Texas Real Estate Exam Flashcards

Texas Real Estate Exam Flashcards The price for which a property will sell if offered openly

under normal conditions is known as:

market value Under an exclusive right-to-sell listing, a broker has the authority to take which of the following actions on behalf of a seller?Advertise the property for sale.In order for a tenant to claim relief for constructive eviction:the landlord must have intentionally withheld required repairs or maintenance To be eligible for a real estate license, an individual MUST:satisfy the Commission as to the individual's integrity A standard contract form has been developed for: sale of single-family residences What information is in the written statutory statement that a licensee MUST provide for a consumer at their first face-to-face meeting?Duties of the broker representing one of the parties or acting as an intermediary.As a marketing promotion, a real estate salesperson offers

property for sale by lottery. This practice is:

grounds for suspension or revocation of license In the absence of a formal appraisal report, which of the following choices is the MOST appropriate for setting a listing price in a new, rapidly selling neighborhood?The price that willing buyers have recently paid for similar structures A single woman dies intestate. In regards to her surviving

heirs, her property will:

be distributed according to the law of descent and distribution A loan that provides for increases and decreases in the

interest rate during its term is known as a(n):

adjustable-rate mortgage Which of the following types of developments allows fee ownership of individual units with joint ownership of common areas?Condominiums Who is responsible to the Texas Real Estate Commission, the public, and the clients for the acts of a salesperson?Salesperson's sponsoring broker A lot was purchased as an investment for $10,500 and sold a year later at a loss of 20%. If the owner paid a 10% commission, what was the owner's net loss on the sale?

$2,940

Which of the following statements about the law of agency is CORRECT?

• It refers specifically to insurance.B. It establishes a

fiduciary relationship.c. It does not require a high degree of loyalty and fidelity from an agent.d. There is no employment relationship.The provision in a mortgage or deed of trust that gives the lender the rights to call the entire balance due upon a

default in any payment is called a(n):

acceleration clause Absent an agreement, spouse's rental income from

separate property is:

community property A broker who enters into a property management contract

is considered a:

fiduciary

The right of local government officials to acquire title to real estate for public purposes by condemnation is based on

the power of:

eminent domain The value placed on land and buildings by a governmental

unit for use in levying annual real estate taxes is called the:

assessed value The acquisition of another's title to real property by means

of open, notorious, and continuous use is known as an:

adverse possession A geographic region in which similar properties compete

with the subject property for potential buyers is called a:

market area A license holder is showing a home built in 1972 to buyers who notice paint flaking on the woodwork. How should the license holder proceed?Advise the prospective buyers to get a lead-based paint inspection.A percentage lease would MOST often be used for tenants

in:

a shopping center The condition which allows a property owner to convey a

right to another party while retaining full legal title is a(n):

easement Ifafree-standingapplianceissoldseparatelyfromareal estate

transaction, the seller should furnish the buyer with a:

bill of sale The appropriate time for a selling broker to explain the

agency relationship to a prospective buyer is:

at their initial meeting When negotiating contracts binding the sale or lease of property, a real estate licensee MUST use an appropriate Texas Real Estate Commission-promulgated formunless another contract form has been prepared and is

REQUIRED by the:

owner of the property When MUST an existing agency relationship be disclosed to another party to a proposed transaction?At the time of licensee's first contact.When the association of a salesperson with the sponsoring

broker is terminated, the broker MUST:

immediately return the salesperson's license to the Commission The agency that is charged with enforcing the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) in the case of an owner who

allows the dumping of wastes on a property is the:

Environmental Protection Agency According to The Real Estate License Act of Texas, which one of the following actions is a fair and impartial act for an intermediary?Appointing associated licensees to work with the parties.A buyer contracts to purchase a previously occupied single-family residence. The buyer did NOT receive a copy of the Seller's Disclosure Notice before signing the contract. According to the Texas Property Code, the buyer

has the right to:

terminate the contract within 7 days after receiving notice A special warranty deed provides:protection against defects that occurred while the grantor held title In order for a property manager to determine net operating income on a property, which of the following fees is

subtracted from the effective gross income?Operating expenses

Combining a principal's funds with the licensee's personal

funds is:

considered to be commingling Who can pay money to a licensed salesperson to perform sales activities for a house a broker has listed for sale?The salesperson's sponsoring broker and no one else.G borrowed $15,000 to buy a business. The interestrate was 11%. If G paid all the interest and the amount borrowed with a single payment at the end of 16 months, what is the amount of this payment?

$17,200

An unimproved lot is located in the service area of a water supply corporation. The seller is subject to the notice requirements relating to a service provider. What is the buyer's statutory remedy if the seller fails to give the written notice REQUIRED by law?Terminate the purchase contract with the seller.A lender's title policy will protect the: lender against existing, undiscovered title defects If a buyer makes a 20% down payment and obtains a $75,000 mortgage, what is the sales price of the property?

$93,750

A broker lists a property. A potential buyer tells the broker that he has heard that the crime rate in the neighborhood is increasing. Which of the following is the broker's BEST response to the buyer?Check with local law enforcement authorities about the crime rate.A buyer's interest in real property, acquired at the moment the seller and the buyer enter into a sales contract, is

known as:

equitable interest Which of the following acts is illegal under Federal Fair Housing law?Advertising property for sale only to members of a specific national origin A buyer purchases a furnished condominium apartment as an investment. The document that evidences the buyer's

ownership of the furniture is a:

bill of sale A broker is asked to lease 1,200 square feet of warehouse space at $6 per square foot per year. If the broker's commission will be 8 percent of the first year's rental

income, the MAXIMUM amount payable is:

$576 Under a lease for a commercial property, a tenant agrees to pay $4,000 per month plus 3% of the gross monthly

sales. This type of lease is called a:

percentage The commission earned by a listing broker on a sale of

property is established by:

Agreement between the seller and the broker In order for a brokerage to be able to represent both the buyer and seller in a real estate transaction, the brokerage

needs to have the permission of:

both parties An individual is exempt from real estate licensure in Texas when performing which one of the following activities?Offering an employer's property for rent.Which of the following factors would be included in the description of replacement cost?Similar utility and current material