TEXAS PRINCIPLES OF REAL ESTATE II EXAM SCRIPT
2025/2026 QUESTIONS WITH ANSWERS GRADED A+
✔✔What law requires meeting of governmental agencies and departments to be open
to the public? - ✔✔The sunshine laws
✔✔The Environmental Protection Agency was created by the National Environmental
Policy Act in 1969. It was created to - ✔✔establish environmental standards for land
use planning
✔✔When did US courts recognize and enforce restrictive covenants to regulate land
use in residential subdivisions? - ✔✔1848
✔✔Important to land control use, the Supreme Court upheld the validity of zoning
ordinances in what year? - ✔✔1926
✔✔What is the maximum period of the highest bid acceptance or rejection by the seller
in the case of a reserve auction? - ✔✔72 hours
✔✔How long does a short sale affect the sellers credit for ? - ✔✔About two years
✔✔What factors do NOT affect the direction a licensee chooses to take? -
✔✔Confession
✔✔What does a lease guarantee? - ✔✔Both clauses 1 and 2
✔✔When a real estate licensee chooses to work with a certain type of property or a
certain type of client, they have chosen to - ✔✔Specialize
✔✔The type of real estate specialization which would require an understanding of
Facility Management is - ✔✔Real estate property management
✔✔What will help a licensee during her process of specialization? - ✔✔If a licensee has
some knowledge, education, background, and life experience in the chosen area of
specialization
✔✔How much time does the sale cycle usually last for an Internet Buyer of real
property? - ✔✔From 8 months to a year or longer
✔✔What does abbreviation REO stand for? - ✔✔Real estate owned properties
✔✔What is the key factor for a buyer while purchasing a farm? - ✔✔Type of prospective
product that buyer wants to produce
, ✔✔Which if the following in NOT a way investors can realize profits in real estate? -
✔✔Inflation
✔✔If the cost of the borrowing is greater than the return how is the leverage described?
- ✔✔Negative
✔✔The (blank) is based on the idea that money available at the present time is worth
more than the same amount in the future, due to its potential earning capacity. -
✔✔Time value of money
✔✔How are property investments usually characterized? - ✔✔Long term, low risk
✔✔Investor Jim is in a syndicate that has asked each member to invest $5,000 for
property that has yet to be identified. What strategy is this type of investment? -
✔✔Blind Pool
✔✔Which act started the REITs? - ✔✔The Real Estate Investment Trust of 1960
✔✔Which if the following is NOT a type of tax deductions available to owners of rental
property that are not available to ordinary income? - ✔✔Appreciation
✔✔Which act eliminated many of the tax advantages for limited partnerships in real
estate investment? - ✔✔The Tax Reform Act of 1986
✔✔Which act created a special tax vehicle called REMIC - ✔✔The Tax Reform Act of
1986
✔✔One of the qualifiers for tax exempt status under feral law for a real estate
investment trust (REIT) is - ✔✔Shares must be owned by at least 100 investors
✔✔A lease automatically terminates under which if the following circumstances? -
✔✔The leased property is foreclosed
✔✔Which if the following doesn't refer to the important features of commercial leases? -
✔✔Long term, ranging up to 40 years
✔✔What does the acronym URLTA stand for? - ✔✔Uniform Residential Landlord and
Tenant Act
✔✔Which aspect of a contract deals with when a tenant takes possession of the
property? - ✔✔Demising Clause
2025/2026 QUESTIONS WITH ANSWERS GRADED A+
✔✔What law requires meeting of governmental agencies and departments to be open
to the public? - ✔✔The sunshine laws
✔✔The Environmental Protection Agency was created by the National Environmental
Policy Act in 1969. It was created to - ✔✔establish environmental standards for land
use planning
✔✔When did US courts recognize and enforce restrictive covenants to regulate land
use in residential subdivisions? - ✔✔1848
✔✔Important to land control use, the Supreme Court upheld the validity of zoning
ordinances in what year? - ✔✔1926
✔✔What is the maximum period of the highest bid acceptance or rejection by the seller
in the case of a reserve auction? - ✔✔72 hours
✔✔How long does a short sale affect the sellers credit for ? - ✔✔About two years
✔✔What factors do NOT affect the direction a licensee chooses to take? -
✔✔Confession
✔✔What does a lease guarantee? - ✔✔Both clauses 1 and 2
✔✔When a real estate licensee chooses to work with a certain type of property or a
certain type of client, they have chosen to - ✔✔Specialize
✔✔The type of real estate specialization which would require an understanding of
Facility Management is - ✔✔Real estate property management
✔✔What will help a licensee during her process of specialization? - ✔✔If a licensee has
some knowledge, education, background, and life experience in the chosen area of
specialization
✔✔How much time does the sale cycle usually last for an Internet Buyer of real
property? - ✔✔From 8 months to a year or longer
✔✔What does abbreviation REO stand for? - ✔✔Real estate owned properties
✔✔What is the key factor for a buyer while purchasing a farm? - ✔✔Type of prospective
product that buyer wants to produce
, ✔✔Which if the following in NOT a way investors can realize profits in real estate? -
✔✔Inflation
✔✔If the cost of the borrowing is greater than the return how is the leverage described?
- ✔✔Negative
✔✔The (blank) is based on the idea that money available at the present time is worth
more than the same amount in the future, due to its potential earning capacity. -
✔✔Time value of money
✔✔How are property investments usually characterized? - ✔✔Long term, low risk
✔✔Investor Jim is in a syndicate that has asked each member to invest $5,000 for
property that has yet to be identified. What strategy is this type of investment? -
✔✔Blind Pool
✔✔Which act started the REITs? - ✔✔The Real Estate Investment Trust of 1960
✔✔Which if the following is NOT a type of tax deductions available to owners of rental
property that are not available to ordinary income? - ✔✔Appreciation
✔✔Which act eliminated many of the tax advantages for limited partnerships in real
estate investment? - ✔✔The Tax Reform Act of 1986
✔✔Which act created a special tax vehicle called REMIC - ✔✔The Tax Reform Act of
1986
✔✔One of the qualifiers for tax exempt status under feral law for a real estate
investment trust (REIT) is - ✔✔Shares must be owned by at least 100 investors
✔✔A lease automatically terminates under which if the following circumstances? -
✔✔The leased property is foreclosed
✔✔Which if the following doesn't refer to the important features of commercial leases? -
✔✔Long term, ranging up to 40 years
✔✔What does the acronym URLTA stand for? - ✔✔Uniform Residential Landlord and
Tenant Act
✔✔Which aspect of a contract deals with when a tenant takes possession of the
property? - ✔✔Demising Clause
