Principles of Real Estate 1

Which phrase should Melanie use to avoid excluding anyone on the basis of familial status?

"Children okay with extra deposit"

As part of its penalty for violating antitrust law, Homes4Cheap, Inc. has been ordered to undergo court-ordered supervision. How long can this supervision last?

10 years

What's the longest sentence someone can serve in prison for an antitrust violation?

10 years

If a farm that's for sale measure one and three quarter square miles, how many acres is it?

1120

Harold is on a month-to-month lease. What must Harold do to terminate his lease in accordance with Texas law?

30 days notice

A property is 330 feet long by 100 feet wide. How many square feet is the property?

33,000

Prior to receiving his real estate license as a sales agent, Jack must pass the required state exam. What is the minimum passing grade?

70%

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

What's market allocation?

Agreeing with a competing firm on how to split the market

The property management (insert word) cements the agency relationship between the property manager and the owner

Agreement

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

Americans with Disabilities Act

Sherman, who owns property in a life estate, neglects the property, significantly diminishing its value. This is called ______.

An act of waste

Which one of the following statements about real estate licenses is true?

Before you can legally perform any activities that licensed real estate professionals perform, you must have hour real estate license

Which of the following statements is true regarding community property rights and property ownership?

Both partners may own other properties purchased before the marriage separately (in severalty), but any properties purchased during their marriage are owned equally.

Jonathan has always wanted to be a real estate broker, owning his own brokerage and showing other individuals the real estate ropes in Texas. He received his license as a sales agent three years ago today. As he celebrates his third anniversary, he is looking forward to meeting the experience requirement so that he can pursue his broker's license someday. How much longer must Jonathan wait to apply for his broker's license?

Jonathan must wait another full year before he can apply, because the requirement is to be an active agent for 48 of the previous 60 months.

In a real estate transaction, which of the following is established when the parties enter into an agreement voluntarily with full understanding of the contract terms?

Legal competency

After Wynn and Lianne enter into a contract for Lianne to buy Wynn's house, Lianne finds out that there are serious problems with the foundation. Lianne has already signed the contract. Which of the following can she do, if anything?

Lianne can declare the contract void, since a possible misrepresentation of the property invalidated her consent.

Landowners, whose land borders a lake, have what type of water right?

Littoral

If the land is described as "Lot 6 of Block 3 of the East Subdivision plat as recorded in Map Book 18, Page 11 at the Recorder of Deeds," what type of legal description is being used?

Lot and block

Which of the following forms is the listing agency responsible for having seller complete and sign or initial before uploading the property information to the internet?

MLS profile sheet

According to the NAR Code of Ethics, what responsibility do licensees have related to material facts?

Make a reasonable effort to ascertain all material facts concerning each property for which an agency is accepted.

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

Makes sure the terms of the trust are carried out

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.

Which type of property is exempt from the affair Fair Housing Act?

Owner occupied with no more than four units

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

Partition Partition is the term used to describe a specific, divided portion of property that's created as part of a co-ownership termination.

A surveyor created a lot and block survey for a new residential development. The first thing she did when she surveyed the new neighborhood was to reference a metes and bounds land description. From there, she divided the land into numbered lots and blocks. This output is known as a _______.

Plat map The plat map is a detailed map of the given land, including streets, access roads, and measurements between features.

At least 60 days prior to filing a lawsuit under DTPA, what is the consumer required to do?

Provide a written notice to the person against whom the suit is to be filed

An inheritable freehold estate that's a fee simple defeasible (where the grantor can reclaim ownership) is also known as ______.

Qualified Fee

Deed restrictions imposed by a developer who wants to maintain specific standards in a subdivision under development are often called (insert word)

Restrictive covenants

Which of the following is a legitimate and legal way that an exclusive right-to-sell listing agreement may terminate without the seller owning a commission?

The listing agent stops working on the listing

What type of estate involves a piece of real estate that's owned by multiple unrelated individuals who, in addition to their ownership rights, each hold the right to occupy the dwelling unit in one to two week intervals during the year?

Time share

Above all, why should a property manager have some knowledge of systems such as heating, ventilation, air conditioning, structural engineering, waterproofing, plumbing, electrical, gas, oil, water, security, maintenance, and elevators?

To minimize the potential of receiving bad advice on repairs, replacements, and parts

What is the purpose of state constitutions?

To provide a basis for state laws and regulations

What's the purpose of testing for discrimination?

To uncover hidden discrimination

When does express agency exist?

When a written or oral agreement is in place

The ADA was established, among other reasons, the 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 circumstances?

When building or altering old buildings

Jameson is interested in becoming a member of the ESAC. How many years of real estate experience must he have in order to qualify as one of the seven real estate professional members?

five

In Texas, the Information About Brokerage Services form ______.

is required by law

Sima purchased a cooperative. When the sale goes through, what will she own?

shares in a corporation

When members of the Education Standards Advisory Committee are appointed, how many years do they serve?

two

Hank leases 150 acres from Sara and Jesse. He has an option contract attached to his lease, with an option to purchase that can be exercised within the next two years. What type of contract is this?

unilateral

Simon recently passed away. He owned title to his property in severalty, as a fee simple absolute estate. What will happen to his property?

His heirs, as described in his will or the state law of descent, will get the property.

Which of the following options best describes the purpose of sales contract?

It identifies the terms of a real estate sale between the seller and the buyer

Office space in a downtown high rise rents annually at $33.40 per square foot. Max's tenant client is interested in renting two adjacent suites: one is 7,152 s.f., and the second is 3,560 s.f. What's the monthly rental rate?

$29,815.07

A parcel of land measures one half mile by 3,000 feet. If price per acre is $4,200, what's the list price for this parcel?

$763,560 Area = length x width. One mile = 5,280 feet. The area of this parcel is 7,920,000 s.f. ([5,280 ÷ 2] x 3,000). One acre = 43,560 s.f. The parcel is 181.8 acres (7,920,000 ÷ 43,560). So, the list price is $763,560 ($4,200 x 181.8).

Which area of real estate law covers lease agreements?

(1)LANDLORD (2) TENANT

What is a plat map?

A detailed map of a subdivision that includes boundaries, measurements, and distances between points

Which of the following best describes a buyer agency agreement?

A legally binding, written contract between a potential property buyer and a listing agent

Before being issued a real estate license in Texas, the candidate must submit which of the following to TREC?

A legible set of the candidate's fingerprints

What is assessed value?

A percentage of market value; also the amount of property value to which the tax rate is applied

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

A person that was denied credit without explanation or give. Resources that explain why

TREC has a great deal of authority. In addition to enforcing the provisions of TRELA, TREC also has the authority to ______.

Bring legal action and file criminal charges against a person who violated TRELA

What are the four types of government powers?

City, county, state and federal

If a licensee uses escrow funds belonging to one client to assist another client; that licensee could be found guilty of (insert word)

Commingling

Mark is the listing agent for a home owned by the Browns. At the open house, a colleague, Brandon, indicates that he has a buyer for the Browns' home. Mark has had numerous interactions with Brandon on other listings, and found that they don't get along. He really doesn't want to work with him on this deal. In order to behave ethically, what can Mark do?

Cooperate with Brandon because it's in the best interest of his clients.

Johnstone's Realty is a new discount, menu-based brokerage firm. Its approach usually results in a lower listing commission rate than other firms offer. Johnstone's also offers a lower cooperating brokerage split than most other firms. Business is booming for Johnstone's, and the remaining firms in town are concerned. These brokers agree to not show Johnstone's listings to their buyer clients. What is this an example of?

Group boycotting

A registered land surveyor is preparing a plat map that will show elevations and boundaries for a multilevel condominium complex. What is used as a reference point for measuring elevation?

Datum

What type of involuntary lien is placed on a person's estate after their death if there are unpaid debts to creditors?

Deceased person's debt lien

As a real estate licensee in Texas, if you advertise, otherwise market, or deal with a consumer using lies, misrepresentations, fraud, or other deceptive acts, which act are you violating?

Deceptive Trade Practices-Consumer Protection Act

Private mortgage insurance protects the lender in case the borrower takes which of the following actions?

Defaults on the loan

Which fiduciary duty is missing: loyalty, reasonable skill and care, obedience, confidentiality, accounting, and (insert word)

Disclosure

Emilio wants out of his contract, because he doesn't believe his buyer agent is working hard enough to find him a property that meets his criteria. What must happen before the buyer agency agreement can be terminated?

Emilio and his agent must mutually agree in writing to terminate their agreement.

What type of rights to the property does a buyer have during the contract for deed process?

Equitable title rights

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.

There are three types of listing agreements. They are exclusive right-to-sell, (insert word) and open listing

Exclusive agency

Jay has a listing agreement with Maury. Even if Maury finds the buyer during the listing term, Jay has earned his listing commission. What type of listing agreement do they have?

Exclusive right to sell

Which of the following is true regarding express agreements?

Express agreements may be written or verbal.

Which act created an agency to investigate antitrust practices?

Federal Trade Commission Act

Stanford bought a condo. He owns it as a fee simple absolute estate, so he holds all rights of ownership. Which of the following can Stanford NOT do?

Have three dogs, which violates the condo association covenants.

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

Immobility

You're taking to a co-worker at lunch and she mentions she has a box of baby clothes her kids have outgrown and she that she needs to get rid of. You have a baby on the way, so you offer to pay her $25, and she agrees to bring the box to work the next day and give it to you. Which of the following is true in this situation?

Implied contract

Which of the following statements about escheat in Texas is true?

In Texas, the state has the right to use the power of escheat.

In Texas, which of the following documents must you present to a potential buyer client prior to entering into a buyer agency agreement with them?

Information about Brokerage Services

Cindy, a seller, tells the buyer of her home that the property will soon be part of the public water system. She makes this claim based on erroneous information the city supplied to her. The buyer relies upon this information and moves forward with the purchase of the home. This is an example of ____

Innocent misrepresentation

Which of the following is a specific lien filed by a supplier of products for the construction or improvement of a building?

Mechanic's

A legally competent party means that an individual has the capacity, legally, and (insert word) to enter into a contract.

Mentally

What does MLS stand for?

Multiple Listing Service

Nate represents Elena in the purchase of a house. Katherine represents the seller, Timothy. Which of the following statements accurately reflects the agency duties owed?

Nate owes Timothy the duty of disclosure.

Mrs Jones is renting out the upstairs of her house to earn some extra money. She prefers female tenants and will only allow single heterosexual female. Can she legally do this?

No this is housing discrimination

Licensee Cheryl has included a picture of a local church within a posting she just listed on the MLS. She also noted the home's proximity to the church in the description. Is this allowed?

No, because Cheryl is showing preference toward a religious group.

The seller of an interest in a vacant land must include in the contract a notice that the buyer may be liable for additional taxes. What is this notice called?

Notice of additional tax liability

Homeowners policies cover for basic areas: structure, belongings, liability, medical, payments, and

Roof

Sam is an independent contractor licensee working for B & L Realty. Since Sam is an independent contractor, what supervisory responsibility does Sam's broker have?

Sam is considered an employee for licensing law purposes, but he's still an independent contractor for IRS purposes.

To share information with other brokers and potential buyers about why your clients are selling the property, you first need authorization from your clients to release this information. Which forms do you use to obtain this authorization?

Seller's Authorization to Release and Advertise Certain Information

How many members of the ESAC committee are real estate professionals?

Seven

Before using a showing service to automate the scheduling and showing of the property to prospective buyers, the listing agent must have the sellers review and sign the _______ form.

Show Service Information

Fair housing complaints submitted to the Texas workforce commission civil rights division must ______.

Specify the protected class that was discriminated against

Absent a legal description, what are other ways to identify a property?

Street addresses and tax map personal identification numbers

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

Two large local brokerage firms agreed to lower their commission rates to the same amount—approximately 1% less than any other firm in town. After extensive marketing of their new lower rate, these two firms began to see a big increase in the number of listings they received, costing their competitors substantial amounts of money. What about this situation makes it a per se antitrust violation?

The agreement between the two firms

Which entity decides the matter when two different legal descriptions conflict?

The courts

Which of the following best describes condominium ownership?

The space inside the unit itself belongs to the unit owner, and all owners also share in the ownership of the common elements.

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

They're an antitrust violation.

An agent is trying to build up business for a friend's mortgage company. She offers to charge a lower commission rate to clients who use her friend's mortgage company for their financing. What's this an example of?

Tie-in arrangement

Although Ophelia hasn't signed a buyer agency agreement with Randall, she continues to ask him to show her homes, and Randall does. What type of agency is this considered?

agency by ratification

The property management agreement cements what relationship between the property manager and the owner?

agency relationship

Which of the following provides an example of a universal agent?

court appointed guardian

Revealing all material facts to the client that are pertinent to the transaction describes which fiduciary duty?

disclosure