Texas Principles of Real Estate 1
mixed-use property
- Any urban, suburban or village development, or even a single building, that blends a combination of residential, commercial, cultural, institutional, or industrial uses, where those functions are physically and functionally integrated, and that provides pedestrian connections.
special purpose property
A category of real property created as a result of combining the land and its improvements for a single highest and best use
special purpose
A church is a definition of a _____________ ____________ property.
market comparison approach
A means of comparing similar type properties, which have recently sold, to the subject property. Commonly used in comparing residential properties.
residential property
A type of property that includes one to four dwelling units
assessed value
A valuation placed upon a piece of property by a public authority as a basis for levying taxes on the property.
A
All property that is not land and is not permanently attached to land is known as...? APersonal Property BReal Property CReal Estate DFixture
general agent
An agent with full authority over one property of the principal, such as a property manager
special agent
An agent with limited authority to act on behalf of the principal, such as created by a listing
mixed use property
Any urban, suburban or village development, or even a single building, that blends a combination of residential, commercial, cultural, institutional, or industrial uses, where those functions are physically and functionally integrated, and that provides pedestrian connections
common areas
Areas in a condominium that are used by all residents.
improvements
Changes or additional made to a property, such as walls and roads. These typically increase the value of a property, except in some cases of over improvement
improvements
Changes or additions made to a property, such as walls and roads are known as...?
true
For tax purposes, real estate taxes can be deducted from personal income...? True False
no
Is value the same as price?
real estate
Land and everything permanently attached to land.
caveat emptor
Let the buyer beware. The buyer must examine the goods or property and buy at his or her own risk
income approach
Mark is looking to purchase a commercial office building. An appraiser was hired to assess the value of the building. What appraisal method did the appraiser use...? Market Comparison Approach Income Approach Cost Approach All of the above
A
Mobile homes not permanently attached to the land are generally considered...? APersonal Property BReal Property CFixtures DTrade Fixtures
true
Modular homes can typically be built quicker and at a lower cost as compare to homes constructed on-site...? True False
yes
Must property inspections must be licensed by the Texas Real Estate Commission...?
industrial property
Property that is used by companies or persons for manufacturing, warehousing, or the assemblage of components
deed
Since a CONDOMINIUM is considered Real Property, each unit owner receives a ____________ at closing.
real property
The aggregate of rights, powers, and privileges conveyed with ownership of real estate.
principal
The employer of an agent
A
The employer of an agent is known as the...? APrincipal BCustomer CEscrow DAll of the above
A
The landowner's ability to take minerals from the earth or to sell or lease this right to others is known as...? AMineral rights BAir Rights CLand Rights DBundle of RightsA
air rights
The rights in real property to the reasonable use of the air space above the surface of the land.
bundle of rights
The rights of an owner of a freehold estate to possession, enjoyment, control, and disposition of real property.
continuing education courses
What courses must be taken after you obtain your real estate license...?
A
Which of the following is an example of a fixture...? AKitchen cabinets BRemovable bookshelves CCurtains DRugs
true
true/false The SHARES OF STOCK are considered PERSONAL PROPERTY NOT REAL PROPERTY
listing contract
A contract in which a property owner employs a real estate broker to market the property described in the contract
shares of stock
A cooperative owner owns ......................... in the cooperative? Shares of stock A deed Title All of the above
planned unit development
A form of cluster zoning providing for both residential and commercial land uses within a zoned area.
cooperative
A form of ownership in which stockholders in a corporation occupy property owned by the corporation under a lease is known as a...? Cooperative Condominium Townhouse PUD
cooperative
A form of ownership in which stockholders in a corporation occupy property owned by the corporation under a lease.
condominium
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.
The licensee is convicted of a felony
A licensee's license may be suspended or revoked if which of the following occurs...? The licensee changes brokerages The licensee is convicted of a felony The licensee does not close a transaction within one calendar year The licensee negotiates on behalf of his/her client
A
A means of comparing similar type properties, which have recently sold, to the subject property is known as the...? AMarket Comparison Approach BIncome Approach CCost Approach DAssessment Approach
cost approach
A non-profit organization in looking to purchase a church. An appraiser was hired to assess the value of the church. What appraisal method did the appraiser use...? Market Comparison Approach Income Approach Cost Approach All of the above
agent
A person authorized to act on behalf of another
agent
A person authorized to act on behalf of another is known as a/an...? Principal Agent Customer Attorney
fiduciary
A person in a position of trust and confidence, as between principal and broker, is known as a...? Customer Principal Client Fiduciary
fiduciary
A person in a position of trust and confidence, as between principal and broker; broker as fiduciary owes certain loyalty which cannot be breached under the rules of agency
real estate broker
A person or an organization acting as the agent for others in negotiating the purchase and sale of real property or other commodities for a fee
real estate salesperson
A person performing any of the acts included in the definition of real estate broker but while associated with and supervised by a broker
non-homogeneity
A physical characteristic of land describing that land as a unique commodity
B
A property manager is an example of what type of agent...? AGeneral Agent BSpecial Agent CSpecific Agent DUniversal Agent
mobile home
A structure transportable in one or more sections, designed and equipped to contain not more than two dwelling units to be used with or without a foundation systems.
cost approach
An analysis in which a value estimate of a property is derived by estimating the replacement cost of the improvements, deducting therefrom the estimated accrued depreciation, then adding the market value of the land.
appraised value
An evaluation of a property's value based on a given point in time that is performed by a professional appraiser during the mortgage origination process.
public parks
Government held properties include which of the following...?
3600
How many points must an applicant earn in order to obtain their real estate broker's license...?
inactive
If a real estate salesperson terminates their employment with their sponsoring broker, the salesperson's license is considered what...? Active Inactive Revoked Suspended
depreciate
Improvements typically ............ in value? Rescind Escalate Appreciate Depreciate
18
In order to obtain a real estate license, an applicant must be at least how many years of age...? 18 20 21 22
trade fixtures
Items that are installed by a commercial tenant and are removable upon termination of the tenancy are known as...? Emblements Trade Fixtures Chattel Real Property
income approach
One of the three methods of the appraisal process generally applied to income producing property, and involves a three-step process - (1) find net annual income, (2) set an appropriate capitalization rate or "present worth" factor, and (3) capitalize the income dividing the net income by the capitalization rate.
fixture
Personal property that has become real property by having been permanently attached or adapted to real property is known as a/an...? Fixture Trade Fixture Emblements Chattel
false
Price is typically equal to the cost of the property...? True False
commercial property
Property that produces rental income or that is used in business. Properties with five or more dwelling units are considered commercial property.
true
Real estate agents and brokers must be careful not to provide legal advice to their clients...? True False
2
Real estate licenses are issued for a period not to exceed how many years...? 1 2 3 4
encourage homeownership
Tax benefits for homeowners are provided in part to...? Discourage homeownership Encourage homeownership Reduce the length of homeownership Decrease mortgage payments
fiduciary duty
That duty owed by an agent to act in the highest good faith toward the principal and not to obtain any advantage over the latter by the slightest misrepresentation, concealment, duress or pressure
price
The amount a purchaser agrees to pay and a seller agrees to accept under the circumstances surrounding a transaction
demand
The amount of goods consumers are willing and able to buy at any given price during any given time period
supply
The amount of goods offered for sale within a given market at a given price during a given time period
A
The amount of goods offered for sale within a given market at a given price during a given time period is known as... ASupply BDemand CGDP DNone of the above
depreciated value
The basis of a depreciable asset used to compute the taxable gain from its sale; the basis is acquisition cost plus capital improvements less accrued depreciation.
brokerage
The business of bringing buyers and sellers together and assisting in negotiations for the terms of sale of real estate is known as...?
brokerage
The business of bringing buyers and sellers together and assisting in negotiations for the terms of sale of real estate.
insured value
The cost of replacing a structure completely destroyed by an insured hazard.
mineral rights
The landowner's ability to take minerals from the earth or to sell or lease this right to others.
land
The material of the earth, whatever may be the ingredients of which it is composed, whether soil, rock, or other substance, and includes free or unoccupied space for an indefinite distance upwards as well as downwards.
educational standards advisory
The mission of the _______________ _______________ ________________ Committee (ESAC) is to regularly review and revise the curriculum standards, course content requirements, and instructor certification requirements for qualifying and continuing education courses...?
customer
The party the agent brings to the principal as seller or buyer of the property is known as the...? Customer Broker Intermediary All of the above
customer
The party the agent brings to the principal as seller or buyer of the property.
qualifying education
The pre-licensing courses needed to obtain your real estate license are considered what type of courses...?
value
The present worth of future benefits
value
The present worth of future benefits is referred to as...?
capital gains
The profit realized from the sale of real estate or other investment. Capital loss occurs when an investment property or another type of investment is sold at a loss.
60 (part I and part II)
The qualifying Real Estate Principles course consists of how many classroom hours in total...?
air rights
The rights in real property to the reasonable use of the air space above the surface of the land is known as...? Mineral Rights Air Rights Land Rights Riparian Rights
demography
The study of the social and economic statistics of a community
land
The surface of the earth, the area above and below the surface, and everything permanently attached thereto is known as...? Land Real Property Real Estate Bundle of Rights
cost
The total dollar expenditure for labor, materials, and other items related to construction
A
The transfer of personal property is typically done using a...? ABill of Sale BDeed CPurchase Contract DAll of the above
Texas Real Estate Dealers Act
This Act established the real estate licensing requirements in Texas in 1939...? Fair Housing Act Texas Real Estate Commission Act Texas Real Estate Dealers Act U.S. Real Estate Licensing Act
real property
Trees and shrubbery that are not cultivated annually are considered...? Personal property Chattel Real property Emblements
cost of labor
Which of the following affects supply...? Employment Cost of labor Population All of the above
disclosure
Which of the following is a fiduciary duty owed by an agent to their client...? Indemnification Disclosure Compensation All of the above
all of the above
Which of the following is a tax deduction a homeowner can take advantage of...? Mortgage interest payments Real estate taxes Loan origination fees All of the above
all of the above
Which of the following is considered a permanent man-made improvement to land...? Fences Sheds Wells All of the above
someone acting under a power of attorney
Which of the following is exempt from having to obtain a real estate license to buy or sell real estate on someone else's behalf...? Someone acting under a power of attorney Architects Appraisers All of the above
proprietary lease
While cooperative owners do not own their apartment unit, they are allowed to occupy the unit through a __________________ _______________.
the agent's sponsoring broker
Who holds the real estate license of an agent...? The agent's sponsoring broker The agent themselves The Texas Real Estate Commission All of the above
manufactured home dealerships
Who is responsible for selling newly constructed mobile homes...? Manufactured home dealerships Real estate brokers Real estate agents Mobile home owners
time-share
license or contractual or membership right of occupancy in a project which is not coupled with an estate in the real property.
