RE 1

At what point must a listing agent disclose material facts to all parties involved in the transaction?

As soon as possible

Which of the following scenarios is an example of novation?

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.

What signifies that a survey is certified and represents a guarantee of accuracy?

Surveyor's stamp

In contract law, undue influence differs from duress in that duress includes ______.

Use or threat of force

In Texas, when is a licensee required to provide an agency disclosure to the party they are not representing in a transaction?

When engaging in substantive dialogue about a specific property

______ must abide by the Canons of Professional Ethics and Conduct, enforced by the Texas Real Estate Commission.

All Texas real estate licensees

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

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

Cynthia loves her apartment and would like to have the option to buy it once her lease is up. Who is the best person to help Cynthia prepare a lease option?

A real estate attorney

What is the starting point for any land surveyor who has been asked to perform a survey?

A review of existing historical records

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

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

What's the permanent marker used primarily for marking datums when measuring elevation?

Benchmark

When there are more buyers in area than there are homes available to purchase, it means what?

Demand exceeds supply.

What's the purpose of the ECOA?

To prevent discrimination in lending

What's the purpose of testing for discrimination?

To uncover hidden discrimination

Like other agreements, the property management agreement details the terms of "employment" between the ______ and the ______.

Property manager; owner

In the real estate business, whose primary role is to estimate property value based on established valuation guidelines?

Real estate appraiser

Kirby has a listing agreement with Bob. If Kirby or another agent locates the buyer, Kirby gets his listing commission. However, if Bob locates the buyer, Kirby does not earn a commission. What type of listing agreement do they have?

Exclusive agency

Bills passed by Congress and signed into law by the President, which regulate mortgage lending and fair housing, are examples of what type of laws that real estate professionals must follow?

Federal laws

In Texas, a party to a contract has ______ from a contract breach to sue the other party.

Four years

Which of the following would be considered personal property?

Free-standing TV

Which of the following statements best describes a lease agreement's purpose?

It identifies the terms of a lease transaction between the landlord and the tenant.

Which of the following scenarios best describes a net listing?

Maeve wants to get at least $350,000 when she sells her property and tells her listing agent, Stan, that he can keep anything above that amount.

In a trust, the trustee is the person who ______.

Makes sure the terms of the trust are carried out

Navigable and non-navigable waterways are a smaller classification within what kind of water rights?

Riparian

A ______ is a piece of real estate owned by multiple unrelated individuals who, in addition to their ownership rights, each hold the right to occupy the dwelling unit based on the specific terms of a timeshare agreement, usually in one- to two-week intervals during the year.

Timeshare estate

What is the MLS?

A database of real estate information

Cheri wants to find the legal description for her property. Where could she look?

At a deed

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

Avoid unauthorized practice of law

Jan is a real estate licensee selling a vacation home for which she is part owner. What must she do?

Disclose the interest in writing to all parties to the transaction

In which of the following scenarios is impossibility of contract performance occurring?

Due to circumstances beyond their control, the parties can't legally or practically do what they've agreed to do.

Which of the following is the TREC committee that is responsible for reviewing the performance of any educational program that is performing below TREC's established standards?

Education Standards Advisory Committee

The list price is the price for which the _____ has agreed to sell a property.

Owner

Who are the parties to a property management agreement?

Owner and property manager

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

Ownership includes both the structure and the land.

Ken, Dale, and James were brothers who owned more than 100 acres as tenants in common. The relationship between Ken and James disintegrated, and so James initiated a lawsuit. The end result was that the court gave each brother a designated set of acres to own. What did the court grant?

Partition

Shannon is reading through paperwork related to her upcoming home purchase when she comes across the following: "Southwest quarter of Southwest quarter (SW ¼ of SW ¼) and West Half of Southeast quarter of Southwest quarter (W½ SE¼ SW¼) of Section Eleven (11), Township Four (4) North of Range Eight (8) West." What did Shannon just find?

Legal description

Stan and Emile are arguing over their shared lot line, since Stan thinks that Emile planted a privet hedge on Stan's property. Stan filed a civil legal action against Emile. Which of these would the court use to determine the actual lot line?

Legal descriptions of both properties

Samantha is a real estate licensee. She's showing her client a property. The client asks about some spots on the ceiling and wonders if they're an indication of a roof leak. What should Samantha do?

Suggest that her client contact a roofing expert to make a determination.

In Texas, which of the following is a true statement?

Surface rights and sub-surface rights can be sold separately.

What's required before a broker can start using an assumed business name in an advertisement?

The broker must register the name with the Texas Real Estate Commission and provide evidence of legal authority to use the assumed business name in Texas.

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.

Which of the following is true about air rights?

They allow the owner to use the open space above buildings.

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 ______.

Trustor

The ADA was established, among other reasons, to ensure that people with disabilities have access to the same locations as those without disabilities. The ADA creates a set of standards that designers and builders must follow in which circumstance?

When building new or altering older facilities

Which of the following phrases doesn't potentially discriminate against members of any protected class?

"Easy access to local shops"

What is it called when one party to a contract transfers the contractual rights and obligations to another but remains liable for the contract terms?

Assignment

Which of the following is a true statement about the MLS and sellers?

It's rare for sellers to decline advertising their property on the MLS.

In order to be considered REALTORS®, what must licensees do?

Join the National Association of REALTORS®.

Which form of real property ownership (for owners other than married couples) means there's equal ownership shares with undivided possession rights?

Joint tenancy

Following all of the client's lawful instructions describes which fiduciary duty?

Obedience

A(n) ______ is an offer to purchase a specific piece of real estate, but without the obligation to buy it.

Option agreement

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?

Permanence of investment

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

The account is established for the benefit of the public.

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

$50,000

How would you respond if your seller makes the following request? "We've lived here 10 years and love our neighbors. They're really concerned about the changes happening to the blocks around us, so we want to be careful about who we sell this house to. You know what we mean. You'll help us find the 'right' kind of buyer, won't you?"

"It would be illegal to limit the search based on race or religion or anything like that, but I promise I'll find you the most qualified buyer I can, and we'll sell this house for the highest price possible."

The cost of a parcel of land is 50 cents per square foot. Candace wants to purchase one acre. How much will this cost?

$21,780

Rhonda is an unrepresented buyer who's purchasing Tony's townhome. Gary represents Tony in the sale of his property. What's Rhonda's relationship to Gary?

A customer

Jenner purchased his first home, to which he'll have access forever, as far as he knows. Jenner owns ______.

A freehold estate

What is a red flag for an Equal Credit Opportunity Act violation?

A person was denied credit without explanation or given resources that explain why.

Which of these statements about fair housing for people with disabilities is true?

A person with a disability should not be prevented from making reasonable accommodations and may also request accessibility accommodations.

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

Americans with Disabilities Act

In what way or ways do consumers compensate brokers for their services?

As a flat fee, fee for service, and/or percentage of sale

Why would a buyer want to know if any easements or encroachments exist on a property?

Both easements and encroachments affect the property's lot size, enjoyment, and use, which can affect a property's value.

What does the metes and bounds system use to develop a property's legal description?

Compass headings and directions

The process in which the government actually takes someone's property through the power of eminent domain is called __________.

Condemnation

The state's claim to property when a property owner dies, leaving no will, heirs or creditors, is the power of ______.

Escheat

Why do ethics matter in real estate?

Ethics uphold the profession.

Joe gave land to a school, but still wanted to have some control over its use, so a deed was prepared that gave the school title as long as the land is used for educational purposes. What type of interest does the school have?

Fee simple determinable

A Texas broker must maintain written records of all trust fund activity for how long?

Four years

Brandon is interested in purchasing a piece of property, but before doing so, he'd like to verify the accuracy of the legal description. Which of these options will accomplish this?

Having a survey conducted

Jim is a listing agent. What offers must he present to his client, and when?

He must present all offers as soon as is practical.

Which economic characteristic of land contains the concept that a land's value can be affected by the changes made to it, such as construction of buildings or fences?

Improvements

The Johnsons have owned a small restaurant for more than 20 years. It's open for lunch and dinner six days a week, and 80% of its weekday revenue comes from the happy hour drink and appetizer specials. The town in which their restaurant is located recently constructed a new middle school and stripped the liquor license from the Johnsons' restaurant, because it no longer complies with the ordinance to be 500 feet from a school property. The Johnsons have accused the town of _____.

Inverse condemnation

As demand decreases, what happens to the price?

It decreases.

How does topography impact land value?

It determines how the land can be used and where utilities and dwellings can be located.

The residents of Blair Avenue are a close-knit bunch. They're all young couples with small children, and they don't want this dynamic to change when two of the couples have to move. Those couples sign an agreement promising not to sell to anyone without kids or to anyone over the age of 50. The contract can't be enforced because it's missing ______.

Legal purpose

What type of water rights are granted to landowners whose land borders closed bodies of water, such as lakes or the ocean?

Littoral

Which type of lien is filed by a supplier of products that were used in construction or improvement of a property?

Materialmen's lien

Tom and Linda are Texas residents who wish to make a fair housing complaint to the TWCCRD about a licensee they encountered while shopping for a vacation home in Montana. Can they do this?

No. All complaints to the TWCCRD must be for Texas property.

In the real estate business, whose primary role is it to provide training to individuals who want to obtain their real estate license or who need to keep their license current?

Real estate educator

Jack works for a great company creating online training for individuals who want to obtain their real estate license or need to keep their license current. What is Jack's profession?

Real estate educator

Homeowner Shaun loves DIY projects and decided to build some bookshelves for his home office. He bolted the shelves to the wall and installed trim around them so they became an integral part of the room. When he sells his home, the bookshelves will be considered ______.

Real property because of the method of annexation

Tristan refused to let Marla list his property on the MLS, even though Marla told him that more exposure to the property would generate more potential buyers. Which two fiduciary duties are at odds in this situation?

Reasonable skill and care and obedience

Ron's company leased a building so that it could build an escape room experience. After operating for two years, attendance (and thus its profits) started to drop significantly, so it decided to close the location. When the workers started taking down the installation, they realized that some of the structures would damage the walls if they were to try to remove them. Which of these is true about these trade fixtures?

Ron may take the fixtures as long as he repairs any damage caused by removal.

To become a Texas sales agent, how many 30-hour pre-licensing courses must an applicant complete?

Six 30-hour courses

The ESAC makes recommendations to which agency?

Texas Real Estate Commission

Whose interests are protected by homeowners insurance?

The buyer and lender

Marshall is a home inspector who is walking the lot of the property he's inspecting with a survey in hand. Which of the following will he note as an encroachment on the inspection report?

The neighbor installed a basketball hoop next to his driveway, six inches over the property line.

Which of the following is true about tie-in arrangements?

They're an antitrust violation.

Ellen and Isaac have a timeshare near the Grand Canyon. They'll be able to use it for two weeks every September for the next eight years. What type of timeshare is this?

Timeshare use

When does a seller's market occur?

When supply is low and demand is high

What age does a person become eligible for real estate licensure in Texas?

18 years

Marcy is found guilty of price fixing. It's safe to assume that she must have done what?

Agreed with a competitor to charge a specific amount

Which one of the following statements is true about specializing in a specific type of property transaction?

Both brokers and sales agents may specialize in one or more types of property.

Which of the following is the most serious consequence of treating a customer as a client?

Breaching your duty to your actual client

What's the point from which elevation is measured?

Datum

In which of the following situations can the state use its power of escheat?

Nadine died with no heirs and no debt.

Is a person who is 18 years old eligible for a broker's license in Texas?

No, because a broker applicant must have experience as a license holder in Texas

The government's authority to do what it can to ensure the health, safety, and welfare of its citizens is called ___________.

Police power

"Separate property" is property most likely acquired ______.

Prior to marriage