What are the two parts to a mortgage loan?

The debt itself and the security for the debt

Under community property laws

property that a person accumulated before marriage is seperate property

How is maximum value ralized in the use of land?

If the land use conforms to existing neighborhood standards

Which of the following entities licenses auctioneers?

Texas Department of Licensing and Regulation

The seller owes $2,400 in taxes for the current year. With a May 28 closing and using a calender year:

The daily proration amount is $6.575

An auction is BEST defined as

the sale of property by competitive bid using any method, format or venue

For what purpose does a REIT use funds from investors?

to purchase both real estate and mortgages

Which is included as a protected class under the Fair Housing Act of 1968 as amended?

A renter whose landlord is sexually harassing her

Which of the following is TRUE in an actual eviction?

landlord files a suit for possession to have the tenant removed

Which discribes an easement in gross?

A personal interest in or right to use the land of another

Which is NOT true regarding transfer of title?

A title is considered to be transferred immediately after it is signed

The comparable house has 3 bedrooms, the subject property has 2. What should be done with estimated value of the comp?

It should be subtracted from the comparable property

The budget should take into consideration the owner's long-range plans for the property and

must contain an estimate of the income and expenses

The provisions of a nonjudicial foreclosure include all of the following EXCEPT

homestead owners must have 45 days to cure the default prior to sale notice

Which statement does NOT describe automated underwriting?

It has increased the time for loan approval from two to four weeks

The effective term of a deed restriction may be extended with the consent of

a majority of the owners in a subdivision

Which is the main purpose of the Financial Institutions Reform, Recovery, and Endorcement Act (FIRREA)?

Regulate the appraisal industry by requiring licensed appraisers

Is a formal declaration bfore a notary public that authenticates signatures

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Principles of Real Estate in Texas II Study Guide

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1
Which of the following is TRUE of a property managers collection policy?
be different for the different needs of each tenant
None are true
be firm and consistent
It should vary depending on the income of the tenant
2
In a deed of trust, the lender is
the mortgagor
the trustee
the trustor
the beneficiary
3
What are the two parts to a mortgage loan?
The mortgagor and mortgagee
The debt itself and the security for the debt
The mortgage and the deed of trust
The principal and the interest
4
A brief history of all the documents affecting title is
a title search and trace
an abstract of title
a title investigation
a chain of title
5
Who typically pays a residential rental locator?
Lender
Tenant
Apartment owner and tenant, who split the fee
Apartment owner
6
What kind of document, issued by the VA, sets a maximum VA loan amount for a property?
Notice of Value
Certificate of appraised value
Notice of loan amount
Certificate of reasonable value
7
Which is for a definite, fixed period of time?
Tenancy at will
Tenancy at sufferance
Estate for years
Periodic estate
8
Which of the following agencies license property developers?
Licensing not required
Texas Property DEvelopment Board
Texas Department of Licensing and Regulation
Texas Real Estate Commission
9
Under community property laws
property that a person accumulated before marriage is seperate property
all property owned by a married personal is called community property
income from seperate property is usually seperate property
property a person received as a gift during marriage is community property
10
How is maximum value ralized in the use of land?
If more than one investor has contributed to the purchase
If al taxes are current
If the land use conforms to existing neighborhood standards
If the land is zoned for commercial use
11
Which of the following entities licenses auctioneers?
Texas Department of Licensing and Regulation
TExas Auctioneer's Licenseing and Certification Board
Texas Auctioneer's Board
Texas Real Estate Commission
12
If a congtractor needs to get permanent financing to repay a construction loan, he gets
an equity loan
a purchase money mortgage
a takeout loan
a buydown mortgage
13
The borrower must be provided the Closing Disclosure, at LEAST how many business day(s) before closing?
Two
One
Five
Three
14
The seller owes $2,400 in taxes for the current year. With a May 28 closing and using a calender year:
The daily proration amount is $7.042
The daily proration amount is $9.125
The daily proration amount is $6.575
The daily proration amount is $6.666
15
The borrower under a deed of trust is know as
the trustee
the beneficiary
the vendee
the trustor
16
What kind of deed is usually given by someone acting on behalf of the owner i.e. executor, administrator or a custodian?
General warranty
Quitclaim
Special warranty
Bargain and sale
17
Which of the following is TRUE?
Land can always be depreciated
None are true
Land cannot be depreciated
Land can be depreciated with limitations
18
An auction is BEST defined as
the sale of property by sealed bid
none of these
the sale of property by oral competitive bid in a public venue
the sale of property by competitive bid using any method, format or venue
19
The stage of land development during which utilities are installed, parks constructed and marketing initiated is called
the initial planning stage
the disposition stage
the interim planning stage
the final planning stage
20
If a property is sold for $90,000, what commission would be paid to the brokers if the commission rate is 6%?
$574.47
$5,400
$5,745
$540
21
For what purpose does a REIT use funds from investors?
to purchase only real estate
to purchase both real estate and mortgages
None of these
to purchase only mortgages
22
Which is included as a protected class under the Fair Housing Act of 1968 as amended?
A 20-year-old prospective homebuyer
A renter whose landlord is sexually harassing her
Two sindgle people who want to rent an apartment together
A rental applicant whose income is partially based on public assistance
23
Which is NOT a typical loan payment plan?
Interest-only payment
Down payment
Flexible payment
Balloon payment
24
"To have and to hold for the life of the grantee" is
a reservations clause
a granting clause
a deed restriction
a habendum clause
25
Which of these is NOT considered a public land-use control?
Deed restriction
Zoning ordinance
Subdivision regulation
Building code
26
Current market value is 35,000 & assessed at 100% of value. Tax rate is $4 per 100. Tax due is:
$350
$1,400
$740
$625
27
The concept of mortgage lending originated in
New York, New York
England
Spain
Boston, Massachusetts
28
Which of the following is TRUE in an actual eviction?
landlord must record the lease in the county records to remove a tenant
landlord files a suit for possession to have the tenant removed
landlord is only required to give 10 days notice to have the tenant removed
landlord files a suit for possession & records the lease to remove a tenant
29
Something that is owed is
a credit
an asset
a debit
a resource
30
The fees to the county clerk to record the deed are paid by
the buyer
the seller
the lender
the agent
31
The 10-year statute for adverse possession is normally limited to the acquisition of how may acres?
320
640
100
160
32
Before the foreclosure sale, a defaulting borrower seeks to apy off the debt under the right of
equitable redemption
defeasance
hypothecation
statutory redemption
33
Which is generally recognized as title evidence and can be used to establish ownership of property
A security agreement
Title Insurance
Chain of title
A general warranty deed
34
Which discribes an easement in gross?
An easement that runs with the land & is used for the benefit of another
Forty or more easements associated with a single property recording
A personal interest in or right to use the land of another
An easement that is for the benefit of many rather the a single person
35
In a foreclosure through a power-of-sale clause, who actually conducts the foreclosure?
Trustee
Trustor
Mortgagor
Mortgagee
36
What kind of redemption must the lender be paid the amount in default if the borrower wants to be reinstated?
Statutory
Both of these
None of these
Equitable
37
Which is NOT true regarding transfer of title?
The effective date of the trnsfer is the date of delivery of th deed itself
A title is considered to be transferred immediately after it is signed
The grantor may deliver the deed to the grantee personallly
Title is said to "pass" only when a deed is delivered
38
What document is given to the trustor when the deed-of-trust debt is completely repaid?
RElease deed
Deed of trust
Defeasance certificate
Satisfaction of mortgage
39
The comparable house has 3 bedrooms, the subject property has 2. What should be done with estimated value of the comp?
It should be subtracted from the subject property
It should be added to the subject property
It should be subtracted from the comparable property
It should be added to the comparable property
40
The budget should take into consideration the owner's long-range plans for the property and
must contain an estimate of the owner's total assets
must contain an estimate of the capitalization rate reflecting the risk
must contain an estimate of the income and expenses
must contain an estimate of the property's market position
41
What kind of notice refers to information that has been made public?
Constructive
Functional
Actual
Specific
42
The provisions of a nonjudicial foreclosure include all of the following EXCEPT
written notice be posted at the courthouse at least 21 days prior to sale.
notice of the sale must be sent to each debtor at least 21 days before sale
homestead owners must have 45 days to cure the default prior to sale notice
notice of the sale must state where the sale will take place
43
A power of sale clause gives which party the right to sell the property at auction without going to court?
Mortgagee
Mortgagor
Borrower
Trustee
44
Which statement does NOT describe automated underwriting?
It provides recommendations for or against loan approval
It has increased the time for loan approval from two to four weeks
It is the process of electronically evaluating a loan application
It determines the borrower's likelhood of defaulting on the mortgage loan
45
The effective term of a deed restriction may be extended with the consent of
the municipality, if inside the city limits, or the county, if outside
a majority of the owners in a subdivision
20 adults of voting age
all the owners in a subdivision
46
The interest for 11 months on a $15,000 loan at an interest rate of 8% is
$1,775
$1,200
$1,100
$1,875
47
Which is the main purpose of the Financial Institutions Reform, Recovery, and Endorcement Act (FIRREA)?
To regulate savings and loan association reserve requirements
Regulate the appraisal industry by requiring licensed appraisers
To regulate commercial brokers who specialize in large commercial property
To regulate estate sale appraisers
48
An appraisal may be BEST defined as
an opinion of value
a price opinion
a cost/benefit analysis
a comparative market analysis
49
An acknowledgment
provides evidence of the date on which a document was signed
Is a formal declaration bfore a notary public that authenticates signatures
requires that a document be signed in from of a notary
is a sworn statement that the information contained in the document is true
50
A ground lease is usually
a variable-term lease
a short-term lease
an adjustable-term lease
a long-term lease
51
When a borrower pledges property as collateral he does which to the property?
Subordinates it
Alienates it
Deeds it
Hypothecates it
52
In 2013, what was the primary specialty of Texas REALTORS®?
Residential sales
Property management
Commercial sales
Apartment locating
53
How is the sales comparison approach obtained?
By comparing the subject property with recently sold similiar properties
By comparing the rental income of similar properties
By comparing the cost to build the subject property less depreciation
By comparing the subject property to properties that pay the same taxes
54
Which of the following agencies license home inspectors?
Texas Department of Licensing and Regulation
Texas Board of Professional Engineers
Texas Real Estate Inspector Licensing Board
Texas Real Estate Commission
55
A deed conveys ownership so long as the existing building is not torn down is what type of estate?
A fee simple estate
A determinable fee estate
A remainder estate
A life estate
56
A homeowner wants to sell his house as an assumption. If the lender wants to prevent the assumption they invoke the
Acceleration clause
Alienation clause
Defeasance clause
Escalation clause
57
Which of the following describes an equity REIT?
Where several investors pool their funds to purchase one property
Pool of residential property mortgages wherin shares are sold to investers
A pool of large-scale income properties whose shares are sold to investers
None of these
58
Through a restrictive covenant in a deed, a developer may establish restrictions on the right to
purchase land
sell land
own land
use land
59
If a sale closing in escrow cannot be consummated because the seller's title cannot be cleared, the escrow agent
postpones the closing until title is cleared
reinstates the parties to their former status as if no sale had occured
the escrow agent does none of these
credit the buyer for the amount necessary to clear the title
60
Which is NOT true of mortgage brokers?
Make loans with the intention of selling them to investors
They are not lenders but are often instrumential in obtaining financing
individuals who act as intermediaries for borrowers and lenders
They locate potential borrowers, and process loan applications
61
How is a tax credit treated for income tax purposes?
It is a direct reduction in tax due
It is the same as as deduction
It is a proportional reduction in tax due
It is a deduction from the income on which the tax is computed
62
Multiple offers to purchase real estate are not considered competitive bids requiring an auctioneer's licensure if:
all of the material terms of the transaction other than price are the same
all of the material terms of the transaction are submitted by sealed bid
all of the material terms of the transaction other than price are different
all of the material terms of the transaction including price are the same
63
The primary security for the creditor under a contract for deed is
the vendee's lien
the seller's retention of legal title
the vendor's lien
the deed of trust
64
Three discount points charged by a lender for an FHA loan of $100,000 equal
$3,000
$1,000
$300
$100
65
A condo building located in a area with major traffic congestion is an example of what type of depreciation?
External obsolescence
Functional obsolescense
Physical deterioration
Urban growth
66
Which allows a mortgagee to proceed to a foreclosure sale without having to go to court first?
Waiver of redemption right
Alienation clause
Power of sale
Acceleration coause
67
What does REIT stand for?
Real estate investment trust
REal estate investment tax
Real estate insurance trust
Real estate investment trade
68
In an adjustable-rate mortgage,
interest rate changes are tied to an economic index
none of these apply
interest rates are set by state law
interest rate changes are tied to state guidelines
69
Which one of these would be considered extraterritorial jurisdiction?
Subdivision located within 1/2 mile to 5 miles of an incorporated city
Land located within one-half mile of a coastal waterway
Land located within one-quarter mile of the center of a riverway
Subdivision located within 1/2 mile to 5 miles of an unincorporated city
70
Reverse mortgages enable homeowners who are of what age or older to borrow against the equity in their homes?
62
60
57
55
71
A house appraised for tax purposes at 90,000 is taxed at an annual rate of 2.50 per each $100 of value.
The yearly tax is $250
The yearly tax is $225.
The yearly tax is $2,500
The yearly tax is $2,250
72
The premium for title insurance is paid
once, upon issuance of the title policy
monthly with the mortgage payment
quarterly until the property is sold
annually until the property is sold
73
If a homeowner hear a rumor that a home next to his is about to be taken by the city and converted to a park,
an appraiser would value the homeowner's property based on conformity
an appraiser would value the homeowner's property based on competition
an appraiser would value the homeowner's property based on plottage
an appraiser would value the homeowner's property based on anticipation
74
What is the BEST way to ensure that there are no encroachments and verify the boundaries of a parcel of land?
Verify the benchmarks
Get an improvement survey
Check the title records at the courthouse
Find the monuments
75
Which of the following describes laches?
The los of a right through undue delay or failure to assert it
The loss of a right based on intentional actions
The loss of a right based on capricious actions
The loss of a right because someone else has asserted it
76
To find the subject property's value, you should perform which action to the net operting income?
Multiply it by the capitalization rate
Add it to the capitalization rate
Subtract it from the capitalization rate
Divide it by the capitalization rate
77
8% of 23,000 =
18.4
$18,400
184
$1,840
78
To comply with the truth-in-lending requirements, the interest rate that should be used in an advertisement should be
the annual percentage rate
the monthly interest rate
the nominal interest rate
the annual interest rate
79
Which of these specialties requires a TREC license?
Property management
Property developer
Home builder
Rental locator
80
If there are no smoke alarms in a leased residence, the tenant may do which?
Sue the landlord for violating the habitability statute
All of these
Request one from the landlord
Termnate the lease
81
If land is taken by the government under its right of eminent domain, which of the following would apply?
There must be public use
There must be an adverse action
There must be a statutory dedication
There must be constructive notice
82
What of th following requires obtaining a conditional-use permit?
Adding an above ground pool in a back yard
Managing abed and breakfast in a esidential neighborhood
None of these
Remodeling a garage into a playroom
83
Before approving a loan, the lender must qualify each of the following EXCEPT
the escrow company
the buyer
the property
the title
84
The hiring and supervising of employees who perform maintenance and other services generally
is the responsibility of the third-party vendor
is the responsibility of the property manager
is the responsibility of the owner
is the responsibility of none of these
85
The individual who holds the note is the payee and may transfer the right to receive payment to a third party by
seeking declaratory relief from a court of competent jurisdiction
signing the instrument over to the third party or submitting it to escrow
recording the deed with the county cleark and paying a $100 filing fee
signing the instrument over to the third party or delivering it in person
86
What is usury?
The rate of interest established by a lender for the home loans they make``
Charging interest that is in excess of the maximum rate set by law
Charging interest that is far less than the maximum rate set by law
Using the name of a person with better credit as a cosigner
87
In a will, a bequest is a gift of
real estate
none of these
real property
personal property
88
The purpose of a CMA is
irrelevant as it is an obsolete document & has been replaced by appraisals
to act a a general guide to what similiar properties are selling for
to set the legal price of the property
to give a seller an estimate of how much commission will be paid upon sale
89
When estimating the value of a school building the appraiser should use
the cost approach
the sales comparions approach
none of these
the income approach
90
Interest calculations on a fully amortized loan are computed on which amount
Remaining pricipal and interest balance
Sales price
Remaining principal balance
Original loan amount
91
In order to allow uses of property deemed desirable for public convenience only marginally acceptable
A Planning and Zoning Commission can grant an amendment
A Planning and Zoning Commission can grant a conditional-use permit
A Planning and Zoning Commission can grant a variance
A Planning and Zoning Commission can grant a zoning appeal
92
In order to have value in the real estate market, a property must have each of the following characteristics EXCEPT
conformity
utility
transferability
effective demand
93
A deed must be signed by
the attorney
the grantee
the grantor
the agent
94
What do mortgage banking companies do?
They act as imtermediaries to bring borrowers and lenders together
They serve a corporate resentatives for the Federal Reserve System
They loan money borrowed from other institutions or funds of their own
They provide free consumer counseling to low-income homebuyers
95
Which of the following agencies license escrow officers?
Texas Department of Licensing and Regulation
Texas Departmentof Savings and Mortgage Linding
Texas Department of Insurance
Texas Real Estate Commission
96
The clause in a note that gives the lender the right ot have all future installments become due on default is
the defeasance clause
the escalation clause
the acceleration clause
the alienation clause
97
The Texas First-Time Homebuyer Program provides interest rates that are
higher than current market rates
variable depending on economic factors
lower than current market rates
equal to current market rates

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