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Texas Real Estate Exam > Principles Of Real Estate 2 > Flashcards

Principles Of Real Estate 2 Flashcards

1
Q

Loss of value due to lack of modernization is called…

A

Functional Obsolescence

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2
Q

The ____ is considered the most reliable approach to value because it is based on verifiable market events.

A

Sales comparison approach

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3
Q

A loss in a property’s value due to daily wear and tear is an example of…

A

Physical deterioration

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4
Q

The appraiser will use the cost approach to value…

A

A unique building

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5
Q

A real property appraisal will contain an analysis of each of the following, EXCEPT…

1 Improvements to the site
2 Site description
3 Neighborhood description
4 Personal Property

A

Personal property

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6
Q

The appraisal principle of conformity tells us that a house is worth the most when…

A

It is in a neighborhood of similar priced homes

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7
Q

Official property value for tax purposes is called…

A

Assessed value

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8
Q

The appraisal principle of ____ states that the purchase price of a property is affected by the expectation of future appeal and benefits.

A

Anticipation

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9
Q

The best definition of market value is…

A

The most probable price a property should bring in a competing and open market

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10
Q

The effective age of a house can be younger than its ____ if it has been well-maintained.

A

Chronological age

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11
Q

In which approach to value is the appraiser calculating depreciation as a factor along with land value and replacement cost for a structure?

A

The cost approach

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12
Q

The primary purpose of the FHA is…

A

To insure loans

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13
Q

When a loan is funded, the FHA charges a(n) ____ which can be paid at closing or added to the loan at funding.

A

Up-Front Mortgage Insurance Premium

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14
Q

The borrower’s monthly payment includes principal and interest plus one-twelfth of the annual property tax assessment and one-twelfth of the annual insurance premium. This is a…

A

Budget loan

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15
Q

What are three characteristics pertaining to the use of gift funds in government loans?

A
  • Property must be owner-occupied
  • Donor must be a relative, domestic partner, or finance
  • Gift funds may be used for the entire down payment
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16
Q

A person who brings a borrower and lender together for a fee is called…

A

A mortgage broker

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17
Q

Most of the specific requirements imposed by TILA are found in….

A

Regulation Z

18
Q

The ____ is the percentage of the lesser of the appraised value or sales price that the lender will lend.

A

Loan-To-Value Ratio

19
Q

The Loan Estimate…

A

Is a detailed breakdown of the cost of the loan

20
Q

The Equal Credit Opportunity Act prohibits credit discrimination on the basis of…(Name 3)

A
  • Race
  • Religion
  • Sex
21
Q

Some characteristics of property taxes?

A
  • Property taxes create the highest priority lien against property
  • Unpaid taxes are an automatic lien and at foreclosure will always be paid first.
  • If property taxes are not paid, the property will be sized and sold
22
Q

Which of the following is one of the four rights that the government retains in land?

A. Variance
B. Escheat
C. Allodial
D. Ad Valorem

A

Escheat

23
Q

Police Power is the…

A

Right of the government to regulate and control the way land is used

24
Q

If a landowner sues the government in order to force it to buy his or her land, this is called…

A

Reverse condemnation

25
Q

A ____ is one in which a property, with the consent of the lender, is sold by an owner/borrower at a price that is not sufficient to pay off the existing mortgage.

A

Short sale

26
Q

A Residential Mortgage Loan Originator must be licensed with…

A

The as Department of Savings and Mortgage Lending

27
Q

A sponsoring barker must…

A

Require that sales agents are adequately trained in the area in which they practice

28
Q

The CHMS designation is a designation for…

A

License holders specializing as a residential seller’s agent

29
Q

Leverage is…

A

The use of borrowed money to make money

30
Q

Some disadvantages of real estate investment include…

A
  • Risk
  • The need for management
  • lack of liquidity
31
Q

What are some objectives investors invest in real estate to satisfy?

A
  • Appreciation of properties
  • Income derived from collecting rents
  • Investment gain
32
Q

The TREC buyer’s temporary lease agreement, or seller’s temporary lease agreement is for periods of time of…

A

Any number of days

33
Q

Which of the following is a requirement of a valid lease?

A

Competent parties

34
Q

Which of the following types of leases would be most appropriate for a shopping center?

A

Percentage Lease

35
Q

A lease for a period of more that one year must be in writing to comply with the ____.

A

Statute of Frauds

36
Q

Which of the following is one of the four leasehold estates

A

Tenancy at Will

37
Q

The Landlord and Tenant Act…

A
  • Is a lengthy and detailed set of rules that address issues such as security deposits, default, repairs, damage to property and the eviction process
  • Defines the rights and obligations of both landlord and tenant in the leasing of residential and commercial properties
  • Is found in the Texas Property Code, Title 8
38
Q

The ____ is an instrument or conveyance used to create a leasehold estate.

A

Lease

39
Q

The property manger’s employment contract is the…

A

Management agreement

40
Q

The property manager is most often an employee or…

A

A general agent of the owner

41
Q

A few responsibilities of the property manager are to…

A
  • Generate income for the owner
  • Preserve the value of an investment
  • Serve as a “buffer” between the tenant and the landlord
42
Q

Closing Disclosure

A

A final closing disclosure to the consumer that must be received by the consumer 3 days before closing

Texas Real Estate Exam (19 decks)

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