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Texas Real Estate Principles II quiz & correct answers.
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Texas Real Estate Principles II quiz & correct answers.
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Texas Real Estate Principles II quiz &correct answers.
A mixed number has both a fraction and a: ANS -whole number
Which of the following must be prorated or divided proportionately between the buyer and the seller?
ANS -Taxes, insurance, utilities
Convert fractions to decimals when doing a real estate math problem by ANS -dividing the numerator by
denominator
Utilities are paid in arrears. Therefore the buyer will end up paying a portion of the seller's bill since the
buyer will get the entire bill at month end. On the closing statement, this will appear as a ANS -credit to
the buyer and debit to the seller
What ratio is calculated based on all of the monthly obligations the borrower has outstanding? ANS -
debt ratio
Broker Jim sold a home for $225,500 at a commission rate of 7%. What will Jim's commission be? ANS -
$15,785
If a broker sells a property for $450,000 and makes $36,000. What is the rate of commission? ANS -8%
Common closing items such as taxes, utilities, mortgage interest, and insurance are divided equally at
closing between the buyer and seller. These items are being: ANS -prorated
A parcel of property is 609,840 square feet, how many acres are in the parcel? ANS -14 acres
1 acres = 43, 560
A parcel of land that is 250 feet wide and 200 feet deep and sold for $280,000 has a price per square
foot of? ANS -$5.60
, A Licensed Residential Appraiser must: ANS -provide 1,000 hours of acceptable and verifiable - real
estate -appraisal experience.
The income capitalization approach, or income approach, is more specifically used for appraising: ANS -
income or rental properties
What is the first step in the cost valuation approach? ANS -Approximate land value as if it were vacant
Appraisals are done to determine: ANS -value
To become a Certified General Real Estate Appraiser, the applicant must ANS -pass the approved state-
certified general appraiser examination.
What is it called when an improvement to a property makes a change in the properties value? ANS -
Contribution
What is the major component of the total property value that does not depreciate? ANS -The land value
The appraisal process is: ANS -an ordered procedure
Tim and Sue have the smallest home in a sought-after neighborhood. The value of their home is
increased because of the higher value of the other homes in the neighborhood. This is an example of
what principle? ANS -progression
The cost approach would be most reliable for which of these properties? ANS -County court houses
A licensee should keep in mind that the information on pending sales is not as reliable as on sold homes
because ANS -the price shown is the listing price, not the sales price.
Which is NOT one of several factors that determine the value of a home? ANS -The racial makeup of the
neighborhood
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