Texas Real Estate Missed Questions Flashcards

Texas Real Estate Missed Questions Flashcards What is an insurance endorsement?A) When a celebrity advertises support for an insurance companyB) An insurance company's indication of its support for a political candidate or legislative positionC) The signature on the back of the insurance policyD) An extension of coverage The answer is an extension of coverage. Typically an endorsement, which is added to a policy, will cover broken glass, or extraordinary amounts of jewelry or other personal possessions.Relative scarcity is what type of land characteristic?A) MetaphysicalB) EconomicC) PhysicalD) None of these EconomicRelative scarcity is an economic characteristic of land that recognizes that real estate will be more valuable in areas where land is in short supply. Improvements, permanence of investment, and area preference are also economic characteristics of land. Immobility, indestructibility, and nonhomogeneity describe physical characteristics.Unit 1.When advertising that a roof is "new," how "new" does it have to be?A) A "new" roof is one that has been put on within the last 3 years.B) There is no specific definition.C) A "new" roof is one that has been put on while the seller has lived in the home.D) A "new" roof is one that has been put on within the last 12 months.The answer is there is no specific definition. Advertised statements that a roof is "new" can be considered misleading. To avoid conflict, it would be best to state that the roof is "new" and add the year it was put on.Which covers innocent misrepresentations as well as unfulfilled promises?A) Statutory fraudB) None of theseC) Libelous fraudD) Universal fraud statutory fraud. Whereas common-law fraud is limited to intent to deceive, statutory fraud covers innocent misrepresentations, as well as unfulfilled promises. The Fraud in Real Estate and Stock Transactions statute provides for actual and punitive damages not only against the person making the misrepresentation or promise but also against any person who benefits from the transaction, has actual knowledge of the falsity, and fails to reveal it.Under the "Mrs. Murphy" exemption, how many families can live in her house?A) Herself plus one other.B) Herself plus two others.C) Herself plus four others.D) Herself plus three others.The answer is herself and three other families. She cannot, however, retain the exemption if she attempts to bar families on the basis of race nor if she uses a real estate agent to secure the renters.Texas real estate license holders may be fined and lose their license for advertising in a discriminatory way, but what about private homeowners who are for sale by owners?A) Yes, FSBO owners must comply with fair housing advertising law.B) No, FSBO owners are free to advertise however they'd like as long as their advertisements are truthful and do not subject an individual to public contempt and ridicule.C) No, FSBOs narrowly escape being included in the law because of an obscure clause in Texas property tax law.D) No, FSBOs do not come under fair housing law because they are not license

holders.The answer is yes, FSBO owners must comply with fair housing advertising law. The owner may be exempt from other portions of fair housing law by being a FSBO, but the Court's ruling in United States vs. Hunter found that FSBO owners may not advertise their intent to discriminate.Does the lack of permanence of investment have an impact on development potential for a community?A) Yes, lack of forward-looking infrastructure makes investors leery of committing to projects.B) No, as long as there are basic utilities present, development can proceed.C) No, developers do not consider infrastructure as plans to

proceed.D) No, developers simply add the cost of municipal upgrading to their overall cost.The answer is yes, lack of forward-looking infrastructure makes investors leery of committing to projects. Projects often are built with razor-thin margins and sharing the cost of infrastructure improvements can kill a deal.Is the sponsoring broker liable for the unauthorized acts of an independent contractor?A) Yes, the chain of liability

goes all the way up from the independent contractor to the broker, to the owner of the company and, where appropriate, to the franchise company.B) The sponsoring broker is never responsible for the actions of independent contractors.C) No, in most cases independent contractors are solely responsible for their unauthorized acts.D) Yes, the sponsoring broker always is liable for the actions of independent contractors.The answer is no, in most cases independent contractors are solely responsible for their unauthorized acts. The