Texas Principles of Real Estate II Final Exam Questions with Verified Answers Updated (Lat, Exams of Real Estate Management

Download Texas Principles of Real Estate II Final Exam Questions with Verified Answers Updated (Lat and more Exams Real Estate Management in PDF only on Docsity! Texas Principles of Real Estate II Final Exam Questions with Verified Answers Updated (Latest) 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 - correct answerC. 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 Next question - correct answerC. 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 - correct answerB. 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 - correct answerD. 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. Texas Public Ownership - correct answerB. Interstate Land Sales Full Disclosure Act (ILSFDA or LISA) The trustee in a deed of trust: A. writes the contract for the buyer. B. shows the property to the buyer C. forecloses on the property in the event of default. D. collects the monthly payments. - correct answerC. 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 - correct answerA. 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 - correct answerC. statutory redemption The Texas Bootstrap Loan Program is a self-help housing construction program for very low-income families. A. True B. False - correct answerA. 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. - correct answerB. 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 - correct answerA. 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 - correct answerB. package mortgage A deed is a written document that transfers title to real estate from one person to another. A. True B. False - correct answerA. True B. grantee C. lis pendens D. tract - correct answerA. grantor The expenses, which a lender incurs while processing a mortgage loan application, are recovered from the borrower as: A. discount points B. origination fee C. mortgage insurance premium D. private mortgage insurance - correct answerB. origination fee In a sublet the original tenant, called the _________________, sublets the property to the new tenant, called the ____________________. A. mortgagee--------mortgagor B. sublessor--------sublessee C. sublessee--------sublessor D. buyer--------seller Next question - correct answerB. 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 - correct answerA. 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 - correct answerA. 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 - correct answerD. 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 - correct answerD. 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 - correct answerB. 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 B) color, religion C) national origin, sex ALL of the Above Jack has a lien on his home. The lien will be repaid in full by the maturity date without the need for a balloon payment. This type of loan is known as a(n): A. term loan B. straight loan C. amortized loan D. loan point - correct answerC. amortized loan Zoning is enforced by A. lenders and appraisers B. streets and roads C. building permits and building codes D. neighbors - correct answerC. building permits and building codes Graduate, Realtor Institute (GRI) is a designation presented by A. NAR B. TAR C. TRELA D. IREM - correct answerA. NAR The CPM designation is presented by: A. IREM B. NAR-National Association of Realtors C. TREC-TEXAS REAL ESTATE COMMISSION D. TAR-Texas Association of REALTORS - correct answerA. 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 - correct answerD. 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 - correct answerA. 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 - correct answerD. 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 - correct answerD. both A and B A construction loan is also called a(n): D. real estate is paid - correct answerC. the loan funds In analyzing a mortgage loan application, it is illegal for a lender to consider: A. job stability B. martial status C. income adequacy D. credit rating - correct answerB. martial status A legal claim on a property resulting from a debt against the property is called a: A. deed B. lease C. lien D. ownership - correct answerC. lien Land plus new construction cost minus depreciation is the formula for the ______________? A. cost approach B. market data approach C. income approach D. capitalization approach - correct answerA. cost approach Private Mortgage Insurance was formed as a privately owned business venture to 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 - correct answerC. 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. 12 B. 30 C. 52 D. 365 - correct answerA. 12 A person who leaves no will dies ____________. A. probate B. testate C. codicil D. intestate - correct answerD. intestate A voluntary gift of private land to the public is known as: A. alienantion B. dedication C. reliction D. annexation - correct answerB. dedication