TEXAS REAL ESTATE INVESTMENT EXAM 2023-2024 ACTUAL EXAM 250 QUESTIONS AND CORRECT DETAILED ANSWERS (VERIFIED AND CORRECT ANSWERS) |ALREADY GRADED A

TEXAS REAL ESTATE INVESTMENT EXAM 2023-2024

ACTUAL EXAM 250 QUESTIONS AND CORRECT

DETAILED ANSWERS (VERIFIED AND CORRECT

ANSWERS) |ALREADY GRADED A

What do cooperative owners receive to demonstrate ownership? -

ANSWER- Corporation shares and a proprietary lease

What does income shelter mean? - ANSWER- It means that the income

received is sheltered from taxation.

Which of the following statements is a true statement about points paid

by a borrower for refinancing? - ANSWER- If a portion of the amount

refinanced is used to improve the home, points could be deductible

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? - ANSWERDynamic

Which of the following is a current trend in condominium investments? -

ANSWER- Applying the condo format to other types of properties

Price levels are an indicator of _______. - ANSWER- Demand

What type of asset is held in a land trust? - ANSWER- Real estate

Lendright Home Loans asked a trustee to begin foreclosure proceedings

as permitted by the power-of-sale clause in the security instrument. This

action does not need to involve the courts. What type of foreclosure

process is being used? - ANSWER- Non-judicial foreclosure

Which type of real estate property can be divided into classes A, B, and

C? - ANSWER- Office buildings

Which two numbers do you add to calculate maximum price? -

ANSWER- Maximum equity and maximum loan

Who is the withholding agent under Foreign Investment in Real Property

Tax Act? - ANSWER- The buyer

Which type of property lends itself more to farming and agriculture? -

ANSWER- Large, flat acreage properties in rural communities

Which document details the duties of the condominium board and the

scope of its power? - ANSWER- Bylaws

Property manager Cal has received three middle-of-the-night voice

messages on his phone from the same tenant, Lin, who is furious with

Cal's standard late rent fee. The late rent policy is spelled out in Lin's

written lease. What should Cal do? - ANSWER- Talk to Lin as soon as

possible, listen to his complaint, and help him understand that the fine is

non-negotiable.

Sam and Monique knew that the old industrial site that they purchased

needed some environmental cleanup, but they don't have the cash and

put cleanup on hold. The EPA hired its own crew to deal with

groundwater issues because of industrial solvents and billed Sam and

Monique $164,000 when the job was complete. If Sam and Monique

don't pay the bill, which of the following could happen? - ANSWERThe EPA can seek damages in court for up to three times the actual

cleanup costs.

Another name for a coupon bond, which is rarely issued anymore, is the

_____bond. - ANSWER- Bearer

Cap rate is ______. - ANSWER- A way of quickly valuing incomeproducing properties in comparison to other properties

Vacancy rates in existing brick-and-mortar stores are around ______. -

ANSWER- 14%

Which organization manages a community's budget, zoning, and

building code review, among other things? - ANSWER- Local planning

board

Your tenant, Tom, has called to complain about a broken water heater.

You hire someone to replace it. What type of maintenance are you

performing? - ANSWER- Corrective

What's the name of the tax program that requires a withholding of a

portion of the gross purchase price when foreign owners of real estate in

the U.S. sell that property? - ANSWER- Foreign Investment in Real

Estate Property Tax Act (FIRPTA)

A property valued at $500,000 is returning a net annual income of

$45,000. What is the cap rate for this investment? - ANSWER- 9%

Which of the following statements describes an off-site residential

property manager? - ANSWER- Supervises on-site personnel for

multiple properties

In response to the increase in foreclosures and losses on their balance

sheets, not to mention a reduced market for subprime loans, many

lenders slowed their lending activities. What was the impact of this on

the overall economy? - ANSWER- The economy headed into a

recession.