TEXAS PRINCIPLES 1 EXAM 2024<\/p>\n\n\n\n
What’s the purpose of PMI? – ANSWER- Covers the gap between the
actual loan amount and 80% of the LTV
Private mortgage insurance (PMI) is used on conventional loans that
are taken out for more than 80% of the LTV. It covers the gap
between the actual loan amount and 80% of the LTV.
A real estate licensee is acting as what type of agent when assigned by
the broker to represent one party in an in-house transaction? –
ANSWER- Designated
What’s the purpose of the ECOA? – ANSWER- To prevent
discrimination in lending
Acme Realty offers discounted services. Berringer Realty and
Hawthorne Real Estate Group decide to not show any of Acme’s listings
and to prohibit showings from Acme buyers to drive Acme out of
business. What is this an example of? – ANSWER- Group boycotting
How do licensees create implied agency? – ANSWER- Through the
parties’ actions<\/p>\n\n\n\n
Tina has fee simple ownership of her timeshare unit. Which of these is
NOT an example of the type of ownership she may have?
A) Interval ownership
b) Right-to-use
c) Tenancy in common
d) Timeshare estate – ANSWER- b
Why is right-to-use not an example of a fee simple ownership of a
timeshare unit? – ANSWER- Fee simple ownership of a timeshare (aka
timeshare estate) unit means that the owner may share tenancy in
common with other timeshare owners or may have an interval
ownership. A right-to-use timeshare is a lease agreement, not an
ownership interest.
Which of the following is NOT a good method for real estate companies
to avoid penalties for making accidental calls to numbers on the DNC
list?
a) Calling consumers on the DNC list for four weeks after they are
added to the registry
b) Documenting the process used in making calls
c) Training staff on procedures
d) Updating records as required – ANSWER- a<\/p>\n\n\n\n
In Texas, when is a licensee required to provide an agency disclosure to
the party they are not representing in a transaction?
a. When delivering an offer for a specific property
b. When determining a listing price for a specific property
c. When engaging in substantive dialogue about a specific property
d. When entering into an agency agreement – ANSWER- c.
You must disclose whatever agency, or broker, relationship you have at
the time of the first substantive dialogue with the party you are not
representing in the transaction. Substantive dialogue includes
conversations held in face-to-face meetings, or via email, phone, and\/or
text.
Which legal description method uses compass headings and directions?
a. Block and grid
b. Lot and block
c. Metes and bounds
d. Rectangular government survey – ANSWER- c
What divides land into townships and further divides those into sections.<\/p>\n\n\n\n
Which one of the following types of ownership termination allows each
tenant to have a specific, divided portion (partition) of the property
exclusively?
a. Termination by division
b. Termination of co-ownership by partition
c. Termination of estate in severalty
d. Termination of joint tenancies – ANSWER- b
Termination of tenancy in common by partition allows each tenant
to have a specific, divided portion of the property exclusively. If the
property can’t be divided, the court may rule that the property be
sold and the proceeds divided by the tenants.
Fee simple _ includes two categories, which can be distinguished in part by the way in which ownership may be regained by the original grantor of the estate. – ANSWER- defeasible “Separate property” is property most likely acquired _<\/strong><\/em><\/strong>. –
ANSWER- Prior to marriage
Tom and Linda are Texas residents who wish to make a fair housing
complaint to the TWCCRD about a licensee they encountered while
shopping for a vacation home in Montana. Can they do this? –
ANSWER- No. All complaints to the TWCCRD must be for Texas
property.<\/p>\n\n\n\n