Chapter 2
Which act prohibits lenders from discriminating against credit applicants?
The answer is Equal Credit Opportunity Act (ECOA)
Which EPA-approved pamphlet must sellers and landlords provide to prospective buyers or tenants?
The answer is Protect Your Family from Lead in Your Home.
Which of these is authorized to pass rules to interpret, define, and enforce the act's provisions, and includes the authority to promulgate contracts for required use by license holders?
The answer is Texas Real Estate Commission (TREC).
Which of the following laws in Texas govern condominiums?
The answer is Uniform Condominium Act.
Personal property is conveyed by
The answer is a bill of sale.
A trade fixture is transferred by
The answer is a bill of sale. As the trade fixture is the personal property of the tenant, it should be transferred by a bill of sale. Without a bill of sale, the items would be considered the tenant's because they are part of the tenant's trade.
The method of annexation, adaptation to real estate, and agreement between the parties are the legal tests for determining whether an item is
The answer is a fixture or personal property.
An article owned by a tenant and attached to a rented space or building or used in conducting a business is
The answer is a trade fixture.
Which of the following is a legal entity that exists independently of its members?
The answer is all of these. Business organizations, such as limited liability companies, partnerships, and corporations, are legal entities that exist independently of their members.
An example of an appurtenance is
The answer is an easement.
Which of the following is TRUE regarding community property rights?
The answer is any property acquired during a marriage is considered to be obtained by mutual effort.
Mary owned an apartment that included a parking space for her car. This space is called a(n)
The answer is appurtenance.
A man owns one of 20 town houses in fee simple, along with a 5% ownership share in the parking facilities, recreation center, and grounds. What kind of property does he own?
The answer is condominium.
A person lives in an apartment building. The land and structures are owned by a corporation, with one mortgage loan securing the entire property. Like the other residents, this person owns stock in the corporation and has a lease to the apartment. This type of ownership is called a
The answer is cooperative.
Which of the following is considered an artificial person?
The answer is corporation.
Which of the following is NOT a test to determine if an item is a fixture or personal property?
The answer is cost of the item.
Which of the following is NOT a physical characteristic of land?
The answer is cost. The physical characteristics of land never change.
A couple just built a 3,000 square foot home in a brand new subdivision. They have recently found out that a toxic waste dump is being built half a mile away. Typically this will
The answer is decrease their home's value.
What type of association allows all the partners the ability to participate in the operation and management of the business?
The answer is general partnership.
Which of the following is NOT an economic characteristic of real estate?
The answer is immobility.
Which of the following is a physical characteristic of land?
The answer is immobility.
Which of the following can reduce land's value?
The answer is improvements on the land.
Which of the following would be considered a fixture?
The answer is kitchen cabinets.
Real estate is defined as
The answer is land at, above, and below the earth's surface.
What type of business association allows some members to participate in decision making while others are prohibited?
The answer is limited partnership.
An LLC is a form of business organization that combines the most attractive features of
The answer is limited partnerships and corporations.
In a tenant-occupied and -furnished property being used as a produce shop, a free-standing refrigerator would be considered
The answer is personal property. The refrigerator belongs to the tenant. Because it is not attached to the space, it is not considered a fixture or a trade fixture.
The earth's surface to the center of the earth and the airspace above the land, including the trees and water, plus permanent human-made additions, is
The answer is real estate.
Which of the following is NOT a form of co-ownership?
The answer is severalty.
A corporation is a legal entity (an artificial person), according to state law. Property owned by the corporation is owned in
The answer is severalty. With severalty, the rights of all others have been severed away and no one else has any interest. Corporations can own property in severalty because they are considered one entity.
Which act created the Consumer Financial Protection Bureau (CFPB), an independent agency within the Federal Reserve Board, with oversight authority over many of the major federal financial consumer protection laws?
The answer is the Dodd-Frank Act.
Which statement BEST applies to joint tenancy?
The answer is the last survivor becomes a severalty owner.
Which of the following is TRUE about community property?
The answer is the married couple are equal partners in the marriage.
A woman rents space in a commercial building where she operates a bookstore. In the bookstore, she has installed large reading tables fastened to the walls and bookshelves that create aisles from the front of the store to the back. These shelves are bolted to both the ceiling and the floor. Which of the following BEST characterizes the contents of the bookstore?
The answer is the shelves and tables are trade fixtures and may be properly removed by the woman before her lease expires, and the tenant would be responsible to the landlord for any damage that their removal caused to the premises.
An owner purchased an interest in a beachfront property. The owner is entitled to the right of possession only between July 6 and August 10 of each year. Which of the following is most likely the type of ownership that has been purchased?
The answer is time-share. A time-share is for a limited time each year. The rest have ownerships for an undeterminable length of time. All have fee simple ownership except for the cooperative.
A married couple could not hold title by which of the following means?
The answer is title in reservation.
