VanEd Principles of Real Estate 1 Practice Quiz Questions
Surface; subsurface; air space.
"Land" includes all _________ area.
All licensed sales agents operating under the Sales agent Apprentice Education (SAE) requirement must verify they have completed minimal qualifying real estate education and Legal Update hours prior to the end of the first_______license term of licensure.
2-year
Due to extremes resulting from 1990s Hurricane Andrew, the unlimited replacement coverage was dropped, and is now capped at ________, depending on the company.
20%-25% of the policy amount.
Which of the following must be provided before the commission will approve the individual's eligibility to apply for a real estate broker license?
4+ yrs. active experience within 60 months preceding the application filing as a licensed real estate sales agent or broker in a different state.
If the seller decides to take the outdoor tool shed, the tool shed changes from being _________.
A fixture to personal property
A moveable item that is permanently attached to the land by a bill of sale, and which transfers with the property, is _______________.
A fixture.
Which of the following would not be considered a fixture in a residential sale?
A garden hose.
A business organizational form in which all general partners actively participate in ownership and management and are liable for all debt and actions, is called ________________.
A general partnership
A form of business organization in which two or more individuals come together for a business purpose and share in the profits or losses of the venture is called ______________.
A joint venture
What type of partnership is formed with the intent to achieve a specific single purpose contract?
A joint venture
What is the "best test" to ensure an item is a fixture or improvement?
A written agreement attached to the contract.
An item, such as Venetian blinds, that is made for a specific area is referred to as a(n)
Adaptation
Out of the 4 possible answers, the most important test of whether an item is a fixture or not is ______________.
Adaptation
What is the focused mission of the WCR?
Advance women as professionals/leaders in the real estate business and industry.
What is the real estate rights above the ground surface called?
Air space.
What contract inclusion determines if rose bushes or a tree are fixtures rather than considered improvements?
An agreement
Reciprocity is defined as _________.
An agreement between states that allows the agent to be licensed in another state.
What constitutes a "service animal"?
An animal that's been trained to aid an individual with a disability.
What is real estate specialization?
An opportunity to work in the area the agent feels most comfortable.
The process of affixing or attaching personal property to the real property so that it becomes a fixture and is considered real property, is called ___________________.
Annexation
The process of attaching/joining personal property items so they become fixtures, is the process of ______________.
Annexation
Items that are attached to the land, made a part of the land, and that include rights or privileges which lie outside the land, but which are attached to the land, are ______________.
Appurtenances
The manner in which a fixture is ________ will determine whether the item is personal property or real property.
Attached
A smoke alarm bolted to the ceiling of a home is considered a fixture because it would pass the test of ______________.
Attachment
When they are part of the sale, how are chattels transferred?
By bill of sale.
How can water and mineral rights be transferred when they are sold separately?
By deed.
Rhonda buys a house in a planned subdivision. Her deed tells her that the use of her property is subject to the terms of the CC&Rs. In the CC&Rs are these restrictions: "nor shall any backyard fence exceed six feet high nor any fence, in front of a house, exceeded four feet", Rhonda apparently thinks that nobody will care when she builds an eight-foot fence around her house to "ensure my privacy". The homeowners association notifies her in writing that she is violating her deed restrictions. Rhonda doesn't respond to repeated warnings, the association then ________________________________.
Can sue her to remove the fence or make it shorter
Homeowners Associations are most likely a feature of _____________.
Commercial (Office) Condominiums
Characteristically, PUDs address issues of ____________.
Common interest communities; condominium ownership; townhouse ownership.
A broker or sales associate that is qualified to answer questions about a specific real estate is said to be ____________.
Competent
What is typically NOT covered through your insurance (replacement cost) coverage?
Concrete driveways and patio.
A requirement of a defeasible fee whereby the grantee's title depends on a specific condition is known as ______________.
Condition subsequent
An estate in real property consisting in an individual interest in airspace within a unit and an undivided common interest in the common areas is known as ______________ ownership.
Condominium
A(n) ______________ gives each member of the association lease rights and ownership interest in a specified unit.
Cooperative
Emblements are _____________.
Crops grown for sale
Which of the following is an example of adaptation
Custom window shades
Which Texas Real Estate License Act Committee is responsible for reviewing and revising real estate continuing ed. course curriculum standards, content requirements, and instructor certification?
Education Standard Advisory Committee (ESAC)
The purpose of the real estate license is to ensure the licensee meets the minimum standard of _____________ mandated by Texas Real Estate Commission (TREC).
Education; Ethics; Competence.
_____________ are farm crops of a tenant farmer, which are sold separately and considered personal property.
Emblements
A statement that commits a property to condominium ownership, is called __________?
Enabling Declaration
Wrongfully staying after the lease has expired exemplifies __________.
Estate at sufferance
What type of freehold estate is almost as extensive as fee simple absolute ownership, but limited by conditions imposed on the current owners by a prior owner.
Fee simple defeasible ownership.
The Interstate Land Sales Full Disclosure Act (ILSFDA) requires any developer selling more than 100 non-exempt subdivided residential lots as part of a common promotional plan to file a statement containing disclosures, which include _________.
Financial statements; Infrastructure developments; Property conditions.
Which of the following is NOT considered to be an "improvement"?
Flag pole
Both Tenancy-In-Common and Joint Tenancy ____________.
Give a person the legal right to "use" the total property even though they only "own" a percentage of the property
The _______________ law contains requirements, provisions, and exemptions pertinent to senior (55 and older) house in.
Housing for Older Persons Act of 1995 (HOPA)
What qualifies a single person to exclude up to $250,000 of capital gain from sale of their home from their income on their tax return?
If the individual meets the ownership and use tests during different 2-yr. periods.
Real property is distinguished from personal property by the real property's __________.
Immobility
What is the base market indicator used to determine the interest rate.
Index
Assumed ______ concerning if items are personal property or fixture can confuse a sale between buyer and seller.
Intent
What full disclosure Act requires developers to file a statement of disclosures?
Interstate Land Sales Full Disclosure Act (ILSFDA)
The potential note rate of an adjustable rate mortgage _________________________.
Is created by adding a fixed margin to a specified index.
What physical characteristics of land make it different from other commodities that are bought and sold?
Its immobility
What type of Title provides each owner an undivided interest in the property and passes property interest to the survivors if one or more of the owners die?
Joint Tenancy with Right of Survivorship.
What does the purchase price of the property typically include?
Land, improvements, and personal property.
A business organizational form in which general partners are liable for all debts and actions, is a _____________.
Limited Partnership
What information does a broker or sales associate typically market?
Market conditions.
What documents individual ownership of the residential condo unit; shared ownership of common areas, and limited ownership of elements (i.e.: parking spaces, gardens, etc.)?
Master Deed
Which Professional real estate organization is open to real estate professionals involved in residential, commercial, appraisal, counseling, and even property management brokerage, and provides training, research, and idea exchange as well as business networking?
National Association of REALTORS (NAR)
Which of the following would NOT be considered an improvement to real estate?
New exterior paint
Joe Green and his wife Mary own a residence as joint tenants. When Joe dies Mary will _______________________________.
Own the property as a tenant in severalty
Budget loan payments include ________ which includes principal reduction as well as interest, taxes, homeowner's and mortgage insurance.
PITIM
Lumber has been delivered for a garage building project. While the lumber is sitting on the driveway, it is considered ______________.
Personal Property
Movable property, also known as chattels, is _______________.
Personal Property
Specifically, whomever holds title to the property owns the property and has the right of ________________.
Possession
A property's _____________ is what a purchaser agrees to pay and what a seller agrees to accept based on circumstances surrounding the transaction.
Price.
Community property is ______________________.
Property acquired during a marriage and considered equally owned
What is the purpose of the condominium association bylaws?
Provide guidelines for administering the HOA and outline the rules and regulations for the owners
Water and mineral rights are included in the definition of _________________.
Real Property
The __________ represents an expected price that should result under specific conditions.
Real estate value
Land, and all things permanently attached to it, is called _____________.
Real estate.
A real estate agent or broker licensed in another state may conduct business in the State of Texas in accordance with TRELA __________ requirements and agreement.
Reciprocity
_____________ typically occur between commercial landlords and tenants where the tenant has remodeled the space.
Relationships
MArc conveyed ownership of a home to his cousin, but reserved the right to continue to live in the home until he dies. The interest the cousin owns while Marc is still alive is a _____________.
Remainder estate
The ________ is the party named in the deed that has the remainder interest upon the death of the life tenant.
Remainderman
Rights change over time. The owner limits their right of possession when they choose to __________________.
Rent the property
A __________ is an interest retained by the creator of a life estate if no remainderman is named.
Reversionary Interest
As long as the property owner/ user abides by local ordinances regarding land use, the property owner has exclusive ______________.
Right of enjoyment
What is the right to keep others off your property called?
Right of exclusion
According to the Interstate Land Sales Full Disclosure Act (ILSFDA), a(n)______________ occurs when a purchaser acquires an equitable interest in the property.
Sale
The "no pets" rule does not apply to _______________.
Service animals
What rights entitle the owner to material below the surface (e.g.: minerals, water)?
Subsurface rights.
The rights to ownership below the surface do not include___________,
Surface or air rights
A process for two or more people coming together to operate an investment, such as partnerships or corporations, is ________________.
Syndication
______________ is a co-ownership where both parties must sign to sell the property.
Tenancy by entirety
What professional realtor association has a mission of promoting and protecting private-property ownership and rights in order to keep homeownership affordable?
Texas Association of REALTORS (TAR)
What laws are intended to regulate the rights and relations between landlords nad tenants?
Texas Property Code.
What Real Estate Act administers and enforces real estate licensing laws in Texas?
Texas Real Estate Licensing Act (TRELA)
What defines an agent's competence?
The ability to follow the real estate standards of a particular discipline.
Real estate specialization offers benefits to ______________.
The consumer; The practitioner.
What is air space?
The entire vertical area above the ground surface.
What types of property sales are exempt from Interstate Land Sales Full Disclosure Act ( ILSFDA) disclosure and registration requirements?
The sale of property to a government agency
Which of the following is required in a tenancy in common relationship?
The unity of possession
When mineral rights and air rights are sold separately ____________.
They are still considered real property.
An interval ownership interest with an exclusive right of occupancy for a specific period of time is a ____________.
Time share
What is the purpose of Housing for Older Persons Act of 1995 (HOPA)?
To ensure senior housing has at least one person age 55 or older in its occupied units.
________________ are installed for and by the tenant to benefit their business, and are removed when the tenant vacates the property.
Trad fixtures
You own a piece of land. Which of the following statements concerning your sale of gravel from the land is true?
When the trucks leave your property with gravel, they are leaving with personal property.
A _______________ is the limit on how much a payment can change per year.
payment cap