pg. 1 Texas SAE Real Estate Investment Test 2025 With 350 Practice Questions and Correct Verified Answers/ 2025 Texas SAE Real Estate Investment Exam Prep (Brand New!)
Gary leases a commercial building and pays all expenses related to the building, including taxes and insurance. Gary has a ______.
- Gross lease
- Net lease
- Percentage lease
- Sublease
- Net lease
**With a net lease, the tenant pays some, or all (in the case of a triple net lease), expenses.Which of these is a static risk?
- A decline in economic conditions in the area
- Change in tax code
- Fire damaging the building
- Market change
- Fire damaging the building
**Static risks are those where the effect can be lessened with insurance. This includes vandalism, theft, fire, and accident liability.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?
- Illegal
- New signing
- Rental
- Temporary 1 / 4
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- Rental
**Rental concessions can sometime mean a decrease in rent, or even free rent, for a certain amount of time.An appraiser is using the direct capitalization method to calculate a value for an investment property. Which of the following is true?
- The subject property's income is expected to vary a lot over time.
- This method considers anticipated resale value.
- This method considers future income streams.
- This method converts a single year's expected income into a market value.
- This method converts a single year's expected income into a market value.
**The direct capitalization method converts a single year's expected income into a value. It doesn't consider future resale value or future income streams, and is primarily used with properties where yearly income doesn't vary a lot over time.Victims of fair housing discrimination can seek redress in federal court. Within how many years of the alleged violation do they have to do so?
- Four years
- One year
- Three years
- Two years
- Two years
**Victims may seek redress in federal court within two years of the alleged violation. There is no limit on the amount of punitive damages that may be awarded to a victim in federal court.Your client, Gabriel, has invested in a rental property. He looks at his property's operating statement, tweaks the numbers based on his knowledge of the market, and re-works the statement. Gabriel has created ______.
- A debt service statement
- A gross income statement 2 / 4
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- An operating income statement
- A pro-forma statement
- A pro-forma statement
Remember that Gabriel is changing the numbers of the operating statement based on his knowledge of the market.What's a land banker?
- A financier of raw land
- An appraiser who works with lenders to value raw land
- An investor who buys land, develops it, and leases it
- An investor who holds land in inventory
- An investor who holds land in inventory
**A land banker holds improved land or lots in inventory, banking on appreciation.A neighborhood that has been disintegrating for some time is undergoing a rejuvenation, with several properties on one block being heavily renovated or entirely rebuilt. As a result, even the properties that are still old and shabby increase somewhat in value. This is the principle of ________.
- Anticipation
- Conformity
- Progression
- Regression
- Progression
**The principle of progression says that a lower-value property gets a bump in value by being near a higher-value property.What type of deed are you likely to receive if you purchase a property with cash at a foreclosure auction?
- Bargain and sale deed
- Executor's deed 3 / 4
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- Full covenant and warranty deed
- Referee's deed
- Referee's deed
**You are likely to receive a referee's deed from purchasing the property at a foreclosure auction.Who is the withholding agent under Foreign Investment in Real Property Tax Act?
- The buyer
- The buyer's lender
- The seller
- The seller's real estate broker
- The buyer
**The buyer must withhold the tax or they could be liable for it.Honey is the seller in an installment sale of a residential property. She is paying her capital gains tax through installment sale deferment, and her installment obligations at the end of the tax year will be less than $5 million. Given her situation, which one of the following statements is true?
- Honey is a dealer.
- Honey may be subject to tax on gains at the ordinary income rate at the time of
- Honey must pay the capital gains tax in full at sales time.
- Honey will only pay taxes proportionate to the gain collected each year.
- Honey will only pay taxes proportionate to the gain collected each year.
sale.
Through installment sale deferment, Honey will pay taxes proportionate to the gain collected each year. Her installment obligations will be less than $5 million, so she won't be subject to taxes on gains at the ordinary income rate at the time of sale.Lyn runs a brokerage and maintains a master file for all the office transactions. The file must be maintained for how long?
- As long as Lyn's state requires
- / 4