TEXAS PRINCIPLES OF REAL ESTATE 1 FINAL
LATEST 2023-2024 ACTUAL EXAM 220 QUESTIONS
AND CORRECT DETAILED ANSWERS (100%
VERIFIED ANSWERS) |AGRADE
What federal act allowed single persons to exclude up to $250,000 in
real estate gains from taxation? – ANSWER- The Taxpayer Relief Act
What type of building product is known by the name EIFS? –
ANSWER- Exterior synthetic stucco
How is Alternative Minimum Tax under Tax Relief Act determined? –
ANSWER- tied to inflation
What is a co-op? – ANSWER- units that are owned by a corporation that
sells shares of stock to the owners.
What is the typical height of high-rise buildings? – ANSWER- 6 floors
or higher
The Texas Uniform Condominium Act allows owners shares of common
elements – ANSWER- but the common elements cannot be partitioned.
What are the specific features of PUDs? – ANSWER- low-price and a
minimum of maintenance cost
In what document would you find covenants and restrictions regarding
use and transfer of condo units? – ANSWER- Declaration Provisions
If the broker is paying an inordinate amount of selling expenses, what
may be an agent’s commission split? – ANSWER- 40%
What do “blind ads’ do? – ANSWER- Conceal the identity of the person
placing the ad.
What’s the penalty for individual violators of the Sherman Act? –
ANSWER- up to $1,000,000
What is the first step in marketing a listed property? – ANSWER- make
a marketing plan
What two escrow mistakes must a broker avoid? – ANSWERCommingling and conversion
What three things make a waiver be valid and enforceable? – ANSWERThe waiver is in writing and is signed by the consumer, the consumer is
not in a significantly disparate bargaining position and s/he is
represented by legal counsel
What is the term given to the act of mixing personal funds with escrow
monies? – ANSWER- commingling
Which federal statute prohibits price fixing and boycotting? –
ANSWER- sherman antitrust act
A broker does not withhold taxes for – ANSWER- independent
contractors
What is the deadline for submission of the contract? – ANSWER- 24
hours from the agent’s receipt of the deposit
The acronym DTPA stands for – ANSWER- The Texas Deceptive Trade
Practices-Consumer Protection Act
What act prohibits unfair methods of competition in interstate
commerce, but carries no criminal penalties? – ANSWER- The Federal
Trade Commission Act
Which of the following states that the agent has a special responsibility
to be honest when performing his or her duties? – ANSWER- integrity
What is the advantage of a professional standards hearing when a
problem occurs? – ANSWER- a decrease of time and money expenses
for all of the parties involved
Which entity recommends changes to articles in the NAR Code of
Ethics? – ANSWER- Professional Standards Committee
Are ethics and legality similar categories? – ANSWER- nothing
The Consumer Information Form 1-1 deals with the – ANSWER- Real
Estate Recovery Trust Account.
What is the legal force of the 5 Canons of Professional Ethics and
Conduct? – ANSWER- they have the force and effect of law in Texas
What is the secondary goal of the Code of Ethics? – ANSWER- to
provide protection for the public by using a formal complaint process
Who sits on the NAR Grievance Committee? – ANSWER- realtors
Under what Texas Real Estate Commission Canon would you find the
practice of exercising skill and judgment in performing duties? –
ANSWER- competency
According to the Texas Real Estate Commission Canons, one aspect of
competency has to do with – ANSWER- stay informed
What organization conducts professional standards hearing for local or
state associations? – ANSWER- a panel of realtor members