Texas State Exam Realtor Salesperson

A property was assessed at $150,000 with a rate of $27.50 per $1,000. The next year the tax rate was reduced to $25 per $1,000 and the assessed value went up by 10%. The taxes would:

(1) $150,000 / $1,000 = 150 (1000`s). (2) 150 X $27.50 = $4,125 (last year). (3) $150,000 X 110% = $165,000 (new assessed value). (4) 165 X $25 = $4,125. So, the taxes would stay the same (C).

A salesperson earned 2.75% commission on $600,000 in sales for the year. However, the salesperson had only taken a draw against commission of $150 per week for the entire year for the salesperson's salary. What would be the total amount earned by the salesperson?

600,000 X 2.75% = 16,500 (total commission)

A person owns a 6 unit apartment complex that was purchased for $102,000. 2 units rent for $400 each per month, 2 units rent for $275 each per month and the rest rent for $200 each per month. The monthly expenses are $645. What is the annual net rate of return?

2 units X $400 X 12 months = $9,600. 2 units X $275 X 12 months = $6,600. 2 units X $200 X 12 months = $4,800. $9,600 + $6,600 + $4,800 = $21,000 gross. $645 X 12 months = $7,740 annual expenses. $21,000 (income) - $7,740 (expenses) = $13,260 net. $13,260 (net) - $102,000 (value) = 13% rate of return.

The Real Estate Center at Texas A & M University is funded by:

$20 from brokers and $17.50 from salespersons each time a license is issued or renewed

A broker sold a seller's property with closing to take place December 15. The sale price was $80,000. The seller had a loan balance of 41,000. The seller agreed to pay the title insurance of $240, the commission rate of 8% and the taxes, paid in arrears, were $577 for the year. How much would the seller net out on this sale?

$80,000 (sale price) - 41,000 (loan) - 240 (title insurance) - 6,400 (comm.) (commission figured at 80,000 X 8% = 6,400) - 552.96 (taxes) (taxes figured at 577 / 12 months = 48.08 per month X 11.5 months = 552.96) = $31,807.04 (net).

A buyer obtained a 10% interest rate loan in the amount of $90,000. The term of the loan was 30 years and the monthly payment of principal and interest was $789.81. How much of the first month's payment will be paid on the principal?

$90,000 X 10% = $9,000 (int/yr) / 12 months = $750 (int/mo); $789.81 (P&I) - $750 (int) = $39.81 (principal).

A building was to be constructed with the dimensions of 130 feet long, 30 feet wide and 24 feet high. Contractor A was going to build the building at $8.90 per square foot while Contractor B was going to build it at $.375 per cubic foot. How much could be saved by using Contractor A rather than Contractor B?

390.00 - Square feet is determined by multiplying the length X width. Cubic feet is length X width X height. 130` X 30' = 3,900 sq. ft. X $8.90 = $34,710 (Cost of Contractor A). 130' X 30' X 24' = 93,600 cubic ft. X $.375 = $35,100 (Cost of Contractor B). $35,100 - $34,710 = $390 savings (B).

Which of the following statements best describes a plat?

A document that records a subdivision on the public record

An owner wanted to extend the current garage, but found out that the modification would extend the garage over the side set-back line. What would the owner need to obtain in order to extend the garage past the set-back line?

A variance is used to change something after the zoning is already in place.

A buyer made an offer on a property a broker had listed. The broker presented the offer to the seller. While the seller was still considering the offer, the buyer contacted and informed the broker that the buyer wanted to withdraw the offer. The broker should:

Continue to market the property for the seller.

Which of the following terms best describes a fiduciary obligation to a client?

Disclosure

An owner listed a property with one broker but reserved the right to sell it personally without paying a commission. Which of the following listings was MOST likely signed?

Exclusive agency (One broker indicates it is an exclusive agreement (not open). The owner having the right to sell indicates it is an exclusive agency, whereby either the broker or owner can sell the property.)

As an agent to the seller, the broker should fill out the seller disclosure form on behalf of the seller...?

False

A seller was considering listing the seller's residential property for sale. A real estate agent found 3 comparable properties in the seller's neighborhood that had sold for $120,000, $140,000 and $160,000. In order to estimate the value of the seller's home, which of the following would be the salesperson's best choice?

Make adjustments to the comparables and then compare to the seller's property - When doing the market data approach, adjust the comparables to the subject property (i.e., if the comparable is better, subtract for the differences; if the comparable is poorer, add for the differences)

If the tenant is paying rent, property taxes and hazard insurance , which of the following leases is most likely in use?

Net Lease. When the tenant pays the property charges , it is a net lease.

A veteran buyer assumed a VA loan of another veteran and the original seller was released from liability for the loan. This is called:

Novation. (When a lender allows a new buyer to be substituted in place of the original borrower, the loan has been renegotiated .

A prospective buyer wanted to have the right to purchase a home at a set price within the next 90 days but did not want to be obligated to purchase it. Which of the following documents would allow the buyer to do this?

Option- An option gives the optionee the RIGHT to buy at a specific price within a specific time period.

A piece of property measured 1/4 mile x 1/2 mile. Comparable properties in the area had sold for the following: Property A - $81,000 for 60 acres; Property B- $121,500 for 90 acres; Property C - $162,000 for 120 acres. Using the data from the comparable sales, what would this piece of property sale for?

Property A - $81,000 divided by 60 acres equals $1,350 per acre. Property B - $121,500 divided by 90 acres equals $1,350 per acre. Property C - $162,000 divided by 120 acres equals $1,350 per acre. The subject property measures 1/4 miles times 1/2 mile which equals 1/8 of a square mile. One square mile equals 640 acres. Therefore, 640 acres divided by 8 equals 80 acres for the subject property. 80 acres times $1,350 per acre equals $108,000.

Damages simply for the purpose of punishment are known as...?

Punitive damages

Which of the following methods of appraisal would MOST likely be used when appraising a single family house?

Reproduction and Market Data- Usually an appraiser will lend most weight to the market data (direct sales comparison) approach. On newer properties and properties for which there are few comparables, the replacement (cost) approach is also used effectively.

Which of the following normally triggers an alienation clause?

Sale or assignment of the mortgaged property

Which of the following statements best describes a net listing?

Sales price less sellers required proceeds

The TREC form OP-H is used for which of the following reasons...?

Seller disclosures

A contract is not completed and binding until it is signed by the:

The Offeree

Which of the following is NOT contained in a note?

Title Insurance . Title insurance has nothing to do with the note or the debt itself.

A seller can limit their liability by completing the seller disclosure form...?

True

When creditors sue home owners entitled by Texas law to homestead exemptions , the general creditors :

Usually do not have any right to order that the debtors home be sold for payment of the debt.

Which of the following is NOT considered as an operating cost in a property management budget?

Vacancy and lost rent

When is a seller's property disclosure not required...?

When property is being sold as a result of a court order

Which of the following items would NOT always be a part of a contract for the sale of personal property ?

Written agreement. All contracts do not have to be in writing. The statute of frauds says that to be enforceable all real estate sales contracts, deeds, and leases over one year must be in writing.

In Texas, a mechanic's lien:

can force sale of homestead property if there is a contract signed by both spouses and acknowledged prior to the time the work was begun or the materials delivered

Documents are recorded to provide:

constructive knowledge

A property that contains asbestos insulation wrapped around pipes would be best remedied by:

encapsulation- the best way to solve pipes wrapped with asbestos (which may be a health hazard) is to encapsulate, i.e., seal or enclose the insulation.

The value of a property over and above all outstanding debts is called:

equity

The Metes and Bounds method of giving a legal description uses:

exact distances going in definite directions

If a Texas corporation owns income-producing real estate and is not a Subchapter S corporation, then it must pay:

federal income taxes annually on profits

Under the Texas Natural Resources Code, the owner of beachfront property on the Gulf of Mexico:

may build a boat house, but not a residence, seaward of the natural vegetation line

A broker or salesperson who fails to give the statutory title notice to the buyer at or prior to closing:

may have the license suspended or revoked and cannot collect a commission on the subject sale

The right of a person to regain title to property after paying all debts is known as:

redemption-Redemption is the right to "buy back" your property from whoever bought it at a foreclosure sale.

Owner J gave J's housekeeper a life estate in a property. J also stipulated that the property go to J's child when the housekeeper died. J died prior to the housekeeper. J's child is referred to as the:

remainderman- The remainderman is the person who receives the property upon the death of the life tenant (housekeeper)

A Texas real estate broker's fidelity to the client would include all of the following EXCEPT:

showing only honesty and fairness to the client

Which of the following statements is true regarding a condominium?

the owners have an undivided interest in the common areas

T gave a neighbor the right to cross over T's property. T's property would be referred to as:

the servient tenement- land that is burdened by an easement (has an easement crossing it) is called the servient tenement