TEXAS SAE REAL ESTATE INVESTMENT 2 LATEST VERSIONS (VERSIONS A & B) ACTUAL EXAM 300 REAL EXAM QUESTIONS AND CORRECT DETAILED ANSWERS WITH RATIONALES (VERIFIED ANSWERS)|ALREADY GRADED A+

TEXAS SAE REAL ESTATE INVESTMENT 2 LATEST

VERSIONS (VERSIONS A & B) 2023-2024 ACTUAL

EXAM 300 REAL EXAM QUESTIONS AND CORRECT

DETAILED ANSWERS WITH RATIONALES (VERIFIED

ANSWERS)|ALREADY GRADED A+

TEXAS SAE REAL ESTATE INVESTMENT VERSION A

In order to entice tenants to sign a lease agreement with her, Margo is

offering to decrease the tenant's first two months' rent. What type of

concession is this?

a. Illegal

b. New signing

c. Rental

d. Temporary - ANSWER- c. Rental

Rationale: **Rental concessions can sometime mean a decrease in

rent, or even free rent, for a certain amount of time.

Which corporate structure avoids double taxation?

a. C corporation

b. General corporation

c. Limited corporation

d. Subchapter S - ANSWER- d. Subchapter S

Rationale: **By being taxed as a partnership, Subchapter S avoids

taxation at both the corporate and individual levels.

Ezra has filed a fair housing discrimination complaint against an

investor. HUD is investigating. Within how many days of receiving the

complaint does HUD have to respond?

a. 100

b. 30

c. 60

d. 90 - ANSWER- a. 100

Rationale: Within 100 days of receiving the compliant, HUD will

investigate and determine whether reasonable cause exists to bring a

charge of illegal discrimination against the alleged offender, or it

will dismiss the case.

What does "cash-on-cash return" mean?

a. A comparison of before-tax cash flow to cash invested

b. Making money hand over fist

c. Net income after taxes are deducted

d. Trading international currency - ANSWER- a. A comparison of

before-tax cash flow to cash invested

Rationale: **Cash-on-cash return is a ratio or percentage. It

compares before-tax cash flow to cash invested.

Which statement describes the purpose of the Interstate Land Sales Full

Disclosure Act?

a. To help state governments control growth.

b. To increase special assessments in areas of development.

c. To protect consumers from fraudulent purchases.

d. To provide consistent laws for real estate licensees who work in more

than one state. - ANSWER- c. To protect consumers from fraudulent

purchases.

Rationale: **The act requires registration with the Consumer

Financial Protection Bureau, and disclosure to buyers. Its purpose is

to protect buyers from fraudulent sales of land that have been

purchased sight unseen.

What is the formal action to impose the property tax?

a. Ad valorem basis

b. Appropriation

c. Levy

d. Ordinance - ANSWER- c. Levy

Rationale: **A levy is the imposition of a tax. You've probably

heard the term "tax levy." That simply means the tax imposed.

How do you calculate maximum equity?

a. Divide annual debt service cost by loan factor

b. Divide annual NOI by debt coverage ratio

c. Divide cash flow by desired rate of return

d. Subtract annual debt service cost from annual NOI - ANSWER- c.

Divide cash flow by desired rate of return

Rationale: **To calculate maximum equity divide cash flow by

desired rate of return.

Ken, Barbie, and Skipper owned a property as a joint tenancy. When

Skipper moved out of state, she sold her interest to Midge. Two years

later, Ken died. How is the interest in the property divided?

a. Barbie and Midge each own 50%.

b. Barbie and Skipper each own 50%.

c. Barbie, Midge, and Ken's heirs each own one-third.

d. Barbie owns two-thirds, and Midge owns one-third. - ANSWER- d.

Barbie owns two-thirds, and Midge owns one-third.