Texas Principles of Real Estate 1 Final Exam|
Questions and Verified Answers| Grade A|
2023\/ 2024 Update
Q: An insurance policy protecting against a variety of hazards is referred to as a\u2026?
Homestead Policy
Individual Policy
Homeowners Policy
Package Policy
Answer:
Homeowners Policy
Q: Which of the following is an advantage to owning a home\u2026?
Tax benefits
Pride of ownership
Potential for asset appreciation
All of the above
Answer:
All of the Above
Q: An individual is exempt from paying taxes on capital gains for up to how much in profit if
he\/she lived in the house for at least 2 of the last 5 years\u2026?
$100,000
$250,000
$500,000
$1,000,000
Answer:
$250,000<\/p>\n\n\n\n
Q: An individual who has not owned real property for at least the previous two years is known
as a\u2026?
First-time homebuyer
Conventional homebuyer
Exempt homebuyer
Vacant homebuyer
Answer:
First-Time Homebuyer
Q: When a real estate broker represents a buyer in a transaction, the broker and buyer are bound
by which of the following contracts\u2026?
Buyer Representation Agreement
Listing Agreement
All of the above
Purchase Agreement
Answer:
Buyer Representation Agreement
Q: A contract in which a property owner employs a real estate broker to market the property
described in the contract is referred to as the\u2026.?
Exclusive Contract
Purchase Contract
Listing Contract
Agency Contract
Answer:
Listing Contract<\/p>\n\n\n\n
Q: The ‘L’ in the acronym C.O.A.L.D. stands for which fiduciary duty\u2026?
Loyalty
Litigation
Listing
License
Answer:
Loyalty
Q: The employer of an agent is referred to as the\u2026?
Principal
Partner
Customer
Fiduciary
Answer:
Principal
Q: An agency relationship created by oral or written agreement between the principal and the
agent is known as\u2026?
General Agency
Brokerage
Implied Agency
Express Agency
Answer:
Express Agency
Q: Which of the following acronyms summarizes the fiduciary duties a broker owes to his\/her
principal\u2026?
C.O.A.L.D.
O.L.D.C.A<\/p>\n\n\n\n
W.B.V.A.
C.A.T.T.L.
Answer:
C.O.A.L.D.
Q: The Deceptive Trade Practices Act discourages agent from which of the following acts\u2026?
Puffing
Exclusive agency
Indemnification
All of the above
Answer:
Puffing
Q: Real estate brokers have a \u2026\u2026\u2026\u2026\u2026\u2026. relationship with the principal?
Universal
Fiduciary
Special
General
Answer:
Fiduciary
Q: As a seller’s agent in a transaction, the agent is required to do which of the following\u2026?
Answer to the seller
Present all offers to the seller
Inform the seller of any material information
All of the above
Answer:
All of the Above<\/p>\n\n\n\n
Texas Principles of Real Estate 1 (2023\/ 2024)
Exam| Questions and Verified Answers|
Grade A
Q: Under subchapter E of TRELA the commission has a responsibility to make information
available about the commission and its duties in the interest in:
Answer:
The general public
Q: In a real estate transactions who may a licensee represent?
Answer:
A client
Q: What type of real estate market occurs when both supply and demand are low?
Answer:
Stagnant Market
Q: Assume you are a licensee in Texas who has recently entered into an agreement with a seller
to represent their interest in a real estate transaction at what point are you required to make your
agency disclosure to a potential buyer
Answer:
At the time of your substantive dialog
Q: Of the nine total members of TREC, how many are members of the public?<\/p>\n\n\n\n
Answer:
Three
Q: Cultivated crops are called?
Answer:
Emblements and are considered personal property.
Q: Severance occurs when an item that was real property becomes personal property by?
Answer:
Detaching it from land
Q: Ad valorem taxes are calculated based on?
Answer:
The appraised value of the property being taxed.
Q: To calculate property taxes, multiply tax rate by what?
Answer:
Assessed value
Q: Annexation occurs when:
Answer:
Personal property is attached to real property, making it a fixture<\/p>\n\n\n\n
Q: A lien may be voluntary or:
Answer:
involuntary
Q: Property tax liens take priority over other liens; if homeowners dont pay their property taxes
what can happen?
Answer:
They can lose their property
Q: A grant of land from an owner to a school “on the condition that” the property be used for
educational purposes is:
Answer:
Fee simple subject to a condition subsequent.
Q: Pur autre vie life estates are what type of life estates:
Answer:
For the life of another
Q: A homestead may suffered forced sale for payment of mortgages where the loan proceeds
were used to do which of the following:
Answer:
Purchase the residence, refinance the residence, improve the residence<\/p>\n\n\n\n
Q: An encroachment of long standing may result in an easement by:
Answer:
Prescription
Q: What is the same as sole ownership?
Answer:
Ownership in severalty
Q: Under community property laws, property owned before marriage is considered:
Answer:
Separate property
Q: A limited partnership includes:
Answer:
both general and limited partners
Q: In a cooperative, any taxes, maintenance expenses, and mortgage liens are placed against the
Answer:
Cooperative
Q: Which shows only the location and dimensions of a parcel of land
Answer:<\/p>\n\n\n\n
Texas Principles of Real Estate 1 (2023\/ 2024)
Exam | Guide with Questions and Verified
Answers| 100% Correct
Q: curtsey rights
Answer:
right a husband has to his wifes estate upon her death
Q: fee simple defeasable
Answer:
a gift of land by a person or GRANTOR
Q: Life Estate
Answer:
an estate in land for the duration of someones life (always a gift of land\/ real estate)
Q: Homestead
Answer:
Texas is a Homestead State. The property that you own and live in. It is a constitutional right that
cannot be waived.
Q: Urban homestead<\/p>\n\n\n\n
Answer:
homestead limited to 10 acres
Q: rural homestead
Answer:
limited to 200 acres for a married couple 100 for a single person
Q: easement
Answer:
right of one person to use the property that belongs to another
Q: types of easements
Answer:
gross
necessity
perscription
appurtenant
Q: easement by necessity
Answer:
easement given when one property is landlocked and needs to be given access to from someone
elses land
Q: Easement in gross
Answer:<\/p>\n\n\n\n
is a utility easement
Q: easement by prescription
Answer:
easement granted after dominant estate has used the property in a constant continuous and open
manner for a prescribed number of years
Q: Easement appurtenant
Answer:
used between two lots to allow the owner of one lot to cross the others property
Q: deed restrictions\/covenents
Answer:
put into place by developer and are a private control of property
Q: Encroachments
Answer:
something that extends across a property line onto the property of another
Q: Liens
Answer:
legal claim on someones property as a security for a debt<\/p>\n\n\n\n
Q: Types of liens
Answer:
mortgage, property tax lien, mechanics lien, judgement and can be voluntary or involuntary and
are either specific or general
Q: License
Answer:
personal priviledge given to someone to use land-not an estate or right to land
Q: Estate of Severalty
Answer:
sole ownership of property-not part of community property
Q: Joint tenancy
Answer:
ownership in property where owners own equal shares and has right of suvivorship-cannot be
passed on to others upon their death, cannot be sold or given away either-last surviving owner
takes property in severalty
Q: right of suvivorship
Answer:
in joint tenancy if one partner dies his share goes to the remaining partners
Q: conditions upon which a joint tenancy can be made<\/p>\n","protected":false},"excerpt":{"rendered":"
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