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If the base side of a triangular plot measures 45' and the height line measures 12', what is the area of the plot in square feet?([b x h] x ½ = A) ✔✔270 square feet An applicant is allowed to use what electronic devices during the real estate exam? ✔✔Hand- held calculator Convert the following fraction to a decimal for ease of computation: 31/25 ✔✔1. What is the general formula to determine Capital Gain? ✔✔Profit from Sale - Base Value = Capital Gain A property owner borrows $490,000 at a 12% interest rate. How much interest accumulates in the first year?(Interest Rate = Interest / Principle) ✔✔$58, A property owner has a 20 - year mortgage that is worth $97,500 with a 7.5% annual interest rate. What does the property owner pay in mortgage payments every month? ✔✔$784.
AYPO Real Estate Principles of Real
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What is the basic formula for determining the proration of fees? ✔✔Tax or Fee Rate x Remaining Days or Months = Tax or Fee Owed A house has 3 distinct rectangular shapes: A=20'x30' B=10'x10' C=75'x50' What is the square footage total? ✔✔ 4450 ft How many hours must an applicant provide that are acceptable and verifiable appraisal experience acquired over a minimum of 12 months? ✔✔1,500 hours What is functional obsolescence? ✔✔The loss of property value due to qualities of the property that cannot be easily changed What is the most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably? ✔✔Market value Which of the following objective value means the value of a piece of property will rise or fall because of a future benefit or a future complication? ✔✔Anticipation
The Federal Reserve System does not directly control... ✔✔1. national production.
- levels of employment.
- inflation. What occurs in secondary capital markets? ✔✔Securities are traded between investors What is an alternative to financial institutions particularly for buyers who are not able to obtain conventional financing? ✔✔Private lending. Which of the following combines and replaces the final Truth-in-Lending disclosure and the HUD-1? ✔✔The closing disclosure Zoning regulations must be designed to: ✔✔1. Lessen congestion in the streets.
- Provide adequate light and air.
- Avoid undue concentration of population. What is a unique political subdivision of a municipality in Texas? ✔✔TIRZ Which are the two means used to alter a deed restriction? ✔✔Waiver and judicial
Of the 167,625,000 acres of land in Texas, 1.92% is owned by the state and/or federal government, ranking Texas of the 50 states. ✔✔ 47 What means "trade or commerce among the several states or between any foreign country and any state?" ✔✔Interstate commerce. What does CERCLA do? ✔✔Provides a Federal "Superfund" to clean up uncontrolled or abandoned hazardous-waste sites as well as accidents, spills, and other emergency releases of pollutants and contaminants into the environment. Which of these can help a licensee select a specialization if they want one? ✔✔1. licensee's personal knowledge
- licensee's special knowledge
- licensee's special skills 70% of those who hold the CPM® designation: ✔✔hold the highest management positions in their offices (owner/partner/officer/director) Timeshares generally are: ✔✔1. a method of dividing up and selling a living unit at a vacation facility for specified lengths of time
- the exclusive use of a property for a specified number of days each year
the lender may make the first official notice or filing for any nonjudicial or judicial foreclosure. ✔✔ 120 days delinquent About % of Texas Realtors® deal in residential transactions ✔✔ 80 Commercial brokers need expertise in: ✔✔1. investments
- financing
- zoning Which of these is something not included as necessary to licensee competency? ✔✔provide investment strategy recommendations What is the investment property's market value, with debts subtracted? ✔✔Equity Assets such as single-family homes, apartments or apartment buildings, or shopping facilities are what? ✔✔Real property assets Properties are of like-kind: ✔✔f they are of the same nature or character, even if they differ in grade or quality. Which of the following are steps in origination of a syndication? ✔✔Satisfying registration and disclosure rules
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 Where are investment products like REMICs traded? ✔✔Stock market If a commercial landlord has locked a tenant out of leased premises in violation of Section 93.002, the tenant: ✔✔may recover possession of the premises as provided by section 93.003. A leasehold that continues for a definite period of time, which can be anywhere from weeks, to months, to years at a time is: ✔✔An estate for years. What type of clause would the following be?"Tenants shall not operate machinery which produces a noise in excess of 100 decibels between the hours of 9:00 pm and 9:00 am." ✔✔Use clause A landlord may not intentionally prevent a tenant from entering the leased premises unless: ✔✔1. the tenant is delinquent in paying all or part of the rent
- the landlord's right to change the locks because of a tenant's failure to timely pay rent is placed in the lease
- the landlord has locally mailed not later than the fifth calendar day before the date on which the door locks are changed
Which title is a property title that is considered free from defect and therefore the possibility of litigation is eliminated but even though there may still be encumbrances on the title it is one of which the parties are aware, such as a lien or an easement? ✔✔Marketable title A county clerk who accepts electronic documents for recording shall: ✔✔(1) continue to accept paper documents; and (2) place entries for paper documents and electronic documents in the same index. Why would a lender require a borrower to obtain title insurance when obtaining a mortgage? ✔✔Title insurance prevents an error from the title company creating later problems with a lien (any lien placed on a property without a clear title or a title with unknown encumbrances would not be easily enforced in the event of a default) 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: ✔✔a recorded affidavit or memorandum under this section is constructive notice of the transfer or sale. Estates of indeterminable length, for example, those that exist for a lifetime or forever are: ✔✔Freehold estates Testate: ✔✔Is the legal term for having a will at death.
The minimum general requirements for an instrument to qualify as a deed in Texas include which of the following: ✔✔Contain words of conveyance The right of government to take ownership of privately held real estate is called: ✔✔eminent domain When an offer to purchase real estate in this state is signed, a license holder shall advise each buyer, in writing, that the buyer should: ✔✔1. have the abstract covering the real estate that is the subject of the contract examined by an attorney chosen by the buyer
- be provided with or obtain a title insurance policy Who is permitted to prepare legal documents in Texas? ✔✔Attorney Which of the following combines and replaces the final Truth-in- Lending disclosure and the HUD-1? ✔✔The Closing Disclosure In Texas, recording fees are paid to whom? ✔✔The county clerk in the county where the real property is located. Participants in the primary mortgage market do NOT include ✔✔seller-owners
A property owner borrows $490,000 at a 12% interest rate. How much interest accumulates in the first year. (Interest rate = Interest / Principle) ✔✔$58, In what economic setting does the trading of investment products like REMICs actually take place? ✔✔Stock Market Replacement Cost (the dollar amount it would cost to construct, at current prices, a structure what might not be exactly the same) is used as an element of which of the following types of appraisals? ✔✔Cost Approach If two or more unrelated parties recieve real property and the conveyance does not address the character of the tenancy created, it is by law given as: ✔✔A tenancy in common Leverage refers to the balance between: ✔✔Monies owed against borrowed funds and income received as a return on investment. Who is permitted to prepare legal documents in Texas ✔✔Attourney The information in a certificate of title often has several sections to it, including all of these, EXCEPT: ✔✔Credit history of the buyer
Included in the cost of most title insurance are all of the following, EXCEPT ✔✔A closing disclosure statement There are two kinds of points: ✔✔Discount points and origination points If the sale, transfer, purchase, or acquisition agreement transfers or sells and interest in land or in a mortgage other than lien vested according to the real property records is the failed depository institution, which of the following is accurate? ✔✔A recorder affidavit or memorandum under this section is constructive notice of the transfer or sale 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 the seller of the property) An orginization must meet all of the following conditions in order to be classified as a (real estate investment trust) REIT, except: ✔✔Must have at least 1000 shareholders after 1 year as a REIT An appraisal report generally DOES NOT include the following item: ✔✔Title search A Privately run, for-profit financial institution that provides a number of services including mortgage lending is classified as which of the following? ✔✔A bank
Prorate, or pro rata, means to: ✔✔Proportion a cost over time and it is used to adjust an overall payment to the actual days of usage 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 Public land use controls include all of the following except which of these? ✔✔Covenants A home equity conversion mortgage (HECIM) is also known as a(n): ✔✔reverse rate mortgage The sales contract most frequently used in Texas is the: ✔✔TREC Promulgated One to Four Family Residential Contract (Resale) Objective value is not influenced by: ✔✔Personal feelings or opinions in considering and representing facts Development sites, farms, data centers, storage facilities, senior/retirement housing facilities, medical office buildings and facilities, and various types of student housing are types of: ✔✔Real Property Assets
A property owner took out a 20-year mortgage for $97,500 with a fixed 7.5% annual interest rate. What does the property owner pay in mortgage payments every month (principle and interest only)? (Closest rounded answer) ✔✔$ A person controls the acceptance of rent from a resident of a single-family rental and must be licensed under the Act if the person has the authority to do what? ✔✔Determine where to deposit the rent Determine when to deposit the rent Sigh checks or withdraw money from a trust account A T- 47 affidavit requires that a seller swear under oath to which of the following? ✔✔no easements have been granted on the property and that no material change exists in the structures, fences, or structures on adjoining properties, conveyances, or replats. In foreclosure, in order to receive a portion of any remaining proceeds, what must a junior lienholder do? ✔✔A junior leinholder must have filed a request for notice of default with a public recorder. The BEST definition of 'highest and best use' in property valuation provided here is which of the following? ✔✔A reasonably probable and legal use of vacant land or an improved property, which is physically possible, appropriately supported, financially feasible, and that results in the highest value.
