8/15/25, 5:56 PM Texas Real Estate Finance Final Exam COMPREHENSIVE QUESTIONS WITH MULTIPLE CHOICES |VERIFIED & REVISED AN…
Texas Real Estate Finance Final Exam
COMPREHENSIVE QUESTIONS WITH MULTIPLE
CHOICES |VERIFIED &
REVISED ANSWERS (NEW) 2025 -2026
Why do lenders collect B) To be sure money will be available for tax and insurance
reserve funds at the payments
property closing?
A) To get a higher yield in their
investment
B) To be sure money will be
available for tax and
insurance purposes
C) To have extra money
that will accrue interest
D) To hedge against
increases in taxes or
insurance premiums
The cost recovery period A) 15 years
for land improvements is
how long?
A) 15 years
B) 25 years
C) 27.5 years
D) 30 years
-2… 1/18
,8/15/25, 5:56 PM Texas Real Estate Finance Final Exam COMPREHENSIVE QUESTIONS WITH MULTIPLE CHOICES |VERIFIED & REVISED AN…
Which of the following lease D) Tenant relocation
options would be the least
favorable to the tenant?
A) Right of first refusal
B) Equity participation
C) Lease renewal
D) Tenant relocation
Jim Smith wants to purchase A) 14 days or 10 percent of the time rented
a vacation home and have it
double as an investment.
What is the maximum amount
of time per year that Jim and
his family can stay in the
home and still be able to
take the
depreciation?
A) 14 days or 10 percent of the
time rented
B) 30 days and/or 10
percent of the time rented
C) 45 days with 10
percent of the time
rented
D) 60 days or 10 percent of the
time rented
Fannie Mae and Freddie C) Selling mortgage-backed securities
Mac are able to replenish
their own funds by doing
what?
A) Borrowing from the
Federal Reserve Bank
B) Borrowing from each other
C) Selling mortgage-backed
securities
D) Requesting grant funds
through HUD
-2… 2/18
, 8/15/25, 5:56 PM Texas Real Estate Finance Final Exam COMPREHENSIVE QUESTIONS WITH MULTIPLE CHOICES |VERIFIED & REVISED AN…
Which of the following C) The most complete form of ownership
statements is FALSE about a
life estate?
A) Lasts only as long as
the life of the owner
B) Upon the owner's death,
reverts to the original
transferor, his or her heirs
or some other designee
C) The most complete form of
ownership
D) Can be leased or
sold during the
holder's lifetime
What is the term used for C) Take-out commitment
an agreement between the
borrower and a permanent
lender relative to future
delivery of a takeout loan
upon completion of
construction?
A) Construction contract
B) Building loan agreement
C) Take-out commitment
D) Tri-party agreement
The type of estate that has a D) Estate for years
definite
beginning and ending date
is known as what?
A) Estate at will
B) Estate from year to year
C) Life estate
D) Estate for years
-2… 3/18
Texas Real Estate Finance Final Exam
COMPREHENSIVE QUESTIONS WITH MULTIPLE
CHOICES |VERIFIED &
REVISED ANSWERS (NEW) 2025 -2026
Why do lenders collect B) To be sure money will be available for tax and insurance
reserve funds at the payments
property closing?
A) To get a higher yield in their
investment
B) To be sure money will be
available for tax and
insurance purposes
C) To have extra money
that will accrue interest
D) To hedge against
increases in taxes or
insurance premiums
The cost recovery period A) 15 years
for land improvements is
how long?
A) 15 years
B) 25 years
C) 27.5 years
D) 30 years
-2… 1/18
,8/15/25, 5:56 PM Texas Real Estate Finance Final Exam COMPREHENSIVE QUESTIONS WITH MULTIPLE CHOICES |VERIFIED & REVISED AN…
Which of the following lease D) Tenant relocation
options would be the least
favorable to the tenant?
A) Right of first refusal
B) Equity participation
C) Lease renewal
D) Tenant relocation
Jim Smith wants to purchase A) 14 days or 10 percent of the time rented
a vacation home and have it
double as an investment.
What is the maximum amount
of time per year that Jim and
his family can stay in the
home and still be able to
take the
depreciation?
A) 14 days or 10 percent of the
time rented
B) 30 days and/or 10
percent of the time rented
C) 45 days with 10
percent of the time
rented
D) 60 days or 10 percent of the
time rented
Fannie Mae and Freddie C) Selling mortgage-backed securities
Mac are able to replenish
their own funds by doing
what?
A) Borrowing from the
Federal Reserve Bank
B) Borrowing from each other
C) Selling mortgage-backed
securities
D) Requesting grant funds
through HUD
-2… 2/18
, 8/15/25, 5:56 PM Texas Real Estate Finance Final Exam COMPREHENSIVE QUESTIONS WITH MULTIPLE CHOICES |VERIFIED & REVISED AN…
Which of the following C) The most complete form of ownership
statements is FALSE about a
life estate?
A) Lasts only as long as
the life of the owner
B) Upon the owner's death,
reverts to the original
transferor, his or her heirs
or some other designee
C) The most complete form of
ownership
D) Can be leased or
sold during the
holder's lifetime
What is the term used for C) Take-out commitment
an agreement between the
borrower and a permanent
lender relative to future
delivery of a takeout loan
upon completion of
construction?
A) Construction contract
B) Building loan agreement
C) Take-out commitment
D) Tri-party agreement
The type of estate that has a D) Estate for years
definite
beginning and ending date
is known as what?
A) Estate at will
B) Estate from year to year
C) Life estate
D) Estate for years
-2… 3/18
