real estate Texas
Who is responsible for requesting a loan payoff statement before closing?
*the seller
finace portion
----
Hunter Green is getting ready to move into a new apartment in a small town in west Texas. The landlord has already informed Hunter that she will require a security deposit from him and that the amount of the deposit will be equivalent to ______ rent.
1 months
In Texas, landlords normally ask for the equivalent of ______ for the security deposit.
1 months rent
Find the area of a square flower bed where each side measures 4.5 m.
20.25 meters squared
Morgan is a single taxpayer and real estate investor. She buys homes for cheap, fixes them up while living in them, and sells them for a profit. How much can she exclude if she realizes a gain from the sale of her current property (assuming she meets all the criteria to exclude the gain)?
250,000
The owner of a duplex charges $2,000 per month for each unit. Over the last 12 months, one half of the property was vacant for six months. What was the owner's effective gross income for this 12-month period?
36,000
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%
In Texas, how many days after a tenant moves in does a landlord have to re-key and test all key-operated devices?
7
Vacancy rates are a key indicator of supply and demand for tenant occupancy spaces. Which of the following is true?
A decrease in vacancy rate indicates an increased demand for space.
A homeowner has been paying her mortgage for several years and has built up equity. She decides to take out a home equity line of credit because she needs some cash. This credit will create ______.
A junior lien on the property
What's an affidavit as to debts and liens?
A sworn statement by the seller that no unpaid bills remain for repairs or improvements to the property.
What's an environmental impact statement?
A written statement used to consider ways to minimize a project's negative impact on the environment
A comparable property sold one month ago for $400,000. That property has a three-car garage, whereas the subject property you're preparing to list only has a two-car garage. What should you do to determine the subject property's market value?
Adjust the comparable's price down
A comparable residential property sold one month ago for $300,000. That property is on a busy street, whereas the subject property you're preparing to list is a corner lot on a quiet street. What should you do to determine the subject property's market value?
Adjust the comparable's price up
Which act, which was the first act passed to address the subprime mortgage crisis and was also known as "the stimulus package," sought to create new jobs and save existing ones, spur economic activity and invest in long-term growth, and foster new accountability and transparency in government spending?
American Recovery and Reinvestment Act of 2009 (ARRA)
What's a quiet title action?
An action to locate and notify all who may have some claim on the title, and determine the validity of all claims
What is a reverse exchange?
An investor finds and closes on an investment property and then decides to immediately sell another investment property.
Andrea's lender has notified her of its intent to foreclose. Her loan is secured with a deed of trust. What rights does she have to redeem her property?
Andrea can cure the default and reinstate the loan.
When HUD pursues actions that are designed to reduce housing discrimination and help communities recover from disasters, which of its goals is it supporting?
Build strong, resilient, and inclusive communities
Which agency is responsible for the production of paper currency?
Bureau of Engraving and Printing
How does the consumer provide economic support to a community in the living phase of the real estate cycle?
By purchasing and consuming local goods and services
Texas provides special protections for certain tenants, ensuring that landlords can't evict a tenant based on which of the following?
Circumstances surrounding a domestic violence-related protective order, including things like police calls or noise disturbances.
A multibillion dollar online retail distributor has decided to set up operations in Ashland. The population of Ashland is 22,000. What is the potential impact to the area?
Community is potentially put at risk.
As foreclosures increased in 2007, what was the response from lenders?
Decrease lending activity
Richard gave his town six acres adjacent to his property for use as a public park. This type of property transfer is called a ______.
Dedication by deed
How does the Community Development Block Grant program assist in supporting HUD's mission?
Distributes grant funding to help meet community needs as determined by state and local governments
Chapter 5 of the Texas Property Code set requirements and penalties for ______.
Executory contracts
Which act requires a property manager to send an adverse action letter to the rejected applicant if the decision to reject were based in whole or in part on the applicant's credit score?
FCRA
Which of these scenarios shows tenant Ivan fulfilling his part of his lease?
He pays his rent on the fifth of every month, as he and his landlord have agreed.
Lisa purchased an older home with a large backyard that's perfect for her pack of collies to romp in. Six months after she bought the property, a total stranger knocked on her door and told her he's the true property owner. After investigating, it turns out the person who sold Lisa the property had forged the deed without the true owner's knowledge. What's true about Lisa's situation?
Her title insurance policy may protect her from loss.
Which of the following do investors like to avoid?
High tax liabilities
Fred and Wilma are listing their home for sale with Carl, a licensee. They tell Carl that they're not interested in selling to people who won't "fit in with the neighborhood." Carl advises them about ______ that are developed and enforced within HUD.
Housing discrimination laws
In Texas, leases have the implied covenant of quiet possession. What does this mean?
Landlords must give the tenant actual possession of the leased premises
Who usually represents the lender at a closing?
Lender's attorney
Which document provides an estimate of the costs a buyer is likely to pay at settlement before the closing?
Loan Estimate
How do mortgage lenders acquire income?
Loan interest and mortgage packages sold on the secondary market
Who originates their own loans?
Mortgage bankers
Which HUD program is responsible for protecting individuals against discrimination in housing based membership in a protected class?
Office of Fair Housing and Equal Opportunity
Which of these tasks is performed by the U.S. Mint?
Produces commemorative coins and medals
Which of the following represents a characteristic of a title insurance policy?
Provides an attorney's opinion of the title
The two most common methods used when a bank fails are the payout method and the ______ method.
Purchase and assumption
Which act ensures a buyer in a residential transaction that's financed by a federally related mortgage loan has knowledge of all settlement costs?
RESPA
Conrad just closed on the house he's buying to fix up. Why should he follow up to be sure the deed has been recorded?
Recording provides constructive notice that he owns the property.
Anyone working for a property management company in Texas and who works for more than one owner is _______.
Required to have a minimum of a sales agent license to collect rent and perform other real estate functions
The blueprint to the transaction is another term for the _______.
Sales contract
If the Treasury encounters a deficit, what actions might it take?
Sell securities
What did the Troubled Asset Relief Program allow the U.S. Treasury to do in response to the 2007 financial crisis?
Spend billions
What is one way property managers can assist property owners in maintaining their investments?
Spend enough to maintain and upgrade the property so tenants will want to live there.
Unit of account, medium of exchange, and what other factor define money?
Store of value
An affidavit of title is a ______.
Sworn statement by the seller that no unpaid bills remain for repairs or improvements to the property
What agency receives paper currency prior to its distribution but after it's printed?
The Federal Reserve
Which act establishes general requirements that state agencies must follow when adopting rules or conducting contested cases?
The Texas Administrative Procedures Act
The federal SAFE Act required states to enact licensing and registration requirements related to loan originators, and created the Nationwide Mortgage Licensing System and Registry. Which act was Texas' response to the federal act?
The Texas SAFE Act
Which act requires that individuals making more than five "owner-financed" loans per year, obtain a residential mortgage loan origination license?
The Texas SAFE Act
What is one of the main differences between the U.S. Mint and the Bureau of Engraving and Printing?
The U.S. Mint produces coins, and the Bureau of Engraving and Printing produces paper notes.
Who is responsible for obtaining evidence of title and title insurance?
The buyer
Who does a pre-closing final walk-through of a property?
The buyer and the buyer's agent
Which of the following statements is true about constructive eviction in Texas?
The court may award damages to the tenants and order the landlord to make repairs.
Commercial leases may contain an automatic renewal clause. If this is the case, what happens after the lease's original term has come to an end?
The lease continues on a month-to-month basis.
Under Texas law, which of the following occurs if a tenant dies during the term of lease?
The lease does not terminate and becomes the responsibility of the tenant's heirs.
Before development of its new zipper factory begins, XYZ Corp. finds out that a section of the property it wants to build on is prone to flooding and decides to dedicate this portion of the property to the government for public use to get out of handling the maintenance and drainage issues. The local government refuses. Why?
The maintenance or cost to fix the problem might outweigh the benefits of its use.
What is financial risk?
The risk that the required return on investor capital will not be met
In Texas, a testator must be of legal capacity. What does that mean?
The testator must be of sound mind and body and at least 18 years of age
Which option is true if a deed is not recorded after closing?
The title never changes hands from the seller to the buyer.
How is title usually conveyed to the buyer during a foreclosure process?
Through a referee's deed
What's the primary purpose of a CMA?
To determine an appropriate listing price range
Why does a lender require title insurance from the borrower for a mortgage?
To ensure the collateral for the loan is secure and free of encumbrances
What's the purpose of the ECOA?
To prevent discrimination in lending
What would be an altruistic reason for a municipality to accept a land dedication?
To use the land for public benefit
Cindy has gotten title insurance for the home she just purchased. She was able to put a small down payment on the home. What amount will the title insurance reimburse?
Up to the full amount of the purchase price
When are mortgage brokers and/or lenders required to provide buyers with the Loan Estimate form?
When buyers submit a loan application, or within three business days after submitting a loan application
When is an investment a security?
When it's intended to make a profit solely derived from the management effort of others
Page four of the Closing Disclosure lists specific disclosures about the loan, such as the penalty for late payments, whether a demand feature applies, whether the loan can be assumed, and ______.
Whether partial payments are accepted
A Treasury bond is a Treasury security ______.
With a maturity term of 30 years
Which of the following scenarios accurately represents your environmental disclosure responsibility as a real estate licensee?
You must disclose all known environmental hazards for commercial properties only; residential disclosure is the seller's sole responsibility.
Which term defines an oath by a subscribing witness, such as a notary public, that the grantor's signing of the deed is a voluntary act and enables a deed to be recorded?
acknowledge
An increase in property value is called ______.
appreciation
What's required in order to call an auction?
auction license
Which entity typically owns foreclosed properties?
bank
In which U.S. market(s) do foreign lenders participate?
both primary and secondary
You've helped an investor client with several purchases over the last few years. You're beginning to wonder if you'll actually get the chance to list one of her properties, but she is happy to rent them out. What type of investor is she?
buy and hold investor
Who at the closing table examines all documents for buyers or sellers and represents their best interests?
buyer or seller attorney
At closing, who pays for and receives clear title for the property being purchased?
buyerWho usually represents the lender at a closing?
In terms of investment, liquidity means an investment ______.
can be converted to cash
Which document is used to establish the path and proof of ownership?
chain of title
When obtaining a mortgage to purchase a home, for what does the borrower use the property?
collateral
Which of the following is part of the broker's role at closing?
collect commison
Memoryjet, Inc has developed a new technology for high-volume jump drives. In order to manufacture their new devices they will need to gear up a new production line, which will cost about $85 million. What kind of bond instrument could they use to help secure the funds they need for their new line?
corpoeate bond
Secured corporate bonds use ______ as collateral.
corporate assests
approval for regulated activities in wetlands must be obtained from who?
corps of engineers
What title guarantees will Jody have when she buys a property at a foreclosure auction?
covenant of seisin
As interest rates rise, what is the number of buyers in the market likely to do?
decrease
In order to convey real property, which one of the following documents would you use?
deed
Which of these terms describes the actions that are required to effect a transfer of title by deed?
delivery and acceptnace
Which governmental legislation established the Consumer Financial Protection Bureau?
dodd frank
A group of investors bought property and developed a movie production studio. After a few years in business, the state passed regulations limiting the amount of tax incentives it would offer film studios shooting movies in the state. This move caused several companies to move their shooting to other states, jeopardizing the investors' ability to earn the return they were expecting. What type of risk is this?
dynamic
Economic, tax, and market changes are types of _______ risk.
dynamic
Which term means the power of the government to take private land for public use?
eminenet domain
Under what type of police power is a property owner compensated for the loss of property?
eminent domain
rob purchased a property five years ago for $200,000. He put down $50,000 and financed $150,000. Today, the property is valued at $250,000. What is this an example of?
equity build up
Which type of closing is conducted with a neutral third party holding the funds, and the buyer and seller may never meet?
escrow closing
Closings are usually held ______.
face/face or escrow
Pat and Danielle are buying their first home. They don't have quite enough money saved for the down payment and closing costs. Who could give them a tax-free gift to help with the purchase?
financial advisor
Which of the following statements related to 1031 tax-deferred exchanges is true?
foreign investors may participate
A tenant has a small office space in a professional building. The set monthly lease payment includes maintenance of the common areas of the building such as the restroom and small kitchen, and all nets, utilities, and janitorial charges for the space. The payment also includes taxes and insurance. The landlord takes this payment and pays the individual expenses himself. What type of lease does the tenant have?
gross lease
Which of the following is true about special purpose landfills?
hazardous waste
Your buyer client is under contract to purchase a home. During the inspection, asbestos is discovered in the home. Which of the following is true about asbestos?
health hazard
Of the six categories of real estate, what types of properties are hospitals, urgent care centers, and doctor's offices?
healthcare
In the case of adverse possession, possession and use of a property must be open and notorious. What else must it be?
hostile
Which of the following does the use provision in a lease describe?
how the tenant will use the property including allowable activites
Because these types of properties have both specific physical and complex operational requirements, they are usually handled by more experienced real estate professionals.
industrial
Which feature of the Superfund Amendments and Reauthorization Act (SARA) was the most impactful for landowner liability?
innocent lanowner immunity
Which of the following could be different from the amount on the initial Loan Estimate and can impact the monthly payment?
interest rate
Jessica hasn't paid the roofing company that replaced the roof on her home. The contractor placed a mechanic's lien on her property, which is a(n) ______ lien.
involuntray and specific
What type of provision is standard with either the mortgage or the deed of trust, but is included in the promissory note rather than the security instrument?
late charge
While walking through a potential listing, you clearly see that the vinyl flooring in one of the bathrooms is stained almost black. What should you do?
liable for disclosing known hazards, not suspecvted ones
Question 3 What does the concept "first in time" refer to when discussing lien priority?
liens are paid based on date of filing.
What type of breach of lease remedy is being used when a Texas landlord changes their tenant's locks in attempt to collect rent?
lockout
Barry wants to help prevent mold in his laundry room. What is one thing he can do?
make sure the room has good air circulation
Craig is a Texas tenant with a written estate-for-years tenancy. How much notice must he give his landlord if he wants to terminate his lease upon expiration of the lease term?
none
As ______ property manager, you need to negotiate favorable leases with businesses. Longer-term leases are great for the owner, but you want to make sure you build in stepped-up increases in leasing rates.
office
Petroleum landmen specialize in the negotiation of contracts covering what aspect of land ownership?
oil mineral rights
With this type of commercial lease, if the option to drill isn't exercised within the stated timeframe, the lease expires.
oil or gas lease
What kind of budget serves two primary purposes: to help property managers maximize profitability and to avoid unforeseen major expenses?
operating
Randa is trying to lower the vacancy rates for the commercial property she manages because her revenue targets will increase by 8% over the next year. What type of budget contains this revenue detail?
operating budget
When tenants in common can't agree on how to manage the property and want to terminate their co-ownership without selling the property, how can this be accomplished?
partition
Adams County implemented a 10 p.m. curfew for youths under age 18 because of the high number of fights that have been occurring late at night in public places. Which of the following gives Adams County the right to restrict the movements of its minor citizens?
police power
Mortgage bankers are mostly what type of enterprise?
private
In a 1031 exchange, there are rules governed by Section 1031 of the Internal Revenue Code. The rules include _______.
property exchange must be like-kind
Like other agreements, the property management agreement details the terms of "employment" between the ______ and the ______.
property manager, owner
When solving word problems, which step should be done before you ever touch your calculator?
reading
In the real estate business, which professional's primary role is to provide brokerage services to their clients and to supervise licensees who work for them?
real estate broker
In which phase of the real estate market would you expect to see unemployment increasing, prices falling, and foreclosures on the rise?
recession
In which phase of the real estate market cycle would you expect to see property undervalued and a large supply of homes on the market?
recovery
Consider the travel, tourism, and hospitality industry for a moment. Visiting the best beaches? No problem. Now consider acting as a real estate licensee specializing in resort and vacation properties. It's a whole different beach volleyball game, right? What type of information should licensees know and understand before they can competently represent clients in this specialty area?
regulations for timeshare prooerties and vacation rentals
Timeshare properties are also referred to as _________________.
resort properties
Which of these types of tenants most often uses a percentage lease?
retail
Bridget has an investment portfolio that includes an equity REIT. Which of these is most likely to be part of the REIT's investment?
retail shopping centers
In a lease agreement, what consideration does the landlord give to the tenant?
right to occupy the property
Historically, what do property values tend to do over long periods of time?
rise
Cheri is the lessee of a house with a detached garage. Harriett has leased only the garage from Cheri. However, Cheri remains bound by the terms of the lease agreement with the lessor. This is an example of _______.
sublease
What term is used to describe loans that were approved for borrowers with lower incomes and poor credit histories?
subprime
Property managers spend a good deal of their time overseeing and managing others: maintenance workers, staff, contractors, and sometimes even tenants. To be effective in this area, a property manager needs to have what type of skills?
supervisory
In Texas, in what type of leasehold is the duration of the lease unknown at the time it is created?
tenancy at will
This phase of an environmental site assessment is only conducted when necessary. If a problem is found during the investigation phase, this phase is put into action next.
testing
Zoning ordinances are made up of two parts, a zoning map and ______.
text explaining the ordinances
Who is responsible for reviewing the Closing Disclosure before closing?
the The buyer and the seller
Who's generally responsible for ordering and reviewing a survey of the property?
the buyer
Recently, Francine and her husband, Frank, decided to purchase and restore a historic home in the downtown area. To be eligible for the tax credit for these renovations, Francine and Frank must follow specific federal guidelines when they renovate and restore the home. In addition, the home must be designated as an actual historic property by which of the following?
the department of the interior
What's the minimum number of business days prior to closing that lenders have to provide borrowers with the Closing Disclosure form?
three
How long must a taxpayer have lived in a home in order to claim a capital gain exclusion?
two of the preceding 5 years
Page four of the Closing Disclosure includes consumer education about ______.
use of escrow
Julian is glad that the property owner at the townhouse community he manages established a substantial capital reserve budget for unexpected expenses, like the new roofs needed after a hail storm. What are these types of expenses called?
variable
A lender and a borrower sign a mortgage agreement, placing a(n) ______ lien against the borrower's home.
voluntary and specific
Krista is obtaining a loan to buy a home. Her loan agreement consists of one document called a note and one called a deed of trust. What's the role of the note?
who owes money to who
Which type of investor finds a deeply discounted property, closes on the property transaction, and then immediately sells it to another investor?
wholesaler