Texas Principles of Real Estate 1 - Chapter 1

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

Market Comparison Approach

A means of comparing similar type properties, which have recently sold, to the subject property is known as the...? Market Comparison Approach Income Approach Cost Approach Assessment 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 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

General Agent

A property manager is an example of what type of agent...? General Agent Special Agent Specific Agent Universal Agent

Residential Property

A type of property that includes one to four dwelling units is known as...? Commercial Property Mixed-Use Property Residential Property Special Purpose Property

Improvements

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

Public parks

Government held properties include which of the following...? Ranches Churches Office buildings Public parks

3600

How many points must an applicant earn in order to obtain their real estate broker's license...? 270 1200 2500 3600

Satisfy the education requirements and retake the State exam

If a person's license has been expired for more than 6 months, they are required to do which of the following in order to re-activate their license...? Satisfy the education requirements and retake the State exam Pay a renewal fee Pay 2x the renewal fee They are not allowed to re-apply for a 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

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

FALSE

Price is typically equal to the cost of the property...? TRUE FALSE

Commercial Property

Properties with five or more dwelling units are considered...? Commercial Property Industrial Property Residential Property Special Purpose Property

TRUE

Property inspectors must be licensed by the Texas Real Estate Commission...? TRUE FALSE

Commercial Property

Property that produces rental income or that is used in business is known as...? Commercial Property Residential Property Mixed-Use Property Special Purpose 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

TRUE

Real estate prices are directly related to supply and demand...? TRUE FALSE

Brokerage

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

Principal

The employer of an agent is known as the...? Principal Customer Escrow All of the above

Residential

The market comparison approach is commonly used for this property type...? Residential Commercial Industrial Mixed-use

T (True)

The mission of the Education Standard Advisory Committee (ESAC) is to regularly review and revise the curriculum standards, course content requirements, and instructor certification requirements for qualifying and continuing education courses...? T (True) F (False)

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

Qualifying education courses

The pre-licensing courses needed to obtain your real estate license are considered what type of courses...? Continuing education courses Elective courses Qualifying education courses All of the above

Value

The present worth of future benefits is referred to as...? Supply Yield Value Investment

60

The qualifying Real Estate Principles course consists of how many classroom hours in total...? 15 30 45 60

Commercial brokerage

These real estate brokers specialize in the sale and lease of shopping centers and office buildings...? Residential brokerage Apartment brokerage Commercial brokerage Special use brokerage

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

FALSE

Value is the same as price...? TRUE FALSE

Cost of labor

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

Continuing education courses

Which of the following courses are taken after you obtain your real estate license...? Continuing education courses Pre-licensing courses Real Estate Practice courses Real Estate Principles courses

All of the above

Which of the following factors can impact the value of real estate...? Topography Prevailing winds Proximity to transportation 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

Church

Which of the following is an example of a special purpose property...? Church High-rise office tower Shopping Center Self storage facility

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

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