Texas Real Estate Exam 2024 Flashcards

Texas Real Estate Exam 2024 Flashcards After the offer and acceptance, when the terms of a contract are in the process of being completed, and prior to

closing, the contract is said to be:

executory What is the general purpose for cities to acquire building permits?to require a minimum level of construction standards To be enforceable real estate contracts must be in writing

according to the:

Statute of Frauds Once all terms of a contract have been fulfilled and the

transaction has closed the contract status is said to be fully:

executed Donnie's neighbor Paul has an easement to cross Donnie's property to get to his own. The easement is recorded and transfers with the land if either Donnie or Paul sell their property. When an easement is on a title it is an example of an encumbrance Marvin owns an easement to use the driveway of his

neighbor Bob. Marvin's property is considered the:

dominant estate Karen recently sold a home for 6% commission. If her commission was $20,700, how much did the property sell for?

$345,000

Leslie is showing her listing to some prospective buyer customers. Leslie grew up just down the road and knows this property was once used as a dumpsite many years ago. Does Leslie have to make the prospective buyers aware of this information since they are customers and not clients?Yes, the agent must disclose Paul owns an older residential property in an area now zoned for commercial use. Paul decides to renovate the home into a laundry mat. The change in the properties

functionality for Paul's financial gain is an example of what:

highest and best use Discount points are a way lenders are able to charge prepaid interest in order to lower the interest rate over the life of the loan. What is the cost of the discount points based on?the loan amount Agent Paula found a buyer for her listing, the seller accepted the buyer's offer, and both parties received copies of the contract documents. The seller decides one week prior to closing they no longer want to sell the home.What could happen?the seller owes Paula commission Buyer Sam purchased a run down residential home in a neighborhood with many nice well kept properties. Sam intends to renovate the home and resell it for a profit.

Considering the nicer homes in the neighborhood help raise his property value, what appraisal principle is Sam leveraging?progression A valid contract must contain valuable consideration which

means:

something clearly offered for something else in exchange

Sally wants to transfer the title of her property to her granddaughter. Which of the following are ways to

voluntarily transfer title to a property:

will, grant, deed Callie made an offer on a home and is under contract for $250,000. She obtained a loan of $225,000 and the home appraised at $255,000. What is the loan to value ratio?90% How many square feet does one acre contain? 43,560 Betzy is working with buyers under a written buyer's agency agreement. The buyers decide they want to purchase a home that Betzy has listed. If Betzy does not obtain permission in writing from all parties to represent

both parties she would create:

undisclosed dual agency What duty does an agent acting as a property manager owe a property owner?fiduciary duties Johnny's home is under contract and the prospective buyers had a home inspection. The inspection noted some roof issues which Johnny was not previously aware of. The buyers provided Johnny with a copy of the inspection and an inspection notice terminating the sales contract. What should Johnny do going forward?update the seller's disclosure to include the roof issues The city of Brownwood plans to build a new water treatment facility but the land that is required is privately

owned. Eminent domain allows the city to:

Take possession of the land against the owner's wishes, yet the owner must be compensated When the appraised value of a property is given, it is based

on:

Comparable sales On closing day who signs the deed to transfer the property from seller to buyer?the seller Seller Gary needs to net $15,000 on the sale of his home.His loan payoff is $160,000, his closing costs are $5,500 and commission is 7%. What is the lowest offer Gary can accept?

$194,086

What duty requires an agent to place the clients best interest above all others?loyalty Linda purchased a fee simple interest for the private use of a residential property for one week every single year. What did Linda purchase?resort timeshare Donnie leaves his home to his third wife Trish with the clause that after her passing the home goes to his first son Logan. What type of interest does Logan have in the property?remainder man A contract between two parties both giving a promise for a

promise is called a:

bilateral contract A fiduciary who holds or controls property for the benefit of

another is called a(n):

a trustee

What type of ownership would allow two or more owners to have various unequal percentages of ownership?Tenancy in common Davis is a subagent of listing agent Luke. Who does Davis work for?seller Part of agent Connie's listing packet includes a form for the seller to complete that covers the components of the home for sale and the seller's knowledge of the condition of such

items. This form is referred to as:

seller's disclosure How many acres are in a lot that measures 250 x 325?1.86 Sharon made an offer on her dream home and to show the seller she was a serious buyer she offered a sum of money to be held in escrow that she will forfeit if she does not fulfill her end of the deal. What is the sum of money to be held in escrow as a good faith deposit called?Earnest Money When agents get together and have a discussion on regarding setting a fixed commission rate so that they are all charging the same rate, this conversation violates what act?Sherman AntiTrust Act During the appraisal process the appraiser will NEVER

adjust the price of the:

subject property The Fair Housing Act pertains to certain groups as protected classes. Which of the following is not a protected class under Fair Housing?felons An insurance policy which combines personal liability insurance and hazard insurance coverage for a dwelling and its contents is called homeowner's insurance Kevin is leasing a storefront to open a Pizza Parlor. Any items he attaches to the property which he will use to

conduct his business would be:

trade fixtures Which of the following is NOT a requirement for a contract to be valid and enforceable?notarization A contract that does not have all the necessary elements of

a contract is:

void John signs a six-month lease on an apartment beginning January 1st and ending June 30th. His lease does not automatically renew and no notice is required on his part to vacate on the expiration date. What type of lease did John sign?Estate for years Shane is offering an open listing on his home to all local brokers. Shane has offered to pay a 3% commission to the broker that brings him a ready, willing, and able buyer.What type of contract did Shane offer?unilateral contract Liens on a title may be voluntary or involuntary. Which of the following is an example of a voluntary lien?mortgage