1st Real Estate exam

Texas sales agent applicant Frank's license application was denied. Which of the following parties is responsible for notifying Frank?

TREC

Marissa, a new licensee, has some questions. Which of the following questions can the association of REALTORS in her state help her answer?

Where can I go to find some marketing data on my area so I can advertise more effectively

There are ____ members of the Education Standard Advisory Committee.

12

What is a township?

A 36- square-mile formed in the use of the rectangular government survey system

Which of the following constitutes fraud in real estate according to the Fraud in Real Estate and Stock Transactions Statute?

A listing agent purposely fails to mention the structural damage caused by a recent electrical fire in the wall.

Who can request a CLUE report?

A property owner.

A fair housing specialist is reviewing fair housing complaints. Which of these contains an action that is prohibited?

A transgender woman is evicted from a rental property because she makes the neighbors uncomfortable.

Babs is assured of a commission if the seller's listing sells. What does she likely have?

An exclusive right-to-sell listing agreement

Estate tax is calculated by first computing _______, which is the total of the fair market value of all the items owned by the deceased.

Gross estate value

Which act states that communities and facilities that meet certain criteria for providing housing to older persons are legally exempt from familial status discrimination?

Housing for older Persons act of 1995

Which of the following would be a description used for real property and fixture?

In-ground

Which physical characteristics of land addresses the concept that while improvements may deteriorate over time, the land itself cannot be destroyed?

Indestructibility

How many member of the ESAC committee are public, non-licensee members?

One

Someone whose license has been expired for 90 days or less may renew their license by paying TREC a fee. How much is the renewal fee in these instances?

One-and-a-half times the regular required renewal fee

When must the Addendum for Seller's Disclosure of Information on Lead-Based Paint or Lead-Based Paint Hazards to be attached to TAR's Residential Real Estate Listing Agreement Exclusive Right- to - Sell form?

Only when the seller's property was built before 1978

Marcia Weinstein died, and her property wasn't held in a trust. Thus, her estate will go through ______to ensure her property is distributed to her beneficiaries in accordance with her will.

Probate

What type of asset is held in a land trust?

Real estate

Homeowner Shaun loves DIY projects and decided to build some bookshelves for his home office. He bolted the shelves to the wall and installed trim around them so they became an integral part of the room. When he sells his home, the bookshelves will be considered_______.

Real property because of the method of annexation.

A mortgage lender has landed in hot water for fair housing discrimination. Which of these actions might have gotten the lender in trouble?

Refusing to provide literature about loans to consumers with poor English language skills

Jenner purchased his first home, to which he'll have access forever, as for as he knows. Jenner owns a(n)____?

Freehold Estate

Fred is buying Gary's property, which is listed with broker Sara. Who are the parties to the listing agreement?

Gary and Sara

Billie (Wilhelmina) Silva was just licensed as a broker, and she plans to hang out a shingle and go into business for herself. As a sole proprietor, which of the following business names can she not use?

Happy Homes Realty

Kellan and Stacey are in the midst of a property dispute. Each party has a legal description and survey that show conflicting boundaries between their properties. What may be the best way to resolve this dispute?

They must take the dispute to court.

Texas resident Sonny, who doesn't have a real estate license, helps his brother's neighbor, Nicole, sell her house. He charges her commission of $3,000, which she happily pays. Which of the following is true in this situation?

Sonny may have to pay administrative and civil penalties

DeeAnna though she purchased an investment property, but the seller refused to deliver the title to her. DeeAnna met all of her obligations per the written contract she and the seller signed. She decided to take the seller to court in an effort to force him to hand over the title. This is an example of ________.

Suing for specific performance

What language may be included in a contract after the assignor's name to make it clear that the contract is assignable?

"And/or assigns"

What is the maximum payment amount for a claim from the Recovery Trust Account for a single transaction?

$50,000

Which stage of the real estate cycle is considered the bottom?

Depression

A real estate licensee is acting as what type of agent when assigned by the broker to represent one party in an in-house transaction?

Designed

Which of the following is not one of the guidelines for marketing to your sphere?

Don't advertise anywhere else.

The right to access ponds, lakes, and other stationary bodies of water is?

Littoral

Harmony is looking at the legal description on her purchase contract. It mentions that the plat of her property is recorded in Map Book 12, page 14, at the county courthouse. What type of legal description is this?

Lot and block

Lucas, Ivan, Chad, and Trace own a property as joint tenants. After a few years, Ivan sells his interest to Tom( with permission from Lucas, Chad, and Trace). Chad dies intestate but is survived by a wife, Amy. Trace also then passes away but wills his property to Monique. Who owns the property after Trace's death?

Lucas and Tom

In a trust, the trustee is the person who?

Makes sure the terms of the trust are carried out.

What is the value a buyer and a seller agree upon?

Market Value

If the land is described as " Beginning at the great oak 60 yards from the center of the Rock River that runs north to south through the country, " what type of legal description is being used?

Metes and Bounds

Which of the following elements is always required for a real estate contract to be valid?

Consideration

To meet the requirements of the statute of frauds, and agreement must clearly identify to contact's subject matter, present the contract's essential terms and conditions, and _______to be enforceable.

Identify the contacting parties

Which of the following statements about a partnership is true?

In is a business organization owned by two or more partners.

Which area of real estate law covers how an agency relationship is created and explains the duties of an agent to the principal?

Law of agency

What is the difference between ethics and the law?

Laws are legally enforceable. Ethics aren't legally enforceable until they become law.

The____ is the price at which an owner has offered to sell the property, and is the amount that's found on the MLS when a property is listed for sale.

List Price

Landowner, whose land borders a lake, have what type of water right?

Littoral

Which of the following states that, in certain cases, oral evidence can be used to support or complete an otherwise incomplete or ambiguous contract?

The Parol evidence rule

Real estate licensees in Texas need to pay attention to updates from what agency, which is responsible for enforcing Texas Fair Housing Law?

The Texas Workforce Commission Civil Rights Division

Simon is buyer represented by Peter. Peter shows Simon several home currently on the market. What is Peter's relationship to the seller, if he doesn't represent them?

The sellers are Peter's customers

Which of these is illegal: disparate impact or disparate treatment?

They are both illegal

Which of the following does the Texas Free Enterprise and Antitrust Act of 1983 make unlawful?

Any contact or conspiracy resulting in the substantial decrease of competitive trade or commerce within the state.

The term "real estate" refers to which of the following under TRELA's general provision?

Any interest in real property, including a lease hold, located in or outside of Texas

In what way or ways do consumers compensate brokers for their services?

As a flat fee, fee for service, and/or percentage of sale

Eloise is interested in buying a bungalow on the outskirts of the city. Her agent is reviewing the property details and informs her that there are several easement on the property. In particular, the gas company has the right of way because the natural gas line for the neighborhood runs through the back of the lot. What type of easement would this be?

Easement in gross

Licensee Dionne pointed out to her buyer client the items in the house she was showing that would be considered real property. What is one of the key determinant that show that something is real property (also known as a fixture)?

Permanent affixed to the property

Deed restrictions imposed by a developer who want to maintain specific standards in a subdivision under development are often called?

Restrictive covenants

Navigable and non-navigable waterways are smaller classification within what kind of water rights?

Riparian

Sally is a broker in Dallas and has been for 12 years. She enjoys the responsibility, and enjoys the weight of accounting on her shoulders. Luckily, the law protects her from having to know everything. Which of the following is an example of this provision?

Sally cannot be held liable for not asking is a current or previous resident of a home has any related illnesses to HIV or AIDS.

What phrase do many real estate contacts contain that reminds the parties to avoid unnecessary delays to the transaction, and to adhere to all contract dates?

Time is of the essence

Ned is listing agent who has learned of a material fact related to the transaction. To whom and when must he disclose this information?

To all parties as soon as possible

What is the purpose of a listing agreement?

To spell out the agreement between the listing broker and the seller.

First Baptist Church in Houston owns two apartments next door to the church, which used to be housing for its ministerial staff. It does not rent to non-Baptist. Is this legal in Texas?

Yes. As long as it does not discriminate based on race, color, or national origin.

Vanessa is a sales agent who must renew her license in two months. Unfortunately, she has put off taking her continued education courses, and now there is no possibility way for her to complete the required 18 hours prior to renewal. Does she have any other options?

Yes. Vanessa can defer her continued education requirements, but she must take them and renew her license before the 60th date from the date her license expired.