Texas Principles of Real Estate 1 (Exam Prep)
A broker who maintains more than one place of business in the State of Texas can maintain all branch locations under one office license. A. True B. False
A
A certain practice by a licensee can be unethical, even if it is legal. A. True B. False
A
A contract that meets all the requirements of the law is: A. Valid B. Voidable C. Void D. Bilateral
A
A licensee was tried in a state district court on a complaint arising from a real estate transaction. The courts rule that, among other violations, that the defendant had violated the Texas Real Estate License Act. This decision of the judge was based upon: A. Statutory law B. Civil law C. Common law D. Local ordinance
A
A licensee who represents a party must disclose this representation: A. At first contact B. At a meeting after the parties have signed a sales contract C. On the IABS form D. All of these are correct
A
A portion of the broker and salesperson application fee is paid to: A. The Texas Real Estate Research Center B. The Real Estate Marketing Center C. The Governor D. The Texas Association of Realtors®
A
A sales licensee is going door to door to secure residential listings. His marketing strategy includes a suggestion that an impending change in the racial composition of the neighborhood will result in a drop in values and therefore owners should list and sell now. This is an example of: A. Blockbusting B. Steering C. Channeling D. Aggressive listing
A
A written contract for the sale of real estate is an example of a(n) __________________. A. Express contract B. Unilateral contract C. Implied contract D. Voidable contract
A
All of the following are grounds for suspension or revocation of a certificate of registration, EXCEPT: A. Acts in good faith B. Fraud C. Untrustworthiness D. Misrepresentation
A
All of the following types of ownership can be defeated or terminated if the owner violates conditions or terms in the deed EXCEPT: A. Fee simple B. Defeasible fee C. Qualified fee D. Conditional fee
A
Allowing the construction of a wheelchair ramp on the apartment building owner's property is a good example of a reasonable accommodation. A. True B. False
A
An apartment building owner may legally reject an applicant with a history of mental illness, if he or she is a danger to others. A. True B. False
A
Any relationship in which one party acts for or represents another. A. Agency B. Agent C. Client D. Licensee E. DTPA
A
Brokerage is the aspect of the real estate business that pertains to overseeing the needs of the parities and completing a transaction. A. True B. False
A
Easements can be terminated by: A. Release B. Prescription C. Implied grant D. Necessity
A
Fee simple ownership is: A. Always an estate of inheritance B. Is ownership for the duration of someone's life C. Voided if a condition is not met D. Not common in Texas
A
If a licensee fails to respond to a subpoena, TREC can file suit with the Attorney General to enforce a subpoena. A. True B. False
A
In Texas, forced sale of a homestead can take place for non-payment of homeowner association fees or dues. A. True B. False
A
Involuntary alienation can be the result of all of the following except: A. Alluvion B. Foreclosure C. Avulsion D. Erosion
A
Julie is a licensed attorney in Louisiana. She wants to be paid a commission to represent/negotiate on behalf of a purchaser of real estate in Texas. Can Julie can do this? A. Yes, but only if she obtains a Texas Real Estate License B. Yes, because attorneys are exempt from the License Act C. No, attorneys from other states are never allowed to represent clients in Texas D. No, because only a licensed broker is required for all transactions in Texas
A
Julie, a salesperson at Acme Realty, obtained a listing on Seller Sam's property on Oak Street. The following week, Julie was found to be mentally incompetent and was admitted to the state mental hospital in Rusk. Given Julie's unfortunate status, what is the effect on the listing with Seller Sam? A. The listing agreement is unaffected because it is an agency agreement between Seller Sam and the broker. B. The listing agreement is terminated because Julie is mentally impaired. C. The listing agreement is unaffected because mental impairment is never an issue in agency agreements. D. The listing agreement is terminated because Seller Sam would not want to have an agent that no longer lives in the local market area.
A
Land surveys are the most common form of survey. A. True B. False
A
Lease agreements for one year or less are the exception to the Statute of Frauds. A. True B. False
A
Licensees who insert complex language into contracts may be engaging in the _____________________. A. Unlawful practice of law B. Contract C. Voidable D. Statute of Frauds E. Bilateral Contract
A
Most windstorm insurance in Texas is underwritten by _________________. A. TWIA B. loss payee C. NFIP D. CLUE E. flooding F. coinsurance clause G. insurance coverage
A
One who represents another from who he has derived authority is called: A. An agent B. A Principal C. A client D. A broker
A
Property managers are generally responsible for the _____________________ of a property that they manage. A. Day-to-day operations B. Maintenance C. Tenant relationships D. All of the above
A
Rights that are associated with the ownership of real property are often referred to as the owner's: A. Bundle of rights B. Constitutional rights C. Statutory rights D. Civil rights
A
Rights that are conveyed in a cell tower lease include _______________________. A. Surface and air B. Air and subsurface C. Air and improvement D. Surface and subsurface
A
The Texas Legislature granted TREC the authority to enact rules and regulations that have the full force and effect of the law and to advise with reference to these rules and laws. A. True B. False
A
The Texas Real Estate Commission has the authority to establish standards of advertising by a license holder acting as a residential rental locator. A. True B. False
A
The agency that is responsible for the enforcement of federal consumer financial law is: A. CFPB B. FILA C. Federal Reserve D. HUD
A
The duties of an agent include: A. Loyalty, confidentiality, and disclosure B. Trust, performance, and obedience C. Competence, confidentiality, and reasonable care D. Reimbursement, accounting, and disclosure
A
The gain of the sale of an asset for the seller is known as ____________________. A. Capital gain B. Interest C. Captal profit D. None of the above
A
The listing that gives the broker the assurance that a commission will be paid if the property sells during the listing period is the _________________________. A. exclusive right to sell B. open listing C. Deceptive Trade Practices Act D. procuring cause of sale
A
The listing that helps the broker avoid procuring cause lawsuits is: A. The Exclusive Right to Sell Listing B. The Exclusive Agency Listing C. The Net Listing D. The Open Listing
A
The main distinction between a townhouse and a single-family home is that: A. Townhomes share a common wall (party wall) B. Single-family homes are sold as distinct living units on individual lots C. Owners of townhomes do not own the land beneath the structure D. Townhomes are retro-conditioned
A
The most common method of describing real estate in subdivisions is: A. Lot and block B. Metes and bounds C. Street address D. Rectangular Survey System
A
The type of listing agreement that affords the broker the greatest protection is the: A. Exclusive Right to Sell B. Exclusive Agency Agreement C. Open Listing D. Net Listing
A
Under federal law, it is not legal for an apartment building owner to assign families with younger children to one particular building. A. True B. False
A
When real property is sold: A. Fixtures remain with the property B. Fixtures require a bill of sale C. Fixtures can be removed by the seller D. Fixtures are considered chattel
A
Which of the following is NOT required to obtain a license in Texas? A. An applicant must be 21 years of age B. An applicant must be a resident of Texas at the time of application C. An applicant must be of good moral character D. An applicant must show competency by passing the exam
A
Which real estate contract is the exception to the Statute of Frauds? A. A lease for one year or less B. A lease for two years or less C. A buyer Representation Agreement D. There are no exceptions to this statute
A
___________________________ is the division of property owned by two or more individuals. A. partition B. joint tenancy C. community property D. estate in severalty E. tenancy in common
A
A broker can only represent a seller or buyer, but not both in the same transaction. A. True B. False
B
A broker must display, in each place of business that a broker maintains, the: A. Notice of Lead Based Paint Hazards B. Consumer Information Form 1-1 C. Information About Brokerage Services D. Notice of Intermediary
B
A contract created by behavior is known as a/an: A. Express contract B. Implied contract C. Behavioral contract D. Void contract
B
A contract for the purpose of performing an illegal act is ___________________. A. Voidable B. Void C. Valid D. Unilateral
B
A contract has been signed and acceptance has been communicated prior to closing the contract is a(n) _______________ contract. A. Voidable B. Executory C. Fully executed D. Unenforceable
B
A form of corporation that is taxed much like a partnership is the _______________________. A. C Corporation B. S Corporation C. Limited Corporation D. CS Corporation
B
A form of ownership that provides that co-owners automatically acquire the interest of a deceased co-owner is ___________________________. A. partition B. joint tenancy C. community property D. estate in severalty E. tenancy in common
B
A freeway has made commenting to a distant suburban neighborhood easier, resulting in an increase in new home sales. This increase is sales is an example of the economic characteristic of: A. Scarcity B. Fixity C. Situs D. Modification
B
A lease that automatically renews itself is called: A. An estate at sufferance B. A periodic estate C. An estate for years D. An estate at will
B
A legal description that contains the words "Beginning at a point" is a: A. Lot and block description B. Metes and bounds description C. Informal reference D. PLSS description
B
A license holder is always liable for the misrepresentations of his or her principal. A. True B. False
B
A licensed broker or salesperson must never: A. Place a sign on real property for sale or lease without the written consent of the owner of the real property or the owner's authorized agent B. Act in a dual capacity as broker and undisclosed principal in a real estate transaction C. Guarantee that future profits will result from a resale of real property D. All of the above
B
A method of property description that consists of terminal points and angles is: A. Lot and block B. Metes and bounds C. Informal Reference D. Rectangular Survey System
B
A person who is authorized to act for another. A. Agency B. Agent C. Client D. Licensee E. DTPA
B
A property contains 103,450 square feet of land. How many acres are in this tract? A. 43.7 B. 2.37 C. 23.7 D. 3.7
B
A real estate agent is allowed to limit a home search to certain neighborhoods based on the client's race or ethnicity. A. True B. False
B
A residential apartment locator in Texas is not required to be a license holder. A. True B. False
B
A trust that is created during the lifetime of the trustor is a(n) ____________________. A. Testamentary trust B. Inter Vivos trust C. Business trust D. None of the above
B
A(n) ________________________ is a right for the benefit of a piece of land. A. Easement in gross B. Easement appurtenant C. Encumbrance D. Encroachment
B
Advertising an available apartment as ideal for followers of a certain religion is perfectly legal. A. True B. False
B
All licensees are Realtors. A. True B. False
B
All of the following are categories of estates, EXCEPT: A. Freehold B. Executory C. Statutory D. Leasehold
B
All of the following are requirements for a valid and enforceable contract, EXCEPT: A. Consideration B. Recording C. Mutual Consent D. Competent Parties
B
All real estate brokers and inspectors must display, in a prominent location the: A. TILA disclosure B. Consumer Information Form 1-1 C. Information About Brokerage Services D. License ACt
B
An agreement to do or to refrain from doing something is a ___________________. A. Unlawful practice of law B. Contract C. Voidable D. Statute of Frauds E. Bilateral Contract
B
An easement in gross belongs to the land, not a person or corporation. A. True B. False
B
An easy way to remember the four rights that the government retains in land is the acronym PETE. What does PETE stand for? A. Petroleum, Eminent Domain,Taxation, Escheat, B. Police Power, Eminent Domain, Taxation, Escheat C. Police Power, Eminent Domain, Taxonomy, Escheat D. Police Power, Encumbrance, Taxation, Escheat
B
Any man-made addition to the land that is permanent is known as a(n) _______________________. A. Building B. Improvement C. Emblement D. Fixture
B
Attempting to induce panic selling in a neighborhood for financial gain is known as: A. Steering B. Blockbusting C. Flipping D. Channeling
B
Avulsion happens when: A. Soil or rock is built up by the water, adding to the land B. Water washes away the land from one property and deposits it on another C. Water recedes and dry land appears D. The soil is added to the land by the accretion
B
Both banks and real estate licensees can be found guilty of redlining. A. True B. False
B
Climate, views, access to natural recreation, good schools and job opportunities are some factors that contribute to the desirability of land in particular locations. These factors best describe: A. Scarcity B. Situs C. Modification D. Fixity
B
Competency is best described as: A. The duty of a licensee to represent the best interests of his client B. The duty of a licensee to exercise skill and judgement in the performance of his work C. The duty of a licensee to avoid misrepresentation by omission of commission D. All of the above
B
Discrimination in housing based upon race or color has been a violation of federal law since: A. 1860 B. 1866 C. 1960 D. 1968
B
How long does a consumer have to file a complaint with TREC against a licensee? A. 5 years from the date of the incident B. 4 years from the date of the incident C. 2 years from the date of the incident D. 1 year from the date of the incident
B
In order to obtain a Texas Real Estate License, an applicant must be a citizen of the United States. A. True B. False
B
Lawsuits related to property defects are most often filed under the: A. Texas Defective Property Act B. Texas Deceptive Trade Practices Act C. Texas Fair Housing Act D. Texas Real Estate License Act
B
Manufactured home dealers and sales people in Texas are licensed by: A. TREC B. The TDHCA C. The TALCB D. TRELA
B
Mark gets a new job as a petroleum landman, and will be securing leases for a variety of oil and gas companies. Before Mark can begin work, he must obtain a valid real estate license. A. True B. False
B
Members of advisory committees created by the Commission are compensated on an hourly basis for their service on the committee. A. True B. False
B
Rights that include ownership of oil, gas, and other minerals are _______________________. A. Surface rights B. Subsurface rights C. Mining rights D. Air rights
B
Sally wishes to once again become active in the real estate brokerage business. Her license has been expired for seven months. She must: A. Pay a fee equal to two times the regular B. Submit an application for a new license and retake the exam C. Pay a fee equal to 1.5 times the regular fee to renew D. Submit a sponsorship form signed by her broker and pay a renewal fee
B
Something that is given in exchange for a promise is: A. Oath B. Consideration C. Mutual Consent D. Specific Performance
B
Surface, subsurface and air rights are said to be: A. Indivisible B. Severable C. Divisible D Unitary
B
Taking buyers to or away from a particular area based on any of the protected categories under Fair Housing laws is called: A. Blockbusting B. Steering C. Panic-peddling D. Marketing
B
Texas attorneys who specialize in real estate are listed by: A. Texas Real Estate Commission B. Texas Board of Legal Specialization C. Texas Board of Special Attorneys D. Texas Department of Legal Standards
B
The Broker-Lawyer Committee: A. Has 12 members B. Writes the TREC contract forms C. Promulgates the contract forms for TREC D. Consists of attorneys, brokers and a public member all appointed by the governor
B
The Commission members are appointed by the __________________________ and approved by the _______________________. A. TREC/Governor B. Governor/Senate C. Governor/TAR D. Commission/Senate
B
The Commission will investigate a complaint that is: A. Filed with the Commission B. Written and signed C. Oral or written D. Filed within six years of the date of the incident
B
The Federal Fair Housing Act prohibits housing discrimination on the basis of all of the following, EXCEPT: A. Religion B. Age C. Race D. National origin
B
The Federal Fair Housing Act provides for both civil and criminal penalties: A. True B. False
B
The IABS form is used: A. In place of a Seller's Listing Agreement B. To provide agency information to consumers C. As an employment contract D. In place of a Buyer Representation Agreement
B
The Texas Real Estate License Act is a part of the: A. State Department of Brokers B. Occupations Code C. License Code D. Revenue Code
B
The commission may adopt rules that require license holders to use certain contract forms adopted by the Commission: A. In all transactions B. In all transactions, except those where a form has been prepared by the property owner or the property owner's attorney C. In all transactions, unless the broker or salesperson prefers a different contract form d. In all transactions, unless the buyer or seller instructs the broker to create a specialized contract form
B
The easiest form of organization that gives one individual the greatest control over a business is the ____________________. A. Partnership B. Sole proprietorship C. S Corporation D. C Corporation
B
The federal law that requires that states make available online information related to known sex offenders is: A. Sex Offender Disclosure Act (SODA) B. Megan's Law C. RESPA D. Dangerous Offenders Law
B
The gain of the sale of a property is the difference between the initial purchase price and the final sales price. A. True B. False
B
The least important factor affecting demand for real estate is: A. Population growth B. Personal preference C. Availability of credit D. Transportation systems
B
The listing that may be given to a number of brokers and that allows the seller to sell the property without an obligation to pay a commission is the _________________________. A. exclusive right to sell B. open listing C. Deceptive Trade Practices Act D. procuring cause of sale
B
The most common method of surveying the western public lands of the United States is metes and bounds. A. True B. False
B
The passing grade on the salesperson exam is ________%. A. 75 B. 70 C. 80 D. 60
B
The practice of directing buyers or renters to or away from a particular area based upon a protected class is known as: A. Blockbusting B. Steering C. Profiteering D. Panic pedaling
B
The purpose of the Texas Real Estate License Act is to: A. Protect real estate licensees from accusations that arise from unfair business practices B. Protect the general public from unscrupulous brokers and salespeople C. Settle disputes between salespeople and brokers D. Set fair guidelines for commission splitting between brokers and their agents
B
The right of redemption for homestead property sold at a tax auction in Texas is ______ years. A. One B. Two C. Three D. Four
B
Things that are of a temporary or movable nature are know as _______________________ property. A. Real B. Personal C. Improved D. Household
B
Velma Stitch, another agent at 24-Hour Realty, sold a vacant tract of land to a buyer who wanted to immediately build on the property. When the buyer asked Velma if there were any issues that would prohibit construction on the property, she replied that the property was "high and dry," and that there were no issues at all. She further stated that the only authority of concern was the county, and that they allowed any type of construction in the area. After closing, the buyer found that most of the property was located in the floodway, and that all of it was in the migration path of the highly-endangered golden-cheeked warbler. Of her many failings, Velma has violated her duty of ________________. A. Information B. Disclosure C. Discriminatory practices D. Environmental awareness
B
What is often considered the most important test of a fixture? A. Cost B. Method of attachment C. Adaptation to the property D. Intention of the parties
B
When a sale finally closes, the contract is: A. Executory B. Fully executed C. Terminated D. Enforced
B
Which of the following is true about tenancy in common? A. Ownership shares must be equal B. Ownership passes to heirs at probate C. Permission of co-owners is required to sell D. It has rights of survivorship
B
Which one of the following buildings is exempt from the ADA? A. An office building B. A private club C. A school D. A government building
B
_________________ of the Commission members represent the public. A. Two B. Three C. Six D. Nine
B
A contract that lacks mutuality is a: A. Void contract B. Bilateral contract C. Unilateral contract D. Unenforceable contract
C
A contract with a minor is generally a ____________________ contract at the option of the minor. A. Unlawful practice of law B. Contract C. Voidable D. Statute of Frauds E. Bilateral Contract
C
A fair return or equivalent in goods, services, or money for something exchanged is: A. Commerce B. Business C. Value D. Price
C
A landlord refused to lease to a visually impaired individual because he has a guide dog, which would violate the apartment's "no pet" policy. This decision is: A. Legal because it is the right of any landlord to set policy B. Illegal because a no pets policy is a violation of federal law C. Illegal because allowing a guide dog is a reasonable accommodation D. Legal because the reasonable accommodation rule does not apply to pets
C
A lawsuit was tried on a real estate matter. The judge ruled in the case, citing the decision of a judge in a similar case that was tried ten years ago. The judge's decision in the case was most likely based upon: A. Statutory law B. Civil law C. Common law D. Local ordinance
C
A married couple owns their own home. One spouse dies and immediately the surviving spouse becomes the sole owner of the property. What type of ownership did they have? A. Tenancy in common B. Community property C. Tenancy by the entirety D. Tenancy in severalty
C
A person who offers, for consideration, to locate a unit in an apartment complex for lease to a prospective tenant is known as a: A. Residential agent B. Residential locator C. Residential rental locator D. Residential broker
C
A property described as the S1/2 SE1/4 Section 8 T4S R2E and the N1/2 NE 1/4 Section 17 T4S R2E would contain: A. 260 acres B. 80 acres C. 160 acres D. 320 acres
C
A subagent is a license holder who: A. Represents a principal through cooperation with and the consent of a broker representing the principal B. Is not sponsored by or associated with the principal's broker C. Both a and b D. None of the above
C
A trust that is created under the terms of a will is a(n) _____________________. A. Investment trust B. Inter Vivos trust C. Testamentary trust D. Fiduciary trust
C
All of the following are acceptable legal descriptions in a deed, EXCEPT: A. Lot and block B. Metes and bounds C. Street address D. Rectangular Survey System
C
All of the following are necessary to obtain a real estate license EXCEPT: A. Be 18 years old or older B. Submit fingerprints to TREC C. Be a U.S. citizen D. Comply with the legal residency requirements
C
All of the following are true regarding the Real Estate Recovery Account, EXCEPT: A. If the balance in the trust account on Dec. 31 of a year is more than $3.5 million, the Commission will transfer the excess into the state's general fund B. TREC sets the maximum payments from the fund C. $50,000 is the maximum per transaction, and $100,000 is the maximum on behalf of a licensee D. Each applicant for licensure must pay $10.00 toward the Trust Account
C
All of the following regarding the Real Estate Center in Texas are true, EXCEPT: A. It was created by the Texas Legislature in the 1970s B. It is located on the Texas A&M University Campus C. The Real Estate Center has the authority to issue and revoke real estate licenses D. The Center collects and compiles data relating to real estate matters in Texas
C
All of these are factors which can affect insurance premiums, EXCEPT: A. Location B. Policyholder's claims history C. Policyholder's age D. Age and condition of the property
C
An informal reference to a parcel of land would be: A. Lot and block B. Metes and bounds C. Street address D. Rectangular Survey System
C
Another name for the principal. The party represented by the agent. A. Agency B. Agent C. Client D. Licensee E. DTPA
C
Appointed associates under an Intermediary may: A. Communicate advice and opinions to both parties B. Carry out instructions of both parties C. Give advice and opinions to their respective parties D. Give advice and opinions to either party
C
Appraisal is the business of: A. Acquisition fo land for development into residential subdivisions and retail centers B. Providing money to individuals or corporations for the conditional transfer or pledge of real estate as security for the payment of a debt C. Providing a professional option of the value of real property D. Locating units for tenant in multi-family complexes
C
Attending designation courses as the Accredited Buyer's Representative course is a good way to demonstrate: A. Integrity B. Fidelity C. Competency D. Perseverance
C
Broker members of the Texas Real Estate Commission must have been actively engaged in the real estate brokerage business as their primary source of income for the previous: A. Two years B. Ten years C. Five years D. Six years
C
Buildings, roads, and fences are all examples of: A. Personal property B. Private property C. Improvements D. Public property
C
Byron, an agent at 24-Hour Realty, is the listing agent on a property at 533 Windsong St. His broker, "Lucky" Stegall, decided to place an offer on the property. He told Byron to keep his identity as the buyer confidential because the seller might be uncomfortable with the transaction. Byron complied with his broker's request, and presented the offer. In this situation, A. The broker and Byron are ok because, as Lucky's agent, Byron is required to comply with all requests to keep information confidential. B. The broker has violated his duty of fidelity, but Byron is ok because he was following the direction of his broker. C. Both the broker and Byron have violated their duty of fidelity to the seller. D. Only Byron is guilty of a violation because he is the listing agent.
C
Dwayne and Beth, each single persons, own a parcel of land as joint tenants. Beth has a will leaving her entire estate to her brother, Jason. Upon Beth's death, her interest in the land passes to: A. Jason, because he was named in the will B. Jason, because he is her brother C. Dwayne, because is a joint tenant D. None of the above
C
Effective in 1976, manufactured homes have been built according to a building code administered by: A. Local building departments B. State Code enforcement C. HUD D. FHA
C
Eminent Domain is: A. Downzoning B. Illegal C. The right of the government to take private land for public use D. Inverse condemnation
C
Factory built housing that is built to local building codes include _______________________. A. Site built homes B. Condos C. Modular homes D. Manufactured homes
C
Homes that are built in sections according to local building codes and assembled on the job site are known as: A. Trailers B. Mobile homes C. Modular homes D. Site built homes
C
How many square feet are in 8.75 acres of land? A. 266750 B. 281,950 C. 381,150 D. 277,931
C
If a tenant fails to remove trade fixtures from the leased premises, the fixtures become the property of the landlord through: A. Remediation B. Adverse possession C. Accession D. Descent
C
If there is an alleged ethics violation against a member of The National Associations of Realtors®, a hearing panel will convene to hear testimony and presentation of evidence, decide whether a violation of the association's code of ethics occurred, and order any warranted disciplinary action. Disciplinary action could include all of the following, EXCEPT: A. A reprimand B. Suspension of membership C. Suspension of license D. Probation
C
Indestructibility, a physical characteristic of land, is also known as: A. Quality B. Enduring C. Durability D. Immobility
C
Jill and Adkins are married and live in Texas. They saved for a number of years and purchased a home. In this case, the form of ownership is most likely to be: A. Separate property B. Joint property C. Community property D. Tenants in common
C
Mortgage brokers are now known as: A. TFBs B. SROs C. RMLOs D. RBITs
C
Most lawsuits related to property condition are filed under the _________________________. A. exclusive right to sell B. open listing C. Deceptive Trade Practices Act D. procuring cause of sale
C
One acre of land contains: A. 23,459 square feet B. 640 square feet C. 43,560 square feet D. 1 square mile
C
RMLO's in Texas are licensed through: A. Texas Real Estate Commission B. National Mortgage Bankers Association C. Texas Department of Savings and Mortgage Lending D. Texas Savings and Loan Board
C
Real estate brokerage practitioners in Texas are licensed by: A. TRELA B. Texas SML C. TREC D. TALCB
C
Sarah gets a job as a sales representative for Galaxy Custom Homes. She will be working in the new Galaxy model home park, and will be limited to selling Galaxy homes only. Sarah will: A. Need to become a licensed real estate broker B. Need to become a licensed real estate salesperson C. Be exempt from the requirements of the License Act D. Be able to sell homes without a license, so long as her builder/employer has a valid broker's license
C
Seller Steve listed his property with City Realty, Acme Realty and Countrywide Realty all at the same time. After signing the listing agreements, Steve continued to run for sale by owner ads on Craigslist. The type of listing agreement Steve signed with the various companies is a(n): A. Exclusive Right to Sell B. Exclusive Agency Agreement C. Open Listing D. Net Listing
C
TREC may suspend or revoke a license for any of the following reasons EXCEPT: A. Commingling broker funds with client funds B. Selling real property by lottery C. Placing a sign offering property for sale or lease with written consent of the owner D. Acting in the undisclosed dual capacity of broker and seller within a single transaction
C
TREC my assess an administrative penalty up to $5,000 per day for violation of the License Act by: A. Only licensees who violate the rules of TREC B. Only brokers who violate the rules of TREC C. Any person in Texas, licensed or unlicensed, who violates the rules of TREC D. Any licensee, if a consumer complaint has been filed in writing
C
TREC will investigate the actions of a licensee if they receive: A. Any written complaint about the licensee for the extent of his career while licensed B. Any anonymous complaint about the licensee C. Any written, signed complaint submitted no later than the fourth anniversary of the date of the incident D. Any written, signed complaint submitted no later than the second anniversary of the date of the incident
C
Texas is community property state. What is true about community property? A. The signature of either spouse is required to sell it B. When one spouse dies the surviving spouse immediately owns all the property of the deceased C. Property inherited by one spouse can remain the separate property of that spouse D. Community property is concept of English law
C
The Commission may solicit and accept gifts, grants and donations from: A. The Advisory Committee B. The Research Center C. Any source D. Licensees only
C
The Intermediary Relationship Notice: A. Is give at the first face-to-face meeting with a prospect B. Is used to disclose representation C. Names the appointed associates when intermediary with appointments is used D. Is a mandatory form in all transactions
C
The Texas Broker-Lawyer Committee: A. Has nine members appointed by the governor B. Has eleven members appointed by the governor C. Writes the TREC-promulgated contract forms D. Approves and promulgates all TREC contract forms
C
The __________________ was passed to ensure that banks would serve the needs of a community in which they were chartered to do business. A. ADA B. ECOA C. CRA D. None of the above
C
The ___________________ offers flood insurance to homeowners, renters and business owners whose property is situated in a community that ordinances that meet or exceed FEMA requirements. A. TWIA B. loss payee C. NFIP D. CLUE E. flooding F. coinsurance clause G. insurance coverage
C
The estate that vies a party legal possession of real pretty without ownership is: A. Adverse possession B. Trespass C. A leasehold estate D. Fee simple
C
The law requiring the ease of access and the removal of barriers is: A. The Federal No Barriers Act (FNBA) B. The Community Reinvestment Act C. The Americans with Disabilities Act D. The VAMA
C
The penalties for violating of the Fair Housing Act are: A. $5,000 each time the Act is violated B. Up to $50,000 for the first violation and $100,000 for subsequent violations C. Up to $75,000 for the first violation and $150,000 for subsequent violations D. $4,000 per day
C
The purpose of the Texas Real Estate License Act is: A. to regulate the sale of real property in Texas B. to prevent commission splits among licensees C. To protect the public against unscrupulous brokers and salesmen D. to define the rule of agents in real estate transactions
C
The right of the government to take privately owned land for the public use is called: A. Condemnation B. Escheat C. Eminent domain D. Inverse condemnation
C
The salesperson exam is divided into two parts. The state portion has questions, and the national portion has questions. A. 60/40 B. 80/20 C. 30/80 D. 40/80
C
The type of ownership in which a person has the most rights is called: A. Freehold estate B. Determinable fee C. Fee simple D. A life estate
C
When a holdover tenant refuses to lease and is not paying rent his interest in the property is called: A. Holdover tenancy B. Illegal tenancy C. Tenancy at sufferance D. All of the above
C
When an agent is authorized to carry out the affairs of a business for another this is: A. Universal agency B. Special agency C. General agency D. Limited agency
C
Which of the Canons of Professional Ethics and Conduct describes the obligation of a licensee to be knowledgeable as a real estate brokerage practitioner? A. Fidelity B. Disclosure C. Competency D. Integrity
C
Which of the following is required for a lot and block description of a property? A. A point of beginning B. Compass directions C. A recorded plat D. Townships and sections
C
________________ of the Commission members are brokers. A. Two B. Three C. Six D. Seven
C
___________________________ is a form of ownership between married couples that is based upon Spanish law. A. partition B. joint tenancy C. community property D. estate in severalty E. tenancy in common
C
Broker Bob owns and operates Acme Realty. He sponsors a number of associates, including Sally and Juan. Sally secures a listing on Seller Jason's property. Rick, an agent with Now Realty, has a buyer who is interested in Sally's listing. The buyer has signed a buyer's representation agreement with Now Realty. In this transaction, Now Realty will be representing the ___________________ and Rick will be the _____________________. Because two brokers are involved, this sale is known as a(n) _____________________ sale. A. appointed associates B. cooperative C. buyer D. customer E. subagent F. general G. seller H. in-house I. customer J. intermediary K. selling agent L. special
C, K,B
A broker is a person who, for compensation: A. Sells, exchanges or leases real estate property B. Lists or attempts to list real estate for sale, lease or exchange C. Controls the acceptance or deposit of rent from a resident from a single-family real property unit D. All of the above
D
A lease with a specific starting and ending date is called: A. A periodic tenancy B. An estate at will C. A tenancy at sufferance D. An estate for years
D
A licensee writes a clause in a contract that stipulates the terms of a lease that allows the seller to remain in a property for two months after closing and funding. The licensee has: A. Violated the Texas Real Estate License Act B. Engaged in the unlawful practice of law C. Exposed his broker to potential liability D. All of the above
D
A person who has the legal authority to act as a broker or salesperson in a real estate transaction. A. Agency B. Agent C. Client D. Licensee E. DTPA
D
A property is owned by two unmarried individuals without right of survivorship. The form of ownership is most likely: A. Community property B. Ownership in severalty C. Joint tenancy D. Tenancy in common
D
Advertisements that specify a gender preference is acceptable: A. Never B. Always C. When renting a single family residence D. When renting shared living space
D
Air rights are commonly leased or conveyed in: A. Cell tower leases B. Condominiums C. Outdoor advertising D. All of the above
D
An ___________________________ involves ownership of real estate by one individual or entity. A. partition B. joint tenancy C. community property D. estate in severalty E. tenancy in common
D
An applicant for a real estate license must disclose in the license application whether the applicant has: A. Been convicted of a felony B. Entered a plea of nolo contendere to a felony C. Been convicted of a felony and the time for appeal has lapsed or the judgment or conviction has been affirmed on appeal D. All of the above
D
An example of compliance with the Federal Fair Housing Act would be: A. Signing the VAMA B. Displaying the equal housing poster C. Having a standard office procedure for working with customers D. All of the above
D
Any attempt by competing brokers to fix commission rates in a given market area would be a violation of: A. RESPA B. SAFE Act C. Community Reinvestment Act D. Sherman Anti-Trust Act
D
Competence is the obligation of a real estate agent to: A. Be informed on conditions affecting the real estate market B. Be involved in continuing education courses in topics regarding real estate C. Exercise judgment and skill in the performance of his or her work D. All of the above
D
Emblements are: A. Personal property B. Annually cultivated crops C. Attached to the land D. All of the above
D
Homeowners insurance can protect the policyholder from unexpected losses, including: A. Fire B. Vandalism C. Personal liability D. All of the above
D
In addition to mortgage payments, a homeowner's cost of ownership includes: A. Taxes B. Insurance C. Repairs and Maintenance D. All of the above
D
In order to be valid, a lease must have which of the following requirements? A. Competent parties (lessor and lessee) B. Consideration (rent) C. Legal purpose D. All of the above
D
In order to successfully sue for commission: A. The broker must have a valid real estate license B. The broker must be the procuring cause of sale C. The broker must have an employment agreement signed by the party to be charged D. All of the above
D
In the event of default by the buyer, the seller may seek: A. Monetary Damages B. Liquidated Damage C. Specific Performance D. Any of the above
D
In which of the following situations might a survey be required? A. The sale of a portion of an existing tract of land B. Settlement of boundary line disputes between neighbors C. Division of a property between multiple owners, partition D. All of the above are situations that might require a survey
D
Listing agreements are terminated: A. When the seller receives a full-price offer B. When a seller accepts an offer and the option period ends C. If the salesperson dies D. On the termination date
D
Listings can be terminated by: a. Bankruptcy of either party b. Abandonment by the agent c. At any time by mutual agreement d. All of the above
D
Mutual consent is often referred to as: A. A meeting between friends B. Consideration C. Specific Performance D. A meeting of the minds
D
Property taxes: A. Are according to value B. Create the highest priority lien on real property C. Are always paid first at foreclosure sale D. All of the above
D
Requirements of the ADA include: A. Wheelchair access B. Braille marking on elevator control keys C. Flashing alarm lights for the hearing impaired D. All of the above
D
Something given in exchange for a promise is called: A. An offer B. A counteroffer C. A bribe D. Consideration
D
Surveys are often obtained to: A. Partition a property B. Establish boundary lines C. Sell a portion of a larger property D. Any of the above
D
TREC has a Real Estate Recovery Trust Account. What is NOT true about the account? A. Every applicant for a license in Texas pays $10 to the account B. Money in the account can be invested C. If the balance in the account goes over $3.5 million, the excess goes to the general revenue fund D. Payments out of the account are limited to $100,000 per transaction
D
The Civil Rights Act of 1968 does NOT offer protection for discrimination based on: A. Familial status B. Race C. Religion D. Occupation
D
The Commission has subpoena authority that includes the: A. Calling of witnesses B. Examination of witnesses under oath C. Delivery of records and documents D. All of the above
D
The Commission has the authority to set fees for: A. Filing an application for a broker license B. Branch office licenses C. Transcript evaluations D. All of the above
D
The Commission is required to prioritize the investigation of complaints based upon: A. The degree of potential harm to a consumer B. Potential for immediate harm to a consumer C. Overall severity of the allegations in the complaint D. All of the above
D
The Federal Fair Housing act prohibits discrimination based on: A. Race B. Religion C. Sex D. All of the above
D
The National Flood Insurance Program offered flood insurance to which of the following? A. Homeowners B. Renters C. Business owners D. All of the above
D
The Recovery Trust Account: A. Protects consumers who suffer a loss due to illegal acts of licensees B. Has two maximum payment amounts - $50,000 and $100,000 C. Is funded by licenses and applicants D. All of the above
D
The Statute of Frauds is applicable to: A. Contracts for the sale of real estate B. Listing agreements C. Buyer Representation Agreements D. All of the above
D
The Texas Real Estate Commission consists of ____________ members. A. Four B. Five C. Six D. Nine
D
The claims database used by the insurance industry is the __________________. A. TWIA B. loss payee C. NFIP D. CLUE E. flooding F. coinsurance clause G. insurance coverage
D
The duties of a broker in a fiduciary relationship do NOT include: A. Accounting B. Loyalty C. Care D. Trust
D
The individual who, through a series of uninterrupted activities or actions, brought about the completion of a contract is called the _________________________. A. exclusive right to sell B. open listing C. Deceptive Trade Practices Act D. procuring cause of sale
D
The largest trade organization representing real estate professionals is: A. IREM B. NAR C. SIOR D. TREC
D
The legal requirement that certain contracts be in writing to be enforceable is the ____________________. A. Unlawful practice of law B. Contract C. Voidable D. Statute of Frauds E. Bilateral Contract
D
The number of hours required for a broker or salesperson license is established by the: A. Broker-Lawyer Committee B. Education Standards Advisory Committee C. Education Department D. State Legislature
D
The outcome of a complaint investigation by TREC may result in probation and/or: A. A fine B. A reprimand C. License suspension or revocation D. Any of the above
D
The primary duty of a licensee is to represent the interests of: A. The agent B. The broker C. Him or herself D. The client
D
The provision of the License Act that could potentially abolish the Texas Real Estate Commission is the: A. Sundower Act B. Expiration Act C. Deceptive Trade Practices Act D. Sunset Act
D
The supply of real estate is affected by: A. Land costs B. Building codes C. Government regulation D. All of the above
D
Three co-owners wish to divide their undivided interests in a property into individually owned tracts of land. This process is known as a(n) ____________________. A. Alienation B. Lawsuit C. Waiver D. Partition
D
When citing information such as square footage in an advertisement, the best source for the information is the: A. Seller B. Builder C. Architect D. Appraisal district or other tax authority
D
Which of the following is NOT true regarding a Texas homestead property? A. A rural homestead has the maximum size of 200 acres B. An urban homestead has a maximum size of 10 acres C. Homestead protection is automatic D. Homestead protection can be waived if done in writing
D
Which of the following is a factor that can affect insurance premiums? A. Age and condition B. Location C. The policyholder's claim history D. All of the above are factors that can affect insurance premiums
D
While listing the property with you, the seller asks "Who sets real estate commission rates?" The correct response would be: A. The standard rate is set by TREC. B. The standard commission rate is set state law. C. Long ago, the industry agreed on a set rate, and that is pretty much how it is today. However, I can cut the standard rate and make you a deal. D. There is no standard rate. Different brokers charge different fees. Our fees are based upon the following services...
D
A Texas consumer protection law. A. Agency B. Agent C. Client D. Licensee E. DTPA
E
A contract in which both parties are obligated to perform is a _________________________ contract. A. Unlawful practice of law B. Contract C. Voidable D. Statute of Frauds E. Bilateral Contract
E
Most standard homeowners insurance policies do not generally cover damage from _______________________. A. TWIA B. loss payee C. NFIP D. CLUE E. flooding F. coinsurance clause G. insurance coverage
E
___________________________ is the most common form of ownership between two or more individuals who are not married. A. partition B. joint tenancy C. community property D. estate in severalty E. tenancy in common
E
If a homeowner fails to maintain sufficient insurance coverage, the payout of a claim may be reduced because of the ______________________. A. TWIA B. loss payee C. NFIP D. CLUE E. flooding F. coinsurance clause G. insurance coverage
F
The broker and his or her associates are most often in a _________________ agency relationship. A. appointed associates B. cooperative C. buyer D. customer E. subagent F. general G. seller H. in-house I. customer J. intermediary K. selling agent L. special
F
Louis, an agent at Acme Realty, has a listing at 10 Polk Ln. Bill, an agent with Uptown Realty, has a buyer who wishes to purchase the 10 Polk Ln. property. The buyer has not entered into an agency agreement with Uptown Realty, and does not wish to be represented in the purchase. In this transaction, Uptown will represent the ______________ as a(n) _______________. A. appointed associates B. cooperative C. buyer D. customer E. subagent F. general G. seller H. in-house I. customer J. intermediary K. selling agent L. special
G, E
Lenders require ____________________ naming the lender as a ____________________ to protect their interest in the property. A. TWIA B. loss payee C. NFIP D. CLUE E. flooding F. coinsurance clause G. insurance coverage
G,B
Sal and Martha are agents at Acme Realty. Sal has a listing at 47 Pine St. Martha has a buyer's representation agreement with the Andersons. Because only one broker is involved, this transaction is known as a(n) ____________________ sale. If the Andersons purchase the Pine St. property, the broker will be a(n) ________________ . Sal and Martha will most likely be ____________________ in the transaction. A. appointed associates B. cooperative C. buyer D. customer E. subagent F. general G. seller H. in-house I. customer J. intermediary K. selling agent L. special
H, J, A
A buyer or seller is an agent's _____________ until he or she becomes a client. A. appointed associates B. cooperative C. buyer D. customer E. subagent F. general G. seller H. in-house I. customer J. intermediary K. selling agent L. special
I
The agreement between a broker and a client is most often a _________________ agency relationship. A. appointed associates B. cooperative C. buyer D. customer E. subagent F. general G. seller H. in-house I. customer J. intermediary K. selling agent L. special
L
