Texas Principles of Real Estate 1: Mini-Quizzes
True
A broker as a fiduciary owes certain loyalty, which cannot be breached under the rules of agency...? True False
Loyalty
A broker must always place his/her client's interests above their own. This is an example of what fiduciary duty...? Disclosure Loyalty Care Accounting
Disclosure
A broker must inform their clients of all known facts related to a transaction. This is an example of what fiduciary duty...? Disclosure Loyalty Care Accounting
Special Agency
A broker signed a buyer representation agreement with a buyer. What type of agency was created...? General agency Special agency Universal agency Specific agency
Customer
A broker will work for a client and with a...? Principal Customer Agent None of the above
Express Agency
A buyer representation agreement creates what type of agency...? Express agency Implied agency Partial agency General agency
Real Estate Broker
A buyer representation agreement is signed by a buyer and a/an...? Real estate salesperson Real estate broker Associate licensee Seller
Negotiating Services
A buyer's agent is allowed to provide which of the following services to the principal...? Negotiating services Legal services Financial services All of the above
True
A buyer's broker can appoint sub-agents to help the buyer find a property...? True False
False
A buyer's broker should diligently assist their client in obtaining the necessary financing to purchase a house...? True False
An Escrow Account
A buyer's earnest money should be deposited in which of the following...? The broker's account The seller's account An escrow account Any of the above
Shares of Stock
A cooperative owner owns ......................... in the cooperative? Shares of stock A deed Title All of the above
Latent Defect
A defect known to the seller but not to the buyer, and is not discoverable by ordinary inspections is referred to as a/an...? Latent Defect Non-structural Defect Structural Defect Insignificant Defect
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
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
$500,000
A married couple is exempt from paying taxes on capital gains for up to how much in profit if they lived in their house for at least 2 of the last 5 years...? $100,000 $250,000 $500,000 $1,000,000
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 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
The Agent Finds a Buyer Who is Ready, Willing, and Able to Purchase the Property
A seller's agent is entitled to a commission after...? The agent finds a buyer who is ready, willing, and able to purchase the property The buyer closes on the transaction The seller agrees to pay the commission All of the above
Disclosure
A seller's broker is required to tell their client any relationship they may have with the buyer. This is an example of which fiduciary duty...? Loyalty Disclosure Care Accounting
Residential Property
A type of property that includes one to four dwelling units is known as...? Commercial Property Mixed-Use Property Residential Property Special Purpose Property
$25,000,000
According to the Texas Deceptive Trade Practices Act, businesses with assets exceeding .............. are not considered consumers? $1,000,000 $5,000,000 $10,000,000 $25,000,000
Information
According to this responsibility, the seller must always provide any known material facts about the property...? Care Information Loyalty Accounting
Implied Agency
Agency that exists as a result of actions of the parties is known as...? Implied Agency Express Agency General Agency Special Agency
All of the Above
An agency relationship may be terminated by which of the following...? Destruction of the property Expiration of the term of an agency Mutual agreement of the parties All of the above
False
An agency relationship must be created in order for a broker to show properties to a buyer...? True False
General Agent
An agent with full authority over one property of the principal is known as a...? General Agent Special Agent Specific Agent Real Estate Agent
Special Agent
An agent with limited authority to act on behalf of the principal is referred to as a...? General Agent Universal Agent Special Agent Specific Agent
Improvements
Changes or additions made to a property, such as walls and roads are known as...? Improvements Fixtures Features Emblements
True
For tax purposes, real estate taxes can be deducted from personal income...? True False
Public Parks
Government held properties include which of the following...? Ranches Churches Office buildings Public parks
3600
How many points must an applicant earn in order to obtain their real estate broker's license...? 270 1200 2500 3600
Customer
If a buyer and broker do not sign a buyer representation agreement, the buyer will serve as a ..........to the broker? Principal Client Customer Partner
Satisfy the Education Requirements and Retake the State Exam
If a person's license has been expired for more than 6 months, they are required to do which of the following in order to re-activate their license...? Satisfy the education requirements and retake the State exam Pay a renewal fee Pay 2x the renewal fee They are not allowed to re-apply for a 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
$20
If the replacement cost of an item with a 5 year life span is $100, and it is 4 years old, what is the actual cash value of the item...? $20 $50 $80 $100
Depreciate
Improvements typically ............ in value?
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
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
True
Modular homes can typically be built quicker and at a lower cost as compare to homes constructed on-site...? True False
Flood Damage
Most homeowners policies do NOT cover which of the following...? Flood damage Smoke damage Fire damage All of the above
The Term of the Contract
Paragraph 4 of the Residential Buyer/Tenant Representation Agreement describes which of the following...? Definitions Confidential information The term of the contract Broker's fees
Client's Obligations
Paragraph 6 of the Residential Buyer/Tenant Representation Agreement describes which of the following...? Definitions Client's obligations The parties The property
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
True
Property inspections must be licensed by the Texas Real Estate Commission...? True False
Commercial Property
Property that produces rental income or that is used in business is known as...? Commercial Property Residential Property Mixed-Use Property Special Purpose Property
True
Real estate agents and brokers must be careful not to provide legal advice to their clients...? True False
False
Real estate agents cannot be held liable for any false or misleading information about a property...? True False
2
Real estate licenses are issued for a period not to exceed how many years...? 1 2 3 4
True
Real estate prices are directly related to supply and demand...? True False
Buyer Representation Agreement
Robert is looking to exclusively represent a buyer in a transaction. Which of the following document should Robert sign with the buyer...? Listing Contract Open Listing Exclusive Agency Agreement Buyer Representation Agreement
Encourage Homeownership
Tax benefits for homeowners are provided in part to...? Discourage homeownership Encourage homeownership Reduce the length of homeownership Decrease mortgage payments
Compensation
The 'C' in the acronym C.I.I.A. stands for...? Care Consideration Confidentiality Compensation
Care
The 'C' in the acronym C.O.A.L.D. stands for which fiduciary duty...? Consideration Co-sign Care Conditional
Consumer
The Texas Deceptive Trade Practices Act defines this individual as someone who seeks, or acquires, by purchase or lease, any goods or services...? Agent Principal Client Consumer
Paragraph 5
The broker's obligations are described in which of the following paragraphs of the Residential Buyer/Tenant Representation Agreement...? Paragraph 1 Paragraph 2 Paragraph 5 Paragraph 10
Brokerage
The business of bringing buyers and sellers together and assisting in negotiations for the terms of sale of real estate is known as...? Agency Brokerage Trading Appraising
Puffing
The exaggeration of the good points of a product, or real property, and the prospects for future rise in value, profits, and growth is known as...? Redlining Novation Puffing Steering
Assisting with Counter Offers
The fiduciary duty of care when representing a buyer includes which of the following services...? Assisting with counter offers Evaluating terms and conditions from any offers on the property Disclosing information learned from the seller's broker All of the above
True
The mission of the Education Standard Advisory Committee (ESAC) is to regularly review and revise the curriculum standards, course content requirements, and instructor certification requirements for qualifying and continuing education courses...? True False
Paragraph 1
The parties to a Residential Buyer/Tenant Representation Agreement are listed in which of the following paragraphs of the contract...? Paragraph 1 Paragraph 2 Paragraph 3 Paragraph 4
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
Qualifying Education Courses
The pre-licensing courses needed to obtain your real estate license are considered what type of courses...? Continuing education courses Elective courses Qualifying education courses All of the above
Value
The present worth of future benefits is referred to as...? Supply Yield Value Investment
Capital Gains
The profit realized from the sale of real estate or other investment is known as...? Capital Gains Debits Credits Deductibles
60
The qualifying Real Estate Principles course consists of how many classroom hours in total...? 15 30 45 60
Sub-Agent
The real estate agent in a transaction is considered a ............ to his/her broker? Principal Client Customer Sub-agent
Actual Cash Value
The replacement cost minus depreciation is referred to as...? Net cash value Actual cash value Gross cash value Effective cash value
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
Termination
The sale of the property results in the ............................ of the agency relationship? Beginning Creation Termination The agency relationship is not contingent on the sale of the property
Seller's Disclosure Notice
The seller is required to provide buyers with which of the following documents...? Survey Property Inspection Report Seller's Disclosure Notice Property Condition Report
Availability
The seller must allow their agent to show the property to prospective buyers. This is an example of what responsibility owed by the seller to the agent...? Availability Care Disclosure Accounting
Real Estate
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
Commercial Brokerage
These real estate brokers specialize in the sale and lease of shopping centers and office buildings...? Residential brokerage Apartment brokerage Commercial brokerage Special use brokerage
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
Deceptive Trade Practices Act
This Act protects consumers against false, misleading, or deceptive acts...? Deceptive Trade Practices Act Consumer Protection Act Fair Trade Act Texas Consumer Act
Customer
This refers to the party the agent brings to the principal as seller or buyer of the property...? Client Customer Partner Principle
Indemnification
This reimbursement or compensation paid to someone for a loss already suffered is known as...? Indemnification Consideration Arbitration Conversion
Real Property
Trees and shrubbery that are not cultivated annually are considered...? Personal property Chattel Real property Emblements
False
Value is the same as price...? True False
HOB
What is the most common homeowners policy found in Texas...? HOA HOB HOC HOD
All of the Above
What is typically covered in a homeowners policy...? Personal property within the house The house itself Liability All of the above
Caveat Emptor
When a buyer is required to examine the property and buy at his/her own risk, it is referred to as...? Caveat Emptor Indemnification Fraud Calculated Risk
Cost of Labor
Which of the following affects supply...? Employment Cost of labor Population All of the above
Continuing Education Courses
Which of the following courses are taken after you obtain your real estate license...? Continuing education courses Pre-licensing courses Real Estate Practice courses Real Estate Principles courses
All of the Above
Which of the following factors can impact the value of real estate...? Topography Prevailing winds Proximity to transportation 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
Church
Which of the following is an example of a special purpose property...? Church High-rise office tower Shopping Center Self storage facility
All of the Above
Which of the following is considered a permanent man-made improvement to land...? Fences Sheds Wells All of the above
All of the Above
Which of the following is considered misleading under the Texas Deceptive Trade Practices Act...? Representing that something is new when in fact it is not Advertising a property when the agent has no intention of actually selling the property Making false statements about reasons for a sale 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
Honesty
Which of the following is owed to a customer by an agent...? Honesty Accounting Availability Indemnification
All of the Above
Which of the following is owed to a customer by an agent...? Reasonable care and skill Honesty Disclosure of any known material facts All of the above
All of the Above
Which of the following terms are defined in paragraph 3 of the Residential Buyer/Tenant Representation Agreement...? Acquire Closing Property All of the above
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