Principles of Real Estate II Final Exam Test Questions and
Answers Rated A
1. The ______________ is the most active in the becomes occupied over a period of time is called
regulation of real estate licensees. - - ANSWER -b) absorption.
ANSWER -d) state government
10. What is the primary danger of allowing an
2. Which of the following is necessary for a deed encroachment? - ANSWER -c) Over time,
of conveyance to be valid? - ANSWER -b) the encroachment may become an easement by
The deed must be in writing prescription that damages the property's market
value.
3. The primary distinction between the legal
concepts of real estate and real property is that - 11. What statement is TRUE of payment that is
ANSWER -a) real property includes made from the real estate recovery fund on
ownership of a bundle of rights. account of a licensee's acts? - ANSWER -d)
The license is suspended immediately, but will be
reissued upon reimbursement of the fund, with
4. An applicant for a salesperson license must - interest.
ANSWER -c) have a finger printing and
background check prior to receiving a license.
12. A salesperson listed a home and then
transferred his license to another broker. Which
5. TRELA makes provisions for - of the following is true? - ANSWER -d) The
ANSWER -c) a prerequisite of a minimum listing will stay with the original broker.
of 15 classroom hours counted toward license
renewal every two years.
13. A licensee is required to keep the
Commission updated with - ANSWER -a)
6. A(n) ______________ is a freehold estate that her current email address.
is limited to the duration of the life of the owner. -
ANSWER -b) life estate
14. When an owner leases her property, she
temporarily relinquishes the right to -
7. What distinguishes a lien from other types of ANSWER -c) occupy the property.
encumbrance? - ANSWER -a) It involves a
monetary claim against the value of a property.
15. Which education requirement can a person
leave out when applying for a salesperson
8. What type of conventional life estate ends with license? - ANSWER -a) Evidence of a
the death of the life estate owner? - degree in some form of postsecondary education.
ANSWER -b) Ordinary life estate
16. Which of the following is an expense which
9. When speaking of real estate market would be listed on the HUD-1 Uniform Settlement
dynamics, the amount of available properties that Statement? - ANSWER -b) Title insurance
1/5
, Principles of Real Estate II Final Exam Test Questions and
Answers Rated A
fees ANSWER -c) The Fair Housing
Amendments Act of 1988.
17. Listing, marketing, facilitating transactions
and managing information summarizes the 25. What type of seller financing allows the seller
critical skills in which of the following? - to receive a junior mortgage from the buyer to
ANSWER -d) Real estate brokerage use to make the payments on the original first
mortgage? - ANSWER -b) Wraparound
mortgage
18. Which of the following happens when a
leased property is sold? - ANSWER -a) The
buyer acquires title subject to the lease. 26. All of the following are ways of specializing in
the real estate brokerage business except? -
ANSWER -b) By area
19. Which of the following is a valid distinction
between a corporation and a proprietorship? -
ANSWER -a) A corporation has perpetual 27. Who are the essential parties involved in an
existence; a proprietorship terminates upon the estate in trust? - ANSWER -d) Trustor,
owner's death. trustee, and beneficiary.
20. What type of property is abstract, having no 28. The purpose of a covenant clause in a deed
physical existence in itself, other than as of conveyance is to - ANSWER -a) state the
evidence of one's ownership interest? - grantor's assurance or warrant to the grantee that
ANSWER -a) Intangible a certain condition or fact concerning the property
is true.
21. In an economic system, supply is defined as -
ANSWER -b) the quantity of a product or 29. The most commonly used deed is the -
service available for sale, lease, or trade at any ANSWER -a) general warranty deed.
given time.
30. Who owns the property in a time-share
22. Which is NOT included in the ownership estate? - ANSWER -b) The property is
bundle of rights? - ANSWER -d) Taxation owned by tenants in common or by a freehold
owner who leases on a time-share basis.
23. Which of the following items are paid in
arrears? - ANSWER -c) Taxes and interest 31. A broker has her license suspended for
violating state license law. In such a case, the
licenses of her three salespeople are -
24. Which of the following laws or rulings ANSWER -b) inactive.
extended discrimination to include gender,
handicapped status, and family status? -
2/5
Answers Rated A
1. The ______________ is the most active in the becomes occupied over a period of time is called
regulation of real estate licensees. - - ANSWER -b) absorption.
ANSWER -d) state government
10. What is the primary danger of allowing an
2. Which of the following is necessary for a deed encroachment? - ANSWER -c) Over time,
of conveyance to be valid? - ANSWER -b) the encroachment may become an easement by
The deed must be in writing prescription that damages the property's market
value.
3. The primary distinction between the legal
concepts of real estate and real property is that - 11. What statement is TRUE of payment that is
ANSWER -a) real property includes made from the real estate recovery fund on
ownership of a bundle of rights. account of a licensee's acts? - ANSWER -d)
The license is suspended immediately, but will be
reissued upon reimbursement of the fund, with
4. An applicant for a salesperson license must - interest.
ANSWER -c) have a finger printing and
background check prior to receiving a license.
12. A salesperson listed a home and then
transferred his license to another broker. Which
5. TRELA makes provisions for - of the following is true? - ANSWER -d) The
ANSWER -c) a prerequisite of a minimum listing will stay with the original broker.
of 15 classroom hours counted toward license
renewal every two years.
13. A licensee is required to keep the
Commission updated with - ANSWER -a)
6. A(n) ______________ is a freehold estate that her current email address.
is limited to the duration of the life of the owner. -
ANSWER -b) life estate
14. When an owner leases her property, she
temporarily relinquishes the right to -
7. What distinguishes a lien from other types of ANSWER -c) occupy the property.
encumbrance? - ANSWER -a) It involves a
monetary claim against the value of a property.
15. Which education requirement can a person
leave out when applying for a salesperson
8. What type of conventional life estate ends with license? - ANSWER -a) Evidence of a
the death of the life estate owner? - degree in some form of postsecondary education.
ANSWER -b) Ordinary life estate
16. Which of the following is an expense which
9. When speaking of real estate market would be listed on the HUD-1 Uniform Settlement
dynamics, the amount of available properties that Statement? - ANSWER -b) Title insurance
1/5
, Principles of Real Estate II Final Exam Test Questions and
Answers Rated A
fees ANSWER -c) The Fair Housing
Amendments Act of 1988.
17. Listing, marketing, facilitating transactions
and managing information summarizes the 25. What type of seller financing allows the seller
critical skills in which of the following? - to receive a junior mortgage from the buyer to
ANSWER -d) Real estate brokerage use to make the payments on the original first
mortgage? - ANSWER -b) Wraparound
mortgage
18. Which of the following happens when a
leased property is sold? - ANSWER -a) The
buyer acquires title subject to the lease. 26. All of the following are ways of specializing in
the real estate brokerage business except? -
ANSWER -b) By area
19. Which of the following is a valid distinction
between a corporation and a proprietorship? -
ANSWER -a) A corporation has perpetual 27. Who are the essential parties involved in an
existence; a proprietorship terminates upon the estate in trust? - ANSWER -d) Trustor,
owner's death. trustee, and beneficiary.
20. What type of property is abstract, having no 28. The purpose of a covenant clause in a deed
physical existence in itself, other than as of conveyance is to - ANSWER -a) state the
evidence of one's ownership interest? - grantor's assurance or warrant to the grantee that
ANSWER -a) Intangible a certain condition or fact concerning the property
is true.
21. In an economic system, supply is defined as -
ANSWER -b) the quantity of a product or 29. The most commonly used deed is the -
service available for sale, lease, or trade at any ANSWER -a) general warranty deed.
given time.
30. Who owns the property in a time-share
22. Which is NOT included in the ownership estate? - ANSWER -b) The property is
bundle of rights? - ANSWER -d) Taxation owned by tenants in common or by a freehold
owner who leases on a time-share basis.
23. Which of the following items are paid in
arrears? - ANSWER -c) Taxes and interest 31. A broker has her license suspended for
violating state license law. In such a case, the
licenses of her three salespeople are -
24. Which of the following laws or rulings ANSWER -b) inactive.
extended discrimination to include gender,
handicapped status, and family status? -
2/5
