Principles of Real Estate (Part 1) - Chapter Quizzes

An individual is exempt from paying taxes on capital gains for up to how much in profit if he/she lived in the house for at least 2 of the last 5 years...? $500,000 $1,000,000 $100,000 $250,000

$250,000

1 square foot is equal to...? 100 square inches 1,000 square inches 640 square inches 144 square inches

144 square inches

Which of the following is exempt from holding a real estate license...? Real estate salesperson Associate broker Real estate broker A homeowner looking to sell their house on their own

A homeowner looking to sell their house on their own

A mortgage payment typically includes...? Principal Interest All of the above Insurance

All of the above

A real estate broker is authorized to perform which of the following acts...? Deal or sell options on real estate All of the above Identify properties for purchase or lease Auction off real estate

All of the above

As a seller's agent in a transaction, the agent is required to do which of the following...? Inform the seller of any material information All of the above Present all offers to the seller Answer to the seller

All of the above

HUD fair housing complaints can be filed in which of the following ways...? Phone All of the above Online Mail

All of the above

If an agent does not abide by the TREC canons of professional ethics, which of the following may occur...? The agent may be placed on probation The agent's license can be revoked All of the above The agent's license can be suspended

All of the above

The general uses of real property include which of the following...? Industrial Commercial Residential All of the above

All of the above

Which of the following is an advantage to owning a home...? Tax benefits Pride of ownership Potential for asset appreciation All of the above

All of the above

Which of the following is considered a legal test for determining if an item is a fixture or not...? All of the above Adaptation of the item Mode and permanence of how the item was attached Intention of the parties

All of the above

Which of the following is considered illegal under the Fair Housing Act...? Refusing to show properties in neighborhoods based on racial criteria Refusing to show properties in neighborhoods based on religious criteria All of the above Refusing to sell to a protected class

All of the above

Which of the following is one of the TREC canons of professional ethics...? All of the above Fidelity Integrity Competency

All of the above

Which of the following real estate contracts must be in writing...? All of the above Purchase contract for a multi-family property Lease contract for greater than 1 year Sales contract

All of the above

Which of the following is a means to prevent steering...? Ask the client to describe where they want to live based on the religious make-up of the neighborhood All of the above Ask the client to describe where they want to live based on geographical boundaries Ask the client to describe where they want to live based on the racial make-up of the neighborhood

Ask the client to describe where they want to live based on geographical boundaries

If an administrative penalty is not paid, who is responsible for collecting the payment...? Texas Association of Realtors Attorney General State Judge State Governor

Attorney General

A listing contract is an example of a/an...? Unilateral contract Bilateral contract Void contract Implied contract

Bilateral contract

The transfer of personal property is typically done using a...? Deed Bill of Sale All of the above Purchase Contract

Bill of Sale

The right of exclusion, which allows a landowner to prevent others from entering or occupying their property, is included in the...? Air Rights Bundle of Rights Riparian Rights Littoral Rights

Bundle of Rights

When a real estate broker represents a buyer in a transaction, the broker and buyer are bound by which of the following contracts...? Listing Agreement Purchase Agreement All of the above Buyer Representation Agreement

Buyer Representation Agreement

Which of the following acronyms summarizes the fiduciary duties a broker owes to his/her principal...? O.L.D.C.A C.O.A.L.D. W.B.V.A. C.A.T.T.L.

C.O.A.L.D

Properties with five or more dwelling units are considered...? Commercial Property Special Purpose Property Industrial Property Residential Property

Commercial Property

To mingle or mix, for example, a client's funds in the broker's personal or general account is known as...? Redlining Commingling Conversion Steering

Commingling

This federal law requires all federally regulated lenders to describe the geographic market area that they serve...? Civil Rights Act of 1968 ADA Housing and Urban Development Act Community Reinvestment Act

Community Reinvestment Act

An agent should be informed on market conditions affecting the real estate business. This is an example of...? Loyalty Fidelity All of the above Competency

Competency

Exercising judgment and skill in the performance of an agent's practice is also known as...? Loyalty Competency Fidelity Obedience

Competency

The intricacies in marketing properties for others involves...? Competency Loyalty Obedience Fidelity

Competency

A form of ownership of real property recognized in all states that consists of individual ownership of some aspects and co-ownership in other aspects of the property is known as a...? PUD Cooperative Condominium Townhouse

Condominium

This form must be posted in brokerage offices...? All of the above Purchase Agreement Form Consumer Information Form 1-1 HUD-1 Form

Consumer Information form 1-1

A local real estate developer bought an abandoned school building with the intention of converting it to residential units. This is an example of a...? Cooperative Converted-use property Planned Unit Development All of the above

Converted-use property

Which of the following is NOT a form of real property...? Townhouse Single family house Cooperative Condominium

Cooperative

When a contract is fully performed, the contract is considered...? Acknowledged Assigned Converted Discharged

Discharged

The land benefiting from an easement is referred to as the...? Devisor Devisee Servient tenement Dominant tenement

Dominant tenement

A right acquired by one party to use the land of another party for a special purpose is known as a...? Grant Easement Lien Acknowledgment

Easement

Which of the following easements is commonly used by utility companies...? Easement by prescription Easement by necessity Easement in gross Easement appurtenance

Easement in gross

When using the metes and bounds method to describe property, the origin point is also the...? Reference point End point Base point Datum

End Point

The laws governing fair housing are also referred to as...? Civil Rights Housing Federal Housing Free Housing Equal Opportunity Housing

Equal Opportunity Housing

Until a purchase contract is closed upon, it is considered a/an...? Executory contract Implied contract Void contract Executed contract

Executory

An agency relationship created by oral or written agreement between the principal and the agent is known as...? Brokerage General Agency Express Agency Implied Agency

Express Agency

Abby is a real estate agent. She knows that she must place her client's interests above her own. This is an example of...? Confidentiality Fidelity Accounting Competency

FIdelity

Advertising that suggests that a particular home is not suited for couples with children is considered a violation of this protected class...? Race Familial Status Religion Gender

Familial Status

In addition to the loyalty owed by an agent to his/her client, the agent must also act fairly to other customers in the transaction. This is an example of...? Fidelity Obedience Integrity Competency

Fidelity

The interest of a client must be put before the interests of the agent. This is an example of...? Fidelity All of the above Competency Integrity

Fidelity

Real estate brokers have a ................... relationship with the principal? Universal Special General Fiduciary

Fiduciary

An individual who has not owned real property for at least the previous two years is known as a...? Exempt homebuyer Conventional homebuyer Vacant homebuyer First-time homebuyer

First-time homebuyer

A property manager is an example of what type of agent...? Special Agent General Agent Universal Agent Specific Agent

General Agent

If an individual uses sections to help describe a property, they are most likely using which of the following methods...? Metes and Bounds Lot and Block All of the above Government Survey

Government Survey

Which of the following property descriptions is not used in the State of Texas...? Lot and Block All of the above Government Survey Metes and Bounds

Government Survey

When a fee simple determinable ends, the interest will revert to the...? Life Tenant Trustor Grantor Grantee

Grantor

An insurance policy protecting against a variety of hazards is referred to as a...? Package Policy Homeowners Policy Homestead Policy Individual Policy

Homeowners Policy

Under the Equal Credit Opportunity Act, lenders must provide financing based on which of the following criteria...? Race Income Age National origin

Income

An agent must be honest and truthful. This is an example of...? All of the above Competency Fidelity Integrity

Integrity

A lien imposed against property without consent of an owner is referred to as a/an...? Involuntary lien Subject lien Subordinate lien Voluntary lien

Involuntary lien

Which of the following is an example of a fixture...? Curtains Removable bookshelves Rugs Kitchen cabinets

Kitchen cabinets

Which of the following contracts is NOT required to be in writing...? Lease for more than 1 year Sale contract for a multi-family property Sales contract for a single family home Lease under 1 year

Lease under 1 year

Metes and bounds is an example of a...? Site Plan Township Legal Description Key Plan

Legal Description

Real estate salespersons should not provide which of the following to their clients...? Full disclosure Market updates Marketing advice Legal advice

Legal advice

Which of the following is exempt from holding a real estate license...? Real estate broker Real estate salesperson Associate broker Licensed Texas attorneys

Licensed Texas attorneys

A contract in which a property owner employs a real estate broker to market the property described in the contract is known as the... Listing Contract Purchase and Sales Contract Agency Disclosure Contract Closing Contract

Listing Contract

A contract in which a property owner employs a real estate broker to market the property described in the contract is referred to as the....? Agency Contract Purchase Contract Listing Contract Exclusive Contract

Listing Contract

The subdivision plat method of describing property includes which of the following...? Lot and Blocks Monuments Townships Sections

Lot and Blocks

Fidelity, on TRECs canons of professional ethics, implies...? All of the above Loyalty Reasonable Care Obedience

Loyalty

The 'L' in the acronym C.O.A.L.D. stands for which fiduciary duty...? License Litigation Loyalty Listing

Loyalty

A means of comparing similar type properties, which have recently sold, to the subject property is known as the...? Cost Approach Assessment Approach Income Approach Market Comparison Approach

Market Comparison Approach

This refers to a term used in describing the boundary lines of land, setting forth all the boundary lines together with their terminal points and angles...? Government Survey Metes and Bounds Plot Map Lot and Block

Metes and Bounds

The landowner's ability to take minerals from the earth or to sell or lease this right to others is known as...? Land Rights Bundle of Rights Mineral rights Air Rights

Mineral rights

In addition to the TREC canons of professional ethics, this organization also publishes a code of ethics that must be followed by its members...? National Board of Realtors MLS National Association of Realtors US Realtors Association

National Association of Realtors

Which of the following acronyms can be used to describe government powers with regards to real property...? CATTL OLD CAR PETE RESPA

PETE

Blockbusting is also known as...? Panic selling Panic buying Panic lending Panic brokerage

Panic Selling

A refrigerator is typically considered...? Fixture Personal Property Emblements Real Property

Personal Property

All property that is not land and is not permanently attached to land is known as...? Real Property Fixture Real Estate Personal Property

Personal Property

Mobile homes not permanently attached to the land are generally considered...? Real Property Fixtures Trade Fixtures Personal Property

Personal Property

Any medical disorder, condition, disfigurement or loss affecting one of the body systems is known as a...? Disorder Mental Impairment Physical Impairment Handicap

Physical Impairment

The point of origin in a metes and bounds survey is also known as a...? Point of Commencement Principal Point Marker Base Point

Point of Commencement

The right of any political body to enact laws and enforce them, for the order, safety, health, morals and general welfare of the public is known as...? Eminent Domain Escheat Condemnation Police Power

Police Power

The employer of an agent is known as the...? Principal Customer Escrow All of the above

Principal

The employer of an agent is referred to as the...? Partner Fiduciary Customer Principal

Principal

The imaginary north-south lines used in a government survey are referred to as...? Principal Meridians Base Lines Reference Lines Survey Lines

Principal Meridians

Owners of a cooperative apartment hold which of the following...? Deed Deed of Trust Proprietary lease All of the above

Proprietary lease

The Deceptive Trade Practices Act discourages agent from which of the following acts...? Puffing Exclusive agency All of the above Indemnification

Puffing

Land and everything permanently attached to land is defined as...? Bundle of Rights Real Property Real Estate Fixture

Real Estate

Who is legally entitled to receive a commission from a principal for a sale or rental of the principal's property...? All of the above Associate real estate salesperson Real estate broker Real estate salesperson

Real estate broker

Which of the following must hold a real estate license...? All of the above Real estate appraiser Real estate attorney Real estate salesperson

Real estate salesperson

When an insured homeowner is covered and reimbursed for the actual cost of replacing the damaged property, these costs are known as...? Title Costs Estimated Costs Insurance Costs Replacement Costs

Replacement Costs

The market comparison approach is commonly used for this property type...? Mixed-use Residential Industrial Commercial

Residential

The listing agreement is a contract between the real estate broker and the...? Agent Customer Seller Buyer

Seller

The land that is encumbered by an easement is referred to as the...? Devisor Servient tenement Devisee Dominant tenement

Servient tenement

A real estate agent is an example of what type of agent...? Specific Agent Universal Agent Special Agent General Agent

Special Agent

The sale of a property as an alternative to damages is an example of...? Special performance General performance Executed performance Specific performance

Specific performance

The amount of goods offered for sale within a given market at a given price during a given time period is known as... Supply GDP None of the above Demand

Supply

Mineral rights are typically considered dominant to which of the following rights...? Sub-surface rights Air rights Surface rights None of the above

Surface rights

Who determines the standards for real estate licensing courses in Texas...? Texas Real Estate Commission National Association of Realtors Arello Texas Association of Realtors

Texas Real Estate Commission

The prohibition of fair housing discrimination by a licensee is described in which of the following Acts...? Texas Real Estate License Act Texas Discrimination Act Texas Civil Rights Act Texas Fair Housing Act

Texas Real Estate License Act

After an applicant submits their real estate salesperson application, their license will be mailed to which of the following...? The applicant The applicant's sponsoring broker Both the applicant and the applicant's sponsoring broker Department of State

The applicant's sponsoring broker

If a real estate salesperson closes on a transaction, who pays the salesperson their commission...? The Buyer Whatever is stated in the listing agreement The salesperson's sponsoring broker The Seller

The salesperson's sponsoring broker

A territorial subdivision six miles long, six miles wide and containing 36 sections, located between two range lines and two township lines is known as a...? Plat County Township Range

Township

Oral listing agreements between a seller and a broker are...? Express Unenforceable Void Executed

Unenforceable

A licensee may have their license suspended or revoked for which of the following actions...? Unlawful practice of law All of the above Changing brokers Failing to close a transaction within 2 calendar years

Unlawful practice of law

If a contract is not for a legal purpose, it is considered a/an...? Executory contract Enforceable contract Executed contract Void contract

Void contract

If one of the parties in a real estate transaction are not considered competent, the contract between the parties is considered a/an...? Voidable contract Executory contract Enforceable contract Executed contract

Voidable contract