Real Estate Principles 1

principal meridians run:

north-south

Contracts may use the terminology ______ after the assignor's name to make it clear that the contract is assignable.

"And/or assigns"

How would you respond if your seller makes the following request? "We've lived here 10 years and love our neighbors. They're really concerned about the changes happening to the blocks around us, so we want to be careful about who we sell this house to. You know what we mean. You'll help us find the 'right' kind of buyer, won't you?"

"It would be illegal to limit the search based on race or religion or anything like that, but I promise I'll find you the most qualified buyer I can, and we'll sell this house for the highest price possible."

If a farm that's for sale measures one and three-quarter square miles, how many acres is it?

1,120

How many days does a broker have to notify TREC if their business address has changed?

10 days

What is the continuing education requirement for Texas real estate licensees?

18 course hours for each licensed term

A property is 330 feet long by 100 feet wide. How many square feet is the property?

33,000

Prior to receiving his real estate license as a sales agent, Jack must pass the required state exam. What is the minimum passing grade?

70%

Margie needs to know the square footage for the first floor of the condo her client is interested in buying. The kitchen is 10 feet by 15 feet, the living/dining combo is 20 feet by 25 feet, and the office and bedroom are each 10 feet by 10 feet. What's the total square footage?

850 square feet

Rhonda is an unrepresented buyer and is purchasing Tony's town home. Gary represents Tony in the sale of his property. What's Rhonda's relationship to Gary?

A customer

What is a section?

A one-square-mile square formed in the use of the rectangular government survey system

Carl conducts business on behalf of a supervising broker on a commission basis. He does not receive compensation directly from clients. Carl must be what?

A sales agent

Henry died, and his property wasn't held in a trust. Thus, his estate will go through probate to ensure his property is distributed to his beneficiaries in accordance with his will. The probate process often takes _______ before the property is distributed.

A year or more

Which of the following forms is automatically provided as part of the listing agreement, regardless of the age, location, or type of property? A. Information About Brokerage Services B. Information about Special Flood Hazard Areas C. Request for Information from an Owners' Association D. Request for Mortgage Information

A. Information About Brokerage Services

Which option is a way in which homestead rights can be terminated?

Abandonment

The Adams family is financing their loan through Acme Bank and their agent negotiated a great sales price on their new home. Smith Title Company processed the loan documents. The Adamses must purchase mortgage insurance. Who does the insurance protect?

Acme Bank

Which type of property tax is based on the value of the property?

Ad valorem

In the rectangular government survey system, what is a base line?

An east-west line used as a reference point

Jarvis is a broker in Houston. He is currently working on a real estate transaction on behalf of two parties. Both parties are aware of the broker's activity with each other and both parties have provided written consent acknowledging their approval. Jarvis is working as a what?

An intermediary

April and Wayne are the buyer and seller of a condo, respectively. April is represented by Steve. Wayne is represented by Wanda. Name the principal(s) in this transaction.

April and Wayne

Which of the following is NOT a valid way to terminate a listing agreement?

At the buyer's request

There are many advantages to holding property within a trust. One of the most important advantages is that some trusts ______.

Avoid probate

All of the following are true regarding implied agreements EXCEPT which one? A. An implied agreement is based on actions or behaviors. B. An implied agreement is based on a formal agreement. C. With an implied agreement it is possible that the other party did not intend to be bound. D. With an implied agreement there is an increased chance of confusion.

B. An implied agreement is based on a formal agreement.

Which of these property owners are exempt from discrimination requirements? A. An owner-occupant of a building with 10 single-family dwellings B. An owner-occupant of a single-family principal residence C. An owner of more than five single-family residences D. An owner selling a vacation home

B. An owner-occupant of a single-family principal residence

Travis is a new real estate licensee and is writing up his first offer to purchase for his buyer clients. Which of these statements is true? A. Real estate licensees don't have access to legal descriptions. B. Travis should include the legal description in the offer, because it provides a complete description of the property. C. Travis should not include the legal description on the offer to purchase, but he should include the address. D. Travis shouldn't write up the offer to purchase; the client should.

B. Travis should include the legal description in the offer, because it provides a complete description of the property.

Darnell is disappointed when he receives written notification from TREC that his broker license application has been rejected. He plans to file a notice for a hearing, but he misses the deadline by two days. Which of the following is true of this situation?

Because he didn't file the notice in time, TREC's decision to deny his license is final.

Which of the following statements about real estate licenses is true?

Before you can legally perform any of the same activities that licensed real estate professionals perform, you must have your real estate license.

Which of the following statements is true regarding community property rights and property ownership?

Both partners may own other properties purchased before the marriage separately (in severalty), but any properties purchased during their marriage are owned equally.

TREC has a great deal of authority. In addition to enforcing the provisions of TRELA, TREC also has the authority to ______.

Bring legal action and file criminal charges against a person who violated TRELA

How does the requirement for licensing protect the public?

By requiring licensees to have certain education, training, and standards

One of the main reasons for the licensing exam is to demonstrate to TREC that you are ______.

Competent in real estate practices

In a real estate transaction, which of the following is established when parties enter into an agreement voluntarily with full understanding of the contract terms?

Consent

Real estate licensees who want to uphold the Fair Housing Act should make a habit out of which of the following actions? A. Disclose their protected status to all clients. B. Present sellers with offers from people of the same class so they don't ask the licensee to discriminate. C. Show buyers properties in neighborhoods where they are unlikely to experience discrimination. D. Tell potential clients in their initial meeting that they are committed to upholding fair housing laws.

D. Tell potential clients in their initial meeting that they are committed to upholding fair housing laws.

Texas land which abuts a river or stream and was acquired after 1895 is subject to which of the following? A. Groundwater rights B. Littoral rights C. Riparian rights D. The Doctrine of Appropriation

D. The Doctrine of Appropriation (Land acquired after 1895 is subject to the Doctrine of Appropriation which means that the state has the right to control the right to use any water, except for water used for certain domestic purposes. Land acquired before 1895 carries riparian rights.)

Which of the following statements is true regarding a partially performed sales contract that otherwise contains all of the essential elements? A. The contract can't close. B. The contract is unenforceable in court. C. The contract is void. D. The contract is voidable.

D. The contract is voidable.

Which stage of the real estate cycle is considered the bottom?

Depression

Gene and Alex bought a property that backed up to a neighborhood park. The previous owner mentioned that ever since the park was built eight years ago, the next door neighbor who works at the park has cut through the yard to get to the park rather than going around via the streets, which saves about half a mile. What kind of easement is this?

Easement by prescription (Easements by prescription are created through continuous, exclusive, and long-term use of another's property without actual permission.)

The state's claim to property when a property owner dies, leaving no will, heirs or creditors, is the power of ______.

Escheat

Which of the following is a leasehold estate for an unknown period of time, with either party permitted to terminate the lease by giving notice to the other?

Estate at will

Kirby has a listing agreement with Bob. If Kirby or another agent locates the buyer, Kirby gets his listing commission. However, if Bob locates the buyer, Kirby does not earn a commission. What type of listing agreement do they have?

Exclusive agency

Individuals who experience housing discrimination are provided the opportunity to file a complaint based on the provisions of which act?

Fair Housing Act of 1968

Which act created the Office of Fair Housing and Equal Opportunity under the Department of Housing and Urban Development?

Federal Fair Housing Act of 1968

Which area of real estate law covers the government's rights and authority under eminent domain?

General property law

The Office of Fair Housing and Equal Opportunity is a part of which federal department?

HUD

______ enforces the Canons of Professional Ethics and Conduct in Texas.

The Texas Real Estate Commission

Prior to the ______, there was no legal protection for women who endured sexual harassment from landlords and sellers when they attempted to obtain housing.

Housing and Community Development Act of 1974

Kathy has a history of job-hopping, but when she decides to become a real estate sales agent, she's sure it's the right decision. She's crushed when her application is rejected, but refuses to give up. How soon can she submit a new application, assuming she's satisfied all the requirements?

In two years (TREC won't accept subsequent license applications from the same applicant for two years following the initial denial.)

The Equal Credit Opportunity Act specifies that credit applicants must be judged using only what criteria?

Income, net worth, job stability, and credit rating

The client owes the agent the primary duties of compensation, information, ______, and availability.

Indemnification

Which of the following statements about independent contractors and employees is true? A. Employees set their own hours, pay their own expenses, and are compensated according to their results and not time spent. B.Independent contractors and employees are taxed differently. C. Independent contractors must file W-2s with the IRS. D.Most brokers are employees, not independent contractors.

Independent contractors and employees are taxed differently.

The client owes the agent the primary duties of compensation, ______, indemnification, and availability.

Information

The listing agent is responsible for obtaining information from the seller as part of the Seller's Disclosure Notice. What is done with this information?

It is made available to prospective buyers and other agents.

Which ownership type is defined by four unities: time, title, interest, and possession?

Joint tenancy

Jolene signs a contract to buy Harvey's home. Before closing, it's discovered that Jolene is only 16 years old. Because she's a minor, she's not considered legally competent to enter into a contract. Which of the parties can void the contract?

Jolene

Which of the following best indicates that Harold is Kelsey's seller client?

Kelsey and Harold have a signed agency agreement.

Which of the following statements is true about the rule of capture?

Landowners can use or sell all the water they can drill from beneath their land.

To what type of estate does pur autre vie apply?

Life estate

Your buyers, the Miltons, want to buy a new home. Which factor will likely carry the greatest weight in their decision?

Location

The ESAC does which of the following?

Makes recommendations for improvements to real estate education

When licensees focus all their efforts on one segment of the real estate market with the intention of minimizing, and perhaps even eliminating, the competition, this is known as ______.

Niche marketing

Marley wants to specialize in the sale, purchase, and lease of easements in Texas. Is she required to get her real estate license?

No, but she will need to get her certificate of registration.

What type of policy is an HO-A amended policy?

Non-standardized

_______ is an acronym that can help you remember an agent's fiduciary duties.

OLD CAR

How many members of the general public must be on the ESAC committee?

One

A Texas applicant must provide two forms of identification at the testing center. What types of ID are acceptable?

One picture ID and one with your signature

You represent April, the seller, who is your Uncle Clyde's girlfriend. You receive an offer from Barry on behalf of a prospective buyer. Whose interests do you represent, and in what order?

Only April's

There are three types of listing agreements. They are exclusive right to sell, exclusive agency, and _________________.

Open listing

Ginnie allowed her real estate license to expire in the past six months, because she was uncertain if she wanted to continue as a real estate professional in Texas. She has recently decided that she does not want to give up on her dream of building a real estate empire. She has come to terms with having to retake the state exam, but is worried about taking the 180-hour pre-licensing course again. Will she be required to retake her pre-licensing courses?

Perhaps. This is only necessary if the required hours have changed.

When strong winds and tidal action from storms change the vegetation line, what can happen?

Private property can become subject to the public beach easement

Marcia Weinstein died, and her property wasn't held in a trust. Thus, her estate will go through ______ to ensure her property is distributed to her beneficiaries in accordance with her will.

Probate

An inheritable freehold estate that's a fee simple defeasible (where the grantor can reclaim ownership) is also known as ______.

Qualified fee

Homeowner Shaun loves DIY projects and decided to build some bookshelves for his home office. He bolted the shelves to the wall and installed trim around them so they became an integral part of the room. When he sells his home, the bookshelves will be considered ______.

Real property because of the method of annexation

Early in its history, the Federal Housing Administration officially supported keeping "incompatible" racial groups out of the newly developed white suburbs. This practice is known as ______.

Redlining

Benjamin is interested in a piece of property but is curious about its exact legal description. What's one of the best ways to find this information?

Reference a previous property deed.

A homeowner has converted two rooms in his home to a rental unit. What does the "Mrs. Murphy" exemption permit him to do?

Refuse to rent to a female tenant.

In which type of housing might you find an activity coordinator?

Retirement community

Annette really wants to move to San Francisco, but she's unsure whether she'll be able to afford to live there. Housing is very expensive because there simply is no room to build any new housing units. Which economic characteristic does this reflect?

Scarcity

Per the Texas statute of frauds, a contract for the sale of real estate is only enforceable if it is in writing and ______.

Signed by the person to be charged with the promise/agreement

Fair housing complaints submitted to the Texas Workforce Commission Civil Rights Division must ______.

Specify the protected class that was discriminated against

DeeAnna thought she purchased an investment property, but the seller refused to deliver the title to her. DeeAnna met all of her obligations per the written contract she and the seller signed. She decided to take the seller to court in an effort to force him to hand over the title. This is an example of ______.

Suing for specific performance

What agency is charged with ensuring the balance of the Recovery Trust Account is maintained at $1.7 million or higher?

TREC

Unlawful possession after the expiration of a lease is called ______.

Tenancy at sufferance

The ESAC makes recommendations for improvements to real estate education to ______, which implements them.

The Texas Real Estate Commission

For which of the following reasons could a Texas broker application be rejected by TREC?

The applicant didn't satisfy the experience requirement within one year from the application filing date.

Define abandonment.

The discontinuance of use of the property coupled with an intention not to use it again as a home.

Within the tax sale process, which of the following occurs?

The property owner still has the right to redeem the property before the tax sale by paying delinquent taxes and penalty owed.

Who has the ultimate responsibility for the sales agent's actions in Texas?

The sales agent, and the sales agent's broker

What does the parol evidence rule say about contracts?

The terms agreed to in a written contract are the only terms relating to that contract.

Which of the following statements about limited liability companies (LLCs) and limited liability partnerships (LLPs) is true?

They are taxed as partnerships.

Why are antitrust activities illegal?

They limit consumer choice.

Charlie represents Sue, a buyer. Charlie is being paid by Claude, the seller, through his brokerage. What's true about this situation?

This doesn't change the agency relationships.

You're talking to a co-worker at lunch and she mentions she has a box of baby clothes her kids have outgrown that she needs to get rid of. You have a baby on the way, so you offer to pay her $25, and she agrees to bring the box to work the next day and give it to you. Which of the following is true in this situation?

This is an express contract because you defined in words the specific terms of the agreement and consideration to be exchanged.

Under the Texas anti-spam law, businesses have ______ days to remove a consumer's email address from their mailing list.

Three

Which of the following statements is true regarding timeshare estates?

Timeshare estates can be sold or passed down to heirs.

What is the purpose of state constitutions?

To provide a basis for state laws and regulations

What is the purpose of a listing agreement?

To spell out the agreement between the listing broker and the seller

Physical characteristics of land include its immobility, indestructibility, and ______.

Uniqueness (nonhomogeneity)

Burt terminated his exclusive right-to-sell listing agreement with Scott, his listing broker, without cause. Burt may legally do this as long as he's ______.

Willing to pay Scott's commission anyway

You've just purchased a rural property, and the attorney at the closing tells you, "You have a dominant estate." What does that mean to you?

You'll be using an easement across your neighbor Jim's property. (The dominant estate or dominant tenement is the property that benefits from the easement. When you use an easement across your neighbor's property, your property benefits and is the dominant estate.)

The governor appoints how many lawyers to the Broker-Lawyer Committee?

Zero (The governor appoints one member, and that person is a member of the public. The lawyers are appointed by the president of the Texas Bar Association.)