Quiz

If the replacement cost of an item with a 5 year life span is $100, and it is 4 years old, what is the actual cash value of the item?

$20

According to the Texas Deceptive Trade Practices Act, businesses with assets exceeding________ are not considered consumers

$25,000,000

A married couple is exempt from paying taxes on capital gains for up to how much in profit if they lived in their house for at least 2 of the last 5 years?

$500,000

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

18

Real estate licenses are issued for a period not to exceed how many years?

2

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

3600

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

60

The replacement cost minus depreciation is referred to as?

Actual cash value

A person authorized to act on another is known as

Agent

The rights in real property to the reasonable use of the air space above the surface of the land is known as

Air Rights

Which of the following factors can impact the value of real estate?

All of the above(Topography, prevailing winds, proximity to transportation)

Which of the following is considered misleading under the Texas Deceptive Trade Practices Act?

All of the above.

A buyer's earnest money should be deposited in which of the following?

An escrow account

The fiduciary duty of care when representing a buyer includes which of the following services?

Assisting with counter offers ONLY

The seller must allow their agent to show the property to prospective buyers. This is an example of what responsibility owed by the seller to the agent?

Availability

The transfer of personal property is typically done using a?

Bill of Sale

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 profit realized from the sale of real estate or other investment is known as?

Capital Gains

The C in the acronym COALD stands for which fiduciary duty?

Care

When a buyer is required to examine the property and buy at his/her own risk, it is referred to as?

Caveat Emptor

Which of the following is an example of a special property?

Church

Properties with five or more dwelling units are considered?

Commercial Property

Property that produces rental income or that is used in business is known as?

Commercial Property

These real estate brokers specialize in the sale and lease of shopping centers and office buildings?

Commerical brokerage

The C in the acronym CIIA stands for

Compensation

The Texas Deceptive Trade Practices Act defines this individual as someone who seeks, or acquires, by purchase or lease, any goods or services?

Consumer

Which of the following courses are taken after you obtain your real estate license?

Continuing education courses

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

Cooperative

Which of the following is NOT a form of real property?

Cooperative.

A non-profit organization is looking to purchase a church. An appraiser was hired to assess the value of the church. What appraisal method did the appraiser use?

Cost Approach

Which of the following affects supply?

Cost of labor

A broker will work for a client with a

Customer

This refers to the party the agent brings to the principal as seller or buyer of the property?

Customer

This Act protects consumers against false, misleading, or deceptive acts?

Deceptive Trade Practices Act

Improvements typically___________ in value?

Depreciate

An agency relationship may be terminated by which of the following?

Destruction of the property, Expiration of the term of an agency, Mutual agreement of the parties

A broker must inform their clients of all known facts related to a transaction. This is an example of what fiduciary duty?

Disclosure

A seller's broker is required to tell their client any relationship they may have with the buyer. This is an example of which fiduciary duty?

Disclosure

Which of the following is a fiduciary duty owed by an agent to their client?

Disclosure

Tax benefits for homeowners are provided in part to

Encourage homeownership

Price is typically equal to the cost of the property?

False

Real estate agents cannot be held liable for any false or misleading information about a property?

False

Value is the same as price

False

Which of the following is considered a permanent man-made improvement to land?

Fences, Sheds, Wells

A person in a position of trust and confidence, as between principal and broker is known as a

Fiduciary

An individual who has not owned real property for at least the previous 2 years is known as a

First-time homebuyer

Most homeowners policies do not cover which of the following?

Flood Damage

A property manager is an example of what type of agent?

General Agent

An agent with full authority over one property of the principal is known as a?

General Agent

What is the most common homeowners policy found in Texas?

HOB

Agency that exists as a result of actions of the parties is known as?

Implied Agency

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

Improvements

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

Inactive

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?

Income Approach

The reimbursement or compensation paid to someone for a loss already suffered is known as?

Indemnification

According to this responsibility, the seller must always provide any known material facts about the property?

Information

Which of the following is an example of a fixture?

Kitchen Cabinents

A defect known to the seller but not to the buyer, and is not discoverable by ordinary inspection is referred to as an

Latent Defect

A broker must always place his/her client's interests above their own. This is an example of what fiduciary duty?

Loyalty

Who is responsible for selling newly constructed mobile homes?

Manufactured home dealerships

A means of comparing similar type properties, which have recently sold, to the subject property is known as the?

Market Comparison approach

The landowner's ability to take minerals from the earth or to sell or lease this right to others is known as?

Mineral rights

Which of the following is a tax deduction a homeowner can take advantage of?

Mortgage interest payments, real estate taxes, loan origination fees

All property that is not land and is not permanently attached to land is known as?

Personal Property

Mobile Homes not permanently attached to the land are generally considered?

Personal Property

What is typically covered in a homeowners policy?

Personal property within the house, the house itself, Liability

A mortgage payment typically includes?

Principal, Interest, Insurance

Government held properties include which of the following?

Public Parks

The exaggeration of the good points of a product, or real property, and the prospects for future rise in value, profits, and growth is known as?

Puffing

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

Qualifying education courses

Land and everything permanently attached to land is defined as?

Real Estate

The surface of the earth, the area above and below the surface, and everything permanently attached thereto is known as?

Real Estate

Which of the following is owed to a customer by an agent?

Reasonable care and skill, Honesty, and Disclosure of any known materials facts.

When an insured homeowner is covered and reimbursed for the actual cost of replacing the damaged property, these cost are known as

Replacement Costs

A market comparison approach is commonly used for this property type

Residential

A type of property that includes one to four dwelling units is known as?

Residential Property

The general uses of real property include which of the following

Residential, Commercial, Industrial

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

The seller is required to provide buyers with which of the following documents?

Seller's Disclosure Notice

A cooperative owner owns_________ in a cooperative?

Shares of stock

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

A real estate agent is an example of what type of agent?

Special Agent

An agent with limited authority to act on behalf of the principal is referred to as a?

Special Agent

The real estate agent in a transaction is considered a ____________ to his/her broker

Sub-Agent

The sale of the property results in the__________ of the agency relationship

Termination

This Act established the real estate licensing requirements in Texas in 1939

Texas Real Estate Dealers Act.

A seller's agent is entitled to a commission after?

The agent finds a buyer who is ready, willing, and able to purchase the property

Who hold the real estate license of an agent?

The agent's sponsoring broker

A licensee's license may be suspended or revoked if which of the following occurs?

The licensee is convicted of a felony

If a real estate salesperson closes on a transaction, who pays the salesperson their commission?

The salesperson's sponsoring broker

A broker as a fiduciary owes certain loyalty, which cannot be breached under the rules of agency

True

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

True

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

True

Property inspections must be licensed by the Texas Real Estate Commission?

True

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

True

Real estate prices are directly related to supply and demand?

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?

True

The present worth of future benefits is referred to as

Value