Practice Exam Questions

Which of the following describes the purpose of equitable interest according to Texas rules?

Curb unlicensed real estate sales

According to the Texas Landlord and Tenant Law, which of these is a tenant's basic obligation?

Behave in a way so as not disturb neighbors' peaceful enjoyment

In Texas, how much notice for a lease termination must a landlord give a month-to-month tenant?

1 month

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

7

amendment

A change made to an existing contract

What is a short sale in Texas?

A transaction in which the sales proceeds will not be sufficient to pay off the seller's loan obligations, plus closing costs

When a casualty loss occurs in a condominium property prior to closing, which of the following is true?

The seller must return the unit to its previous condition as soon as possible.

according to TREC's Consumer Protection Notice, how many recovery funds does TREC administer?

There are 2 funds -one that applies to brokers, sales agents, or registered easement or right of way agents one that applies to real estate inspectors

Does the state of Texas have the power to use escheat?

Yes

The addenda that are part of the TREC residential resale contract are listed in the ______ paragraph.

agreement of the parties

addenda

an addition to a contract

What party has the authority to file a complaint or conduct an investigation into a complaint about a real estate licensee in Texas?

TREC

What is the purpose of TREC's Consumer Protection Notice?

Tells consumers how to submit a complaint against a license holder

If a buyer is in default of a TREC One To Four Family Residential Contract (Resale), what may the seller do?

Terminate the contract and receive the earnest money

the buyer is not obligated to purchase the property unless the buyer is given a written statement containing

The appraised value of the property or the reasonable value of the property

What type of rights to the property does the buyer of a property have in a contract for deed agreement?

equitable title rights

who or what entity executes a Texas deed?

grantor

attorney fees section

if one party breaches the agreement and the non-breaching party hires an attorney to enforce their rights, the breaching party can be forced to pay all of the legal expenses of the non-breaching party

Per TREC's One to Four Family Residential Contract (Resale), who is responsible for completing the contract and earnest money receipt?

The escrow agent

To effect a transfer of title by deed in Texas, what must occur?

The grantor must deliver the deed to the grantee and the grantee must accept it.

what is the transfer tax in Texas

there is no transfer tax in Texas

Is it illegal for landlords to interrupt utility services as a means of collecting unpaid rent.

yes

is agency by ratification permitted in texas

yes

What type of rights to the property does the seller of a property have in a contract for deed agreement?

legal title rights

Addendum for Property Located in a Certificated Service Area of a Utility Service Provider

must be used to disclose that the extension of water and sewer services may cost the buyer additional money -required to be given for unimproved real property

Which Texas-specific law will allow you to legally solicit business over the phone if you, or your company, already has an established business relationship (EBR) with that person?

no call list

Does an on-site manager of an apartment complex in Texas need a real estate license?

no, a real estate license is not required

If the buyers wished to purchase some personal property from the seller, where can this be addressed in the sales contract?

non-realty items addendum

Who must disclose the fact that a Texas transaction will be part of a 1031 exchange

party doing the exchange

The seller's disclosure notice is a required form by Texas law; however, it is not ______ by TREC.

promulgated

what types of forms may be used

Licensees must use promulgated forms, but approved, non-promulgated forms are optional.

who are able to sue for unpaid but owed compensation for real estate services rendered?

Only a licensed real estate broker or sales agent may sue to collect commissions.