TEXAS PRINCIPLES OF REAL ESTATE II FINAL EXAM: QUESTIONS & ANSWERS: LATEST UPDATED 2023/24, Exams of Nursing

Download TEXAS PRINCIPLES OF REAL ESTATE II FINAL EXAM: QUESTIONS & ANSWERS: LATEST UPDATED 2023/24 and more Exams Nursing in PDF only on Docsity! TEXAS PRINCIPLES OF REAL ESTATE II FINAL EXAM: QUESTIONS & ANSWERS: LATEST UPDATED 2023/24 Written documents affecting a title to real estate are recorded: A. where the titleholder resides B. where the titleholder has legal residence C. at the county clerk's office where the property is located D. at any county clerk's office in Texas ✔✔ C. at the county clerk's office where the property is located A person appointed by a court to settle the estate of a deceased person when the executor cannot perform or refuses to perform is: A. another executor B. a legatee C. an administrator D. a devisee ✔✔ C. an administrator What is an abstract of title? A. title insurance B. a history of all recorded activity affecting a parcel of real estate C. a judgment on real property D. a patent ✔✔ B. a history of all recorded activity affecting a parcel of real estate A title insurance policy in favor of the mortgagee will insure the: A. owner B. buyer C. buyer and seller D. lender ✔✔ D. lender A chain of title shows the linkage of property ownership that connects the present owner to the original source of title. In most cases it starts with: A. ownership from 1955 B. chattel C. a suit in federal court D. the original grant of the land from the government to a private citizen ✔✔ D. the original grant of the land from the government to a private citizen A handwritten will signed by the testator but not witnessed is known as a(n): A. nuncupative will D. collects the monthly payments. ✔✔ C. forecloses on the property in the event of default. Removing the original borrower's name from the note and substituting the new buyers name is called: A. novation B. substitute C. covenants D. subdividing ✔✔ A. novation The right to redeem the property before a mortgage foreclosure sale is called: A. equitable redemption B. buyer redemption C. statutory redemption D. never used in Texas ✔✔ C. statutory redemption The Texas Bootstrap Loan Program is a self-help housing construction program for very low-income families. A. True B. False ✔✔ A. True The Federal Reserve Bank: A. is the most common bank seen in most cities. B. was created to provide the nation with a more stable monetary and financial system. C. provides loans to most residential home buyers. D. was created in 2013. ✔✔ B. was created to provide the nation with a more stable monetary and financial system. FHA loans are ____________________ and VA loans are ________________________. A. insure by the Federal Housing Administration ----------- guaranteed by the Department of Veteran Affairs. B. backed by conventional banks -------- backed by commercial banks C. only for people with children ------------ only for people without children D. farm loans ------------ lake loans ✔✔ A. insure by the Federal Housing Administration - ---------- guaranteed by the Department of Veteran Affairs. A mortgage that includes real estate and personal property is a: A. reverse mortgage B. package mortgage C. blanket mortgage D. equity mortgage ✔✔ B. package mortgage A deed is a written document that transfers title to real estate from one person to another. A. True B. False ✔✔ A. True In a deed the person giving up ownership is the _________________________, and the person receiving ownership is the___________________________. A. grantee--------grantor B. sublessor--------sublessee C. sublessee--------sublessor D. grantor--------grantee ✔✔ D. grantor--------grantee The highest and best deed used in Texas is the: A. General Warranty Deed A. mortgagee--------mortgagor B. sublessor--------sublessee C. sublessee--------sublessor D. buyer--------seller ✔✔ B. sublessor--------sublessee The Federal National Mortgage Association was organized by the federal government in 1938 to buy FHA mortgage loans from lenders. FNMA began purchasing VA loans in 1948. A. True B. False ✔✔ A. True The seller and buyer have signed a contract and the buyer has put up earnest money. They are closing at ABC Title. Who holds the earnest money until closing? A. ABC Title in a trust account B. Seller in their bank account C. Buyer in a saving account D. An attorney for the seller and buyer ✔✔ A. ABC Title in a trust account Prorations of items in real estate closings are made usually as of the date of: A. recording the deed B. the mortgage payment C. buyers' walkthrough D. closing ✔✔ D. closing The term BEST describes a tenant's interest in the property under a lease is a: A. life estate B. reversionary interest C. remainder interest D. leasehold estate ✔✔ D. leasehold estate The borrower is required to be notified when the note is sold and the servicing rights are not sold. A. True B. False ✔✔ B. False The premiums for the title insurance policy are set by the A. Title Company B. Texas Department of Insurance C. State Department of Premiums D. Texas Real Estate Commission ✔✔ B. Texas Department of Insurance A statutory year has ______________ days and each month has ____________days. A. 365--------31 B. 365--------28 C. 360--------28 D. 360--------30 ✔✔ D. 360--------30 When a property has become uninhabitable and the landlord has refused to repair the property the tenant may file a A. constructive eviction B. foreclosure against the owner C. judicial eviction D. must stay in the property until lease is up ✔✔ A. constructive eviction The legal description that uses distance and direction to describe the shape and boundaries of a property is: A. rectangular survey system B. lot and block C. street address A. IREM B. NAR-National Association of Realtors C. TREC-TEXAS REAL ESTATE COMMISSION D. TAR-Texas Association of REALTORS ✔✔ A. IREM - Institute of Real Estate Management Which of the following is not an approach in the appraisal of real estate? A. income approach B. market comparison approach C. cost approach D. projected gross approach ✔✔ D. projected gross approach A mortgage broker: A. arranges loans between borrowers and lenders B. is a lender C. buys mortgages in the secondary mortgage market D. buys mortgages and resells them at a profit ✔✔ A. arranges loans between borrowers and lenders The loan that requires regular equal payments of sufficient size and number to pay all interest and principal by the end of the loan is: A. a term loan B. a balloon loan C. a one-time payment loan D. an amortized loan ✔✔ D. an amortized loan The Deed of Trust has several advantages for the lender including: A. the time between default and foreclosure is short B. the non-judicial foreclosure is inexpensive C. there is always a statutory redemption period D. both A and B ✔✔ D. both A and B A construction loan is also called a(n): A. mark-up loan B. interim loan C. equity loan D. kit loan ✔✔ B. interim loan The investor may try to keep the ________________ high by keeping the expenses on the property low. A. cash flow B. rent C. debit D. HOA ✔✔ A. cash flow A mortgage that is only for persons 62 years old or older is a: A. reverse mortgage B. package mortgage C. blanket mortgage D. equity mortgage ✔✔ A. reverse mortgage The owners of a cooperative estate hold shares of stock in the cooperative and are issued a: A. proprietary lease B. gross lease insure home mortgage loans. It insures A. only the top 20% of the sales price B. 100% of the sales price C. 100% of the loan amount D. only the top 20% to 25% of a loan ✔✔ C. 100% of the loan amount Foreclosure sales are held in each county in Texas on the first Tuesday of each month between 10 a.m. and 4 p.m. How many sales would be held in Travis County in one year? A person who leaves no will dies ____________. ... is section of the internal U.S. Internal Revenue Service Code that allows investors to A. 12 B. 30 C. 52 D. 365 ✔✔ A. 12 A. probat e B. testat e C. codicil D. intestate ✔✔ D. intestat e what is a historical summary of all consecutive grants, conveyances. wills, records, and judicial proceedings that af fect the title to a particular property called? A. Dee d B. Survey C. Lie n D. Abstract ✔✔ D. Abstrac t defer capital gains taxes on any exchange of like-kind properties for business or investment purposes. A. Section 1031 Exchange B. REIT C. LISA D. Form 1040 ✔✔ A. Section 1031 Exchange ... has unity of time, unity of instrument of deed, undivided shares or identical interest measured by duration, unity of right of possession to the whole, and is not able to pass on the right to heir, but the ownership passed to the surviving tenant. A. Tenancy in common B. Joint tenant C. Partnership D. Corporation ✔✔ B. Joint tenant Syndicates rules and regulations are governed by... A. Texas Real Estate Law B. The Securities and Exchange Commission. C. Local Regulations D. IRS Codes ✔✔ B. The Securities and Exchange Commission. D. $6,875.00 ✔✔ A. $687.50 Interest = principal x rate x time: Using the formula above, the interest rate on a $12,500 loan for one year at 5.5 percent interest is $687.50. $12,500 x .055 x 1 = $687.50 What is the relationship between a property's purchase price or market price and its loan amount called? A. Loan-To-Value Ratio B. Income ratio Bill and Jenna are getting a $175,000 loan at 7.5 percent and will pay 2 discount points. What will the point cost be? A. $3,750 B. $3,500 0 C. $7,00 D. $2,625 ✔✔ B. $3,500 Point Cost: $3,500 $175,000 x .01 x 2 points Bill and J enna are getting a $175,000 loan at 7.5 percent and will pay 2 discount points. What will the effective interest rate be? A. 7.50% B. 7.75% C. 8.75 % D. 8.00% ✔✔ B. 7.75% Effective Interest Rate: 7.75 % 2 points x 1/8 percent = 4/8 =.25 percent 7.50 + .25 = 7.75 percen t A $12,500 loan for one year is borrowed at a 5.5 % annual interest rate. What is the simple interest for the one year? A. $687.50 B. $1,375. 0 0 C. $500.0 0