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Texas Principles Of Real Estate 2: Questions With Complete Answers
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Texas Principles Of Real Estate 2: Questions With Complete Answers
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Texas Principles Of Real Estate 2: Questions WithComplete Answers
Amortization Right Ans - The liquidation of a financial obligation on an
installment basis; also, recovery over a period of cost or value.
Area Right Ans - Two dimensional surface of an object
Interest and how its calculated Right Ans - Total loan value * interest rate =
Total Interest due
Profit and Loss Right Ans - Profit - An amount over purchase price an item
is sold for.
Loss - An amount under purchase price an item is sold for.
Percentage Right Ans - Per 100; out of 100. a rate, number, or amount in
each hundred. Any proportion or share in relation to a whole.
Calendar Year Right Ans - a period of 365 days starting from any date.
Statutory Year Right Ans - A statutory year (also known as a banker's
years) year is composed of twelve months each with thirty (30) days for a
total of 360 days.
Volume Right Ans - the amount of space that a substance or object
occupies, or that is enclosed within a container, especially when great.
Texas Security procedures regarding calculators prior to State Real Estate
Exam Right Ans - 1) Examinations are closed book; only 4 function
calculator allowed
2) Candidates are not allowed to bring any reference material with them
3) Candidates must bring a non-programmable calculator which is silent,
battery-operated, and does not have paper tape printing capabilities and does
not have a keyboard containing the alphabet
,Texas Security procedures before or during State Examination Right Ans -
1) No conversing or other form(s) of communication among candidates is
permitted once you have entered the examination area
2) Children, pagers, and cellphones are NOT allowed in the examination
center
3) No personal items are to enter the testing center; personal items should be
locked in the trunk of your car. only non-programmable calculator which are
silent, battery operated and does not have paper tape printing capabilities and
have not have a keyboard containing the alphabet are allowed.
4) No smoking, eating, or drinking at the examination site, you may not exit
the building during the exam, copying or communicating examination content
is a violation of state law and may result in disqualification.
Mixed number Right Ans - a number consisting of an integer and a proper
fraction.
T-Bar Method for Percentages Right Ans - Three formulas most often used
to calculate percentage
1) total * rate = part
2) part/rate = total
3) part/total = rate
Used for percentage or interest calculations
Balloon payment Right Ans - a repayment of the outstanding principal sum
made at the end of a loan period, interest only having been paid hitherto.
Mortgage factor Table Right Ans - An easy looking method to see how
much an individual would owe on a per $1000 basis. Broken down into one or
more terms.
Loan Point or Loan Discount Point Right Ans - Used by lenders to increase
the lender's yield on the loan without increasing the annual interest rate.
Mortgage points, also known as discount points, are fees paid directly to the
lender at closing in exchange for a reduced interest rate. This is also called
"buying down the rate," which can lower your monthly mortgage payments.
, 1 point origination fee Right Ans - 1% of the loan amount; same across the
industry
Prorating Right Ans - allocate, distribute, or assess pro rata.
What did an owner originally pay for his home if he sold it for $200,000,
which yielded a 10% profit...? Right Ans - Take final sales price/1+rate/100
= what they originally paid for the home
Frontage Right Ans - the facade of a building. a strip or extent of land
abutting on a street or water.
Identify the four classifications of appraisers, and accurately rank the
classifications in order of experience. Right Ans - 1) Appraiser Trainee 2)
State License Real Estate Appraiser 3) Certified Residential Appraiser 4)
Certified General Real Estate Appraiser
Explain the five steps in the appraisal process, and accurately list the steps in
the correct order. Right Ans - 1) State the problem - value to be estimated;
purpose for the appraisal 2) list the data needed and the sources for that data;
comparative and specific; universe of data 3) gather, record, and verify data;
specific data 4 ) determine highest and best use of the property 5) estimate a
value by each of the appraisal methods 6) Reconciliation - single sole value to
represent the opinion value for the property usually followed up by a
narrative which describes the property and why it is priced at said price.
Discuss the differences between insured value, book value, assessed value,
and market value, and provide at least one example of each. Right Ans -
Insured Value - The cost of replacing a structure completely destroyed by an
insured hazard.
Book Value - The current value for accounting purposes of an asset expressed
as original cost plus capital additions minus accumulated depreciation.
Assessed Value - A valuation placed upon a piece of property by a public
authority as a basis for levying taxes on the property.
Market Value - The highest price in terms of money which a property will
bring in competitive and open market and under all conditions required for a
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