121 PREI 1

What are the tests of a fixture?

1. Method of annexation 2. Fitness or adaptation to the property 3. Intention of the parties

The ESAC Committee is made up of ________members.

12

What year was The Education Standard Advisory Committee enacted?

2011

_________ members make a quorum for the ESAC Committee.

7

How many members make up the Texas Real Estate Commission?

9 members—6 are brokers and 3 are members of the public

What is a CLUE® report?

A CLUE® report is a history of all the insurance claims made on a property.

What is considered to be a fixture?

A fixture is something that was personal property and has now become real estate because it has been attached to the land. An example of a fixture could be a ceiling fan, a window awning, or a water heater.

Who does not need a real estate license?

A person who buys, sells, leases, rents, or manages his own property does not have to have a license.

The Education Standard Advisory Committee was enacted in: A. 2011 B. 2016 C. 1949 D. 1939

A. 2011

Formal valuation of a property is done by: A. An appraiser B. A licensee C. Only by the broker doing a BPO D. A sales agent doing a CMA

A. An appraiser

What is a "CLUE®" report? A. It is a report of all insurance claims made on a property. B. It is a way for the appraiser to make an accurate valuation of the property. C. It is an acronym for Client Loan Underwriting Evaluation. D. It is the term used to convey title to the new owner.

A. It is a report of all insurance claims made on a property.

If the property is in a flood zone, flood insurance will be required by the: A. Lender B. State C. Seller D. City

A. Lender

What is the purpose of the Texas Real Estate Commission? A. To protect the public from dishonest and incompetent real estate agents B. To control the Texas Association of Realtors® C. To refer agents to the public D. To control the price of properties in Texas

A. To protect the public from dishonest and incompetent real estate agents

A CLUE® report is a history of all insurance claims made on a property. A. True B. False

A. True

Equity buildup is one of the advantages of home ownership. A. True B. False

A. True

Generally, repairs and improvements cannot be deducted. A. True B. False

A. True

Most homeowner insurance policies are comprehensive policies that cover the dwelling, personal property, and detached structures on the property. A. True B. False

A. True

The largest tax benefit of home ownership is the interest deduction on the mortgage. A. True B. False

A. True

The lender is going to require insurance on the property if there is a loan on the property. A. True B. False

A. True

The mortgage note sets out the term of the transaction, the amount of the debt, the rate of interest, and the mortgage due date. A. True B. False

A. True

Can mortgage interest be deducted on an owner's federal tax return? A. Yes B. No

A. Yes

When you own land you own subsurface, surface and ____________ rights.

Air

Agents called ___________ specialize in finding apartments for tenants to lease.

Apartment Locators

If you were interested in learning how to professionally value property, you may want to consider becoming a(n) ____________________.

Appraiser

Easements, right-of-way, and condominium parking stalls are examples of what?

Appurtenances

The amount of capital gain exclusion on a residence for a single person is _____________. A. $500,000 B. $250,000 C. $100,000 D. There are no capital gains exclusion for single persons.

B. $250,000

Who does not need a license? A. A person who offers to lease real estate for compensation B. A person who offers to sell her own property C. A person who offers to exchange real estate for compensation D. An apartment finder for compensation

B. A person who offers to sell her own property

An area where a large body of water meets land is called: A. Surface land B. Coastal zone C. Riparian area D. There is no term for this.

B. Coastal zone

Which of the following are not classified as real property? A. Fixtures B. Emblements C. Shrubs planted in the ground D. Air rights

B. Emblements

If someone has lived in a home for 10 of the last 15 years, they do not have to pay tax on $50,000 of profit. A. True B. False

B. False

The fixed rate mortgage has a typical term of 18 years. A. True B. False

B. False

The highest possible type of ownership is a life estate. A. True B. False

B. False

Are mortgage brokers regulated by the Texas Real Estate Commission? A. Yes B. No

B. No

Apple trees, strawberry plants, kiwi fruit, and grapes are all examples of: A. Trees B. Perennial plants C. Tomatoes D. Annual plants

B. Perennial plants

State laws are also called ____________________. A. Rules B. Statutes C. Constitutional law D. Common laws

B. Statutes

How long does an owner have to stay in a property to take the capital gain exclusion? A. One year B. Two years C. Five years D. Ten years

B. Two years

The tool used to enforce zoning ordinances is: A. Improvements B. Zoning Permits C. Zoning Codes D. Plants

B. Zoning Permits

Who usually manages a condo and is responsible for making sure the property is well maintained? A. The condo owner B. The city C. A homeowners association (HOA) D. The building manager

C. A homeowners association (HOA)

Land includes: A. Surface rights B. Air rights C. Both A and B D. None of the above

C. Both A and B

The information contained in the Comprehensive Loss Underwriting Exchange is reported by: A. Homeowners B. Real estate agents C. Insurance companies D. Buyers

C. Insurance companies

_________________ is the process of taking private land for public use.

CONDEMNATION

What is an area where a large body of water meets land?

Coastal Zones

What are the requirements to apply to become a broker?

Complete 270-hours of approved pre-licensing education. Successfully complete 270 clock hours of approved Pre-Licensing Affiliate Broker courses. ... Pass the course final exams. ... Meet the Experience Requirements. ... Complete your license application. ... Provide fingerprints. ... Pass the Texas Real Estate Broker Licensing Exam.

Who manages condos?

Condominiums are usually managed by a "homeowner" or "owners'" association (HOA), which is responsible for making sure the property is well maintained. The association also has the power to make assessments, that is, charge the condominium owners fees to maintain the property.

Many homeowners' insurance policies can also cover: A. Personal liability B. Loss of Use C. Medical payments D. All of the above

D. All of the above

Most homeowner's policies cover: A. The dwelling B. Personal property in the dwelling C. Other structures on the property D. All of the above

D. All of the above

Which of the following is an area of real estate law? A. Water rights B. Fair Housing C. Deeds of trust D. All of the above

D. All of the above

Easements, rights-of-way, and condominium parking stalls are examples of: A. Emblements B. Trade fixtures C. Riparian rights D. Appurtenances

D. Appurtenances

Professions that require a real estate license are: A. Apartment locating, residential brokerage B. Farm brokerage, commercial property manager C. Inspector, appraiser D. Both A and B

D. Both A and B

Cars, boats, furniture, books, and clothing are: A. Liabilities B. Sold with a deed C. Real estate D. Chattel

D. Chattel

The owner of the subsurface estate (mineral rights) is the: A. Servient estate B. Zoning estate C. Variance D. Dominant estate

D. Dominant estate

Which of the following is NOT a unique characteristic of the real estate market? A. Long-term delays B. Improvements on the land C. Durability D. Homogeneity

D. Homogeneity

The term "REALTOR®" applies to any: A. Licensed real estate salesperson B. Licensed real estate broker C. Member of a state real estate commission D. Member of the National Association of REALTORS®

D. Member of the National Association of REALTORS®

All of the following are regulated by TREC EXCEPT: A. Title companies B. Appraisal C. Inspection D. Real estate brokerage

D. Real estate brokerage

All of the following are participants in the "market" EXCEPT: A. Owner B. Renter C. Developer D. TREC

D. TREC

Which of the following would be considered as a fixture because of the manner of its attachment to the property? A. A fireplace grate B. A set of fire tools for a fireplace C. Entry area rug D. Water heater

D. Water heater

Land is sold using the document called a ________________.

Deed

What else can some homeowners' insurance policies cover?

Dwelling pays if your house is damaged or destroyed by a covered loss. Personal property pays if the items in your house (such as furniture, clothing, and appliances) are damaged, stolen, or destroyed. Other structures pays to repair or rebuild structures not attached to your house, such as detached garages, storage sheds, and fences. Loss of use pays your additional living expenses (housing, food, and other essential expenses) if you must temporarily move because of damage to your house from a covered loss. Your policy will pay either a percentage of the amount of your dwelling coverage (typically 10 to 20 percent) or for a speci c period after the loss (such as 24 months). Personal liability pays to defend you in court against lawsuits and provides coverage if you are found legally responsible for someone else's injury or property damage. Medical payments pays the medical bills of people hurt on your property. It might also pay for some injuries that happen away from your home, such as your dog biting someone at the park. A basic homeowner's policy pays $500 in medical bills, but you may buy up to $5,000 in medical payments coverage.

What do most homeowners' policies cover?

Dwelling, loss of use, personal property, personal liability, other structures, medical payments

_________________ is the right of the government to take private land for public use.

EMINENT DOMAIN

A(n) ______________ is something that once was personal property and now has become real estate

FIXTURES

A homeowner needs a license to sell his personal real estate. A. True B. False

False

An apartment manager who manages for a sole owner needs a real estate license to practice real estate. A. True B. False

False

Most licensed agents practice commercial real estate. A. True B. False

False

TREC regulates mortgage brokers. A. True B. False

False

The Texas Real Estate Commission does not license real estate schools. A. True B. False

False

What are the physical characteristics of land?

Heterogeneity, Durability, Immobility

Who requires flood insurance?

If your property is in a flood plain, your lender will require you to have flood insurance. The insurance can be purchased from NFIP or from local insurance agents. Homeowner policies do not cover flood damage. You will need flood insurance to cover flooding.

Houses, highways, and office buildings are considered _______________.

Improvements

Who does the term "REALTOR® " apply to?

Members of National Association of REALTORS

___________ is the largest professional association in the world.

NAR

Does the Texas Real Estate Commission regulate mortgage brokers?

No

Who are participants in the "market"?

Owner/user, Owner, Renter, Developers, Renovators, Facilitators

One participant in the real estate market is a(n) _______________.

Owner/user, owner, renter, developer, renovator, facilitator

_________________ plants may live only a few years or many years and are considered real estate.

Perennial

What is not classified as real property?

Personal Property, Trade Fixture

Real property and ___________________ are used interchangeably and refer to land, improvements, and the rights to own them.

Real Estate

What does the Texas Real Estate Commission regulate?

Real Estate Brokers and Sales Agents Real Estate Inspectors Education Providers for Real Estate and Inspection Courses Residential Service Companies Timeshare Developers Easement or Right-of-Way (ERW) agents

1. Most real estate agents go into _______________ real estate.

Residential

Which professions require a real estate license?

Residential Brokerage,Commercial Brokerage,Industrial and Office Brokerage,Farm and Land Brokerage,Property Management,Apartment Locators

The two levels of licensure are the _________ license and the _______ license.

Salesperson's, broker's

When doing a CMA, the best comparables to use are ________ comparables.

Sold

All members of the ESAC Committee are appointed by ____________.

TREC

Of the following, which statement is NOT true about the Education Standard Advisory Committee (ESAC)? A. All members are appointed by The Texas Real Estate Commission. B. The committee was created by amendments to TRELA under Senate Bill 747. C. The committee reviews and revises curriculum standards. D. The committee has a total of seven members.

The committee has a total of seven members.

Who reports the information contained in the Comprehensive Loss Underwriting Exchange?

The information is reported by the insurance companies, but an insurance company is only allowed to report information if someone led a claim.

What can be deducted on an owner's federal tax return?

The largest tax benefit of the home is the interest on the mortgage. All of the mortgage interest on a primary residence can be deducted on the owner's Federal Tax Return. In the first 10 years of the amortized mortgage, about 90% of the monthly principal and interest payment goes to pay interest. This can amount to a large deduction on the owner's income tax and create a lower tax bill. In most cases, property taxes can also be deducted on a tax return.

A sales agent needs a license to sell real estate. A. True B. False

True

Durability is a characteristic of the real estate market. A. True B. False

True

The National Association of REALTORS® requires all licensees to sign a pledge to uphold the Code of Ethics. A. True B. False

True

The relationship between supply and demand is a fundamental concept of economics. A. True B. False

True

_____________ is a land use that conflicts with current zoning but is authorized for certain reasons, including undue hardship to comply and minimal negative impact to leave it alone.

Variance

What are the amounts of capital gain?

When an owner sells their home, they can use the capital gain exclusion and not have to pay income tax on up to $500,000 in profit if they have lived in the home 2 of the past 5 years and are married. The exclusion is $250,000 for a single person.

What are the requirements to take the capital gain exclusion on a property?

When an owner sells their home, they can use the capital gain exclusion and not have to pay income tax on up to $500,000 in profit if they have lived in the home 2 of the past 5 years and are married. The exclusion is $250,000 for a single person.

Personal property is sold with a __________________.

bill of sale

Personal property is also called ________________________.

chattel

Perennial plants are called ____________________ and are part of the land.

fructus naturales

____________________ refer to personal property that cannot be moved, touched or felt but represents something of value.

intangibles

Who does the formal valuation of a property?

real estate appraiser

What is another term for state laws?

statutes

Citizens use a _______ to enforce, manage and modify zoning ordinances

zoning hearing board