Texas Real Estate Sales Exam 1 Flashcards

Texas Real Estate Sales Exam 1 Flashcards A contract that was signed by a minor is Voidable by the minor, but not by the other party.Upon obtaining the sellers signature on the listing agreement, the broker or salesperson is obligated to Provide the seller with a copy of the agreement For a document to be eligible for recording at the county courthouse, the document must be In English and acknowledged in the presence of a public official.In an independent contractor agreement, the broker must make clear to the agent the agent's responsibility for paying his own income taxes.If there is some question about an item being real property, the best determination is the agreement of the parties Which of the following statements concerning an easement is true?An easement appurtenant runs with the land.Which of the following terminates an agency relationship?Death of the client Which of the following is NOT an example of a public land use control?percentage of brick veneer on home exterior Which phrase in a lender advertisement to secure borrowers would be in violation of the Equal Credit Opportunity Act Must be under 60 years of age for a 30 year term (can't age discriminate) What is 75% of $250,000$187,500 Commercial banks prefer to make short-term loans, like construction loans and 90-day business loans. The reason for their preference is The source of their funds is primarily from CHECKING

ACCOUNTS.

A seller is not in possession of an inspection report from a buyer who recently terminated the option to purchase.However, the seller is aware that the report noted a faulty heating system in need of repair. The seller is Obligated to disclose this information as a material fact.Under which federal law is "blockbusting" illegal?Fair Housing Act For there to be a valid right to purchase or terminate, an option contract must contain Dollar Consideration Broker A represents a seller. Broker B shows this same seller's home to an unrepresented buyer. What kind of agency exists in this scenario?Subagency Which of the following deeds provides the purchaser with the least protection in regards to covenants and/or warranties given by the seller?Quitclaim (used to transfer interest in real property) Under Eminent domain, if the parties cannot agree to property value, which type of lawsuit will be filed by a city to take the property for public use?Condemnation If a salesperson dies, his listingremains intack with the broker A borrower can expect to pay a mortgage insurance premium (MIP) for an FHA 203 (b) loan (not VA, Graduated Payment or LTV loans)

Ad Valorem real estate taxis which type of lien? Specific Involuntary Which of the following phrases is NOT discriminatory in an advertisement to lease a non-exempt one hundred unit apartment complex?No Smoking on Premises If Bob and Sally own a property together and the deed to the property give no indications as to what tenancy exists, they should own the property as Tenants in Common Abby is purchasing a home with a mortgage loan and is paying for an appraisal of the property. The appraisal is made to determine If the value of the collateral satisfies the lender's underwriting guidelines for the loan.The most accurate way to uniquely locate and bound a parcel of real property is to use a metes and bounds survey A competitive market analysis usually contains all of the following EXCEPT Contract Sales Price, pending sales in market area.Which is true of owner's title insurance? It will reimburse for title losses up to the face amount of the policy When an agent uses the word WE when talking to a buyer, the buyer might believe that the agent represents him/her.Unauthorized disturbance of established wetlands may result in Federal Felony Charges The closed sales price of an income property divided by its gross monthly rent equals teh Gross Rent Multiplier Which of the following commission schedules are illegal?none of the above (fee for service; hourly rate; % of sales price) Which of the following is a government right in land?Eminent domain by a public utility company Regarding the landlord's duties under a residential lease agreement, current legal thinking holds that the owner is obligated to repair only those items required by law.What is the difference between a competitive market analysis and a comparative market analysis?properties currently for sale in the same market area The form of ownership that would give an investor the greatest flexibility when selling his interest would be Ownership in Severalty Personal property may become real property by Attachment If a seller receives multiple offers,he may accept any one of them regardless of when it was received "in time" The term that describes the percentage of the appraised value of a property that a lender will finance is called Loan-to-Value Ratio The rules of Texas Real Estate Commission prohibit a licensee from creating language and entering it in contract forms that define the legal rights and remedies of the parties. Which of the following would e acceptable language to enter in the "special provisions" paragraph of the contract?Buyer will do a walk through 4 hours prior to closing When a broker represents a buyer, this means that the sponsored salesperson represents the buyer

What is the purpose of the Truth-In-Lending Act (TILA)?The TILA ensures disclosure of clear and full information regarding the true cost of credit.What state agency is responsible for licensing and regulating professional real estate inspectors and their apprentice inspectors?Texas Real Estate Commission A hairdresser told a broker about a client who was looking for a new house. The broker contacted the client and sold him a home. May the broker pay the hairdresser for the lead?a gift with a value of not more than $50 may be given.If a property generates a negative cash flow, in order to be an attractive investment to a purchaser there must be a substantial increase in property value If a material fact concerning the condition of a residential property is know by the listing broker, but intentionally not disclosed to the buyer, the broker may be (all of the above) guilty of fraud; subject to litigation; subject to license revocation.A signed sales contract generally can be cancelled between the parties if Fraud can be proved.According to the provisions of the Texas Real Estate License ACt, which of the following must be included in every listing agreement or buyer representation agreement?A termination date that is not subject to prior notice Accretions or soil deposits added to property adjoining a river may also be referred to as Alluvion (a-lew-vee-on) Property taxes are assessed annually at $4.05/100 value. If the assessed value of a property is $100,000, how much are the yearly taxes?$4050 How may express agency be created?By specific written or verbal agreements Which of the following instruments is used to transfer real property ownership?Deed What state law requires leases for more than one year to be reduced to writing and to include a legal description of the property to be occupied by the tenant?Statute of Frauds Under the Truth-In-Lending Act, the cost of credit extended must be expressed as The annual percentage rate.Which of the following actions by a landlord is NOT discriminatory under the Federal Fair Housing Act?Refusing to lease based on the fact the tenant has a pet A lender is providing 90% of the financing for a new house.If the house appraises for $75,000, what is the buyers down payment?

$7500 (10%)

A comprehensive buyer representation agreement would address the duties of the agent, termination date, and compensation agreement.Under the federal tax code, a broker/salesperson agreement must contain all the following, EXCEPT the commission arrangements between the broker and salesperson.A salesperson receives an offer on his listing from a salesperson with another broker representing a buyer who is a previous client of the listing salesperson. Which, if any,

of the fiduciary duties does the salesperson owe the previous client?The salesperson owes the duty of confidentiality to the previous client.