Texas Real Estate Principles 1 Practice Exam: Latest Updated A+ Guide: Questions & Answers
Courses for the renewal of an active real estate broker or sales agent license are called
What is the maximum amount that the Commission will pay from the real estate recovery trust account for claims against any one license holder, until the account has been repaid in full by the license holder?
Which is owned by the tenant?
Which of the following terms refers not only to the surface of the earth but also below to the center of the earth, above to infinity, and natural things permanently attached but does NOT refer to artificial things permanently attached?
“If the court learns that the seller placed a sign that said “”Not Included”” on the stove every time a buyer looked at the property, the court will consider which of the following in determining whether the stove is a fixture, absent a written agreement?”
What type of estate is complete ownership and exists for an unlimited time?
If a condition of ownership is violated, title to the subject property automatically reverts to the original owner in
An urban homestead is limited to a lot or lots NOT to exceed how many acres?
The method used to describe real estate by distance, direction, and boundaries is
Which equals one square mile or 640 acres?
Under the federal Fair Housing Act, real estate organizations, such as multiple listing services, may NOT do which because someone is in a protected group?
Which aspect of the Canons of Professional Ethics and Conduct requires the broker or sales agent to be informed on market conditions and national, state, and local developments affecting the real estate business?
A complaint of discrimination brought under the Texas Fair Housing Act can be filed with the U.S. Department of Housing and Urban Development or with
An aggrieved person who believes illegal discrimination has occurred may file a complaint within what time frame following the alleged discriminatory act?
Appurtenant easement rights transfer with
An owner sells part of his land that has no access to a public road but does have access over his remaining land. This creates an easement by
When there are two or more liens on a property, the order in which the liens will be satisfied when the property is sold will be determined by
Which of the following may be a natural object, such as a tree or a boulder, or an artificial object, such as a steel rod or a stake driven into the ground?
It is unlawful for a person to act in the capacity of or claim to be a real estate broker without first
A real estate broker’s license is NOT required of persons who
The Texas Real Estate Commission is composed of
Before people can act in the capacity of or represent themselves as real estate brokers, they must first
A license holder must use the earnest money contract forms promulgated by the Commission unless
Which of the following is NOT a violation for which the Texas Real Estate Commission (TREC) may suspend or revoke a license or take other disciplinary action?
A licensed real estate broker is not authorized to practice law unless the broker also is a licensed attorney. Which activity is permitted to be performed by a real estate license holder?
Which would NOT be considered a violation of antitrust laws?
It is the duty of an agent to disclose to the principal every step taken in the transaction of the principal’s business because
Misleading or deceptive practices according to the Deceptive Trade Practices Act (DTPA) include all of the following EXCEPT
The Deceptive Trade Practices Act (DTPA) does NOT apply to the actions of real estate agents when an agent
A real estate agent tells a seller during a listing presentation that the firm’s real estate commission is in line with those of other real estate firms in the area. The broker may
A sales agent has which agency relationship with the sponsoring broker?
A consumer has sent a complaint to the Texas Real Estate Commission (TREC) against a real estate agent, claiming a violation of the Canon of Integrity. The agent is accused of
Which action is permitted under the federal Fair Housing Act?
Which law prohibits all discrimination based on race in any real estate transaction without exception?
The federal Fair Housing Act of 1968
Which family is NOT protected under the familial status provisions of the Fair Housing Act?
“””I hear they’re moving in. There goes the neighborhood! Better put your house on the market before values drop!”” This is an example of”
Where are subdivision plats filed?
The act of channeling homeseekers to a particular area either to maintain or to change the character of a neighborhood is
The priority of a mechanic’s lien is established from the date
Randy has constructed a fence that extends 1 foot over his lot line onto the property of a neighbor. The fence is an example of
Encumbrances on real estate
Which of the following BEST refers to the type of lien that affects all real and personal property of a debtor?
The right of defaulted taxpayers to recover their property before its sale for unpaid taxes is the
Which of the following is (are) considered a lien on real estate?
Which of the following is NOT included in the bundle of legal rights regarding real property?
What is a section of land?
An acre consists of how many square feet?
The Committee has _ members appointed by the Commission. 12 The __ is a statute that is administered and enforced by the Texas Real Estate Commission (TREC), which is a state agency. Real Estate License Act
A successful career in real estate requires someone to: be a self-started.
A peak is characterized as the _ turning point of a business cycle. upper
To be eligible to get a Texas real estate sales agent or broker license, a person must: All of the choices apply
Which of the following is not a duty of TREC? Creates state laws, statues, and rules
What are changes in business and economic activity that occur within the year? Short-term fluctuations.
The majority of new licensees begin their careers with a _ to help homeowners sell and homebuyers purchase homes. residential brokerage
Which of the following statements is true regarding NAR and TAR? All of the choices apply.
Any person who wants to engage in the real estate business and act as a real estate broker or real estate sales agent within the state of Texas must obtain a license from the: Texas Real Estate Commission.
The Education Standards Advisory Committee is responsible for reviewing and revising: All of the choices apply.
A(n) _ is a rule issued by an administrative agency to enforce or amplify a statute. regulation
A _ is a voluntary nonprofit organization of independent and competing business units engaged in the same industry or trade, formed to help solve industry problems, promote progress, and enhance service. trade association
Which of the following is true regarding the employee tax status for real estate sales agents or broker-sales agents? All of the choices apply.
Which of the following gives buyers the best opportunity to purchase real estate? Trough
In addition to the legal and ethical requirements, to be eligible to get a Texas real estate sales agent or broker license, the applicant must: both complete the required courses of study and pass the state licensing examination.
Real estate agents who do not comply with the duties and obligations required by law may be subject to: All of the choices apply.
Any form of online presence that allows end users to engage in multi-directional conversations in or around the content on the website is referred to as: Social Media
Advertisements must include a designation, such as _, that identifies the advertiser as a real estate agent. all of the choices apply
The two main types of real estate licenses are the: broker’s license and sales agent’s license.
_ is written law enacted by state (or federal) legislative bodies. Statutory law
What encompasses the activities a sales agent performs in order to seek out potential clients? Prospecting
The Education Standards Advisory Committee was created in: 2012.
If a real estate salesperson closes on a transaction, who pays the salesperson their commission? The salesperson’s sponsoring broker
A means of comparing similar type properties, which have recently sold, to the subject property is known as the? Market Comparison Approach
The market comparison approach is commonly used for this property type? Residential
The amount of goods offered for sale within a given market at a given price during a given time period is known as? Supply
A real estate agent is an example of what type of agent? Special agent
A refrigerator is typically considered? Personal Property
Mobile homes not permanently attached to the land are generally considered? Personal Property
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 attachedAdaptation of the itemIntention of the partiesAll of the above
The right of exclusion, which allows a landowner to prevent others from entering or occupying their property, is included in the? Bundle of rights
Which of the following is an example of a fixture? Kitchen cabinets
Which of the following is an advantage to owning a home? Potential for asset appreciationTax benefitsPride of ownershipAll of the above
An individual who has not owned real property for at least the previous two years is known as a? First-time homebuyer
Which of the following is NOT a form of real property? Cooperative
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
A mortgage payment typically includes? InterestPrincipalInsurance
Real estate brokers have a …… relationship with the principal? Fiduciary
The ‘L’ in the acronym C.O.A.L.D. stands for which fiduciary duty? Loyalty
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
An agency relationship created by oral or written agreement between the principal and the agent is known as? Express agency
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.
The prohibition of fair housing discrimination by a licensee is described in which of the following Acts? Texas Real Estate License Act
The laws governing fair housing are also referred to as? equal housing opportunities
Under the Equal Credit Opportunity Act, lenders must provide financing based on which of the following criteria? Income
Blockbusting is also known as? panic selling
Any medical disorder, condition, disfigurement or loss affecting one of the body systems is known as a…? Physical impairment
HUD fair housing complaints can be filed in which of the following ways/ OnlineMailPhone
Which of the following is considered illegal under the Fair Housing Act…? Refusing to sell to a protected classRefusing to show properties in neighborhoods based on racial criteriaRefusing to show properties in neighborhoods based on religious criteria
The intricacies in marketing properties for others involves…? Competency
An agent must be honest and truthful. This is an example of…? integrity
Which of the following is one of the TREC canons of professional ethics…? FidelityIntegrityCompetency
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 revokedThe agent’s license can be suspendedThe agent may be placed on probation
Fidelity, on TRECs canons of professional ethics, implies? Loyalty
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
Who is legally entitled to receive a commission from a principal for a sale or rental of the principal’s property…? real estate broker
A real estate broker is authorized to perform which of the following acts…? Identify properties for purchase or leaseDeal or sell options on real estateAuction off real estate
If an administrative penalty is not paid, who is responsible for collecting the payment…? Attorney General
Which of the following is exempt from holding a real estate license…? A homeowner looking to sell their house on their own
Who determines the standards for real estate licensing courses in Texas…? Texas Real Estate Commision
The subdivision plat method of describing property includes which of the following…? Lots and Blocks
When using the metes and bounds method to describe property, the origin point is also the…? End Point
If an individual uses sections to help describe a property, they are most likely using which of the following methods…? Government Survey
Metes and bounds is an example of a…? Legal description
Which of the following property descriptions is not used in the State of Texas? Government Survey
Until a purchase contract is closed upon, it is considered a/an…? Executory contract
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
To mingle or mix, for example, a client’s funds in the broker’s personal or general account is known as…? commingling
Which of the following real estate contracts must be in writing…? Purchase contract for a multi-family propertyLease contract for greater than 1 yearSales contract
Oral listing agreements between a seller and a broker are…? Unenforceable
A fee simple estate is an example of which of the following estates…? Freehold estate
A lien imposed against property without consent of an owner is referred to as a/an…? involuntary lien
A right acquired by one party to use the land of another party for a special purpose is known as a…? Easement
Which of the following acronyms can be used to describe government powers with regards to real property…? PETE
The land that is encumbered by an easement is referred to as the…? Servient tenement
How is ownership in a community property between a husband and wife divided…? Ownership is divided equally among the owners
The right of a surviving tenant or tenants to succeed to the entire interest of the deceased tenant is known as…? right of survivorship
A joint tenancy is terminated when which of the following ceases to exist…? Interest, Title, Posession
Property owned by one person only is referred to as? Severalty Ownership
A division of real or personal property or the proceeds therefrom among co-owners is known as? partition
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
Which entity produces the most commonly used Exclusive Right to Sell agreement in Texas…? Texas Association of Realtors
A broker’s compensation is Negotiable
Which of the following is a type of contract used between brokers and sellers…? Exclusive Agency AgreementExclusive Right to Sell AgreementOpen Listing
Which of the following is an example of an addendum found in a listing contract…? Seller Disclosure NoticeRequest for Information from an Owner’s AssociationLead Based Paint Disclosure