AYPO Real Estate Principles of Real Estate I Exam Study Guide

How much money can a first time homebuyer draw from his or her own IRA without tax penalty for the purchase?

$10,000

An educational institution shall maintain a corporate surety bond or other security acceptable to the commission that is in the amount of:

$20,000

The commission shall maintain a real estate recovery trust account to reimburse aggrieved persons who suffer actual damages caused by an act described by Section 1101.602 committed by:

1. A certificate holder. 2. a license holder. 3. a person who does not hold a license or certificate and who is an employee or agent of a license or certificate holder.

The real estate math section of the exam includes questions on which topics:

1. Depreciation 2. Amortization 3. Interest

A person may not sell, buy, lease, or transfer an easement or right-of-way for another, for compensation or with the expectation of receiving compensation, for use in connection with telecommunication, utility, railroad, or pipeline service unless the person:

1. Holds a license issued under this chapter 2. Holds a certificate of registration issued under this subchapter

According to the Texas Department of Insurance, most homeowners policies in Texas include which of the following coverages?

1. Loss of use. 2. Medical payments. 3. Dwelling.

The following information is generally included in a listing agreement?

1. That the seller has the legal capacity to sell the property 2. The legal description of the property 3. The agency agreement between the broker and the seller

What is the primary purpose for real estate licensing laws?

1. To protect the general public during real estate transactions from dishonest or incompetent brokers and sales agents. 2. To set out minimum standards and qualifications for licensing brokers and sales agents. 3. To protect licensed brokers and sales agents from unfair or improper competition.

The term "false, misleading, or deceptive acts or practices" includes, but is not limited to which of the following acts?

1. Using deceptive representations or designations of geographic origin in connection with goods or services 2. Passing off goods or services as those of another 3. Disparaging the goods, services, or business of another by false or misleading representation of facts

A manufactured home can be considered real property if:

1. both the Texas Department of Housing and Community Affairs and the home's county's chief tax appraiser have been notified of the filing 2. a certified copy of the "Statement of ownership and location" for the home has been filed by the owner in the real property records of the county where the home is located 3. the owner of the home has elected to treat the home as their real property

The executive director shall give notice of the commission's order to the person. The notice must:

1. inform the person of the person's right to judicial review of the order 2. state the amount of any penalty imposed 3. include the findings of fact and conclusions of law, separately stated

Legal descriptions generally can be found by searching by:

1. public lands records 2. tax records

In what year did the Texas Supreme Court invalidate the state's right to retain all mineral rights to land?

1901

The lead-based paint disclosure requirements only apply to houses built before:

1978

Which amendment guarantees that a citizen will not be deprived of property without due process of law?

5th Amendment.

How long does a Chapter 13 debtor have to reinvest the proceeds of his or her home sale in a new homestead or lose their homestead tax exempt status, and therefore return the proceeds to the bankruptcy estate?

6 months

Which kind of easement not only allows access to another person's property but also allows the removal of material resources contained in the property?

A profit

A testamentary trust is created through what?

A will.

All the meanings of agent and agency refer to someone who does which of the following? (Best answer.)

Acts on behalf of someone else to perform a task or range of tasks.

What states that a party, or parties, associated with a contract will cover certain losses or expenses incurred by another party under the contract?

An indemnification clause

No real estate license holder shall discriminate against an owner based upon which of the following:

Ancestry

The commission shall waive the examination requirement for an applicant for a broker or sales agent license if:

Both of these are required

What returns the nonbreaching party to the position he or she would have been in if the contract had not been made?

Cancellation.

Which of the following are common law fiduciary duties?

Care, disclosure, loyalty, accounting, & obedience

What is the difference between a class C corporation and a class S corporation?

Class C do not have pass-through taxation

The CFPB is the:

Consumer Financial Protection Bureau

Which of these IS NOT one of the five canons of ethics?

Cooperation

ESAC stands for:

Education Standards Advisory Committee

The number one reason that people move is:

Employment opportunity

The largest and most complete bundle of rights of ownership is:

Fee simple absolute

A place on the survey where there is an unintentional space between properties is what?

Gap

Emblements are best described by which of the following?

Harvestable plants, trees, and uncultivated vegetation.

Which of these IS NOT a subchapter subject matter addressed by TRELA?

How to attract and maintain a real estate client

Prior to the introduction of the condominium concept, property ownership had been limited to ownership of...

Land.

The commission shall assign priorities and investigate complaints using a risk-based approach based on any of these except:

Length of time a licensee has been in practice

What are rights concerning properties that are directly next to an ocean, gulf, bay, delta, or lake?

Littoral.

What causes great harm or substantially lessens the value of the contract for the non-breaching party?

Material breach.

An appointed licensee must do which of the following?

Not disclose that an owner would accept a price lower than the asking price

When must a broker report a change of address to the commission?

Not later than the 10th day after the date a broker moves from the address designated on the broker's license

Which of the following is a general term for properties involving an approved survey map and plans that describe each lot or unit and that is recorded with the county?

Platted

Changes to the Fair Housing Act include:

Public and common areas must be accessible to persons with disabilities

In the rectangular survey system, what are straight, imaginary lines running north and south and parallel to a Principal Meridian?

Range lines

A contraction or generally slowing down of the economy is a:

Recession.

Which type of common property ownership is for the exclusive use of a property for a specified number of days each year?

Resort timesharing

What refers to a location from an economic rather than a geographic standpoint?

Situs.

The Texas Real Estate Commission consists of members appointed by the governor with the advice and consent of the: senate. What is their composition?

Six members who have been engaged in the brokerage business as licensed brokers as their major occupation for the five years preceding appointment; and three members who represent the public

What type of property category includes churches, other places of worship, schools and colleges, cemeteries and certain government-held properties?

Special-purpose.

What is the remedy called when one party has made a good faith effort to perform his/her obligations under a contract and the other party has NOT performed his/her obligations?

Specific performance.

The practice wherein consumers of protected classes are directed to certain neighborhoods when shopping for housing is called:

Steering.

A person who receives a commission or other consideration as a result of acting as a broker or sales agent without holding a license or certificate of registration under this chapter is liable to an aggrieved person for a penalty of not less than the amount of money received or more than three times the amount of money received.

TRUE

Which of the following fulfills Section 1101.806 of TRELA requirements for compensation?

The agreement to pay was in writing and signed by the party to be charged

Which of the following are elements that will be found in nearly every kind of listing agreement?

The broker's commission and broker fees.

Who determines the salaries of the executive director, officers, and employees of the commission?

The commission.

Which of the following is not used as a test to determine whether a statement is mere "puffing"?

The cost of the good or service

Who is the person or business entity receiving an offer?

The offeree

Public beach policy for the state of Texas includes a declaration that:

The public shall have the free and unrestricted right of ingress and egress to and from the state-owned beaches bordering on the seaward shore of the Gulf of Mexico.

TREC has the authority under TRELA to suspend or even revoke a broker's license if:

They conduct the unlawful practice of law

What is the term for a six-mile-square area of land containing 36 sections which is numbered according to its position either north or south of the baseline?

Town

Joint tenancy is ended when which of the following unities is ended?

Unity of time.

A counteroffer is:

a rejection of the original offer

Each year the CRA requires federally supervised financial institutions to prepare annual statements that include which of the following information?

any comments from the public about the specific financial institution's performance in meeting their community's needs

A subpoena may be issued throughout the state and may be served by:

any person designated by the commission.

Mortgages are a common type of __________ lien.

consensual

An __________ is an easement that is established without the permission of a landowner or the existence of a situation that requires an easement.

easement by prescription

A contract must have a legal purpose in order to be:

enforceable

A professional organization or association is usually a not-for-profit organization that seeks to:

further a particular profession and the interests of individuals engaged in that profession.

When the relationship of a sales agent with the sales agent's sponsoring broker terminates, the terminating party shall immediately notify:

in writing both the other party and the commission.

A license holder is not liable for a misrepresentation or a concealment of a material fact made by a party to a real estate transaction unless the license holder:

knew of the misrepresentation or concealment and failed to disclose the license holder's knowledge of the misrepresentation or concealment.

The commission may require a license holder whose license suspension or revocation is probated to:

limit practice to an area prescribed by the commission

Metes comes from the word for...

measuring.

The commission by rule may:

prescribe the title, content, and duration of continuing education courses that a license holder must attend to renew a license

Multiple real estate brokerages establishing an across-the-board 6% commission for their agents would be guilty of...

price fixing.

The Texas Real Estate Broker-Lawyer Committee consists of 13 members appointed as follows:

six members appointed by the commission; six members of the State Bar of Texas appointed by the president of the state bar; and one public member appointed by the governor

Per 1101.2051(b), information or material prepared or compiled by the commission in connection with a complaint, investigation, or audit may be disclosed:

to the respondent of the complaint.

A C.L.U.E. report advises a consumer on:

up to seven years of claims history on a property

Applicants who are rejected for credit must be notified in writing of the basic reasons for the denial of their application, and the reason for their credit rating when?

within 30 days

An aggrieved party may bring a private enforcement action in a state or federal district court :

within two years of the stated discriminatory action and can even be filed if an administrative proceeding through TWCCRD is in process