Exam (elaborations)
The CE Shop TX Principles of Real Estate II Course Exam
- Course
- Institution
The CE Shop TX Principles of Real Estate II Course Exam
[Show more]
Content preview
THE CE SHOP TX PRINCIPLES OF REALESTATE II COURSE EXAM 100%
SOLVED QUESTIONS AND ANSWERS
j Which of the following best defines capitalization rate? - The expected rate of return on an investment
In a 1031 tax-deferred exchange, what role does the qualified intermediary serve? - Coordinates the
exchange
Which of these is a landlord's basic duty under Texas law? - Comply with state and local laws that relate
to the health and safety of the tenant
Parcels of land are valued at $50,000 each. However, when two of the parcels are joined, they are valued
at $120,000. What economic principle is at work here? - Plottage
A preapproval letter is evidence that ________. - The borrower's financial information has been verified
What is the term for an increase in property value caused by the joining of two neighboring parcels of
land? - Plottage
What are prepaid expense items? - Items to be divided proportionately between the buyer and seller
that the seller hasn't fully used
The mortgagee's title insurance policy provides for reimbursement ______. - Up to the current
outstanding loan balance
Which of these terms describes the actions that are required to effect a transfer of title by deed? -
Delivery and Acceptance
Former landfills are often used for what purpose? - Development of golf courses and parks
A rundown home is driving down property values on the block. What economic principle is at work
here? - Regression
Why would a buyer want to know if any easements or encroachments exist on a property? - Easements
and encroachments affect the property's lot size, enjoyment, and use, which can affect its value
The economic principle of ______ says that when there are two houses in the same neighborhood with
the same size, appeal, and utility, the lower-priced one will tend to sell first. - Substitution
In the sales comparison approach, using comparables that are five and 15 years old when appraising a
subject that is 10 years old is an example of what? - Bracketing
In the real estate business, which professional's primary role is to finance mortgage loans, while also
funding development/construction projects if the risk is not too great? - Traditional lenders
, There are a lot more sellers than buyers in the current market. How does this demand influence value? -
Value is pushed downward
What do appraisers use in addition to depreciation to determine the indicated value when using the cost
approach? - Reproduction cost
The Closing Disclosure must be provided to the borrower at least ______ days before the day of closing. -
Three
What's the minimum number of business days prior to closing that lenders have to provide borrowers
with the Closing Disclosure form? - Three
Which of the following is a true statement about police power and public land use controls? - Local
governments and their planning boards control budgeting, site-plan review, and building codes
What does a balloon payment represent at the end of a loan term? - It means that some principal
remains at the end of the loan term
Which veteran loan program offers qualified veterans help with the purchase of land in Texas? - Veterans
Land Program
Which economic principle says that a property's value is determined by what it would cost to purchase a
similar property? - Substitution
When co-owners of a property decide to partition the property, what does it mean? - They're dividing
the property proportionally so that each co-owner becomes sole owner of a portion
Which program offered by the TDHCA helps residents purchase their first home? - My First Texas Home
In Texas, which deed type provides the strongest and broadest form of guarantee of title? - Full Covenant
and Warranty deed
On which type of property would the cost approach typically be used when determining value? - New
Construction
Which economic principle says that value is created and maintained when the characteristics of a
property fit in with its surroundings? - Conformity
Which type of property manager is most likely to work for real estate developers and investors? - Real
Estate Development
What percentage of loss would the seller have if he paid $18,000 for a vacant lot, built a home on the lot
that cost $145,000, and then sold the property for $153,000? Round your answer to the nearest percent.
- 6%
Who are the parties to a property management agreement? - The property manager and property
owner
What does an appraiser do? - Provide an unbiased estimate of value
A home has an assessed value of $64,120, and the tax rate is 3.2%. What is the annual tax bill? -
Assessed Value x Tax Rate = Annual Property Tax
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller knowledgeNest. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $9.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
77858 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now