Download Real Estate Principles 1 Practice Exam Questions and Answers and more Exams Nursing in PDF only on Docsity!
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Homestead rights don't offer protections from ..... - correct answers ✅tax liens Which of the following is NOT one of the physical characteristics of land? - correct answers ✅Density Which of these is an example of emblements? - correct answers ✅an annually cultivated crop Which of the following serves as the basis of all real estate law in the United States? - correct answers ✅US Constitution For which of following things can an agent NOT discriminate: - correct answers ✅National Origin A plat is used in which method of land description? - correct answers ✅Lot and Block
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Wesley just bought a house with a creek that flows along the south boundary. He wants to use the water to irrigate his garden. Through which set of rights is he entitled to use this water? - correct answers ✅Riparian What is the name of the law that requires a commission to examine state agencies every 12 years to see if they're still needed? - correct answers ✅Sunset Act What does the term real property NOT include? - correct answers ✅chattel Mutual assent, legally competent parties, consideration, lawful objective, and adherence to the statute of frauds are: - correct answers ✅the five components of a valid contract The National Association of Realtor's ethical guidelines are known as: - correct answers ✅First adopted in 1913, the National Association of Realtor's ethical standard is laid out in the Code of Ethics. How many TREC promulgated contract forms are there? - correct answers ✅The six TREC promulgated contract forms are: One to Four Family
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Surface, subsurface, and air rights are all parts of: - correct answers ✅land Which real estate body is made up of 9 members and which is made up of 13 members? - correct answers ✅The Texas Real Estate Commission is comprised of 9 members and the Broker Lawyer Committee is comprised of 13 members. Which of the following best describes when a broker might act as an intermediary in Texas? - correct answers ✅when both the seller and the buyer are clients of the same broker Charles is currently living in London, but is hoping to close on a property he's interested in in San Francisco. He is tied up with work, and won't be able to make it to the closing, so he asks his sales agent to sign everything for him. What type of situation is being illustrated in this scenario? - correct answers ✅Charles designated his sales agent as his Power of Attorney. According to the Canons of Professional Ethics, what must every broker do with Consumer Protection Notice TREC No. CN 1-2? - correct answers ✅display it in a readily noticeable location
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Fixity refers to the fact that: - correct answers ✅land is cannot be moved Within what larger law can you find the law governing real estate occupations known as TRELA? - correct answers ✅the Texas Occupations Code The limit on a rural homestead is currently: - correct answers ✅200 acres for families, 100 acres for individuals According to The Canons of Professional Ethics, which form must be displayed in a prominent location in each place of business the broker or inspector maintains? - correct answers ✅Consumer Protection Notice TREC No. CN 1- In general, what is the purpose of the Texas Department of Housing and Community Affairs? - correct answers ✅The Texas Department of Housing and Community Affairs exists to help protect and expand affordable housing.
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history of insurance claims on the property, what can she do? - correct answers ✅ask for a CLUE report Who holds title and manages the property in a trust? - correct answers ✅trustee If a tenant were to buy and install new cabinets for their kitchen, they would: - correct answers ✅belong to the landlord upon expiration of the lease When land is in short supply and in high demand: - correct answers ✅it will be more valuable Why can't brokers draft their own contracts for transfers of real property? - correct answers ✅it's considered an unauthorized practice of law A limited partner is usually NOT involved in: - correct answers ✅The day to day activities of the business
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Which term identifies an economic preference for a certain location? - correct answers ✅situs Which of these is an example of an agent committing fraud? - correct answers ✅an agent knew about foundation problems but did not disclose it when the buyer asked about the foundation What is a plat and who uses it most often? - correct answers ✅a surveyor establishes the plat's dimensions and a developer numbers the lots and blocks the plat is divided into Which of these four options would allow the wronged party to keep earnest money that had been put up by buyer in a breach of contract scenario? - correct answers ✅forfeit By what time must licensees notify TREC of any change in address? - correct answers ✅Within 10 days
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The difference between fraud and misrepresentation is mainly in: - correct answers ✅intent Which of these is NOT a function of a special agent? - correct answers ✅Act as attorney for the client. Under the ECOA, it is illegal for lenders to discriminate on the basis of: - correct answers ✅marital status How much capital gains tax exemption is a married couple that has lived in their home for the past three years eligible for? - correct answers ✅$500, Treating everyone fairly is a good way to: - correct answers ✅avoid housing discrimination Before a new license holder can engage in the practice of real estate, who must receive a copy of that sales agent's license? - correct answers ✅the broker that is sponsoring the sales agent
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What is a contour map used for? - correct answers ✅it shows hills, valleys, plateaus, and other patterns that may affect water drainage, runoff, or other development issues Which of the following is NOT a required disclosure that real estate license holder must provide to consumers? - correct answers ✅A drafted copy of a listing agreement Which of these requires a higher standard than ethical laws? - correct answers ✅NAR Code of Ethics Sales agents may accept commissions from: - correct answers ✅Their sponsoring broker only. There are 13 members on: - correct answers ✅the Broker-Lawyer Committee Which term refers to the fact that no two tracts of land are the same? - correct answers ✅uniqueness
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How often can homeowners take advantage of capital gains exemption under the Taxpayer Relief Act of 1997? - correct answers ✅Homeowners can take advantage of the capital gains tax exemption every two years. Individual lots combined to make a block are called: - correct answers ✅Individual lots combined to make a block are called parcels. What is the correct term or phrase for encouraging the panic selling of homes at below their market value? - correct answers ✅blockbusting A condensed history of title to a tract of land that summarizes the transfers of ownership and encumbrances is know as: - correct answers ✅an abstract of title Who determines the topics and number of hours of continuing education a licensee must take in the two years between renewal of their license? - correct answers ✅the commission
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Whereas novation involves the same parties but replacing one contract for another, assignment involves: - correct answers ✅the same contract but replacing one party for another Which of the following is NOT a category of the NAR® Code of Ethics? - correct answers ✅Duties to Lenders is not a category of the Code of Ethics. What does severance mean? - correct answers ✅Turning real property into personal property. Real property refers to: - correct answers ✅the land and improvements on it plus the set of rights associated with real estate ownership. What is The primary duties of the Broker-Lawyer Committee? - correct answers ✅to draft and revise contract forms for the approval and adoption by TREC Which of the following is an example of co-ownership? - correct answers ✅a timeshare property
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Which of the following best describes the rectangular survey system? - correct answers ✅The rectangular survey system uses a more refined version of the longitude and latitude system of mapping with a surveyed grid of meridians, baselines, townships, and ranges to describe a piece of land. Three of the conditions for compensation eligibility include: - correct answers ✅Three of the conditions for compensation eligibility include: 1. the broker must be licensed. 2. the compensation agreement between the broker and client must be in writing to be enforceable, and 3. the buyer must be advised to get title insurance. A newly installed built-in bookshelf is most likely considered a(n): - correct answers ✅fixture Which of these is a method of disclosing agency? - correct answers ✅giving a party the IABS Net listings and open listings are the same thing. - correct answers ✅FALSE - An open listing allows multiple real estate brokers (and the owners themselves) the right to sell a property. A net listing, on the other hand,
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dictates the broker's commission based on the difference between the listing price and sales price. What is required of lease contracts with a lease period of one year or more that is not required for leases of less than a year? - correct answers ✅they must be in writing Does TREC regulate new home builders? Why or why not? - correct answers ✅No, because you don't need a real estate license to build new homes. If the seller has accepted the prospective buyer's offer but has not informed the buyer of acceptance yet, can the prospective buyer still revoke their offer? - correct answers ✅Yes. A prospective buyer has the right to revoke their offer if they or their agent have not received notice - even if it has been accepted. An owner lives in a single family dwelling but only owns the building. The homeowners association owns and maintains the grounds, the pool, and the exercise room. All of the owners in the area share the common areas. What does the owner live in? - correct answers ✅The owner lives in a condominium.
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Which is not an obligation of a real estate agent as a real estate brokerage practitioner? - correct answers ✅to be informed on race and religious identities prominent in certain neighborhoods Which of these is NOT one of the things license-holders must do, according to TREC? - correct answers ✅get a client the best deal, no matter how After a lease expires in a unit where the landlord made modifications for the tenant's disability: - correct answers ✅the landlord may require tenants to return the property to its unmodified condition What are the possible consequences if a licensee attempts to lure away the already represented client of another broker in Texas? - correct answers ✅suspension and/or revocation of license According to TRELA, which of the following, when done with the expectation of valuable consideration, would NOT qualify as practicing brokerage? - correct answers ✅Advertising one's own personal residence for sale.
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According to what legal concept do contracts involving the sale or transfer of real estate need to be in writing? - correct answers ✅The statute of frauds requires that real estate contracts be in writing in order to be enforceable in court. The Information About Brokerage Services form should be presented to clients according to: - correct answers ✅The Information About Brokerage Services form should be presented to clients according to the Canons of Professional Ethics. An acre lot is how many square feet? - correct answers ✅43, What is the difference between personal property and real property? - correct answers ✅Personal property is all property that is not covered by real estate's definition. What should agents use as a basis for advising a prospect? - correct answers ✅market information
