TEXAS PRINCIPLES OF REAL ESTATE II FINAL 2023-2024 ACTUAL
EXAM 250 QUESTIONS AND CORRECT DETAILED ANSWERS
(VERIFIED ANSWERS) |AGRADE||BRAND NEW!!
The legal procedure under which property may be sold to satisfy an unpaid
promissory note.
a. Primary mortgage market
b. Redlining
c. Underwriting
d. Foreclosure
e. Origination – ANSWER- D
The market in which borrowers and mortgage lenders come together to create and
negotiate terms of a mortgage transaction is called the primary mortgage market.
a. True
b. False – ANSWER- A
The person who evaluates a borrower’s loan application and examines a borrower’s
credit worthiness for the risk of repayment to the lender is called a/an:
a. Mortgage Broker
b. Mortgage Banker
c. Underwriter
d. Agent – ANSWER- C
The Consumer Financial Protection Bureau enforces:
a. The Real Estate Settlement Procedures Act
b. The Fair Credit Reporting Act
c. The Truth In Lending Act
d. All of the above – ANSWER- D
The Equal Credit Opportunity Act prohibits credit discrimination on the basis of:
a. Race
b. Religion
c. Sex
d. All of the above – ANSWER- D
The government purchases existing mortgages from the primary mortgage market
for the secondary market.
a. True
b. False – ANSWER- A
All of the following are true about Fannie Mae, EXCEPT:
a. It plays a vital role in financing and increasing home ownership opportunities in
the U.S.
b. It operates exclusively in the secondary market
c. It used to be called The Federal Home Loan Mortgage Corporation
d. It standardizes mortgage loans, thereby attracting investors who traditionally
have not
invested in the primary market – ANSWER- C
The Loan Estimate does not allow for any charges to increase at closing.
a. True
b. False – ANSWER- B
The right of the government to take an individual’s land if he or she dies without a
will or heirs.
a. Police power
b. Ad valorem
c. Taxation
d. Escheat
e. Condemnation – ANSWER- D
The government’s right to tax real estate.
a. Police power
b. Ad valorem
c. Taxation
d. Escheat
e. Condemnation – ANSWER- C
The right of the government to regulate and control the way that an individual uses
his or her land.
a. Police power
b. Ad valorem
c. Taxation
d. Escheat
e. Condemnation – ANSWER- A
The action of government seizure of land for the good of the public.
a. Police power
b. Ad valorem
c. Taxation
d. Escheat
e. Condemnation – ANSWER- E
According to value
a. Police power
b. Ad valorem
c. Taxation
d. Escheat
e. Condemnation – ANSWER- B
The government retains the following rights in lands, EXCEPT:
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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
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TEXAS PRINCIPLES OF REAL ESTATE II EXAM
LATEST 2023-2024, PRACTICE QUESTIONS AND
CORRECT ANSWERS (100%VERIFIED ANSWERS)
|ALREADY GRADED A+
The right of the government to take an individual’s land if he or she dies without a
will or heirs.
a. Police power
b. Ad valorem
c. Taxation
d. Escheat
e. Condemnation – ANSWER- D
The government’s right to tax real estate.
a. Police power
b. Ad valorem
c. Taxation
d. Escheat
e. Condemnation – ANSWER- C
The right of the government to regulate and control the way that an individual uses
his or her land.
a. Police power
b. Ad valorem
c. Taxation
d. Escheat
e. Condemnation – ANSWER- A
The action of government seizure of land for the good of the public.
a. Police power
b. Ad valorem
c. Taxation
d. Escheat
e. Condemnation – ANSWER- E
According to value
a. Police power
b. Ad valorem
c. Taxation
d. Escheat
e. Condemnation – ANSWER- B
The government retains the following rights in lands, EXCEPT:
a. Eminent domain
b. Allodial
c. Police Power
d. Taxation – ANSWER- B
If a landowner sues the government in order to force it to buy his or her land, this
is called:
a. Reverse condemnation
b. Forward condemnation
c. Inverse condemnation
d. Ad valorem – ANSWER- C
There is a _ right of redemption of homestead property sold at auction
in Texas.
a. One year
b. Two year
c. Three year
d. Four year – ANSWER- B
The Interstate Land Sales Full Disclosure Act provides for:
a. The protection of the government from land owners filing suit against eminent
domain cases
b. The protection of developers from homeowners’ associations
c. The reimbursement of individuals whose land has been condemned by the
government
d. The protection of consumers from fraud in the sale or lease of land – ANSWERD
Under the Interstate Land Sales Full Disclosure Act, developers are required to
provide each purchaser in a subdivision or condominium with a Property Report.
a. True
b. False – ANSWER- A
Authority for cleanup of hazardous substances under CERCLA is granted to all of
the following, EXCEPT:
a. States’ natural resource agencies
b. Federal natural resource agencies
c. Homeowners’ associations
d. Native American tribes – ANSWER- C
A broker is not required to advise a sponsored sales agent of the scope of the sales
agent’s authorized activities under the License Act.
a. True
b. False – ANSWER- B
REO stands for real estate owned.
a. True
b. False – ANSWER- A
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TEXAS PRINCIPLES OF REAL ESTATE 1 EXAM
LATEST 2023-2024, PRACTICE QUESTIONS AND
CORRECT ANSWERS (100%VERIFIED ANSWERS)
|ALREADY GRADED A+
Which of the following is an exception for the requirement to provide a
written Information About Brokerage Services (IABS) form? –
ANSWER- if another party to the transaction is represented by another
license holder
TREC may issue or renew a license for a period – ANSWER- no more
than 2 years
When may the aggrieved person apply to the court that entered the
judgment for an order for payment from the trust account of the amount
unpaid on the judgment? – ANSWER- after the 20th day of written
notice
Salesperson Jim is has just renewed his license for the first time. How
many semester hours, or equivalent classroom hours, of core real estate
courses must he have completed? – ANSWER- 18 hours
Which of the following statements best defines a “right-of-way” agent? –
ANSWER- A right-of-way agent is one who sells, buys, leases or
transfers an easement or other right-of-way for another person and is
compensated.
If a person does not pay the administrative penalty and the enforcement
of the penalty is not stated, – ANSWER- the administrator may refer the
matter to the attorney general for collection of the penalty.
What are the full conditions for a broker to appoint an associated license
holder acting as an intermediary? – ANSWER- clause 2 and 3
What is the minimum annual coverage limit for each occurrence that a
real estate business entity must maintain for errors and omissions
insurance, if the designated agent owns less than 10 percent of the
business? – ANSWER- $1,000,000
What is the maximum amount of payments from the trust account for
claims arising out of a single transaction? – ANSWER- $50,000
including attorney’s fees, interest, and court costs
In what document would you find a brief summary of the alleged license
law violation? – ANSWER- Notice of Violation and Penalty
The position, that requires that property owners obtain permits for use of
water, is called – ANSWER- the Doctrine of Prior Appropriation
Owners who enjoy the littoral right of use – ANSWER- do not own the
water or the land beneath the water, if their properties abut a navigable,
non-moving body of water.
Landowner Norm noticed that after a recent flood 2 feet of new soil was
deposited on his property. What is the process called that resulted in
Norm’s extra river frontage? – ANSWER- Accretions
In Texas, what space is designated as public beach easement? –
ANSWER- Anything between the high tide line and the low tide line
Which act changed land ownership in the U.S. to an allodial system? –
ANSWER- The Treaty of Paris
Management of escheated property falls on – ANSWER- the Texas
General Land Office.
What distinguishes a freehold estate from a leasehold estate? –
ANSWER- A leasehold endures only for a specific period of time.
Which of the following is NOT a form of legal life estate? – ANSWERPur autre vie
Upon the death of the owner, a life estate passes to – ANSWER- the
original owner or other named person.
Which entity issues water right permits? – ANSWER- The Texas
Commission on Environmental Quality (TCEQ)
Homestead law provide for which of the following? – ANSWER- The
homestead is exempt from seizure for the collection of general debts.
Rural Homesteads in Texas may not be more than … acres for a family. –
ANSWER- 200
What distinguishes a pur autre vie life estate from an ordinary life
estate? – ANSWER- The pur autre vie estate endures only for the
lifetime of a person other than the grantee
Which U.S. Amendment to the Constitution requires just compensation
for any eminent domain sale? – ANSWER- 5th
Which of the following statements best defines a short sale? –
ANSWER- A lender allows a borrower in default on mortgage to sell the
mortgaged property for less money than necessary to satisfy the loan.
Easements and encroachments are types of – ANSWER- encumbrances.
Which of the following is not a ground for granting a prescriptive
easement order? – ANSWER- harmful use
There are two adjoining properties. An easement allows property A to
use the access road that belongs to property B. In this situation, property
A is said to be which of the following in relation to property B? –
ANSWER- Dominant tenement
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