Quizes

Which of the following is NOT the example of adaptation to property? A. A temporarily installed alarm system B. House Keys C. A removable door screen D. A garbage compactor

A. A temporarily installed alarm system

What are potential advantages of a home purchase? A. An owner may realize a profit when he or she sells the property, after paying down the mortgage, the equity increases, income tax deductions B. Good infrastructure C. Independence from landlord D. Nice neighborhood

A. An owner may realize a profit when he or she sells the property, after paying down the mortgage, the equity increases, income tax deductions

What is the investment property? A. Any property held for investment purposes B. Only commercial property C. Only owner occupied property D. Residential Property

A. Any property held for investment purposes

How are equal employment opportunities implemented? A. By the means of a written policy statement B. By the means of federal law C. By the means of state law D. By the means of the Code of Ethics

A. By the means of a written policy statement

Whom may both sides bring to the professional hearings? A. Legal counsel B. No one C. A friend D. A witness

A. Legal counsel

What rights concern lakeside properties? A. Littoral rights B. Aqua rights C. Impounded rights D. Canal rights

A. Littoral rights

Who routinely passes rules and regulations in addition to the federal and state agencies? A. Local agencies B. Only local zoning board C. Trade organizations D. Courts

A. Local agencies

What are emblements? A. Plants and crops requiring human intervention and labor B. Plants and crops that grow naturally, without requiring anyone's labor or machinery C. All plants and crops D. Plants that were grown by tenant

A. Plants and crops requiring human intervention and labor

What is converted-use property? A. Property that has been renovated for other uses B. Property that is owned by multiple owners for a predetermined length of time C. Property owned by a cooperation D. Both answers 2 and 3 are correct

A. Property that has been renovated for other uses

Owner Jake sued a trespasser that entered his property. What right was Jake exercising? A. Right to exclude B. Right to enjoin C. Right to license D. Right to bailiff

A. Right to exclude

Which statement is FALSE for being a main information source for the real estate professional code of ethics? A. Specialized websites B. Federal and state laws which focus on anti-discrimination laws and fair trade practices C. Real estate licensing regulation on the state level dealing primarily with agency issues and disclosures D. Self-regulation by real estate associations that set standards for professional conduct

A. Specialized websites

TREC may deny a license to an applicant who fails to meet standards under the? A. Texas Occupations Code. B. Texas Code Conduct. C. Texas Fair Business Practices. D. Texas Business Practices.

A. Texas Occupations Code.

According to which type of written listing agreement is the seller client liable for the commission if the property sells during the term of the listing, no matter to whom or how it was generated? A. The exclusive right to sell listing agreement B. The exclusive agency listing agreement C. The open listing agreement D. The net listing

A. The exclusive right to sell listing agreement

What is the real estate license status of a person conducting a real estate transaction under a court order? A. The person is exempt from holding a real estate license. B. The person is required to hold a real estate license. C. The person must apply for a temporary real estate license D. The person is allowed to purchase a one-time use real estate license.

A. The person is exempt from holding a real estate license

What right does include such activities as mining, cultivating, landscaping, razing, and building? A. The right to use a property B. The right to use it in certain ways C. Ownership of a property D. The right to transfer a property

A. The right to use a property

Which is a common example of an ordinary lease? A. The transfer of a portion of one's bundle of rights B. The transfer of all rights C. The right to exclude D. The right to encumber

A. The transfer of a portion of one's bundle of rights

The Community Reinvestment Act mortgage lender's rating scale system goes from: A. outstanding to substantial noncompliance. B. letter grade A to F. C. a high of 1 to a low of 5. D. passing to sub-par.

A. outstanding to substantial noncompliance.

What categories does community property law distinguish regarding real and personal property? A. separate and community B. separate and personal C. separate, community, and acquired D. community and personal

A. separate and community

An approved real estate educational institution must maintain a corporate surety bond or other acceptable security in the amount of? A. $2,000 B. $20,000 C. $25,000 D. $12,000

B. $20,000

An administrative penalty may not exceed how much money for each violation? A. $2,000 B. $5,000 C. $7,000 D. $7,500

B. $5,000

What is the per diem reimbursement rate for TREC members? A. $50 B. $75 C. $80 D. $100

B. $75

How many principal meridians are in the national rectangular survey system? A. 30 B. 37 C. 38 D. 40

B. 37

Which is more likely to qualify for an FHA-type loan? A. A mobile home because it meets HUD's standards B. A manufactured home because it meets HUD's standards C. A mobile home because the mobile home would be considered real property D. A manufactured home because the home has no axles or wheels

B. A manufactured home because it meets HUD's standards

Which of the following best defines a legal description? A. A statement which provides the lot number and zip code of the subject parcel B. A statement which accurately locates and identifies the boundaries of the subject parcel to a degree acceptable by courts of law in the state where the property is located C. A statement which identifies corner boundaries based on physical structures D. A statement which identifies location based on acreage size or parts thereof

B. A statement which accurately locates and identifies the boundaries of the subject parcel to a degree acceptable by courts of law in the state where the property is located

What clause requires that the homeowner have insurance that is equal to 80% of the home's replacement value? A. Blanket Cause B. Coinsurance Clause C. Matching Clause D. Equity Clause

B. Coinsurance Clause

What feature do insurance companies use to modify their policies? A. Add-ons B. Endorsements C. Roll-overs D. Orange letters

B. Endorsements

What type of legal document allows condo ownership? A. Fee Order Title B. Fee Simple Title C. Green Title D. Holding Estate Title

B. Fee Simple Title

What program was at the heart of this case? A. Fair Housing Act B. Low Income Housing Tax Credits C. Civil Rights Act D. Fair Housing Tax Credits

B. Low Income Housing Tax Credits

Who is responsible for management of day-to-day operations? A. Asset Managers B. Property Managers C. Janitorial Staff D. Brokers

B. Property Managers

What form of ownership is reserved exceptionally for wife and husband? A. General partnership B. Tenancy by the entirety C. Co-ownership D. Joint tenancy

B. Tenancy by the entirety

Which act was passed in 1977 to prevent redlining? A. The Community Development Act B. The Community Reinvestment Act C. The Community Redevelopment Act D. The Neighborhood Redevelopment Act

B. The Community Reinvestment Act

Who owns the property in a time-share estate? A. Ownership is shared by the developer and the broker. B. The property is owned by tenants in common or by a freehold owner who leases on a time-share basis. C. A real estate investment trust holds a fee simple estate. D. A general partner holds a fee simple interest and interval estates are owned by limited partners.

B. The property is owned by tenants in common or by a freehold owner who leases on a time-share basis.

Which of the following is a skill that a successful real estate agent must have? A. License Law B. Time Management C. Related Math Calculations D. Closing Procedures

B. Time Management

What facilities are purchased with the right to use them for a predetermined length of time? A. Condominium B. Time-share C. PUD D. Cooperative

B. Time-share

Will improved title protection increase financing options? A. No B. Yes C. Only for homes manufactured after 2003 D. None of the options

B. Yes

Arbitration complaints are generally over? A. personal property B. an issue of money C. illegal ads D. licensing issue errors

B. an issue of money

A license holder may not receive a commission, rebate, or fee in a transaction from a person other than the person the license holder represents without first disclosing to the license holder's client that the license holder intends to receive a commission, rebate, or fee, and obtaining the consent of the license holder's __________________. A. officer B. client C. accountant D. agent

B. client

Brokers must also give copies of documents to everyone who is affected by them and retain these documents ___________. A. forever B. for at least three years C. for at least five years D. for at least a year

B. for at least three years

In the customer-agent relationship, the licensee does not ___________. A. impart factual knowledge to a customer. B. provide advice and counsel to the customer. C. have certain obligations to the customer D. disclose material facts about the property.

B. provide advice and counsel to the customer.

Good ethical practices have to do with: A. timing, perception, and trust B. trustworthiness, honesty, and competence C. patience, order, and trust D. laws, customs, and practices

B. trustworthiness, honesty, and competence

A cooperative can best be described as? A. units that are owned by individual occupants. B. units that are owned by a corporation that sells shares of stock to the owners. C. units that are owned by a board and rented to occupants. D. units that are owned individually and also hold general shares in the community.

B. units that are owned by a corporation that sells shares of stock to the owners.

What is the primary difference between a mobile home and a manufactured home? A. A mobile home is limited to no more than two bedrooms B. A manufactured home must be assembled onsite C. A manufactured home has higher standards than a mobile home D. A mobile home is placed on a site that is leased. A manufactured home is placed on a site that is owned

C. A manufactured home has higher standards than a mobile home

Which of the following belong to the trade fixtures? A. A garbage compactor B. An air conditioner C. A printer's printing press D. A septic tank

C. A printer's printing press

What is the correct definition of a dower? A. A state-level statute enabling a surviving spouse to make a minimum claim to the deceased spouse's real and personal property in place of the provisions for such property in the decedent's will B. One's principal residence C. A wife's life estate interest in the husband's property D. Right enjoyed by the husband in a deceased wife's property

C. A wife's life estate interest in the husband's property

An agent owes all but which of these to the customer in a real estate transaction? A. Honesty B. Fairness C. Advice D. Certain Disclosures

C. Advice

Which of the following actions is NOT involved in creating real properties from raw land? A. Capital Information B. Financing C. Allowances D. Regulatory Approvals

C. Allowances

What is the bottom line for a prospective purchaser while obtaining a loan? A. Recommendations B. History of leases and purchases C. An ability to afford the monthly payments on the loan D. Other loans obtained at the same time C. An ability to afford the monthly payments on the loan

C. An ability to afford the monthly payments on the loan

Which of the following is required by law before parties may enter a real estate agency contract? A. Legal Consent B. Legal Capacity C. Both Legal Consent and Legal Capacity D. None of the options

C. Both Legal Consent and Legal Capacity

What section of a sale contract describes the ramifications of the property being damaged or destroyed prior to closing? A. Status Loss B. Loss of Assets C. Casualty Loss D. Readjustment Settlement

C. Casualty Loss

In what document would you find covenants and restrictions regarding use and transfer of condo units? A. Stated Provisions B. Organizational Provisions C. Declaration Provisions D. Status Provisions

C. Declaration Provisions

By what other name is Title VIII of the Civil Rights Act of 1968 known? A. Voting Rights Act B. Low Income Housing Act C. Fair Housing Act D. Housing for All Act

C. Fair Housing Act

Which agency identifies flood plain areas? A. Federal Water Management Agency B. Federal Watershed Management Agency C. Federal Emergency Management Agency D. Federal Emergency Management Bureau

C. Federal Emergency Management Agency

Which type of agency relationships doesn't exist? A. Implied Agency B. Ostensible Agency C. Indirect Agency D. Express Agency

C. Indirect Agency

A certain legal description contains the phrase,"...southeasterly along Happ Road to the stone landmark..." What kind of description is this? A. Plat survey B. Government grid C. Metes and bounds D. Rectangular survey

C. Metes and bounds

What is the right that allows a property owner to mortgage a property as collateral for debt? A. Right to market B. Right to lien C. Right to encumber D. Property directive

C. Right to encumber

Which type of listing is a non-exclusive contract? A. The exclusive right to sell listing agreement B. The exclusive agency listing agreement C. The open listing agreement D. The net listing

C. The open listing agreement

Agent Paul is bound to inform his client of all facts that might affect the client's interests — both what Paul knows and what he "should have known." Which of these situations would not be something Paul "should know?" A. There is a crack in the basement wall B. The air conditioner does not work C. The owner of the property is HIV positive D. The casement windows have broken seals

C. The owner of the property is HIV positive

Which statement best defines the term "land?" A. A portion of earth delineated by boundaries and considered a parcel or tract B. Most man-made structures that are "permanently" attached to the earth C. The surface area of the earth, everything beneath the surface of the earth extending downward to its center, all natural things permanently attached to the earth, the air above the surface of the earth extending outward to infinity D. The earth's surface and all natural things

C. The surface area of the earth, everything beneath the surface of the earth extending downward to its center, all natural things permanently attached to the earth, the air above the surface of the earth extending outward to infinity

How is Alternative Minimum Tax under Tax Relief Act determined? A. Area medium income compiled quarterly B. National medium income figured annually C. Tied to inflation (Consumer Price Index (CPI)) and updated by the Internal Revenue Service (IRS) each year D. No rate set, this is a voluntary tax

C. Tied to inflation (Consumer Price Index (CPI)) and updated by the Internal Revenue Service (IRS) each year

What is critical for a broker and his/her agents? A. To have great communication skills B. To act in the best interests of the client C. To act in the best interests of both the client and any third parties to a transaction D. To be aware about the situation in the real estate market

C. To act in the best interests of both the client and any third

A person appointed to the TREC is: A. not entitled to reimbursement for the travel expenses incurred in attending required training programs. B. entitled to a maximum of $150 a day reimbursement for the travel expenses. C. entitled to reimbursement for the travel expenses incurred in attending required training programs. D. not entitled to more than $125 per day for TREC related work.

C. entitled to reimbursement for the travel expenses incurred in attending required training programs.

What does GLO abbreviation stand for? A. Global Land Carriers B. Ground Liason Officer C. the General Land Office D. the Great Lakes Office

C. the General Land Office

The distinguishing feature of a defeasible fee simple estate is that: A. it can be passed on to heirs. B. it has no restrictions on use. C. the estate may revert to a grantor or heirs if the prescribed use changes. D. it is of unlimited duration.

C. the estate may revert to a grantor or heirs if the prescribed use changes.

In Texas, if a net listing is used, the listing agreement must assure: A. the principal of less than the principal's desired price and limits the broker to a specified maximum commission. B. that the broker receives any commission amount above the seller's asking net price. C. the principal of not less than the principal's desired price and limits the broker to a specified maximum commission. D. the buyer receives a percentage of the broker's compensation.

C. the principal of not less than the principal's desired price and limits the broker to a specified maximum commission.

When do retirement savings on Individual Retirement Accounts become tax free? A. From the very beginning B. After 5 years C. After a person attains age of 62 D. After five years and the person reaches age 59 ½

D. After five years and the person reaches age 59 ½

Which group or person hears administrative penalty review requests? A. A 5-person panel from the State Office of Administrative Hearings B. A 3-person panel from the State Office of Administrative Hearings C. A law judge from the State Office of Accounting D. An administrative law judge of the State Office of Administrative Hearings

D. An administrative law judge of the State Office of Administrative Hearings

Which of the following is a good example of a unilateral contract? A. A listing agreement B. A personal services agreement C. A sale contract D. An option to buy

D. An option to buy

What is it called when you convert personal property to real property by affixing it to the real estate? A. Restitution B. Tagging C. Severance D. Attachment

D. Attachment

What type of system was based on the distribution of land in return for services to the king? A. Land Grant B. Division of Parcel C. King's Parcel D. Feudal System

D. Feudal System

In what part of a sales contract would you find information regarding property located seaward of the Gulf Intracoastal Waterway? A. In a water plan map B. In a USGS water table report C. Gulf Access Report D. In an addendum

D. In an addendum

Those who risk capital in order to buy, hold, and sell real properties are known as what? A. Real Estate Brokers B. Bankers C. The FDIC D. Real Estate Investors

D. Real Estate Investors

What is the right that allows a property owner to sell, bequeath, lease, donate, or assign ownership interests? A. Right to suffrage B. Allowance Rights C. Right to market D. Right to transfer

D. Right to transfer

Which one of the following is NOT a condition for a broker's change from inactive to active status? A. Submits an application to TREC. B. Pays the required fee. C. Submits proof of attending at least 18 classroom hours of continuing education. D. Submits proof of attending at least 15 classroom hours of continuing education

D. Submits proof of attending at least 15 classroom hours of continuing education

Which property right includes water rights? A. Mineral rights B. Air rights C. Subsurface rights D. Surface rights

D. Surface rights

Which entity maintains a list of each broker whose license is on inactive status? A. License Regulatory Agency B. Public Affairs Office C. Attorney Generals Office D. TREC

D. TREC

Which state entity is responsible for administering the Low Income Housing Tax Credits program? A. Texas Fair Housing Commission B. Texas Department of Housing and Urban Development C. Inclusive Texas Communities Project D. Texas Department of Housing and Community Affairs

D. Texas Department of Housing and Community Affairs

Which of the following statements best defines the concept of procuring cause? A. The party who provides mortgage information that leads to a successful transaction B. The party who provides the most administrate support that leads to a successful transaction C. The party who initiated the MLS listing that leads to a successful transaction D. The party who initiated and carried through the sequence of events that leads to a successful transaction

D. The party who initiated and carried through the sequence of events that leads to a successful transaction

When may the trade fixtures become the property of the landlord? A. If the landlord buy it B. Upon surrender, of the leased premises C. In case the fixture is detached and removed D. Through accession

D. Through accession

For what purpose was the Texas Real Estate Broker-Lawyer Committee created for? A. To approve and promulgate the standard contract forms for use by Texas licensees B. To inspect the validity of the contracts C. To serve as a mediator in the conflicts D. To draft and revise the standard contracts that licensees use

D. To draft and revise the standard contracts that licensees use

What is the general criterion for a legal description of the property? A. it is understandable in every country B. it is common for all systems of measurement C. it identifies location based on acreage size or parts thereof D. it alone provides sufficient data for a surveyor to locate the parcel

D. it alone provides sufficient data for a surveyor to locate the parcel

A licensed salesperson may? A. receive direct compensation from any other licensee B. receive compensation from any other MLS associated brokerage office C. receive direct compensation from any other broker D. receive direct compensation only from his or her own broker

D. receive direct compensation only from his or her own broker

One establishing accreditation standard for a real estate educational program is based on? A. the average fee charged per clock hour of education. B. the number of students that enroll in a particular program. C. the number of students that enroll in a particular program, but do not complete the course of study. D. the average percentage of examinees that pass the licensing exam on the first attempt.

D. the average percentage of examinees that pass the licensing exam on the first attempt.

According to Texas Administrative Code - Title 22, Part 23, Chapter 535, Subchapter N, Rule §535.146(b), if a party the license holder does not represent agrees to pay a service provider in the transaction, the license holder must also obtain _________________________ of that party to accept a fee, commission, or rebate from the service provider . . . ." A. a rebate B. identification documents C. a handshake agreement D. the consent

D. the consent

If a vacancy occurs during a Texas Real Estate Broker-Lawyer Committee member's term? A. the slot is left unfilled unit the term expires. B. the TREC secretary will make an appointment. C. a TREC employee will complete the remaining term. D. the entity making the original appointment will appoint a person to fill the unexpired term.

D. the entity making the original appointment will appoint a person to fill the unexpired term.

Land that is delineated by boundaries is called a(n): A. section B. area C. ward D. tract

D. tract

The U.S. Census Bureau reported in 2012 that how many Americans live in manufactured housing? A. 1 million B. 5 million C. 8.25 million D. upwards of 20 million

D. upwards of 20 million