Principles of Real Estate 1 Final Exam

Which of the following is exempt from holding a real estate license...?

A homeowner looking to sell their house on their own

If an administrative penalty is not paid, who is responsible for collecting the payment...?

Attorney General

The right of exclusion, which allows a landowner to prevent others from entering or occupying their property, is included in the?

Bundle of rights

The intricacies in marketing properties for others involves...?

Competency

A form of ownership of real property recognized in all states that consists of individual ownership of some aspects and co-ownership in other aspects of the property is known as a?

Condominium

Which of the following is NOT a form of real property?

Cooperative

A right acquired by one party to use the land of another party for a special purpose is known as a...?

Easement

When using the metes and bounds method to describe property, the origin point is also the...?

End Point

Which of the following is a type of contract used between brokers and sellers...?

Exclusive Agency Agreement Exclusive Right to Sell Agreement Open Listing

Until a purchase contract is closed upon, it is considered a/an...?

Executory contract

An agency relationship created by oral or written agreement between the principal and the agent is known as?

Express agency

Which of the following is one of the TREC canons of professional ethics...?

Fidelity Integrity Competency

Real estate brokers have a ...... relationship with the principal?

Fiduciary

An individual who has not owned real property for at least the previous two years is known as a?

First-time homebuyer

A fee simple estate is an example of which of the following estates...?

Freehold estate

If an individual uses sections to help describe a property, they are most likely using which of the following methods...?

Government Survey

Which of the following property descriptions is not used in the State of Texas?

Government Survey

A real estate broker is authorized to perform which of the following acts...?

Identify properties for purchase or lease Deal or sell options on real estate Auction off real estate

Under the Equal Credit Opportunity Act, lenders must provide financing based on which of the following criteria?

Income

A mortgage payment typically includes?

Interest Principal Insurance

A joint tenancy is terminated when which of the following ceases to exist...?

Interest, Title, Posession

Which of the following is an example of a fixture?

Kitchen cabinets

Metes and bounds is an example of a...?

Legal description

The subdivision plat method of describing property includes which of the following...?

Lots and Blocks

Fidelity, on TRECs canons of professional ethics, implies?

Loyalty

The 'L' in the acronym C.O.A.L.D. stands for which fiduciary duty?

Loyalty

A means of comparing similar type properties, which have recently sold, to the subject property is known as the?

Market Comparison Approach

Which of the following is considered a legal test for determining if an item is a fixture or not?

Mode and permanence of how the item was attached Adaptation of the item Intention of the parties All of the above

In addition to the TREC canons of professional ethics, this organization also publishes a code of ethics that must be followed by its members...?

National Association of Realtors

A broker's compensation is

Negotiable

This type of listing provides that the agent may retain as compensation for the agent's services all sums received over and above a net price to the owner...?

Net Listing

HUD fair housing complaints can be filed in which of the following ways/

Online Mail Phone

How is ownership in a community property between a husband and wife divided...?

Ownership is divided equally among the owners

Which of the following acronyms can be used to describe government powers with regards to real property...?

PETE

A refrigerator is typically considered?

Personal Property

Mobile homes not permanently attached to the land are generally considered?

Personal Property

Any medical disorder, condition, disfigurement or loss affecting one of the body systems is known as a...?

Physical impairment

Which of the following is an advantage to owning a home?

Potential for asset appreciation Tax benefits Pride of ownership All of the above

The Deceptive Trade Practices Act discourages agent from which of the following acts?

Puffing- usually a exaggeration made by a salesperson or found in an ad regarding the quality of the item or the service offered.

Which of the following real estate contracts must be in writing...?

Purchase contract for a multi-family property Lease contract for greater than 1 year Sales contract

Which of the following is considered illegal under the Fair Housing Act...?

Refusing to sell to a protected class Refusing to show properties in neighborhoods based on racial criteria Refusing to show properties in neighborhoods based on religious criteria

The market comparison approach is commonly used for this property type?

Residential

Which of the following is an example of an addendum found in a listing contract...?

Seller Disclosure Notice Request for Information from an Owner's Association Lead Based Paint Disclosure

The land that is encumbered by an easement is referred to as the...?

Servient tenement

Property owned by one person only is referred to as?

Severalty Ownership

A real estate agent is an example of what type of agent?

Special agent

The amount of goods offered for sale within a given market at a given price during a given time period is known as?

Supply

Which entity produces the most commonly used Exclusive Right to Sell agreement in Texas...?

Texas Association of Realtors

Who determines the standards for real estate licensing courses in Texas...?

Texas Real Estate Commision

The prohibition of fair housing discrimination by a licensee is described in which of the following Acts?

Texas Real Estate License Act

If an agent does not abide by the TREC canons of professional ethics, which of the following may occur...?

The agent's license can be revoked The agent's license can be suspended The agent may be placed on probation

If a real estate salesperson closes on a transaction, who pays the salesperson their commission?

The salesperson's sponsoring broker

Oral listing agreements between a seller and a broker are...?

Unenforceable

When a real estate broker represents a buyer in a transaction, the broker and buyer are bound by which of the following contracts?

buyer representation agreement

To mingle or mix, for example, a client's funds in the broker's personal or general account is known as...?

commingling

The laws governing fair housing are also referred to as?

equal housing opportunities

An agent must be honest and truthful. This is an example of...?

integrity

A lien imposed against property without consent of an owner is referred to as a/an...?

involuntary lien

Blockbusting is also known as?

panic selling

A division of real or personal property or the proceeds therefrom among co-owners is known as?

partition

Who is legally entitled to receive a commission from a principal for a sale or rental of the principal's property...?

real estate broker

The right of a surviving tenant or tenants to succeed to the entire interest of the deceased tenant is known as...?

right of survivorship

If one of the parties in a real estate transaction are not considered competent, the contract between the parties is considered a/an...?

voidable contract