CE SHOP quiz Module 1 (ones I got Wrong

If the Texas Real Estate Commission rejects an application for a real estate broker's license, what may the applicant request?

A hearing

Grace found herself in a breach of contract situation where the other party met some of the terms but not others. Grace thought it would cost a lot of time and money to sue, so she decided to accept the work that had been done and call it good. This is an example of ______.

Accepting partial performance

Which of the following statements about agency by ratification in Texas is true?

Agency by ratification is permitted in Texas.

Which one of the following says that real estate acquired by either spouse during a marriage (in most cases) is considered community property?

Community property rights

Which written notice must the seller of unimproved real property that is to be used for residential purposes provide to the purchaser of the property, on or before the effective date of a sales contract for the property?

Conditions Under Surface

If a licensee uses escrow funds belonging to one client to assist another client, that licensee could be found guilty of ______.

Conversion

What's the purpose of PMI?

Covers the gap between the actual loan amount and 80% of the LTV

What must a licensee do regarding property the licensee holds directly or indirectly if it becomes the subject of a real estate transaction?

Disclose the interest to all parties to the transaction.

Justin decided to build a privacy fence around his yard. He thought the fence was along the property line, but it turns out he built it one foot inside his neighbor's property. What will an inspector document as existing on the neighboring property?

Encroachment

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

Four years

Which of the following states that the person who committed the fraud, as well as anyone who knew about the fraud, failed to disclose it, and benefited from it, can be held liable for actual damages?

Fraud in Real Estate and Stock Transactions

To qualify for and maintain a real estate license, a business entity must designate someone who:

Holds an active Texas real estate broker license.

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

Which natural resource would involve surface rights?

Limestone

Harmony is looking at the legal description on her purchase contract. It mentions that the plat of her property is recorded in Map Book 12, page 14, at the county courthouse. What type of legal description is this?

Lot and block

Morty, a land surveyor, was called out to survey a property. After doing some research, he located the legal description for the property in question. Now, if he could just find the point of beginning located at the iron pin on the southerly line of state route 117, 30 feet east of the oak tree next to Bear Creek. What type of legal description is Morty working with?

Metes and bounds

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

Nadine died with no heirs and no debt.

When does partial performance of a contract occur?

One or both parties have completed only a portion of the terms agreed to in the contract.

What's the best definition of real property?

Real estate, plus all of the interests, benefits, and rights included in ownership

Licensees ______ clients and ______ customers.

Represent, assist

If an applicant for a real estate license in Texas receives a written notice of denial from the Texas Real Estate Commission, the applicant may accept the denial or:

Request a hearing in writing within 30 days of the notice

In a contract, consideration is the giving of ______.

Something of value in exchange for something of value

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.

Who has full ownership rights to a property, a party with a legal interest or an equitable interest in the property?

The party with a legal interest

Which of the following is true about air rights?

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

In what way is a townhome similar to a condominium?

They both typically have HOA dues.

Shakira is attending an association meeting when, in a small group breakout, her group begins discussing how to deal with the new kid in town: a real estate firm that charges a flat $500 to list properties, then lets the sellers fend for themselves. Why should Shakira leave the discussion?

This conversation sounds like it might become an antitrust violation.

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

Transfer ownership before death and avoid probate

Which physical characteristic of land addresses the concept that the geographic location of a piece of land is fixed and can never be changed?

Immobility

Rhonda and Oliver bought an old schoolhouse with the hope of transforming it into a residence. They owned the property as joint tenants. After Oliver died, how did Rhonda own the building?

In severalty

Can an application for a sales agent license in Texas be terminated if the applicant fails to submit a required fee after the Commission makes written request for payment?

Yes, if the applicant submits the fee after 20 days

You've just purchased a rural property, and the attorney at the closing tells you, "You have a dominant estate." What does that mean to you?

You'll be using an easement across your neighbor Jim's property.