1 Exampromax - Stuvia US 2025/2026
Principles of Real Estate 2 Practice Test Aceable
Questions and Answers (100% Correct
Answers) Already Graded A+
What term describes a property that is owned by a lender because a third-
party buyer couldn't be found at a foreclosure auction?
Ans: REO
A type of SPV that holds commercial and residential mortgages in trust,
assembles said mortgages into pools based on risk, and issues bonds
(securities) on these pools to sell to investors in the secondary mortgage
© 2025 Assignment Expert
market is a(n):
Ans: Real Estate Mortgage Investment Conduit (REMIC)
Exampromax - Stuvia US
Julio considers leasing an apartment unit from Bruno, the landlord of an
apartment complex. Bruno really wants Julio to sign so the complex doesn't
have vacancies. To convince Julio, Bruno offers to lower Julio's rent $75 per
month for the first six months of Julio's lease. Bruno is offering Julio:
Ans: a concession
How would you find the interest for a $12,000 loan with an interest rate of
10% over thirteen months?
Ans: ($12,000 x 10%) / 12 X 13 = interest
What is the name for the sworn statement in which the seller assures the
title company (and the buyer) that there are no liens, unpaid bills for repairs
or improvements, or undisclosed defects in the title?
Ans: affidavit as to debts and lients
What act requires that applicable contracts have a 7 day "cooling-off"
period for buyers during which buyers can cancel their contract for any
reason and get their money back?
Ans: Interstate Land Sales Full Disclosure Act
, 2 Exampromax - Stuvia US 2025/2026
Which appraisal principle states that maximum value is realized when land
use is in harmony with surrounding standards?
Ans: Principle of Conformity
Which is NOT one of the three approaches to value?
Ans: anticipation
What is the difference between actual and constructive notice?
Ans: Actual notice is direct or first-hand knowledge; constructive notice is the
assumption of knowledge because that knowledge is in the public record.
How many feet are in a mile?
© 2025 Assignment Expert
Ans: 5,280
Exampromax - Stuvia US
In terms of syndicates, what is a general partnership?
Ans: A partnership where all members equally share responsibilities, profits, and
losses.
After the bank failures in the 1920s and 1930s, Congress created what
institution to insure customer deposits, supervise financial institutions for
safety and soundness, make large financial institutions resolvable, and
manage receiverships?
Ans: FDIC
What does "REO" stand for?
Ans: Real Estate Owned
A buyer purchased property from a seller. Shortly after closing, the buyer
discovered that there were serious flaws in the title that made it unlikely that
the property could be resold in the future. What is the buyer's best course of
action?
Ans: Because the buyer has accepted the deed, the only recourse is to sue the
seller under any covenants contained in the deed.
Which of the following would be used to modify a will?
, 3 Exampromax - Stuvia US 2025/2026
Ans: a codicil
On the Closing Disclosure, prorated interest paid before closing on an
existing assumed mortgage is a:
Ans: credit to the buyer and debit to the seller
Landlords MUST allow tenants with disabilities to make reasonable
modifications to a property so they can enjoy it. But there are also
unreasonable modifications a landlord does NOT have to allow; all of the
following are unreasonable modifications EXCEPT:
Ans: modifications made at the tenant's expense
© 2025 Assignment Expert
What is one way investors can get a break on taxes?
Ans: Investors can claim tax-sheltered income through depreciation expenses.
Exampromax - Stuvia US
For whom is it most important to be aware of and comply with state and
federal fair housing laws?
Ans: ALL real estate license holders
Which of the following is FALSE about a sales comparison approach?
Ans: A sales comparison approach does NOT utilize the principle of contribution
the landlord can file suit for possession
Ans: A tenant remains in possession of a landlord's property without either a
current lease agreement or the landlord's approval. Which statement is TRUE in
this situation?
RESPA
Ans: What protects consumers from abusive settlement practices and provides
them with information pertinent to all settlement costs?
The agent needs to furnish the buyers with a pamphlet approved by the
EPA concerning lead based paint prior to closing
Principles of Real Estate 2 Practice Test Aceable
Questions and Answers (100% Correct
Answers) Already Graded A+
What term describes a property that is owned by a lender because a third-
party buyer couldn't be found at a foreclosure auction?
Ans: REO
A type of SPV that holds commercial and residential mortgages in trust,
assembles said mortgages into pools based on risk, and issues bonds
(securities) on these pools to sell to investors in the secondary mortgage
© 2025 Assignment Expert
market is a(n):
Ans: Real Estate Mortgage Investment Conduit (REMIC)
Exampromax - Stuvia US
Julio considers leasing an apartment unit from Bruno, the landlord of an
apartment complex. Bruno really wants Julio to sign so the complex doesn't
have vacancies. To convince Julio, Bruno offers to lower Julio's rent $75 per
month for the first six months of Julio's lease. Bruno is offering Julio:
Ans: a concession
How would you find the interest for a $12,000 loan with an interest rate of
10% over thirteen months?
Ans: ($12,000 x 10%) / 12 X 13 = interest
What is the name for the sworn statement in which the seller assures the
title company (and the buyer) that there are no liens, unpaid bills for repairs
or improvements, or undisclosed defects in the title?
Ans: affidavit as to debts and lients
What act requires that applicable contracts have a 7 day "cooling-off"
period for buyers during which buyers can cancel their contract for any
reason and get their money back?
Ans: Interstate Land Sales Full Disclosure Act
, 2 Exampromax - Stuvia US 2025/2026
Which appraisal principle states that maximum value is realized when land
use is in harmony with surrounding standards?
Ans: Principle of Conformity
Which is NOT one of the three approaches to value?
Ans: anticipation
What is the difference between actual and constructive notice?
Ans: Actual notice is direct or first-hand knowledge; constructive notice is the
assumption of knowledge because that knowledge is in the public record.
How many feet are in a mile?
© 2025 Assignment Expert
Ans: 5,280
Exampromax - Stuvia US
In terms of syndicates, what is a general partnership?
Ans: A partnership where all members equally share responsibilities, profits, and
losses.
After the bank failures in the 1920s and 1930s, Congress created what
institution to insure customer deposits, supervise financial institutions for
safety and soundness, make large financial institutions resolvable, and
manage receiverships?
Ans: FDIC
What does "REO" stand for?
Ans: Real Estate Owned
A buyer purchased property from a seller. Shortly after closing, the buyer
discovered that there were serious flaws in the title that made it unlikely that
the property could be resold in the future. What is the buyer's best course of
action?
Ans: Because the buyer has accepted the deed, the only recourse is to sue the
seller under any covenants contained in the deed.
Which of the following would be used to modify a will?
, 3 Exampromax - Stuvia US 2025/2026
Ans: a codicil
On the Closing Disclosure, prorated interest paid before closing on an
existing assumed mortgage is a:
Ans: credit to the buyer and debit to the seller
Landlords MUST allow tenants with disabilities to make reasonable
modifications to a property so they can enjoy it. But there are also
unreasonable modifications a landlord does NOT have to allow; all of the
following are unreasonable modifications EXCEPT:
Ans: modifications made at the tenant's expense
© 2025 Assignment Expert
What is one way investors can get a break on taxes?
Ans: Investors can claim tax-sheltered income through depreciation expenses.
Exampromax - Stuvia US
For whom is it most important to be aware of and comply with state and
federal fair housing laws?
Ans: ALL real estate license holders
Which of the following is FALSE about a sales comparison approach?
Ans: A sales comparison approach does NOT utilize the principle of contribution
the landlord can file suit for possession
Ans: A tenant remains in possession of a landlord's property without either a
current lease agreement or the landlord's approval. Which statement is TRUE in
this situation?
RESPA
Ans: What protects consumers from abusive settlement practices and provides
them with information pertinent to all settlement costs?
The agent needs to furnish the buyers with a pamphlet approved by the
EPA concerning lead based paint prior to closing
