Principles of Real Estate Practice Exam 1 Flashcards

Principles of Real Estate Practice Exam 1 Flashcards Mrs. Baker holds a life estate in the home in which she lives. During her lifetime, whatis she not able to do?commit waste on the property When does ownership in severalty occur?property is owned by one person Under the terms of an exclusive agency listing, may the owner sell the property andnot owe a commission to the listing broker?True What are the fiduciary responsibilities of an agent to his principal?legal advice Tommy is Laura's son. As her son will he be part owner of the condo?All of the above are correct According to Subchapter K of TRELA, if Jan chose to work as a right-of-way agentshe could have None of the above The tests of a fixture include the method of annexation to the real estate, adaptationto a particular use of the premises, and the intention of the parties Where will the property owned by a person who dies without a will and without heirsescheat to state What is the amount of earnest money deposit paid by the purchaser called?determined by negotiation Under the terms of an exclusive agency listing, is a commission due to the listingbroker if a buyer is found by the owner?the owner, through her own efforts Easements, rights-of-way, and condominium parking stalls are examples of appurtenances George hired a general contractor to build an addition to his house. The generalcontractor failed to pay the electrical subcontractor for work that was subcontracted tohim. May the subcontractor secure a mechanic's lien on George's house Yes, because the work was done on George's property.What is a contract based upon a promise exchanged for a promise?bilateral contract

If Jan's broker's license is suspended or revoked, Jan:All of the above

The Texas Real Estate Commission consists of ______.The commission membersserve for _______ terms

• members --- 6 year

When an agent's authority arises from custom in the industry, what is it identified as?implied authority When is the seller's lead-based paint disclosure notice required?1978 From where does an attorney-in-fact derive his powers?a power of attorney Who is the management of the partnership performed by?the general partners

The house was built in 1975. Jim made sure the sellers disclosed That the house could contain lead-based paint

The Americans with Disabilities Act deals primarily with:commercial property

Which of the following does not need a license? a person who offers to sell her own property What are the four unities needed to create a joint tenancy?Each will receive a separate deed for his share.

TRELA states: An applicant must satisfy the examination

requirements not later thanone year after the date the license application is filed.True What is the purchaser's right to acquire legal title to real property under the terms of avalid agreement?equitable title The term "Realtor" applies to anymember of the National Association of REALTORS® What are examples of the government's exercise of its police powers?restrictive covenants What is a nonfactual or extravagant statement that a reasonable person wouldrecognize as exaggeration?puffing After Jan has been an active salesperson for 4 years, she becomes a broker andhas several sponsored salespersons. She must do CE. Subchapter I requires Her to have at least six classroom hours of broker responsibility education How can an exclusive listing contract be terminated?death of the listing salesperson Where is the amount of commission to be paid to the broker for selling a propertystated?stated in the listing contract Sally is selling her home and has listed it with a broker. She is required to give aSeller's Disclosure Notice form to the buyer. Who is the most likely person to fill out thisform?seller Will Laura have a deed to her condo and will she have to pay property tax on hercondo?Both A and B

A real estate salesperson may elect to remain inactive for:indefinitely

What is not classified as a freehold estate? a leasehold estate he day-to-day operation of a corporation is the responsibility of whom?management What does the phrase "time is of the essence" in a sales contract mean?the time limits set by the contract must by faithfully observed or the contract isvoidable When does the seller retain the title?seller retains title Which of the following would be considered to be a fixture because of the manner ofits attachment to the property?water heater Which of the following are not classified as real property?emblements Jane agreed to purchase real estate from Grant, and gave her earnest money depositat the time the agreement was made. What constituted the consideration in thiscontract?the promise for a promise All of the following are prohibited by the Fair Housing Act of 1968, as amended,EXCEPT discrimination on the basis of age Jim explained that the land description that uses distance and direction to definethe shape and boundaries of the property is Metes and Bounds

Area preference in the location of land is described assitus Jim asks the Semas to sign a buyer's representation agreement, and they did.They became Jim's clients, and Jim could give them Advice and opinions In Subchapter N, Jan learns if she offers to sell or lease real property without theknowledge and consent of the owner of the real property, the Commission may Suspend or revoke her license When a waterline permanently recedes, exposing dry land, it is known as reliction When Carol rents the house she owned before she married, the income will be Community property Jim explained that the home was on 2 acres. This means the land has 87,120 sq. ft The Texas Real Estate Recovery Fund is funded by real estate license fees If two or more persons are named as owners and there is no specific indication as to howthey are taking title, what are they presumed to be?tenants in common The Texas Real Estate Commission may suspend or revoke a license or take otherdisciplinary action authorized by Chapter 1101 if the license holder, while acting as

abroker or salesperson:

all of the above The owner of a single-family house in which he lives wants to sell. If he does not usediscriminatory language in advertising, has not sold any other house within the past twoyears, and does not employ an agent, may he discriminate on the basis of race inselecting a purchaser?No, because this would be prohibited by the Civil Rights Act of 1866.The practice of directing home seekers to particular neighborhoods based on race,color, religion, sex, or national origin is known as steering The shortage of land in a given area where there is great

demand for land is:

scarcity When a broker discharges a salesperson, he should:return the license to the Texas Real Estate Commission What is the placing of funds belonging to others in a broker's personal bank accountcalled?commingling Which of the following is NOT a physical characteristic of land?fungibility What is an easement acquired by constant use called?prescription How is income taxed in regard to a real estate investment trust?Income is taxed at the level of the trust, rather than as income to thebeneficiaries.A licensed real estate agent is offered a listing by an owner who stipulates that shewill not sell to any person of a

certain national origin. The agent should:

refuse the listing Laura will take ownership in severalty because she isSingle Tommy and Carol are married and will own their house asCommunity property

How many square miles are there in a section? 1 What kind of relationship is that of a real estate broker to the owner of property listedfor sale?special agent Mr. and Mrs. Sema thought 1115 South 61st Street was the legal description oftheir property, but Jim explained It was an informal reference When choosing a sponsoring broker consider all of the following except Car ownership