TEXAS SAE REAL ESTATE INVESTMENT TEST FINAL
EXAM AND PRACTICE EXAM QUESTIONS 2025
COMPLETE EXAM QUESTIONS WITH DETAILED
VERIFIED ANSWERS (100% CORRECT ANSWERS)
/ALREADY GRADED A+/ LATEST EXAM!!!
If a borrower fails to keep homeowners insurance of the
collateral property, what actions can the lender take? -
Answer-Place Lender-aquired insurance on the property
and bill the borrower
Leases my be terminated by expiration, eviction or
______? - Answer-Mutual Agreement
is a dynamic risk - Answer-Market Change
How many dwelling units does a commercial residential
property have - Answer-5 or more
the estate would need to be worth _____________ to be
subject to estate tax. - Answer-$11 million
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With this arrangement, the developer preleases to a
financially strong tenant to build a structure to the tenant's
specifications. This arrangement assures the tenant that
they will have the space they require when needed and it
assures the owner/builder that the space will be fully
leased upon completion. - Answer-Build to suit
Regional shopping center lot building size - Answer-40-
100 acres and average size of 591825 sq ft
the ease with which an asset can be converted into cash -
Answer-Liquidity
Formula used to calculate gross rental income for an office
building - Answer-Productive square feet x rental rate per
square foot = gross rental rate
a REIT that earns income for its investors through rent
collection or the sale of the properties in their portfolio -
Answer-Equity REIT
Income
capitalization technique; value is estimated
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by dividing the net operating
income by the overall capitalization rate. Coverts a single
years expected income into a market value - Answer-
Direct Capitalization Method
When a land trust expires, the trustee must either extend
the trust term or sell the real estate and ______. - Answer-
Give the proceeds to the beneficiary
the amount of money you have now - Answer-Present
value
A legal action to compel a party to carry out the terms of a
contract. - Answer-Specific Performance
A lease in which the tenant or lessee is responsible for
paying a portion of or all of the common expenses related
to real estate ownership, in addition to base rent. -
Answer-Triple Net Lease
lease in which the tenant pays some or all of the operating
expenses of the property in addition to rent - Answer-Net
Lease