Texas Real Estate Final Exam with all Correct & 100%
Verified Answers |Actual Complete Update |Already
Graded A+
Personal property may become real property by
the process of:
a. devise.
b. reliction.
c. attachment.
d. alienation. ✔Correct Answer-C. Attachment
If a property generates a negative cash flow, in
order to be an attractive investment to a
prospective purchaser:
a. there must be a substantial down payment.
b. there must be a large depreciable base.
c. there must be a substantial increase in
property value.
d. there must be little deferred maintenance. ✔Correct Answer-C. There must be a substantial
increase in property value
The closed sales price of an income property
divided by its gross monthly rent equals the:
a. estimated market value.
b. capitalization rate.
c. gross income multiplier.
d. gross rent multiplier ✔Correct Answer-D. Gross rent multipier
What is 75% of $250,000?
a. $187,500
b. $182,500
c. $62,500
d. none of the above ✔Correct Answer-A. $187,000
Racial discrimination under the Civil Rights
Act of 1866 is enforced by:
,a. local jurisdiction.
b. state court.
c. federal court.
d. justice of the peace court. ✔Correct Answer-C. Federal court
Under eminent domain, if the parties cannot
agree to property value, which type of lawsuit
will be filed by a city to take the property for
public use?
a. annexation
b. injunction
c. condemnation
d. specific performance ✔Correct Answer-C. Condemnation
The term that describes the percentage of the
appraised value of a property that a lender will
finance is called:
a. loan-to-value ratio.
b. owner's equity.
c. certificate of reasonable value.
d. capital investment ✔Correct Answer-A. Loan-to-Value
Abby is purchasing a home with a mortgage
loan and is paying for an appraisal of the property.
The appraisal is made to determine:
a. if Abby got a good deal.
b. if the seller had the house priced right.
c. if the value of the collateral satisfies the
lender's underwriting guidelines for the
loan.
d. whether the buyer's financing requirements
meet the underwriting guidelines for the
loan ✔Correct Answer-C. if the value of the collateral satisfies the
lender's underwriting guidelines for the
loan.
The best definition of a material fact is that it:
a. reveals only information about the physical
condition of a property.
b. is an agreed upon condition of the
, purchase agreement.
c. is a factor a builder considers when
selecting building materials.
d. is anything important to any person
making a decision. ✔Correct Answer-D. is anything important to any person making a
decision.
Which of the following is a government right
in land?
a. eminent domain by a retail center
b. eminent domain by a public utility company
c. inheritance by the state when a person dies
without a will
d. taking a property by condemnation ✔Correct Answer-B. eminent domain by a public utility
company
Market data approach appraising may require
adjustments of sold comparables by an
appraiser for all of the following EXCEPT:
a. sale date of comparable.
b. replacement cost of structure.
c. financing made available by seller.
d. lot size and location. ✔Correct Answer-B. replacement cost of structure
A contract that was signed by a minor is
a. voidable by the minor, but not by the other
party.
b. voidable by either party.
c. void.
d. invalid and unenforceable ✔Correct Answer-
Under the federal tax code, a broker/salesperson
agreement must contain all of the following
EXCEPT
a. the commission arrangements between the
broker and the salesperson.
b. that the salesperson must pay his or her own
licensing fees.
c. that the salesperson is free to work on his or
her own work schedule.
Verified Answers |Actual Complete Update |Already
Graded A+
Personal property may become real property by
the process of:
a. devise.
b. reliction.
c. attachment.
d. alienation. ✔Correct Answer-C. Attachment
If a property generates a negative cash flow, in
order to be an attractive investment to a
prospective purchaser:
a. there must be a substantial down payment.
b. there must be a large depreciable base.
c. there must be a substantial increase in
property value.
d. there must be little deferred maintenance. ✔Correct Answer-C. There must be a substantial
increase in property value
The closed sales price of an income property
divided by its gross monthly rent equals the:
a. estimated market value.
b. capitalization rate.
c. gross income multiplier.
d. gross rent multiplier ✔Correct Answer-D. Gross rent multipier
What is 75% of $250,000?
a. $187,500
b. $182,500
c. $62,500
d. none of the above ✔Correct Answer-A. $187,000
Racial discrimination under the Civil Rights
Act of 1866 is enforced by:
,a. local jurisdiction.
b. state court.
c. federal court.
d. justice of the peace court. ✔Correct Answer-C. Federal court
Under eminent domain, if the parties cannot
agree to property value, which type of lawsuit
will be filed by a city to take the property for
public use?
a. annexation
b. injunction
c. condemnation
d. specific performance ✔Correct Answer-C. Condemnation
The term that describes the percentage of the
appraised value of a property that a lender will
finance is called:
a. loan-to-value ratio.
b. owner's equity.
c. certificate of reasonable value.
d. capital investment ✔Correct Answer-A. Loan-to-Value
Abby is purchasing a home with a mortgage
loan and is paying for an appraisal of the property.
The appraisal is made to determine:
a. if Abby got a good deal.
b. if the seller had the house priced right.
c. if the value of the collateral satisfies the
lender's underwriting guidelines for the
loan.
d. whether the buyer's financing requirements
meet the underwriting guidelines for the
loan ✔Correct Answer-C. if the value of the collateral satisfies the
lender's underwriting guidelines for the
loan.
The best definition of a material fact is that it:
a. reveals only information about the physical
condition of a property.
b. is an agreed upon condition of the
, purchase agreement.
c. is a factor a builder considers when
selecting building materials.
d. is anything important to any person
making a decision. ✔Correct Answer-D. is anything important to any person making a
decision.
Which of the following is a government right
in land?
a. eminent domain by a retail center
b. eminent domain by a public utility company
c. inheritance by the state when a person dies
without a will
d. taking a property by condemnation ✔Correct Answer-B. eminent domain by a public utility
company
Market data approach appraising may require
adjustments of sold comparables by an
appraiser for all of the following EXCEPT:
a. sale date of comparable.
b. replacement cost of structure.
c. financing made available by seller.
d. lot size and location. ✔Correct Answer-B. replacement cost of structure
A contract that was signed by a minor is
a. voidable by the minor, but not by the other
party.
b. voidable by either party.
c. void.
d. invalid and unenforceable ✔Correct Answer-
Under the federal tax code, a broker/salesperson
agreement must contain all of the following
EXCEPT
a. the commission arrangements between the
broker and the salesperson.
b. that the salesperson must pay his or her own
licensing fees.
c. that the salesperson is free to work on his or
her own work schedule.
