Principles of Texas Real Estate I
Member of the Education Standards Advisory Committee serve for how many years?
2
What is the deadline for submission of the contract?
24 hours from the agent's receipt of the deposit
How many days notice must a broker give to sponsored salespersons when applying for an inactive license status?
30
If the broker is paying an inordinate amount of selling expenses, what may be an agent's commission split?
40%
What is the typical height of high-rise buildings?
6 floors or higher
A quorum of the Education Standards Advisory Committee consists of how many members?
7
TREC members serve
7 years
If the individual shareholders of a corporation fail to make monthly expense assessments, what is the worst possible outcome?
It could jeopardize the entire cooperative's viability
Real estate professionals perform which of the following functions?
Management and maintenance
Why do many brokers restrict their business to representing either buyers or sellers exclusively?
Minimized conflicts of interest
Typically, what body is established to enforce the bylaws and manage a condo?
Owner's Association
What are emblements?
Plants and crops requiring human intervention and labor
Overhead expense is an example of what type of cost?
Production cost
Which entity recommends changes to articles in the NAR Code of Ethics?
Professional Standards Committee
Which entity administered real estate law at the state level?
Real Estate Commission
What type of license is required to deal in real estate options?
Real Estate License
The Consumer Information Form 1-1 deals with the
Real Estate Recovery Trust Account.
What is the term given to property that is owned and used for habitation?
Residential Property
Owner Jake sued a trespasser that entered his property. What right was Jake exercising?
Right to exclude
The Education Standards Advisory Committee will conduct its meetings in substantial compliance with...
Robert's Rules of Order
What three things make a waiver be valid and enforceable?
The waiver is in writing and is signed by the consumer, the consumer is not in a significantly disparate bargaining position and s/he is represented by legal counsel
What is the primary criterion for distinguishing real from personal property?
Whether the item is permanently attached to the land, or to structures attached to the land
When does the license terminate?
death or dissolution of business
Value of something is based on 4 facts: utility, scarcity, purchasing power and
desire to get the object
What feature do insurance companies use to modify their policies?
endorsements
TREC may deny a license to an applicant who fails to meet standards under the
Texas Occupations Code.
Typically, brokers and agents do NOT specialize along which one of the following business lines?
futures
At the pleasure of whom does the presiding officer serve?
governor
What act prohibits unfair methods of competition in interstate commerce, but carries no criminal penalties?
The Federal Trade Commission Act
Who appoints members of the Texas Real Estate Commission (TREC)?
The Governor
What federal act allowed single persons to exclude up to $250,000 in real estate gains from taxation?
The Taxpayer Relief Act
The acronym DTPA stands for
The Texas Deceptive Trade Practices-Consumer Protection Act
A broker does not withhold taxes for
independent contractors
Which of the following states that the agent has a special responsibility to be honest when performing his or her duties?
integrity
A person, whose spouse is employed by or participates in the management of a business entity or other organization regulated by the commission, or receiving funds from the commission:
is not eligible for appointment as a public member of the TREC;
Typically, an auctioneer is
is not required to have a real estate license
The TREC has the power to
issue subpoenas.
What are the specific features of PUDs?
low-price and a minimum of maintenance cost
What is the first step in marketing a listed property?
make a marketing plan
What are the surveyors required to identify?
nature risks
Is the validity of an action of the commission affected by the fact that it is taken when a ground for removal of a commission member exists?
no
Which of the following best describes personal property?
not real property
Are ethics and legality similar categories?
nothing
What type of real estate user would be highly concerned about the image and function of a property?
office user
Who is responsible for management of day to day operations?
property managers
Who sits on the NAR Grievance Committee?
realtors
What is the period of time called when a market adjustment is taking place?
The equilibrium time lag
What is the right that allows a property owner to mortgage a property as collateral for debt?
right to encumber
Which federal statute prohibits price fixing and boycotting?
sherman antitrust act
According to the Texas Real Estate Commission Canons, one aspect of competency has to do with
stay informed
What organization makes a review of most state agencies in order to determine if they should be continued or abolished?
sunset commision
Absorption can be defined as
the amount of available property that becomes occupied over a period of time.
One establishing accreditation standard for a real estate educational program is based on
the average percentage of examinees that pass the licensing exam on the first attempt.
Which are the essential production costs?
the costs of capital, materials, and supplies, labor, management and overhead
What right does include such activities as mining, cultivating, landscaping, razing, and building?
the right to use property
Why are Manufactured Homes considered personal property
they are moveable
What is the legal force of the 5 Canons of Professional Ethics and Conduct?
they have the force and effect of law in Texas
How is Alternative Minimum Tax under Tax Relief Act determined?
tied to inflation
What is the secondary goal of the Code of Ethics?
to provide protection for the public by using a formal complaint process
Vacancy is defined as the amount of
total real estate inventory, of a certain type, that is unoccupied at a given time.
Renter Mary opened an ice cream shop and moved in three reach-in freezer boxes. These boxes would be classified as
trade fixtures
Which entity maintains a list of each broker whose license is on inactive status?
trec
Which is one of real estate's unique traits?
unique appeal of product
What is a co-op?
units that are owned by a corporation that sells shares of stock to the owners.
What's the penalty for individual violators of the Sherman Act?
up to $1,000,000
Purchasing power is a component of
value
What is a transaction arena?
where the price mechanism is constantly defining and quantifying the value
What clause requires that the homeowner have insurance that is equal to 80% of the home's replacement value?
Coinsurance Clause
What two escrow mistakes must a broker avoid?
Commingling and conversion
What do "blind ads' do?
Conceal the identity of the person placing the ad.
In what document would you find covenants and restrictions regarding use and transfer of condo units?
Declaration Provisions
What is the most important aspect for an investor looking for capital gains?
Finding properties that are available at below market prices in increasing markets
TREC is empowered to charge an applicant for an original license a fee of ... for the benefit of the recovery fund.
$10
Payments from the trust account for claims based on judgments against a single licensee may not exceed a total of what amount?
$100,000
How much is the additional fee charged for license renewal for the Texas Real Estate Center?
$20
What is the per diem reimbursement rate for TREC members?
$75
How many categories are listed in Core Real Estate Courses?
11
Which one of the listed appointees is eligible for appointment as a public member of Texas Real Estate Commission?
A person, who owns a 5 percent interest in a business entity regulated by the commission.
What is included into real estate business?
Every residence and business facility in the nation, as well as all the undeveloped land in the country
What type of building product is known by the name EIFS?
Exterior synthetic stucco
What will happen if someone attached an item to real property, yet intended to remove it after a period of time?
The article may be deemed personal property
What is not included in the "real property" concept?
The bundle of rights associated with owning the chattels estate
Which of the listed reasons is not a ground for removal of an Education Standards Advisory Committee member?
The member is absent from at least a quarter of the regularly scheduled committee meetings that he or she is eligible to attend during each calendar year, unless the absence is excused by majority vote of the committee.
What is the advantage of a professional standards hearing when a problem occurs?
a decrease of time and money expenses for all of the parties involved
What organization conducts professional standards hearing for local or state associations?
a panel of realtor members
Which of the following would be considered personal property?
a propane grill that is not attached to the property
How does the producer establish a minimum price for the item?
adding to the cost a required profit margin
What types of relationship have many brokers specialized in recent years?
advisory services
When do retirement savings on Individual Retirement Accounts become tax free?
after 5 years and they are 59 1/2
The Texas Real Estate Commission does NOT have authority to
amend real estate laws.
Air rights apply to the space above the surface boundaries of the parcel
as delineated by imaginary vertical lines extended to infinity.
A branch office must have a(n)
broker
The Texas Uniform Condominium Act allows owners shares of common elements
but the common elements cannot be partitioned.
What is not one of the forms of local government that would influence local real real estate markets?
changes in money supply
Items of personal property are also called
chattels or personalty.
What is the term given to the act of mixing personal funds with escrow monies?
commingling
A member of a TREC advisory committee serves at the will of the
commision
Under what Texas Real Estate Commission Canon would you find the practice of exercising skill and judgment in performing duties?
competency
Which of the stated institutions does NOT appoint members of Broker Lawyer Committee?
court
Which action is often used to define specific aspects of newly created law?
court decision
