Texas Real Estate Principals 1 FInal
Which of the following broker comments to a buyer would not violate an agency relationship?
"I will submit your offer at the terms you requested as soon as possible"
The root of the word "severalty" is
"sever," which means "detected from (others)."
The property owned by one person is sometimes referred to as a
"severalty"
Which of the following is one of the typical appurtenances to real property ?
(1) Air rights (2) rights-of-way (3) water rights
The 2 main types of real estate licenses are
(1) Broker's License (2) sales agent's license
Real estate advertising must contain the equal housing opportunity logotype, which should be all of the following
(1) Clear and visible (2) easily seen and understood, sufficiently large
The Fait housing act prevents lenders from imposing different loan terms for all of the following
(1) Constructing a residence (2) Purchasing a residence (3) Improving a residence
True regarding Ethics
(1) Ethics and law overlap (2) Ethics carries on after the law ends (3) Ethics is derived from the Greek word ethos
5 main steps for obtaining an active Texas real estate license
(1) Fingerprinting (2) Passing background check (3) Obtaining sponsorship from an active real estate broker (4) Filing a completed application for license
Which of the following is TRUE regarding a life estate?
(1) It gives the grantee a possessory interest for length of a measuring life (2) the measuring life can be created pur autre vie (3) The measuring life can be created on the life of a designated person.
Ways to create an easement
(1) Prescription (2) Estoppel (3) Implication
All of the following are examples of horizontal arrangements between business competitors that conflict with antitrust laws
(1) Price Fixing (2) Boycotting (3) Dividing the market
federal and state regulations that protect consumers from unfair business practices
(1) Texas Deceptive Trade Practices Act (2) Federal and state antitrust laws (3) Texas Real Estate Fraud Act
True regarding Homestead rights
(1) They protect individuals and families from creditors (2) A homestead is a legal status for real property. (3) A homestead was created by the Texas Constitution
All of the following can cause TREC to revoke or suspend a real estate license
(1) acting negligently or incompetently (2) engaging in dishonest deals (3) making a material misrepresentation regarding a defect
All of the following are necessary requirements to be eligible for a real estate license in Texas
(1) at least 18 YO (2) a lawfully admitted alien (3) a citizen of the US
All of the following are true regarding TAR's citation policy
(1) has a grievance tribunal that examines complaints (2) provides an expedient way to handle ethics complaints (3) offers full due process to a complaint respondent
TREC regulates all of the following
(1) real estate inspectors (2) residential service companies (3) timeshare developers
All of the following are true regarding real estate sales associates
(1) they are licensed sales agents sponsored by a broker (2) a sales associate who has a sals agent license must be sponsored by a broker (3) a person with a broker license may operate independently or put his or her license under a sponsoring broker.
All of the following are responsibilities of the Texas Real Estate Commission
(1)issuing licenses and certificates of registration (2) Implementing continuing education requirements (3) setting standards for real estate schools
43,560 square feet is equal to
1 acre
The Education Standards Advisory Committee has ____ members appointed by the Commission
12
Active sales agents and brokers may renew their licenses by submitting proof of completing ______ hours of continuing education
18
The Education Standards Advisory Committee was created in
2012
in 1845, Texas became the _____ state admitted to the United States of America
28th
Of the total amount of members, the Education Standards Advisory Committee has _____ members who are real estate instructors or owners of TREC- approved real estate schools
4
A mile is equivalent to
5280 FT
It is a good idea for a new licensee to have at least _______ of living expenses set aside
6 MONTHS
Of the total amount of members, the Education Standards Advisory Committee has _____ members with at least 5 years of active participation in practicing real estate
7
There are _____ protected classes under the Fair Housing Act
7
Private mortgage insurance (PMI) is extra insurance when a loan is more than _______ of the home's value
80%
DTPA
A Texas consumer protection law (The Texas Deceptive Trade Practices Act (the "DTPA") is a powerful statute that provides consumers of goods or services (including real estate) with relief for certain acts by the Sellers of such goods or real property, such as a residential home. Its express purpose is "protecting "consumers against false, misleading, and deceptive business practices, unconscionable actions, and breaches of warranty, and providing "efficient and economical procedures to secure such protection.)
Meander Line
A boundary that is a lake
Listing Agreement
A contract between the property owner and the brokerage to place properties for sale with the brokerage
What is a fee estate that contains a condition that if violated, could lead to the termination of the estate?
A fee simple subject to condition subsequent
What is a business organization that enters into a contract with other businesses for a fee in order to operate under the franchisor's name and guidance?
A franchise
What removes a portion of the value of a person's primary residence from the calculation of what a person owes for property taxes?
A homestead exemption
What is the primary difference between a joint tenancy and a tenancy in common?
A joint tenancy has a right of survivorship
Which of the following does not have to be in writing according to the statute of frauds
A lease that lasts six months
What is a tenant's possessory estate in land or premises?
A leasehold
What is a cooperative listing service conducted by a group of brokers, usually members of a real estate association?
A multiple listing service
Remodeling
A property involves performing alterations and upgrades to an existing property for aesthetic appeal, and it can consist of a new facade, landscaping, space reconfiguration, and upgraded parking or lighting.
Which of the following statements is true regarding a street address?
A street address tells you how to find a property
Which of the following tenancies is often referred to as a holdover tenancy?
A tenancy at sufferance
Which of the following permits a buyer to exercise the option to terminate the sales contract provided he or she pays the seller an option fee?
A termination option clause
What is a voluntary nonprofit organization of independent and competing business units engaged in the same industry or trade?
A trade organization
trade association
A voluntary, nonprofit organization of independent and competing business units engaged in the same industry or trade, and formed to aid in the industry problems, promote its progress, and enhance its service
All of the following are true regarding TAR's citation policy, Except it:
Accepts any and all complaints against a licensee
Which promulgated form below is used if the seller reserves all or a portion of the Mineral Estate
Addendum for Reservation of Oil, Gas and other minerals
The Civil Rights Act of 1968 disallows discrimination based on all of the following, except
Age
Which of the following is not true regarding the law of agency?
Agency agreements involving real property should e oral rather than in writing
Which of the following is true regarding a merger clause?
All Apply (1) A merger clause is referred to as an entire agreement clause (2) Many standard written contracts contain a merger clause (3) A merger clause is referred to as an integration clause
What information should be included in a listing package?
All Apply (1) Property-marketing plan (2) Graph showing community pricing trends (3) Property profile
The initial land area of the Republic of Texas included parts of
All Apply - (1) New Mexico (2) Oklahoma (3) Wyoming
A land survey should always show the
All Apply - (1) Occupied lines (2) Extent of any mismatch (3) deed record lines
Which of the following materials commonly used in home construction can cause medical problems like diseases and allergies?
All Apply- (1) Asbestos (2) Urea formaldehyde (3) Radon gas
Contracts are discharged by
All Apply- (1) Assignment (2) Performance (3) Breach
Which of the following is true regarding a seller's role under a listing agreement ?
All Apply- (1) Being honest in relating the condition of the property to the listing agent and prospective buyers (2) Maintaining the property in "showing" condition (3) Allowing flexibility in regard to property being available to show
Which of the following is a material fact that may affect a property's value and desirability?
All Apply- (1) Zoning violations (2) Absence of working smoke detectors (3) Presence of termites or dry rot
Which of the following is true regarding property being taxed
All Apply. (1) All property within the locality of the state government is taxed (2) All property within the locality of the local government is taxed (3) all property is taxed unless specifically exempt
Which of the following is a top reason that homes fail to sell ?
All apply (1) Condition (2) Location (3) Price
Which of the following is a fundamental reason for requiring a land description and survey in a real estate transaction?
All apply (1) Relationship of property to adjoining properties (2) Existence of the property (3) Relationship of occupied lines to recorded lines
Intangible personal property includes
All apply - (1) Certificate of deposit (2) Bonds (3) stocks
Which of the following is true when writing the legal description in the contract
All apply - (1) To sell real property in Texas, the contract must have a legal description of the property to be conveyed (2) An inaccuracy in the legal description can create possible financial liability on the part of the broker (3) An inaccuracy in the legal description can create serious problems for the owner
What does the phrase "right to sell" mean?
All apply- (1) It does not authorize the broker the right to convey any property belonging to the principal unless the agent has a power of attorney to do so. (2) It does not authorize the broker the right to enter into an agreement on behalf of the seller (3) It means the right to find a buyer
Which of the following is true regarding a nonexclusive listing?
All apply- (1) It is a listing agreement that gives the seller the right to retain more than one agent simultaneously (2) The first broker to obtain a buyer who meets the terms of the listing, and whose offer is accepted by the seller, earns the commission (3) The first broker to obtain a buyer who meets the terms of the listing, and whose offer is accepted by the seller, is the procuring cause of the sale.
Regarding complaints of ethics violations, typical disciplinary actions include
All choices - (1) Probation (2) Fine (3) Reprimand
Which of the following is true regarding the employee federal income testing purpose for real estate sales agents or broker-sales agents
All choices apply (1) A real estate sales agent or broker-sales agent is not considered an employee for federal income testing purposes. (2) The IRS does not consider real estate licensees independent contractors (3) Real estate licensees have been classified by the IRS as statutory non-employees
Every state passes statutes to __________ common law principles.
All choices apply (1) Codify (2) clarify (3) Change
Good sources of connecting with prospects include:
All choices apply (1) Open houses (2) FSBO (3) Introductory calls
Common law agency gets its authority from the:
All choices apply (1) customers that originated from pre-colonial England (2) Laws that were common (3) subsequent judgements and case law that have enforced and re-affirmed the customers
Exceptions to the professional service exemption include:
All choices apply (1) making an express misrepresentation of a material fact that cannot be characterized as advice, judgement, or opinion. (2) failing to disclose material information (3) Following an unconscionable action or course of action that cannot be characterized as advice, judgement, or opinion.
"Do-not-call" restrictions do not apply if:
All choices apply (1) the person is already your customer (2) you have written permission to call the person (3) you have a personal relationship with the person.
The CRA requires that lenders meet their local communities; needs first by lending to low to moderate income families for:
All choices apply - (1) small business (2) housing (3) farming
A sales agents should align with a brokerage firm that adheres to both legal and ethical business practices. It is important to follow all the correct procedures for :
All choices apply - (1) transaction paperwork (2) trust funds
TRELA does which of the following
All choices apply- (1) Combats dishonesty among real estate brokers and their sales agents (2) Stops fraudulent activities among real estate brokers and their sales agents (2) Requires real estate brokers and their sales agents to have licenses
The Education Standards Advisory Committee is responsible for reviewing and revising
All choices apply- (1) Curriculum standards (2) course content requirements (3) Instructor certification requirements
Which of the following statements is true regarding the Community Reinvestment Act?
All choices apply- (1) Requires that lenders meet their local communities' needs first (2) Encourages regulated financial institutions to serve their immediate community's needs. (3) Requires that lenders lend to low to moderate income families for housing, small business, and farming
Which of the following statements is true regarding NR and TAR
All of the choices apply - (1) A member of NAR is a REALTORA (2) TAR performs the same function as NAR but on the state level (3) A member of NAR must follow NAR's rules Code of Ethics
Which of the following statements is true raguarding the real estate cycle?
All of the choices apply - (1)The real estate cycle undergoes similar phases as a business cycle (2)The real estate cycle undergoes similar turning points as the business cycle (3) The cyclic nature of the real estate marker allows economists to identify the turning points as they occur.
Tenancy in Common
Allows two or more people to hold unequal percentages, but have an undivided interest in the whole
Which of the following is not one of the four characteristics of tenants in common ?
Always having equal interests
Comparative Market Analysis
An Analysis of recent sales and listings to help potential sellers determine an appropriate listing price for their property is a(n):
Which of the following is exempt from TRELA licensing requirements?
An attorney
Capitalism
An economic system in which most of the economy's resources are privately owned and managed
Listing Agreement
An employment contract between a property owner (as principal) and a real estate firm/broker (as agent) by which the broker is employed to find a ready, willing and able buyer for the owner's real estate on the owner's terms, for which service the owner agrees to pay a commission.
Which of the following is not true regarding homestead rights ?
An owner can waive his or her homestead rights
Which of the following describes a person's status on the deed, if the person obtains title to property in severalty?
An unmarried man
Advertisement
Any form of communication by or on behalf of a license holder designed to attract the public to use real estate brokerage services is a(n)
Personal Selling
Any form of direct communication between a sales agent and a customer
Texas Real Estate Commission
Any person who wants to engage in the real estate business and act as a real estate broker or real estate sales agent within the state of Texas must obtain a license from the
If a person wants to take advantage of the homestead tax exemption to reduce the amount of property tax owed, he or she would file a
Application for Residential Homestead Exemption
Monuments
Are Man-made objects such as stakes or iron posts used by surveyors as points of reference
James, a real estate sales agent, cause panic selling when he told people that the value in their neighborhood was declining because the majority of the homes had recently been purchased by minorities. What James did was illegal and is called:
Blockbusting
A person who purposely violates or fails to comply with The Real Estate License Act commits an offense, Which is a:
CLASS A MISDEMEANOR
Which of the following is true regarding the "do-not-call" rules
Calls must be made between 8am-9pm
short term fluctuations
Changes in business and economic activity that occur within a year
How should a sales agent align him or herself with regard to a brokerage firm ?
Choosing a firm that adheres too ethical conduct
which of the following is not found in an Annual Escrow Statement?
Comparable home sales
The most basic kind of money damage available to a plaintiff for a breach of contract is ________ which is the amount of money that will put the plaintiff in the same position that the plaintiff would have been in if the other party had not breached the contract.
Compensatory Damage
Which of the following is not one of the five main steps for obtaining an active Texas real estate license?
Completing a physical and mental health check
Which type of CID is characterized by fee ownership of the dwelling unit with a tenant in common interest in a portion of real property?
Condominium
The rule that states any term in a contract that is ambiguous should be interpreted against the party that drafted the contract is known as
Contra Proferentem
When describing types of business ownership, the characteristics of perpetual succession pertains to a
Corporation
Which of the following is not a duty of TREC?
Creates state laws, statutes and rules
A legal description should be written in such a way that any person in the future would be able to understand the _______, with reasonable certainty
Description and determine the property location
When Texas became a state in 1845, title and ownership of real property were governed by
English Common Law Principles
A(n) _________ is a fund the lender may require the borrower to establish in order to pay mortgage default insurance, property taxes, and/or hazard insurance as they become due on the property during the year
Escrow Account
which of the following statements is NOT true regarding ethics
Ethics and law are one in the same
The _____ protects consumer identity and credit information and is designed to promote the accuracy, fairness, and privacy of the information collected and maintained by credit reporting agencies.
Fair Credit Reporting Act
Texas laws and regulations that address discrimination in housing compliment the
Fair Housing Act
What do fair housing laws require real estate offices to display
Fair Housing Posters
The Fair Housing Law states that it is unlawful to publish ads that sell real estate that discriminate against any of the following, except:
Familiar status
What are the two broad categories of encumbrances?
Financial and Non-Financial
Protection under the Americans with Disabilities Act (ADA) includes all of the following handicaps except:
Financial dependence
The purpose of the _______ is to maintain and promote economic compensation in trade and commerce occurring wholly or party within the State of Texas and to provide the benefits of that competition to consumers in the state
Free Enterprise and Antitrust Act
What are naturally occurring plant growth, such as grasses, trees, and shrubs?
Fructus naturals, which are real property
In what type of business structure is each owner jointly and severally liable
General Partnership
The basis of the NAR Code of Ethics is the
Golden Rule
By observing the code of ethics, members of local state and national trade associations promote __________ and harmony and further the interests of the real estate industry as well as the public
Goodwill
The _________ deals with high-rate, high - fee home loans that are refinance or home equity Installment loans and law addresses certain deceptive and unfair practices in home equity lending
Home Ownership and Equity Protection Act of 1994 (HOEPA)
Which of the following is not an example of an attached home?
Houseboats
Which of the following is not one of the ways to create an easement
Hypothecation
Garages, fences, and swimming pools are examples of:
Improvements
A TREC approved form, the _________ presents a broker's duties and obligations to a prospective client or customer. However, it does not establish or disclose an agency relationship or the existence of an agency relationship between two parties.
Information About Brokerage Services (IABS) statements
The_______ Form published by TAR is designed to be used by the seller to deliver additional information to the buyer about the septic system or other on-site sewer facility
Information About On-Site Sewer Facility
________ is personal property that cannot be seen, felt, weighed, measured, or perceived by the senses
Intangible Personal Property
Employment of prudence and caution to avoid misrepresentation relate to a licensee's special obligation to exercise:
Integrity
An Easement
Is a right, privilege, or interest limited to a specific purpose which one party has in the land of another
What is one drawback of metes and bounds description
It can be too difficult to decipher
Which of the following is not true regarding joint tenancy?
It does not have the right to survivorship
What gives an indication of a home's architectural style?
Its shape
__________ is the number of jobs added or deleted if the growth is negative or deleted if the growth is negative, to the number of jobs in an area.
JOb Growth
Bob, Fred, and Jack own equal interest in a parcel of land as tenants in common. Without the consent of the others, Jack leased his 1/3 share to Tom. Which statement is correct?
Jack is entitled to all of the rent collected from Tom
In the event that property is occupied by a tenant, the TAR __________ form enables the agent to obtain permission from the tenant to place a keybo on the property
KeyboAuthorization by Tenant
________ support is a landowner's legally enforceable right to have his or her land in its natural condition held in place from the sides
Lateral
A partnership agreed to by two or more individuals having one or more general partners and one or more limited partners is a
Limited Partnership
A private employment agreement between a seller and a real estate broker is a :
Listing Agreement
What is the main reason for requiring a description and survey of the improvements on a piece of land?
Locating improvements and determining the existence of unrecorded easements
All of the following are responsibilities of the Texas Real Estate Commission, Except
Maintaining an extensive database of real property sales
The most common datum used in the United States is
Mean sea level
Which of the following is the oldest method to describe land?
Metes and bounds system
In regard to accuracy, Global Positioning Systems analyze data and map the exact position of the points
Millimeters
Which survey would benefit a company whose operation is centered around the discovery and extraction of precious metals?
Mining Survey
TREC regulates all of the following, except:
Mobile home dealerships
Adopted in 1913, the _______ provided a model for many of the original state licensing laws
National Association of REALTORS Code of Ethics
The seller's ___________, which is a line-b-line description of the fees associated with the sale of the home, shows the approximate net amount of money sellers can expect to receive for a specified sales price before paying off any mortgages
Net Sheet
A person who has the right to possess, use, and convey, individually or with the joinder or another person, all or part of the homestead is known as a(n)
Owner
Which of the following is not true regarding ownership in severalty?
Owner's description on the deed is listed as a married man or woman
What is the easiest form of ownership?
Ownership by one individual
Property owned by one person or a single corporation whose rights to the property are not shared with any other person is
Ownership in severalty
Which of the following is not a basic step a homeowner can take to secure his or her home?
Participating in a homeowners' association
Minerals in place are those minerals that have not been removed from the ground. As soon as they are brought to the surface, those minerals become:
Personal Property
The main difference between cultivated and wild plants is that cultivated plants may be considered _________ before they are harvested
Personal Property
The _________ of a roof determines its life expectancy
Pitch
Personal property may be _____ as a security for a loan
Pledged
An easement given to an owner of land who adversely and openly crosses another owner's land uninterrupted over a certain amount of time is an easement by
Prescription
The_______ affirms that the maximum value of a property tends to be set by the cost of acquiring an equally desirable and valuable substitute
Principle of substitution
Which of the following is considered community property
Property acquired by a husband and wife during a valid marriage
Which of the following is not true regarding property?
Property cannot be personal
Indemnification
Protection against damage, loss or injury or to make compensation for damage loss or injury
The Fair Housing Law states that it is unlawful to publish ads that sell real estate that discriminate against any of the following
Race, Sex, Religion
TREC also licenses
Real Estate Inspectors, Residential service companies, Real estate Schools ( All Choices Apply)
All of the following are examples of horizontal arrangements between business competitors that conflict with antitrust laws, except:
Redlining
What is the practice of designating certain neighborhoods as areas where loans will not be made?
Redlining
___________ is issued by the Bureau of Consumer Financial Protection to implement the provisions of the Equal Credit Opportunity Act
Regulation B
The purpose of _______ is to promote the informed use of consumer credit by requiring disclosures about its terms and costs
Regulation Z
Which of the following is not one of the federal and state regulations that protect consumers from unfair business practices
Regulations B
The Civil Rights Act of 1968 disallows discrimination based on all of the following
Religion, nation origin, race
All of the following are types of routine maintenance, except:
Renovating
The Fait housing act prevents lenders from imposing different loan terms for all of the following; except
Renting a residence
The amount it will cost to rebuild the same structure if it is built today is known as:
Replacement Value
The ________ form is used to authorize the lender to furnish mortgage information to the agent including a payoff and amounts held in escrow
Request for Mortgage Information
The _______ form is used to authorize the lender to furnish mortgage information to the agent including a payoff and amounts held in escrow
Requests for Mortgage Information
Groundwater is governed by the __________, which grants landowners the right to capture the water beneath their property
Rule of Capture
The _______ which is best for single- family homes or condominiums and vacant lots- uses the principle of substitution to compare similar properties by looking at the current selling price of a similar property and adjusting it for any differences to determine the market value for the subject property.
Sales comparison approach
in 1836, Texas won its independence from Mexico at the Battle of
San Jacinto
The TAR ___________ form can be used in the event that the seller wishes to disclose otherwise personal information to hasten the sale
Seller's Authorization to Release and Advertise Certain Information
Which of the following is not exempt from property taxes?
Single-family homes
The Fair Housing Act protects against discrimination based on all of the following, except:
Socioeconomic status
In 1528, explorers and missionaries claimed the land that is now Texas for the king of
Spain
Property taxes and special assessments are SPECIFIC LIENS, whereas other government taxes, such as unpaid income taxes, are GENERAL LIENS.
Specific liens; General Liens
Anyone seeking relief for a breach of contract must do so within the guidelines of the:
Statute of limitations
Real Estate License Act
Statute that is administered and enforced by the Texas Real Estate Commission (TREC), which is a state agency
In 1823, an American by the name of _______ took advantage of Mexico's policy to lure American citizens into what would become Texas and led 300 Catholic families to settle in the area of the Brazos River
Stephen Austin
A property that has been "psychologically impacted by an event" is known as
Stigmatized property
The absolute right of the property owner to have his or her land supported from beneath its surface is
Subjacent support
A meeting that involves a substantive discussion regarding a real estate transaction is an example of:
Substantive dialogue
The right to the natural resources lying below the earth's surface are known as
Subsurface rights
Texas Constitution
Supreme law of Texas and establishes the fundamental legal rights of its citizens
Any person who wants to engage in a real estate business and act as a real estate broker of real estate sales agent within the state of Texas must obtain a license from the
TREC - Texas Real Estate Commission
Texas real estate license holders are regulated by
TREC - Texas Real Estate Commission
The ________ enforces the provisions of TRELA and determines administrative policy
TREC - Texas Real Estate Commission
(TRELA) is the law governing Texas real estate license holders and is enforced by (TREC)
TRELA;TREC
Which term refers to a mode or method of ownership or holding title to property?
Tenancy
Paul, Ted, and Donna purchase a parcel of real property. Because Paul contributed $10,000 to the purchase price while Ted and Donna each contributed $5,000 apiece, Paul holds a 50% share while Ted and Donna hold a 25% share apiece. Without knowing anything more, it is clear that they hold title as:
Tenants in common
The Canons of Professional Ethics and Conduct are found in the __________. Rule 531.19 of the Canons addresses discriminatory practices
Texas Administrative Code
The Real Estate License Act (TRELA) is found in the
Texas Occupations Code
The _________ guarantees free public access to beaches on the Gulf of Mexico
Texas Open Beaches Act
The _____ is the legislation that lists and explains the property tax laws in Texas
Texas Property Tax Code
Which Texas law required a surveyor to create a Condominium Regime for each development showing a cube of air rights
Texas Uniform Condominium Act
The _______ has the authority to investigate purported violations of the Texas Fair Housing Act.
Texas Workforce Commission Civil Rights Division
Which of the following is NOT true regarding a sponsorship agreement ?
Texas law requires a written sponsorship agreement
What law prohibits discrimination based on race in all property transactions?
The 1866 Civil Rights Act
Who is the landlord in a written lease agreement?
The Lessor
License holders are required to follow the provisions of _______ in all transactions and to deal with the public in a competent and honest manner
The Real Estate License Act
Which of the following is NOT true regarding the Residential Buyer/tenant Representation Agreement?
The Residential Buyer/Tenant Representation Agreement is for commercial property
Which of the following is the basic federal antitrust statute
The Sherman Antitrust Act of 1890
Licensees must use contract forms prepared by
The Texas Real Estate Broker- Lawyer Committee and approved by TREC
Which of the following signifies a buyer's seriousness of his or her offer to purchase?
The buyer's earnest money
What happens if an employing brokers license is suspended or revoked
The employed sales agent must transfer his or her license to another broker
What law provides funding to public and private entities that formulate or carry our programs to prevent or eliminate discriminatory housing practices?
The fair initiatives program
Which of the following is NOT true regarding a life estate?
The measuring life is always the grantee's life
Which of the following is not true regarding a sole proprietorship?
The owner is not personally liable for all debts
What right gives an owner of property the ability to live on the property and to exclude others from access?
The right of possession
Which of the following is NOT one of the 5 rights under a Mineral Estate?
The right to purchase
Which of the following is NOT one of the 5 basic elements for creating an easement by prescription?
The use of the land must not be adverse to the owner
Which type of undivided interest ownership is usually for a set portion of time each year?
Timeshare ownership
What protects a property owner against loss if the title to the property is shown to have a defect
Title Insurance
What are fixtures attached to real estate by a tenant, usually for the purpose of conducting business from a commercial property?
Trade Fixtures
When selling unimproved land that will be used for residential purposes , the seller must disclose if there are any:
Transportation pipelines on or under the property
What types of foreclosures are available under a deed of trust
Trustee's sale and judicial foreclosure
The _____ is aimed at promoting the informed use of consumer credit by requiring disclosures about terms and costs and also requires the lender to state a maximum interest rate in variable rate contracts secured by a borrower's dwelling
Truth in Lending Act
____________ is defined as taking advantage of the lack of knowledge, ability, experience, or capacity of the consumer to a grossly unfair degree.
Unconscionable action
which of the following "four unities" is the ONLY ONE that a joint tenancy and a tenancy in common both share?
Unity of possession
both REALTORSA (TAR) and the National Association of REALTORSA (NAR)
Usually, Members who join a local Association of Realtors automatically become members of the Texas Association of:
What type of easement allows employees of a utility company to gain access to the property for installation and maintenance?
Utility Easement
Which of the following is NOT one of the typical appurtenances to real property ?
Utility and trade rights
Which contract is binding and has all the basic elements required by law?
Valid
Fraud, menace, or duress can cause a party to reject a(n)
Voidable contract
When a property owner chooses to borrow money by offering his or her property as security for the loan a(n) ______ lien is created
Voluntary
Waters located on, adjacent to, or beneath one's property are associated with:
Water rights
Secret Profit
What occurs when a licensee is compensated without the full knowledge and consent of the parties in a real estate transaction
When is a buyer representation agreement used?
When a buyer employs a broker to help locate property
Monopoly
When a person or group has exclusive control over a product or service within a given region
When is the equal housing opportunity logotype in real estate advertising too small?
When the size of the logotype is so small that the facial features (ethnicities) of the people are not clearly distinguished
Rule 535.43
Which rule established the responsibilities of the Education Standards Advisory Committee?
All of the following are true regarding real estate sales associates, except
a broker who puts his or her license under a sponsoring broker is known as a sales associate
All of the following are necessary requirements to be eligible for a real estate license in Texas, except being:
a collage graduate
When establishing an agency with a written contract, an agent should always make sure the client receives:
a copy of all signed documents
Which of the following would not fall under the definition of a house?
a motor home
Deserting property with the intent not to occupy the property as one's residence is known as
abandonment
Deserting the property with the intent not to occupy the property as one's residence is
abandonment
The holder of the oil and gas rights in a dominant estate has the authority to
access the surface from both ingress and egress
All of the following can be done when filling out a promulgated contract form, EXCEPT
adding or deleting items on the form
The rights inherent in the vertical place above the ground level are
air rights
Which of the following statements is true?
all apply (1) Any addendum will overrule the preprinted contract (2) Anything typewritten will overrule any addendum (3) Anything that is handwritten in a written contract that contradicts any other term of that contract will overrule and take precedence
In an effort to distribute its land to small-scale settler rather than land speculators, the State of Texas encouraged family settlement through
all apply (1) land grants (2) low land prices (3) cheap permitting
Undivided interests include
all apply - (1) timeshares (2) business ownership (3) concurrent ownership
The timeshare disclosure statement must include details of the
all apply- (1) name and address of the developer (2) Timeshare plan (3) Description of the amenities and property
Money damages may be classified as
all apply- (1) nominal damages (2) compensatory damages (3) punitive damages
Land surveys are used in the construction process in order to assess
all choices apple- (1) Elevations for flood insurance for home sites (2) topography for engineering designs (3) boundaries for properties
Examples of incorporeal rights include which of the following
all choices apply (1) Easements (2) Mining Claims (3) licenses
Real estate agents who do not comply with the duties and obligations required by law may be subject to
all choices apply - (1) Civil action and penalties (2) Criminal action and penalties (3) action and penalties
Punitive Damages
are awarded not to compensate the plaintiff, but to punish the defendant and are sometimes referred to as exemplary damages
Nominal Damages
are contract damages awarded by a judge or jury as a way to recognize that some legally protected right of the plaintiff has been violated, even if there are no provable damages to which dollar figure can be assigned
Special Assessments
are levied against property owners to pay for local improvements, such as underground utilities, street repair, or water projects
Where does a metes and bounds survey begin?
at the point of beginning
Persuading an owner to sell housing by saying that people of a particular race are moving into the neighborhood is an example of
blockbusting
A broker hired by the buyer to represent his or her interests in locating a certain kind of real property is a(n)
buyers agent
The relationship between demand and supply makes the real estate markets
cyclical
All of the following are material facts that could affect the property's value and desirability, EXCEPT
defects in the seller's desktop computer
Community property interests are severed through
divorce proceedings
If the owner of a sole proprietorship decides to operate under a different type of name, then the owner would have to file a
doing business as a certificate with the county clerk
The land benefiting from creation of the easement is the
dominant tenement
Ownership of the estate is measured by
duration
Annual crops cultivated by tenant farmers and sharecroppers are
emblements
An intrusion into, under, or over the property of another without that person's permission is a(n)
encroachment
Anything that burdens or affects the use or the title of the property is a(n)
encumbrance
The only requirement of unity for tenants in common is
equal right of possession
The ability to earn repeat business is directly related to an individual's
ethical business practices
A set of principles an individual uses to guide his or her own behavior and others is:
ethics
Until all the terms are completed and escrow closes, the sales contract is considered
executory
The most complete form of ownership of land is known as a
fee simple absolute estate
All of the following can cause TREC to revoke or suspend a real estate license, except
following fair housing laws
The statute of limitations for taking action on a real estate contract is
four years
A______ affects all property both real and personal of the owner, such as a judgement lien or federal or state income liens
general lien
The water beneath the surface of the land that fills the spaces and cavities between the rocks and soil is
groundwater
The water beneath the surface of the land that fills the spaces and cavities between the rocks and soil is known as
groundwater
Section 1101.652, Item 32 states that is a licensee who commits a discriminatory act can :
have his or her license suspended or revoked
A sales agent can only accept a commission for completing a real estate transaction from
his or her sponsoring broker
Homestead protection lasts __________ until there is solid proof of transfer, abandonment, or death.
indefinitely
The transfer of loan servicing
is a process in which a loan is sold to a third party who will service the loan in the future.
Ethics
is a set of principals or values by which an individual guides his or her own behavior and judges that of others
Unilateral Rescission
is available to a person who enters a contract without genuine assent because of fraud, mistake, duress, menace, undue influence, or faulty consideration
TREC may suspend or revoke a license if the license holder:
is convicted of a felony in which fraud is an essential element
Unconscionable action
is defined as taking advantage of the lack of knowledge, ability, experience, or capacity of the consumer to a grossly unfair degree.
Tangible personal property
is personal property that can be seen, weighted, measured, felt, or perceived by the senses
Title Vesting
is the evidence that the owner of land is in lawful possession; it is the proof of ownership
From an ownership perspective, in Texas, groundwater:
is the private property of the owner of the overlying land
A large rock or an old tree is an example of a(n)
landmark
If damages to an injured party are expressed in a dollar amount, the innocent party could file a
lawsuit for money damages
A permissive use of land is a
license
All of the following are basic tenancies recognized by law; EXCEPT
life tenancy
The person to whom a life a life estate is conveyed is known as the:
like tenant
The parties in an intermediary relationship are subject to
limited representation
Involuntary liens placed against a property for the non-payment of labor, services, or materials used for improvements on real property are
mechanic's liens
All of the following are four conditions that must be met in order for a Texas broker to receive a commission, EXCEPT
meeting standard commission limits
Owners of a Limited Liability Company are known as
members
Trust funds may not be ________ with funds belonging to the broker
mixed
Insurance that provides coverage for the upper part of a residential loan in the event of default is
mortgage insurance
A taxing district authorized by the Texas Commission of Environmental Quality (TREC) to provide sewage, water, drainage and other services within designated boundaries is known as a(n)
municipal utility district (MUD)
According to the parol evidence rule:
no further outside promises, oral or written, are allowed after establishing a final contract
Property owned by _________ is known as ownership in severalty
one person
A victim of discrimination under the Texas Fair Housing Act has _______ to file a complaint
one year
Texas does not use the Public Land Survey System because it has its own survey system based on
original Spanish Land Grants
The basic element of real estate is
ownership
A __________ is a form of business in which two or more persons join their money and skills in conducting business.
partnership
Typically. a new licensee's first expense will be to
pay for his/her license
To ensure accuracy, if the legal description is complicated, it is good practice to
photocopy and attach the copy to the contract
The extra insurance that lenders require from most homebuyers who obtain conventional loan that are more than 80% of their new home's value is
private mortgage insurance (PMI)
The listing agreement is a contract that employs a broker to
procure a buyer at the price and terms acceptable to the seller
The most common talien is for delinquent
property taxes
Real property is taxed at the local level according to
property value
Prior to the CRA, lenders tended to avoid lending in high-risk communities and neighborhoods in a practice known as
redlining
Confidentiality
refers to discretion in holding privileged information
Loyalty
refers to the duty to put your client's best interest first.
Property tax is a(n) _________ tax because the tax rate is applied uniformly to the property
regressive
The process of modifying equipment, installing, or constructing parts in an existing building to bring a property up to a code with governmental regulations is known as
retrofitting
Based on English Common law, the _______ ties surface water rights to the adjacency of land ownership
riparian doctrine
Regulation
rule issued by an administrative agency to enforce or amplify a statute
A _________ has size limitations - 100 contiguous acres for a single adult or 200 contiguous acres for a family
rural homestead
Real Estate License Act
serves to protect the public in real estate transactions involving a real estate license holder
All of the following are types of concurrent ownership, except:
severalty
If real estate sales advertising uses human models, the media must not include models that
show exclusiveness to a specific group
Lot
single parcel of land that will be sold within a subdivision to a buyer
The most common detached home is the
single- family residence
Real estate advertising must contain the equal housing opportunity logotype, which should be all of the following, except
small so it does not distract the advertising message
A typical clause in an independent contractor agreement states that the _______ owns all listing agreements
sponsoring broker
Water found in bodies of water such as ponds, lakes, and bays and in a flowing watercourse such as a stream or river is known as:
surface water
A(n) ________ is any organization that is legally able to levy and collect tax
taxing authority
Any organization that is legally able to levy and collect a tax is a
taxing authority
Price Fixing
the collaboration of one or more persons setting a fixed price for goods or services to remove the free market's ability to influence prices
All license holders' advertisements must include
the name of the license holder or team
Why must there be a sufficient legal description when testing the validity of a deed
to reasonably locate the property during a transfer of title
Data regarding the configuration of the land's terrain is revealed in a
topographic survey
Natural Attachments
trees, shrubs, crops (growing on land)
All of the following are one of the basic types of houses, except the:
two-and-one-half story house
Diffused Surface Water
type of surface water that occurs after rainfall or snowfall and flows across land from high elevations to lower elevations
A(n) _________ is an interest held under the same title by two or more people, whether their rights are equal or unequal in value or quantity
undivided interest
Net listings are not popular due to the possibility of
unethical conduct by the broker
All of the following are one of the four unities in a joint tenancy, EXCEPT
unity
Under section 1101.652(b), a real estate licensee can cause his or her license to be suspended or revoked for paying any portion of commission or a fee to a(n):
unlicensed associate
The purpose of a real estate association is to
upgrade the reputation and dignity of the real estate business
A(n) ________ is a property that is located within a municipality and is served by police and fire protection as well as three of the following municipality services: electric, gas, sewer, storm sewer and water.
urban homestead
Which of the following often constitutes a red flag in real estate advertising
use of certain terminology
Illegal subject matter can create a _______ contract
void
A contract with a minor is an example of a __________ contract
voidable
Remain with that broker
when sales agent leaves the employ of a particular broker, any listings he or she has will:
A intermediary relationship requires:
written consent from both parties
