Texas Principles of Real Estate II Final Exam | Questions and Verified Answers | Grade A | 2024 / 2025 Update
Question:
the only contract that does not have to be in writing to be enforceable
Answer:
a lease for one year or less
Question:
a person holding a power of attorney
Answer:
Attorney in Fact
Question:
occurs when a new contract is substituted for an existing one.
Answer:
Novation 1 / 4
Question:
when one party fails to perform the duties of the contract-they can be asked by judge to partially perform or substantially perform
Answer:
breached
Question:
money offered to seller to entice seller to go under contract
Answer:
earnest money
Question:
gives buyer the right to demand legal title to the property when the purchase price is paid
Answer:
equitable title
Question:
seller financing and buyer does not get deed until the property has been paid for in full
Answer:
contract for deed/installment contract 2 / 4
Question:
if property was built before 1978 seller must disclose
Answer:
that the property may contain lead-based paint-Federal Law
Question:
_______ is the principle that the more similar properties there are on the market, the lower the price will be driven.
Answer:
Competition
Question:
A _____ is made when a property is sold for more than the original price.
Answer:
Profit
Question:
A _____ is the bottom number of a fraction.
Answer:
Denominator
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Question:
A _____ is the top number of a fraction.
Answer:
Numerator
Question:
A ______ is a ratio that compares two quantities.
Answer:
Rate
Question:
A 20-unit apartment building sells for $5 million. The property can bring in $400,000 in annual gross income. What is the gross income multiplier (GIM)?
Answer:
12.5
Question:
A form of depreciation or loss in value caused by defects in design is called
_______.
Answer:
Functional obsolescence
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