Exam (elaborations)
Texas Pre-License Principles Of Real Estate II: Qs & As
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Texas Pre-License Principles Of Real Estate II: Qs & As
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Texas Pre-License Principles Of Real Estate II: Qs & AsWhat is the goal of TRID?
A. to institute state-level agencies to investigate predatory lending
B. to create a national registry for Mortgage Loan Originators
C. to help borrowers select the best mortgage for them through an integration
of TILA and RESPA
D. to formalize a grievance process for discriminatory lending Right Ans -
*C. to help borrowers select the best mortgage for them through an
integration of TILA and RESPA*
To find the net operating income, a property manager will:
A. add the operating expenses to the outgoing monthly income
B. subtract the effective gross income from the operating expenses
C. subtract the operating expenses from the effective gross income
D. add the effective gross income to the operating statement Right Ans - *C.
subtract the operating expenses from the effective gross income*
A 4% commission is split equally between two brokers on a $843,000 sales
price. The sales agent on the listing side was paid 64% of the listing broker's
share. The buyer's agent was paid 23% of the buyer's broker's split. How
much did the buyer's agent receive?
A. $16,860.00
B. $10,790.40
C. $33,720.00
D. $3,877.80 Right Ans - *D. $3,877.80*
The buyer's agent was paid 23% of the commission split. First, figure out what
the commission split is: The 4% commission is split evenly between the two
brokers, each broker earning 2% of the sales price: $843,000 x 0.02 = $16,860.
,Next, we are looking for the buyer's agent's split of the $16,860. To find that,
we multiply $16,860 by 0.23 to find out what 23% of that split commission is.
This yields our answer of $3,877.80.
Jordi's house sold for a total of $300,000. In the listing agreement, Jordi
agreed to give 7% of the real estate purchase as commission to the licensed
agents involved in the purchase: 4% to the listing agent and 3% to the buyer's
agent. How much did the listing agent earn in commission from the sale?
A. $9,000
B. $12,000
C. $21,000
D. $4,000 Right Ans - *B. $12,000*
The listing agent earned $12,000 in commission. $300,000 x 0.04 = $12,000
What is a gross lease?
A. It's a lease in which the tenant pays a simple, flat rent every month.
B. It's a lease in which the (usually commercial) tenant pays a base rent rate
plus property taxes.
C. It's any net lease that requires a tenant to pay a base rent, property taxes,
and insurance.
D. It's any leasehold that requires a tenant to pay a base rent, property taxes,
insurance, and maintenance expenses. Right Ans - *A. It's a lease in which
the tenant pays a simple, flat rent every month.*
A landlord has failed to maintain the HVAC unit in an apartment during below-
freezing temperatures.
What is TRUE of this situation?
A. The landlord could seek constructive eviction and legally break the lease
with the tenant.
B. The landlord must prorate the rent until the HVAC unit is fixed.
,C. The tenant can demand their security deposit be returned to cover personal
damages.
D. The tenant could seek constructive eviction. Right Ans - *D. The tenant
could seek constructive eviction.*
Jan wants $10,000 in profit from the sale of her home. She has to pay off her
$150,000 mortgage, as well as $7,000 in closing costs. How much does she
need to sell her home for?
A. $167,000
B. $217,659
C. $157,000
D. $254,242 Right Ans - *A. $167,000*
Jan would have to sell her home for $167,000. $150,000 (mortgage balance) +
$7,000 (closing costs) + $10,000 (desired profit) = $167,000
A property is under contract for $175,000 with a 10% down payment. Find
the cost of points for 2.5 discount points and a 1-point origination fee. (Hint:
Don't forget that the down payment will impact the amount of the loan
principal.)
A. $1,575.00
B. $5,512.50
C. $3,150.00
D. $6,125.00 Right Ans - *B. $5,512.50*
Oops! Looks like you used the sales price to calculate the cost of the points. To
find the cost of the points, we need to find the loan principal, which is
$175,000 minus the down payment amount. Find the down payment amount
by multiplying the purchase price by 10%: 0.1 x $175,000 = $17,500. Then,
subtract the down payment from the purchase price: $175,000 - $17,500 =
$157,500. Knowing that, we can find the cost of the points: 0.035 x $157,500 =
$5,512.50.
One acre is how many square feet?
A. 430,560
, B. 3,560
C. 43,560
D. 560 Right Ans - *C. 43,560*
Julio considers leasing an apartment unit from Bruno, the landlord of an
apartment complex. Bruno really wants Julio to sign so the complex doesn't
have vacancies. To convince Julio, Bruno offers to lower Julio's rent by $75 per
month for the first six months of Julio's lease.
What Bruno is offering Julio is known as a:
A. concession
B. surcharge
C. proration
D. dividend Right Ans - *A. concession*
What is investment gain?
A. an increase in property value due to passive or outside forces like economic
conditions
B. a decrease in property debt due to active and purposeful developments or
improvements
C. an increase in property value due to active and purposeful developments or
improvements
D. a decrease in property debt due to passive or outside forces like economic
conditions Right Ans - *C. an increase in property value due to active and
purposeful developments or improvements*
What is a lease?
A. an agreement between a tenant and landlord that allows the tenant to
occupy the landlord's property for a specified period at a fixed rate
B. an agreement used in the sale of real property that outlines the
responsibilities of the parties and terms of the sale
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