REAL ESTATE PRINCIPLES TEST PAPER 2025/2026
QUESTIONS WITH ANSWERS RATED A+
✔✔community - ✔✔Under community property laws, the property that a person
accumulated prior to marriage is called __ _____ property.
✔✔metes and bounds - ✔✔A _____description must begin and end at the same
identifiable point.
✔✔lot and block - ✔✔recorded lots and blocks are used in the ___ system
✔✔get a survey - ✔✔Which is the BEST way to ensure that there are no
encroachments and verify the boundaries of a parcel of land?
✔✔judgement lien - ✔✔Under which type of lien can both the real property and the
personal property of the debtor be sold to pay the debt?
✔✔real estate tax lien - ✔✔Gordon has defaulted in the payment of several of his debts,
and the court has ordered his property sold to satisfy them. Which type of lien would
have first priority?
✔✔2 year - ✔✔After real estate has been sold by the city or county to satisfy a
delinquent tax lien, the defaulted owner of a homestead usually has a right to redeem
the property within a ___ time limit.
✔✔ad valorem tax exemptions - ✔✔homestead, 65 or older, disability status
✔✔title remains in the sellers name - ✔✔The primary security for the seller under a
contract for deed is
✔✔specific performance - ✔✔After the buyer and seller have signed a sales contract,
the seller changes his mind and defaults. The buyer sues the seller to force him to go
through with the contract. This is known as a suit for
✔✔voidable - ✔✔a contract agreed to under duress is
✔✔multiple listing clause - ✔✔The provision in a listing agreement which gives
additional authority to the broker and obligates the broker to cooperate with and
compensate another broker who might sell the listing is a
✔✔termination - ✔✔The Texas Real Estate License Act requires that every listing
contain a definite ____ date.
, ✔✔Civil Rights Act of 1866 - ✔✔prohibits all discrimination based on race in any real
estate transaction without exception
✔✔$4,000 - ✔✔A person acting as a real estate broker, real estate salesperson, or a
right-of-way agent without a license or registration is guilty of a Class A misdemeanor
that is punishable by a fine of not more than
✔✔during the first discussion of a real estate transaction - ✔✔When must the broker or
salesperson give the seller a written "Information About Brokerage Services" form that
explains agency positions?
✔✔terminate the contract - ✔✔If the Seller's Disclosure Notice is NOT given prior to the
execution of the contract, the purchaser may, within seven days after receiving the
notice
✔✔reconciliation - ✔✔is an appraisal term used to describe the appraiser's analysis and
comparison of the results of each appraisal approach.
✔✔due-on-sale - ✔✔The ___clause in a mortgage instrument would prevent the
assumption of the mortgage by a new purchaser is a(n)
✔✔deed in lieu of foreclosure - ✔✔A "friendly foreclosure" enables a mortgagor to
prevent the mortgagee from taking the property by statutory means. This can be
accomplished by a
✔✔hypothecation - ✔✔The pledging of property as security for payment of a loan
without giving up possession of the property is
✔✔loan to value ratio - ✔✔The amount of a loan expressed as a percentage of the
value of the real estate offered as collateral is known as the
✔✔the buyer and the seller - ✔✔Who can pay discount points charged on a VA-
guaranteed mortgage loan?
✔✔conventional loans - ✔✔Loans that follow guidelines established by Fannie Mae and
Freddie Mac in the secondary market are called
✔✔high LTV - ✔✔Private mortgage insurance is written to insure a lender against loss if
a borrower defaults on a
✔✔requirements for real estate advertising - ✔✔-amount or percentage of down
payment
-terms of repayment, reflecting payment obligations over the full term of the loan,
including any balloon payment
QUESTIONS WITH ANSWERS RATED A+
✔✔community - ✔✔Under community property laws, the property that a person
accumulated prior to marriage is called __ _____ property.
✔✔metes and bounds - ✔✔A _____description must begin and end at the same
identifiable point.
✔✔lot and block - ✔✔recorded lots and blocks are used in the ___ system
✔✔get a survey - ✔✔Which is the BEST way to ensure that there are no
encroachments and verify the boundaries of a parcel of land?
✔✔judgement lien - ✔✔Under which type of lien can both the real property and the
personal property of the debtor be sold to pay the debt?
✔✔real estate tax lien - ✔✔Gordon has defaulted in the payment of several of his debts,
and the court has ordered his property sold to satisfy them. Which type of lien would
have first priority?
✔✔2 year - ✔✔After real estate has been sold by the city or county to satisfy a
delinquent tax lien, the defaulted owner of a homestead usually has a right to redeem
the property within a ___ time limit.
✔✔ad valorem tax exemptions - ✔✔homestead, 65 or older, disability status
✔✔title remains in the sellers name - ✔✔The primary security for the seller under a
contract for deed is
✔✔specific performance - ✔✔After the buyer and seller have signed a sales contract,
the seller changes his mind and defaults. The buyer sues the seller to force him to go
through with the contract. This is known as a suit for
✔✔voidable - ✔✔a contract agreed to under duress is
✔✔multiple listing clause - ✔✔The provision in a listing agreement which gives
additional authority to the broker and obligates the broker to cooperate with and
compensate another broker who might sell the listing is a
✔✔termination - ✔✔The Texas Real Estate License Act requires that every listing
contain a definite ____ date.
, ✔✔Civil Rights Act of 1866 - ✔✔prohibits all discrimination based on race in any real
estate transaction without exception
✔✔$4,000 - ✔✔A person acting as a real estate broker, real estate salesperson, or a
right-of-way agent without a license or registration is guilty of a Class A misdemeanor
that is punishable by a fine of not more than
✔✔during the first discussion of a real estate transaction - ✔✔When must the broker or
salesperson give the seller a written "Information About Brokerage Services" form that
explains agency positions?
✔✔terminate the contract - ✔✔If the Seller's Disclosure Notice is NOT given prior to the
execution of the contract, the purchaser may, within seven days after receiving the
notice
✔✔reconciliation - ✔✔is an appraisal term used to describe the appraiser's analysis and
comparison of the results of each appraisal approach.
✔✔due-on-sale - ✔✔The ___clause in a mortgage instrument would prevent the
assumption of the mortgage by a new purchaser is a(n)
✔✔deed in lieu of foreclosure - ✔✔A "friendly foreclosure" enables a mortgagor to
prevent the mortgagee from taking the property by statutory means. This can be
accomplished by a
✔✔hypothecation - ✔✔The pledging of property as security for payment of a loan
without giving up possession of the property is
✔✔loan to value ratio - ✔✔The amount of a loan expressed as a percentage of the
value of the real estate offered as collateral is known as the
✔✔the buyer and the seller - ✔✔Who can pay discount points charged on a VA-
guaranteed mortgage loan?
✔✔conventional loans - ✔✔Loans that follow guidelines established by Fannie Mae and
Freddie Mac in the secondary market are called
✔✔high LTV - ✔✔Private mortgage insurance is written to insure a lender against loss if
a borrower defaults on a
✔✔requirements for real estate advertising - ✔✔-amount or percentage of down
payment
-terms of repayment, reflecting payment obligations over the full term of the loan,
including any balloon payment
