is said to have died
- ✔✔✔ ANSWER testate
An individual who inherits property by intestate succession acquires
title by descent, and is known as a - ✔✔✔ ANSWER
descendant
An individual who receives property in this manner is said to have
acquired the property by - ✔✔✔ ANSWER descent
An organization that advocates on the part of
