Practice Exam 1

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What is the maximum amount that the Commission will pay from the real estate recovery trust account for claims against any one license holder, until the account has been repaid in full by the license holder? A) $100,000 B) $150,000 C) $30,000 D) $50,000

A) $100,000 The answer is $100,000. Payments from the recovery trust account are subject to the following conditions: (1) they may only be made pursuant to an order of a court of competent jurisdiction; (2) payments for claims arising out of one transaction are limited in the aggregate to $50,000, regardless of the number of claimants; (3) payments for claims against any one license holder may not exceed in the aggregate $100,000, until the account has been reimbursed by the license holder for all amounts paid.

Which family is NOT protected under the familial status provisions of the Fair Housing Act? A) A 55-year-old father, 40-year-old mother, and 17-year-old son who want to purchase a home in an age-restricted adults-only community B) A 23-year-old single father who has custody of a 3-year-old son and wants to rent a home C) All of these are protected classes D) An 18-year-old pregnant female who wants to rent an apartment

A) A 55-year-old father, 40-year-old mother, and 17-year-old son who want to purchase a home in an age-restricted adults-only community The answer is a 55-year-old father, 40-year-old mother, and 17-year-old son who want to purchase a home in an age-restricted adults-only community. Familial status has been defined as one or more individuals (under age 18) living with a parent or legal guardian or the designee of such parent or guardian. It also includes a woman who is pregnant and someone who is in the process of securing legal custody of a child under age 18. Housing occupied solely by persons age 62 or housing that requires at least 80% of its units to be occupied by at least one person age 55 or older does not have to comply with familial status provisions of fair housing laws.

Which law prohibits all discrimination based on race in any real estate transaction without exception? A) Civil Rights Act of 1866 B) Civil Rights Act of 1964 C) Federal Fair Housing Act of 1968 D) Americans with Disabilities Act of 1990

A) Civil Rights Act of 1866 The answer is Civil Rights Act of 1866. The Civil Rights Act of 1964 prohibits discrimination based on race, color, religion, or national origin in housing that receives federal funding. The Fair Housing Act of 1968 extended fair housing laws to cover the majority of housing in the country. With its amendments, it prohibits discrimination in residential housing based on color, race, national origin, religion, gender, familial status, and disability. The Americans with Disabilities Act of 1990 protects the employment and accessibility rights of people with disabilities.

What type of estate is complete ownership and exists for an unlimited time? A) Fee simple B) Life C) Defeasible fee estate D) Legal life

A) Fee simple The answer is fee simple. This is the highest form of ownership interest recognized by law. The fee simple estate exists for an unlimited time and is complete ownership.

If the court learns that the seller placed a sign that said "Not Included" on the stove every time a buyer looked at the property, the court will consider which of the following in determining whether the stove is a fixture, absent a written agreement? A) Intention of the parties B) Method of attachment C) Adaptation of the item D) Value of the stove

A) Intention of the parties The answer is intention of the parties. This seller clearly intended to take the stove when the property sold. The three legal tests of a fixture are based on the intention of the parties, the adaptation of the article to the real estate, and the mode and permanence of annexation.

An aggrieved person who believes illegal discrimination has occurred may file a complaint within what time frame following the alleged discriminatory act? A) One year B) Four years C) 18 months D) 6 months

A) One year The answer is one year. If filed with HUD, the complaint will be referred to the Texas Workforce Commission Civil Rights Division (TWCCRD) because Texas has a HUD-approved "substantially equivalent" fair housing law that allows complaints to be heard at the state level rather than at the federal level. The TWCCRD has 100 days to investigate the complaint. If no conciliation agreement is reached, the TWCCRD must dismiss the complaint or file charges.

Which of the following is NOT included in the bundle of legal rights regarding real property? A) Right of first refusal B) Right of disposition C) Right to control D) Right of exclusion

A) Right of first refusal The answer is right of first refusal. The bundle of legal rights includes the right to control the property within the framework of the law, the right of exclusion, the right of possession, the right of disposition, and the right of enjoyment. Within these ownership rights are included further rights: to mortgage or encumber, lease or license, cultivate or mine, will, dedicate or give away, share, trade, or exchange.

A license holder must use the earnest money contract forms promulgated by the Commission unless A) an attorney prepares the forms and the property owner requires their use. B) one of the parties is a relocation company. C) the forms do not fit the circumstances of the transaction. D) the agent receives special permission from the Texas Real Estate Commission (TREC).

A) an attorney prepares the forms and the property owner requires their use. The answer is an attorney prepares the forms and the property owner requires their use. There are four exceptions to the requirement for using promulgated contract forms: Transactions in which the license holder is functioning solely as a principal, not as an agent Transactions in which an agency of the U.S. government requires a different form to be used Transactions for which a contract form has been prepared by the property owner or prepared by an attorney and required by the property owner Transactions for which no standard contract form has been promulgated by TREC, and the license holder uses a form prepared by a Texas attorney and approved by the attorney for that use and that also contains specific disclosures required by Rule 537.11(a) or prepared by the Broker-Lawyer Committee and made available for trial use

A real estate agent tells a seller during a listing presentation that the firm's real estate commission is in line with those of other real estate firms in the area. The broker may A) be guilty of price-fixing. B) be guilty of allocating customers or markets. C) be guilty of boycotting competitors. D) legally make this statement without concern for antitrust laws, if it is true.

A) be guilty of price-fixing. The answer is be guilty of price-fixing. Antitrust laws prohibit monopolies and contracts, combinations, and conspiracies that unreasonably restrain trade. Brokers must independently determine commission rates or fees for their own firms. Hinting in any way to prospective clients that there is a "going rate" of commission or fee implies that rates are in fact standardized. A broker must clarify to clients that the rate stated is only what that firm charges.

Courses for the renewal of an active real estate broker or sales agent license are called A) continuing education (CE). B) license renewal classes (LRC). C) broker licensing education (BLE). D) license coursework (LC).

A) continuing education (CE) The answer is continuing education (CE). To renew an active real estate broker or sales agent license, the license holder must provide the Texas Real Estate Commission proof of attending at least 18 classroom hours of continuing education approved by the Commission during the term of the current license.

The right of defaulted taxpayers to recover their property before its sale for unpaid taxes is the A) equitable right of redemption. B) statutory right of reinstatement. C) equitable right of appeal. D) statutory right of redemption.

A) equitable right of redemption. The answer is equitable right of redemption. Under what is known as an equitable right of redemption, the delinquent taxpayer can redeem the property at any time prior to the tax sale by paying the delinquent taxes plus interest and charges. The statutory right of redemption would permit an owner to redeem the property after the tax sale.

Before people can act in the capacity of or represent themselves as real estate brokers, they must first A) obtain a license from the Texas Real Estate Commission. B) obtain a license from the Texas Securities Commission. C) register with the Texas Real Estate Commission. D) obtain an office in an area zoned commercial.

A) obtain a license from the Texas Real Estate Commission. The answer is obtain a license from the Texas Real Estate Commission. According to Sec. 1101.351, "unless a person hold a license... the person may not act as or represent that the person is a broker or sales agent."

Misleading or deceptive practices according to the Deceptive Trade Practices Act (DTPA) include all of the following EXCEPT A) stating that a property is being sold "as is." B) misrepresenting the authority of an agent to negotiate the final terms of a sales contract. C) advertising a property with no intention of selling the property as advertised. D) making false statements of fact concerning the reasons for a price reduction.

A) stating that a property is being sold "as is." The answer is stating that a property is being sold "as is." The DTPA makes unlawful the "false, misleading or deceptive acts or practices" in the advertising, offering for sale, selling, or leasing of any real or personal property. Stating that a property is being sold "as is" does not constitute a deceptive act or practice unless there is a failure on the part of the agent to disclose information concerning the property that was known at the time of the transaction if such failure to disclose was intended to induce the consumer into a transaction that the consumer would otherwise not have entered into had the information been disclosed.

An urban homestead is limited to a lot or lots NOT to exceed how many acres? A) 1 B) 10 C) 5 D) 3

B) 10 The answer is 10. An urban homestead is limited to a lot or lots not to exceed 10 acres and may contain a home and a place of business for the head of the family or for the single householder. A rural homestead is limited to 200 acres for a family and 100 acres for a single person. The designated acreage must include the owner's home. In Texas, a homestead may be either urban or rural (but not both).

An acre consists of how many square feet? A) 43,650 B) 43,560 C) 43,500 D) 43,600

B) 43,560 The answer is 43,560. An acre consists of 43,560 square feet of land.

What is a section of land? A) 540 acres B) 640 acres C) 650 acres D) 600 acres

B) 640 acres The answer is 640 acres. Sections are measurements used in Texas rural land descriptions. A section equals one square mile or 640 acres, more or less, and can be divided into quarter-sections (160 acres), quarter of quarter-sections (40 acres), and so on.

Which would NOT be considered a violation of antitrust laws? A) Salespeople Joe and Emma Marie, working on behalf of two local firms, agree that Joe should seek listings only from the east side of town and Emma Marie should seek listings only from the west side of town. B) Brokers throughout the city set their commission rates unilaterally without consulting with competitors. C) A local association of apartment managers decides to charge a set rate for management services. D) Brokers representing the Temple, ABC, and All-American Property Management companies decide to deescalate their current price war by charging more uniform rates.

B) Brokers throughout the city set their commission rates unilaterally without consulting with competitors. The answer is brokers throughout the city set their commission rates unilaterally without consulting with competitors. Federal and state antitrust laws prohibit monopolies and contracts, combinations, and conspiracies that unreasonably restrain trade. The most common antitrust violations that occur in the real estate business are price-fixing, boycotting competitors, and allocating customers or markets.

Which aspect of the Canons of Professional Ethics and Conduct requires the broker or sales agent to be informed on market conditions and national, state, and local developments affecting the real estate business? A) Honesty B) Competency C) Fidelity D) Integrity

B) Competency The answer is competency. The Texas Real Estate Commission has adopted the Canons of Professional Ethics as a part of its real estate license law to establish a basis for professional conduct of licensed real estate brokers and salespeople. Each applicant for such a license must pledge compliance with these canons: fidelity, integrity, and competency.

Which of the following terms refers not only to the surface of the earth but also below to the center of the earth, above to infinity, and natural things permanently attached but does NOT refer to artificial things permanently attached? A) Real estate B) Land C) Real property D) Property

B) Land The answer is land. Land includes such things as the minerals below the surface, natural vegetation, and the space above the surface. An owner's right to use the surface is called surface rights, below the surface is called subsurface rights, and above the land is called air rights.

Which of the following may be a natural object, such as a tree or a boulder, or an artificial object, such as a steel rod or a stake driven into the ground? A) Benchmark B) Monument C) None of these D) Vara

B) Monument The answer is monument. A monument is a fixed object used in a metes-and-bounds legal description to establish boundaries and designate corners or points at which directions change. It may be natural, such as an oak tree or a large boulder, or artificial, made of stone or concrete, or a steel rod or stake driven into the ground. Monuments establish boundaries, corners, or points where directions change.

Which equals one square mile or 640 acres? A) Chain B) Section C) Mile D) Township

B) Section The answer is section. Sections can be further divided into halves and quarters.

Which is owned by the tenant? A) Fixture B) Trade fixture C) None of these D) Trade article

B) Trade fixture The answer is trade fixture. A trade fixture is an article attached by a tenant to a building for use in conducting a trade or business. One example of a trade fixture is a display counter. A trade fixture is the personal property of the tenant and can be removed by the tenant on or before the expiration of the lease. A fixture, such as a built-in kitchen cabinet, when permanently attached to a building, becomes part of the real property and cannot be removed when the owner sells the property.

Randy has constructed a fence that extends 1 foot over his lot line onto the property of a neighbor. The fence is an example of A) an easement by prescription. B) an encroachment. C) an easement by necessity. D) a license.

B) an encroachment. The answer is an encroachment. An encroachment occurs when some portion of a building, fence, or driveway illegally extends beyond the land of its owner and covers some land of an adjoining owner or a street or alley.

Encumbrances on real estate A) must all be removed before the title can be transferred. B) may include liens, easements, and deed restrictions. C) make it impossible to sell the encumbered property. D) cannot affect the transfer of title.

B) may include liens, easements, and deed restrictions. The answer is may include liens, easements, and deed restrictions. An encumbrance on real property (such as a lien, a deed restriction, or an easement) in some way "burdens" an ownership right. While encumbrances may lessen the value or obstruct the use of the property, they do not necessarily prevent a transfer of title.

The federal Fair Housing Act of 1968 A) prohibits discrimination in residential housing based on marital status, age, and dependence on public assistance. B) prohibits discrimination in residential housing based on race, color, national origin, and religion. C) applies solely to the prohibition of discrimination in housing that receives federal funding. D) prohibits racial discrimination in a real estate transaction.

B) prohibits discrimination in residential housing based on race, color, national origin, and religion. The answer is prohibits discrimination in residential housing based on race, color, national origin, and religion. The Civil Rights Act of 1866 prohibits all discrimination based on race in any real estate transaction without exception. The Civil Rights Act of 1964 prohibits discrimination based on race, color, religion, or national origin in housing that receives federal funding. The Fair Housing Act of 1968 prohibits discrimination based on race, color, national origin, and religion, with specific exceptions. Amendments to the Fair Housing Act add gender, familial status, and disability to the protected classes. The Equal Credit Opportunity Act prohibits discrimination in making loans for residential housing based on race, color, religion, national origin, gender, marital status, age, and dependence on public assistance.

The method used to describe real estate by distance, direction, and boundaries is A) the lot-block-tract method. B) the metes-and-bounds method. C) the rectangular survey method. D) the recorded subdivision plat method.

B) the metes-and-bounds method. The answer is metes-and-bounds method. Metes and bounds is the oldest method of developing legal descriptions and is used in approximately 20 states, including Texas. Metes refers to distance and direction and bounds refers to boundaries, such as monuments or landmarks. Metes are not always in feet. Early descriptions used varas, rods, and links.

A sales agent has which agency relationship with the sponsoring broker? A) A universal agency relationship B) No agency relationship C) A general agency relationship D) A special agency relationship

C) A general agency relationship The answer is a general agency relationship. Agency is created at the broker level, not at the sales agent level. A special agency relationship exists between the broker and a seller because the broker is authorized to represent the principal in one specific act or business transaction, under detailed instructions. A general agency relationship exists between the broker and associated sales agents because the sales agents are empowered to represent the principal in a broad range of matters and may bind the principal to contracts.

Which of the following BEST refers to the type of lien that affects all real and personal property of a debtor? A) Statutory lien B) Specific lien C) General lien D) Involuntary lien

C) General lien The answer is general lien. General liens usually affect all of a debtor's property; specific liens are secured by a particular parcel of real estate. Liens may be statutory or equitable: statutory liens are created by statute, and equitable liens arise out of common law. And finally, liens may be voluntarily or involuntarily created.

Under the federal Fair Housing Act, real estate organizations, such as multiple listing services, may NOT do which because someone is in a protected group? A) Discriminate in the listing or sale of commercial properties B) Ask the age of prospective clients C) Refuse membership or put conditions on participation D) All of these

C) Refuse membership or put conditions on participation The answer is refuse membership or put conditions on participation. For example, a multiple listing service that refused to accept listings from a certain ethnic group because it felt the group was too hard to work with would be in violation of the Act.

Which action is permitted under the federal Fair Housing Act? A) Telling an individual that an apartment has been rented when it has not B) Advertising property for sale only to a special group C) Refusing to sell a home to a minority individual because of a poor credit history D) Showing a member of a minority group only those properties located in minority areas

C) Refusing to sell a home to a minority individual because of a poor credit history The answer is refusing to sell a home to a minority individual because of a poor credit history. Fair housing laws affect every phase of the real estate sales process from listing to closing, and all brokers and salespeople must comply with them. The goal of legislators who have enacted fair housing laws and regulations is to create an unbiased housing market—one in which all homeseekers have the same opportunity to buy any home in the area they choose, provided the home is within their financial means.

Which of the following is (are) considered a lien on real estate? A) An encroachment B) An attachment C) Unpaid mortgage loans D) Easements running with the land

C) Unpaid mortgage loans The answer is unpaid mortgage loans. A lien is a charge against property that provides security for a debt, such as an unpaid mortgage loan. Liens differ from other types of encumbrances because, although they attach to the property, they do so because of a debt. All liens are encumbrances, but not all encumbrances (such as encroachments or easements) are liens.

If a condition of ownership is violated, title to the subject property automatically reverts to the original owner in A) a fee simple subject to a condition precedent. B) a fee simple subject to a condition subsequent. C) a determinable fee estate. D) an indeterminable life estate.

C) a determinable fee estate. The answer is a determinable fee estate. In a determinable fee, title to the subject property reverts to the original owner immediately and automatically when the condition of ownership is violated. In a fee simple subject to a condition subsequent, the estate does not terminate until the grantor goes to court to assert the grantor's right of reentry.

"I hear they're moving in. There goes the neighborhood! Better put your house on the market before values drop!" This is an example of A) channeling. B) steering. C) blockbusting. D) redlining.

C) blockbusting. The answer is blockbusting. Blockbusting, sometimes called panic peddling, means inducing homeowners to sell by making representations regarding the entry or prospective entry of minority persons into the neighborhood. Steering is the channeling of homeseekers to particular areas on the basis of race, religion, country of origin, or other protected class, either to maintain the homogeneity of an area or to change the character of an area in order to create a speculative situation.

The Deceptive Trade Practices Act (DTPA) does NOT apply to the actions of real estate agents when an agent A) fails to disclose information concerning goods or services known at the time of the transaction if such failure to disclose was intended to induce the consumer into a transaction the consumer otherwise would not have entered had the information been disclosed. B) makes an express misrepresentation of a material fact that cannot be characterized as advice, judgment, or opinion. C) makes an exaggerated or unsubstantiated statement of value given as advice, judgment, or opinion when selling real estate. D) pursues an unconscionable action or course of action that cannot be characterized as advice, judgment, or opinion.

C) makes an exaggerated or unsubstantiated statement of value given as advice, judgment, or opinion when selling real estate. The answer is makes an exaggerated or unsubstantiated statement of value given as advice, judgment, or opinion when selling real estate. The DTPA applies to real estate agents when the misrepresentation or action cannot be characterized as advice, judgment, or opinion. The practice of making exaggerated or unsubstantiated statements of value is called puffing. Although permissible under agency law and the DTPA, statements of opinion and puffing still should be avoided to steer clear of claims under the DTPA that the statements misled the consumer.

A consumer has sent a complaint to the Texas Real Estate Commission (TREC) against a real estate agent, claiming a violation of the Canon of Integrity. The agent is accused of A) placing personal interest above that of his client. B) failing to display Consumer Information Form 1-2. C) misrepresenting the condition of the property by omitting pertinent facts. D) acting in a manner that revealed a lack of knowledge about national, state, and local issues.

C) misrepresenting the condition of the property by omitting pertinent facts. The answer is misrepresenting the condition of the property by omitting pertinent facts. The remaining Canons of Professional Ethics and Conduct are Fidelity, Competency, Consumer Information Form 1-2, and Discriminatory Practices.

An owner sells part of his land that has no access to a public road but does have access over his remaining land. This creates an easement by A) implication. B) prescription. C) necessity. D) adverse possession.

C) necessity. The answer is necessity. An easement by necessity is created by law to allow owners access to their land.

It is unlawful for a person to act in the capacity of or claim to be a real estate broker without first A) registering with the Texas Real Estate Commission. B) taking the real estate licensing examination. C) obtaining a license from the Texas Real Estate Commission. D) completing required coursework and submitting an application to the Texas Real Estate Commission.

C) obtaining a license from the Texas Real Estate Commission. The answer is obtaining a license from the Texas Real Estate Commission. Any person who, for compensation or the promise of compensation, lists or offers to list; sells or offers to sell; buys or offers to buy; negotiates or offers to negotiate—either directly or indirectly—for the purpose of bringing about the listing, sale, exchange, purchase, option to purchase, auction, rental, or leasing of real estate is required to hold a valid real estate broker's license. Persons who deal only with their own property are not required to hold a real estate license.

It is the duty of an agent to disclose to the principal every step taken in the transaction of the principal's business because A) the listing contract requires the agent to do so. B) the agent's duty of loyalty requires complete disclosure. C) the agent has a fiduciary obligation to the principal. D) the purchase contract requires the agent to do so.

C) the agent has a fiduciary obligation to the principal. The answer is the agent has a fiduciary obligation to the principal. An agent's fiduciary duties to a client include care (avoiding negligence or carelessness), obedience (obeying the principal's legal instructions), accounting (reporting on funds received from or for the principal), loyalty (placing the principal's interests above those of the agent), and disclosure (keeping the principal fully informed at all times of all facts or information the broker obtains that could affect the principal's decisions). These duties are remembered by the acronym COALD.

Appurtenant easement rights transfer with A) the servient tenement. B) none of these. C) the dominant tenement. D) the subservient tenement.

C) the dominant tenement. The answer is the dominant tenement. These easement rights transfer with the dominant property forever, unless they have time limitations or are released by the owner. Easements in gross have no dominant tenement, and they are held by individuals rather than transferring with the property.

When there are two or more liens on a property, the order in which the liens will be satisfied when the property is sold will be determined by A) the dollar value of the liens. B) the geographic location of the lienholder. C) the priority of the liens. D) the importance of the liens.

C) the priority of the liens. The answer is the priority of the liens. Outstanding real estate taxes and special assessments take priority over all other liens. Texas Workforce Commission (TWC) wage liens against an employer who owes back wages to an employee take priority over all liens, other than ad valorem tax liens. Mechanics' and materialmen's liens take priority from the date work was begun or materials delivered. The priority of the remaining liens usually is established by the date and time they were recorded.

Which of the following is NOT a violation for which the Texas Real Estate Commission (TREC) may suspend or revoke a license or take other disciplinary action? A) Failing to make clear to all parties to a real estate transaction the party for whom the license holder is acting B) Failing to disclose to a potential buyer a defect known to the license holder C) Failing to deposit earnest money in a title company or in a trust account within a reasonable time D) Failing to advise a buyer or a seller regarding the validity of title to real estate

D) Failing to advise a buyer or a seller regarding the validity of title to real estate The answer is failing to advise a buyer or a seller regarding the validity of title to real estate. Unless a real estate license holder is also a Texas-licensed attorney, the commission shall suspend or revoke a license for the unauthorized practice of law. The unauthorized practice of law includes drafting an instrument that transfers or otherwise affects an interest in real property or advising a person regarding the validity or legal sufficiency of an instrument or the validity of title to real property.

A licensed real estate broker is not authorized to practice law unless the broker also is a licensed attorney. Which activity is permitted to be performed by a real estate license holder? A) Drawing or preparing a deed for a seller B) Drawing a note or deed of trust for a buyer C) Advising a person regarding the validity or legal sufficiency of an instrument affecting title to real estate D) Filling in the blanks of a contract form promulgated or approved for that use by the Texas Real Estate Commission (TREC)

D) Filling in the blanks of a contract form promulgated or approved for that use by the Texas Real Estate Commission (TREC) The answer is filling in the blanks of a contract form promulgated or approved for that use by the Texas Real Estate Commission (TREC). A license holder who is not licensed to practice law in Texas may not draw a deed, note, deed of trust, will, or other written instrument that may transfer title to or an interest in land. Furthermore, a license holder may not advise a person regarding the validity or legal sufficiency of an instrument or the validity of title to real property. A license holder may complete a promulgated or approved contract form for the sale, exchange, option, or lease of an interest in real property without engaging in the unauthorized or illegal practice of law in Texas. The License Act authorizes TREC to suspend or revoke a broker's or sales agent's license for the unauthorized practice of law.

Where are subdivision plats filed? A) None of these B) With the Texas Real Estate Commission C) In the municipality records office of the city nearest to where the land is located D) In the county clerk's office of the county in which the land is located

D) In the county clerk's office of the county in which the land is located The answer is in the county clerk's office of the county in which the land is located. An approved subdivision plat is recorded in the county clerk's office of the county in which the land is located. The plat gives the size, location, and designation of lots; specifies the location and size of streets to be dedicated to public use, and any public easements. By referring to a subdivision plat, the legal description of a building site in a town or city can be cited as a lot, block, and subdivision instead of a metes-and-bounds description.

A real estate broker's license is NOT required of persons who A) agree to negotiate a trade for another for a fee. B) attempt to negotiate the rental of real estate for another in exchange for one month's rent. C) offer to list real estate for sale. D) advertise and lease their own properties.

D) advertise and lease their own properties. The answer is advertise and lease their own properties. Any person who, for compensation or the promise of compensation, lists or offers to list; sells or offers to sell; buys or offers to buy; negotiates or offers to negotiate—either directly or indirectly—for the purpose of bringing about the listing, sale, exchange, purchase, option to purchase, auction, rental, or leasing of real estate is required to hold a valid real estate broker's license. Persons who deal only with their own property are not required to hold a real estate license.

The Texas Real Estate Commission is composed of A) six members appointed by the governor with senate approval. B) nine members, six of whom are brokers and three of whom are appointed by the State Bar of Texas with senate approval. C) six members, three of whom are brokers and three of whom are appointed by the State Bar of Texas with senate approval. D) nine members, six of whom are brokers and three of whom are lay members, each appointed by the governor with senate approval.

D) nine members, six of whom are brokers and three of whom are lay members, each appointed by the governor with senate approval. The answer is nine members, six of whom are brokers and three of whom are lay members, each appointed by the governor with senate approval. Experienced real estate brokers are placed on the Commission because it is believed they can more quickly identify and understand wrongdoing by sales agents and other brokers, and have a better grasp of how consumers have been injured.

The act of channeling homeseekers to a particular area either to maintain or to change the character of a neighborhood is A) redlining. B) less favorable treatment. C) blockbusting. D) steering.

D) steering. The answer is steering. Steering is the channeling of homeseekers to particular areas on the basis of race, religion, country of origin, or other protected class, either to maintain the homogeneity of an area or to change the character of an area in order to create a speculative situation. Blockbusting, sometimes called panic peddling, means inducing homeowners to sell by making representations regarding the entry or prospective entry of minority persons into the neighborhood.

A complaint of discrimination brought under the Texas Fair Housing Act can be filed with the U.S. Department of Housing and Urban Development or with A) the Texas attorney general. B) the Texas Department of Criminal Justice. C) the county clerk in the county the alleged discrimination occurred. D) the Texas Workforce Commission Civil Rights Division.

D) the Texas Workforce Commission Civil Rights Division. The answer is the Texas Workforce Commission Civil Rights Division. Complaints of discrimination brought under the Civil Rights Act of 1866 must be taken directly to a federal court. All other complaints are filed with the Texas Workforce Commission Civil Rights Division because Texas has a HUD-approved "substantially equivalent" fair housing law.

The priority of a mechanic's lien is established from the date A) the work was completed. B) of filing with the county clerk. C) all materials were delivered. D) work was begun or materials were delivered, in whole or in part.

D) work was begun or materials were delivered, in whole or in part. The answer is work was begun or materials were delivered, in whole or in part. A mechanic's lien may take priority over previously recorded liens, such as mortgages, if work to improve property was begun or materials were delivered before a buyer's closing on a new loan.


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