Texas Real Estate Principles 2 Practice Test

These questions are part of the practice quiz. Start practicing

• What is referred to as the "principal" in a mortgage loan?
• What advantage does a one-and-one-half story house offer compared to a one-story house?
• Which of the following is not typically associated with government intervention in real property use?
• What is the most appropriate action to take if a material fact is discovered after a home is listed?
• What does title insurance protect against?
• What role does a "buyer’s agent" play in real estate transactions?
• Which type of house is defined by having complex floor plans and multiple stairwells?
• Which processes allow the government to say no to particular uses of private property?
• What does the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) focus on?
• Which act outlines consumer rights and builder duties in regards to home construction?
• What does "market segmentation" refer to?
• What does a floodplain refer to?
• What does the energy efficiency ratio measure?
• What is a "special assessment" in property taxation?
• What does "zoning" refer to in real estate?
• What does the "law of agency" govern?
• Explain the "Equal Credit Opportunity Act."
• Describe "gross rental income."
• What documentation is typically required to obtain a mortgage?
• What term is used for the process where property reverts to the government when an owner dies without heirs or a will?
• What might trigger the use of a balloon payment in financing?
• What is a "short sale" in real estate?
• Which of the following is NOT a characteristic of a balloon payment?
• What are the smallest allowable parcel sizes for subdivided property referred to as?
• What type of house provides benefits similar to those of a two-story house?
• In zoning terms, what typically does not fall under standard subdivision?
• Which term describes areas where water remains at or near the surface during the growing season?
• What is the statutory period for filing a mechanic's lien in Texas?
• What is the primary purpose of taxation concerning private property?
• What defines a standard subdivision?
• What serves as a general guideline for the allowable heights of structures within a specified area?
• Who is required to provide a property disclosure statement?
• What is the extraterritorial jurisdiction (ETJ)?
• What legislation requires the EPA to establish national standards for clean air?
• What is the R-value a measure of?
• Which statement about the Texas Real Estate Commission (TREC) is true?
• In what context is "due diligence" most critical?
• What term is used for the restoration of a property to its former or improved condition without altering its basic design?
• What types of insurance are generally required for real estate transactions?
• Which situation represents a potential violation of zoning laws by an individual property owner?
• What does "subordination" mean in real estate?
• When would a regulatory taking occur?
• What distinguishes a common interest development from other property types?
• Define "foreclosure."
• Why is it important for buyers to review the property disclosure statement?
• What does categorical exclusion refer to in environmental projects?
• What is a planned development according to zoning terms?
• What term describes the government's power to take private property for public use, compensating the owner fairly?
• What does "REO" stand for in real estate?
• What does "closing" refer to in a real estate transaction?
• What does "eminent domain" allow the government to do?
• Which best describes the Texas Property Code?
• What does a condominium consist of in terms of property interest?
• What is the definition of potable water?
• What is a defining feature of a split-level house?
• What does "due diligence" refer to in real estate?
• Which zoning practice is considered illegal due to its incompatibility with surrounding areas?
• What are areas identified by FEMA as having a high risk for flooding called?
• What is the primary purpose of title insurance?
• What is meant by "fiduciary duty" in real estate?
• Which housing type is least likely to have complex floor plans?
• What is the term for an illegal agreement between a city and a property owner regarding zoning classifications?
• In Texas, when must sellers disclose known property defects?
• Which zoning practice is intended to create compatibility between the structure and its surrounding area?
• What is typically assessed during a property appraisal?
• Which of the following houses is characterized by two levels of living space but maintains a compact layout?
• What is a common interest development (CID)?
• What is defined as zoning that allows a property to be used in a way not typically permitted under current zoning regulations?
• Which term describes a legally recognized claim against a property?
• What is the term for changes made to the basic design or plan of a building, often to correct deficiencies?
• What is a property disclosure statement?
• What does zoning regulate in a municipality?
• What term describes the regulations on how close a structure can be built to neighboring property lines?
• What term refers to uses that meet the current zoning requirements of a district?
• What does the term "escrow" refer to?
• What is property management?
• Which of the following is NOT a requirement for a real estate license application in Texas?
• What does "cap rate" measure in real estate?
• What is the purpose of a "lease agreement"?
• What benefit does a "homestead exemption" provide to homeowners?
• What could happen if a seller fails to provide a property disclosure statement?
• What regulates how tall a building can be constructed relative to the average grade?
• Which type of listing allows a seller to market their property through multiple brokers?
• What distinguishes a one-and-one-half story house from a traditional one-story house?
• What is the main goal of the Clean Air Act?
• What does the Interstate Land Sales Full Disclosure Act govern?
• What is the role of the Federal Housing Administration (FHA)?
• What does "escrow account" mean?
• What defines wetlands in environmental terms?
• What is the Texas regulatory agency for environmental issues?
• What typically happens if a seller fails to disclose property defects?
• What does the "Texas Property Code" encompass?
• Which party benefits from a property disclosure statement?
• What is the primary focus of public restrictions?
• What factor is most critical in determining a property's market value?
• What do building codes regulate?
• Which legislation aims to balance economic development with environmental conservation in coastal areas?
• What is a "listing agreement"?
• What refers to the timely payment of mortgage installments as agreed in the loan terms?
• What are "disclosures" in real estate?
• What may happen if the statutory period for a mechanic's lien is not adhered to?
• What does "agency" refer to in real estate?
• What does "commingling" refer to in real estate?
• What does the term "building envelope" refer to?
• What is referred to as a use that existed before a zoning ordinance was enacted and does not comply with current zoning laws?
• What is the function of a homeowner's association (HOA)?
• Which of the following describes the nature of a balloon payment?
• Which act provides for the management of the nation's coastal resources?
• A federal project may require which process to determine its environmental impact?
• What is the primary purpose of environmental regulatory agencies like TCEQ?
• If a property use is not specifically listed as permitted, what is it considered?
• What term identifies all possible classifications that may be assigned to a specific parcel of land?
• What is the main difference between a mortgage and a deed of trust?
• What is the main use of a "comparative market analysis" (CMA)?
• What is commonly indicated by a high R-value?
• What type of listing agreement involves a broker providing only specific services to the seller?
• What is the focus of the Environmental Assessment (EA)?
• Which act regulates the discharge of pollutants into the waters of the United States?
• What type of zoning allows property owners to develop their land as they choose?
• How is a "lease option" structured?
• Which document typically establishes the rules for an HOA?
• How is "interest" on a mortgage typically structured?
• What is the primary function of zoning laws?
• How does a balloon payment affect loan repayment strategy?
• Which type of house may cost less to heat, cool, and build due to aligned plumbing and fixtures?
• What is "adverse possession"?
• Which of the following is a responsibility of local government in land use planning?
• Which statement best describes a mortgage?
• What is an outcome of a successful "comparative market analysis"?
• Which action would be a violation of fiduciary duty?
• Which of the following is typically included in a property appraisal?
• How many continuing education hours are required for license renewal in Texas?
• What type of taking occurs when the government occupies private land for a public purpose?
• What characterizes a "visible easement"?
• What is the "income approach" in property valuation?
• Which authority has the right to enforce deed restrictions?
• What describes uses that are allowed without requiring additional permissions from the city in a particular zoning district?
• What distinguishes a "REALTOR®" from other real estate agents?
• What is the primary role of the Texas Real Estate Commission (TREC)?
• What document serves as proof of ownership of real property?
• What is a comprehensive plan?
• In land use, what describes the minimum distance structures must be from property lines?
• What is defined as "real property"?
• What does the National Environmental Policy Act (NEPA) require?
• Which components are typically included in a "sales contract"?
• What architectural style is NOT typically associated with multi-level houses?
• When is a property disclosure statement typically presented?
• What does fair housing law prohibit?
• How is a "Real Estate Investment Trust" (REIT) defined?
• What is the primary benefit of having plumbing and fixtures aligned in a house?
• In which type of house would you likely find an expanded attic?
• Which of the following pertains to the government's authority to impose restrictions on property for the welfare of its citizens?
• What does "dual agency" mean in real estate?
• Who benefits from a homestead exemption?
• Which term refers to the physical barrier that separates a conditioned space from the outdoors?
• Which architectural styles are characteristic of multi-level houses?
• Which type of legal document transfers interest in real property without any warranties?
• How is "market value" of a property defined?
• How frequently must a real estate licensee renew their license in Texas?
• What does a variance allow a property owner to do?
• Which term refers to the restrictions the government can impose on the use of land without taking ownership?
• What zoning classification is required to ensure development is in accordance with a city’s comprehensive plan?
• Which of the following describes potable water?
• Which of the following can classify a balloon payment?
• What may be included in a property disclosure statement?
• Which of the following is not typically part of a sales contract?
• What is the primary role of an "appraiser"?
• What is the primary purpose of a property disclosure statement?
• Which entity usually keeps the property disclosure statement on file?
• What is the purpose of a conditional use permit in zoning?
• Low-flow fixtures are designed to:
• Which of the following is an important feature of a programmable thermostat?
• What is a potential consequence of defaulting on a mortgage?
• Which of the following best describes the concept of eminent domain?
• What is the primary purpose of using low-flow fixtures in plumbing?
• What does a balloon payment refer to in mortgage terms?
• Which type of thermostat can adjust temperatures based on different schedules?
• How does a one-story house generally compare to two-story houses regarding maintenance?
• What is the purpose of an earnest money deposit?
• Which type of house is typically the easiest to maintain and the most common in the US?
• What does EPAct require regarding plumbing fixtures?
• What is NOT a benefit of earning a real estate license in Texas?
• What qualifies as a "material fact" in a real estate transaction?