Texas Real Estate Final Exam Questions
and Answers 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.
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,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
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,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
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, 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.
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and Answers 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.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
,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
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
,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
©COPYRIGHT 2025, ALL RIGHTS RESERVED 3
, 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.
©COPYRIGHT 2025, ALL RIGHTS RESERVED 4
