Texas Real Estate National Exam Test Prep Multiple Choice

Texas Real Estate National Exam Test Prep Multiple Choice Flashcards When does an offer become a contract?a. when it is accepted and acceptance is communicatedb. when it is acceptedc. when it is closedd. at closing and funding A Accurate record keeping is the responsibility of all brokers.If a broker's computers are stolen, what steps could have been taken to protect records?a. Offsite or cloud storageb.data encryptionc. an alarm systemd. an armed security guard A Which covenant in a deed guarantees that the owners will not suffer or be disturbed by any claims on the property?a.the covenant of seizenb. the covenant against encumbrancesc. the covenant of quiet enjoymentd. the covenant of warranty forever C Which of the following used in 1978 is both extremely hazardous and friable?a. leadb. asbestosc. radond. EMFs B A broker is running short of funds to meet this month's operating expenses. He places a client's earnest money deposit in his business account and uses it to pay his rent.After his next closing, he replaces the client's deposit in his

trust account. The broker:a. is guilty of conversionb. is

guilty of comminglingc. is not guilty of any crime because he replaced the fundsbefore they were neededd. is guilty of fraud and embezzlement A DWhat is the purpose of a property management trust account?a. to hold collected rentsb. to hold reserve funds for maintenance and repairsc. to hold tenant security depositsd. to hold funds escrowed for taxes and insurance A landlord leased space in his new retail property to an inexperienced business person. Based on location and the type of business, the landlord believes it will be a great success. What type of lease can he enter into with the tenant that will allow the landlord to benefit from the tenant's success?a. a percentage leaseb. a net leasec. a gross leased. a sale and leaseback A A, B and C are joint tenants. C dies. B sells his share to D.What type of ownership do A and D have?a. joint tenantsb.tenants by the entiretyc. tenants in commond. tenants in severalty C Your clients will be able to qualify for financing for a property they wish to purchase in about six months, after

they have had an opportunity to reduce their consumer debt. They have found a property that they would like to purchase now. What type of agreement can they enter intowith a seller that will allow them to occupy the property now and purchase it within the six months?a. sale and leasebackb. right of first refusalc. lease with an option to buyd. graduated lease C

A licensee is representing a seller in a commercial transaction. The property is under contract and all contingencies have been met. The listing agent learns the State Department of Transportation has authorized the construction of an exit ramp to the interstate right behind the commercial property. The exit ramp will greatly increase the value of the seller's property. What should the agent do?a. tell the seller and help the seller to void the contract withthe buyer.b. tell the seller and encourage the seller to complete thenegotiated salec. keep the information to himselfd. tell the seller and convince the seller to speak with anattorney about voiding the contract B A listing agent went to inspect a seller's property hoping to list it for sale. The seller told the listing agent that his neighbor's satellite dish trespasses on his property. This is

an example of:a. annexationb. encroachmentc.

appurtenanced. license B A zoning ordinance would affect which of the following?a. a buffer zoneb. traffic at certain hours of the dayc. the concentration of housing in a residential aread. the style and appearance of construction C Which of the following is personal property?a. a leaseb. a fixturec. an easementd. a freehold A A licensed broker is advertising that he will perform a free appraisal if you contact him for a listing appointment. He is

not in violation of the law:a. if he is a licensed appraiserb.

since he is not charging anything for the appraisalc. as long as the seller doesn't intend to use the appraisal tosecure financingd. as long as the property is used for residential purposesonly A Your client is an investor who would like to have the right to purchase a commercial tract for $5 million for the next six months. What type of contract should he enter into with the seller?a. an earnest money contractb. an option contractc.a bilateral contractd. a right of first refusal B Which of the following is NOT an example of due diligence in a sales contract?a. the seller orders the deed to be prepared and agrees topay for the buyer's title policyb. a broker completes a CMA for a buyer client prior to thebuyer making an offerc. a buyer obtains a survey because he suspects anencroachmentd. a buyer has property inspected to be sure all features arefunctioning properly A sales agent just obtained a listing. The seller has told the agent that she needs to sell the property because she is going through a divorce. What must the salesperson do?a.suggest marketing the property at a below market valueprice to sell it more quicklyb. obtain the signatures of all owners on the listingagreementc. recommend an appraisal to determine the best list priced. tell the seller to list the property for sale as is - caveatemptor Ownership of the common areas of condominiums is most

likely to be:a. joint tenancyb. tenancy by the entiretyc.

tenancy in commond. sole ownership C