Module 1 Questions ch 1-6
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
How many points must an applicant earn in order to obtain their real estate broker's license...?
3600
The qualifying Real Estate Principles course consists of how many classroom hours in total...?
60
The replacement cost minus depreciation is referred to as...?
Actual cash value
A contract in which a property owner employs a real estate broker to market the property described in the contract is known as the...
Agency Disclosure Contract
An agency relationship may be terminated by which of the following...?
All of the above
Which of the following is a tax deduction a homeowner can take advantage of...?
All of the above
Which of the following is considered a legal test for determining if an item is a fixture or not...?
All of the above
A buyer's earnest money should be deposited in which of the following...?
An escrow account
The fiduciary duty of care when representing a buyer includes which of the following services...?
Assisting with counter offers
The transfer of personal property is typically done using a...?
Bill of Sale
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 'C' in the acronym C.O.A.L.D. stands for which fiduciary duty...?
Care
Properties with five or more dwelling units are considered...?
Commercial Property
The Texas Deceptive Trade Practices Act defines this individual as someone who seeks, or acquires, by purchase or lease, any goods or services...?
Consumer
Which of the following is NOT a form of real property...?
Cooperative
Which of the following affects supply...?
Cost of labor
A broker will work for a client and with a...?
Customer
The party the agent brings to the principal as seller or buyer of the property is known as the...?
Customer
Which of the following is a fiduciary duty owed by an agent to their client...?
Disclosure
Price is typically equal to the cost of the property...?
False
An insurance policy protecting against a variety of hazards is referred to as a...?
Homeowners Policy
Which of the following is owed to a customer by an agent...?
Honesty
Agency that exists as a result of actions of the parties is known as...?
Implied Agency
If a real estate salesperson terminates their employment with their sponsoring broker, the salesperson's license is considered what...?
Inactive
A broker must always place his/her client's interests above their own. This is an example of what fiduciary duty...?
Loyalty
Who is responsible for selling newly constructed mobile homes...?
Manufactured home dealerships
All property that is not land and is not permanently attached to land is known as...?
Personal Property
Owners of a cooperative apartment hold which of the following...?
Proprietary lease
Land and everything permanently attached to land is defined as...?
Real Estate
An agent with limited authority to act on behalf of the principal is referred to as a...?
Special Agent
The real estate agent in a transaction is considered a ............ to his/her broker?
Sub-agent
The amount of goods offered for sale within a given market at a given price during a given time period is known as...
Supply
The sale of the property results in the ............................ of the agency relationship?
Termination
This Act established the real estate licensing requirements in Texas in 1939...?
Texas Real Estate Dealers Act
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
Items that are installed by a commercial tenant and are removable upon termination of the tenancy are known as...?
Trade Fixtures
A broker as a fiduciary owes certain loyalty, which cannot be breached under the rules of agency...?
True
Real estate agents and brokers must be careful not to provide legal advice to their clients...?
True
According to the Texas Deceptive Trade Practices Act, businesses with assets exceeding .............. are not considered consumers?
$25,000,000
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...?
$500,000
In order to obtain a real estate license, an applicant must be at least how many years of age...?
18
Real estate licenses are issued for a period not to exceed how many years...?
2
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...?
Agent
The rights in real property to the reasonable use of the air space above the surface of the land is known as...?
Air Rights
A mortgage payment typically includes...?
All of the above
As a seller's agent in a transaction, the agent is required to do which of the following...?
All of the above
The general uses of real property include which of the following...?
All of the above
The pre-licensing courses needed to obtain your real estate license are considered what type of courses...?
All of the above
What is typically covered in a homeowners policy...?
All of the above
Which of the following factors can impact the value of real estate...?
All of the above
Which of the following is considered a permanent man-made improvement to land...?
All of the above
Which of the following is owed to a customer by an agent...??
All of the above
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
The right of exclusion, which allows a landowner to prevent others from entering or occupying their property, is included in the...?
Bundle of Rights
The profit realized from the sale of real estate or other investment is known as...?
Capital Gains
Which of the following is an example of a special purpose property...?
Church
Property that produces rental income or that is used in business is known as...?
Commercial Property
These real estate brokers specialize in the sale and lease of shopping centers and office buildings...?
Commercial brokerage
The 'C' in the acronym C.I.I.A. stands for...?
Compensation
A local real estate developer bought an abandoned school building with the intention of converting it to residential units. This is an example of a...?
Converted-use property
A form of ownership in which stockholders in a corporation occupy property owned by the corporation under a lease is known as a...?
Cooperative
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...?
Cost Approach
This refers to the party the agent brings to the principal as seller or buyer of the property...?
Customer
This Act protects consumers against false, misleading, or deceptive acts...?
Deceptive Trade Practices Act
Improvements typically ............ in value?
Depreciate
A broker must inform their clients of all known facts related to a transaction. This is an example of what fiduciary duty...?
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...?
Disclosure
Tax benefits for homeowners are provided in part to...?
Encourage homeownership
Real estate agents cannot be held liable for any false or misleading information about a property...?
False
Value is the same as price...?
False
A person in a position of trust and confidence, as between principal and broker, is known as a...?
Fiduciary
The employer of an agent is referred to as the...?
Fiduciary
Changes or additions made to a property, such as walls and roads are known as...?
Fixtures
Most homeowners policies do NOT cover which of the following...?
Flood damage
An agent with full authority over one property of the principal is known as a...?
General Agent
What is the most common homeowners policy found in Texas...?
HOB
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...?
Income Approach
This reimbursement or compensation paid to someone for a loss already suffered is known as...?
Indemnification
According to this responsibility, the seller must always provide any known material facts about the property...?
Information
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
Which of the following courses are taken after you obtain your real estate license...?
Pre-licensing courses
Government held properties include which of the following...?
Public parks
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...?
Puffing
The surface of the earth, the area above and below the surface, and everything permanently attached thereto is known as...?
Real Estate
Trees and shrubbery that are not cultivated annually are considered...?
Real property
The market comparison approach is commonly used for this property type...?
Residential
A type of property that includes one to four dwelling units is known as...?
Residential Property
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
The listing agreement is a contract between the real estate broker and the...?
Seller
The seller is required to provide buyers with which of the following documents...?
Seller's Disclosure Notice
A cooperative owner owns ......................... in the cooperative?
Shares of stock
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...?
T (True)
Who holds the real estate license of an agent...?
The agent's sponsoring broker
A licensee's license may be suspended or revoked if which of the following occurs...?
The licensee is convicted of a felony
For tax purposes, real estate taxes can be deducted from personal income...?
True
Modular homes can typically be built quicker and at a lower cost as compared to homes constructed on-site...?
True
Property inspections must be licensed by the Texas Real Estate Commission...?
True
Real estate prices are directly related to supply and demand...?
True
The present worth of future benefits is referred to as...?
Value