{"id":118223,"date":"2023-09-02T18:41:28","date_gmt":"2023-09-02T18:41:28","guid":{"rendered":"https:\/\/learnexams.com\/blog\/?p=118223"},"modified":"2023-09-02T18:41:31","modified_gmt":"2023-09-02T18:41:31","slug":"champions-real-estate-bundled-exam-questions-and-answers-verified-by-expert-latest-update-2023-2024-100-well-illustrated","status":"publish","type":"post","link":"https:\/\/www.learnexams.com\/blog\/2023\/09\/02\/champions-real-estate-bundled-exam-questions-and-answers-verified-by-expert-latest-update-2023-2024-100-well-illustrated\/","title":{"rendered":"Champions Real Estate BUNDLED Exam Questions and Answers verified by Expert | Latest Update 2023-2024 | (100% WELL ILLUSTRATED)"},"content":{"rendered":"\n<p>Champions Real Estate Marketing SAE | 122<br>Questions and Answers 100% Correct<br>Most common reason a property fails to sell is &#8211; Answer price<br>Matching human needs with goods or services to meet those needs is the process<br>of &#8211; Answer marketing<br><strong><em><strong><em>_________<\/em><\/strong><\/em><\/strong> is a key personality trait of a successful agent &#8211;<br>Answer problem solving<br>3 Ways Sales Agents Add Value to the Buying Process &#8211; Answer Counseling,<br>Negotiating, and Managing the transaction<br>Four P&#8217;s of marketing real estate &#8211; Answer product, promotion, price and<br>place<br>How can you know your product? &#8211; Answer Inspect company listings<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Travel your geographic area<\/li>\n\n\n\n<li>Practice writing offers<\/li>\n\n\n\n<li>Do net sheet calculations on your own house<br>AIDA &#8211; Answer (The four psychological<br>steps of a sale: attention, interest, desire and action).<br>states that rational buyers will pay no more for a<br>property than they would for an equally desirable,<br>comparable property. &#8211; Answer The principle of substitution in real estate<br>valuation<br>Marketing to a specific age group is sometimes called &#8211; Answer generational<br>selling<br>An acronym for the psychological steps of a sale is &#8211; Answer AIDA<\/li>\n<\/ul>\n\n\n\n<p>A willingness to change and grow your marketing plan demonstrates to concept of<br><strong><em><strong><em>_<\/em><\/strong><\/em><\/strong><em>. &#8211; Answer adaptation<br>To be an effective problem solver, it is beneficial to understand \u2026. &#8211; Answer<br>basic human needs and the psychological<br>steps involved in a sale<br>defined as expected benefits to be received as a result of ownership &#8211; Answer<br>amenities<br>Objectives should be &#8211; Answer measurable and achievable as well as timely.<br>Goals should be &#8211; Answer attainable, flexible, measurable, and time frame<br>shot gun method &#8211; Answer often the preferred choice for new agents until<br>they realize that they can&#8217;t possibly take<br>on such a large-scale market<br>4 types of buyers &#8211; Answer -first time buyers<br>-relocators<br>-upgraders<br>-investors<br>communication is &#8211; Answer transcribing and receiving\/ talking and listening<br>Marketing budget goals should be set for a minimum<br>of <\/em>, realistically more &#8211; Answer 6 months<br><em>drive the market &#8211; Answer consumers<br>Agents should &#8220;listen&#8221; not only to what the client is<br>saying, but also to <strong><em><strong>________<\/strong><\/em><\/strong><\/em>. &#8211; Answer body language<br>To be an effective problem solver, a real estate agent should understand the<br><strong><em>__<\/em><\/strong> involved<br>in a sale. &#8211; Answer psychological<\/p>\n\n\n\n<p>Exam: Law of Agency \u2013 Champions | 60<br>Questions and Answers 100% Correct<br>Which of the following has the authority to suspend or revoke a Texas real estate license? &#8211; Answer<br>TREC<br>Which of the following is an element of a listing agreement? &#8211; Answer the agreement to pay a stated<br>commission, usually a percentage of the sales price<br>the IRS considers which of the following a violation of independent contractor status? &#8211; Answer<br>salesperson is told to work set hours, guaranteed a monthly minimum wage, has his licensing fees paid<br>by the broker<br>the TAR buyer representation agreement in or text book: &#8211; Answer authorizes intermediary,<br>authorizes the buyer to give the agent complete loyalty, establishes an exclusive market area<br>The amendments in 1996 to the License Act state that an agent is not liable for a misrepresentation or<br>concealment of material fact by a party if: &#8211; Answer The licensee did not know of the falsity of the<br>misrepresentation<br>One who hires an agent to represent him is called a: &#8211; Answer principal<br>It is always a good idea to have: &#8211; Answer The seller fill out the Seller&#8217;s Disclosure Notice<br>A real estate brokerage firm that practices buyer agency only has a lot of intermediary transactions. &#8211;<br>Answer false<br>Which of the following is a statutory defense for a lawsuit brought about by DTPA? &#8211; Answer Written<br>information obtained from a government record<br>A licensee is not liable for a misrepresentation or a concealment of a material fact made by a party to a<br>real estate transaction if the seller did not disclose it to the agent. &#8211; Answer true<\/p>\n\n\n\n<p>Actual awareness of a falsity, deception, or unfairness of an act under DTPA is known as: &#8211; Answer<br>knowingly<br>The TREC was established in: &#8211; Answer 1949<br>an exemption to using the Information About Brokerage Services form is: &#8211; Answer a lease for not<br>more than 1 year<br>listings can be terminated at any time by mutual agreement &#8211; Answer true<br>fiduciaries are: &#8211; Answer Held to the highest degree of good faith, Required to exclude selfish<br>interest, Require to make disclosures of all relevant facts<br>According to TREC advertising rules, the definition of advertisement includes all of the following, EXCEPT:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Answer Communication from a licensee to his or her client<br>real estate agents owe certain non-fiduciary duties to customers such as: &#8211; Answer honesty and<br>fairness<br>an unlicensed assistant may: &#8211; Answer host an open house<br>the best way to create an agency relationship is to do so: &#8211; Answer in writing<br>a licensee must present the information about brokerage services form: &#8211; Answer at the first<br>substantive discussion of a possible transaction<br>when actions lead another person to assume that one is an agent, this is known as: &#8211; Answer<br>ostensible agency<\/li>\n\n\n\n<li><\/li>\n<\/ul>\n\n\n\n<p>Real Estate Finance I-CHAMPIONS | 68 Questions<br>and Answers 100% Verified | Latest 2023-2024<br>The minimum downpayment on a VA loan is:<br>(a) 2% of the sales price<br>(b) 0% of the sales price<br>(c) 3.75% of the sales price<br>(d) 1% of the sales price &#8211; Answer B<br><strong><em>_<\/em><\/strong> is the process of creating a new mortgage loan.<br>(a) Origination<br>(b) Funding<br>(c) Underwriting<br>(d) Servicing<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>&#8211; Answer A<br>A veteran can have more than one VA loan:<br>(a) If the prior VA loan was paid in full and the property disposed of<br>(b) The prior VA loan was assumed by an eligible veteran who substituted their<br>entitlement<br>(c) A or B<br>(d) Under no circumstances &#8211; a VA loan is a &#8220;once in a lifetime&#8221; benefit<\/li>\n\n\n\n<li>&#8211; Answer C<br><strong><em>are not-for-profit organizations that exist to serve their members.<br>(a) Mortgage companies<br>(b) Credit unions<br>(c) Insurance companies<br>(d) One that cannot be financed &#8211; Answer B<br>A qualifying ratio that compares the borrower&#8217;s proposed house payment to their<br>gross monthly income is the <strong><em>_<\/em><\/strong><\/em><\/strong>.<br>(a) Back ratio<br>(b) Appraisal ratio<br>(c) Front ratio<br>(d) Loan to value ratio &#8211; Answer C<br>Periodic payment amounts such as principal &amp; interest, estimated escrow,<br>estimated monthly payment, and <strong><em><strong><em>_<\/em><\/strong> must be disclosed in the Projected<br>Payments section of the Loan Estimate form.<br>(a) Mortgage Insurance<br>(b) Homeowner&#8217;s insurance<br>(c) Property value<br>(d) Estimated inspection cost &#8211; Answer A<br><strong><em>__<\/em><\/strong><\/em><\/strong> relates to Federal Government spending.<\/li>\n<\/ul>\n\n\n\n<p>(a) Monetary policy<br>(b) Legislative policy<br>(c) Reserve requirement<br>(d) Fiscal policy &#8211; Answer D<br>In the Closing Disclosure, prepaids include homeowner&#8217;s and mortgage insurance<br>premiums, prepaid interest, property taxes, and a maximum of <strong><em>__<\/em><\/strong><br>additional items.<br>(a) 13<br>(b) 3<br>(c) 7<br>(d) 9 &#8211; Answer B<br>When calculating the monthly payment, the lender will add an amount equal to:<br>(a) Twelve months insurance and six months taxes<br>(b) 1\/12 of the annual taxes and insurance<br>(c) 1\/12 of the annual loan amortization<br>(d) An amount sufficient to create the escrow account &#8211; Answer B<br>Which of the following is true regarding FHA loans?<br>(a) An FHA loan requires a CRV<br>(b) Ratios may be exceeded with compensating factors<br>(c) FHA loans require a minimum 5% down payment<\/p>\n\n\n\n<p>Champions School of Real Estate &#8211; Exam Prep |<br>177 Questions and Answers 100% Verified |<br>Latest 2023-2024<br>Buyer Representation Agreement &#8211; Answer An employment contract obligating a broker to<br>act as a fiduciary to a buyer<br>Implied Agency &#8211; Answer Agency as a result of customary, usual or typical conditions<br>Broker &#8211; Answer A properly licensed party who serves a principal in an agency relationshipalso called an agent<br>Client &#8211; Answer A party represented by a broker in an agency relationship &#8211; also called a<br>principal<br>Duties of an Agent &#8211; Answer An agent owes his client obedience, loyalty, disclosure,<br>confidentiality, accounting and reasonable care (old car)<br>customer &#8211; Answer A third party &#8211; one a broker is working with, but who is not represented<br>by that broker<br>Exclusive Agency Listing &#8211; Answer A listing where one broker is the exclusive agent and will<br>earn a commission if the property is sold, unless the seller sells it himself- the seller is<br>competing with his broker<br>Ostensible Agency &#8211; Answer Agency as a result of the actions of an agent and the response<br>of other to those actions<br>Agency by Ratification &#8211; Answer Agency is established when an agent acts without<br>permission of the principal and the principal accepts or ratifies those actions.<br>Blind Ad &#8211; Answer An advertisement that does not clearly indicate the licensed status of the<br>party placing the ad &#8211; real estate licensees are prohibited from placing blind ads.<br>Duties of Principal &#8211; Answer A principal owes his agent compensation, reimbursement,<br>indemnification and performance<br>Procuring Cause of Sale &#8211; Answer The effort that results in the sale of property &#8211; the act of<br>bringing a ready, willing and able buyer to a seller resulting the sale of the seller&#8217;s property<\/p>\n\n\n\n<p>Exclusive right to sell &#8211; Answer A listing where one broker will earn a commission when the<br>property is sold, no matter who sells it<br>Listing Agreement &#8211; Answer An employment contract obligating a broker to act as a<br>fiduciary to a seller<br>Agency by Estoppel &#8211; Answer A principal fails to maintain due diligence over his agent and<br>as a result the court prevents the principal from denying the agency relationship<br>Dual Agent &#8211; Answer A broker who has the written permission of both the buyer and the<br>seller to represent both parties in a single transaction<br>Management Agreement &#8211; Answer An employment contract obligating a broker to act as a<br>fiduciary to a property owner<br>Sherman Anti-Trust Act &#8211; Answer Federal law that preserves business competition by<br>prohibiting monopolies, monopolistic practices and restraint of trade- in real estate the biggest<br>impact is on commissions- always negotiable<br>Agency &#8211; Answer The fiduciary relationship between a broker and a principal or a broker<br>and a client<br>Universal Agency &#8211; Answer A principal gives an agent the power to transact matters of all<br>types for him<br>Designated Agent &#8211; Answer A license appointed by a broker in a dual agency situation to<br>work with either the buyer or the seller in the transaction.<br>Commission &#8211; Answer A negotiated compensation in a broker&#8217;s employment contract.<br>Fiduciary &#8211; Answer A party acting for another in a position of trust &#8211; a broker, an agent<br>Public Responsibilities &#8211; Answer The responsibilities a broker has to customers or third<br>parties including honesty, fairness and disclosure of material facts<br>General Agency &#8211; Answer A principal gives an agent the power to bind him in a particular<br>trade or business<br>intermediary &#8211; Answer A broker in Texas who has the written permission of both the buyer<br>and the seller to represent both parties in a single transaction<\/p>\n\n\n\n<p>Champions Real Estate Finance | 188<br>Questions and Answers 100% Correct<br>Loan-to-Value Ratio (LTV) &#8211; Answer The percentage of the lesser of the<br>appraised value or sales price that the lender will lend.<br>ex: If a borrower is approved for an 80% loan, it means that the lender will loan up<br>to 80% of the sales price or appraised value, whichever is lower.<br>Package Mortgage &#8211; Answer Includes both real and personal property (<br>fixtures and furnishings)<br>Blanket Mortgage &#8211; Answer Covers more than one piece of property.<br>Wraparound Mortgage &#8211; Answer Method of financing which preserves the<br>low, existing interest rate on the original note.<br>Open-End Mortgage &#8211; Answer Permits additional borrowing on the same<br>note. This is sometimes called a credit card mortgage or a home equity line of<br>credit &#8211; HELOC.<br>Budget Mortgage &#8211; Answer The monthly house payment includes principal,<br>interest, taxes and insurance (known as PITI)<br>Collateral -Dependent Loans &#8211; Answer A hard money loan is a specific type of<br>asset-based financing in which a borrower receives funds secured by the value of<br>a parcel of real estate.<br>Character &#8211; Answer Is a measure of the willingness of a borrower to make ontime payments. Credit character is revealed in the borrower&#8217;s credit report.<br>Capacity &#8211; Answer Is a measure of the borrower&#8217;s ability to repay the debt,<br>and is demonstrated through current earnings and job stability.<br>Capital &#8211; Answer Is the sum of all assets that the borrower has accumulated.<\/p>\n\n\n\n<p>Collateral &#8211; Answer Is something of value that can be pledged as security for<br>repayment.<br>Yield &#8211; Answer Is the return that the investor recieves over the life of the loan.<br>(Also known as profit)<br>Originator &#8211; Answer The process of creating a new mortgage loan, including<br>all steps taken by a lender to attract and qualify a borrower.<br>Mortgage Broker &#8211; Answer Typically functions as a middleman between the<br>borrower and the lender, negotiating, selling or arranging loans to be delivered to<br>larger investors. At one time originated up to 80% of all mortgage loans. (Back on<br>the rise)<br>Mortgage Banker &#8211; Answer Entities which provide their own funds for the<br>purpose of providing mortgage financing, as opposed to commercial<br>banks\/savings associations. (Held, or &#8220;Warehoused&#8221;)<br>Correspondent Lender &#8211; Answer Usually smaller in scale than mortgage<br>bankers or brokers, these lenders typically extend loans with their own funds, at<br>their own risk.<br>Processing &#8211; Answer Once application is complete the file moves into this<br>phase.<br>Underwriting &#8211; Answer The detailed process of evaluating a borrower&#8217;s loan<br>application to determine the risk involved for the lender.<br>Closing &#8211; Answer The consummation of a real estate transaction in which all<br>appropriate documents are signed and the proceeds of the mortgage loan are<br>then disbursed by the lender.<br>Servicing &#8211; Answer Includes collecting monthly payments, maintaining records<br>of payments and balances, collecting and paying taxes and insurance ( and<\/p>\n\n\n\n<p>managing escrow and impound funds) remitting funds to the note holder, and<br>following up on delinquencies.<br>Supply and Demand &#8211; Answer an economic concept that states that the price<br>of a good rises and falls depending on how many people want it and depending<br>on how much of the good is available.<br>Funding &#8211; Answer The process of transferring funds to a title or escrow<br>company for disbursement<br>The Safe Act &#8211; Answer Designed to enhance consumer protection and reduce<br>fraud. (Key component of HERA)<br>M1 &#8211; Answer Is defined as the sum of currency held by the public and<br>transaction deposits at depository institutions.<br>M2 &#8211; Answer Is defined as M1 plus saving deposits, small-denomination time<br>deposits (those issued in amounts of less than $100,000) and retail money market<br>mutual funds shares.<br>Fiat Money &#8211; Answer Is currency that is not backed by any precious metals at<br>all.<br>Monetary Policy &#8211; Answer Is the maintenance of a stable money supply that<br>provides for growth in the economy while keeping inflation in. The federal<br>reserves is responsible for this policy in the United States.<br>Fiscal Policy &#8211; Answer Federal Government spending. Approved by Congress.<br>At the treasury level, funds can be raised to pay for government spending by<br>raising taxes and increasing borrowing.<br>Federal Reserve (The Fed) &#8211; Answer is the central bank of the United States<br>Monetary inflation &#8211; Answer When there is an excess of money supply in the<br>market.<\/p>\n\n\n\n<p>Principles of Real Estate 1- Champions School of<br>Real Estate Actual Questions and Answers<br>a freeway has made commuting to a distant suburban neighborhood easier, resulting in an increase in<br>new home sales. This increase in sales is an example of the economic characteristic of<br>A.) scarcity<br>B.) Fixity<br>C.) Situs<br>D.) Modification &#8211; Answer D.) Modification<br>The supply of Real Estate is affected by<br>A.) Land cost<br>B.) Building codes<br>C.) Government regulations<br>D.) All of these &#8211; Answer D.) All of these<br>The least important factor affecting demand for real estate is:<br>A.) Population Growth<br>B.) Personal Preference<br>C.) Availability of Credit<br>D.) Transportation Systems &#8211; Answer B.) Personal Preference<br>A lawsuit was tried on a real estate matter. The judge ruled in the case, citing the decision of a judge in a<br>similar case that was tried ten years ago. The judges decision in the case was most likely based upon:<br>A.) Statutory Law<br>B.) Civil Law<br>C.) Common Law<br>D.) Local ordinance &#8211; Answer C.) Common Law<\/p>\n\n\n\n<p>A license holder was tried in a state district court on a complaint arising from a real estate transaction.<br>The court ruled that, among other transgressions, the defendant had violated the Texas Real Estate<br>License Act. This decision of the judge was based upon:<br>A.) Statutory law<br>B.) Civil Law<br>C.) Common Law<br>D.) Local Ordinance &#8211; Answer A.) Statutory Law<br>RMLOs in Texas are licensed through:<br>A.) Texas Real Estate Commission<br>B.) National Mortgage Bankers Association<br>C.) Texas Department of Savings and Mortgage Lending<br>D.) Texas savings and loan board &#8211; Answer C.) Texas Department of Savings and Mortgage Lending<br>A Freeway has made commuting to a distant suburban neighborhood easier, resulting in an increase in<br>new home sales. This increase in sales is an example of the economic characteristics of:<br>A.) Scarcity<br>B.) Fixity<br>C.) Situs<br>D.) Modification &#8211; Answer D.) Modification<br>Air Rights are commonly leased or conveyed in:<br>A.) Cell tower leases<br>B.) Condominiums<br>C.) Outdoor Advertising<br>D.) All of these are correct &#8211; Answer D) all of these<br>Building, roads and fences are all examples of:<br>A.) Personal Property<br>B.) Private Property<\/p>\n\n\n\n<p>C.) Improvements<br>D.) Public Property &#8211; Answer C.) Improvements<br>If a tenant fails to remove trade fixtures from the leased premises, the fixtures become the property of<br>the landlord through:<br>A.) Remediation<br>B.) Adverse Possession<br>C.) Accession<br>D.) Descent &#8211; Answer C.) Accession<br>Effective in 1976, manufactured homes have been built according to a building code administered by:<br>A.) Local building departments<br>B.) State code enforcement<br>C.) HUD<br>D.) FHA &#8211; Answer C.) HUD<br>Homes that are built in sections according to local building codes and assembled on the job site are<br>known as:<br>A.) Trailers<br>B.) Mobile Homes<br>C.) Modular Homes<br>D.) Site built Homes &#8211; Answer C.) Modular Homes<br>Manufactured home dealers and sales people in Texas are licensed by:<br>A.) TREC<br>B.) The TDHCA<br>C.) The TALCB<br>D.) TRELA &#8211; Answer B.) The TDHCA<\/p>\n\n\n\n<p>Real Estate Exam Prep (Champions; Texas) | 160<br>Questions and Answers with Complete Solutions<br>appurtenance &#8211; Answer term used to describe rights, privileges or improvements that belong to and<br>pass with the land<br>improvements &#8211; Answer man&#8217;s additions to the land such as building and landscaping<br>personal property &#8211; Answer also called chattel or personality; a right or interest in smiting of a<br>temporary or movable nature and includes anything not classed as real property. Real property becomes<br>personal property through severance.<br>bill of sale &#8211; Answer ownership of chattel or personality is transferred via this, also called a nonrealty item addendum<br>fixture &#8211; Answer item that was personal property but has been attached in such a way that it has<br>become real property such at tv brackets<br>installed &#8211; Answer often indicates a permanent attachment<br>annexation &#8211; Answer the process of attaching an item of personal property to real estate such that it<br>becomes a fixture<br>severance &#8211; Answer the process of real property becoming personal. Fixture is uninstalled and<br>becomes personal property again<br>trade fixtures &#8211; Answer term used for fixtures in commercial transactions. installed by a tenant to<br>carry out a business and may be removed prior to the termination of the lease. If they are not removed<br>they become real property and pass to the landlord<\/p>\n\n\n\n<p>emblements &#8211; Answer crops that are cultivated annually. Considered the personal property of the<br>farmer who cultivated them. Ownership can be transferred with a bill or sale, or farmer may make<br>arrangements to return to the property and harvest them one time.<br>physical characteristics of real property &#8211; Answer non homogeneity-no two exactly alike; immobilitycannot be moves; indestructibility-will always be there<br>economic characteristics of real property &#8211; Answer scarcity-naturally desirable; modification-change<br>or improve; fixity-not liquid assets; situs-prestige location.<br>nonhomogeneity &#8211; Answer one of three physical characteristics of land; no two pieces are exactly<br>alike<br>immobility &#8211; Answer one of three physical characteristics of land; land cannot be moved<br>indestructibility &#8211; Answer one of three physical characteristics of land; land is durable and will always<br>be there<br>scarcity &#8211; Answer one of four economic characteristics of land; land is in short supply where demand<br>is great (geographic considerations)<br>modification &#8211; Answer one of four economic characteristics of land; land use and value are greatly<br>influenced by improvements made by man to land and to surrounding parcels of land<br>fixity &#8211; Answer one of four economic characteristics of land; land and buildings and other<br>improvements to land are considered fixed or permanent investments (not liquid)<br>situs &#8211; Answer one of four economic characteristics of land; location preference from an economic<br>rather than a geographic standpoint<\/p>\n\n\n\n<p>Champions Real Estate &#8211; Principles 1 Exam 2023-<br>2024 | 105 Questions and Answers with Complete<br>Solutions<br>brokerage &#8211; Answer the aspect of the real estate business that pertains to<br>overseeing the needs of the parties and completing a transaction; a brokerage<br>transaction may or may not involve agency relationships<br>The role of a property manager &#8211; Answer Generally responsible for the day to<br>day operations of the property, maintenance, and tenant relations<br>How are home inspectors licensed? &#8211; Answer Home inspectors are licensed in<br>Texas by TREC.<br>Real Estate Development &#8211; Answer most often involves the acquisition of land<br>for development into residential subdivisions, retail centers and other commercial<br>uses.<br>National Association of Realtors (NAR) &#8211; Answer the nationwide association is<br>divided into state associations, and further divided into local associations or<br>boards. The local associations or boards operate the MLS in markets throughout<br>the US.<br>The benefits of home ownership include: &#8211; Answer Pride of Ownership,<br>Occupancy, Tax Benefits, Investment, Security: POOTIS=m<br>Physical Characteristics of Land: Indestructibility &#8211; Answer Indestructibility<br>refers to the fact that land cannot be destroyed. The other two characteristics are<br>immobility and non-homogeneity (uniqueness)<br>Demand for real estate is affected by: &#8211; Answer 1. Growth in employment<\/p>\n\n\n\n<ol class=\"wp-block-list\" start=\"2\">\n<li>Personal preference<\/li>\n\n\n\n<li>Availability of credit<br>as well as transportation systems and Federal government policy<\/li>\n<\/ol>\n\n\n\n<p>Common Law vs. Statutory Law &#8211; Answer Common Law was developed in<br>England and based on common sense and local custom; under this system, a court<br>looks to the findings of prior courts when rendering a decision<br>Statutory law is enacted by federal and state legislative bodies<br>What is the purpose of the Texas Real Estate Licensing Act (TRELA 1939)? &#8211;<br>Answer The purpose of TRELA is to protect the public against unscrupulous<br>brokers and sales agents.<br>What is TREC (1949)? &#8211; Answer TREC was created by the state legislature in<\/p>\n\n\n\n<ol class=\"wp-block-list\" start=\"1949\">\n<li>It has 9 members who carry out the provisions in TRELA.<br>TREC has been granted powers by the Legislature to: &#8211; Answer -File actions<br>against a license holder on its own notion<br>-Assess admin. penalties of up to $5k per day against offending licensed and<br>unlicensed officials<br>-Promulgate forms which are mandatory for license holders<\/li>\n<\/ol>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Suspend or revoke licenses of violators<br>-Subpoena books, records, witnesses and file suit with the AG to enforce<br>subpoena<br>as well as issue licenses, enact rules and regulations, place a license holder on<br>probation, require education<br>Land &#8211; Answer the surface of the earth extending downward to the center of<br>the earth and upwards above the surface extending to infinity; includes trees,<br>crops and water<br>Rights to land are considered &#8220;severable&#8221;\u2026 &#8211; Answer the ability for different<br>individuals to own the different rights of the same piece of land<br>Surface Rights &#8211; Answer The owner of surface rights has the ability to develop<br>(improve) the surface, and to use resources extracted from or near the surface<br>including stone, gravel, water, and limestone.<\/li>\n<\/ul>\n\n\n\n<p>Improvements are: &#8211; Answer any man-made addition to the land that is<br>permanent and considered to become part of the land<br>Personal Property &#8211; Answer things of a temporary or movable nature that are<br>not part of the real property; known as personalty or chattel. If personal property<br>is being transferred with real property, a bill of sale is used to accomplish the<br>transfer<br>Fixtures are: &#8211; Answer Personal property that has become attached to the<br>land.<br>The process of attaching personal property so that it becomes real property is<br>called: &#8211; Answer Annexation<br>Severance &#8211; Answer removing fixtures to create personal property<br>The courts apply 3 tests to determine if something is a fixture. These include: &#8211;<br>Answer 1. The intention of the parties when the item was installed<\/p>\n\n\n\n<ol class=\"wp-block-list\" start=\"2\">\n<li>The method of attachment<br>and adaptation of the property<br>Emblements &#8211; Answer Annual crops; considered personal property and may<br>be harvested by the owner of the crop; ensures that the tenant will be allowed to<br>harvest even if they lose possession of the property prior to harvest time<br>Rights that are associated with ownership of real property are referred to as the<br>owner&#8217;s: &#8211; Answer Bundle of rights<br>ad valorem tax &#8211; Answer A tax levied according to value, generally used to<br>refer to real estate tax. Property taxes create the highest priority lien against real<br>property<br><strong><em>_<\/em><\/strong> is considered to be the best type of ownership as it places the least<br>number of limitations and most rights on the owner &#8211; Answer Fee simple<br>absolute ownership or fee simple ownership<\/li>\n\n\n\n<li><\/li>\n<\/ol>\n\n\n\n<p>Law of Agency &#8211; Champions School of<br>Real Estate Questions and Answers<br>The principal is also known as &#8211; Answer client<br>fiduciary relationship &#8211; Answer a relationship founded on trust and<br>confidence<br>Agency Relationship &#8211; Answer Exists when one person (the agent) acts for, or<br>on<br>behalf of another person (the principal).<br>the principal &#8211; Answer is the one who hires and gives authority to the agent<br>Texas Real Estate License Act TRELA &#8211; Answer Was passed 1939. The purpose<br>is to protect the public against unscrupulous brokers and sales agents.<br>Texas Real Estate Commission TREC &#8211; Answer Was created to enforce and<br>administer TRELA in 1949. The purpose of this act is to protect the public against<br>unscrupulous brokers and sales agents.<br>A licensed broker may not pay a commission to or otherwise compensate a person<br>directly or indirectly for performing an act of a broker unless the person is\u2026 &#8211;<br>Answer a license holder or a real estate broker licensed in another state<br>TRELA may suspend or revoke a license or take other disciplinary action if the<br>license holder, while engaged in real estate brokerage engages in\u2026 &#8211; Answer<br>conduct that is dishonest or in bad faith or that demonstrates untrustworthiness<br>a broker works FOR &#8211; Answer a client<br>a broker works WITH &#8211; Answer a customer<br>how does a buyer become a client &#8211; Answer by entering into a buyer<br>representation agreement with the broker<\/p>\n\n\n\n<p>Subagent &#8211; Answer A license holder not associated with the seller&#8217;s broker,<br>but who is representing the seller through a cooperative agreement, often<br>through membership in a Multiple Listing Service (MLS), with the seller&#8217;s broker.<br>An agency relationship exists when one person, the <strong><em>_ acts for, or on behalf of another person, the __<\/em><\/strong> &#8211; Answer agent, principal<br>which of the following is grounds for suspension or revocation of license by TREC?<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Answer splitting commission with a person other than a license holder<br>The commission can deny licensure to an applicant based on the applicant&#8217;s<br><strong><em><strong><em>___________<\/em><\/strong><\/em><\/strong> &#8211; Answer moral character<br>Ostensible Agency &#8211; Answer exists when actions lead another person to<br>assume that one is an agent.<br>Agency by Ratification &#8211; Answer Occurs when an agent acts without prior<br>authorization, and the principal, upon learning of this action, accepts it.<br>agency coupled with an interest &#8211; Answer When a broker is the owner of a<br>property that is being sold, or when a broker is interested in buying a property, we<br>have agency coupled with an interest<br>Agency Authority &#8211; Answer or rights, may also be a result of &#8220;the norm&#8221;, or<br>what is considered customary in the business<br>Implied Authority &#8211; Answer an agent&#8217;s authority to do things not specifically<br>authorized in order to carry out express authority<br>Fiduciaries &#8211; Answer are held to the highest amount of good faith, are<br>required to exclude all selfish interest, are prohibited from putting themselves in<br>positions where personal interest and representative interest will conflict and<br>must, in any direct dealing with the principal, make full disclosure of all relevant<br>facts and give the latter an opportunity to obtain independent advice<\/li>\n\n\n\n<li><\/li>\n<\/ul>\n\n\n\n<p>Champions School of Real Estate-Principles<br>of Real Estate II | 123 Questions and Answers<br>Appraisal &#8211; Answer an appraiser&#8217;s opinion of value, used to determine market<br>value property to secure the loan<br>Loan to Value Ratio &#8211; Answer Percentage of value or sales price that a lender<br>is willing to finance<br>Desk Review &#8211; Answer an appraisal that simply reviews a checklist of items as<br>they analyze the appraisal report for completeness and acceptable conclusions<br>Field Review &#8211; Answer An independent 3rd party appraiser will be contracted<br>to review the appraisal report to verify accuracy of data, elements and procedures<br>used.<br>Limited Appraisals &#8211; Answer an exterior only or drive by inspection<br>Highest and Best use &#8211; Answer the legal use that gives the greatest return in<br>money or amenities.<br>Principal of contribution &#8211; Answer the value of a property is equal to the sum<br>of the contributory value of each of its component parts. Cost does not equal<br>value<br>Principle of change &#8211; Answer Change is constant, and are always effecting<br>value<br>Principle of Anticipation &#8211; Answer the purchase price is affected by the<br>expectation of future appeal and benefits<br>Principle of Substitution &#8211; Answer value of commodity is influenced by the<br>cost of acquiring a substitute or comparable item<\/p>\n\n\n\n<p>Principal of Conformity &#8211; Answer value is maximized when there is a<br>reasonable degree of homogeneity or sameness in a neighborhood.<br>Principle of Increasing and Decreasing Returns &#8211; Answer improve but don&#8217;t<br>over improve; improve property when the value added by the improvement<br>exceeds the cost of the improvement.<br>Principle of Supply and Demand &#8211; Answer Demand is great and supply is<br>short, prices increase; supply is high demand is low prices decrease<br>Principle of regression &#8211; Answer lower priced properties in the area will cause<br>a decline in the value of the subject property<br>Principle of Competition &#8211; Answer Absence of competition will cause prices to<br>increase in the marketplace; increased competition tend to bring prices down<br>Characteristics of Value &#8211; Answer Demand<br>Utility<br>Scarcity<br>Transferability<br>Demand &#8211; Answer must be sufficient demand for the property for it to have<br>value<br>Utility &#8211; Answer Must be able to fulfill a need.<br>Scarcity &#8211; Answer If a type of property is to abundant it has reduced value. If<br>Market is flooded values will be flat<br>Transferability &#8211; Answer If the property cannot be transferred, it is of little<br>value.<br>Market Value &#8211; Answer The most probable price a property should bring in a<br>competitive and open market.<br>Ad Valorem &#8211; Answer according to value<\/p>\n\n\n\n<p>Champions Real Estate Exam Prep (Texas) | 665<br>Questions and Answers 100% Verified | Latest<br>Update 2024<br>In <strong><em><strong>_ the Texas Real Estate Commission was established to administer and enforce the TRELA. &#8211; Answer 1949 TREC has only <em>_<\/em><\/strong><\/em><\/strong><em> promulgated lease forms. &#8211; Answer 2<br>In the TAR\u00ae Seller&#8217;s Disclosure the seller should <\/em>.<br>a. prepare the disclosure when the listing is taken<br>b. be the only one completing this form or any part of it<br>c. none of the above<br>d. both a and b &#8211; Answer d. both a and b<br>The <em>statute provides that the sender&#8217;s message must contain clear and<br>conspicuous notice that the message is an advertisement or solicitation.<br>a. CAN-SPAM<br>b. Interstate Land Sales Full Disclosure Act<br>c. Do Not Call<br>d. Junk Fax Prevention Act &#8211; Answer CAN-SPAM<br>A <strong>is a possible polluter who may be held liable under CERCLA for the<br>contamination of a property or resource.<br>a. Safe Harbor<br>b. EBR<br>c. PRP<br>d. TMARR &#8211; Answer PRP<br>If you hire a mold remediator he must give you a Certificate of Mold Remediation<br>no later than<\/strong><\/em> days after work is complete. &#8211; Answer 10<\/p>\n\n\n\n<p>In order to comply with the <em>, contracts for the conveyance of an interest<br>in real estate or leases for a term of more than one year must be in writing.<br>a. SAFE Act<br>b. Statute of Frauds<br>c. Statue of Limitations<br>d. RESPA &#8211; Answer Statute of Frauds<br>A unilateral contract is said to lack <strong><em><strong>_<\/strong><\/em><\/strong><\/em><strong>.<br>a. Mutuality<br>b. Fairness<br>c. Agreement<br>d. Signatures &#8211; Answer Mutuality<br>Contracts with a person who lacks mental capacity can be either void or<br><em>___<\/em><\/strong>.<br>a. Implied<br>b. Unilateral<br>c. Voidable<br>d. Express &#8211; Answer voidable<br>All of the land in the U.S. is held under the <strong><em>__<\/em><\/strong> system.<br>a. Feudal<br>b. Freedom<br>c. Statutory<br>d. Allodial &#8211; Answer Allodial<br>The main reason(s) for homestead laws include(s):<br>a. Preventing the foreclosure of the homestead under any circumstances<br>b. Prevention of the forced sale of a home by creditors<br>c. Protection of a creditor&#8217;s interests in a debtor&#8217;s property<br>d. All of these are correct &#8211; Answer<\/p>\n\n\n\n<p>In many states, recognized statutory estates include <em>.<br>a. community property<br>b. riparian right<br>c. reservation<br>d. encroachment &#8211; Answer community property<br>Only a<\/em> may earn a commission and only a <em>may sue to collect a<br>commission.<br>a. broker, agent<br>b. agent, broker<br>c. broker, broker<br>d. none of the above &#8211; Answer broker, broker<br>Regardless of representation, all buyers should be provided with a(n)<\/em><br>disclosure of representation at first contact.<br>a. oral<br>b. written<br>c. email<br>d. all of these are correct &#8211; Answer d. all of these are correct<br>This <strong><em>_<\/em><\/strong> is an employment contract.<br>a. listing agreement<br>b. buyer-representation<br>c. both a and b<br>d. none of the above &#8211; Answer c. both a and b<br>What does a real estate agent do with multiple offers on a property?<br>a. He\/she can choose the best offer for the client.<br>b. He\/she can hold all offers until one comes in that is over the asking price.<br>c. He\/she may present the highest offers only.<br>d. He\/she must present all offers to the client. &#8211; Answer d. He\/she must<br>present all offers to the client.<\/p>\n\n\n\n<p>An offer can be communicated by <strong>.<br>a. letter<br>b. phone<br>c. either a or b<br>d. must be done orally &#8211; Answer c. either a or b<br>A permanent marker installed on the land by a surveyor is called <em>.<br>a. a monument<br>b. metes<br>c. bounds<br>d. a lot &#8211; Answer a. a monument<br>Ownership of real property can be divided among ___<\/em><\/strong>.<br>a. surface rights<br>b. air rights<br>c. subsurface rights<br>d. any and all of the above<br>Which of the following is NOT considered a common addenda form?<br>a. Exclusive Right to Sell<br>b. Financing addendum<br>c. Mineral reservations<br>d. Lead-based paint<br>Which of the following is true of an addendum to a contract?<br>a. It is a provision in a contract that requires that a certain act or event happens in<br>order for the contract to be binding on the party.<br>b. It is synonymous with contingent<br>c. It is an attachment that adds or further describes the rights and duties of the<br>parties.<br>d. All of these are correct &#8211; Answer d. any and all of the above<\/p>\n\n\n\n<p>Champions &#8211; Principles of Real Estate 1 &#8211; Chapter 1:<br>Introduction to Real Estate Questions and Answers<br>100% Verified<br>Brokerage &#8211; Answer overseeing the needs of the parties to a real estate transaction and seeing it to<br>its completion<br>Property Management &#8211; Answer management of residential and commercial properties on behalf of<br>investor-owner; day-to-day operations, maintenance, tenant relations<br>Real Estate Development &#8211; Answer most often involves the acquisition of land for development into<br>residential subdivisions, retail centers and other commercial uses.<br>Economic Characteristics of Land &#8211; Answer scarcity, modification, fixity, situs<br>Modification &#8211; Answer value is affected by man-made changes to the land; improved transportation<br>Fixity &#8211; Answer Land and additions to the land take a long period of<br>time to pay for itself; cannot be moved<br>Situs &#8211; Answer Refers to the economic location of real estate; &#8220;location, location, location&#8221;; based on<br>the preferences people have for specific characteristics in property, and the fact that location dominates<br>those preferences<br>Statutory Law &#8211; Answer body of laws and enacted by federal and state legislative bodies<br>Appraisal &#8211; Answer Providing a professional opinion of the value of real property<br>Apartment Locator &#8211; Answer locates units for tenants in multifamily complexes; must have license<\/p>\n\n\n\n<p>Champions &#8211; Principles of Real Estate I<br>Questions and Answers 100% Verified<br>Appraisal is the business of: &#8211; Answer Providing a professional opinion of the value of real property<br>A professional association whose local affiliates own and operate MLS systems throughout the United<br>States is the: &#8211; Answer NAR<br>RMLOs in Texas are licensed through &#8211; Answer Texas Department of Savings and Mortgage Lending<br>Indestructibility, a physical characteristic of land, is also known as: &#8211; Answer Durability<br>A freeway has made commuting to a distant suburban neighborhood easier, resulting in an increase in<br>new home sales. The increase in sales is an example of the economic characteristic of: &#8211; Answer<br>Modification<br>The supply of real estate is affected by: &#8211; Answer land cost, building codes, government regulation<br>The least important factor affecting demand for real estate is: &#8211; Answer Personal preference<br>A lawsuit was tried on a real estate matter. The judge ruled in the case, citing the decision of a judge in a<br>similar case that was tried ten years ago. The judge&#8217;s decision in the case was most likely based upon: &#8211;<br>Answer Common law<br>A license holder was tried in a state district court on a complaint arising from a real estate transaction.<br>The court ruled that, among other transgressions, the defendant had violated the TRELA. This decision of<br>the judge was based upon: &#8211; Answer Statutory law<br>Rights that are associated with the ownership of real property are often referred to as the owner&#8217;s: &#8211;<br>Answer Bundle of rights<\/p>\n\n\n\n<p>Surface, subsurface and air rights are said to be: &#8211; Answer Severable<br>Air rights are commonly leased or conveyed in: &#8211; Answer (1) Cell tower leases<br>(2) condominiums<br>(3) Outdoor Advertising<br>Buildings, roads and fences are all examples of: &#8211; Answer Improvements<br>If a tenant fails to remove trade fixtures from the leased premises, the fixtures become the<br>property of the landlord through:<br>a. Remediation<br>b. Adverse possession<br>c. Accession<br>d. Descent &#8211; Answer Accession<br>Effective in 1976, manufactured homes have been built according to a building code administered by:<br>a. Local building departments<br>b. State code enforcement<br>c. HUD<br>d. FHA &#8211; Answer HUD<br>Homes that are built in sections according to local building codes and assembled on the job site are<br>known as: &#8211; Answer Modular homes<br>Manufactured home dealers and sales people in Texas are licensed by: &#8211; Answer The TDHCA<\/p>\n\n\n\n<p>Champions School of Real Estate (Real<br>Estate Salesperson State Prep Exam 1)<br>TREC has the power to order witnesses to appear and\/or produce records of documents for its<br>investigations and hearings. This is called subpoena power. If a license holder fails to respond to a<br>subpoena, what can TREC do?<br>(a) TREC can assess an administrative penalty against the license holder for up to $4,000.<br>(b) TREC can immediately revoke the license of the license holder without a hearing.<br>(c) TREC can file suit with the Attorney General to enforce the subpoena.<br>(d) TREC can file charges of felony against the license holder, based on fraud. &#8211; Answer (c) TREC can<br>file suit with the Attorney General to enforce the subpoena.<br>A license holder in violation of the TRELA has recieved a summons from TREC that a hearing will be held<br>regarding the possible revocation or suspension of his license. The license holder fails to respond to the<br>summons. What will TREC do?<br>(a) Schedule a hearing in the county court where the license holder practices real estate<br>(b) Schedule a hearing at the TREC office in Austin<br>(c) Schedule a hearing in the district court serving the license holder &#8211; Answer (b) Schedule a hearing<br>at the TREC office in Austin<br>With the knowledge and consent of her broker\/employer, an unlicensed assistant is showing property to<br>prospective buyers. What is true about this situation?<br>(a) The broker and unlicensed assistant are both guilty of a third degree felony<\/p>\n\n\n\n<p>(b) Both the broker and unlicensed assistant can be fined an administrative penalty of $5,000 per day<br>(c) Only the unlicensed assistant can be fined by TREC for this activiy<br>(d) Only the broker can be fined by TREC for this activity &#8211; Answer (b) Both the broker and the<br>unlicensed assistant can b fined an adiministrative penalty of $5,000 per day<br>TREC has recieved an application for a Texas Real Estate Sales License from Mary. Mary has completed all<br>her educational requirements, and passed the state exam. At this point TREC will begin the background<br>check. Which of the following statements is FALSE?<br>(a) TREC has no time limit for determining integrity<br>(b) TREC has 30 days to complete the background check<br>(c) TREC has 30 days to notify Mary of a decision to dissaprove her application<br>(d) Mary has 10 days to appeal a denial of her application &#8211; Answer (b) TREC has 30 days to complete<br>the background check<br>Marcos was a Texas licensed Real Estate Sales agent for some time. He then chose to become inactive<br>and TREC has been holding his license in inactive status. He now wishes to activate the license. What will<br>he have to do?<br>(a) Apply through a broker, pay $50 and take a 30-hour continuing education course<br>(b) Apply through a broker, pay $200 and take a 30-hour continuing education course<br>(c) Apply through a broker, pay $50 and take a 18-hour continuing education course<br><\/p>\n\n\n\n<p>Champions Real Estate License Exam<br>Prep Chapters 1 &amp; 2<br>Real Property &#8211; Answer Consists or land, improvements attached to the land, benefits, rights and<br>ownership interests that go with the land.<br>Appurtenance &#8211; Answer Used to describe rights, privileges or improvements that belong to and pass<br>with the land.<br>Personal Property &#8211; Answer a right or interest in things of a temporary or movable nature; anything<br>not classified as real property<br>-AKA chattel or personalty<br>Fixture or Annexation &#8211; Answer An item of personal property that has been converted to real<br>property by being permanently affixed to the realty.<br>Severance &#8211; Answer Process of real property becoming personal<br>Tests of Fixtures &#8211; Answer -Method of attachment<br>-Adaptation to the property (custom or stock items)<br>-The intention of the parties attaching the fixture<br>Trade fixtures &#8211; Answer Fixtures installed by a tenant in order to carry out a business and they may<br>be removed from leased property prior to the termination of the lease<br>Emblements &#8211; Answer Are crops cultivated annually<br>-considered personal property<br>-ownership can be transferred with a bill of sale<\/p>\n\n\n\n<p>Characteristics of Real property &#8211; Answer Physical Characteristics:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Immobility<\/li>\n\n\n\n<li>Indestructibility<\/li>\n\n\n\n<li>Uniqueness<br>Economic Characteristics:<\/li>\n\n\n\n<li>Scarcity<\/li>\n\n\n\n<li>Improvements\/Modifications<\/li>\n\n\n\n<li>Permanence of Investment\/Fixity<\/li>\n\n\n\n<li>Area Preference\/Situs<br>Legal Descriptions &#8211; Answer -Metes and bounds<br>-Lot, block, and subdivision<br>-Rectangular survey system aka the gov survey system<br>Public and Private Land Use Controls (Encumbrances) &#8211; Answer -Police Power<br>-Eminent Domain (Gov taking private property but compensating property owners aka condemnation)<br>-Taxation<br>-Escheat (dies leaving no will)<br>Private Controls, Restrictions, and Encroachments &#8211; Answer Most common: CC&amp;Rs- deed covenants,<br>conditions and restrictions (deed restrictions, HOA, or POA)<br>Encumbrance &#8211; Answer A limit on a property, or a limit on a property&#8217;s owner&#8217;s rights, that may or<br>may not also be a cloud on the title<br>-Reservation: imposed by the grantor, like a mineral right or easement<br>-Encroachment: when a structure or improvement overlaps or trespasses onto another&#8217;s property, must<br>be disclosed<br>-Easement: allows limited use or enjoyment of another&#8217;s land: express or implied<\/li>\n\n\n\n<li><\/li>\n<\/ul>\n\n\n\n<p>Champions Real Estate Exam: Law of Agency |<br>286 Questions and Answers | Updated 2023-2024<br>This person hires an agent &#8211; Answer The Principal<br>The agent works on behalf of this person &#8211; Answer the client (principal)<br>This type of agency allows for the greatest range of authority &#8211; Answer Universal<br>This is provided to the agent when there is written documentation that the agency relationship exists. &#8211;<br>Answer Express authority<br>This is the most limited of all the agency relationships &#8211; Answer Special agency<br>This type of agency is created when a 3rd party believes that an agent has authority that has NOT been<br>granted by a principal &#8211; Answer Agency by Estoppel<br>This type of agency is created when actions lead another person to assume that one is an agent<br>(Example- you have a key to neighbors home and show the property) &#8211; Answer Ostensible Agency<br>If a buyer hasn&#8217;t signed a buyer&#8217;s rep agreement, then who is representing the buyer? &#8211; Answer No<br>one<br>This establishes a relationship with a broker &#8211; Answer The Buyer\/Tenant Representation agreement<br>This can be written or oral &#8211; Answer Disclosure of Representation<br>These are required to place their own selfish interests behind that of their clients. &#8211; Answer<br>Fiduciaries<\/p>\n\n\n\n<p>A licensee isn&#8217;t required to provide the IABS when\u2026 &#8211; Answer the licensee meets with a party that is<br>already represented<br>A broker is obligated to treat who honestly? &#8211; Answer client, customer, and agents<br>Broker must have written consent to act as\u2026 &#8211; Answer an intermediary<br>IABS form is the property of\u2026 &#8211; Answer TREC<br>Broker Bob is the broker\/owner of ABC Realty. Agent Bill at ABC Realty is a listing agent. Agent Sue, also<br>at ABC Realty, is working with a buyer who is being represented by the firm. Agent Sue&#8217;s buyer wants to<br>purchase Agent Bill&#8217;s listing<br>In the above transaction, Broker Bob will: &#8211; Answer Remain neutral and refrain from providing advice<br>and opinion to either party<br>The IABS should contain &#8211; Answer How the broker will be compensated<br>Broker Steve, having no agents, is a solo practitioner. He has a client buyer that wants to purchase one of<br>his listings. The process that Broker Steve must use is: &#8211; Answer Intermediary without appointments<br>A fiduciary relationship is based on &#8211; Answer trust<br>Agent Joe at ABC Realty has a listing. Agent Sean at City Realty has a buyer who wishes to<br>purchase Joe&#8217;s listing. The buyer that Agent Sean is working with has chosen to not enter into an<br>agency relationship with City Realty.<br>In the above transaction, who is representing the buyer? &#8211; Answer No body because the buyer is a<br>customer.<br>Agent Joe at ABC Realty has a listing. Agent Sean at City Realty has a buyer who wishes to<\/p>\n\n\n\n<p>purchase Joe&#8217;s listing. The buyer that Agent Sean is working with has chosen to not enter into an<br>agency relationship with City Realty.<br>In the above transaction, who is City Realty representing? &#8211; Answer The seller, because City Realty is<br>a subagent of ABC Realty in this transaction<br>Agent Joe at ABC Realty has a listing. Agent Sean at City Realty has a buyer who wishes to<br>purchase Joe&#8217;s listing. The buyer that Agent Sean is working with has chosen to not enter into an<br>agency relationship with City Realty.<br>What type of transaction is this? &#8211; Answer cooperative (co-op)<br>An exemption to using the Information About Brokerage Services form is: &#8211; Answer a lease for less<br>than 1 year with no sale anticipated<br>A licensee not associated with the client&#8217;s broker but who is representing the client through a<br>cooperative agreement with the client&#8217;s broker is known as: &#8211; Answer Subagent<br>This must be in at least 10 point type, must have the exact language prescribed in the License Act<br>and must be provided to a buyer or seller at the first substantive discussion of a real estate<br>transaction &#8211; Answer IABS (Information About Brokerage Services)<br>Jeffrey wants to see property that your company has listed; he does not want to be represented.<br>The agent must: &#8211; Answer give Jeffrey the IABS form<br>A licensee must present the Information About Brokerage Services form: &#8211; Answer at the first<br>substantive discussion of a real estate transaction<br>A licensee has a listing with a seller and has a buyer&#8217;s representation agreement signed with a<br>buyer who desires to purchase this agent&#8217;s listing. How is the agent operating? &#8211; Answer as a nonappointed associate in an Intermediary relationship<\/p>\n\n\n\n<p>TREC was established in: &#8211; Answer 1949<br>Which of the following is the real estate licensing authority in Texas? &#8211; Answer TREC<br>A termination date in a listing agreement must be: &#8211; Answer definite<br>Which of the following is NOT an agent&#8217;s duty to a client? &#8211; Answer Trust<br>These are the duties: OLDCAR: Obedience, loyalty, disclosure, confidentiality, accounting, reasonable<br>care<br>The duty of <strong><em><strong>_<\/strong><\/em><\/strong> means that an agent must follow all of the lawful instructions of<br>the client. &#8211; Answer obedience<br>Jerome is a licensed agent who desires to sell his mother&#8217;s home. Jerome has the property<br>listed with his brokerage firm and finds a buyer himself to buy mom&#8217;s home. Jerome should: &#8211; Answer<br>Disclose to the buyer in writing that the seller is his mother.<br>If an agent sells their own property, acting as a principal, the agent must: &#8211; Answer disclose to the<br>party in writing that they are a licensed agent<br>Confidential information between client and agent should be: &#8211; Answer kept confidential forever<br>In most states other than Texas, the most common method of dealing with in-house<br>transactions between client buyers and sellers is: &#8211; Answer dual agency<br>When handling escrow funds for clients, the License Act requires that funds be deposited in<br>a &#8220;reasonable time&#8221;. A reasonable time is defined as: &#8211; Answer 2 business days<br>The listing agreement should contain: &#8211; Answer the legal description of the property<\/p>\n\n\n\n<p>Chapter 4 National Real Estate Exam<br>Prep (Champions School of Real estate)<br>Express contract &#8211; Answer Contract that is written or stated<br>Implied contract &#8211; Answer Contract by actions or evidence<br>Unilateral Contract &#8211; Answer binds only one party. Example an option<br>Option contract &#8211; Answer The right to purchase property within a definite time at a specified price<br>Bilateral contract &#8211; Answer Exchange of promises, binds both parties.<br>Required elements of a contract &#8211; Answer 1. Competent parties<\/p>\n\n\n\n<ol class=\"wp-block-list\" start=\"2\">\n<li>Offer and acceptance<\/li>\n\n\n\n<li>Legal purpose<\/li>\n\n\n\n<li>In writing<\/li>\n\n\n\n<li>Consideration<br>Executed (Fully executed) &#8211; Answer When all the terms and conditions of the contract have been<br>met and carried out.<br>Executory &#8211; Answer A contract that is signed, but not yet carried out<br>Void or Invalid Contract &#8211; Answer No contract at all, not enforceable by law<br>Voidable Contract &#8211; Answer An agreement that may be terminated by one of the parties<\/li>\n\n\n\n<li><\/li>\n<\/ol>\n\n\n\n<p>Champions School of Real Estate Terms<br>| Updated 2023-2024<br>Appurtenance &#8211; Answer rights, privilege or improvements that belong to and<br>pass with the land<br>Personal Property Synonyms &#8211; Answer -Chattel<br>-Personality<br>Annexation &#8211; Answer -Fixtures are attached to property via <strong><em>_<\/em><\/strong><br>Emblements &#8211; Answer -crops cultivated annually<br>-personal property<br>-can remove crops one year after and then forfeit the right to the crops if not<br>removed<br>Characteristics of Real Property &#8211; Answer PHYSICAL<br>-Nonhomogeneity (unique)<br>-Immobility (you cannot move it)<br>-Indestructibility (durability-cannot be destroyed)<br>ECONOMIC CHARACTERISTICS<br>-Scarcity (short supply where demand is great)<br>-Modification (use and value influenced by improvements)<br>-Fixity (things fixed to the land\/improvements)<br>-Situs (location preference)<br>Legal Property Descriptions &#8211; Answer -Metes and Bounds<br>-Plat\/Lot and Block<br>-The Rectangular Survey System<br>Metes and Bounds &#8211; Answer A method of land description which involves<br>identifying distances and directions and makes use of both the physical<br>boundaries and measurements of the land.<\/p>\n\n\n\n<p>-include termination points (markers and monuments), degrees, minutes, etc.<br>-OLDEST method of land description<br>Lot and Block &#8211; Answer A method of land description frequently used after<br>land has been subdivided into building lots; also referred to as the recorded plat<br>method. (Must have a plat map to find the property)<br>-MOST COMMON method for residential listings<br>Rectangular Survey System &#8211; Answer -Also called the Public Land Survey or<br>Government Survey System<br>-Was used by the US Land Office Survey to parcel land west of the Appalachian<br>Mountains<br>-Divides land into a series of rectangular parcels.<br>-includes base lines, meridians, townships (36 sections) and sections (1 sq. mi. or<br>640 acres (1 acre=43,560 sq. ft.)<br>Private Land Controls &#8211; Answer -MOST COMMON: CC&amp;Rs<br>-CC&amp;Rs: deed covenants, conditions and restrictions or Deed Restrictions or Deed<br>Covenants (HOA\/POA)<br>-Deed Restrictions: to control land use, development and methods and materials<br>for construction<br>Public Land Controls &#8211; Answer -Governmental rights in land (PETE)<br>-Police Power (ex. Zoning=most common)<br>-Eminent Domain<br>-Taxation<br>-Escheat (property reverts to state when someone dies intestate and no heirs)<br>Easement Appurtenant &#8211; Answer -has one dominant estate and one servient<br>estate<br>-Dominant Estate: Landlocked; uses road access from servient estate<br>-Servient Estate: serves the dominant estate by providing the road for access<br>-goes with the land<br>Easement in Gross &#8211; Answer -belongs to a person or corporation<br>-ex.: utility easement<\/p>\n\n\n\n<p>Adverse Possession &#8211; Answer -squatters rights due to statute of limitations (<br>-occupancy must be hostile, visible or open, actual or notorious, continuous and<br>distinct for the statutory period)<br>Lis Pendens (Litigation Pending) &#8211; Answer A notice filed in the public record of<br>a pending legal action affecting the title to or possession of property.<br>Types of Ownership &#8211; Answer -Estate in Severalty, Sole Ownership or Tenancy<br>in Severalty: ownership by one<br>-Tenancy in Common: ownership by 2+ without rights of survivorship (most<br>common type of joint ownership)<br>-Joint Tenancy: ownership by 2+ with rights of survivorship (poor man&#8217;s will)<br>-Tenancy by the Entirety: type of joint tenancy (co-owners are married to each<br>other-avoids probate)<br>-In Trust: held by one party for the benefit of another<br>-Syndicate: 2+ parties join together to create and operate a real estate investment<br>-Special Types of Ownership:<br>-Time Shares: part ownership coupled with right to exclusive use for a specified<br>number of days without the responsibility of full ownership AKA:&#8221;interval<br>ownership&#8221; and is a branch of tenancy in common.<br>-Cooperative or &#8220;Co-ops&#8221;: investment for residents. Land and buildings are owned<br>by a corporation and residents must buy shares in the corporation in exchange for<br>a proprietary lease on the unit. corporation pays mortgage, taxes and<br>maintenance<br>-Condominium: each unit is separate legal ownership. tenancy in common<br>interest in all common areas. property taxes are assessed on each unit separately ,<br>monthly condo fees.<br>Tenancy In Common &#8211; Answer -ownership by 2+ people<br>-most common<br>-willable<br>-estate of inheritance<br>-unequal interest allowed<br>-title passes at probate<br>Joint Tenancy &#8211; Answer -ownership by 2+ people<br>-poor man&#8217;s will<\/p>\n\n\n\n<p>-right of survivorship<br>-last man standing<br>-unity of time, title, posession, interest<br>-avoids probate-title passes at death<br>Types of Estates &#8211; Answer -Freehold Estate (ownership)<br>-Leasehold Estate (leasing)<br>Freehold Estates &#8211; Answer *OWNERSHIP<br>-Fee simple\/Fee simple absolute<br>-Fee simple defeasible (determinable or condition subsequent)<br>-Life Estate (with reversion or pur autre vie)<br>Freehold Estate Bundle of Rights &#8211; Answer -Right to Disposition (sell, will to<br>heirs, encumber or lease)<br>-Right to Exclusion (exclude others)<br>-Right to Possession (right to use, enjoy, occupy)<br>-Right to Quiet Enjoyment (use uninterrupted by former owners)<br>Leasehold Estates &#8211; Answer -gives possession without ownership<br>-Four types:<br>-Estate for Years<br>-Periodic Tenancy<br>-Estate at Will or Tenancy at Will<br>-Tenancy at Sufferance<br>Leasehold Estate Clauses and Provisions &#8211; Answer -Right to Quiet Enjoyment<br>-Right of First Refusal (has the right to match or better any offer before the<br>property will be sold to someone else)<br>-Subletting<br>-Assignment (transfer all rights and liabilities to new tenant under existing lease<br>-Forcible Entry and Detainer (Eviction)<br>-Expiration: end of lease agreement<br>-Termination: end of lease (cut short or expiration)<br>-Mutual Rescission: When a lease is terminated by agreement of both parties<br>-Constructive Eviction: when tenant ends lease because of landlord&#8217;s lack of<br>upkeep and building is uninhabitable<\/p>\n\n\n\n<p>Champions Principles of Real Estate 2 | 91 Actual<br>Questions and Answers 100% correct | Latest<br>Update 2023-2024<br>appraisal &#8211; Answer value of a property maybe affected by social, economic,<br>govt and environmental influences<br>Loan-to-Value Ratio (LTV) &#8211; Answer The percentage of value or sales price that<br>a lender is willing to finance.<br>limited appraisal report &#8211; Answer exterior only\/drive by inspection. deemed<br>as low risk loan<br>highest and best use of property &#8211; Answer legal use that gives the greatest<br>return<br>Principal of Contribution &#8211; Answer cost does not equal value<br>Residential Mortgage Loan Originators (RMLO) &#8211; Answer Must be certified<br>licence holders and is mandated by the SAFE ACT (TX dept of savings and<br>mortgage lending)<br>Principle of Anticipation &#8211; Answer purchase price is affected by the<br>expectation of future appeal and benefits<br>Principal of Substitution &#8211; Answer value of a commodity is influenced by the<br>cost of acquiring subsitute or comparable item<br>Principal of progression &#8211; Answer value of properties around yours goes up;<br>so does yours<br>Principal of Regression &#8211; Answer The Value of more expensive home placed in<br>a neighborhood of less expensive homes will drop in value<\/p>\n\n\n\n<p>Market Value &#8211; Answer the most probable price a property should bring in a<br>competitive and open market under fair conditions requisit to a fair sale.<br>appraisal process &#8211; Answer The value of a property may be affected by social,<br>economic, governmental and environmental influences. An appraiser must always<br>be aware of these influences and possible changes in them that could affect<br>market value.<br>Three approaches to value &#8211; Answer (1) The Sales Comparison Approach<br>(2) The Cost Approach,<br>(3) The Income Approach.<br>Sales Comparison Approach &#8211; Answer A value for existing properties method<br>for comparing similar properties to the subject property. this is the best indicator.<br>Market Data Approach &#8211; Answer aka: sales comparison approach<br>Physical Deterioration &#8211; Answer Loss of value of a building from its<br>reproduction cost, resulting from wear and tear over time.<br>Functional Obsolescence &#8211; Answer loss of desirability of the style, layout or<br>function of an element of property over time<br>External Obsolescence &#8211; Answer Losses of property value caused by forces or<br>conditions beyond the borders of the property. ie. zoning, highways<br>promissary note &#8211; Answer evidence of a lean. simply a note<br>Foreclosure &#8211; Answer secured property may be sold ti satisfy the unpaid<br>promissory note.<br>Primary Mortgage Market &#8211; Answer the loan origination market where<br>borrowers and lenders negotiate mortgage terms<br>funding &#8211; Answer transferring funds to a title co for disbursement when loan<br>is approved.<\/p>\n\n\n\n<p>Principles of Real Estate 1- Champions Quiz | 79<br>Actual Questions and Answers 100% correct |<br>Latest Update 2023-2024<br>Contracts with a person who lacks mental capacity can be &#8211; Answer either<br>void or voidable<br>Community property is a concept of &#8211; Answer Spanish law, and marriage is<br>regarded as a partnership.<br>Intermediary Without Appointments. &#8211; Answer an agent will have the<br>opportunity to sell their own listing.<br>Oil and gas companies employ &#8211; Answer a large number of individuals with a<br>real estate background.<br>The NFIP &#8211; Answer offers flood insurance<br>The NFIP offers flood insurance to &#8211; Answer homeowners, renters, and<br>business owners<br>The vast majority of homes built in the United States are &#8211; Answer site built.<br>When a condominium is sold, three interests are created: &#8211; Answer fee simple<br>ownership of the unit, fee simple ownership in an undivided interest in the<br>common areas, and an easement to the airspace occupied by the unit.<br>The Bureau [CFPB] is responsible for enforcing &#8211; Answer federal consumer<br>financial law<br>To convert 152,460 square feet of land: &#8211; Answer 152,460 \/ 43,560 = 3.5<br>Exclusive agency agreements &#8211; Answer list their properties with a broker,<br>primarily to expose their properties through the multiple listing service<\/p>\n\n\n\n<p>Easements may be created by &#8211; Answer grant, reservation, implied grant,<br>prescription, necessity, condemnation.<br>The Texas Real Estate Commission consists of &#8211; Answer of nine members and<br>three members who represent the public.<br>cooperative sale with single buyer representation &#8211; Answer If the buyer<br>purchases a property listed by another firm<br>If the buyer purchases a property listed by another firm, &#8211; Answer The listing<br>firm represents the seller, and the selling firm represents the buyer<br>Community property &#8211; Answer marriage is regarded as a partnership.<br>Mutual Consent &#8211; Answer Offer and Acceptance<br>An estate in severalty &#8211; Answer involves ownership of real estate by one<br>individual or entity.<br>Real estate brokers recommend this listing &#8211; Answer grants an exclusive right<br>to sell the property during the listing term.<br>exclusive right to sell &#8211; Answer A commission is paid even if the property is<br>sold by the owner<br>TREC has promulgated sales contract forms for most residential properties<br>including &#8211; Answer One-to-Four Family Residential Contract (Resale), New<br>Home Contract (Incomplete Construction), New Home Contract (Completed<br>Construction), Unimproved Property Contract, Residential Condominium Contract<br>(Resale), Farm and Ranch Contract.<br>Liens can be &#8211; Answer specific or general<br>Violation of the law is &#8211; Answer a civil offense<\/p>\n\n\n\n<p>Champions Exam Prep: State | 68 Questions and<br>Answers 100% correct | Latest Update 2023-2024<br>TREC has received an application for a Texas Real Estate Sales License from Mary.<br>Mary has completed all her educational requirements, and passed the state exam. At this point TREC will<br>begin the background check.<br>What is FALSE?<br>(a) TREC has no time limit for determining integrity<br>(b) TREC has 30 days to complete the background check<br>(c) TREC has 30 days to notify Mary of a decision to disapprove her application<br>(d) Mary has 10 days to appeal a denial of her application &#8211; Answer False: TREC has 30 days to<br>complete the background check.<br>DEF: TREC has no limit on days to review your application or complete your background check.<br>They have 30 days to notify you of their decision and you have 10 days to appeal that decision.<br>Marcos was a TX licensed Real Estate Sales agent for some time. He then chose to become inactive and<br>TREC has been holding his license in inactive status. He now wishes to activate the license.<br>What will he have to do? &#8211; Answer Apply through a broker, pay <em>$50<\/em> and take a <em>18-hour<\/em><br>continuing education course<br>A license holder has defaulted on his student loans.<\/p>\n\n\n\n<p>As a result of this TREC will? &#8211; Answer <em>Refuse to renew the license<\/em>, unless and until, the loan<br>payments are brought up to date.<br>Does the IABS disclose agency or personal interest? &#8211; Answer Agency Interest<br>When a license holder markets his own property he should? &#8211; Answer Inform the buyer that he is a<br>license holder, and the owner of the property.<br>DEF: Per TRELA you must always disclose self, spouse, parent or child is involved in a real estate<br>transaction.<br>The IABS discloses agency not personal interest. There is no TREC promulgated form solely intended for<br>this disclosure although paragraph 4 of the TREC contracts are now used for this. Not mentioning your<br>personal interest in a transaction is illegal.<br>A Texas broker may pay a commission to?<br>(a) A foreign broker who doesn&#8217;t negotiate in Texas<br>(b) A licensed attorney in Texas<br>(c) An in-house employee of a principal<br>(d) Any unlicensed person for a referral &#8211; Answer A foreign broker who doesn&#8217;t negotiate in Texas.<br>DEF: Any licensed broker outside of Texas is considered a foreign broker and may be paid a referral fee<br>out of your commission.<br>Attorneys must also have a real estate license. In-house employees must have a license.<\/p>\n\n\n\n<p>Only licensed brokers in Texas can receive a real estate commission in Texas.<br>Which of the following actions is NOT a violation of the TRELA?<br>(a) A broker offers a guaranteed buy back of a property for a set price, if the purchaser is not happy with<br>the investment after a two-year period of ownership<br>(b) A broker guarantees a buyer that an investment property will appreciate over the next two years<br>(c) Selling real estate by lottery<br>(d) Placing a sign to sell or lease real property with only the verbal consent of the owner &#8211; Answer<br>Putting your money where your mouth is and signing a contract to purchase with a two year close date<br>to buy it back yourself is legal.<br>You can&#8217;t guarantee a future profit verbally as this is illegal.<br>Selling real estate by lottery and putting a sign in the yard on verbal consent is also illegal.<br>A sales agent wished to transfer to a new broker. When may he engage in the business?<br>(c) When his fees and sponsorship forms have been mailed to TREC &#8211; Answer When fees and<br>sponsorship forms have been mailed to TREC.<br>Which of the following is the responsibility of the broker?<br>(a) The listing advertisements of the sales agents he sponsors<br>(b) The CE of the license holders he sponsors<\/p>\n\n\n\n<p>Principles of Real Estate 1- Champions School of<br>Real Estate | 102 Questions and Answers 100%<br>correct | Latest Update 2023-2024<br>A freeway has made commuting to a distant suburban neighborhood easier, resulting in an increase in<br>new home sales. This increase in sales is an example of the economic characteristic of<br>(a) scarcity<br>(b) Fixity<br>(c) Situs<br>(d) Modification &#8211; Answer D<br>The supply of Real Estate is affected by<br>(a) Land cost<br>(b) Building codes<br>(c) Government regulations<br>(d) All of these &#8211; Answer D<br>The least important factor affecting demand for real estate is:<br>(a) Population Growth<br>(b) Personal Preference<br>(c) Availability of Credit<br>(d) Transportation Systems &#8211; Answer B<br>A lawsuit was tried on a real estate matter. The judge ruled in the case, citing the decision of a judge in a<br>similar case that was tried ten years ago. The judges decision in the case was most likely based upon:<\/p>\n\n\n\n<p>(a) Statutory Law<br>(b) Civil Law<br>(c) Common Law<br>(d) Local ordinance &#8211; Answer C<br>A license holder was tried in a state district court on a complaint arising from a real estate transaction.<br>The court ruled that, among other transgressions, the defendant had violated the Texas Real Estate<br>License Act. This decision of the judge was based upon:<br>(a) Statutory law<br>(b) Civil Law<br>(c) Common Law<br>(d) Local Ordinance &#8211; Answer A<br>RMLOs in Texas are licensed through:<br>(a) Texas Real Estate Commission<br>(b) National Mortgage Bankers Association<br>(c) Texas Department of Savings and Mortgage Lending<br>(d) Texas savings and loan board &#8211; Answer C<br>A Freeway has made commuting to a distant suburban neighborhood easier, resulting in an increase in<br>new home sales. This increase in sales is an example of the economic characteristics of:<br>(a) Scarcity<br>(b) Fixity<br>(c) Situs<br>(d) Modification &#8211; Answer D<br>Air Rights are commonly leased or conveyed in:<\/p>\n\n\n\n<p>(a) Cell tower leases<br>(b) Condominiums<br>(c) Outdoor Advertising<br>(d) All of these are correct &#8211; Answer D<br>Building, roads and fences are all examples of:<br>(a) Personal Property<br>(b) Private Property<br>(c) Improvements<br>(d) Public Property &#8211; Answer C<br>If a tenant fails to remove trade fixtures from the leased premises, the fixtures become the property of<br>the landlord through:<br>(a) Remediation<br>(b) Adverse Possession<br>(c) Accession<br>(d) Descent &#8211; Answer C<br>Effective in 1976, manufactured homes have been built according to a building code administered by:<br>(a) Local building departments<br>(b) State code enforcement<br>(c) HUD<br>(d) FHA &#8211; Answer C<\/p>\n\n\n\n<p>Champions Commercial Real Estate | 328 Questions<br>and Answers 100% correct | Latest Update 2023-2024<br>Buffer Zone &#8211; Answer an area of land separating one land use from another<br>Variance &#8211; Answer permission to violate the rules<br>Police Power &#8211; Answer the right of the government to regulate and control the way land is used<br>Downsizing &#8211; Answer Changing the zoning of a property to lower the value use<br>Zoning &#8211; Answer the most common example of police power<br>Texas Property Code &#8211; Answer arranges Texas Statute Law into a logical order, making it more<br>accessible and understandable<br>Security Deposit &#8211; Answer is any advance of money, other than a rental application deposit of an<br>advance payment of rent that is intended primarily to secure performance under a lease of commercial<br>property<br>Variances &#8211; Answer are often requested prior to the construction to avoid violation of the rules<br>Title 8 Landlord &amp; Tenant &#8211; Answer The most important chapter of the Texas Property Code for<br>property managers and landlords<br>Noncormfing use of land &#8211; Answer a change in zoning can cause?<br>Manufactured Homes &#8211; Answer are built in a factory and are built to a nation-wide building code<\/p>\n\n\n\n<p>Trust Account &#8211; Answer account managed by one party for the benefit of another in a banking<br>institution authorized to do business in Texas<br>Safe Harbor Policy &#8211; Answer determines whether or not an advertisement is clear and conspicuous<br>Advertisement &#8211; Answer a written or oral statement or communication by or on behalf of a license<br>holder or service provider<br>Trust Money &#8211; Answer clients&#8217; money<br>Trust Account &#8211; Answer an account managed by one party for the benefit of another in a banking<br>instistution authorized to do business in Texas<br>Sales Agent &#8211; Answer Should not maintain a trust account<br>Open Carry and Concealed Carry Signage &#8211; Answer must appear in contrasting colors with block<br>letters at least one inch in height<br>30.06 &#8211; Answer establishments that will permit open carry on their premises, but prohibit concealed<br>carry<br>30.07 &#8211; Answer Prohibits open carry on he premises<br>Deceptive Trade Practices Act (DTPA) &#8211; Answer allows an aggrieved consumer to sue a seller of goods<br>for damages<br>Goods &#8211; Answer Tangible chattels<br>Services &#8211; Answer means work, labor or repair of goods. Brokerage is an example<\/p>\n\n\n\n<p>Consumer &#8211; Answer an individual, corporation, partnership, or government source who seeks to<br>acquire<br>Producing Cause &#8211; Answer requires proof that the act or omission was a significance factor in<br>bringing about the injury<br>Force Majeure &#8211; Answer Circumstances beyond the tenant of landlord&#8217;s control that could affect<br>performance of the contract<br>Term &#8211; Answer beginning and ending date<br>Demised premises &#8211; Answer spaces transferred from the landlord to the tenant by the lease<br>CAM &#8211; Answer includes hallway, lawn and elevator maintenance<br>Indemnify &#8211; Answer Defend<br>Gross Lease &#8211; Answer a lease of property where the landlord pays charges regularly incurred in<br>ownership, such as taxes<br>Net Lease &#8211; Answer in addition to rent, the tenant pays expenses such as taxes<br>Single Net Lease (N) &#8211; Answer tenant pays rent and property taxes<br>Double Net Lease (NN) &#8211; Answer tenant pays rent, property taxes, and property insurance<br>Triple Net Lease (NNN) &#8211; Answer tenant pays rent, property taxes, property insurance, and<br>maintenance. (landlord is still responsible for structural repairs)<br>Feasibility Period &#8211; Answer Also known as due diligence period<\/p>\n\n\n\n<p>UCC Search &#8211; Answer filed with the county clerk by an equipment leasing company notifying the<br>public that there is a prior lease\/lein on the equipment and that it cannot be seized by a landlord<br>Percentage Lease &#8211; Answer a lease in which all or part of the rental is based on the gross receipts of<br>the tenant&#8217;s business. in the retail environment, a percentage lease obligates the tenant to pay a base<br>rent and a percentage of gross sales.<br>LEED &#8211; Answer a building certification program for properties that are &#8220;green&#8221;<br>Preventative Maintenance &#8211; Answer servicing a property and its equipment in order to prevent<br>mechanical failure and keep property values high<br>BOMA &#8211; Answer An organization that advocates on the part of the building owners and managers<br>Deferred Maintenance &#8211; Answer deterioration of a property due to delayed maintenance<br>Mitigation &#8211; Answer methods used to lower levels of radon in buildings<br>EMF&#8217;s (electromagnetic fields) &#8211; Answer Energy Fields given off by power lines<br>Asbestos &#8211; Answer material previously used to insulate pipes in chimneys and roofs<br>Radon &#8211; Answer odorless, colorless, gas that is naturally produced by the decay of radioactive<br>materials in rocks underground<br>ESA (Environmental Site Assessments) &#8211; Answer assessment carried out by a qualified environmental<br>professional to determine whether or not a property has been contaminated by any previous or current<br>activities<\/p>\n\n\n\n<p>Law of Contracts &#8211; CHAMPIONS TEST<br>Actual Questions and Answers 100% correct<br>| Latest Update 2023-2024<br>Wrongful or criminal deception intended to result in financial or personal gain is called: &#8211; Answer<br>fraud<br>The Buyer and Seller Temporary Residential Lease forms may be used for a lease period not to exceed: &#8211;<br>Answer 90 days<br><strong><em><strong><em>_<\/em><\/strong> extend above the surface without limitation. &#8211; Answer air rights<br>An example(s) of an appurtenance would be: &#8211; Answer easements<br>There is no upper limit on the value of a Texas homestead. &#8211; Answer true<br>A(n) <strong><em>_<\/em><\/strong><\/em><\/strong> is one that combines some of the elements of a sale with a lease. &#8211; Answer lease<br>purchase agreement<br>Which of the following requires a contract for the conveyance of real estate to be in writing to be<br>enforceable? &#8211; Answer statute of frauds<br>If a broker receives more than one offer on a property: &#8211; Answer All must be presented to the seller<br>unless the seller has instructed the broker otherwise<br>The most common form of financing used by buyers is: &#8211; Answer third party financing<br>A(n) <strong><em>__<\/em><\/strong> is a provision in a contract that requires that a certain act or event happens in order for<br>the contract to be binding on the party. &#8211; Answer contingency<\/p>\n\n\n\n<p>The Lead-Based Paint Disclosure is: &#8211; Answer A federal requirement for residential property built<br>prior to 1978<br>In Texas, real estate contracts are subject to satisfactory inspections. &#8211; Answer false<br>The term <strong><em><strong><em>_<\/em><\/strong> is synonymous with contingent. &#8211; Answer subject to<br>Real estate agents play a role that includes arranging for the pre-qualification \/ pre-approval of buyers. &#8211;<br>Answer true<br>Rule P-53 of the Texas Department of Insurance states that Title Companies: &#8211; Answer Cannot<br>provide food and beverages for a picnic for a single firm, Cannot provide an annual party for a single<br>firm, Cannot provide continuing education classes unless they charge the market rate for those classes<br>Bill is the buyer purchasing a property from Sally. All contingencies have been met and the parties are<br>ready to close. One day prior to closing, Sally announces that she has changed her mind and is going to<br>keep the property. Bill is determined to complete the purchase and acquire the property. The only<br>default remedy in the contract that could result in Bill acquiring the property<br>is________________________<\/em><\/strong>. &#8211; Answer specific performance<br>Elmer Fleckenfleck, an agent with After Hours Realty, was preparing a contract. The seller told Elmer that<br>he wanted to stay in the property for at least a week after closing. Elmer said that would be no problem<br>and entered the following text to Paragraph 11: &#8220;Seller and Buyer agree that Seller will remain in the<br>Property for 7 days after closing and funding.&#8221; In this case, Elmer has: &#8211; Answer Engaged in the<br>unlawful practice of law<br>The four economic characteristics of land are: scarcity, fixity, situs and <strong><em>__<\/em><\/strong>. &#8211; Answer<br>modification<br>Joe is an agent at Tried and True Realty. He gets a $150,000 offer on a property that is listed for<br>$199,500. In a recent phone conversation, the seller told Joe he would accept no less than $185,000 for<br>the property. Knowing the seller&#8217;s &#8220;bottom line,&#8221; what should Joe do with the offer? &#8211; Answer Joe<br>should present the offer to the seller<\/p>\n\n\n\n<p>Champions Law of Contracts September 2023 Test<br>Review Actual Questions and Answers 100% correct<br>Temporary leases &#8211; Answer have a maximum limit of 90 days<br>Brokerage (under DTPA) &#8211; Answer Is a service<br>Seller&#8217;s Disclosure &#8211; Answer Must be delivered or Buyer can terminate<br>Common Law &#8211; Answer Based on common sense<br>Air Rights &#8211; Answer Extend above the surface without limitation<br>Physical Characteristics of Land &#8211; Answer immobility<br>indestructibility<br>nonhomogeneity<br>Economic Characteristics of Land &#8211; Answer scarcity, modification, fixity, situs<br>Sole Proprietorship &#8211; Answer A business owned by one person<br>Co-op &#8211; Answer Owner does not own their specific unit<br>A Contract &#8211; Answer is an agreement by 2 or more people to do or refrain from doing something<br>Option &#8211; Answer example of unilateral contract<br>Unilateral Contract &#8211; Answer Only one party is obligated to perform<\/p>\n\n\n\n<p>Essential Elements of a Contract &#8211; Answer COLIC (Competent parties), Offer and acceptance, Legal<br>Purpose, In Writing, Consideration<br>Marital Status &#8211; Answer Not required in contract<br>Fully executed contract &#8211; Answer When sale closes<br>Novation &#8211; Answer a new contract is substituted for an existing one<br>Police Power &#8211; Answer Right of the government to regulate and control the way land is used<br>Variance &#8211; Answer If property violates zoning, owner must request<br>Encumbrance &#8211; Answer a claim, charge, or liability that attaches to real estate<br>Notice of Coastal Area Properties &#8211; Answer Required disclosure for sale of coastal properties<br>Termination of Contract &#8211; Answer Damage or destruction of property may result in<br>Net Listing &#8211; Answer Commission is difference between net set by seller, and price buyer is willing to<br>pay<br>Four types of leasehold estates &#8211; Answer Estate for years, periodic tenancy, tenancy at will, tenancy<br>at sufferance<br>Lease Requirements &#8211; Answer Competent Parties, let and take, in writing, description of property,<br>Consideration<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Champions Real Estate Marketing SAE | 122Questions and Answers 100% CorrectMost common reason a property fails to sell is &#8211; Answer priceMatching human needs with goods or services to meet those needs is the processof &#8211; Answer marketing_________ is a key personality trait of a successful agent &#8211;Answer problem solving3 Ways Sales Agents Add Value [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[25],"tags":[],"class_list":["post-118223","post","type-post","status-publish","format-standard","hentry","category-exams-certification"],"_links":{"self":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/118223","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/comments?post=118223"}],"version-history":[{"count":0,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/118223\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/media?parent=118223"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/categories?post=118223"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/tags?post=118223"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}