TEXAS PRINCIPLES OF REAL ESTATE II EXAM 2025/2026
QUESTIONS WITH ANSWERS GRADED A+
✔✔which of the following combines and replaces the final truth-in-lending disclosure
and the HUD-1? - ✔✔the closing disclosure
✔✔which of the following conditions must be met for a REIT? - ✔✔at least 75% of the
REIT's total assets must be invested in real estate assets and cash
✔✔leverage refers to the balance between: - ✔✔monies owed against borrowed funds
and income received as a return on investment
✔✔after a property is sold at auction, what may the owner/tenant of the property face? -
✔✔if the former property owner does not move off the property after it is sold, he or she
will be served with an eviction notice from the sheriff's office
✔✔the federal reserve system does not directly control which of these? - ✔✔all of these
are correct
national production
levels of employment
inflation
✔✔general warranty, special warranty, and quitclaim are all forms of: - ✔✔deeds
✔✔________________________ potects parties with financial interests in a piece of
property from losses associated with the title defects or problems with the enforcement
of liens against the property - ✔✔title insurance
✔✔the information in a cerificate of title often has several sections to it, including all of
these, EXCEPT for which of these? - ✔✔credit history of the buyer
✔✔CFPB stands for: - ✔✔Consumer Financial Protection Bureau
✔✔how many hours must an applicant provide that are acceptable and verifiable
appraisal experience acquired over a minimum of 12 months? - ✔✔1,500 hours
✔✔which of the following replaced the initial truth-in-lending disclosure and the good
faith estimate - ✔✔the loan estimate
, ✔✔while they can happen at the same time, consummation is a legally distinct point in
time where the borrower: - ✔✔becomes contractually obligated to the lender (and not to
the seller of the property)
✔✔the rules for client trust accounts are ___________________________ to those
used for real estate brokers. - ✔✔very similar, but not identical
✔✔which are the two means used to altat a deed restriction? - ✔✔waiver and judicial
✔✔when a court order is used by a lessor to evict a lessee and the lessee is physically
removed from the property it is called: - ✔✔actual eviction
✔✔which of the following is not an effective way to prevent errors? - ✔✔E&O insurance
✔✔a property's assessed value is... - ✔✔all of the answers are correct
the lower of its sreal market value or its maximum assessed value
determined by multiplying the property's appraised value by an assessment ratio
a fixed percentage of the property's fair market value
✔✔what is the basic formula for determining the proration of fees? - ✔✔tax or fee rate x
remaining days or months = tax or fee owed
✔✔which of the following objective values means the value of a piece of property will
rise or fall because of a future benefit or a future complication? - ✔✔anticipation
✔✔if the sale, transfer, purchase, or acquisition agreement transfers or sells an interest
in land or in a mortgage or other lien vested according to the real property records in the
failed depository institution, which of the following is accurate? - ✔✔a recorded affidavit
or memorandum under this section is constructive notice of the transfer or sale
✔✔the real estate settlement procedures act (RESPA): - ✔✔outlaws kickbacks that
increase the cost of settlement services
requires that consumers receive disclosures at various times in the transaction
✔✔before depreciation deduction can be determined, a value of the property, called
__________, needs to be determined - ✔✔basis
QUESTIONS WITH ANSWERS GRADED A+
✔✔which of the following combines and replaces the final truth-in-lending disclosure
and the HUD-1? - ✔✔the closing disclosure
✔✔which of the following conditions must be met for a REIT? - ✔✔at least 75% of the
REIT's total assets must be invested in real estate assets and cash
✔✔leverage refers to the balance between: - ✔✔monies owed against borrowed funds
and income received as a return on investment
✔✔after a property is sold at auction, what may the owner/tenant of the property face? -
✔✔if the former property owner does not move off the property after it is sold, he or she
will be served with an eviction notice from the sheriff's office
✔✔the federal reserve system does not directly control which of these? - ✔✔all of these
are correct
national production
levels of employment
inflation
✔✔general warranty, special warranty, and quitclaim are all forms of: - ✔✔deeds
✔✔________________________ potects parties with financial interests in a piece of
property from losses associated with the title defects or problems with the enforcement
of liens against the property - ✔✔title insurance
✔✔the information in a cerificate of title often has several sections to it, including all of
these, EXCEPT for which of these? - ✔✔credit history of the buyer
✔✔CFPB stands for: - ✔✔Consumer Financial Protection Bureau
✔✔how many hours must an applicant provide that are acceptable and verifiable
appraisal experience acquired over a minimum of 12 months? - ✔✔1,500 hours
✔✔which of the following replaced the initial truth-in-lending disclosure and the good
faith estimate - ✔✔the loan estimate
, ✔✔while they can happen at the same time, consummation is a legally distinct point in
time where the borrower: - ✔✔becomes contractually obligated to the lender (and not to
the seller of the property)
✔✔the rules for client trust accounts are ___________________________ to those
used for real estate brokers. - ✔✔very similar, but not identical
✔✔which are the two means used to altat a deed restriction? - ✔✔waiver and judicial
✔✔when a court order is used by a lessor to evict a lessee and the lessee is physically
removed from the property it is called: - ✔✔actual eviction
✔✔which of the following is not an effective way to prevent errors? - ✔✔E&O insurance
✔✔a property's assessed value is... - ✔✔all of the answers are correct
the lower of its sreal market value or its maximum assessed value
determined by multiplying the property's appraised value by an assessment ratio
a fixed percentage of the property's fair market value
✔✔what is the basic formula for determining the proration of fees? - ✔✔tax or fee rate x
remaining days or months = tax or fee owed
✔✔which of the following objective values means the value of a piece of property will
rise or fall because of a future benefit or a future complication? - ✔✔anticipation
✔✔if the sale, transfer, purchase, or acquisition agreement transfers or sells an interest
in land or in a mortgage or other lien vested according to the real property records in the
failed depository institution, which of the following is accurate? - ✔✔a recorded affidavit
or memorandum under this section is constructive notice of the transfer or sale
✔✔the real estate settlement procedures act (RESPA): - ✔✔outlaws kickbacks that
increase the cost of settlement services
requires that consumers receive disclosures at various times in the transaction
✔✔before depreciation deduction can be determined, a value of the property, called
__________, needs to be determined - ✔✔basis
