principles of real estate 1

General

What type of real estate agency relationship usually exists when a licensee has the broad responsibility of handling all of the details of a specific property?

equitable title rights

What type of rights to the property does a buyer have during the contract for deed process?

To spell out the agreement between the listing broker and the seller

What is the purpose of a listing agreement?

A young couple planning a family

What type of buyer would be most attracted to a single-family dwelling?

plain language

What type of language should be used to write contracts?

Non standardized

What type of policy is an HO-A amended policy?

Texas Real Estate Dealers Act

What was the name of the first law regulating real estate brokerage in Texas, which was originally passed in 1939?

The federal Fair Housing Act allows an exemption for communities that are designed and operated for senior use.

A family of four, with children ages six and nine, is denied the opportunity to view an available unit at a community that caters to seniors. Which of the following statements is true?

Transfer ownership before death and avoid probate

A living trust differs from a testamentary trust in that a living trust is established to convey property as well as to ______.

property assesed value

Ad valorem taxes are based on what?

Housing type

After location, which is commonly the second biggest factor in a buyer's selection of a home?

taxation

Allentown sits on the river, and its many bridges need repair. Which police power is Allentown likely to use in order to fund improvements to its bridges?

Limits on the liability of members for company debts or other obligations

An advantage of organizing a business as a limited liability company is its ______.

right-of-way agent

An agent who buys, sells, leases, or transfers easements

investment

Applying a capitalization rate to the net operating income is one way to determine a property's ______ value.

Deceptive Trade Practices-Consumer Protection Act

As a real estate licensee in Texas, if you advertise, otherwise market, or deal with a consumer using lies, misrepresentations, fraud, or other deceptive practices or acts, which act are you violating?

Avoid unauthorized practice of law

Belinda is a licensee whose client asked her to draft an addendum containing complicated terms that even Belinda doesn't fully understand. Belinda should ______.

lending practices

HMDA requires lenders to collect, maintain, and report data on which of the following?

No, the license holder was not aware of the dishonesty and is not liable.

Can a license holder be held liable if they are unaware that a party to a real estate transaction is concealing information pertaining to that same real estate transaction?

Katrina must follow the more restrictive of federal or state law.

Contrary to federal fair housing laws, the state where Katrina lives includes age as a protected class. Which of these statements about this conflict is true?

Tenancy in common

In which form of co-ownership is a person's ownership inheritable?

The address at which the broker's office is located

Dana is a licensed broker in Texas. She has one primary location from which she conducts most of her business. However, she does have two additional branch locations. What must be included on all branch license certificates?

Trustor

Darren set up a land trust so that his children could benefit from his real estate investments after he dies. He asked his financial advisor Tom to manage the trust. Darren is the ______.

Restrictive covenants

Deed restrictions imposed by a developer who wants to maintain specific standards in a subdivision under development are often called _______.

The discontinuance of use of the property coupled with an intention not to use it again as a home.

Define abandonment.

A lawful objective

Doris and Kathleen, who are neighbors, enter into an agreement to not permit their real estate agents to sell their homes to families with children. This agreement lacks ______, so it's void.

a physical place of business

Each broker licensed in the state of Texas must maintain which of these items?

An intermediary

Emilia is a broker who is employed to negotiate a transaction between both parties to a transaction, and with the parties' written consent, may act as the agent of the two parties. In what capacity is Emilia acting?

shares in the cooperative corperation

Evan bought into a housing cooperative that's focused on cultural exchange. Each month, the co-op residents have dinner meetings and share food and information about the culture of their respective regions. When Evan made his purchase, he received a proprietary lease for his unit. What else did he receive?

Shelves attached to the wall with brackets

Examples of real property and fixtures include which of the following?

The account is established for the benefit of the public

For the benefit of whom does the Recovery Trust Account exist?

By requiring licensees to have certain education, training, and standards

How does the requirement that real estate professionals be licensed protect the public?

The numbers start in the northeastern corner and follow a zigzag pattern.

How is the grid that's used in the rectangular government survey system laid out?

5280 feet

How long is a mile?

160

How many acres are in a quarter section in a rectangular survey?

1120 One square mile is 640 acres. Three-quarter square mile is 480 acres (640 x .75 = 480). So, 640 + 480 = 1,120 acres.

If a farm that's for sale measures one and three-quarter square miles, how many acres is it?

At the time that the licensee is having the first substantive dialogue about a specific property with the party whom they are not representing in the transaction

In Texas, when is a licensee required to provide an agency disclosure?

more than 1 year

In order for a lease for real estate to be enforceable, it must be in writing and signed by the person to be charged with the promise/agreement, or by someone who is legally authorized to sign for that person. This requirement applies to a lease with a term of ______.

Real estate counselor

In the real estate business, whose primary role is it to provide clients with the information they need to make informed decisions about their own specific real estate interests?

Ownership includes both the structure and the land.

In what way is a townhome similar to a single-family detached home?

They must take the dispute to court.

Kellan and Stacy are in the midst of a property dispute. Each party has a legal description and survey that show conflicting boundaries between their properties. What may be the best way to resolve this dispute?

Kevin signed a listing agreement with you.

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?

Novation

Mary contracted to buy her mother's house when her mother moves to a senior living community, but now Mary has to move because of work and no longer wants to buy the house. With their mother's agreement, Mary's sister, Tina, steps in, releasing Mary from her obligation. They write up a new contract, with the only change being that Tina is now the party to the contract rather than Mary. What's happened here?

General Partnership

Mike and his buddy Daryl own a business together. They are jointly and separately liable for any debts the business may incur. What type of partnership do Mike and Daryl have?

Yes, since she is the owner-occupant of a single-family principal residence.

Mrs. Jones is renting out the upstairs of her house to earn some extra money. She prefers female tenants and will only allow a single heterosexual female. Can she legally do this?

Signed by the person to be charged with the promise/agreement

Per the Texas statute of frauds, a contract for the sale of real estate is only enforceable if it is in writing and ______.

The Texas Workforce Commission Civil Rights Division

Real estate licensees in Texas need to pay attention to updates from what agency, which is responsible for enforcing Texas Fair Housing Law?

Restricting the appearance of the actors within Samuel's ad campaign

Samuel is creating a new advertising campaign for his brokerage firm. He's pretty sure TREC has some authority over advertising practices, but he can't remember exactly what those are. Which of the following actions falls outside of TREC's powers?

timeshare estate

Sheila owns a timeshare that gives her ownership in the property for a certain number of weeks per year in perpetuity. What type of timeshare is this?

Prohibit a license holder from using a contract that has been drafted by the property owner's attorney.

TREC does NOT have the right to do which of the following?

TREC

Texas sales agent applicant Frank's license application was denied. Which of the following parties is responsible for notifying Frank?

Indemnification

The Best of Times Realty signs a listing agreement with Frank Smith on Monday morning. That night, Frank's property is vandalized with graffiti. Which client duty releases the broker of all liability with regard to the damage that was done to the property?

Rehabilitation

The Community Reinvestment Act requires lenders to invest in development and ______ efforts that will enable low- and moderate-income individuals and families to afford a home.

TREC

The ESAC makes recommendations for improvements to real estate education to the ______, which is tasked with implementing the new standards.

Sex

The Housing and Community Development Act of 1974 added which protected class to federal fair housing law?

compensation

The client owes the agent the primary duties of ______, information, indemnification, and availability.

private transfer fee obligation

The seller of property that may be subject to a private transfer fee must provide the prospective buyer with which written notice?

5

The seven members of the ESAC committee who are real estate professionals must have been actively engaged in the practice of real estate for at least ____ years before appointment.

Exclusive right to sell

There are three types of listing agreements. They are _______, exclusive agency, and open listing.

In certain cases, oral evidence can be used to support or complete an otherwise incomplete or ambiguous contract.

What does the parol evidence rule state?

18 hours

What is the continuing education requirement for Texas real estate licensees?

50,000

What is the maximum payment amount for a claim from the Recovery Trust Account for a single transaction?

With reversionary interest, the property reverts to the owner after the death of the life tenant. With remainder interest, the title to the property goes to a named third party following the death of the life tenant.

What's the difference between reversionary interest and remainder interest in a property?

Americans with Disabilities Act

What's the name of the act that requires public accommodation areas to be accessible?

Datum

What's the point from which elevation is measured?

A mutual agreement

When offer and acceptance has occurred, both parties enter into ______.

Housing for Older Persons Act of 1995

Which act states that communities and facilities that meet certain criteria for providing housing to older persons are legally exempt from familial status discrimination?

disclosure

Which fiduciary duty is missing: loyalty, reasonable skill and care, obedience, confidentiality, accounting, and ______?

A legally binding, written contract between a property buyer and the seller that allows the buyer to pay for the property in installments

Which of the following best describes a contract for deed?

To identify the terms of the buyer agent/buyer agency relationship

Which of the following best describes the purpose of a buyer agency agreement?

It provides requirements that contracts have to meet to be legally enforceable.

Which of the following best explains how the statute of frauds protects consumers?

a person or an entity

Which of the following can hold a broker's license in Texas?

A legal notice that a lawsuit is pending that affects the title of a property

Which of the following defines the term 'lis pendens'?

Any contract or conspiracy resulting in the substantial decrease of competitive trade or commerce within the state

Which of the following does the Texas Free Enterprise and Antitrust Act of 1983 make unlawful?

increase your advertising

Which of the following is NOT recommended during a downcycle?

Estate at will

Which of the following is a leasehold estate for an unknown period of time, with either party permitted to terminate the lease by giving notice to the other?

The brokerage may have to undergo court-ordered supervision for up to 10 years.

Which of the following is a possible outcome if a brokerage is found guilty of violating antitrust law?

Interest on the first $750,000 of mortgage debt is deductible for married couples filing jointly or $375,000 for married couples filing separately.

Which of the following is a true statement about deducting interest on mortgages taken out in tax years between 2018 and 2025?

principal

Which of the following is described here? "A greater percentage of the mortgage payment is applied to this over time as the mortgage is paid off."

If your estate is worth less than a specific monetary threshold, the estate tax will not apply.

Which of the following is true regarding estate tax?

Rectangular government survey

Which of the following legal descriptions is not used in Texas?

Doug is buying Norm's farm, but has a serious accident and no longer wants to own a farm, so his daughter Linda decides to buy the property. Norm agrees to the substitution of Linda for Doug in the purchase contract, effectively creating a new contract.

Which of the following scenarios is an example of novation?

Race, color, religion, sex, handicap, familial status, national origin, sexual orientation, or gender identity

Which of these groups of protected classes is included in the NAR Code of Ethics' definition of discriminatory behavior?

Land, plus all things permanently attached to it naturally or artificially

Which of these is the best definition of real estate?

The local Elks club owns a property that's rented only to Elks club members.

Which of these situations would be exempt from most provisions of the federal Fair Housing Act?

A fair housing specialist will review the complaint.

Which of these statements best represents what happens after a federal fair housing complaint is made?

origination fee

Which one of the following is a charge you would pay to your lender to arrange the financing for a home loan

The Information About Brokerage Services form is not a contract.

Which one of the following statements about the Texas Information About Brokerage Services form is true?

Topography

Which one of the following terms refers to the dimensions, physical features, and contours of land?

Aggrieved persons affected by a license or certificate holder's wrongdoing

Who is entitled to reimbursement from the Real Estate Recovery Trust Account?

there was no agency put into place to enforce it

Why did the Civil Rights Act of 1866 fail to have an immediate impact on practice?

The property owner still has the right to redeem the property before the tax sale by paying delinquent taxes and penalty owed.

Within the tax sale process, which of the following occurs?

TREC

______ enforces the Canons of Professional Ethics and Conduct in Texas.

A point, surface, or line used as a reference for measuring elevations

a datum?

living trust

avoids probate

laws are legally enforceable. Ethics aren't legally enforceable until they become law.

difference between ethics and laws

Protects against foreclosure by general creditors

identify the ways in which the homestead law protects Texas residents.

Map Book 12, page 14,

lot and block?

To delay flood insurance premium increases

what is the purpose of the Homeowner Flood Insurance Affordability Act of 2014 (HFIAA)?