ce shop tx class 1

In Texas, a party to a contract has ______ from a contract breach to sue the other party.

4 years

Leon and Beth own 1/13 of a timeshare estate. They own weeks 20 and 21, and also weeks 40 and 41. These weeks are inheritable. What type of ownership is this?

70% Fee simple

A listing agreement is an employment contract between _______.

A broker representing the brokerage company and a seller

Which of these scenarios is legal?

A homeowner makes a room available for rent in her residence, but only interviews female applicants.

Which of the following trusts is created according to the terms of the will of a deceased person?

A landlord charges an extra $100 security deposit for each child living in a property.

In Texas, it is legal for licensed real estate brokers to rebate commissions to ______.

A party to a transaction

A homeowner is not able to complete a repair or rebuild after a home is damaged. This is an example of what type of coverage?

Actual cash value

Who is responsible for funding the Real Estate Recovery Trust Account? All real estate license and certificate holders

All real estate license and certificate holders

To what properties does the Texas seller's disclosure of property condition law apply?

All single-family residential properties

What is a special flood hazard area?

An area where flood insurance is mandatory

Under which Texas law, can consumers receive damages of up to triple their original damages if they can show that the licensee acted "knowingly"?

An option fee

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

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

Which of the following is true about the statute of frauds?

Any form of written contract, including email communication, may be considered "in writing" and binding.

To calculate property taxes, multiply the ______ by the tax rate.

Assessed value

Mary agreed to buy her mother's house when her mother planned to move to a senior living community. They signed a purchase agreement, but when Mary had to move because of work, she signed her rights in the contract over to her sister, Tina. Mary may still owe money if Tina can't come up with the agreed-upon funds. What's happening in this scenario?

Assignment

Belinda is a licensee whose client asked her to draft an addendum containing complicated terms that even Belinda doesn't fully understand. Belinda should ______.

Avoid unauthorized practice of law

Which of the following is/are illegal?

Because they're minors. Both disparate impact and disparate treatment

Which one of the following statements about real estate licenses is true?

Before you can legally perform any activities that licensed real estate professionals perform, you must have your real estate license.

Which of the following statements is true regarding community property rights and property ownership?

Both partners may own other properties purchased before the marriage separately (in severalty), but any properties purchased during their marriage are owned equally.

In Texas, before a person can transfer an interest or enter into a sales contract for a residential property that is encumbered by a recorded lien, what disclosure must that person provide?

Conveyance of Residential Property Encumbered by Lien

It's usually in the best interest of the client for licensees to do what?

Cooperate.

Indicate which of the following statements is true regarding legal life estates.

Created by operation of law

Javier represents Marcus, who's selling his rental property to Ben. Ben is represented by another real estate licensee, Francis. What is Ben's relationship to Javier?

Customer

You're holding an open house for Brenda. Walt and Mary walk in and ask for a flyer that gives details about the property. Walt and Mary are now your ______.

Customers

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?

DTPA

Which of the following may an owner place on the land when it's sold to limit the use of the property?

Deed restriction

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

Depression

Which one of the following actions is a licensee required to take to fulfill a fiduciary duty?

Disclose personal interest and licensed status when buying property for personal use.

With which type of government power is a property owner compensated when the government imposes an involuntary title conveyance for the public good?

Eminent domain

As a stipulation of the ______, lenders must offer reasons when rejecting loan applications and must respond to all applications within 30 days.

Equal Credit Opportunity Act of 1974

_____ is an estate for an unknown period of time in which either party may terminate the lease by giving notice to the other.

Estate at will

There are three types of listing agreements. They are _______, exclusive agency, and open listing.

Exclusive right to sell

Jay has a listing agreement with Maury. Even if Maury finds the buyer during the listing term, Jay has earned his listing commission. What type of listing agreement do they have?

Exclusive right-to-sell

Which agency enforces fair housing law?

FHEO

Which protected class is protected against discriminatory practices, such as against placing limitations on the number or age of children in the residence?

Familial status

A general homeowners insurance policy does not cover______________________.

Flood damage

Which of the following is a key consideration and starting reference for a metes and bounds description?

Happy Homes Realty

Francis, an associate broker, promised his brother, Fred, who is unlicensed and not an attorney or trustee, that he would pay him a portion of his commission when he closed on the Maple Street transaction. Under what circumstances would this be legal?

If Fred were a party to the transaction, and this rebate was paid by Francis's broker

In Texas, a real estate licensee who represents a party to a transaction must ensure that all contractual documents and agreements are ______.

In writing

The Johnsons have owned a small restaurant for more than 20 years. It's open for lunch and dinner six days a week, and 80% of its weekday revenue comes from the happy hour drink and appetizer specials. The town in which their restaurant is located recently constructed a new middle school and stripped the liquor license from the Johnsons' restaurant, because it no longer complies with the ordinance to be 500 feet from a school property. The Johnsons have accused the town of _____.

Inverse condemnation

Applying a capitalization rate to the net operating income is one way to determine a property's ______ value.

Investment

Which of the following statements best describes a lease agreement's purpose?

It identifies the terms of a lease transaction between the landlord and the tenant.

What's NOT true of an easement appurtenant?

It's an encumbrance on the dominant property.

Jonathan has always wanted to be a real estate broker, owning his own brokerage and showing other individuals the real estate ropes in Texas. He received his license as a sales agent three years ago today. As he celebrates his third anniversary, he is looking forward to meeting the experience requirement so that he can pursue his broker's license someday. How much longer must Jonathan wait to apply for his broker's license?

Jonathan must wait another full year before he can apply, because the requirement is to be an active agent for 48 of the previous 60 months.

Which area of real estate law covers lease agreements?

Landlord-tenant

The residents of Blair Avenue are a close-knit bunch. They're all young couples with small children, and they don't want this dynamic to change when two of the couples have to move. Those couples sign an agreement promising not to sell to anyone without kids or to anyone over the age of 50. The contract can't be enforced because it's missing ______.

Legal purpose

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

Which of the following is deductible on an income tax return if the criteria is met?

Loan origination fee

In general, which factor has the greatest impact on a buyer's decision to purchase a home?

Location

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

Which of these policies is an example of discrimination based on familial status?

Make a reasonable effort to ascertain all material facts concerning each property for which an agency is accepted.

Which of the following is the duty of the State Office of Administrative Hearings at a hearing of an alleged violator?

Making findings of fact and conclusions of law

Licensee Clint operates as an independent contractor associated with Red Hat Properties and its broker, Margaret. Which of these statements is true about Margaret's supervisory responsibility and liability for Clint's actions?

Margaret is responsible for and can be disciplined based on Clint's actions.

You are the Texas agent for the buyers, the Jansens. The Yothers are the sellers, and their mortgage holder is Richard Steele. To which of these parties must you disclose your agency status?

Measuring elevations

What type of zoning applies to MUDs and PUDs?

Mixed-use

A real estate licensee and his client fulfill the listing agreement, and the agency relationship is terminated. At what point did the agent's fiduciary duty of confidentiality to this client terminate?

Never

Real estate licensees are seldom guilty of blatant discrimination, but unintentional discrimination does exist. What's one example of unintentional discrimination?

Not showing homes in neighborhoods where the client may become a victim of racial bias

A Texas applicant must provide two forms of identification at the testing center. What types of ID are acceptable?

One picture ID and one with your signature

An area of 640 acres is equal to ______.

One square mile

What might the government do if property owners fail to pay taxes on their property?

Place a lien on the property.

This type of housing is designed specifically for older adults, both those who are active and those who might require some assistance.

Point of beginning

Which of these actions violates the NAR Code of Ethics?

Preparing a written agreement that falsely states a purchase price

Three brokers meet and agree that all of their listing contracts will have one-year terms. Of which type of antitrust violation is this an example?

Price fixing

Which of the following is described here? "A greater percentage of the mortgage payment is applied to this over time as the mortgage is paid off."

Principal

"Separate property" is property most likely acquired ______.

Prior to marriage

Limited liability companies and limited liability partnerships are favorable forms of business because ______.

Property manager They don't require a general partner.

At least 60 days prior to filing a lawsuit under DTPA, what is the consumer required to do?

Provide a written notice to the person against whom the suit is to be filed

The National Fair Housing Alliance has concerns about whether or not programs meant to address the financial and mortgage crisis are ______.

Racially fair

In the real estate business, whose primary role is it to make improvements to land?

Real estate developer

Jack works for a great company creating online training for individuals who want to obtain their real estate license or need to keep their license current. What is Jack's profession?

Real estate educator

Richard is interested in purchasing some rural land and included outbuildings. When reviewing the legal description, he sees the name of a principal meridian. What type of legal description is this?

Rectangular government survey

Fair housing complaints submitted to the Texas Workforce Commission Civil Rights Division must ______.

Specify the protected class that was discriminated against

What is the name of the set of regulations used to enforce the Equal Credit Opportunity Act?

Regulation B

Samuel is creating a new advertising campaign for his brokerage firm. He's pretty sure TREC has some authority over advertising practices, but he can't remember exactly what those are. Which of the following actions falls outside of TREC's powers?

Restricting the appearance of the actors within Samuel's ad campaign

In the eyes of the law, why do people under age 18 lack contractual ability?

Retirement properties

What kind of tax could be levied on property owners for a public project that benefited the property owners only in that district?

Special assessment tax

Gloria has an option to purchase the cottage she leases from her landlord. She can exercise the option within the next two years. To gain that right, Gloria paid the landlord $5,000. This is called ______.

TREC

Unlawful possession after the expiration of a lease is called ______.

Tenancy at sufferance

Which of the following statements about the purpose of the seller's property disclosure in Texas is true?

Testamentary The notice captures what the seller knows to be true about the condition of the property as of the date the form is signed by the seller.

The ESAC makes recommendations to which agency?

Texas Real Estate Commission

Which of these scenarios describes a voluntary lien?

The brokerage may have to undergo court-ordered supervision for up to 10 years. Sharon purchased a condo and now the lender has a mortgage lien on the property.

In the real estate business, whose primary role is to manage properties for others?

The Yothers only

Whose interests are protected by homeowners insurance?

The buyer and lender

Although she was not part of writing up the sales contract between the seller and the buyer, Trisha believes she should be compensated for finding the buyer and shepherding the transaction to its conclusion. Her reason for making this assertion is likely based on ______.

The concept of procuring cause

Which of the following is a legitimate and legal way that an exclusive right-to-sell listing agreement may terminate without the seller owing a commission?

The listing agent stops working on the listing.

How is the grid that's used in the rectangular government survey system laid out?

The numbers start in the northeastern corner and follow a zigzag pattern.

To be considered real property in Texas, a manufactured home must be permanently attached to a foundation and ______.

The owner must file a certified copy of the home's Statement of Ownership and Location (SOL) in the real property records of the county where the home is located

What's market value?

The probable sales price if the property were listed today and a willing seller and buyer were involved in the transfer of ownership

Identify which description best fits that of a rural homestead in Texas.

The property is located in the country and is limited to 200 acres for a family

Exercise of police power must be in whose best interest?

The public

Prior to receiving his real estate license as a sales agent, Jack must pass the required state exam. What is the minimum passing grade?

The sales contract will be terminated, and Hank's earnest money will be refunded.

Henry wants to submit an offer for Lacy's house. Under the statute of frauds, which of the following is NOT a requirement Henry must meet for his offer to become an enforceable purchase agreement?

The term of the agreement has expired. The contract must be notarized.

In the real estate market, when demand exceeds supply, it means what?

There are more buyers than available homes and prices will be higher.

Datums and benchmarks are used for ______.

They must take the dispute to court.

Which one of the following terms refers to the dimensions, physical features, and contours of the land?

Topography

A group of 26 different families have shared ownership of a vacation condominium. Each family spends two weeks annually at the condominium. Legally, the condominium is considered a _______.

Timeshare property

What's the purpose of the ECOA?

To prevent discrimination in lending

Burt terminated his exclusive right-to-sell listing agreement with Scott, his listing broker, without cause. Burt may legally do this as long as he's ______.

Willing to pay Scott's commission anyway

Which type of survey system is also known as the Public Land Survey System (PLSS)?

With reversionary interest, the property reverts to the owner after the death of the life tenant. With remainder interest, the title to the property goes to a named third party following the death of the life tenant. Rectangular government survey

If the court determines that someone who violated Texas antitrust laws did so willfully, the injured person(s) or entity is entitled to recover ______ times the damages and the cost of the lawsuit.

three