Real Estate exam part II

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? Round to 10ths of an acre for your calculation.

$763,560

How is timeshare ownership typically split?

52 weeks

If the Texas Real Estate Commission rejects an application for a real estate broker's license, what may the applicant request?

A hearing

Which of the following defines the term 'lis pendens'?

A legal notice that a lawsuit is pending that affects the title of a property.

Who is behaving unethically in the following scenarios?

A licensee who doesn't show potential buyers a home because he believes they aren't a cultural fit.

How does TRELA define the term broker?

A person who, for a commission or other valuable consideration, performs specific real estate-related acts for another person

Who can request a CLUE report?

A property owner

Which of the following statements related to condominiums and surveys is true?

All states require that land used for condominiums be surveyed by a registered land surveyor and that a plat map be prepared to show the elevations of the floor and ceiling boundaries, as well as the vertical boundaries of each unit.

Belinda's client asked her to draft an addendum containing complicated terms that even Belinda doesn't fully understand. Belinda should ______.

Avoid unauthorized practice of law

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

Which of the following Texas licensees are allowed to work independently without being sponsored?

Brokers

Office buildings, shopping centers, and hotels are examples of ____________ properties.

Commercial

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

Defaults on the loan

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

Disclosure

Justin decided to build a privacy fence around his yard. He thought the fence was along the property line, but it turns out he built it one foot inside his neighbor's property. What will an inspector document as existing on the neighboring property?

Encroachment

Douglas is the buyer's agent for a Texas transaction in which May (from a different brokerage) was the listing agent for Mr. Harrison's property (the seller). From whom will Douglas receive his compensation?

From his own broker

Joshua won his lawsuit against Savannah. The judge awarded him $30,000. Savannah was unable to pay, so the court placed a ______ on her home.

Judgment lien

What does the concept "first in time" refer to when discussing lien priority?

Liens are paid based on date of filing.

Oscar bought an older home and hired a contractor to replace the old knob and tube wiring throughout the house. He was invoiced for the work, but 60 days have passed, and Oscar has yet to pay the bill. The electrician filed a lien against Oscar's house. What type of lien is this?

Mechanic's

The "MAIA" acronym helps to identify the four tests of a fixture. Which of the following tests refers to how and whether the item is attached to the property?

Method of annexation

A person in Texas, who is authorized to conduct a real estate transaction under a court order, is:

NOT required to have a real estate license

Five competing brokerage firms in the same area agreed to cooperate in setting a standard commission rate for the area. This makes them guilty of a per se antitrust violation. What is a per se antitrust violation?

No intent needs to be proven

Which of the following statements related to the power of taxation is true?

Property tax liens take priority over any and all other liens on the property in most states.

What, besides mortgage interest, can homeowners deduct from their income taxes for owning property?

Property taxes

Nellie and Victor own a suburban ranch home and fell behind on paying their property taxes when Victor lost his job last year. Victor is working again, but they still haven't saved enough to pay their back taxes. They're worried that the county may begin foreclosure proceedings. What type of lien is this?

Specific

The ESAC makes recommendations for improvements to real estate education to the ______, which is tasked with implementing the new standards.

Texas Real Estate Commission

Niall is helping his seller client prepare a Bill of Sale. What amount should they write in for the sale price?

The amount that was negotiated with the buyer

In Texas, real estate licensure applicants can be rejected for several reasons, including failure to satisfy a current education, experience, or exam requirement within what time period from the application filing date?

Twelve months

Ricky is working for Matt, a buyer client, who is interested in a property at which the listing agent offers compensation to cooperating agents. The listing agent has offered Ricky or any cooperating agent additional compensation if the transaction closes within 40 days. Is this ethical?

Yes, but only if all of the involved parties have full knowledge and provide consent.

You're representing Crystal in the purchase of a house. Crystal has a trust fund and can easily afford the house on which she's made an offer. Which of the following statements is true?

Your duty of confidentiality to your client dictates that you not disclose your client's financial situation to the seller.