CE SHOP RE TEST 1
Which of the following statements is true about specializing in a type of property? Both brokers and sales agents may specialize in one or more types of property. License law requires additional education for sales agents who wish to specialize in one or more types of property. Only brokers may specialize in one or more types of property. Sales agents may specialize, but only in one type of property.
Both brokers and sales agents may specialize in one or more types of property
A home inspector provides a report on a property's structure, systems, and site conditions. To whom is the report provided? Appraiser Buyer Lender Seller
Buyer
Carl is a sales agent who works under the supervision of a broker. Which of the following is true? Carl can be either an employee or an independent contractor. Carl can receive compensation directly from clients. Carl must be an employee. Carl must be an independent contractor.
Carl can be either an employee or an independent contractor
Five competing licensees in the same area agreed to cooperate in setting a standard commission rate for the area. This makes them guilty of a per se antitrust violation. What is a per se antitrust violation? Boycotting One in which no intent needs to be proven to establish a violation has occurred One in which the parties colluded Price fixing
One in which no intent needs to be proven to establish a violation has occurred
If a landlord refuses to rent an apartment to two single women who live together, this is discrimination on the basis of what federally protected class? Familial status Lifestyle Same sex relationship Sex
Sex
Ken signed a contract to purchase Debra's condo. Ken signed the contract two weeks prior to turning 18, which is the age of majority in his state. Debra found out about his age prior to the closing but honored the contract, and they closed on the condo a month after Ken's birthday. What was the status of the contract when Ken and Debra entered into it? Executed Illegal Void Voidable
Voidable
Sylvia, who's 15 years old, and her neighbor Marge, who's 24, agree that Sylvia will babysit Marge's toddler for the summer for $10 an hour. What type of contract is this? Enforceable Unilateral Valid Voidable
Voidable
What is the continuing education requirement for Texas real estate licensees? 12 course hours for each licensed term 18 course hours for each licensed term 24 course hours for each licensed term 30 course hours for each licensed term
18 course hours for each licensed term
TREC will issue a notice of violation to anyone it feels has violated the law by performing a prohibited activity. If an accused violator completely disagrees with TREC, that person has the right to request a hearing within how many days? 10 days 15 days 20 days 30 days
20 days
Prior to receiving his real estate license as a sales agent, Jack must pass the required state exam. What is the minimum passing grade? 65% 70% 75% 80%
70%
Which of the following statements about a Texas broker's office is true? A Texas broker who has more than one place of business in Texas must apply for a branch office license. Each Texas broker may only maintain a single place of business in the state. Texas brokers may not have home offices. Texas brokers may only have branch offices if they maintain a separate primary place of business outside of their home.
A Texas broker who has more than one place of business in Texas must apply for a branch office license
Which of these statements best represents what happens after a federal fair housing complaint is made? A fair housing specialist will review the complaint. An official housing discrimination complaint will be filed, and a fair housing specialist will be assigned to the case. FHEO will contact the alleged perpetrator to gather information. HUD will review the complaint to determine if it's valid.
A fair housing specialist will review the complaint
Which of the following best describes a contract for deed? A legally binding, oral contract between a property buyer and a seller in which the parties agree to swap properties with no money exchanging hands A legally binding, oral contract in which the property buyer pays the seller one lump sum in exchange for the deed to the property A legally binding, written contract between a property buyer and the seller in which the buyer assumes the seller's mortgage payments A legally binding, written contract between a property buyer and the seller that allows the buyer to pay for the property in installments
A legally binding, written contract between a property buyer and the seller that allows the buyer to pay for the property in installments
A homeowner is not able to complete a repair or rebuild after a home is damaged. This is an example of what type of coverage? Actual cash value Claim Deductible Replacement cost
Actual cash value
What's market allocation? Agreeing with a competing firm on how to split a market Deciding to own the market with aggressive marketing strategies Deciding which clients you will work with, and which you won't Partnering with a branch office to dominate a market
Agreeing with a competing firm on how to split the market
This written notice must be provided by the seller of unimproved real property that is to be used for residential purposes to the purchaser of the property, on or before the effective date of a sales contract for the property. Addendum for Unimproved Property Located in a Certified Service Area of a Utility Service Provider Conditions Under Surface Notice of Additional Tax Liability Notice of Obligations Related to Membership in Property Owners' Association
Conditions Under Surface
What's an antitrust violation's central element? Conspiracy Fraud Greed Profit
Conspiracy
Which of the following provides an example of a universal agent? A court-appointed guardian Buyer's agent Listing agent Property manager
Court - appointed guardian
Which acronym can help you to remember the duties a licensee owes to customers? DRHP OIL PAN OLD CAR PROP
DRHP
What type of involuntary lien is placed on a person's estate after their death if there are unpaid debts to creditors? Deceased person's debt lien Estate/ inheritance tax lien Mechanic's lien Real property tax lien
Deceased person's debt lien
Which of the following may an owner place on the land when it's sold to limit the use of the property? Charter Deed restriction Lis pendens Subordination agreement
Deed restriction
Which of the following are deductible expenses for homeowners? Checking and ATM fees Discount points Heating and cooling costs Music library
Discount points
Because of the topography of Elsie's and Lawrence's respective yards, Elsie had to install her fence at the top of a hill, which is actually two feet over Lawrence's property line. What word or phrase best describes Elsie's fence? Easement in gross Encroachment Servient estate Visible easement
Encroachment
Derrick was thrilled to find out that the land he purchased includes several small caves. He's been spelunking for about three years and looks forward to exploring the caves on weekends. Which real property right allows him to do so? Disposition Enjoyment Exclusion Possession
Enjoyment
Which agency prohibits unfair acts, practices, or methods of competition, and enforces federal antitrust and consumer protection laws nationally? Attorney general's office Consumer Reports Federal Trade Commission National Bar Association
Federal Trade Commission
Unhappy with some of the fees a local mortgage company charges her clients, Renee decides to not do business with that company and convinces buyer agents showing her listings to not do business with this company, either. What is this an example of? Group boycotting Market allocation Price fixing Tie-in arrangement
Group boycotting
Select the statement about homeowners insurance policies that is true. Earthquake coverage is included in standard policies. Flooding is covered under standard policies. Homeowners policies are comprised of several types of insurance. The replacement clause is a penalty clause for under-reporting value.
Homeowners policies are comprised of several types of insurance
Prior to the ______, there was no legal protection for women who endured sexual harassment from landlords and sellers when they attempted to obtain housing. Civil Rights Act of 1866 Fair Housing Amendments Act of 1988 Federal Fair Housing Act of 1968 Housing and Community Development Act of 1974
Housing and Community Development Act of 1974
Francis, an associate broker, promised his brother, Fred, who is unlicensed and not an attorney or trustee, that he would pay him a portion of his commission when he closed on the Maple Street transaction. Under what circumstances would this be legal? If Fred were a party to the transaction, and this rebate was paid by Francis's broker If it were a referral fee If it were paid after the fact by Francis If it were paid through Francis' broker
If Fred were a party to the transaction, and this rebate was paid by Francis's broker
Your neighbor hires a middle school student to mow his lawn every two weeks. He draws up a written contract in which he clearly outlines the student's mowing responsibilities and the payment the student will receive in return. Which of the following is true in this situation? Because a minor can't enter into a contract, the student's parents are legally obligated to uphold the student's obligation under the contract. Because a minor can't enter into a contract, this contract is void and the neighbor could be subject to legal action if the authorities were alerted. Because this contract binds the student to an obligation that's legal for a minor to perform (mowing lawns), the contract is valid and enforceable. If the neighbor and the student are content to uphold their agreement, the fact that it's not legally binding doesn't matter.
If the neighbor and the student are content to uphold their agreement, the fact it's not legally binding doesn't matter
Your neighbor hires a middle school student to mow his lawn every two weeks. He draws up a written contract in which he clearly outlines the student's mowing responsibilities and the payment the student will receive in return. Which of the following is true in this situation? Because a minor can't enter into a contract, the student's parents are legally obligated to uphold the student's obligation under the contract. Because a minor can't enter into a contract, this contract is void and the neighbor could be subject to legal action if the authorities were alerted. Because this contract binds the student to an obligation that's legal for a minor to perform (mowing lawns), the contract is valid and enforceable. If the neighbor and the student are content to uphold their agreement, the fact that it's not legally binding doesn't matter.
If the neighbor and the student are content to uphold their agreement, the fact that it's not legally binding doesn't matter
Larry is assisting a buyer who's making an offer on his client's listing. If Larry is too helpful to the buyer, what might occur? A potential bonus from the buyer Implied agency and undisclosed dual agency Implied friendship Undisclosed single agency
Implied agency and undisclosed dual agency
Rhonda and Oliver bought an old schoolhouse with the hope of transforming it into a residence. They owned the property as joint tenants. After Oliver died, how did Rhonda own the building? As a joint tenant with rights of survivorship As a tenant in common with Oliver's heirs In severalty In trust
In severalty
In which of these situations is Ronna's fiduciary duty of reasonable skill and care at odds with her duty of obedience? Jefferson insists that Ronna interpret the implications of him breaching his contract with a buyer. Ronna's buyer client asked her to keep his financial situation confidential. Ted, Ronna's broker, insisted that she teach a contracts class, even though she's a new agent. Though her customer was adamant, Ronna turned down a commercial listing because it was outside her area of expertise.
Jefferson insists that Ronna interpret the implications of him breaching his contract with a buyer
Kevin listed his house with you but isn't offering a cooperating agent's commission. Ji-eun represents the buyer, Marta, and Marta's parents, Jean and Tom, are paying Ji-eun's commission. On which of these factors is your agency relationship based? Kevin is paying your commission. Kevin owns the property you've listed. Kevin signed a listing agreement with you. Marta's parents are paying the buyer's agent commission.
Kevin signed a listing agreement with you
What must a licensee do when preparing a CMA (or opinion of price) for a consumer? Have an appraiser sign off on the price before it's presented. Hire a home inspector to physically inspect the property. Hire an appraiser to value the property. Make a statement that the opinion isn't an appraisal.
Make a statement that the opinion isn't an appraisal
Jared, a seller, has found his own buyer and wants to terminate his exclusive right-to-sell listing agreement with Sue, his listing broker. May he do so without penalty? No, because listing agreements may not be terminated until they expire. No, because sellers may not sell their own listings. No, because the listing agreement is contractually binding. No, because this would be a conflict of interest.
No, because this would be a conflict of interest
Ginnie allowed her real estate license to expire in the past six months, because she was uncertain if she wanted to continue as a real estate professional in Texas. She has recently decided that she does not want to give up on her dream of building a real estate empire. She has come to terms with having to retake the state exam, but is worried about taking the 180-hour pre-licensing course again. Will she be required to retake her pre-licensing courses? No. TREC trusts that Ginnie will remember everything she learned the first time. Perhaps. If Ginnie cannot pay the $5,000 fine for allowing her license to expire, she must take the pre-licensing courses again. Perhaps. This is only necessary if the required hours have changed. Yes. Ginnie waited too long to make her decision. She'll have to repeat the course.
Perhaps. This is only necessary if the required hours have changed
Jacob is a developer who purchased 78 acres and had it subdivided into half-acre lots. He decided to install sewer and underground electric for the entire subdivision, because he thinks that he will easily recoup his initial infrastructure investment. This is an example of which economic characteristic of real property? Area preference Improvements Permanence Scarcity
Permanence
Which type of power gives the government the authority to do what's right for the public good and the owner may or may not be compensated? Eminent domain Escheat Police power Taxation
Police power
According to the Department of Justice, an agreement between competitors to establish or adhere to uniform price discounts is a type of which antitrust violation? Group boycotting Market allocation Price fixing Tie-in arrangement
Price fixing
According to the U.S. Department of Justice, which type of antitrust violation is an agreement between competitors to set contract terms for a certain length of time? Group boycotting Market allocation Price fixing Tie-in arrangement
Price fixing
Who owns the dry sandy part of the beach that extends from the "wet beach" to the line of vegetation on the shore? Property owners The DNR The public The state of Texas
Property Owners
Jackson is a broker who specializes in high-rise apartment buildings in metro areas. What types of properties are these? Commercial Industrial Residential Special purpose
Residential
Sam is an independent contractor licensee working for B & L Realty. Since Sam is an independent contractor, what supervisory responsibility does Sam's broker have? Sam is considered an employee for licensing law purposes, but he's still an independent contractor for IRS purposes. Sam may elect whether or not to accept supervisory action from his broker. The IRS makes an exception for licensed independent contractors and allows Sam's supervisor to supervise Sam as he would any other employee. To maintain Sam's independent contractor status, the broker is prohibited from supervising Sam.
Sam is considered an employee for licensing law purposes, but he's still an independent contractor for IRS purposes
When members of the Education Standards Advisory Committee are appointed, how many years do they serve? Five Six Three Two
Two
Baylee's sales agent application is rejected by TREC. She receives a written notice about the rejection, but believes they've rejected her application unfairly. What recourse does she have, if any? She can attend the next TREC meeting and dispute it at that time. She can file a notice for a hearing within 30 days. She can file a request for a mediator, who will mediate a meeting between her and the executive director of TREC. She has no recourse, because all TREC decisions are final.
She can file a notice for a hearing within 30 days
Jameson is the on-site manager of an apartment property in Texas. Which of the following statements is true of her situation? She isn't required to have a real estate certificate or license. She must hold a real estate broker license. She must hold a real estate certificate of registration. She must hold a real estate sales agent license.
She isn't required to have a real estate certificate or license
Before using a showing service to automate the scheduling and showing of the property to prospective buyers, the listing agent must have the sellers review and sign the ______ form. Keybox Authorization by Tenant MLS Profile Sheet Seller's Authorization to Release and Advertise Certain Information Showing Service Information
Showing Service Information
Lewis and Elliot started a real estate investment business together. After much discussion with their attorney, they decided to incorporate, but in such a way that they are treated like a partnership and don't have to pay corporate taxes. What form of business do they have? Double proprietorship Limited liability partnership Subchapter C corporation Subchapter S corporation
Subchapter S Corporation
Calvin is talking with his study group about their upcoming licensing exam. They are discussing how far in advance they need to make a reservation. Which member of the group is correct in their understanding? Hadley, who says they need to make their reservation 48 hours in advance. Joe, who says they need to make their reservation 30 days in advance. Rosa Lynn, who says that walk-ins are allowed if they arrive 45 minutes prior to the exam start time. Sylvia, who says they need to make their reservation 24 hours in advance.
Sylvia, who says they need to make their reservation 24 hours in advance
How does the Office of Fair Housing and Equal Opportunity (FHEO) support real estate consumers? The FHEO conducts investigations and holds hearings for fair housing violations. The FHEO conducts regular audits of licensee advertising activities for fair housing violations. The FHEO provides financing education for future homeowners. The FHEO provides support for protected classes through the fair housing complaint process.
The FHEO provides support for protected classes through the fair housing complaint process
You are the Texas agent for the buyers, the Jansens. The Yothers are the sellers, and their mortgage holder is Richard Steele. To which of these parties must you disclose your agency status? All parties to the transaction, including your clients Richard Steele only The Jansens only The Yothers only
The Yothers only
In Texas, a real estate licensee doesn't have to have any additional licenses to sell manufactured homes as long as _________________. The licensee informs the chief tax appraiser The licensee informs the Texas Department of Housing and Community Affairs The licensee is a broker The licensee negotiates for the consumer while acting as the consumer's broker or sales agent
The licensee negotiates for the consumer while acting as the consumer's broker or sales agent
Which of the following is a legitimate and legal way that an exclusive right-to-sell listing agreement may terminate without the seller owing a commission? The listing agent stops working on the listing. The seller decides to sell the property without an agent. The seller has a change of heart. The seller locates a buyer.
The listing agent stops working on the listing
Within the tax sale process, which of the following occurs? A private sale is offered first to the owners of the nearest 20 properties. Afterward, the property is open to the general public. Prospective purchasers attend a group inspection to be scheduled one week prior to the tax sale. The property owner still has the right to redeem the property before the tax sale by paying delinquent taxes and penalty owed. The property owner waives the equitable right of redemption.
The property owner still has the right to redeem the property before the tax sale by paying delinquent taxes and penalty owed.
When Edmund died, he left several properties to his heirs. He owned a grocery store and a campground outright, and a strip mall that was held in a living trust. Which of the properties, if any, did NOT have to go through the probate process after his death? The campground The grocery store The strip mall They all had to go through probate.
The strip mall
Under the Texas anti-spam law, businesses have ______ days to remove a consumer's email address from their mailing list. Five Four Three Two
Three
Vicky and Lee vacation in Cancun, Mexico, every year. They purchased the right to stay in a beach condo for the first two weeks in May, and their agreement continues for the next 10 years. They don't actually own the unit. What did they purchase? Condo estate Cooperative unit Timeshare estate Timeshare use
Timeshare Use
What's the relationship between townships and sections in the rectangular government survey system? Sections are divided into townships. Townships and sections are opposites. Townships and sections are synonyms. Townships are divided into sections.
Townships are divided into sections
What's the best definition of legal purpose? Attorney consideration Mentally capable of entering into a contract Written for a lawful objective Written for an illegal purpose
Written for a lawful objective
Which of the following is true about property taxes? In the event of a tax sale, property taxes are paid only if there's money left after paying off other creditors. Only delinquent property taxes create liens. Unpaid property taxes don't create liens. You may have a property tax lien on your property right now.
You may have a property tax lien on your property right now
