Texas Principles of Real Estate 1

mixed-use property

- Any urban, suburban or village development, or even a single building, that blends a combination of residential, commercial, cultural, institutional, or industrial uses, where those functions are physically and functionally integrated, and that provides pedestrian connections.

special purpose property

A category of real property created as a result of combining the land and its improvements for a single highest and best use

special purpose

A church is a definition of a _____________ ____________ property.

market comparison approach

A means of comparing similar type properties, which have recently sold, to the subject property. Commonly used in comparing residential properties.

residential property

A type of property that includes one to four dwelling units

assessed value

A valuation placed upon a piece of property by a public authority as a basis for levying taxes on the property.

A

All property that is not land and is not permanently attached to land is known as...? APersonal Property BReal Property CReal Estate DFixture

general agent

An agent with full authority over one property of the principal, such as a property manager

special agent

An agent with limited authority to act on behalf of the principal, such as created by a listing

mixed use property

Any urban, suburban or village development, or even a single building, that blends a combination of residential, commercial, cultural, institutional, or industrial uses, where those functions are physically and functionally integrated, and that provides pedestrian connections

common areas

Areas in a condominium that are used by all residents.

improvements

Changes or additional made to a property, such as walls and roads. These typically increase the value of a property, except in some cases of over improvement

improvements

Changes or additions made to a property, such as walls and roads are known as...?

true

For tax purposes, real estate taxes can be deducted from personal income...? True False

no

Is value the same as price?

real estate

Land and everything permanently attached to land.

caveat emptor

Let the buyer beware. The buyer must examine the goods or property and buy at his or her own risk

income approach

Mark is looking to purchase a commercial office building. An appraiser was hired to assess the value of the building. What appraisal method did the appraiser use...? Market Comparison Approach Income Approach Cost Approach All of the above

A

Mobile homes not permanently attached to the land are generally considered...? APersonal Property BReal Property CFixtures DTrade Fixtures

true

Modular homes can typically be built quicker and at a lower cost as compare to homes constructed on-site...? True False

yes

Must property inspections must be licensed by the Texas Real Estate Commission...?

industrial property

Property that is used by companies or persons for manufacturing, warehousing, or the assemblage of components

deed

Since a CONDOMINIUM is considered Real Property, each unit owner receives a ____________ at closing.

real property

The aggregate of rights, powers, and privileges conveyed with ownership of real estate.

principal

The employer of an agent

A

The employer of an agent is known as the...? APrincipal BCustomer CEscrow DAll of the above

A

The landowner's ability to take minerals from the earth or to sell or lease this right to others is known as...? AMineral rights BAir Rights CLand Rights DBundle of RightsA

air rights

The rights in real property to the reasonable use of the air space above the surface of the land.

bundle of rights

The rights of an owner of a freehold estate to possession, enjoyment, control, and disposition of real property.

continuing education courses

What courses must be taken after you obtain your real estate license...?

A

Which of the following is an example of a fixture...? AKitchen cabinets BRemovable bookshelves CCurtains DRugs

true

true/false The SHARES OF STOCK are considered PERSONAL PROPERTY NOT REAL PROPERTY

listing contract

A contract in which a property owner employs a real estate broker to market the property described in the contract

shares of stock

A cooperative owner owns ......................... in the cooperative? Shares of stock A deed Title All of the above

planned unit development

A form of cluster zoning providing for both residential and commercial land uses within a zoned area.

cooperative

A form of ownership in which stockholders in a corporation occupy property owned by the corporation under a lease is known as a...? Cooperative Condominium Townhouse PUD

cooperative

A form of ownership in which stockholders in a corporation occupy property owned by the corporation under a lease.

condominium

A form of ownership of real property recognized in all states that consists of individual ownership of some aspects and co-ownership in other aspects of the property.

The licensee is convicted of a felony

A licensee's license may be suspended or revoked if which of the following occurs...? The licensee changes brokerages The licensee is convicted of a felony The licensee does not close a transaction within one calendar year The licensee negotiates on behalf of his/her client

A

A means of comparing similar type properties, which have recently sold, to the subject property is known as the...? AMarket Comparison Approach BIncome Approach CCost Approach DAssessment Approach

cost approach

A non-profit organization in looking to purchase a church. An appraiser was hired to assess the value of the church. What appraisal method did the appraiser use...? Market Comparison Approach Income Approach Cost Approach All of the above

agent

A person authorized to act on behalf of another

agent

A person authorized to act on behalf of another is known as a/an...? Principal Agent Customer Attorney

fiduciary

A person in a position of trust and confidence, as between principal and broker, is known as a...? Customer Principal Client Fiduciary

fiduciary

A person in a position of trust and confidence, as between principal and broker; broker as fiduciary owes certain loyalty which cannot be breached under the rules of agency

real estate broker

A person or an organization acting as the agent for others in negotiating the purchase and sale of real property or other commodities for a fee

real estate salesperson

A person performing any of the acts included in the definition of real estate broker but while associated with and supervised by a broker

non-homogeneity

A physical characteristic of land describing that land as a unique commodity

B

A property manager is an example of what type of agent...? AGeneral Agent BSpecial Agent CSpecific Agent DUniversal Agent

mobile home

A structure transportable in one or more sections, designed and equipped to contain not more than two dwelling units to be used with or without a foundation systems.

cost approach

An analysis in which a value estimate of a property is derived by estimating the replacement cost of the improvements, deducting therefrom the estimated accrued depreciation, then adding the market value of the land.

appraised value

An evaluation of a property's value based on a given point in time that is performed by a professional appraiser during the mortgage origination process.

public parks

Government held properties include which of the following...?

3600

How many points must an applicant earn in order to obtain their real estate broker's license...?

inactive

If a real estate salesperson terminates their employment with their sponsoring broker, the salesperson's license is considered what...? Active Inactive Revoked Suspended

depreciate

Improvements typically ............ in value? Rescind Escalate Appreciate Depreciate

18

In order to obtain a real estate license, an applicant must be at least how many years of age...? 18 20 21 22

trade fixtures

Items that are installed by a commercial tenant and are removable upon termination of the tenancy are known as...? Emblements Trade Fixtures Chattel Real Property

income approach

One of the three methods of the appraisal process generally applied to income producing property, and involves a three-step process - (1) find net annual income, (2) set an appropriate capitalization rate or "present worth" factor, and (3) capitalize the income dividing the net income by the capitalization rate.

fixture

Personal property that has become real property by having been permanently attached or adapted to real property is known as a/an...? Fixture Trade Fixture Emblements Chattel

false

Price is typically equal to the cost of the property...? True False

commercial property

Property that produces rental income or that is used in business. Properties with five or more dwelling units are considered commercial property.

true

Real estate agents and brokers must be careful not to provide legal advice to their clients...? True False

2

Real estate licenses are issued for a period not to exceed how many years...? 1 2 3 4

encourage homeownership

Tax benefits for homeowners are provided in part to...? Discourage homeownership Encourage homeownership Reduce the length of homeownership Decrease mortgage payments

fiduciary duty

That duty owed by an agent to act in the highest good faith toward the principal and not to obtain any advantage over the latter by the slightest misrepresentation, concealment, duress or pressure

price

The amount a purchaser agrees to pay and a seller agrees to accept under the circumstances surrounding a transaction

demand

The amount of goods consumers are willing and able to buy at any given price during any given time period

supply

The amount of goods offered for sale within a given market at a given price during a given time period

A

The amount of goods offered for sale within a given market at a given price during a given time period is known as... ASupply BDemand CGDP DNone of the above

depreciated value

The basis of a depreciable asset used to compute the taxable gain from its sale; the basis is acquisition cost plus capital improvements less accrued depreciation.

brokerage

The business of bringing buyers and sellers together and assisting in negotiations for the terms of sale of real estate is known as...?

brokerage

The business of bringing buyers and sellers together and assisting in negotiations for the terms of sale of real estate.

insured value

The cost of replacing a structure completely destroyed by an insured hazard.

mineral rights

The landowner's ability to take minerals from the earth or to sell or lease this right to others.

land

The material of the earth, whatever may be the ingredients of which it is composed, whether soil, rock, or other substance, and includes free or unoccupied space for an indefinite distance upwards as well as downwards.

educational standards advisory

The mission of the _______________ _______________ ________________ Committee (ESAC) is to regularly review and revise the curriculum standards, course content requirements, and instructor certification requirements for qualifying and continuing education courses...?

customer

The party the agent brings to the principal as seller or buyer of the property is known as the...? Customer Broker Intermediary All of the above

customer

The party the agent brings to the principal as seller or buyer of the property.

qualifying education

The pre-licensing courses needed to obtain your real estate license are considered what type of courses...?

value

The present worth of future benefits

value

The present worth of future benefits is referred to as...?

capital gains

The profit realized from the sale of real estate or other investment. Capital loss occurs when an investment property or another type of investment is sold at a loss.

60 (part I and part II)

The qualifying Real Estate Principles course consists of how many classroom hours in total...?

air rights

The rights in real property to the reasonable use of the air space above the surface of the land is known as...? Mineral Rights Air Rights Land Rights Riparian Rights

demography

The study of the social and economic statistics of a community

land

The surface of the earth, the area above and below the surface, and everything permanently attached thereto is known as...? Land Real Property Real Estate Bundle of Rights

cost

The total dollar expenditure for labor, materials, and other items related to construction

A

The transfer of personal property is typically done using a...? ABill of Sale BDeed CPurchase Contract DAll of the above

Texas Real Estate Dealers Act

This Act established the real estate licensing requirements in Texas in 1939...? Fair Housing Act Texas Real Estate Commission Act Texas Real Estate Dealers Act U.S. Real Estate Licensing Act

real property

Trees and shrubbery that are not cultivated annually are considered...? Personal property Chattel Real property Emblements

cost of labor

Which of the following affects supply...? Employment Cost of labor Population All of the above

disclosure

Which of the following is a fiduciary duty owed by an agent to their client...? Indemnification Disclosure Compensation All of the above

all of the above

Which of the following is a tax deduction a homeowner can take advantage of...? Mortgage interest payments Real estate taxes Loan origination fees All of the above

all of the above

Which of the following is considered a permanent man-made improvement to land...? Fences Sheds Wells All of the above

someone acting under a power of attorney

Which of the following is exempt from having to obtain a real estate license to buy or sell real estate on someone else's behalf...? Someone acting under a power of attorney Architects Appraisers All of the above

proprietary lease

While cooperative owners do not own their apartment unit, they are allowed to occupy the unit through a __________________ _______________.

the agent's sponsoring broker

Who holds the real estate license of an agent...? The agent's sponsoring broker The agent themselves The Texas Real Estate Commission All of the above

manufactured home dealerships

Who is responsible for selling newly constructed mobile homes...? Manufactured home dealerships Real estate brokers Real estate agents Mobile home owners

time-share

license or contractual or membership right of occupancy in a project which is not coupled with an estate in the real property.