real estate
makeup of broker committee
6 brokers, 6 lawyers, one public member
What is an executed contract?
A contract that is not completely performed. (WRONG) An existing contract in which all terms have been fulfilled. A contract that has been rescinded by one of the parties. A contract that has been changed by multiple counter offers. (Lesson Nine, Contacts)
What is a novation?
A new contract substituting the parties and obligations of an original contract.
governmental land use controls include
ALL
it is not the unauthorized practice of law if the form is
ALL
on which of the following grounds may a licensee have his or her license suspended or revoked
ALL
purpose of TREC
ALL
which of the followinf laws affect the mortgage business
ALL
which of the following laws affect the mortgage business
ALL
which of the following.. TREC create contingency
ALL
According to the NAR Code of Ethics, who must agents treat fairly and honestly?
All parties to a transaction
The homestead protection has limitations on the amount of property that can be homesteaded. Which statement is TRUE about the limitations?
An urban property up to 10 acres of contiguous parcels or up to 200 acres of rural property
The federal Fair Housing Act applies to which of the following properties?
Apartment building
Which of the following statements best describes the relationship between ethics and morals?
Ethics are standards of conduct and morals are an individual's belief of what is right and wrong.
How often can homeowners take advantage of capital gains exemption under the Taxpayer Relief Act of 1997?
Every two years
Which of the following types of listing agreements provides that the broker will get paid regardless of who buys the listed property?
Exclusive right to sell
Which term refers to the investment permanence of land?
Fixity
What is the role of ethics?
Guide professional conduct
How are the ownership interests divided between spouses in a community property state?
Half and half
Where do the Cannons of Professional Ethics say the consumer Form 1-2 must be displayed?
In a prominent location in each place of business the broker or inspector maintains
If _______ tax or _______ taxes do not get paid the taxing authority may put a tax lien against the owner's property.
Income/ad valorem
Real Property includes:
Land Improvements A bundle of legal rights All of the above (CORRECT)
When the property occupant has possession for a specified period of time with no ownership rights, he or she has a _______ estate.
Leasehold
The ECOA addresses which type of discrimination?
Lending
Which of the following are NOT included in the five rules in the Cannons of Professional Ethics that were written and are enforced by TREC?
Making more commission
The ECOA prohibits discriminatory practices on the basis of ______.
Marital status
Tom sold and deeded
Mary
Which one of the following terms is an alternative to an assignment of the parties to a contract?
Novation
Which of the following is NOT one of an agent's duties to the principle or client?
Obedience Care and competence Compensation (MIGHT BE THIS) Accounting (WRONG) (Lesson Four, Fiduciary Duties)
How many parties are required to perform in a unilateral contract?
One
Which one of the following statements is FALSE?
Only U.S. citizens may receive licensure. Lawfully admitted aliens may receive licensure. Salespeople must receive broker sponsorship. A person must be 18 years of age or older to receive licensure. (NOT THIS ONE) (Lesson One, The Purpose of Licensing Laws)
What is an attorney in fact?
Person designated as a Power of Attorney to act for another
Which type of property is a development or subdivision that is usually in a recreational area where many different owners share possession throughout the year?
Planned Unit Development or PUD
Both the National Association of REALTORS® and the Texas Real Estate Commission have introductions in their rules for licensees that discuss ideals and ethics. NAR has the _______, and TREC has the _______.
Preamble/ Cannons of Professional Ethics
PITI stands for _______.
Principal, interest, taxes and insurance
The Civil Rights Act of 1866 prohibits discrimination against individuals on the basis of _____.
Race
Which system of land description is also called the "lot-block-tract system"?
Recorded plat system
In which of the following situations would the federal Fair Housing Act apply?
Sale or lease of a home involving a licensed property owner
If an owner is interested in selling his or her property to free up capital..
Sale- leaseback
Which of the following actions does NOT constitute a violation of the Real Estate Licensing Act?
Securing a listing agreement with a religious minority
Requirements to become a Texas real estate licensee include:
Taking the required education classes Passing the Texas Real Estate Exam Being of legal age All of the above (CORRECT)
Which of the following is a type of co-ownership?
Tenancy in common
If two single people are buying property and nothing is specified regarding how they want to take title, they will take title as ____________.
Tenants in common
Which state is a community property state?
Texas
Which of the following statements about license denial is TRUE?
The Commission must give the person immediate, written notice of the license denial.
Which of the following statement is TRUE?
The Texas Real Estate Commission is comprised of 9 members and the Broker Lawyer Committee is comprised of 13 members.
What is unique about an exclusive right to sell agreement?
The broker gets the commission regardless of who sells the property.
Of the following statements, which one DOES NOT describe a condition of eligibility for compensation?
The broker must receive payment only from the principal.
A disabled tenant asks a landlord for a modification to a unit. Which of the following statements is CORRECT?
The landlord can require the tenant to return the property to its unmodified condition at the end of the lease.
In Texas, which fact does NOT have to be disclosed to the customer?
The previous resident committed suicide in the master bedroom of the house.
Which one of the following titles refers to ECOA?
Title VII of the Consumer Protection Act
What is the money in the Recovery Trust Account used for?
To pay an aggrieved party who has won a judgement against a licensee for damages from a real estate transaction
How can brokers make the best ethical decisions?
Treat others as you wish to be treated
What does severance mean?
Turning real property into personal property
Which one of the following elements is NOT required to create a legally enforceable contract?
Unlawful objective
Plants that are cultivated and harvested are considered personal property and are referred to as _____.
WRONG (Lesson 2, Land, Real Estate, Real Property)
method of gaining legal title to real property by the actual open hostile and continuous possession
adverse possession
all liens are encumbrances and an easement is an encumbrance
all true
what would you use to change the terms in a sales contract that has been previouslt agreed by the parties
amendment
under which type of lease will the tenant pay a base rent amount and a percentage of his or her business profits to the landlord
percentage lease
legal doctrine forces a party to keep a promise in absense of a contract
promissory estoppel
When is there no exemptions to the applicability of the federal fair housing law?
real estate licensee is involved.
which one of the follow should not be listed in paragrpah 22 of the contract..
seller's disclosure
what does it mean when a contract has lawful objective
subject adheres to all necessary laws and regulations
which entity approves and promulgates contract forms
the TREC
if a buyer has given the seller earnest money he or she will not receive a credit until
the closing of the sale
who owns the water beneath a property
the owners above the land
which of the following is not a right that comes from power of attorney
the right to make personal investments with the princiapl's funds
what does it mean when a party duscharges a contract
the terms and conditions of the contract have been fulfilled or cancelled
Which entity passed the texas real estate license act
the texas state legislature
what does the title company do after the buyer completes the loan application for his financing
they gather items for closing like the survey..
an oral contract to lease real estate for a four year period is
unenforceable
not a type of acceptance
uniform
homeowner sells his home, he is saif to be separated from his home by
voluntary alienation
which type of listing agreement is the brokers commission determined by the difference between sellers expected sale price and actual
net listing
if two 21 year old parties have an accepted offer for a meth lab...
no bc the contract does not have a legal object
the document the borrower signs that is a promise to pay is called the
note
How much of the capital gains on the sale of Kathy's home is exempt under the Taxpayer Relief Act?
$250,000
What are capital gains tax exemption limits on the sale of an owner's primary residence?
$250,000 if single or $500,000 if married, every two years
Regarding the prerequisites for a broker's license, what is the minimum number of core real estate course hours and years of experience needed by an applicant?
18 semester hours and 4 years of experience (CORRECT
It is the obligation of a real estate agent to be knowledgeable as a real estate brokerage practitioner. The agent should:
Be informed on market conditions affecting the real estate business and pledged to continuing education in the intricacies involved in marketing real estate for others Be informed on national, state, and local issues and developments in the real estate industry Exercise judgment and skill in the performance of the work All of the above (CORRECT)
When must a broker apply for inactive status?
Before license expiration Within one week of license expiration Within one month of license expiration (WRONG) Within one year of license expiration Lesson Seven, Subchapter J)
What object is permanent and marks locational and elevation points?
Benchmark
Which type of relationship allows an agent to conduct business in the name of another agent?
Broker-sponsored salesperson
Which type of report will insurance companies get to determine if there have been any insurance claims on a parcel of real estate in the past five years?
CLUE report
Where will you find the main laws governing real estate license holders?
Chapter 1101 and 1102 of the Texas Occupations Code
Which of the following terms refers to an item in which ownership does NOT transfer through a conveyance instrument such as a deed or will?
Chattel
Which of the following terms refers to an item in which ownership transfers through a bill of sale rather than a conveyance instrument such as a deed or will?
Chattel
According to the Texas Real Estate Commission Sec.1101.202, what document must be prominently displayed in each broker's or inspector's place of business?
Consumer Information Form 1-2
Which of the following are included in the five rules in the Cannons of Professional Ethics that were written and are enforced by TREC?
Discriminatory practices Form 1-2 Fidelity All of the above (CORRECT)
three parties on the deed of trust
borrower, lender, and trustee
a licensed salesperson acts as the principals agent on behalf of the
broker
when both parties agree to cancel a contract it is called
mutual agreement
most essential element for an enforceable real estate purchase contract
contract is in writing
if a lender has to foreclose on a property and does not get enough money to satisfy their loan the lender might seek an
deficiency judgment
how can the government take property previously belonging to the private owners for public development projecta
eminent domain
difference between an implied and express contract
express the parties explicitly state the terms , implied does not
if a party deeds their property to the city to use for anything except the sale of alcohol....
fee simple defeasible
the statute of frauds is designed to prevent injury from which of the following
fraud
it is possible for two people to accidently create a contract by their actions
implied contract
