STATE PRACTICE EXAM (67)

Question 11 Which required clause in a Texas deed contains the phrase "to have and to hold" and defines or limits the ownership of interest of the grantee?

Habendum $ The habendum clause defines or limits the ownership interest of the grantee.

Question 10 What amount of liability does a Texas licensee who acted in cooperation with another person(s) to commit a third-degree felony have?

Joint and separate responsibility for all damages $

Question 18 TREC receives an anonymous complaint that Holly, the unlicensed assistant at Texas Home and Family brokerage, has been practicing real estate. What will happen next?

Nothing will happen. $ Anonymous complaints made to TREC will not be investigated or otherwise pursued.

Question 7 Buyers of newly constructed homes must follow the procedures established in Chapter 27 of the Texas Property Code in order to do what?

Recover damages for construction defects. $ In order to recover damages for construction defects, buyers of newly constructed homes must follow the procedures established in Chapter 27 of the Texas Property Code.

Question 16 Which entity was formed for the purpose of enforcing the Real Estate Dealers Act in Texas?

TREC $ TREC was formed 10 years after the real estate license law known at the time as the Real Estate Dealers Act was established. Today TREC enforces the laws of the Texas Real Estate License Act (TRELA)

Question 1 You represent a Texas seller, Sully, and when he fills out the seller's property disclosure, you notice he says the roof is "new." You can tell the roof is at least 15 years old, if not older, and will need to be replaced soon. What's your responsibility here?

Tell Sully he must complete the disclosure as truthfully as possible, and that if he lies about the roof, you will tell potential buyers the truth (and then do it, if necessary). $

Question 9 Dana is a licensed broker in Texas. She has one primary location from which she conducts most of her business. However, she does have two additional branch locations. What must be included on all branch license certificates?

The address at which the broker's office is located $ The license certificate for each branch office must state the address at which the broker's office is located.

Question 8 Which of the following statements about Texas business entities is true?

Unless a business entity holds a real estate license, that entity may not act as a broker. $

Question 19 What is the first thing that the earnest money is applied to at closing?

Any cash down payment $

Question 4 Because the seller's disclosure notice is a(n) ______ of the property condition completed by the seller, it does not belong in the Agreement of Parties paragraph 22 of the TREC One To Four Family Residential Contract (Resale).

Disclosure $ The seller's disclosure notice is to be completed by the seller of the property, regarding the known conditions of the property

Question 13 Which Texas-specific law prohibits deceptive trade practices or acts that are "false, misleading, or deceptive"?

DTPA $